Dairy Project Report

3/27/2014
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Dairy farm Project Report for bank loan (two

cows unit)
PROJECT REPORT FOR DAIRY FARM WITH TWO CROSS-BRED
/INDIGENOUS DESCRIPTIVE DAIRY BREED COWS
Dairy farming is a profitable business. It provides an excellent opportunity for self
employment of unemployed youth. It is also an important source of income generation
to small/marginal farmers and agricultural labourers. India is the largest milk producer
of the world. The demand of milk & milk product is increasing rapidly There is immense
scope of dairy farming in our country. The increasing cost of feed ingredients and its
seasonal variability
can be reduced by undertaking fodder cultivation. Back ended
capital subsidy 25% for general category (33.33% for SC/ST Catagory) is available for
this project for details visit our Subsidy(DEDS) page.
Before starting a dairy farm the entrepreneurs/ farmers are advised to under go training on
dairy farming. They can contact Local Animal Husbandry Department staffs/Veterinary
College/agriculture university etc. for the purpose.
They should also visit progressive dairy farmers and government/ agricultural university dairy
farm in the locality. They must check the following points before starting a dairy farm.
1.
Availability of good quality dairy breed cows in nearby livestock market
2.
Nearness of the Farm to Veterinary Hospital, Artificial Insemination
Center/livestock Aid Centers, MPCS
3.
Marketing facility of milk and milk product in non MPCS area
4.
Availability of concentrates ,fodder & medicine in that locality.
This project report is based on following assumption:Freshly calved crossbred/indigenous descriptive (dairy Breed)cows in 1st or 2nd lactation will be
purchased in two batches of one animals each at an interval of 5 to 6 months.
Availability of 0.5 acre of irrigated land is prerequisite for the project, in absence of irrigated land provision
of well and pump set has to be included in the project report.
Cost of labour has not been taken into consideration since full time labour is not required for the small
unit. Family labour will be utilized for maintenance of the dairy farm.
Cow dung produced will be utilized as Manure for fodder cultivation.
Cost of rearing calves not considered as it will be repealed by their sale
In case of death of cow new cow will be purchased from insurance claim money.
The scheme will be successful on the above guidelines if run by the dairy farmer on scientific lines.
Housing for cows

Floor it should be Pucca, smooth strong concrete cemented, impervious to moisture ,and
have slope 1 in 60 towards gutter. Plinth should be 2ft. higher than ground.
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Walls -3ft. high lengthwise brick or wall on sides, End wall should be solid made of bricks.
Roof it should be 14-16ft. high at the center and 8-9 ft. high on the side wall .there should be
hang over 3ft beyond wall to prevent rain water entering cow shade. Roof may be of
asbestos, or tile. thatched roof can replace asbestos in low cost housing.
HOUSE FOR DAIRY COW

Techno economic parameters
Type of Animal
CB Jersey Cow
Or indigenous descriptive
Milch breed
No. of Animals
Cost of Animal (Rs./animal) including transportation
27000/cow
Average Milk Yield (litre/day)
10
Floor space (sqft) per adult animal
40
Floor space (sqft) per calf
20
Cost of construction per sqft (Rs.)
200
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Cost of equipment per animal (Rs.)
1000
Cost of fodder cultivation (Rs./acre/season)
5000
Insurance premium (% per annum)
Veterinary aid/animal/ year (Rs.)
750
Cost of concentrate feed (Rs./kg)
12
Cost of dry fodder (Rs./kg)
Rate of interest (%)
12
Repayment period (years)
Selling price of milk/litre (Rs./kg)
21
Sale price of gunny bags (Rs. per bag)
10
Lactation days
280
Dry days
150
Item
FEED CHART
COST/KG
FEEDING STUFF
Rs.
During lactation period
Quantity
(kg)
Cost (Rs.)
During dry period
Quantity
(kg)
Cost (Rs.)
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3/27/2014
Concentrate feed
12
3.5
42
13
ii
Green fodder
20
Home grown
12
Home grown
iii
Dry fodder
5.5
11
10
Total
Sr.No
53
Particulars
22
Years
II
III
IV
Vi
i)
Lactation Days
a)
First batch
250
280
250
210
210
250
b)
Second batch
180
210
210
210
210
210
Total
430
490
460
420
420
460
ii)
Dry Days
a)
First batch
110
80
110
150
150
110
b)
Second batch
150
150
150
150
150
Total
110
230
260
300
300
260
Economics of dairy farming with 2 cows

Cost.
In Rs.1
4/8
3/27/2014
Project cost and bank loan

Capital cost
1.
1.
1.
Cow shed for 2 cows 40sq.ft/cow @200/sqft
16000
Calf pen for 4 calves 20 sq.ft./calf @200/sq.ft.
8000
Cost of 2 CB cows with minimum average 10 liter milk yield /day @27000
54000
with transportation
1.
1.
Cost of one chaff cutter hand operated
10000
Cost of dairy appliances @ 1000/cow
2000
Total
90000
Recurring cost to be capitalized
1.
1.
1.
1.
1.
1.
Cost of feed for first batch of one cows for one month as per feed chart
1590
Cost of insurance 2 animals @5% of animal cost
2700
Cost of fodder cultivation in 0.5 acres of land
5000
Cost of medicine vaccine, electricity for the first cow
750
Total recurring expenditure
10040
TOTAL PROJECT COST
100040
Say
Item
Particulars
100000
Project period
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3/27/2014
Feeding during
lactation period vide
yearly lactation days
and feed cost as per
chart
22790
25970
24380
22260
22260
24380
Feeding during dry

period vide dry days
and feed cost as per
feed chart enclosed
2420
5060
5720
6600
6600
5720
Medicine vaccine
veterinary aid
1500
1500
1500
1500
1500
1500
Insurance @5% of
animal cost /year
2700
2700
2700
2700
2700
2700
Cost of fodder
cultivation
5000
5000
5000
5000
5000
5000
other miscellaneous
expenditure
1000
1000
1000
1000
1000
1000
Total
35410
41230
40300
39060
39060
40300
Sale of milk
@Rs.21/liter during
lactation days with
average milk yield /10
liter/day
90300
102900
96600
88200
88200
96600
Sale of gunny bags
320
390
370
350
350
370
CASH FLOW
ANALYSIS
1.
1.
1.
1.
1.
1.
1.
INCOME
I.
II.
III.
Manure will be utilized

in own farm
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3/27/2014
IV.
Value of closing stock

of 2cows
21600
(Depreciation on animal
cost @10%/year)
V.
Value of building
9600
(Depreciation on
building@10%/year)
VI.
Value of equipments
1200
(Depreciation on
equipments
@15%/year)
VII.
VIII.
Year
Total income
90620
103290
96970
88550
88550
Gross profit
55210
62060
56670
49490
49490
Capital Costs
90000
Recurring Cost
35410
41230
40300
39060
39060
39060
Total Costs
125410
41230
40300
39060
39060
39060
Benefit
90620
103290
96970
88550
88550
129370
Net Benefit
-34790
62060
56670
49490
49490
89070
129370
89070
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3/27/2014
PW Costs @ 15%
225901.09
PW Benefits @ 15%
371245.40
NPW
145344.31
B.C. Ratio
1.64:1
I.R.R. (%)
>25
Repayment Schedule
Year
Loan
Outstanding
Gross
Surplus
Interest
Principal
Total
Repayment
Surplus
100000
55210
12000
10000
22000
33210
90000
62060
10800
15000
25800
36260
75000
56670
9000
20000
29000
27670
55000
49490
6600
15000
21600
27890
40000
49490
4800
20000
24800
24690
20000
89070
2400
20000
22400
66670
8/8

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3/27/2014

Dairy farm Project Report for bank loan (two

can be reduced by undertaking fodder cultivation. Back ended

Housing for cows

HOUSE FOR DAIRY COW

Cost of Animal (Rs./animal) including transportation

Average Milk Yield (litre/day)

Floor space (sqft) per adult animal

Floor space (sqft) per calf

Cost of construction per sqft (Rs.)

Cost of equipment per animal (Rs.)

Cost of fodder cultivation (Rs./acre/season)

Insurance premium (% per annum)

Veterinary aid/animal/ year (Rs.)

Cost of concentrate feed (Rs./kg)

Cost of dry fodder (Rs./kg)

Rate of interest (%)

Repayment period (years)

Selling price of milk/litre (Rs./kg)

Sale price of gunny bags (Rs. per bag)

During lactation period

During dry period

Economics of dairy farming with 2 cows

Project cost and bank loan

Cow shed for 2 cows 40sq.ft/cow @200/sqft

Calf pen for 4 calves 20 sq.ft./calf @200/sq.ft.

Cost of one chaff cutter hand operated

Cost of dairy appliances @ 1000/cow

Recurring cost to be capitalized

Cost of insurance 2 animals @5% of animal cost

Cost of fodder cultivation in 0.5 acres of land

Cost of medicine vaccine, electricity for the first cow

Total recurring expenditure

TOTAL PROJECT COST

Feeding during dry

Sale of gunny bags

Manure will be utilized

Value of closing stock

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