Project report for dairy farm with 20 cows

dairy project 20 cows

PROJECT REPORT FOR DAIRY FARM WITH 20 CB HF/CB JERSEY COWS

MODEL APICOL PROJECT

This model project report for dairy farm with 20 cows is based on the following assumption:

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.

2. Availability of  4 acres of  land is prerequisite for the project

4.Fodder cultivation considered in 4-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, 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 six lakhs is available for 20 animal dairy farm for ST/SC and general women. 40% subsidy with limit of 4.8 lakhs is available for the male of general category.

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. the thatched roof can replace asbestos in low-cost housing.

ITEMSLENGTH IN METER
MANGER0.6M
STANDING PLACE1.5M
GUTTER0.4M
FEEDING PASSAGE1.2M ON BOTH SIDE
MILKING PLACE1.2M

 TECHNO-ECONOMIC  PARAMETERS

Sl noparametersvalue
1.BreedHF/CB JERSEY
2.Lactation period after (L.P)after calving280 days
3.Dry period after lactation85days
4.Phasing between two batches180 days
5.Average milk yield/cow/day12liters
6.Average cost/cow including transportation and insurance40000/-
7.Construction cost  for cattle shed /sq.ftRs.300/-
8.Construction cost  for office building & store/sq.ftRs.400/-
9.Depreciation on buildings10% / year
10.Depreciation on equipments15% / year
11.Average cost/litter of milkRs.32
12.Animals to be purchased in first batch10
13.Animals to be purchased in 2nd batch10
14.Floor Space requirement /cow60 sq.ft
15.Floor Space requirement /calf20 sq.ft.
16.Cost of milk can2000/can
17.Milking Equipment 2 Cluster Can50000
18.Cost of medicine vaccine /cow/year1500/cow
19.Cost of insurance with PTD cover/cow/year5% of the animal cost
20.No of labourer1
21.No of managerENTREPRENEUR (SELF )
22.Salary of Labor72000/year
23.Cost of electricity and water per animal per year1500
24.Margin money15% of the project cost
25.Repayment period6 years
26.Grace period6months
27.Farmyard manure shall be used for fertilizing the fodder plots
28.Feeding cost of calves has not been calculated in this project as it will be recovered from the sale of male calves & Heifers will be retained on the farm as replacement stock.

DAILY FEEDING AND COST CHART FOR DAIRY COWS

ItemFEEDING STUFFCOST/KG

Rs.

During lactation periodDuring dry period
Quantity (kg)Cost (Rs.)Quantity (kg)Cost (Rs.)
iConcentrate feed206.51301.530
iiGreen fodderHome grown40Home grown35Home grown
iiiDry fodder5525630
Total15560

 

Lactation chart/Dry chart 20 cow dairy farm
Sr.NoParticularsYears
IIIIIIIVVVi
i)Lactation Days
a)First batch275029503000300029502750
b)Second batch180027502750275027502750
Total455057005750575057005500
ii)Dry Days
a)First batch900700650650700900
b)Second batch0900900900900900
Total90016001550155016001800

 ECONOMICS OF DAIRY FARMING WITH 20 HF/CB JERSEY COWS

Project cost and bank loanCost. In Rs.
1.Capital cost
2.Cow shed for 20 cows 60sq.ft/cow @300/sqft360000
3.Calf pen for 20 calves 20 sq.ft./calf @300/sq.ft.120000
4.One room 10” x 10” for keeping implements. And feed @400/sq.ft40000
5.Office room of 10” x 10”@ 500/sqft40000
6.Electric connection  and electrical installation to the farm3000
7.Bore well with pump set90000
8.Cost of 1 Fodder Chaff Cutter with Motor25000
9.Cost of milking machine with two can cluster50000
10.Milk Cans 40 Liter 10 Nos20000
11.Cost of one refrigerator for storage of medicines vaccines with voltage stabilizer15000
12.Cost of 20 CB jersey / CB HF Cows with minimum  average 12 liter milk yield /day including transportation  and insurance  @ 40000/cow800000
Total1563000
Recurring cost to be capitalized
       I.Cost of feed for first batch of 10 cows for one month as per feed chart46500
    II.Cost of fodder cultivation in 4 acres of land For one season24000
 III.Salary of  one  labourer  for one month6000
IV.Cost of medicine vaccine, electricity for the first month  for first batch of  10 cows & Misc expenditure for one month4500
   V.Contingency6000
Total recurring expenditure87000
TOTAL PROJECT COST1650000
Margin Money  @15% of the project cost247500
Bank loan @ 85% of project costRs. 1402500
CASH FLOW ANALYSIS.Year
1234567
Feeding during lactation period vide yearly lactation days and feed cost as per chart705250883500891250891250883500852500852500
 

Feeding during dry period vide dry days and feed cost as per feed chart enclosed

540009600093000930009600010800054000
Medicine vaccine veterinary aid30000300003000030000300003000030000
Insurance @5% of animal cost /year20000200002000020000200002000020000
Cost of fodder cultivation

For two session

48000480004800048000480004800048000
Labour salary72000720007200072000720007200072000
other miscellaneous expenditure including electricity 30000300003000030000300003000030000
Total959250117950011842501184250117950011605001106500
INCOME 
Sale  of milk @Rs.32/liter during lactation days with average milk  12 liter yield /cow  day1747200218880022080002208000218880021120001747200
Manure will be utilized in own farm 
Value of closing stock of 20 cows(Depreciation on animal cost @15%/year) -0
Value of building(Depreciation on building@10%/year) 168000
Value of equipment (Depreciation on equipment @15%/year) 0
Total income1747200218880022080002208000218880021120001915200
Gross profit7879501009300102375010237501009300951500808700

Calculation of BCR & IRR

1234567
Capital Costs1565000
Recurring Cost959250117950011842501184250117950011605001106500
Total Costs2524250117950011842501184250117950011605001106500
Benefit1747200218880022080002208000218880021120001915200
Net Benefit-7770501009300102375010237501009300951500808700
Sl noFinancial indicatorsEstimated valuePreferred value
1Net Present Worth (NPW) @ 15% DF2563125.25Should be +ve
2Benefit Cost Ratio(BCR)1.42:1>1
3Internal Rate of return (IRR)53.11>15%
4DSCR3.16>1.5

Bank loan =1402500 Grace period =6 month interest rate=12% Loan amount at the end of grace period= 1402500+84150=1486650

S.NoMonthly InstallmentInterestPrincipal Balance
01486650
12906414867141981472452
22906414725143401458112
32906414581144831443629
42906414436146281429001
52906414290147741414227
62906414142149221399305
72906413993150711384234
82906413842152221369012
92906413690153741353638
102906413536155281338110
112906413381156831322426
122906413224158401306586
132906413066159981290588
142906412906161581274430
152906412744163201258110
162906412581164831241626
172906412416166481224978
182906412250168151208164
192906412082169831191181
202906411912171521174029
212906411740173241156705
222906411567174971139207
232906411392176721121535
242906411215178491103686
252906411037180271085659
262906410857182081067451
272906410675183901049061
282906410491185741030488
292906410305187591011728
30290641011718947992781
3129064992819136973645
3229064973619328954317
3329064954319521934796
3429064934819716915080
3529064915119913895166
3629064895220113875053
3729064875120314854740
3829064854720517834223
3929064834220722813501
4029064813520929792571
4129064792621139771433
4229064771421350750083
4329064750121563728519
4429064728521779706740
4529064706721997684743
4629064684722217662526
4729064662522439640087
4829064640122663617424
4929064617422890594534
5029064594523119571415
5129064571423350548065
5229064548123584524481
5329064524523819500662
5429064500724058476604
5529064476624298452306
5629064452324541427765
5729064427824787402978
5829064403025035377943
5929064377925285352659
6029064352725538327121
6129064327125793301328
6229064301326051275277
6329064275326312248965
6429064249026575222391
6529064222426840195550
6629064195627109168441
6729064168427380141062
6829064141127654113408
692906411342793085478
70290648552821057268
71290645732849228777
7229064288287770

Bank loan =1402500 Grace period =6 month interest rate=12% ,Loan amount at the end of grace period= 1402500+84150=1486650

S.NoMonthly InstallmentInterestPrincipal Balance
01486650
12906414867141981472452
22906414725143401458112
32906414581144831443629
42906414436146281429001
52906414290147741414227
62906414142149221399305
72906413993150711384234
82906413842152221369012
92906413690153741353638
102906413536155281338110
112906413381156831322426
122906413224158401306586
132906413066159981290588
142906412906161581274430
152906412744163201258110
162906412581164831241626
172906412416166481224978
182906412250168151208164
192906412082169831191181
202906411912171521174029
212906411740173241156705
222906411567174971139207
232906411392176721121535
242906411215178491103686
252906411037180271085659
262906410857182081067451
272906410675183901049061
282906410491185741030488
292906410305187591011728
30290641011718947992781
3129064992819136973645
3229064973619328954317
3329064954319521934796
3429064934819716915080
3529064915119913895166
3629064895220113875053
3729064875120314854740
3829064854720517834223
3929064834220722813501
4029064813520929792571
4129064792621139771433
4229064771421350750083
4329064750121563728519
4429064728521779706740
4529064706721997684743
4629064684722217662526
4729064662522439640087
4829064640122663617424
4929064617422890594534
5029064594523119571415
5129064571423350548065
5229064548123584524481
5329064524523819500662
5429064500724058476604
5529064476624298452306
5629064452324541427765
5729064427824787402978
5829064403025035377943
5929064377925285352659
6029064352725538327121
6129064327125793301328
6229064301326051275277
6329064275326312248965
6429064249026575222391
6529064222426840195550
6629064195627109168441
6729064168427380141062
6829064141127654113408
692906411342793085478
70290648552821057268
71290645732849228777
7229064288287770

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