SHEEP FARM PROJECT REPORT 100 EWE +4 RAM
The agro-climatic condition in India is suitable for sheep farming. sheep are mostly reared for mutton and wool production in our country. Investment in sheep farming is low & it gives a good return in a short period. The meat of sheep is called mutton, which is a preferred food among all community. Sheep don’t need expensive housing. Good care of animals and better management are key to success in sheep farming. Subsidy for sheep farming:–
Avail Bank loan and 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 sheep farm project report is subject to 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 above project will be economically viable under proper care & attention of the entrepreneur
| Techno-economic parameters | |
| System of rearing | Semi-intensive |
| No. of Ram | 4 |
| No. of Ewes | 100 |
| 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 per month |
| Concentrate feed for Ram (two months per breeding season) | 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.) | 1 |
| Labour wages (Rs.per month) | 6000 |
| 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 | 4 | 4 | 4 | 4 | 4 | 4 | 4 |
| Adult Ewe purchased stock | 100 | 100 | 100 | 100 | 100 | 100 | 100 | |
| B. | No of lamb born | 85 | 85 | 85 | 85 | 85 | 85 | |
| Male Lambs | 102 | 102 | 102 | 102 | 102 | 102 | ||
| Female Lambs | 102 | 102 | 102 | 102 | 102 | 102 | ||
| C. | Mortality | |||||||
| Male Lambs | 10 | 10 | 10 | 10 | 10 | 10 | ||
| Female Lambs | 10 | 10 | 10 | 10 | 10 | 10 | ||
| D. | Sale of young lamb | |||||||
| Male | 0 | 92 | 92 | 92 | 92 | 92 | 92 | |
| Female | 0 | 92 | 92 | 92 | 92 | 92 | 92 | |
| A-Capital cost | (Amount in Rs.) |
| Construction low cost Shed for 100Ewes @ 10sq.ft/adult Ewe(Rs.200/sq.ft | 200000 |
| Construction of Shed for 4 Ram@20sq.ft/buck(Rs.200/sq.ft buck shed ) | 16000 |
| Construction of Shed for 102 lambs @4 sq.ft./ lambs (408sq.ft)@(Rs.200/sqft | 81600 |
| Equipment feeding trough buckets etc | 10000 |
| Cost of 100 Ewes@ 4500/Ewe including insurance and transportation | 450000 |
| Cost of 4 Ram@6500/buck | 26000 |
| Borewell with a pump set | 90000 |
| TOTAL CAPITAL COST | 873600 |
| Working Capital | |
| Wages for one labour @6000/month for 1 year | 72000 |
| Cost of concentrate feed for 100 Ewes @6.75kg/month/Ewe for two months i.e kg@18/kg | 23400 |
| Cost of concentrate feed for 4 Ram @7.5kg/adult animal for two months @ 16/kg | 1080 |
| Cost of concentrate feed for 102 lambs@3.75 kg/lamb /month i.e 900kg for one month @18/kg | 6885 |
| Fodder cultivation in 1.hector of land | 30000 |
| Misc, expenditure i.e. vaccine medicine and veterinary aid and electricity | 30000 |
| Contingency | 13035 |
| Total Working Capital | 176400 |
| TOTAL PROJECT COST | 1050000 |
| Bank loan @75% of project cost | 787500 |
| Margin money @25% of the project cost | 262500 |
| CASH FLOW | Project period (year) Amount in Rs. | |||||||
| i | ii | iii | iv | v | vi | vii | ||
| Wages for labour @200/day for 1 year | 72000 | 72000 | 72000 | 72000 | 72000 | 72000 | 72000 | |
| Cost of insurance 5% of animal cost | Included | 23800 | 23800 | 23800 | 23800 | 23800 | 23800 | |
| Cost of concentrate feed for buck Ewes and lambs | 31365 | 31365 | 31365 | 31365 | 31365 | 31365 | 31365 | |
| Fodder cultivation of land@30000/acre/hector | 30000 | 30000 | 30000 | 30000 | 30000 | 30000 | 30000 | |
| Misc, expenditure i.e. vaccine medicine and veterinary aid electricity | 30000 | 30000 | 30000 | 30000 | 30000 | 30000 | 30000 | |
| Total expenditure | 163365 | 187165 | 187165 | 187165 | 187165 | 187165 | 163365 | |
| The sale price of male Sheep @ 3800 young Male lamb | 349600 | 349600 | 349600 | 349600 | 349600 | 349600 | ||
| The sale price of female Sheep@3500Young Female ewe | 322000 | 322000 | 322000 | 322000 | 322000 | 322000 | ||
| The sale price of gunny bag | 460 | 460 | 460 | 460 | 460 | 460 | 460 | |
| Value of closing stock 100 Ewe, 4 rams, @ average 3000/adult & 102 lambs @ 1500/lamb | 465000 | |||||||
| Value of shed (10% depreciation/year) | 89280 | |||||||
| Value of equipment(20% depreciation /year) | – | – | ||||||
| Total | 460 | 672060 | 672060 | 672060 | 672060 | 672060 | 1226340 | |
| Gross profit | -162905 | 484895 | 484895 | 484895 | 484895 | 484895 | 1062975 | |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | |
| Capital Costs | 873600 | ||||||
| Recurring Cost | 163365 | 187165 | 187165 | 187165 | 187165 | 187165 | 163365 |
| Total Costs | 1036965 | 187165 | 187165 | 187165 | 187165 | 187165 | 163365 |
| Benefit | 460 | 672060 | 672060 | 672060 | 672060 | 672060 | 1226340 |
| Net Benefit | -1036505 | 484895 | 484895 | 484895 | 484895 | 484895 | 1062975 |
| Sl no | Financial indicators | Estimated value | Preferred value |
| 1 | Net Present Worth (NPW | 961384.24 | Should be +ve |
| 2 | Benefit-Cost Ratio(BCR) | 1.6:1 | >1 |
| 3 | Internal Rate of return (IRR) | 29.3 | >15% |
| 4 | Debt Service Coverage Ratio (DSCR) | 2.67 | >1.5 |
Loan Repayment for 100 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 100 sheep.
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