Dairy farm project 50 cows

cow dairy farm

Dairy Farm project report for 50 cows

India is the world’s major producer of milk, contributing about 19% of the world’s aggregate milk production. India’s milk output surpasses that of all the European Union countries combined. In the year 2017-18, there was 6.6% growth in milk production. India produced 176.35 million tones during the year 2017-18. Several government schemes are available which provides assistance to dairy farming. Consumption of milk and milk product is rapidly increasing In India due to an increase in per capita income of people. Dairy farming is a lucrative business, The increased price of animal feed can be reduced by undertaking fodder cultivation.This dairy project 50 cows is a model project report.

This Dairy project 50 cows  is based on the following assumptions:

1. Freshly calved  crossbred  Jersey/HF   cows in 1st or 2nd lactation will be purchased in two batches of two animals each at an interval of 5 to 6 months with minimum average 15-liter milk yield per day will be purchased for dairy project 50 cows

2. Availability of  10 acres of  land is prerequisite for the project

4.Fodder cultivation considered in 10-acres land, Two crops considered per year.

5 .Cow dung produced will be utilized as Manure for fodder cultivation.

6. Cost of rearing calves is not considered as it will be nullified by their sale value

7. In case of death cow, the new cow will be purchased from insurance claim money

8. The scheme is workable on the above guidelines if run by the dairy farmer on scientific lines.

SUBSIDY AVAILABLE FOR THIS TYPE PROJECT: -Odisha farmer can avail subsidy for this type project under Mukhya Mantri Krushi Udyoga Yojana (MKUY) (APICOL). 50%  subsidy of capital expenditure with the limit of Rs fifteen lakhs is available for 50 animal dairy farm for ST/SC and general women. 40% subsidy with limit of twelve lakhs is available for the male of general category for dairy farm with 50 cows.

Housing for cows

Floor –Pucca, strong concrete cemented, impervious to moisture, and have slope 1 in 60 towards the gutter. Plinth should be 2ft. higher than ground.

 Walls-3ft. high lengthwise brick wall on sides, End wall should be solid made of bricks.

Roof– 14-16ft. high at the center and 8ft. high on the side wall .there should be hangover 3ft  beyond the wall to prevent rainwater from entering cow shade. The roof should be of asbestos, cement asbestos, or tile. a thatched  roof can replace asbestos in low-cost housing

housing for cow



 Techno-economic parameters (dairy project 50 cows) is given in link (Parameters for 50 cow project)

Links to daily feeding chart /lactation/dry chart for 50 cows dairy farm

Economics of dairy farming with 50 HF/CB JERSEY   (Dairy project 50 cows)

Project cost and bank loanCost. In Rs.
1.Capital cost
2.Cow shed for 50 cows 60sq.ft/cow @300/sqft900000
3.Calf pen for 50 calves 20 sq.ft./calf @300/sq.ft.300000
4.One room 10” x 12” for keeping implements. And feed @500/sq.ft60000
5.Office room of 10” x 10”@ 500/sqft50000
6.Room for buck cooling unit 10” x 10”@ 500/sqft50000
7.Electric connection  and electrical installation to the farm60000
8.Borewell with a pump set 3 HP100000
9.Cost of 1 Fodder Chaff Cutter with Motor

Cutting Capacity: 600-800 Kg/hr

10.Cost of milking machine with four  can cluster150000
11.Mist Cooling System35000
12.Milk Cans 40 Liter 25 Nos50000
13.Bulk milk cooler  500 liter capacity150000
14.Cost of one refrigerator for storage of medicines vaccines with voltage stabilizer20000
15.Cost of generator 7.5 KVA100000
16.Cost of 50 hf cows with minimum  average 15 liter milk yield /day including transportation and insurance  @ 55000/cow2750000
The recurring cost to be capitalized
       I.Cost of feed for the first batch of 25 cows for one month as per feed chart131250
    II.Cost of insurance  with  cover for the first batch Included with the animal cost68750
 III.Cost of fodder cultivation in 10 acres of land for one season60000
IV.Salary of four  labourer  for one month28000
   V.Cost of medicine vaccine, electricity for the first month  for the first batch of  25 cows & Misc expenditure for one month  and contingency32000
Total recurring expenditure320000
Margin Money  @25% of the project cost1287500
Bank loan @ 75% of project cost3862500
ParticularsProject period
Feeding during lactation period vide yearly lactation days and feed cost as per chart199062524937502515625251562524937502406250
Feeding during dry period vide dry days and feed cost as per feed chart enclosed135000240000232500232500240000270000
Medicine vaccine veterinary aid500005000050000500005000050000
Cost of electricity and miscellaneous expenditure750007500075000750007500075000
Insurance @5% of animal cost /year137500137500137500137500137500137500
Cost of fodder cultivation for two session120000120000120000120000120000120000
Salary of  four labours284000284000284000284000284000284000
Salary of manager144000144000144000144000144000144000
Sale  of milk @Rs.32/liter during lactation days with average milk  15 liter yield /cow  day546000068400006900000690000068400006600000
Manure will be utilized in own farm0
Value of closing stock of  50cows with average cost of


Value of building(Depreciation on building@10%/year)544000
Value of equipments(Depreciation on equipments @15%/year)49000
Total income546000068400006900000690000068400008193000
Gross profit293612535442503558625355862535442503486750

Calculation of BCR & IRR

Capital Costs4830000
Recurring Cost293612535442503558625355862535442503486750
Total Costs776612535442503558625355862535442503486750
Net Benefit-230612532957503341375334137532957504706250
Sl noFinancial indicatorsEstimated valuePreferred value
1Net Present Worth (NPW) @ 15% DF8267396.68Should be +ve
2Benefit Cost Ratio(BCR)1.48:1>1
3Internal Rate of return (IRR)27.57>15%
4Debt Service Coverage Ratio



Repayment of loan:- Repayment of loan will start after grace period of six months. Total loan repayment period is 6-7 years. Details of  monthly installment, interest payment, principal payment and balance  is given in repayment schedule for  50 cows

 DISCLAIMER-The views expressed in this model project are advisory in nature. This website assumes no financial liability for anyone using this project report for any purpose