DAIRY FARMING PROJECT REPORT FOR BANK LOAN UNDER DEDS(Ten cows unit)

PROJECT REPORT FOR DAIRY FARM WITH TEN 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  • Cost of rearing calves not considered as it will be repealed by their sale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

10

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

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

1250

1400

1250

1050

1050

1250

b)

Second batch

900

1050

1050

1050

1050

1050

 

Total

2150

2450

2300

2100

2100

2300

ii)

Dry Days

 

 

 

 

 

 

a)

First batch

550

400

550

750

750

550

b)

Second batch

--

750

750

750

750

750

 

Total

550

1150

1300

1500

1500

1300

 

Project cost and bank loan

Cost. In Rs.

  1.  

Capital cost

 

  1.  

Cow shed for 10cows 40sq.ft/cow @200/sqft

80000

  1.  

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

40000

  1.  

Cost of 2 CB cows with minimum average 10 liter

 milk yield /day @27000 with transportation

270000

  1.  

Cost of one chaff cutter with 2 HP motor

25000

  1.  

Cost of dairy appliances @ 1000/cow

10000

  1.  

Cost of electrification with  five ceiling fans

25000

  1.  

Cost of one single bucket milking machine

30000

 

Total

480000

Recurring cost to be capitalized

  1.  

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

7950

  1.  

Cost of insurance  10 animals @5% of animal cost

13500

  1.  

Cost of fodder cultivation in 2.5 acres of land

25000

  1.  

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

3500

  1.  

Total recurring expenditure

49950

  1.  

TOTAL PROJECT COST                                                                                            Say

529950

530000

  1.  

Margin money 10% of project cost

53000

  1.  

Bank loan 90% of project cost

477000

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

113950

129850

121900

111300

111300

121900

  1.  

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

12100

25300

28600

33000

33000

28600

  1.  

Medicine vaccine veterinary aid

7500

7500

7500

7500

7500

7500

  1.  

Insurance @5% of animal cost /year

13500

13500

13500

13500

13500

13500

  1.  

Cost of fodder cultivation

25000

25000

25000

25000

25000

25000

  1.  

Cost of labour

36000

36000

36000

36000

36000

36000

  1.  

other miscellaneous expenditure

5000

5000

5000

5000

5000

5000

  1.  

Total

213050

242150

237500

231300

231300

237500

 

INCOME

 

 

 

 

 

 

              I.       

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

451500

514500

483000

441000

441000

483000

            II.       

Sale of gunny bags

1600

1950

1850

1750

1750

1600

         III.       

Manure will be utilized in own farm

 

 

 

 

 

 

          IV.       

Value of closing stock of 10 cows

(Depreciation on animal cost @10%/year)

 

 

 

 

 

108000

            V.       

Value of building

(Depreciation on building@10%/year)

 

 

 

 

 

48000

          VI.       

Value of equipments

(Depreciation on equipments @15%/year)

 

 

 

 

 

9000

       VII.       

Total income

453100

516450

484850

442750

442750

649600

     VIII.       

Gross profit

240050

274300

247350

211450

211450

412100

 Year

1

2

3

4

5

5

Capital Costs

480000

 

 

 

 

 

Recurring Cost

213050

242150

237500

231300

231300

237500

Total Costs

693050

242150

237500

231300

231300

237500

Benefit

453100

516450

484850

442750

442750

649600

Net Benefit

-239950

274300

247350

211450

211450

412100

PW Costs @ 15%

1291833.78

 

PW Benefits @ 15%

1857415.90

NPW

565582.12

B.C. Ratio

1.44:1

I.R.R. (%)

>25%

Repayment Schedule

Year

Loan Outstanding

Gross Surplus

Interest

Principal

Total Repayment

Surplus

1

477000

240050

57240

52000

109240

130810

2

425000

274300

51000

75000

126000

148300

3

350000

247350

42000

75000

117000

130350

4

275000

211450

33000

75000

108000

103450

5

200000

211450

24000

100000

124000

87450

6

15000

412100

12000

100000

112000

300100



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