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.
Subsidy– Subsidy limit under MKUY is 40% of the fixed capital (excluding the cost of the land) subject to a limit of 50.00 lakh for general male category. Subsidy is 50% of the fixed capital limited to 50.00 lakh for SC/ST/Women/Graduates of Agriculture and Allied Disciplines for this type project. Farmer/entrepreneur can apply through GO Sugam Portal. Net annual profit from the project should be more than 2 Lakh for individual & more than one lakh for SHG groups.
This Goat project report 100+5 is based on the follo
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.
| Techno-economic parameters | |
| System of rearing | Semi-intensive |
| No. of Ram | 2 |
| No. of Ewes | 50 |
| Age at Maturity (Months) | 11 |
| Lambing/ interval (Months) | 8 |
| No of laming/year | 1.5 |
| Sex ratio | 1:1 |
| Mortality(%) Lambs | 5 |
| Saleable age of lambs (months) | 11 |
| Expenditure norms | |
| Space requirement sqft.per head for Ram | 20 |
| Space requirement sqft.per head for Ewe | 10 |
| Space requirement sqft.per head/lamb | 4 |
| Cost of construction (Rs.persft) Ewe, Ram Lambs | 200 |
| Cost of equipment (Rs.per adult animal) | 50 |
| The purchase price of ewe | 4500 |
| The purchase price of Ram | 6500 |
| 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. | Particulars | Year | ||||||
| I | II | III | IV | V | VI | vii | ||
| Lambing/year | 0 | 1.5 | 1.5 | 1.5 | 1.5 | 1.5 | 1.5 | |
| A. | Opening Stock – Adult Rams | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
| Adult Ewe purchased stock | 50 | 50 | 50 | 50 | 50 | 50 | 50 | |
| B. | No of lamb born | 85 | 85 | 85 | 85 | 85 | 85 | |
| Male Lambs | 51 | 51 | 51 | 51 | 51 | 51 | ||
| Female Lambs | 51 | 51 | 51 | 51 | 51 | 51 | ||
| C. | Mortality | |||||||
| Male Lambs | 5 | 5 | 5 | 5 | 5 | 5 | ||
| Female Lambs | 5 | 5 | 5 | 5 | 5 | 5 | ||
| D. | Sale of young lamb | |||||||
| Male | 0 | 46 | 46 | 46 | 46 | 46 | 46 | |
| Female | 0 | 46 | 46 | 46 | 46 | 46 | 46 | |
| 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/sqft | 73600 |
| Equipments feeding trough buckets etc | 5000 |
| Cost of 50 Ewes@ 4500/Ewe including insurance and transportation | 225000 |
| Cost of 2 Ram@6500/buck | 13000 |
| TOTAL CAPITAL COST | 424600 |
| Working Capital | |
| Wages for part time labour @3000/month for 1 year | 36000 |
| Cost of concentrate feed for 50Ewes @6.75kg/month/Ewe for two months | 12150 |
| 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 900kg | 6210 |
| Fodder cultivation in 0.5 hector of land | 15000 |
| Misc, expenditure i.e. vaccine medicine and veterinary aid and electricity | 15000 |
| Contingency | 10500 |
| Total Working Capital | 95400 |
| TOTAL PROJECT COST | 520000 |
| Bank loan 85@% of the project cost | 442000 |
| Margin money @15 % of the project cost | 78000 |
| CASH FLOW | Project period (year) Amount in Rs. | |||||||
| i | ii | iii | iv | v | vi | vii | ||
| Wages for labour (part time)3000/month | 36000 | 36000 | 36000 | 36000 | 36000 | 36000 | 36000 | |
| Cost of insurance 5% of animal cost first year Included with purchase | 0 | 11900 | 11900 | 11900 | 11900 | 11900 | 11900 | |
| Cost of concentrate feed for buck Ewes and lambs | 18900 | 18900 | 18900 | 18900 | 18900 | 18900 | 18900 | |
| Fodder cultivation 0.5 hector | 15000 | 15000 | 15000 | 15000 | 15000 | 15000 | 15000 | |
| Misc, expenditure i.e. vaccine medicine and veterinary aid electricity | 15000 | 15000 | 15000 | 15000 | 15000 | 15000 | 15000 | |
| Total expenditure | 84900 | 96800 | 96800 | 96800 | 96800 | 96800 | 84900 | |
| Sale price of male young Male @ 3800/- | 174800 | 174800 | 174800 | 174800 | 174800 | 174800 | ||
| Sale price of Young female @3500/- | 161000 | 161000 | 161000 | 161000 | 161000 | 161000 | ||
| Sale price of gunny bag | 230 | 230 | 230 | 230 | 230 | 230 | 230 | |
| Value of closing stock, @ average 3000/adult& 1500/lamb | 232500 | |||||||
| Value of shed (10% depreciation/year) | 54480 | |||||||
| Value of equipment
(20% depreciation /year) |
– | |||||||
| Total | 230 | 336030 | 336030 | 336030 | 336030 | 336030 | 623010 | |
| Gross profit | -84670 | 239230 | 239230 | 239230 | 239230 | 239230 | 538110 | |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | |
| Capital Costs | 424600 | ||||||
| Recurring Cost | 84900 | 96800 | 96800 | 96800 | 96800 | 96800 | 84900 |
| Total Costs | 509500 | 96800 | 96800 | 96800 | 96800 | 96800 | 84900 |
| Benefit | 230 | 336030 | 336030 | 336030 | 336030 | 336030 | 623010 |
| Net Benefit | -509270 | 239230 | 239230 | 239230 | 239230 | 239230 | 538110 |
| Sl no | Financial indicators | Estimated value | Preferred value |
| 1 | Net Present Worth (NPW | 481987.33 | Should be +ve |
| 2 | Benefit Cost Ratio(BCR) | 1.62:1 | >1 |
| 3 | Internal Rate of return (IRR) | 29.35% | >15% |
| 4 | Debt Service Coverage Ratio (DSCR) | 2.17 | >1.5 |
Loan Repayment for 50 +2 animal sheep farm:- Repayment of loan will start after grace period of one year. Total loan repayment period is 6-7 years. Details of monthly installment, interest payment, principal payment and balance is given in repayment schedule for 50 sheep.
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