Dairy farm project report 6 cows

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. 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 the government of India scheme Dairy Entrepreneurship Development Scheme (DEDS.)Subsidy ceiling is Rs105,000/ for general category & Rs14000/- for ST/SC category for the dairy farm with two 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 Rs105,000/ for general category & Rs14000/- for ST/SC category for dairy farm six animals for PDE scheme. 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

Sr.NoParticulars  Years   
i)Lactation Days      
a)First batch750840750630630750
b)Second batch540630630630630630
ii)Dry Days      
a)First batch330240330450450330
b)Second batch450450450450450
Economics of dairy farming with 6 indigenous dairy breed/ crossbred/cows
Project costCost. In Rs.
1Capital cost
2Cow shed for 2 cows 40sq.ft/cow @300/sqft72000
3Calf pen for 6 calves 20 sq.ft./calf @300/sq.ft.36000
4Cost of 2 CB cows with minimum average 10 liter milk yield /day @30000/cow (as per govt. norm @ 3500/ liter of milk yield/cow)210000
5Cost of transportation @1000/cow6000
6Cost of one chaff cutter hand operated10000
7Cost of dairy appliances @ 1500/cow9000
Cost of electrification10000
Cost of one hand operated milking machine15000
Recurring cost to be capitalized
aCost of feed for first batch of  one cows for one month as per feed chart9540
bCost of insurance with ptd cover   6 animals @5% of animal cost10500
cCost of fodder cultivation in 1.5 acres of land for first session18000
dCost of medicine vaccine, electricity for the first cow6000
fTotal recurring expenditure52000
hMargin money 10% of the project cost42000
iBank loan 90% of the project cost378000
ItemParticularsProject period
Feeding during lactation period vide yearly lactation days and feed cost as per chart140610160230150420137340137340150420
Feeding during dry period vide dry days and feed cost as per feed chart enclosed165003450039000450004500039000
Medicine vaccine veterinary aid120001200012000120001200012000
Insurance @5% of animal cost /year105001050010500105001050010500
Cost of fodder cultivation Two crop/year360003600036000360003600036000
other miscellaneous expenditure120001200012000120001200012000
Sale  of milk @Rs.32/liter during lactation days with average milk yield /10  liter/day412800470400441600403200403200441600
Sale of gunny bags126013801350126012601320
Manure will be utilized in own farm
Value of closing stock of 6 cows(Depreciation on animal cost @10%/year)84000
Value of building (Depreciation on building@10%/year)38400
Value of equipment (Depreciation on equipment @15%/year)4400
Total income414060471780442950404460404460569720
Gross profit186450206550183030151620151620309800
Calculation of BCR & IRR
Capital Costs368000
Recurring Cost227610265230259920252840252840259920
Total Costs595610265230259920252840252840259920
Net Benefit-181550206550183030151620151620309800
Sl noFinancial indicatorsEstimated valuePreferred value
1.PW costs @ 15%DF1272014.19
2.PW benefits @ 15%DF1686677.55
3.Net Present Worth (NPW414663.36Should be+ve
4.Benefit Cost Ratio(BCR)1.326:1>1
5.Internal Rate of return (IRR)39.247>15%
6.Debt Service Coverage Ratio2.10>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 6 cows

Updated as per new DEDS/PDE unit cost 2018-19

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.