Model sheep farm project report 50 plus 2

MODEL SHEEP FARM PROJECT REPORT 50 EWE +2 RAM

Sheep is a multi-utility animal used for the production of fleece, meat,  skins, and manure. They don’t require costly structures to house them. Sheep are sparing converter of grass into meat and fleece. The structure of their lips causes them to clean grains lost to collect time and in this way convert waste feed into gainful items. Sheep eat different types of weed plant. This makes them phenomenal weed destroyer. They don’t damage plant like goats. They thrive well even under bad management practices. Unemployed youth can adopt sheep rearing as a source of gainful employment.

This sheep farm project report for 50 animals is based on the following assumption.

1-   Adult healthy Ewes& Ram (mutton type breed) within 2 years of age will be purchased

2-   Manure produced in the farm will be utilized for fodder cultivation

3-  In case of death of adult Sheep, the new animal will be purchased from insurance claim money

4-  The entrepreneur will manage animals with proper care and attention.

5-0.5 hector of irrigated land is prerequisite for the project.

Subsidy for sheep farming:- Both central and state government assistance  is available for  sheep farming.Back ended capital subsidy 25% for general category (33.33% for SC/ST/BPL beneficiaries) is available under government of India scheme Integrated Development Of Small Ruminants And Rabbits (IDSRR-EDEG). Subsidy ceiling is Rs125000/- for sheep farm with 50 ewes and 2 ram.

Techno-economic parameters
System of rearingSemi-intensive
No. of Ram2
No. of Ewes50
Age at Maturity (Months)11
Lambing/ interval (Months)8
No of laming/year1.5
Sex ratio1:1
Mortality(%) Lambs5
Saleable age of lambs (months)11
Expenditure norms
Space requirement sqft.per head for Ram20
Space requirement sqft.per head for Ewe10
Space requirement sqft.per head/lamb4
Cost of construction (Rs.persft)     Ewe, Ram Lambs200
Cost of equipment (Rs.per adult animal)50
The purchase price of ewe4500
The purchase price of Ram6500
 Cost of green fodder cultivation (Rs./hector/year)30000
Concentrate feed : Adult Ewes (one month before breeding and one month after lambing i.e. per lambing)6.75 kg/ month
Concentrate feed for Ram (two months per breeding ram)7.5 kg per month
Concentrate feed for Lambs (for 30 days)3.75 kg per lamb
Cost of conc. feed (Rs./kg)18
Labour (No.)One( part time)
Labour wages (Rs.per month)3000
Insurance (as a percentage of the cost of breeding stock)5
Veterinary aid (Rs./adult/year)100
Income norms :
Sale price of Buck/(11month)3800
Sale price of Ewe/(11month)3500
Income from manure is not assumed as it is used on the own farm for fodder cultivation.
Sale of Gunny bags (Rs./bag)10
Repayment norms:
Repayment period (years)6
Grace Period (years)1
Interest rate(%)12
FLOCK PROJECTION CHART
 Sl. No. ParticularsYear
IIIIIIIVVVIvii
Lambing/year01.51.51.51.51.51.5
 A.Opening Stock – Adult Rams2222222
Adult Ewe purchased stock50505050505050
 B.No of lamb born858585858585
Male Lambs515151515151
Female Lambs515151515151
 C.Mortality
Male Lambs555555
Female Lambs555555
 D.Sale of young lamb
Male0464646464646
Female0464646464646
A-Capital cost(Amount in Rs.)
Construction low cost  Shed for 50 Ewes  @ 10sq.ft/adult Ewe(Rs.200/sq.ft)100000
 Construction of  Shed for 2 Ram@20sq.ft/buck(Rs.200/sq.ft buck shed )8000
Construction of Shed for 52 lambs @4 sq.ft./ lambs @(Rs.200/sqft73600
Equipments feeding trough buckets etc5000
Cost of 50 Ewes@ 4500/Ewe including insurance and transportation225000
Cost of 2 Ram@6500/buck                           13000
TOTAL CAPITAL COST                                                            424600
Working Capital
Wages for part time  labour @3000/month  for 1 year36000
Cost of concentrate feed for 50Ewes @6.75kg/month/Ewe for two months12150
Cost of concentrate feed for 2 Ram @7.5kg/adult animal for two months 540
Cost of concentrate feed for 92 lambs@3.75 kg/lamb /month i.e  900kg6210
Fodder cultivation in 0.5 hector  of land15000
Misc, expenditure i.e.  vaccine medicine and veterinary aid and electricity15000
Contingency10500
Total Working Capital                                                           95400
TOTAL PROJECT COST                       520000
Bank loan 85@% of the project cost442000
Margin money @15 % of the project cost    78000
CASH FLOWProject period (year)   Amount in Rs.
iiiiiiivvvivii
Wages for  labour (part time)3000/month36000360003600036000360003600036000
Cost of insurance 5% of animal cost     first year Included with purchase0119001190011900119001190011900
Cost of concentrate feed for buck Ewes and lambs18900189001890018900189001890018900
Fodder cultivation 0.5 hector15000150001500015000150001500015000
Misc, expenditure i.e.  vaccine medicine and veterinary aid electricity15000150001500015000150001500015000
Total expenditure84900968009680096800968009680084900
Sale price of male young Male @ 3800/-174800174800174800174800174800174800
Sale price of Young female @3500/-161000161000161000161000161000161000
Sale price of gunny bag230230230230230230230
Value of closing stock, @ average 3000/adult& 1500/lamb232500
Value of shed (10% depreciation/year)54480
Value of equipment

(20% depreciation /year)

 –
Total230336030336030336030336030336030623010
Gross profit-84670239230239230239230239230239230538110
 1234567
Capital Costs424600
Recurring Cost84900968009680096800968009680084900
Total Costs509500968009680096800968009680084900
Benefit230336030336030336030336030336030623010
Net Benefit-509270239230239230239230239230239230538110

 

Sl noFinancial indicatorsEstimated valuePreferred value
1Net Present Worth (NPW481987.33Should be +ve
2Benefit Cost Ratio(BCR)1.62:1>1
3Internal Rate of return (IRR)29.35%>15%
4Debt Service Coverage Ratio (DSCR)2.17>1.5

Bank loan -482000  Grace period  = one year Loan amount at the end of one year =482000+57840=539840

S.NoMonthly InstallmentInterestPrincipal Balance
0539840
11055453985156534684
21055453475207529477
31055452955259524218
41055452425312518906
51055451895365513541
61055451355419508123
71055450815473502650
81055450275527497123
91055449715583491540
101055449155639485901
111055448595695480206
121055448025752474454
131055447455809468645
141055446865868462777
151055446285926456851
161055445695985450866
171055445096045444820
181055444486106438715
191055443876167432548
201055443256228426319
211055442636291420029
221055442006354413675
231055441376417407258
241055440736481400776
251055440086546394230
261055439426612387618
271055438766678380941
281055438096745374196
291055437426812367384
301055436746880360504
311055436056949353555
321055435367018346536
331055434657089339448
341055433947159332288
351055433237231325057
361055432517303317754
371055431787376310377
381055431047450302927
391055430297525295403
401055429547600287803
411055428787676280127
421055428017753272374
431055427247830264544
441055426457909256635
451055425667988248648
461055424868068240580
471055424068148232432
481055423248230224202
491055422428312215890
501055421598395207495
511055420758479199016
521055419908564190452
531055419058649181803
541055418188736173067
551055417318823164244
561055416428912155332
571055415539001146331
581055414639091137241
591055413729182128059
601055412819273118786
611055411889366109420
62105541094946099960
63105541000955490406
6410554904965080756
6510554808974671009
6610554710984461165
6710554612994251223
68105545121004241181
69105544121014231039
70105543101024420796
71105542081034610449
7210554104104490

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