PATHARDI CLUSTER

economics of milk production (Rs.per litre)

crossbreed indegenous
cows buffaloes cows
Paid Out Cost
Recurring Cost
concentrate 3.20 3.29 4.35
health care 0.1 0.04 0.11
total recurring cost (A) 3.30 3.33 4.46
Implicit Cost
green fodder 0.61 0.99 1.01
dry fodder 2.59 3.15 2.98
cost of labour 0.60 0.90 1.98
Total Implicit Cost (B) 3.79 5.04 5.97
Total Paid Out Cost (C )=A+B 7.10 8.37 10.43
Investment Cost
cost of milch animal 0.50 0.90 0.42
cost of cattle shed 0.07 0.11 0.23
cost of equipment & material 0.01 0.02 0.04
total investment cost (D) 0.58 1.03 0.69
Total Cost (E)=C+D 7.68 9.40 11.12
Income except sale of milk
income from cow dung 0.76 1.15 1.26
income from sale of calf 0.13 0.16 0.42
total income except sale of milk (F) 0.89 1.32 1.68
Net Cost (G)=E-F 6.79 8.09 9.43
Revenue from milk per litre 7.80 10.20 7.80
Net income 1.01 2.11 -1.63
milk per lactation in litres 1972 1517 594

Health exp allocation bullocks

average no. in each household 2 1.7 1.47 2
weights assigned 0.45 0.15 0.15 0.15
total wieght 0.9 0.26 0.22 0.3 1.68
health exp on each animal 201.43 67.14 67.14 67.14 402.86
health cost per litre 0.10 0.04 0.11

Cattle shed cost allocation bullocks

average no. in each household 2 1.7 1.47 2 7.17
average exp per animal 139.47 162.72 139.47 139.47
cattle shed cost per litre 0.07 0.11 0.23

Equipment & Material cost allocation

average no. in each household 2 1.7 1.47 2 7.17
average exp per animal 23.71 27.66 23.71 23.71
equipment & Material cost per liter 0.01 0.02 0.04

Dry fooder cost allocation

dry fooder consumption in bunches 8 6.42 2.77
dry fodder cost per liter 2.59 3.15 2.98

note: cost of 1bunch cpmes outRs. 1.75

Green fodder cost allocation

quantity fed 20 25 10
note: 1kg costs Rs 0.5
Cost of Labour
labour hour per household is 5 hours daily
labour hour per animal =5/7.45 =0.67hrs
implicit cost is 75% of Rs. 6= Rs 4.8

cost of milch animal

mean milk capacity in flush 9.95 6.83 5
market rate in sample village 11940 13660 3000
no. of lactation per animal 12 10 12
cost of cattle per lactation 995 1366 250
cost per liter 0.50 0.90 0.42
1000

170
 SHIRUR CLUSTER
economics of milk production (Rs.per litre)
crossbreed indegenous
cows buffaloes cows
Paid Out Cost
Recurring Cost
concentrate 3.09 5.08 4.74
health care 0.08 0.05 0.13
total recurring cost (A) 3.17 5.13 4.87
Implicit Cost
green fodder 0.93 2.06 2.10
dry fodder 1.27 3.24 4.15
cost of labour 0.44 0.90 1.98
Total Implicit Cost (B) 2.64 6.20 8.23
Total Paid Out Cost (C )=A+B 5.81 11.33 13.10
Investment Cost
cost of milch animal 0.51 0.9 0.42
cost of cattle shed 0.05 0.1 0.23
cost of equipment & material 0.01 0.02 0.04
total investment cost (D) 0.57 1.02 0.69
Total Cost (E)=C+D 6.38 12.35 13.79
Income except sale of milk
income from cow dung 0.56 1.15 1.26
income from sale of calf 0.09 0.16 0.42
total income except sale of milk (F) 0.65 1.32 1.68
Net Cost (G)=E-F 5.72 11.03 12.10
Revenue from milk per litre 7.80 10.20 7.80
Net income 2.08 -0.83 -4.30
milk per lactation in litres 2689 1519 594

Health exp allocation bullocks

average no. in each household 3 1.5 0.95 2 7.45
weights assigned 0.45 0.15 0.15 0.15
total wieght 1.35 0.23 0.14 0.3 2.02
health exp on each animal 223.05 74.35 74.35 74.35
health cost per litre 0.08 0.05 0.13

Cattle shed cost allocation bullocks

average no. in each household 3 1.5 0.95 2 7.45
average exp per animal 134.23 156.60 134.23 134.23
cattle shed cost per litre 0.05 0.10 0.23

Equipment & Material cost allocation

average no. in each household 3 1.5 0.95 2 7.45
average exp per animal 22.82 26.62 22.82 22.82
equipment & Material cost per liter 0.01 0.02 0.04

Dry fooder cost allocation

dry fooder consumption in bunches 6.59 6.62 3.86
dry fodder cost per liter 1.57 3.24 4.15

note: cost of 1bunch comes outRs. 1.75

Green fodder cost allocation

quantity fed 20 25 10
note: 1kg costs Rs 0.5

Cost of Labour
labour hour per household is 5 hours daily
labour hour per animal =5/7.45 =0.67hrs
implicit cost is 75% of Rs. 6= Rs 4.8

cost of milch animal

mean milk capacity in flush 13.58 6.84 5
market rate in sample village 16296 13680 3000
no. of lactation per animal 12 10 12
cost of cattle per lactation 1358 1368 250
cost per liter 0.51 0.90 0.42
 s

1000

1000

170
 Cost of khoa making per kg

Benefit
Revenue from sale of khoa 60

Cost of milk 40
Paid out cost
Transportation 7.14
Utensil 0.21
Total paid out cost 7.35
Cost of 1 kg of khoa 47.35

Implicit cost of labor 9.6

Economic cost 56.95

Net economic benefit 3.05

 PROPOSAL FOR DAIRY LIVESTOCK LOAN
economics of milk production (Rs.per litre)
PATHARDI CLUSTER
crossbreed
cows buffaloes
milk per lactation in litres 1972 1517
total recurring cost (A) 3.30 3.33
total investment cost (B) 0.58 1.03
Total Paid Out Cost (C )=A+B 3.88 4.36
cost of milch animal 0.5 0.9
insurance cost 0.20 0.26
Net paid out cost 3.58 3.72
Revenue from milk per litre 7.80 10.20
Net income from milk per litre 4.22 6.48
Annual income from milk per animal 8316.24 9824.58

Loan Amount 20000

monthly
Repayment Period (n) installment 36
15% per annum
1.25% per month
Rate of Interest ( r ) r 0.01
PVIFA 28.84727
Monthly Installment in Rs 693.31
Total Yearly Payment 8319.68