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
| Sr.No | Particulars | Years | |||||
| I | II | III | IV | V | Vi | ||
| i) | Lactation Days | ||||||
| a) | First batch | 750 | 840 | 750 | 630 | 630 | 750 |
| b) | Second batch | 540 | 630 | 630 | 630 | 630 | 630 |
| Total | 1290 | 1470 | 1380 | 1260 | 1260 | 1380 | |
| ii) | Dry Days | ||||||
| a) | First batch | 330 | 240 | 330 | 450 | 450 | 330 |
| b) | Second batch | – | 450 | 450 | 450 | 450 | 450 |
| Total | 330 | 690 | 780 | 900 | 900 | 780 |
| Economics of dairy farming with 6 indigenous dairy breed/ crossbred/cows | ||
| Project cost | Cost. In Rs. | |
| 1 | Capital cost | |
| 2 | Cow shed for 2 cows 40sq.ft/cow @300/sqft | 72000 |
| 3 | Calf pen for 6 calves 20 sq.ft./calf @300/sq.ft. | 36000 |
| 4 | Cost 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 |
| 5 | Cost of transportation @1000/cow | 6000 |
| 6 | Cost of one chaff cutter hand operated | 10000 |
| 7 | Cost of dairy appliances @ 1500/cow | 9000 |
| Cost of electrification | 10000 | |
| Cost of one hand operated milking machine | 15000 | |
| Total | 368000 | |
| Recurring cost to be capitalized | ||
| a | Cost of feed for first batch of one cows for one month as per feed chart | 9540 |
| b | Cost of insurance with ptd cover 6 animals @5% of animal cost | 10500 |
| c | Cost of fodder cultivation in 1.5 acres of land for first session | 18000 |
| d | Cost of medicine vaccine, electricity for the first cow | 6000 |
| e | Contingency | 7960 |
| f | Total recurring expenditure | 52000 |
| g | TOTAL PROJECT COST | 420000 |
| h | Margin money 10% of the project cost | 42000 |
| i | Bank loan 90% of the project cost | 378000 |
| 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 | 140610 | 160230 | 150420 | 137340 | 137340 | 150420 | |
| Feeding during dry period vide dry days and feed cost as per feed chart enclosed | 16500 | 34500 | 39000 | 45000 | 45000 | 39000 | |
| Medicine vaccine veterinary aid | 12000 | 12000 | 12000 | 12000 | 12000 | 12000 | |
| Insurance @5% of animal cost /year | 10500 | 10500 | 10500 | 10500 | 10500 | 10500 | |
| Cost of fodder cultivation Two crop/year | 36000 | 36000 | 36000 | 36000 | 36000 | 36000 | |
| other miscellaneous expenditure | 12000 | 12000 | 12000 | 12000 | 12000 | 12000 | |
| Total | 227610 | 265230 | 259920 | 252840 | 252840 | 259920 | |
| INCOME | |||||||
| Sale of milk @Rs.32/liter during lactation days with average milk yield /10 liter/day | 412800 | 470400 | 441600 | 403200 | 403200 | 441600 | |
| Sale of gunny bags | 1260 | 1380 | 1350 | 1260 | 1260 | 1320 | |
| 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 income | 414060 | 471780 | 442950 | 404460 | 404460 | 569720 | |
| Gross profit | 186450 | 206550 | 183030 | 151620 | 151620 | 309800 | |
| Calculation of BCR & IRR | ||||||
| 1 | 2 | 3 | 4 | 5 | 6 | |
| Capital Costs | 368000 | |||||
| Recurring Cost | 227610 | 265230 | 259920 | 252840 | 252840 | 259920 |
| Total Costs | 595610 | 265230 | 259920 | 252840 | 252840 | 259920 |
| Benefit | 414060 | 471780 | 442950 | 404460 | 404460 | 569720 |
| Net Benefit | -181550 | 206550 | 183030 | 151620 | 151620 | 309800 |
| Sl no | Financial indicators | Estimated value | Preferred value |
| 1. | PW costs @ 15%DF | 1272014.19 | |
| 2. | PW benefits @ 15%DF | 1686677.55 | |
| 3. | Net Present Worth (NPW | 414663.36 | Should be+ve |
| 4. | Benefit Cost Ratio(BCR) | 1.326:1 | >1 |
| 5. | Internal Rate of return (IRR) | 39.247 | >15% |
| 6. | Debt Service Coverage Ratio | 2.10 | >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
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