SHEEP FARM PROJECT REPORT 100 PLUS FOUR

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:– 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 the government of India scheme Integrated Development Of Small Ruminants And Rabbits (IDSRR-EDEG). Subsidy ceiling is Rs250000/- for a sheep farm. A farmer from Odisha can avail subsidy up to rupees fifty lakhs for sheep farming under Mukhyamantri Krushi Udyoga Yojana(MKUY). 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 rearingSemi-intensive
No. of Ram4
No. of Ewes100
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 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. ParticularsYear
IIIIIIIVVVIvii
Lambing/year01.51.51.51.51.51.5
 A.Opening Stock – Adult Rams4444444
Adult Ewe purchased stock100100100100100100100
 B.No of lamb born858585858585
Male Lambs102102102102102102
Female Lambs102102102102102102
 C.Mortality
Male Lambs101010101010
Female Lambs101010101010
 D.Sale of young lamb
Male0929292929292
Female0929292929292
A-Capital cost(Amount in Rs.)
Construction low cost  Shed for 100Ewes  @ 10sq.ft/adult Ewe(Rs.200/sq.ft200000
 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/sqft81600
Equipment feeding trough buckets etc10000
Cost of 100 Ewes@ 4500/Ewe including insurance and transportation450000
Cost of 4 Ram@6500/buck                           26000
Borewell with a pump set90000
TOTAL CAPITAL COST                                                  873600
Working Capital
Wages for one  labour @6000/month  for 1 year72000
Cost of concentrate feed for 100 Ewes @6.75kg/month/Ewe for two months i.e  kg@18/kg23400
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/kg6885
Fodder cultivation in 1.hector  of land30000
Misc, expenditure i.e.  vaccine medicine and veterinary aid and electricity30000
Contingency13035
Total Working Capital                                                         176400
TOTAL PROJECT COST              1050000
Bank loan @75% of project cost787500
Margin money @25% of the project cost    262500
CASH FLOWProject period (year) Amount in Rs.
iiiiiiivvvivii
Wages for  labour @200/day for 1 year72000720007200072000720007200072000
Cost of insurance 5% of animal costIncluded238002380023800238002380023800
Cost of concentrate feed for buck Ewes and lambs31365313653136531365313653136531365
Fodder cultivation  of land@30000/acre/hector30000300003000030000300003000030000
Misc, expenditure i.e.  vaccine medicine and veterinary aid electricity30000300003000030000300003000030000
Total expenditure163365187165187165187165187165187165163365
The sale price of male Sheep @ 3800 young Male lamb349600349600349600349600349600349600
The sale price of female Sheep@3500Young Female ewe322000322000322000322000322000322000
The sale price of gunny bag460460460460460460460
Value of closing stock 100 Ewe,  4 rams, @ average 3000/adult & 102 lambs @ 1500/lamb465000
Value of shed (10% depreciation/year)89280
Value of equipment(20% depreciation /year) –
Total4606720606720606720606720606720601226340
Gross profit-1629054848954848954848954848954848951062975
 1234567
Capital Costs873600
Recurring Cost163365187165187165187165187165187165163365
Total Costs1036965187165187165187165187165187165163365
Benefit4606720606720606720606720606720601226340
Net Benefit-10365054848954848954848954848954848951062975
Sl noFinancial indicatorsEstimated valuePreferred value
1Net Present Worth (NPW961384.24Should be +ve
2Benefit-Cost Ratio(BCR)1.6:1>1
3Internal Rate of return (IRR)29.3>15%
4Debt Service Coverage Ratio (DSCR)2.67>1.5

Bank loan -787500 Grace period  = one year , Loan amount at the end of one year =787500+94500=882000

S.NoMonthly InstallmentInterestPrincipal Balance
0882000
11724388208423873577
21724387368508865069
31724386518593856477
41724385658679847798
51724384788765839033
61724383908853830180
71724383028941821238
81724382129031812208
91724381229121803086
101724380319212793874
111724379399305784569
121724378469398775172
131724377529492765680
141724376579586756094
151724375619682746412
161724374649779736632
171724373669877726755
181724372689976716780
1917243716810075706704
2017243706710176696528
2117243696510278686250
2217243686210381675869
2317243675910485665385
2417243665410589654795
2517243654810695644100
2617243644110802633298
2717243633310910622387
2817243622411019611368
2917243611411130600238
3017243600211241588997
3117243589011353577644
3217243577611467566177
3317243566211581554596
3417243554611697542899
3517243542911814531084
3617243531111932519152
3717243519212052507100
3817243507112172494928
3917243494912294482634
4017243482612417470217
4117243470212541457676
4217243457712667445009
4317243445012793432216
4417243432212921419295
4517243419313050406245
4617243406213181393064
4717243393113313379751
4817243379813446366305
4917243366313580352725
5017243352713716339009
5117243339013853325156
5217243325213992311164
5317243311214132297033
5417243297014273282760
5517243282814416268344
5617243268314560253784
5717243253814705239079
5817243239114852224226
5917243224215001209225
6017243209215151194074
6117243194115303178772
6217243178815456163316
6317243163315610147706
6417243147715766131940
6517243131915924116016
661724311601608399933
67172439991624483689
68172438371640667283
69172436731657050712
70172435071673633976
71172433401690417073
7217243171170730

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