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

DAILY FEEDING AND COST CHART FOR DAIRY COWS
ItemFEEDING STUFFCOST/KG Rs.During the lactation periodDuring dry period
Quantity (kg)Cost (Rs.)Quantity (kg)Cost (Rs.)
1Concentrate feed204.5901.530
2Green fodder120Home grown15Home grown
3Dry fodder4416520
4Total 28.510621.550
Lactation chart/Dry chart
Sr.NoParticulars  Years   
  IIIIIIIVVVi
i)Lactation Days      
a)First batch750840750630630750
b)Second batch540630630630630630
 Total129014701380126012601380
ii)Dry Days      
a)First batch330240330450450330
b)Second batch450450450450450
 Total330690780900900780
              
Economics of dairy farming with 2indigenous 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
 Total368000
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
eContingency7960
fTotal recurring expenditure52000
gTOTAL PROJECT COST420000
hMargin money 10% of the project cost42000
iBank loan 90% of the project cost378000
CASH FLOW ANALYSIS.
ItemParticularsProject period
  123456
 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
 Total227610265230259920252840252840259920
 INCOME      
 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
 123456
Capital Costs368000     
Recurring Cost227610265230259920252840252840259920
Total Costs595610265230259920252840252840259920
Benefit414060471780442950404460404460569720
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

Bank loan 108000 grace period 6 months Loan amount at the end of grace period    =378000+22680=400680

S.NoMonthly InstallmentInterestPrincipal Balance
0   400680
1783340073827396853
2783339693865392989
3783339303903389085
4783338913943385143
5783338513982381161
6783338124022377139
7783337714062373077
8783337314103368974
9783336904144364831
10783336484185360646
11783336064227356419
12783335644269352150
13783335214312347838
14783334784355343483
15783334354399339084
16783333914443334642
17783333464487330155
18783333024532325623
19783332564577321046
20783332104623316423
21783331644669311754
22783331184716307038
23783330704763302275
24783330234811297464
25783329754859292605
26783329264907287698
27783328774956282742
28783328275006277736
29783327775056272680
30783327275107267573
31783326765158262415
32783326245209257206
33783325725261251945
34783325195314246631
35783324665367241264
36783324135421235843
37783323585475230368
38783323045530224839
39783322485585219254
40783321935641213613
41783321365697207916
42783320795754202161
43783320225812196350
44783319635870190480
45783319055929184551
46783318465988178563
47783317866048172516
48783317256108166407
49783316646169160238
50783316026231154007
51783315406293147714
52783314776356141358
53783314146420134938
54783313496484128454
55783312856549121905
56783312196614115291
57783311536680108610
58783310866747101863
5978331019681595048
607833950688388165
617833882695281213
627833812702174192
637833742709167101
647833671716259938
657833599723452704
667833527730645398
677833454737938019
687833380745330566
697833306752823038
707833230760315435
71783315476797756
7278337877560

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.