Dairy Farming(four cows unit)

 PROJECT REPORT FOR DAIRY FARM WITH FOUR CROSS-BRED /INDIGENOUS DESCRIPTIVE DAIRY BREED COWS

 Dairy farming is a profitable business. It provides an excellent opportunity for self employment of unemployed youth. It   is also an important source of income generation to small/marginal farmers and agricultural labourers. India is the largest milk producer of the world. The demand of milk & milk product is increasing rapidly There is immense scope of dairy farming in our country. The increasing cost of feed ingredients and its seasonal variability  can be reduced by undertaking fodder cultivation. Back ended capital subsidy 25% for  general category  (33.33% for SC/ST beneficiaries) is available for this project for details visit our Subsidy(DEDS) page.

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.

This project report is based on following assumption:-

  • Freshly calved crossbred/indigenous descriptive  (dairy Breed)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 0.75 to one  acre of irrigated land is prerequisite for the project, in absence of irrigated land provision of well and pump set has to be included in the project report.
  • Cost of labour has not been taken into consideration since full time labour is not required for the small unit. Family labour will be utilized for maintenance of the dairy farm.
  • Cow dung produced will be utilized as Manure for fodder cultivation.
  • Cost of rearing calves not considered as it will be repealed by their sale
  • In case of death of cow new cow will be purchased from insurance claim money.

·         The scheme will be successful on the above guidelines if run by the dairy farmer on scientific lines.

Housing for cows

Floor – it should be Pucca, smooth strong 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 or wall on sides, End wall should be solid made of bricks.

Roof it should be 14-16ft. high at the center and 8-9 ft. high on the side wall .there should be   hang over 3ft  beyond wall to prevent rain water  entering cow shade. Roof may be of 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

4

Cost of Animal (Rs./animal) including transportation

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

500

560

500

420

420

500

b)

Second batch

360

420

420

420

420

420

 

Total

860

980

920

840

840

920

ii)

Dry Days

 

 

 

 

 

 

a)

First batch

220

160

220

300

300

220

b)

Second batch

-

300

300

300

300

300

 

Total

220

460

520

600

600

520

 

Project cost and bank loan

Cost. In Rs.

          I.             

Capital cost

 

         II.             

Cow shed for 4 cows 40sq.ft/cow @200/sqft 

32000

        III.             

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

16000

        IV.             

Cost of 2 CB cows with minimum average 10 liter milk 

 yield /day @27000 with transportation

108000

         V.             

Cost of one chaff cutter hand operated

10000

        VI.             

Cost of dairy appliances @ 1000/cow

4000

       VII.             

Cost of electrification of dairy farm with two electric fans

10000

 

Total

18000

Recurring cost to be capitalized

  1.  

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

 per feed chart

3180

  1.  

Cost of insurance  2 animals @5% of animal cost

5400

  1.  

Cost of fodder cultivation in one  acres of land

10000

  1.  

Cost of medicine vaccine, electricity for the first  cow

1500

  1.  

Total recurring expenditure

20080

 

  1.  

TOTAL PROJECT COST

                                                                                                Say

200080

200000

  1.  

Margin money 10% of project cost

20000

  1.  

Bank loan 90% of project cost

180000

Item

Particulars

.

 

Project period

 

 

1

2

3

4

5

6

  1.  

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

45580

51940

48760

44520

44520

48760

  1.  

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

4840

10120

11440

13200

13200

11440

  1.  

Medicine vaccine veterinary aid

3000

3000

3000

3000

3000

3000

  1.  

Insurance @5% of animal cost /year

5400

5400

5400

5400

5400

5400

  1.  

Cost of fodder cultivation

10000

10000

10000

10000

10000

10000

  1.  

other miscellaneous expenditure

2000

2000

2000

2000

2000

2000

  1.  

Total

70820

82460

80600

78120

78120

80600

 

INCOME

 

 

 

 

 

 

              I.       

Sale  of milk @Rs.21/liter during lactation days with average milk yield /10  liter/day

180600

205800

193200

176400

176400

193200

            II.       

Sale of gunny bags

640

780

740

700

700

740

         III.       

Manure will be utilized in own farm

 

 

 

 

 

 

          IV.       

Value of closing stock of 3cows

(Depreciation on animal cost @10%/year)

 

 

 

 

 

43200

            V.       

Value of building

(Depreciation on building@10%/year)

 

 

 

 

 

19200

          VI.       

Value of equipments

(Depreciation on equipments @15%/year)

 

 

 

 

 

2400

       VII.       

Total income

181240

206580

193940

177100

177100

258740

     VIII.       

Gross profit

110420

124120

113340

98980

98980

178140

 

1

2

3

4

5

6

Capital Costs

180000

 

 

 

 

 

Recurring Cost

70820

82460

80600

78120

78120

80600

Total Costs

250820

82460

80600

78120

78120

80600

Benefit

181240

206580

193940

177100

177100

258740

Net Benefit

-69580

124120

113340

98980

98980

178140



PW Costs @ 15%

451802.18

PW Benefits @ 15%

742490.80

NPW

290688.62

B.C. Ratio

1.64:1

I.R.R. (%)

>25%

Year

Loan Outstanding

Gross Surplus

Interest

Principal

Total Repayment

Surplus

1

180000

110420

21600

20000

41600

68820

2

16000

124120

19200

40000

59200

64920

3

120000

113340

14400

30000

44400

68940

4

90000

98980

10800

30000

40800

58180

5

60000

98980

7200

30000

37200

61780

6

30000

178140

3798

30000

33798

144342


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