DAIRY FARMING PROJECT REPORT (TWENTY CROSS-BRED COWS)

PROJECT REPORT FOR DAIRY FARM WITH TWENTY  CROSS-BRED COWS

Dairy farming is a profitable business but, 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.

(Government of Orissa assistance in shape of Capital Investment Subsidy (CIS) up to 33% of the capital cost (excluding cost of land) subject to a maximum limit of Rs. 25.00 Lakhs  is available for Odisha entrepreneurs)          

  1) General Male:@ 25% of Capital Investment excluding cost of land Max. Up to Rs. 25.00 Lakhs   

  2) SC/ST/Women / Graduates in Agril and allied discipline @ 33% of Capital Investment excluding cost of land Max. Up to Rs. 25.00 Lakhs

This project report is based on following assumption:-

  • Freshly calved crossbred/indigenous descriptive cows in 1st or 2nd lactation will be purchased in two batches of two animals each at an interval of 5 to 6 months.
  • Availability of  4 acre of  cultivable land is prerequisite for the project.
  • Fodder cultivation considered in four  acres land ,two crops  per year.
  • Cow dung produced will be utilized as Manure for fodder cultivation.
  • Cost of rearing calves not considered as it will be nullified by their sale value
  •     In case of death of animal new animal will be purchased from insurance claim money
  •  The scheme is workable on the above guidelines if run by the dairy farmer on scientific lines

Housing for cows

Floor –Pucca, non slippery concrete cemented, impervious to moisture ,and have slope 1 in 60 towards gutter. Plinth should be 2ft. higher than ground.

 Walls-3ft. high lengthwise brick wall on sides, End wall should be solid made of bricks.

Roof– 14-16ft. high at the center and 8ft. high on the side wall .there should be   hang over 3ft  beyond wall to prevent rain water from entering cow shade. Roof should be of asbestos, cement asbestos, or tile. thatched  roof can replace asbestos in low cost housing.


. Techno economic parameters

 

Type of Animal

CB Jersey Cow

Or indigenous descriptive

Milch breed

No. of Animals

20

Cost of Animal (Rs./animal)

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

Cost of equipment per animal (Rs.)

1000

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

5000

Insurance premium (% per annum)

5

Veterinary aid/animal/ year (Rs.)

750

Cost of concentrate feed (Rs./kg)

12

Cost of dry fodder (Rs./kg)

1

Rate of interest (%)

12

Repayment period (years)

6

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

21

Sale price of gunny bags (Rs. per bag)

10

Lactation days

280

Dry days

150

DAILY FEEDING AND COST CHART FOR DAIRY COWS

Item

FEEDING STUFF

COST/KG

Rs.

During lactation period

During dry period

Quantity (kg)

Cost (Rs.)

Quantity (kg)

Cost (Rs.)

i

Concentrate feed

12

3.5

42

1

13

ii

Green fodder

1

20

Home grown

12

Home grown

iii

Dry fodder

2

5.5

11

5

10

 

Total

 

 

53

 

22




Lactation chart/Dry chart

Sr.No

Particulars

 

 

Years

 

 

 

 

I

II

III

IV

V

Vi

i)

Lactation Days

 

 

 

 

 

a)

First batch

2500

2800

2500

2100

2100

2500

b)

Second batch

1800

2100

2100

2100

2100

2100

 

Total

4300

4900

4600

4200

4200

4600

ii)

Dry Days

 

 

 

 

 

 

a)

First batch

550

400

550

750

750

550

b)

Second batch

0

1500

1500

1500

1500

1500

 

Total

1100

2300

2600

3000

3000

2600

 

ECONOMICS OF DAIRY FARMING WITH 20 CB COWS

 

Project cost and bank loan

Cost. In Rs.

  1.  

Capital cost

 

  1.  

Cow shed for 20cows 40sq.ft/cow @200/sqft

160000

  1.  

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

80000

  1.  

Cost of 20 CB cows with minimum average 10 liter milk y

ield /day @27000 with transportation

540000

  1.  

Cost of one chaff cutter power operated  

50000

  1.  

Cost of dairy appliances @ 1000/cow

20000

  1.  

Cost of electrification with  10 ceiling fans

40000

  1.  

A borewell with submersible pump set

65000

  1.  

Cost of double  bucket milking machine

60000

 

Total

1015000

Recurring cost to be capitalized

  1.  

Cost of feed for first batch of  one cows for one month as per feed chart

15900

  1.  

Cost of insurance  20 animals @5% of animal cost

27000

  1.  

Cost of fodder cultivation in 4 acres of land  for first crop

20000

  1.  

Cost of medicine vaccine, electricity for the first month  for first  cow

7000

  1.  

Contingency

3600

  1.  

Total recurring expenditure

73000

  1.  

TOTAL PROJECT COST                                                                                            Say

108800

  1.  

Bank loan 85% of project cost

924800

  1.  

Margin money 15% of project cost

163200

Item

Particulars

Project period

 

CASH FLOW ANALYSIS.

 

1

2

3

4

5

6

  1.  

Feeding during lactation period vide yearly lactation days and feed cost as per chart

227900

259700

243800

222600

222600

243800

  1.  

Feeding during dry period vide dry days and feed cost as per feed chart enclosed

24200

50600

57200

66000

66000

57200

  1.  

Medicine vaccine veterinary aid

15000

15000

15000

15000

15000

15000

  1.  

Insurance @5% of animal cost /year

27000

27000

27000

27000

27000

27000

  1.  

Cost of fodder cultivation

40000

40000

40000

40000

40000

40000

  1.  

Cost of  two labour

72000

72000

72000

72000

72000

72000

  1.  

other miscellaneous expenditure

10000

10000

10000

10000

10000

10000

  1.  

Total

416100

474300

465000

452600

452600

465000

 

INCOME

 

 

 

 

 

 

              I.       

Sale  of milk @Rs.21/liter during lactation days with average milk yield /cow  liter/day

903000

1029000

966000

882000

882000

966000

            II.       

Sale of gunny bags

3200

3900

3700

3500

3500

3200

         III.       

Manure will be utilized in own farm

 

 

 

 

 

 

          IV.       

Value of closing stock of 20 cows

(Depreciation on animal cost @10%/year)

 

 

 

 

 

216000

            V.       

Value of building

(Depreciation on building@10%/year)

 

 

 

 

 

112000

          VI.       

Value of equipments

(Depreciation on equipments @15%/year)

 

 

 

 

 

16500

       VII.       

Total income

906200

1032900

969700

885500

885500

1313700

     VIII.       

Gross profit

490100

558600

504700

432900

432900

848700

Calculation of BCR and IRR

 

1

2

3

4

5

6

Capital Costs

1015000

 

 

 

 

 

Recurring Cost

416100

474300

465000

452600

452600

465000

Total Costs

1431100

474300

465000

452600

452600

465000

Benefit

906200

1032900

969700

885500

885500

1313700

Net Benefit

-524900

558600

504700

432900

432900

848700

PW Costs @ 15%

2593648.81

 

PW Benefits @ 15%

3721100.55

NPW

1127451.73

B.C. Ratio

1.43:1

I.R.R. (%)

>25%

Repayment schedule

Year

Loan Outstanding

Gross Surplus

Interest

Principal

Total Repayment

Surplus

1

924800

490100

110976

124800

235776

254324

2

800000

558600

96000

150000

246000

312600

3

650000

504700

78000

150000

228000

276700

4

500000

432900

60000

150000

210000

222900

5

350000

432900

42000

200000

242000

190900`

6

150000

848700

18000

150000

168000

680700


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