dairy farm project report ten cows, dairy farm business plan 2022

Dairy farming is an important source of income generation to small/marginal farmers and agricultural labourers. Since agriculture is mostly seasonal, there is a possibility of finding employment throughout the year for many persons through dairy farming. Landless labourers. The white revolution of 70 s had made spectacular landmarks in the Indian milk production scenario. India is the largest milk producer of the world The increasing cost of feed ingredients and its seasonal variability can be reduced by undertaking fodder cultivation. This project report is based on the following assumption:-

The entrepreneur must check the following points before starting a dairy farm.

Availability of good quality dairy breed cows in the nearby livestock market
Nearness of the Farm to Veterinary Hospital, Artificial Insemination Center/livestock Aid Centers, MPCS
Marketing facility of milk and milk product in the locality4.Availability of concentrates, fodder & medicine in that locality.

Before starting a dairy farm the entrepreneurs/ farmers are advised to undergo training on dairy farming. They can contact Local Animal Husbandry Department staffs/Veterinary College/agriculture University etc. for the purpose.

Subsidy-Under MKUY subsidy limit is 40% of the fixed capital (excluding the cost of the land) subject to a limit of 50.00 lakh for general male category. Subsidy is 50% of the fixed capital limited to one crore for SC/ST/Women/Graduates of Agriculture and Allied Disciplines for this type project. Farmer/entrepreneur can apply through GO Sugam Portal. Net annual profit from project should be more than 2 Lakh for individual & more than one lakh for SHG groups. Techno economic parameters and assumptions for the project is given in assumptions in 10 cows dairy farm

Housing for cows-Floor –Pucca, strong concrete cemented, impervious to moisture ,and have slope 1 in 60 towards 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 hang over 3ft beyond the wall to prevent rain water from entering cow shade. Roof should be of asbestos, cement asbestos, or tile. the thatched roof can replace asbestos in low cost housing

Sr.No	Particulars			Years
		I	II	III	IV	V	Vi
i)	Lactation Days
a)	First batch	1500	1500	1500	1500	1500	1500
b)	Second batch	900	1500	1500	1500	1500	1500
	Total	2400	3000	3000	3000	3000	3000
ii)	Dry Days
a)	First batch	325	325	325	325	325	325
b)	Second batch	–	325	325	325	325	325
	Total	2725	650	650	650	650	650

Item	FEEDING STUFF	COST/KG Rs.	During lactation period			During dry period
			Quantity (kg)		Cost (Rs.)	Quantity (kg)	Cost (Rs.)
i	Concentrate feed	25	5		125	1.5	37.5
ii	Green fodder	–	20		Home grown	15	Home grown
iii	Dry fodder	5	5		25	5	25
	Total		28.5		150	21.5	62.5
. Techno economic parameter
Type of Animal				Indigenous Milch breed/crossbred/ CB Jersey Cow
No. of Animals				10
Cost of Animal (Rs./animal) including transportation & insurance				80000/cow
Milk Yield (litre/day)				10-12
Floor space (sqft) per adult animal				60
Floor space (sqft) per calf				20
Cost of construction per sqft (Rs.)				400
Cost of equipment per animal (Rs.)				2000
Cost of fodder cultivation (Rs./acre/season)				12000
Insurance premium (% per annum)				5
Veterinary aid/animal/ year (Rs.)				2000
Cost of concentrate feed (Rs./kg)				25
Labour				12000 per month
Cost of dry fodder (Rs./kg)				5
Sale price of milk				40
Rate of interest (%)				11
Repayment period (years)				5
Sale price of gunny bags (Rs. per bag)				20
Lactation days				300
Dry days				65

Economics of dairy farming with ten Indigenous Milch Breed Cows/cross-bred cows

ECONOMICS OF DAIRY FARMING WITH 8 INDIGENOUS DAIRY BREED COWS
Project cost	Cost. In Rs.
Capital cost
Cow shed for 10 cows 60sq.ft/cow @400/sqft	240000
Calf pen for 10 calves 20 sq.ft./calf @400/sq.ft.	64000
Cost of construction store cum marketing room 150 sqft @600	90000
Cost of 10 CB cows with minimum average 10 liter milk yield /day @80000/- including insurance & transportation	800000
Cost of one chaff cutter electric	10000
Cost of electrification	10000
Cost of single bucket milking machine	20000
Cost of dairy appliances @ 2000/cow	16000
Cost of bore well pump set and over head tank	120000
Total Capital expenditure	1370000
Recurring cost to be capitalized
Cost of feed for first batch of five cows for one month as per feed chart	22500
Cost of fodder cultivation in 2 acres of land for first session	24000
Cost of medicine vaccine, for the first four cows	8000
contingency	15500
Total recurring expenditure	70000
TOTAL PROJECT COST	1440000
Margin money 20% of project cost	288000
Bank loan 80% of project cost	1152000

Particulars			Project period
CASH FLOW ANALYSIS.			1	2		3		4		5		6
Feeding during lactation period vide yearly lactation days and feed cost as per chart			288000	360000		360000		360000		360000		360000
Feeding during dry period vide dry days and feed cost as per feed chart enclosed			16510	33020		33020		33020		33020		33020
Medicine vaccine veterinary aid			16000	16000		16000		16000		16000		16000
Insurance @5% of animal cost /year			Included in purchase cost	32000		32000		32000		32000		32000
Cost of fodder cultivation			48000	48000		48000		48000		48000		48000
Cost of labour Part time			60000	60000		60000		60000		60000		60000
Total			428510	549020		549020		549020		549020		549020
INCOME
Sale of milk @Rs.40/liter during lactation days with average milk yield /cow liter/day			768000	960000		960000		960000		960000		960000
Sale of gunny bags			1680	1840		1800		1680		1680		1760
Manure will be utilized in own farm
Value of closing stock of 8 cows (Depreciation on animal cost @10%/year)												256000
Value of building (Depreciation on building@10%/year)												102400
Value of equipments(Depreciation on equipments @20%/year)												0
Total income			769680	961840		961800		961680		961680		1320160
Gross profit			341170	412820		412780		412660		412660		771140
Calculation of BCR & IRR
	1	2			3		4		5		6
Capital Costs	1072000
Recurring Cost	326320	375760			369040		360080		360080		369040
Total Costs	1500510	549020			549020		549020		549020		549020
Benefit	769680	961840			961800		961680		961680		1320160
Net Benefit	-730830	412820			412780		412660		412660		771140

Sl no	Financial indicators	Estimated value	Preferred value
1	Net Present Worth (NPW	722743.51	Should be +ve
2	Benefit Cost Ratio(BCR)	1.248:1	>1
3	Internal Rate of return (IRR)	29.625	>15%

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,

Bank loan =1152000+ 63360 (interest for 6 month) =1215360 grace period 6 month Repayment period 6 years

S.No	Monthly Installment	Interest	Principal	Balance
0				1215360
1	23133	11141	11992	1203368
2	23133	11031	12102	1191265
3	23133	10920	12213	1179052
4	23133	10808	12325	1166727
5	23133	10695	12438	1154288
6	23133	10581	12552	1141736
7	23133	10466	12667	1129069
8	23133	10350	12783	1116285
9	23133	10233	12901	1103385
10	23133	10114	13019	1090366
11	23133	9995	13138	1077227
12	23133	9875	13259	1063969
13	23133	9753	13380	1050589
14	23133	9630	13503	1037086
15	23133	9507	13627	1023459
16	23133	9382	13752	1009707
17	23133	9256	13878	995830
18	23133	9128	14005	981825
19	23133	9000	14133	967692
20	23133	8871	14263	953429
21	23133	8740	14393	939036
22	23133	8608	14525	924510
23	23133	8475	14659	909852
24	23133	8340	14793	895059
25	23133	8205	14929	880130
26	23133	8068	15065	865065
27	23133	7930	15203	849861
28	23133	7790	15343	834518
29	23133	7650	15484	819035
30	23133	7508	15625	803409
31	23133	7365	15769	787641
32	23133	7220	15913	771727
33	23133	7074	16059	755668
34	23133	6927	16206	739462
35	23133	6778	16355	723107
36	23133	6628	16505	706602
37	23133	6477	16656	689946
38	23133	6325	16809	673138
39	23133	6170	16963	656175
40	23133	6015	17118	639056
41	23133	5858	17275	621781
42	23133	5700	17434	604348
43	23133	5540	17593	586754
44	23133	5379	17755	569000
45	23133	5216	17917	551082
46	23133	5052	18082	533000
47	23133	4886	18247	514753
48	23133	4719	18415	496338
49	23133	4550	18583	477755
50	23133	4379	18754	459001
51	23133	4208	18926	440075
52	23133	4034	19099	420976
53	23133	3859	19274	401702
54	23133	3682	19451	382251
55	23133	3504	19629	362621
56	23133	3324	19809	342812
57	23133	3142	19991	322821
58	23133	2959	20174	302647
59	23133	2774	20359	282288
60	23133	2588	20546	261743
61	23133	2399	20734	241009
62	23133	2209	20924	220085
63	23133	2017	21116	198969
64	23133	1824	21309	177660
65	23133	1629	21505	156155
66	23133	1431	21702	134453
67	23133	1232	21901	112552
68	23133	1032	22102	90451
69	23133	829	22304	68147
70	23133	625	22509	45638
71	23133	418	22715	22923
72	23133	210	22923	0

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