PROJECT REPORT FOR
DAIRY FARM WITH EIGHT 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
five animals each at an interval of 5 to 6 months.
- Availability of 2 acres 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.
- 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- Cost of rearing calves not considered as it will be repealed by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.
|
ITEMS
|
LENGTH IN METER
|
|
MANGER
|
0.6M
|
|
STANDING PLACE
|
1.5M
|
|
GUTTER
|
0.4M
|
|
FEEDING PASSAGE
|
1.2M
|
|
MILKING PLACE
|
1.2M
|
|
Techno economic parameters
|
|
|
Type of Animal
|
CB Jersey Cow
Or indigenous descriptive
Milch breed
|
|
No. of Animals
|
8
|
|
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
|
|
Sr.No
|
Particulars
|
|
|
Years
|
|
|
|
|
|
|
I
|
II
|
III
|
IV
|
V
|
Vi
|
|
i)
|
Lactation
Days
|
|
|
|
|
|
|
|
a)
|
First
batch
|
1000
|
1120
|
1000
|
840
|
840
|
1000
|
|
b)
|
Second
batch
|
720
|
840
|
840
|
840
|
840
|
840
|
|
|
Total
|
1720
|
1960
|
1840
|
1680
|
1680
|
1840
|
|
ii)
|
Dry
Days
|
|
|
|
|
|
|
|
a)
|
First
batch
|
440
|
320
|
440
|
600
|
600
|
440
|
|
b)
|
Second
batch
|
-
|
600
|
600
|
600
|
600
|
600
|
|
|
Total
|
440
|
920
|
1040
|
1200
|
1200
|
1040
|
|
|
Project cost and bank loan
|
Cost. In Rs.
|
-
|
Capital cost
|
|
-
|
Cow
shed for 8 cows 40sq.ft/cow @200/sqft
|
64000
|
-
|
Calf
pen for 4 calves 20 sq.ft./calf @200/sq.ft.
|
32000
|
-
|
Cost
of 8 CB cows with minimum average 10 liter milk yield /day @27000 with
transportation
|
216000
|
-
|
Cost
of one chaff cutter hand operated power operated 2 Hp
|
25000
|
-
|
Cost
of dairy appliances @ 1000/cow
|
8000
|
-
|
Electrification
of the dairy farm with four ceiling
fan
|
15000
|
-
|
Cost
of one single bucket milking machine
|
30000
|
|
|
Total
|
390000
|
|
Recurring cost to be capitalized
|
-
|
Cost of feed for first batch
of one cows for one month as per feed
chart
|
6360
|
-
|
Cost of insurance 8 animals @5% of animal cost
|
10800
|
-
|
Cost of fodder cultivation
in 2 acres of land
|
20000
|
-
|
Cost of medicine vaccine,
electricity for the first month for
first cow
|
3000
|
-
|
Total
recurring expenditure
|
40160
|
-
|
TOTAL
PROJECT COST
Say
|
430040
430000
|
-
|
Margin
money 10% of project cost
|
43000
|
-
|
Bank
loan 90% of project cost
|
387000
|
|
Item
|
Particulars
|
Project period
|
|
|
|
1
|
2
|
3
|
4
|
5
|
6
|
-
|
Feeding
during lactation period vide yearly lactation days and feed cost as per chart
|
91160
|
103880
|
97520
|
89040
|
89040
|
97520
|
-
|
Feeding
during dry period vide dry days and feed cost as per feed chart enclosed
|
9680
|
20240
|
22880
|
26400
|
26400
|
22880
|
-
|
Medicine
vaccine veterinary aid
|
6000
|
6000
|
6000
|
6000
|
6000
|
6000
|
-
|
Insurance
@5% of animal cost /year
|
10800
|
10800
|
10800
|
10800
|
10800
|
10800
|
-
|
Cost
of fodder cultivation
|
20000
|
20000
|
20000
|
20000
|
20000
|
20000
|
-
|
Cost
of labour
|
36000
|
36000
|
36000
|
36000
|
36000
|
36000
|
-
|
other
miscellaneous expenditure
|
4000
|
4000
|
4000
|
4000
|
4000
|
4000
|
-
|
Total
|
177640
|
200920
|
197200
|
192240
|
192240
|
197200
|
|
|
INCOME
|
|
|
|
|
|
|
|
I.
|
Sale
of milk @Rs.21/liter during lactation
days with average milk yield /cow
liter/day
|
361200
|
411600
|
386400
|
352800
|
352800
|
386400
|
|
II.
|
Sale
of gunny bags
|
1280
|
1560
|
1480
|
1400
|
1400
|
1480
|
|
III.
|
Manure
will be utilized in own farm
|
|
|
|
|
|
|
|
IV.
|
Value
of closing stock of 8 cows
(Depreciation
on animal cost @10%/year)
|
|
|
|
|
|
|
|
V.
|
Value
of building
(Depreciation
on building@10%/year)
|
|
|
|
|
|
38400
|
|
VI.
|
Value
of equipments
(Depreciation
on equipments @15%/year)
|
|
|
|
|
|
7800
|
|
VII.
|
Total
income
|
362480
|
413160
|
387880
|
354200
|
354200
|
434080
|
|
VIII.
|
Gross
profit
|
184840
|
212240
|
190680
|
161960
|
161960
|
236880
|
|
|
1
|
2
|
3
|
4
|
5
|
6
|
|
Capital Costs
|
390000
|
|
|
|
|
|
|
Recurring Cost
|
177640
|
200920
|
197200
|
192240
|
192240
|
197200
|
|
Total Costs
|
567640
|
200920
|
197200
|
192240
|
192240
|
197200
|
|
Benefit
|
362480
|
413160
|
387880
|
354200
|
354200
|
434080
|
|
Net Benefit
|
-205160
|
212240
|
190680
|
161960
|
161960
|
236880
|
|
PW Costs @ 15%
|
1065932.69
|
|
PW Benefits @ 15%
|
1448925.48
|
|
NPW
|
382992.79
|
|
B.C. Ratio
|
|
|
I.R.R. (%)
|
>25%
|
|
Repayment schedule
|
|
Year
|
Loan Outstanding
|
Gross Surplus
|
Interest
|
Principal
|
Total Repayment
|
Surplus
|
|
1
|
387000
|
184840
|
46440
|
37000
|
83440
|
101400
|
|
2
|
350000
|
212240
|
42000
|
50000
|
92000
|
120240
|
|
3
|
300000
|
190680
|
36000
|
75000
|
111000
|
79680
|
|
4
|
225000
|
161960
|
27000
|
75000
|
102000
|
59960
|
|
5
|
150000
|
161960
|
18000
|
75000
|
93000
|
68960
|
|
6
|
75000
|
236880
|
9000
|
75000
|
84000
|
152880
|
