Dairy farm project report for bank loan under (DEDS)(eight cows unit)

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  • Cost of rearing calves not considered as it will be repealed by their sale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.

  1.  

Capital cost

 

  1.  

Cow shed for 8 cows 40sq.ft/cow @200/sqft 

64000

  1.  

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

32000

  1.  

Cost of 8 CB cows with minimum average 10 liter milk 

yield /day @27000 with transportation

216000

  1.  

Cost of one chaff cutter hand operated power operated 2 Hp

25000

  1.  

Cost of dairy appliances @ 1000/cow

8000

  1.  

Electrification of the dairy farm with four ceiling  fan

15000

  1.  

Cost of one single bucket milking machine

30000

 

Total

390000

Recurring cost to be capitalized

  1.  

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

6360

  1.  

Cost of insurance  8 animals @5% of animal cost

10800

  1.  

Cost of fodder cultivation in 2 acres of land

20000

  1.  

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

3000

  1.  

Total recurring expenditure

40160

 

 

 

  1.  

TOTAL PROJECT COST

                                                                                                Say

430040

430000

  1.  

Margin money 10% of project cost

43000

  1.  

Bank loan 90% of project cost

387000

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

91160

103880

97520

89040

89040

97520

  1.  

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

9680

20240

22880

26400

26400

22880

  1.  

Medicine vaccine veterinary aid

6000

6000

6000

6000

6000

6000

  1.  

Insurance @5% of animal cost /year

10800

10800

10800

10800

10800

10800

  1.  

Cost of fodder cultivation

20000

20000

20000

20000

20000

20000

  1.  

Cost of labour

36000

36000

36000

36000

36000

36000

  1.  

other miscellaneous expenditure

4000

4000

4000

4000

4000

4000

  1.  

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

1.36:1

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




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