Project report for dairy farm ten cows
Indigenous dairy breed/ cross-bred cow dairy farm
Dairy farming provides an excellent opportunity for self employment of unemployed youth. It is also 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 land marks in 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 following assumption:-
Entrepreneur must check the following points before starting a dairy farm.
- Availability of good quality dairy breed cows in 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.
Government subsidy available for these types of project– Back ended capital subsidy 25% for general category (33.33% for SC/ST beneficiaries) is available under government of India scheme Dairy Entrepreneurship Development Scheme (DEDS.). Subsidy ceiling is Rs150000/ for general category & Rs200000 for ST/SC category for dairy farm with ten animals.Farmer from Odisha can avail back ended capital subsidy 25% for general category (33.33% for SC/ST beneficiaries) under government of Odisha scheme Promotion Of Dairy Entrepreneurship (PDE).Subsidy ceiling is Rs150,000/ for general category & Rs166665/ for ST/SC category for dairy farm with 10 animals for PDE scheme.Odisha farmer can avail subsidy either under scheme PDE or DEDS.
Avail Bank loan and subsidy– In order to avail bank loan & subsidy under DEDS/PDE the entrepreneur/farmers are advised to contact local animal husbandry/veterinary officers. Animal resources development department is the facilitator deportment for above schemes.
This project report is based on following assumption:
1.Freshly calved indigenous dairy breed/ crossbred cows like RedSindhi/ Sahiwal/ Gir/ Rathi/ Crossbred cows in 1st or 2nd lactation will be purchased in two batches of two animals each at an interval of 5 to 6 months.
2.Availability of 2 acre of irrigated land is prerequisite for the project
3.Cost of labour has not been taken into consideration since full time labour is not required for the small unit. Family labour will be utilized for maintance of the dairy farm.
4.Fodder cultivation considered in 2 acre 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 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.
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 wall to prevent rain water from entering cow shade. Roof should be of asbestos, cement asbestos, or tile. thatched roof can replace asbestos in low cost housing
TAIL TO TAIL SYSTEM OF HOUSING
|ITEMS||LENGTH IN METER|
|FEEDING PASSAGE||1.2M ON BOTH SIDE|
|. Techno economic parameters|
|Type of Animal||indigenous Milch breed /CB|
|No. of Animals||10|
|Cost of Animal (Rs./animal)||30000/cow|
|Average Milk Yield (litre/day)||10|
|Floor space (sqft) per adult animal||40|
|Floor space (sqft) per calf||20|
|Cost of construction per sqft (Rs.)||250|
|Cost of equipment per animal (Rs.)||1000|
|Cost of fodder cultivation (Rs./acre/season)||5000|
|Insurance premium (% per annum)||5|
|Veterinary aid/animal/ year (Rs.)||1000|
|Cost of concentrate feed (Rs./kg)||12|
|Cost of dry fodder (Rs./kg)||2|
|Rate of interest (%)||12|
|Repayment period (years)||6|
|Selling price of milk/litre (Rs./kg)||27|
|Sale price of gunny bags (Rs. per bag)||10|
|DAILY FEEDING AND COST CHART FOR DAIRY COWS|
|During lactation period||During dry period|
|Quantity (kg)||Cost (Rs.)||Quantity (kg)||Cost (Rs.)|
|Green fodder||1||20||Home grown||15||Home grown|
|Lactation chart/Dry chart|
ECONOMICS OF DAIRY FARMING WITH 10 INDIGENOUS DAIRY BREED COWS
|Project cost and bank loan||Cost. In Rs.|
|Cow shed for 10cows 40sq.ft/cow @250/sqft||100000|
|Calf pen for 10 calves 20 sq.ft./calf @250/sq.ft.||50000|
|Cost of 10CB cows with minimum average 10 liter milk yield /day @30000||300000|
|Cost of transportation @Rs1000/ cow||10000|
|Cost of one chaff cutter with 2 HP motor||25000|
|Cost of dairy appliances @ 1000/cow||10000|
|Cost of electrification with five ceiling fans||23000|
|Cost of one single bucket milking machine||27000|
|Recurring cost to be capitalized|
|Cost of feed for first batch of one cows for one month as per feed chart||12450|
|Cost of insurance 10 animals @5% of animal cost||13500|
|Cost of fodder cultivation in 2.5 acres of land||25000|
|Cost of medicine vaccine, electricity for the first month for first cow||4000|
|Total recurring expenditure||54950|
|TOTAL PROJECT COST||599950 SAY 600000|
|Margin money 25% of project cost||150000|
|Bank loan 75% of project cost||450000|
|CASH FLOW ANALYSIS.||1||2||3||4||5||6|
|Feeding during lactation period vide yearly lactation days and feed cost as per chart||178450||203350||190900||174300||174300||190900|
|Feeding during dry period vide dry days and feed cost as per feed chart enclosed||18700||39100||44200||51000||51000||44200|
|Medicine vaccine veterinary aid||10000||10000||10000||10000||10000||10000|
|Insurance @5% of animal cost /year||15000||15000||15000||15000||15000||15000|
|Cost of fodder cultivation||50000||50000||50000||50000||50000||50000|
|Cost of labour||60000||60000||60000||60000||60000||60000|
|other miscellaneous expenditure||10000||10000||10000||10000||10000||10000|
|Sale of milk @Rs.27/liter during lactation days with average milk yield /cow liter/day||580500||661500||621000||567000||567000||621000|
|Sale of gunny bags||2100||2300||2250||2100||2100||2200|
|Manure will be utilized in own farm|
|Value of closing stock of 10 cows|
(Depreciation on animal cost @10%/year)
|Value of building|
(Depreciation on building@10%/year)
|Value of equipments(Depreciation on equipments @15%/year)||8500|
|Sl no||Financial indicators||Estimated value||Preferred value|
|1||Net Present Worth (NPW||503105.16||Should be +ve|
|2||Benefit Cost Ratio(BCR)||1.268:1||>1|
|3||Internal Rate of return (IRR)||35.33||>15%|
|4||Debt Service Coverage Ratio||2.366||>1.5|
Bank loan =450000grace period 6 months Loan amount at the end of grace period =450000+27000=477000
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