DAIRY FARM PROJECT REPORT EIGHT COWS

INDIGENOUS MILCH BREED / CROSS-BRED COWS

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 locality. 4-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.

Dairy farm project report eight cows is based on the 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 acres of irrigated land is prerequisite for the project3. 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 value7.In case of death cow new cow will be purchased from insurance claim money8.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 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 hang over 3ft beyond the wall to prevent rainwater from entering cow shade. The 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	1200	1200	1200	1200	1200	1200
b)	Second batch	720	1200	1200	1200	1200	1200
	Total	1920	2400	2400	2400	2400	2400
ii)	Dry Days
a)	First batch	260	260	260	260	260	260
b)	Second batch	–	260	260	260	260	260
	Total	260	520	520	520	520	520

Feeding requirement and expenditure is given in Feed chart for cow

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
Sr.No		Particulars							Years
					I		II		III		IV	V		Vi
i)		Lactation Days
a)		First batch			1200		1200		1200		1200	1200		1200
b)		Second batch			720		1200		1200		1200	1200		1200
		Total			1920		2400		2400		2400	2400		2400
ii)		Dry Days
a)		First batch			260		260		260		260	260		260
b)		Second batch			–		260		260		260	260		260
		Total			260		520		520		520	520		520
. Techno economic parameter
Type of Animal						Indigenous Milch breed/ crossbred/ CB Jersey Cow
No. of Animals						8
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)						6000
Insurance premium (% per annum)						5
Veterinary aid/animal/ year (Rs.)						2000
Cost of concentrate feed (Rs./kg)						25
Labour part time						3000 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 eight 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 8 cows 60sq.ft/cow @400/sqft	192000
Calf pen for 8 calves 20 sq.ft./calf @400/sq.ft.	64000
Cost of 8 CB cows with minimum average 10 liter milk yield /day @80000/- including insurance & transportation	640000
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	1072000
Recurring cost to be capitalized
Cost of feed for first batch of four cows for one month as per feed chart	18000
Cost of fodder cultivation in 2 acres of land for first session	12000
Cost of medicine vaccine, for the first four cows	8000
contingency	10000
Total recurring expenditure	48000
TOTAL PROJECT COST	1120000
Margin money 20% of project cost	224000
Bank loan 80% of project cost	8,96,000

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 =8,96,000 grace period 6 month Repayment period 6 years

Loan amount at the end of grace period Loan amount 8,96,000+ interest for 6 months 49280=9,45,280

S.No	Monthly Installment	Interest	Principal	Balance
0				945280
1	17993	8665	9327	935953
2	17993	8580	9413	926540
3	17993	8493	9499	917040
4	17993	8406	9586	907454
5	17993	8318	9674	897780
6	17993	8230	9763	888017
7	17993	8140	9852	878165
8	17993	8050	9943	868222
9	17993	7959	10034	858188
10	17993	7867	10126	848062
11	17993	7774	10219	837844
12	17993	7680	10312	827531
13	17993	7586	10407	817124
14	17993	7490	10502	806622
15	17993	7394	10598	796024
16	17993	7297	10696	785328
17	17993	7199	10794	774534
18	17993	7100	10893	763642
19	17993	7000	10992	752649
20	17993	6899	11093	741556
21	17993	6798	11195	730361
22	17993	6695	11298	719063
23	17993	6591	11401	707662
24	17993	6487	11506	696157
25	17993	6381	11611	684546
26	17993	6275	11718	672828
27	17993	6168	11825	661003
28	17993	6059	11933	649070
29	17993	5950	12043	637027
30	17993	5839	12153	624874
31	17993	5728	12265	612609
32	17993	5616	12377	600232
33	17993	5502	12490	587742
34	17993	5388	12605	575137
35	17993	5272	12720	562417
36	17993	5155	12837	549580
37	17993	5038	12955	536625
38	17993	4919	13073	523552
39	17993	4799	13193	510358
40	17993	4678	13314	497044
41	17993	4556	13436	483608
42	17993	4433	13559	470048
43	17993	4309	13684	456364
44	17993	4183	13809	442555
45	17993	4057	13936	428619
46	17993	3929	14064	414556
47	17993	3800	14192	400363
48	17993	3670	14323	386041
49	17993	3539	14454	371587
50	17993	3406	14586	357001
51	17993	3273	14720	342281
52	17993	3138	14855	327426
53	17993	3001	14991	312435
54	17993	2864	15129	297306
55	17993	2725	15267	282039
56	17993	2585	15407	266632
57	17993	2444	15548	251083
58	17993	2302	15691	235392
59	17993	2158	15835	219558
60	17993	2013	15980	203578
61	17993	1866	16126	187451
62	17993	1718	16274	171177
63	17993	1569	16423	154754
64	17993	1419	16574	138180
65	17993	1267	16726	121454
66	17993	1113	16879	104575
67	17993	959	17034	87541
68	17993	802	17190	70351
69	17993	645	17348	53003
70	17993	486	17507	35496
71	17993	325	17667	17829
72	17993	163	17829	0

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.