Dairy farm project report 10 cows

cow dairy farm

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.

  1. Availability of good quality dairy breed cows in the nearby livestock market
  2. Nearness of the Farm to Veterinary Hospital, Artificial Insemination Center/livestock Aid Centers, MPCS
  3. 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

housing for cow



Feed chart and  lactation chart  for this 10 cows dairy farm is given in Feed and lactation chart  link

Economics of dairy farming with 10 indigenous dairy breed/ crossbred cows
Project cost Cost. In Rs.
Capital cost
Cow shed for 10 cows 40sq.ft/cow @300/sqft 120000
Calf pen for 10 calves 20 sq.ft./calf @300/sq.ft. 60000
Cost of 10 CB cows with minimum average 10 liter milk yield /day @35000/cow ( @ 3500/ liter of milk yield/cow) 350000
Cost of transportation @1000/cow 10000
Cost of one chaff cutter electric 25000
Cost of  electrification 15000
Cost of single bucket milking machine 30000
Cost of dairy appliances @ 1500/cow 15000
Total 625000
Recurring cost to be capitalized
Cost of feed for first batch of  one cows for one month as per feed chart 15900
Cost of insurance  first five  animals @5% of animal cost 8750
Cost of fodder cultivation in 2.5 acres of land for first session 30000
Contingency 10350
Total recurring expenditure 75000
Margin money 10% of project cost 70000
Bank loan 90% of project cost 630000
Particulars Project period
Feeding during lactation period vide yearly lactation days and feed cost as per chart 227900 259700 243800 222600 222600 243800
Feeding during dry period vide dry days and feed cost as per feed chart enclosed 27500 57500 65000 75000 75000 65000
Medicine vaccine veterinary aid 20000 20000 20000 20000 20000 20000
Insurance @5% of animal cost /year 17500 17500 17500 17500 17500 17500
Cost of fodder cultivation 60000 60000 60000 60000 60000 60000
Cost of labour 72000 72000 72000 72000 72000 72000
other miscellaneous expenditure 10000 10000 10000 10000 10000 10000
Total 434900 496700 488300 477100 477100 488300
Sale  of milk @Rs.32/liter during lactation days with average milk yield /cow  liter/day 688000 784000 736000 672000 672000 736000
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) 72000
Value of equipments (Depreciation on equipments @15%/year) 7500
Total income 690100 786300 738250 674100 674100 957700
Gross profit 255200 289600 249950 197000 197000 469400
Sl no Financial indicators Estimated value Preferred value
1. PW costs @ 15%DF 2339385.97
2. PW benefits @ 15%DF 2814659.92
3. Net Present Worth (NPW 475273.95 Should be+ve
4. Benefit Cost Ratio(BCR) 1.20:1 >1
5. Internal Rate of return (IRR) 30.047 >15%
6. Debt Service Coverage Ratio 1.763 >1.5

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 10 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.

error: Content is protected !!