PROJECT REPORT FOR DAIRY FARM WITH 6 COWS,2021

Project report for a dairy farm with six indigenous dairy breed/ crossbred/cows

This project report is based on the following assumption: 1. Freshly calved crossbred Jersey/ indigenous dairy breed 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 1.5 acres of irrigated land is prerequisite for the project 4.Fodder cultivation considered in 1.5 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 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 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

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			900	900		900		900	900		900
b)		Second batch			540	900		900		900	900		900
		Total			1440	1800		1800		1800	1800		1800
ii)		Dry Days
a)		First batch			195	195		195		195	195		195
b)		Second batch			–	195		195		195	195		195
		Total			195	390		390		390	390		390

Economics of dairy farming with 6 indigenous dairy breed/ crossbred/cows
	Project cost	Cost. In Rs.
1	Capital cost
2	Cow shed for 6 cows 60sq.ft/cow @400/sqft	144000
3	Calf pen for 6 calves 20 sq.ft./calf @400/sq.ft.	48000
4	Cost of 6 CB cows with 10-12 liter milk yield /day including transportation @insurance	480000
6	Cost of one chaff cutter hand operated	10000
7	Cost of dairy appliances @ 2000/cow	12000
8	Cost of electrification	10000
9	Cost of one milking machine	10000
	Total capital expenditure	714000
Recurring cost to be capitalized
a	Cost of feed for first batch of three cows for one month as per feed chart	13050
c	Cost of fodder cultivation in 1.5 acres of land for first session	9000
d	Cost of medicine vaccine, electricity for the first cow	6000
e	Contingency	7950
f	Total recurring expenditure	36000
g	TOTAL PROJECT COST	750000
h	Margin money 20% of the project cost	150000
i	Bank loan 80% of the project cost	600000

CASH FLOW ANALYSIS.
Item	Particulars	Project period
		1	2	3	4	5	6
	Feeding during lactation period vide yearly lactation days and feed cost as per chart	216000	270000	270000	270000	270000	270000
	Feeding during dry period vide dry days and feed cost as per feed chart enclosed	12187.5	24375	24375	24375	24375	24375
	Medicine vaccine veterinary aid	12000	12000	12000	12000	12000	12000
	Insurance @5% of animal cost /year		27000	27000	27000	27000	27000
	Cost of fodder cultivation Two crop/year	36000	36000	36000	36000	36000	36000
	Total	276187.5	369375	369375	369375	369375	369375
	INCOME
	Sale of milk @Rs.40/liter during lactation days with average milk yield /10 liter/day	576000	720000	720000	720000	720000	720000
	Sale of gunny bags	2600	2600	2600	2600	2600	2600
	Manure will be utilized in own farm
	Value of closing stock of 6 cows(Depreciation on animal cost @10%/year)						192000
	Value of building (Depreciation on building@10%/year)						76800
	Value of equipment (Depreciation on equipment @20%/year)						0
	Total income	578600	722600	722600	722600	722600	991400
	Gross profit	302412.5	353225	353225	353225	353225	622025

Calculation of BCR & IRR
	1	2	3	4	5	6
Capital Costs	714000
Recurring Cost	302412.5	353225	353225	353225	353225	622025
Total Costs	997487.5	322675	322675	322675	322675	322675
Benefit	578600	578600	578600	578600	578600	847400
Net Benefit	-418888	255925	255925	255925	255925	524725

Sl no	Financial indicators	Estimated value	Preferred value
1.	PW costs @ 15%DF	1807951.43
2.	PW benefits @ 15%DF	2305911.34
3.	Net Present Worth (NPW	497959.91	Should be+ve
4.	Benefit Cost Ratio(BCR)	1.275:1	>1
5.	Internal Rate of return (IRR)	30.785	>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, principal payment and balance is given below.Bank loan 600000 grace period 6 months Loan at the end of 6 months =600000+33000 interest=633000

S.No	Monthly Installment	Interest	Principal	Balance
0				633000
1	13763	5803	7960	625040
2	13763	5730	8033	617006
3	13763	5656	8107	608899
4	13763	5582	8181	600718
5	13763	5507	8256	592461
6	13763	5431	8332	584129
7	13763	5355	8408	575721
8	13763	5277	8486	567235
9	13763	5200	8563	558672
10	13763	5121	8642	550030
11	13763	5042	8721	541309
12	13763	4962	8801	532508
13	13763	4881	8882	523627
14	13763	4800	8963	514664
15	13763	4718	9045	505618
16	13763	4635	9128	496490
17	13763	4551	9212	487278
18	13763	4467	9296	477982
19	13763	4382	9381	468601
20	13763	4296	9467	459133
21	13763	4209	9554	449579
22	13763	4121	9642	439937
23	13763	4033	9730	430207
24	13763	3944	9819	420388
25	13763	3854	9909	410478
26	13763	3763	10000	400478
27	13763	3671	10092	390386
28	13763	3579	10184	380202
29	13763	3485	10278	369924
30	13763	3391	10372	359552
31	13763	3296	10467	349085
32	13763	3200	10563	338522
33	13763	3103	10660	327862
34	13763	3005	10758	317105
35	13763	2907	10856	306248
36	13763	2807	10956	295293
37	13763	2707	11056	284237
38	13763	2606	11157	273079
39	13763	2503	11260	261819
40	13763	2400	11363	250456
41	13763	2296	11467	238989
42	13763	2191	11572	227417
43	13763	2085	11678	215739
44	13763	1978	11785	203953
45	13763	1870	11893	192060
46	13763	1761	12002	180058
47	13763	1651	12112	167945
48	13763	1539	12223	155722
49	13763	1427	12336	143386
50	13763	1314	12449	130938
51	13763	1200	12563	118375
52	13763	1085	12678	105697
53	13763	969	12794	92903
54	13763	852	12911	79992
55	13763	733	13030	66962
56	13763	614	13149	53813
57	13763	493	13270	40543
58	13763	372	13391	27152
59	13763	249	13514	13638
60	13763	125	13638	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.