PROJECT REPORT OF A LARGE-SCALE CROSSBRED COW DAIRY FARM

PREPARED BY
Dr. Vivek M. Patil
Assistant Professor
Dept. of Livestock Production Management, Veterinary College, Bidar
Karnataka Veterinary, Animal & Fisheries Sciences University
http://sites.google.com/site/viveklpm/

A Overview
Name of the Proprietor ABHISHEK JAJU
Address Mumbai
Unit size 100
Project Cost (Rs.) 8,660,000
Bank Loan (Rs.) 0
Margin Money (Rs.) 0
Repayment period (years) 0
Loan rate of interest (%) 0

B Techno-Economic Parameters
Cost of each cow (Rs.) 25,000
Average daily milk yield of each cow (lit) 12
Sale price of milk (Rs./lit) 25
Irrigated land required for fodder production (acres) 20.00
Cost of construction of cow sheds (Rs/sq.ft.) 400
Cost of construction of young stock sheds (Rs/sq.ft.) 250
Cost of construction of store rooms (Rs/sq.ft.) 200
Cost of production/purchase of green fodder (Rs/kg) 0.20
Cost of production/purchase of dry fodder (Rs/kg) 2.00
Cost of concentrate feed (Rs/kg) 13.00
Cost of veterinary aid per animal per year (Rs.) 1000
Cost of electricity and water per animal per year
(Rs.) 1000
Rate of livestock insurance premium (%) 4
Annual wages of each farm labourer (Rs.) 6,000
Sale price of empty livestock feed gunny bags (Rs.) 8.00
Expenditure on rearing of calves will be offset by the income
realized from their sale.
Heifers will be retained on the farm as replacement stock.
Farmyard manure shall be used for fertilizing the fodder plots.

C Lactation Chart
(cows are purchased in 2 batches at an interval of 5-6 months)
Year 1 Year 2 Year 3 Year 4 Year 5
No. of
in milk dry in milk dry in milk dry in milk dry in milk dry
animals
First Batch 50 15000 3250 15000 3250 15000 3250 15000 3250 15000 3250
Second Batch 50 9000 0 15000 3250 15000 3250 15000 3250 15000 3250
Total (days) 24000 3250 30000 6500 30000 6500 30000 6500 30000 6500

D Feed and Fodder Daily Requirement Year 1 Year 2 Year 3 Year 4 Year 5
Rate/kg in milk dry in milk dry in milk dry in milk dry in milk dry in milk dry
Green fodder 0.20 32.00 27.00 153,600 17,550 192,000 35,100 192,000 35,100 192,000 35,100 192,000 35,100
Dry fodder 2.00 4.25 7.25 204,000 47,125 255,000 94,250 255,000 94,250 255,000 94,250 255,000 94,250
Concentrates 13.00 5.00 1.00 1,560,000 42,250 1,950,000 84,500 1,950,000 84,500 1,950,000 84,500 1,950,000 84,500
Total (Rs) 1,917,600 106,925 2,397,000 213,850 2,397,000 213,850 2,397,000 213,850 2,397,000 213,850

E Investment Cost
Specifications Phy. units Unit cost Total
Cost of animals 100 25000 2500000
Construction of cow shed sq. ft. 8000 400 3200000
Construction of young stock sheds sq. ft. 4000 250 1000000
Construction of stores/misc rooms sq. ft. 1000 200 200000
Cost of milking equipment 1 set 1000000 1000000
Cost of liquid milk storage equipment 1 set 250000 250000
Cost of fodder cutting equipment 1 set 200000 200000
Cost of standby power supply 1 set 150000 150000
Cost of misc. equipment 1 set 100 500 50000
Initial fodder cultivation cost acres 20 3000 60000
Misc. expenses 100 500 50000
Total 8,660,000

F Cash Flow Analysis Years

I II III IV V
1 Costs
a) Capital cost 8,660,000
b) Recurring cost
Feeding during lactation period 1,917,600 2,397,000 2,397,000 2,397,000 2,397,000
Feeding during dry period 106,925 213,850 213,850 213,850 213,850
Veterinary aid 100,000 100,000 100,000 100,000 100,000
Cost of electricity & water 100,000 100,000 100,000 100,000 100,000
Insurance 100,000 100,000 100,000 100,000 100,000
Labour wages 78,000 78,000 78,000 78,000 78,000
Total 11,062,525 2,988,850 2,988,850 2,988,850 2,988,850

2 Benefits
Sale of milk 7,200,000 9,000,000 9,000,000 9,000,000 9,000,000
Sale of gunny bags 19,720 25,040 25,040 25,040 25,040
Depreciated value of buildings 0 0 0 0 3,300,000
Depreciated value of equipments 0 0 0 0 825,000
 Closing stock value 0 0 0 0 1,250,000
Total 7,219,720 9,025,040 9,025,040 9,025,040 14,400,040

3 DF @ 10% 0.91 0.83 0.75 0.68 0.62

4 Discounted Costs @ 10% 10,056,841 2,470,124 2,245,567 2,041,425 1,855,841 18,669,798
5 Discounted Benefits @ 10% 6,563,382 7,458,711 6,780,646 6,164,224 8,941,292 35,908,254
6 NPW @ 10% 17,238,457
7 BCR @ 10% 1.92
8 DF @ 50% 0.67 0.44 0.30 0.20 0.13
9 Net Benefits -3,842,805 6,036,190 6,036,190 6,036,190 11,411,190
10 Discounted Net Benefits @ 50% -2,561,870 2,682,751 1,788,501 1,192,334 1,502,708 4,604,424
11 IRR > 50%

G Repayment Schedule
Gross Equated
Year Income Expenses Annual Net Surplus
Surplus Installment
I 7,219,720 2,402,525 4,817,195 0 4,817,195
II 9,025,040 2,988,850 6,036,190 0 6,036,190
III 9,025,040 2,988,850 6,036,190 0 6,036,190
IV 9,025,040 2,988,850 6,036,190 0 6,036,190
V 9,025,040 2,988,850 6,036,190 0 6,036,190

Capital Recovery Factor 0.00

Note :
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Disclaimer :
The data provided in the Project Report is for reference purposes and uses standard assumptions. For customized Project Reports please contact the
author or your nearest Veterinary Doctor.