DAIRY FARM (BUFFALO) PROJECT REPORT FOR BANK LOAN

PROJECT REPORT FOR DAIRY FARM WITH  FIFTY MURRAH BUFFALOES

Buffalo farming is a profitable business & has   good potential  for employment generation . India has 57% of world buffalo population. Buffalo milk contributes 57% of total milk production. Buffaloes have several advantages over crossbred cows as farm animal.

1-They are well adopted to agro-climatic condition of our country

2-They are more disease resistant in comparison to crossbred cows. (less incidence of milk fever & mastitis in buffaloes)

3-They can thrive well on crop residue

5-Buffalo milk contains more butter fat for which the price of buffalo milk is more.

This project report is based on following assumptions:-

•     Freshly calved murrah  female buffaloes in 1st or 2nd lactation will be purchased in two batches of  twenty-five animals each/batch  at an interval of 5 to 6 months.

•     Availability of 10 acres of land  for fodder cultivation is prerequisite for the project,

•     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•     Cost of rearing calves not considered as it will be repealed by their sale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 adult animal new buffalo  will be purchased from insurance claim money.

·         Heifers will be used as replacement stocks

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

Housing for buffaloes:-loose housing system (open type) will be adopted for the farm as it is superior to conventional bran in terms of milk production & growth. Construction cost is lower & heat detection for buffaloes is easier in this type of housing.  In loose housing system  animals are kept loose except milking and at the time of treatment. Details of floor space requirement (open & covered area)is given in techno economic parameters. A photograph of loose housing buffalo dairy farm is given below

Murrah Buffalo farm NDRI Karnal

OPEN YARD HOUSING



Techno-economic parameters

. Techno economic parameters

 

Bred of buffalo

 Murrah

No. of Animals

50

Cost of Animal (Rs./animal) including transportation

55000

Average Milk Yield (litre/day)

15 liter

Covered Floor space  per adult animal(sq.ft)

30

Open space  per adult animal(sq.ft)

100

Menger length/animal in inches

25

Covered Floor space  per young stock (sq.ft)

15

Open space  per young stock (sq.ft)

50

Menger per young stock in inches

15

Construction cost of office & floor in sq.ft

250

Cost of construction per sqft (Rs)

200

Cost of milking machine with accessories

430000

Cost of other  equipment per animal (Rs.)

1000

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

5000

Insurance premium (% per annum)

5

Veterinary aid/animal/ year (Rs.)

1000

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)

24

Sale price of gunny bags (Rs. per bag)

10

Lactation days

270

Dry days

150

 DAILY FEEDING AND COST CHART FOR DAIRY BUFFALOES

Item

FEEDING STUFF

COST/KG

Rs.

During lactation period

During dry period

Quantity (kg)

Cost (Rs.)

Quantity (kg)

Cost (Rs.)

i

Concentrate feed

12

6.5

78

1

12

ii

Green fodder

1

25

Home grown

20

Home grown

iii

Dry fodder

2

6

12

5

10

 

Total

 

 

90

 

22

feeding chart

Lactation chart/Dry chart

Sr.No

Particulars

 

 

Years

 

 

 

 

 

I

II

III

IV

V

Vi

vii

i)

Lactation Days

10500

12125

12125

12125

11000

12125

12125

ii)

Dry Days

3125

6125

6125

7125

7250

6125

5375                


 

Project cost and bank loan

Cost. In Rs.

  1.  

Capital cost

 

  1.  

 Covered area for 50 Buffaloes @ 30sq.ft/bufalo@200/sqft         

300000

  1.  

Covered area 50calves 15 sq.ft./calf @200/sq.ft.

150000

  1.  

Cost of construction of boundary & manger for open space

250000

  1.  

Cost of construction store room 200 sq.ft @250 per sq.ft

50000

  1.  

Cost of construction of office cum marketing room  250 sq ft @250 per sq.ft

62500

  1.  

Cost of 50 Murrah Buffaloes with minimum average 15 liter milk yield /day @55000/buffaloes including transportation

2750000

  1.  

Cost of generator set

80000

  1.  

Cost of milking machine with accessories & installation charge

430000

  1.  

Cost of dairy appliance @Rs.1000/Buffalo

50000

  1.  

Cost of bulk cooler of 500 liter capacity

270000

  1.  

Cost of bore well with pump set

70000

  1.  

Electrification

30000

  1.  

Cost of over head tank & pipe line

70000

  1.  

Cost of   chaff cutter

90000

 

Total

4652500

 

Recurring cost to be capitalized

  1.  

Cost of feed for first batch of  2 5 buffaloes for one month as per feed chart

67500

  1.  

Cost of insurance  25 animals @5% of animal cost

68750

  1.  

Cost of fodder cultivation in 10 acres of land  for one session

 

50000

  1.  

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

10000

  1.  

Contingency

11250

  1.  

Total recurring expenditure

 

207500

 

 

  1.  

TOTAL PROJECT COST

4860000

  1.  

Margin money (no margin money up to one lakh finance as per

RBI guideline)

1215000

  1.  

Bank loan 100% of project cost

3645000

 

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

945000

1091250

1091250

1091250

990000

1091250

  1.  

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

68750

134750

134750

156750

159500

134750

  1.  

Medicine vaccine veterinary aid

50000

50000

50000

50000

50000

50000

  1.  

Insurance @5% of animal cost /year

137500

137500

137500

137500

137500

137500

  1.  

Cost of fodder cultivation

100000

100000

100000

100000

100000

100000

  1.  

Labour charge

180000

180000

180000

180000

180000

180000

  1.  

Electricity & other misc. expenses

60000

60000

60000

60000

60000

60000

  1.  

Total

1541250

1753500

1753500

1775500

1677000

1753500

 

INCOME

 

 

 

 

 

 

              I.       

Sale  of milk @Rs.24/liter during lactation days with average milk yield 15 lit /buffalo/day

3780000

4365000

4365000

4365000

3960000

4365000

            II.       

Sale of gunny bags

 

 

 

 

 

 

         III.       

Manure will be utilized in own farm

14270

16980

16980

17180

15750

16980

          IV.       

Value of closing stock of 50 buffaloes

(Depreciation on animal cost @10%/year)

 

 

 

 

 

1100000

            V.       

Value of building

(Depreciation on building@10%/year)

 

 

 

 

 

325000

          VI.       

Value of equipments

(Depreciation on equipments @15%/year)

 

 

 

 

 

109000

       VII.       

Total income

3794270

4381980

4381980

4382180

3975750

5915980

     VIII.       

Gross profit

2253020

2628480

2628480

2606680

2298750

4162480

Calculation of BCR and IRR

 

1

2

3

4

5

6

Capital Costs

4652500

 

 

 

 

 

Recurring Cost

1541250

1753500

1753500

1775500

1677000

1753500

Total Costs

6193750

1753500

1753500

1775500

1677000

1753500

Benefit

3794270

4381980

4381980

4382180

3975750

5915980

Net Benefit

-2399480

2628480

2628480

2606680

2298750

4162480


PW Costs @ 15%

10471721.91

PW Benefits @ 15%

16533943.58

 

NPW

6062221.67

 

B.C. Ratio

1.578:1

I.R.R. (%)

>25%

Repayment schedule

Year

Loan Outstanding

Gross Surplus

Interest

Principal

Total Repayment

Surplus

1

3645000

2253020

437400

445000

882400

1370620

2

3200000

2628480

384000

600000

984000

1644480

3

2600000

2628480

312000

700000

1012000

1616480

4

1900000

2628480

228000

800000

1028000

1600480

5

1100000

2298750

132000

600000

732000

1566750

6

500000

4162480

60000

500000

560000

3602480

Before  entering in to dairy business the entrepreneurs are advised to undergo a 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 murrah buffaloes  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 the locality 

4.  Availability of concentrates ,fodder & medicine in that locality.

Comments