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Dairyfarmprojectreport10cows
Projectreportfordairyfarmtencows
Indigenousdairybreed/crossbredcowdairyfarm
Dairyfarmingprovidesanexcellentopportunityforselfemploymentofunemployedyouth.Itisalsoanimportantsourceofincomegenerationtosmall/marginalfarmersand
agriculturallabourers.Sinceagricultureismostlyseasonal,thereisapossibilityoffindingemploymentthroughouttheyearformanypersonsthroughdairyfarming.Landless

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labourers.Thewhiterevolutionof70shadmadespectacularlandmarksinIndianmilkproductionscenario.IndiaisthelargestmilkproduceroftheworldTheincreasingcost
offeedingredientsanditsseasonalvariabilitycanbereducedbyundertakingfoddercultivation.Thisprojectreportisbasedonfollowingassumption:

Entrepreneurmustcheckthefollowingpointsbeforestartingadairyfarm.

1.Availabilityofgoodqualitydairybreedcowsinnearbylivestockmarket
2.NearnessoftheFarmtoVeterinaryHospital,ArtificialInseminationCenter/livestockAidCenters,MPCS
3.Marketingfacilityofmilkandmilkproductinthelocality4.Availabilityofconcentrates,fodder&medicineinthatlocality.

Before starting a dairy farm the entrepreneurs/ farmers are advised to undergo training on dairy farming. They can contact Local Animal Husbandry Department
staffs/VeterinaryCollege/agricultureUniversityetc.forthepurpose.

Government subsidy available for these types of project Back ended capital subsidy 25% for general category (33.33% for SC/ST beneficiaries) is available under
governmentofIndiaschemeDairyEntrepreneurshipDevelopmentScheme(DEDS.).SubsidyceilingisRs150000/forgeneralcategory&Rs200000forST/SCcategoryfor
dairy farm with ten animals.Farmer from Odisha can avail back ended capital subsidy 25% for general category (33.33% for SC/ST beneficiaries) under government of
OdishaschemePromotionOfDairyEntrepreneurship(PDE).SubsidyceilingisRs150,000/forgeneralcategory&Rs166665/forST/SCcategoryfordairyfarmwith10animals
forPDEscheme.OdishafarmercanavailsubsidyeitherunderschemePDEorDEDS.

Avail Bank loan and subsidy In order to avail bank loan & subsidy under DEDS/PDE the entrepreneur/farmers are advised to contact local animal husbandry/veterinary
officers.Animalresourcesdevelopmentdepartmentisthefacilitatordeportmentforaboveschemes.

Thisprojectreportisbasedonfollowingassumption:

1.Freshlycalvedindigenousdairybreed/crossbredcowslikeRedSindhi/Sahiwal/Gir/Rathi/Crossbredcowsin1stor2ndlactationwillbepurchasedintwobatchesoftwo
animalseachatanintervalof5to6months.

2.Availabilityof2acreofirrigatedlandisprerequisitefortheproject

3.Costoflabourhasnotbeentakenintoconsiderationsincefulltimelabourisnotrequiredforthesmallunit.Familylabourwillbeutilizedformaintanceofthedairyfarm.

4.Foddercultivationconsideredin2acreland,Twocropsconsideredperyear.

5.CowdungproducedwillbeutilizedasManureforfoddercultivation.

6.Costofrearingcalvesisnotconsideredasitwillbenullifiedbytheirsalevalue

7.Incaseofdeathcownewcowwillbepurchasedfrominsuranceclaimmoney

8.Theschemeisworkableontheaboveguidelinesifrunbythedairyfarmeronscientificlines.

Housingforcows

FloorPucca,strongconcretecemented,impervioustomoisture,andhaveslope1in60towardsgutter.Plinthshouldbe2ft.higherthanground.

Walls3ft.highlengthwisebrickwallonsides,Endwallshouldbesolidmadeofbricks.
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Roof1416ft.highatthecenterand8ft.highonthesidewall.thereshouldbehangover3ftbeyondwalltopreventrainwaterfromenteringcowshade.Roofshouldbeof
asbestos,cementasbestos,ortile.thatchedroofcanreplaceasbestosinlowcosthousing

TAILTOTAILSYSTEMOFHOUSING

ITEMS LENGTHINMETER
MANGER 0.6M
STANDINGPLACE 1.5M
GUTTER 0.4M
FEEDINGPASSAGE 1.2MONBOTHSIDE
MILKINGPLACE 1.2M
.Technoeconomicparameters
TypeofAnimal indigenousMilchbreed/CB
No.ofAnimals 10
CostofAnimal(Rs./animal) 30000/cow
AverageMilkYield(litre/day) 10
Floorspace(sqft)peradultanimal 40
Floorspace(sqft)percalf 20
Costofconstructionpersqft(Rs.) 250
Costofequipmentperanimal(Rs.) 1000
Costoffoddercultivation(Rs./acre/season) 5000
Insurancepremium(%perannum) 5
Veterinaryaid/animal/year(Rs.) 1000
Costofconcentratefeed(Rs./kg) 12
Costofdryfodder(Rs./kg) 2
Rateofinterest(%) 12
Repaymentperiod(years) 6
Sellingpriceofmilk/litre(Rs./kg) 27
Salepriceofgunnybags(Rs.perbag) 10
Lactationdays 280
Drydays 150
DAILYFEEDINGANDCOSTCHARTFORDAIRYCOWS
COST/KG Duringlactationperiod Duringdryperiod
FEEDINGSTUFF Quantity Quantity Cost
Rs. Cost(Rs.)
(kg) (kg) (Rs.)
Concentratefeed 16 4.5 72 1.5 24
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Home Home
Greenfodder 1 20 15
grown grown
Dryfodder 4 4 11 5 10
Total 28.5 83 21.5 34
Lactationchart/Drychart
Particulars Years
I II III IV V Vi
LactationDays
Firstbatch 1250 1400 1250 1050 1050 1250
Secondbatch 900 1050 1050 1050 1050 1050
Total 2150 2450 2300 2100 2100 2300
DryDays
Firstbatch 550 400 550 750 750 550
Secondbatch 750 750 750 750 750
Total 550 1150 1300 1500 1500 1300

ECONOMICSOFDAIRYFARMINGWITH10INDIGENOUSDAIRYBREEDCOWS

Projectcostandbankloan Cost.InRs.
Capitalcost
Cowshedfor10cows40sq.ft/cow@250/sqft 100000
Calfpenfor10calves20sq.ft./calf@250/sq.ft. 50000
Costof10CBcowswithminimumaverage10litermilkyield/day
300000
@30000
Costoftransportation@Rs1000/cow 10000
Costofonechaffcutterwith2HPmotor 25000
Costofdairyappliances@1000/cow 10000
Costofelectrificationwithfiveceilingfans 23000
Costofonesinglebucketmilkingmachine 27000
Total 545000
Recurringcosttobecapitalized
Costoffeedforfirstbatchofonecowsforonemonthasperfeed
12450
chart
Costofinsurance10animals@5%ofanimalcost 13500
Costoffoddercultivationin2.5acresofland 25000

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Costofmedicinevaccine,electricityforthefirstmonthforfirstcow 4000
Totalrecurringexpenditure 54950
599950SAY
TOTALPROJECTCOST
600000
Marginmoney25%ofprojectcost 150000
Bankloan75%ofprojectcost 450000
Particulars Projectperiod
CASHFLOW
1 2 3 4 5 6
ANALYSIS.
Feedingduringlactation
periodvideyearlylactation
178450 203350 190900 174300 174300 190900
daysandfeedcostasper
chart
Feedingduringdryperiod
videdrydaysandfeedcost 18700 39100 44200 51000 51000 44200
asperfeedchartenclosed
Medicinevaccine
10000 10000 10000 10000 10000 10000
veterinaryaid
Insurance@5%ofanimal
15000 15000 15000 15000 15000 15000
cost/year
Costoffoddercultivation 50000 50000 50000 50000 50000 50000
Costoflabour 60000 60000 60000 60000 60000 60000
othermiscellaneous
10000 10000 10000 10000 10000 10000
expenditure
Total 342150 387450 380100 370300 370300 380100
INCOME
Saleofmilk@Rs.27/liter
duringlactationdayswith
580500 661500 621000 567000 567000 621000
averagemilkyield/cow
liter/day
Saleofgunnybags 2100 2300 2250 2100 2100 2200
Manurewillbeutilizedin
ownfarm
Valueofclosingstockof
10cows
120000
(Depreciationonanimal
cost@10%/year)

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Valueofbuilding

(Depreciationon 60000
building@10%/year)

Valueof
equipments(Depreciation
8500
onequipments
@15%/year)
Totalincome 582600 663800 623250 569100 569100 811700
Grossprofit 240450 276350 243150 198800 198800 431600
1 2 3 4 5 6
CapitalCosts 545000
Recurring
342150 387450 380100 370300 370300 380100
Cost
TotalCosts 887150 387450 380100 370300 370300 380100
Benefit 582600 663800 623250 569100 569100 811700
NetBenefit 304550 276350 243150 198800 198800 431600
Slno Financialindicators Estimatedvalue Preferredvalue
1 NetPresentWorth(NPW 503105.16 Shouldbe+ve
2 BenefitCostRatio(BCR) 1.268:1 >1
3 InternalRateofreturn(IRR) 35.33 >15%
DebtServiceCoverage
4 2.366 >1.5
Ratio

Bankloan=450000graceperiod6monthsLoanamountattheendofgraceperiod=450000+27000=477000

Monthly
S.No Interest Principal Balance
Installment
0 477000
1 9325 4770 4555 472445
2 9325 4724 4601 467844
3 9325 4678 4647 463197
4 9325 4632 4693 458503
5 9325 4585 4740 453763
6 9325 4538 4788 448975
7 9325 4490 4836 444139
8 9325 4441 4884 439255
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8 9325 4441 4884 439255
9 9325 4393 4933 434322
10 9325 4343 4982 429340
11 9325 4293 5032 424308
12 9325 4243 5082 419226
13 9325 4192 5133 414092
14 9325 4141 5185 408908
15 9325 4089 5236 403672
16 9325 4037 5289 398383
17 9325 3984 5342 393041
18 9325 3930 5395 387646
19 9325 3876 5449 382197
20 9325 3822 5503 376694
21 9325 3767 5559 371135
22 9325 3711 5614 365521
23 9325 3655 5670 359851
24 9325 3599 5727 354124
25 9325 3541 5784 348340
26 9325 3483 5842 342498
27 9325 3425 5900 336597
28 9325 3366 5959 330638
29 9325 3306 6019 324619
30 9325 3246 6079 318539
31 9325 3185 6140 312399
32 9325 3124 6201 306198
33 9325 3062 6263 299934
34 9325 2999 6326 293608
35 9325 2936 6389 287219
36 9325 2872 6453 280766
37 9325 2808 6518 274248
38 9325 2742 6583 267665
39 9325 2677 6649 261016
40 9325 2610 6715 254301
41 9325 2543 6782 247519
42 9325 2475 6850 240668
43 9325 2407 6919 233750
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44 9325 2337 6988 226762

45 9325 2268 7058 219704
46 9325 2197 7128 212575
47 9325 2126 7200 205376
48 9325 2054 7272 198104
49 9325 1981 7344 190760
50 9325 1908 7418 183342
51 9325 1833 7492 175850
52 9325 1758 7567 168283
53 9325 1683 7643 160640
54 9325 1606 7719 152921
55 9325 1529 7796 145125
56 9325 1451 7874 137251
57 9325 1373 7953 129298
58 9325 1293 8032 121265
59 9325 1213 8113 113152
60 9325 1132 8194 104959
61 9325 1050 8276 96683
62 9325 967 8359 88324
63 9325 883 8442 79882
64 9325 799 8527 71355
65 9325 714 8612 62743
66 9325 627 8698 54045
67 9325 540 8785 45260
68 9325 453 8873 36388
69 9325 364 8962 27426
70 9325 274 9051 18375
71 9325 184 9142 9233
72 9325 92 9233 0

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