Dairy Farm

Projected Initial Investment

Description Unit No. of units Rate / Unit Total Cost

Building / Infrastructure
Shed for cows Sq. feet 75,000 - -
Shed for calves Sq. feet 5,000 - -
Silage Bunker Sq. feet 10,000 - -
Sick animal shed Sq. feet 1,000 - -
Stores for fodder & concentrate Sq. feet 1,800 - -
Stores for utensils & machinery Sq. feet 900 - -
Office block Sq. feet 900 - -
Staff room Sq. feet 2,000 - -
Wash room Sq. feet 250 - -
Contingencies (Boundry) -
-

Machinery & equipment

Milk cooling tank No. 1 4,000,000 4,000,000
Forage harvester No. - - -
Milk extraction No. 1 12,000,000 12,000,000
A.I Equipment No. 1 500,000 500,000
Generator (42 kVA) No. 2 1,500,000 3,000,000
Weighing scale No. 1 100,000 100,000
Water tank No. 3 100,000 300,000
Teat dip cups No. 3 10,000 30,000
Calf feeding system No. 10 15,000 150,000
Biogas Plant No. 2 - -
Eartags applicators 2 - -
Office Equipment -
20,080,000

Animals

Cows No. 500 325,000 162,500,000

162,500,000

Silage and Concentrate stock animals cost no of days

Silage 200 120 150 3,600,000

Concentrate 200 66 150 1,980,000
5,580,000
Cash Rs. 2,500,000

Total Initial Investment 190,660,000

Dairy Farm
Breakup of Cost

Silage cost / kg 4 4 5 6 6
Concentrate cost / kg 0 23 25 28 31
Milking Herd size 500 450 634 500 912

Year 1 Year 2 Year 3 Year 4 Year 5

Feed Cost

Silage 16,425,000 14,782,500 26,033,625 22,584,375 45,313,290

Concentrate 20,717,125 24,990,938 24,741,028 45,982,685 80,929,526
37,142,125 39,773,438 50,774,653 68,567,060 126,242,816

Labor

Farm Manager 1,200,000 1,320,000 1,452,000 1,597,200 1,756,920

Supervisor 60,000 66,000 72,600 79,860 87,846
Worker 2,400,000 3,060,000 3,570,000 3,060,000 4,590,000
3,660,000 4,446,000 5,094,600 4,737,060 6,434,766

Medical Care

Vaccination 250,000 225,000 348,700 302,500 606,936

Artificial Insemmination 1,500,000 1,350,000 2,092,200 1,815,000 4,248,552
1,750,000 1,575,000 2,440,900 2,117,500 4,855,488

Electricity & Fuel

Diesel cost 300,000 330,000 363,000 399,300 439,230

Insurance

Insurance cost 3,006,250 2,705,625 4,533,100 3,575,000 6,520,800

Repair & Maintenance

Repair & maintenance 617,590 617,590 648,470 680,893 714,938

Professional charges

Consultancy 200,000 200,000 220,000 242,000 266,200

 Training 50,000 50,000 55,000 60,500 -
250,000 250,000 275,000 302,500 266,200

Transportation

Conveyance 600,000 660,000 726,000 798,600 878,460

Depreciation @ 12% WDV

Depreciation charge 7,411,080 7,411,080 6,521,750 5,739,140 5,050,444

Assumptions:

- Year 1 costs are taken proportionately on the basis of full months cost for 4 months, half months cost for 2 month
and a quarter months cost for 1 month.

- Silage requirement per animal is approximately 25 kgs per day. However the mix of silage, concentrate and gree
fodder will depend on its milking stage.
 7
34
1314

Year 6

71,815,602
128,192,369
200,007,972

1,932,612
96,631
6,120,000
8,149,243

667,630
4,673,407
5,341,037

483,153

9,395,100

750,685

292,820
 -
292,820

966,306

4,444,390

months cost for 2 months

ge, concentrate and green

Dairy Farm
Revenue

Assumptions

Average lactation days 305 305 305 305

Average price per liter 45 47 50 52

Year 1 Year 2 Year 3 Year 4

Herd Size 500 450 634 912

Average liters / animal 15 15 18 20
Productive animals 475 428 602 867
Liters / year 2,173,125 1,955,813 3,304,541 5,287,265
Revenue / annum 97,790,625 92,412,141 163,946,530 275,430,171

Revenue from culled animals - 600,000 12,000,000 15,206,400

Revenue from calf sale - 800,000 584,000 1,013,760
97,790,625 93,812,141 176,530,530 291,650,331

Assumptions:

- Year 1 revenue is taken proportionately on the basis of full months revenue for 4 months, half months
revenue for 2 months and a quarter months revenue for 1 month.

- Approximately 30% of low productive animals will be culled at the end of every year till year 4 at a declining
rate of 10% per annum to attain a high productive herd. Culled animals will be sold at 25% less the original
cost.

Herd size at the beginning 500 50 500 634

Culled during the year - (5) (100) (127)
500 45 400 507
Purchased during the year
Calves included in herd 320 234 406
Calves sold 80 58 101

Herd size at the end 500 365 634 912

- An 80% inception rate has been applied for reproduction of herd with an assumption of 80:20 ratio of
females to males. Females will be retained while male calves will be sold.

- Productive animals include existing animals inclusive of female calves born last year and exclusive of female
calves born in the current year as the time required for calves to attain maturity is 1 years.
 305
55

Year 5

1,314
20
1,248
7,613,662
416,450,419

13,685,760
1,459,814
431,595,993

or 4 months, half months

ear till year 4 at a declining

old at 25% less the original

912
(182)
730

584
146

1,314

umption of 80:20 ratio of

ear and exclusive of female

1 years.
DAIRY FARM
NEW BORN ANIMALS:
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
New borns- Feminine (50%):
Original pu 500

From Original 120 animals: 180 144 114 92 74

From first Year generation (50% feminine) 52 41 33
From 2nd Year generation (50% feminine) 166 41 33
From 3rd Year generation (50% feminine) 175 48
From 4th Year generation (50% feminine) 188
From 5th Year generation (50% feminine)
From 6th Year generation (50% feminine)
From 7th Year generation (50% feminine)
From 8th Year generation (50% feminine)

LESS:
All 20% 50 90 72 58 46 37
Balance 450 360 288 230 184 147

Addition 103 82 65
83 66
83

TOTAL MILIKING 360 288 333 349 361

1480 138000 288000

14800 1533 3200

21013
1751.1111111111
Year 7 Year 8 Year 9 Year 10 Year 10 Year 10

27 22
26 21 17
38 31 25 20
12 9 8 6 5
103
83
49
26
5
Projection Herd

Year 0 Year 1 Year 2 Year 3

Original purchased: 500 475 428 363

Culling 5% 10% 15% 15%

From original 500 hds - calves , regular AI/bull 219 138 117
Conception NA 70% 70%
Female rate 50% 50% 50%
Calf Survivial (Mortality @ 8%) 92% 92% 92%

From Yr 1 calves, inseminate with sexed semen for first time only 188
Conception 65%
Female rate 85%
Calf Survivial (Mortality @ 8%) 92%

From Yr 2 calves, inseminate with sexed semen for first time only
Conception
Female rate
Calf Survivial (Mortality @ 8%)

From Yr 3 calves, inseminate with sexed semen for first time only
Conception
Female rate
Calf Survivial (Mortality @ 8%)

Male Calves from original herd 219 138 117

Conception NA 70% 70%
Male % 50% 50% 50%
Calf Survivial (Mortality @ 8%) 92% 92% 92%

28
Calf Survivial (Mortality @ 8%) 92%

Calf Survivial (Mortality @ 8%)

Calf Survivial (Mortality @ 8%)

Total 475 912 1,140 1,526

Milking Adult 0 475 428 582
Male Calves accumulated if not sold 219 356 502
Heifer Calves 219 356 442

Total Herd 475 912 1,140 1,526

Total Herd Minus Males 694 784 1024
52% 38% 38%
Year 4 Year 5 Assumption

309 263 culling plus mortality plus non reproductive plus abortions is 5% in Yr 1, 10% in Yr 2, then 15% each year la
15%

99 85 Regular AI at 50% for mother herd

70% 70%
50% 50%
92% 92%

86 73 Sexed Semen for first AI cycle, rest at regular AI

70% 70% Non pregnant animals carried forward to next year for conception
50% 50%
92% 92%

118 73 Sexed Semen for first AI cycle, rest at regular AI

65% 70% Non pregnant animals carried forward to next year for conception
85% 50%
92% 92%

65 Sexed Semen for first AI cycle

65%
85%
92%

99 85
70% 70%
50% 50%
92% 92%

48 41
92% 92%

48 41
92% 92%

48
92%

1,970 2,432
665 923
 697 911
608 598

1,970 2,432
1273 1521
34% 38%
in Yr 2, then 15% each year later of previous year
 Dairy Farm
Projected Profit & Loss statement

Year 1 Year 2 Year 3 Year 4

Rupees

Sale revenue 97,790,625 93,812,141 176,530,530 291,650,331

Less: Cost of goods sold
Feed cost 38,686,875 49,698,956 66,567,813 122,724,141
Labor 4,446,000 5,094,600 4,737,060 6,434,766
Medical care 1,575,000 2,440,900 2,117,500 4,855,488
Gross profit 53,082,750 36,577,684 103,108,157 157,635,936

Operating expenses

Electricity 330,000 363,000 399,300 439,230

Insurance 2,705,625 4,533,100 3,575,000 6,520,800
Repairs & maintenance 617,590 648,470 680,893 714,938
Depreciation 7,411,080 6,521,750 5,739,140 5,050,444
Transportation 660,000 726,000 798,600 878,460
Professional fees 250,000 275,000 302,500 266,200
Miscellaneous 10,000 11,000 12,100 13,310
11,984,295 13,078,320 11,507,533 13,883,381

Net profit 41,098,455 23,499,364 91,600,624 143,752,555

Balance b/f - 41,098,455 64,597,819 156,198,444

Balance c/f 41,098,455 64,597,819 156,198,444 299,950,999

 Year 5

431,595,993

194,434,390
8,149,243
5,341,037
223,671,323

483,153
9,395,100
750,685
4,444,390
966,306
292,820
14,641
16,347,095

207,324,229

299,950,999

507,275,227