DAIRY FARM (BUFFALO) PROJECT REPORT FOR BANK LOAN

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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• Cost of rearing calves not considered as it will be repealed by their sale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
Item	FEEDING STUFF	COST/KG Rs.	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.
	Capital cost
	Covered area for 50 Buffaloes @ 30sq.ft/bufalo@200/sqft	300000
	Covered area 50calves 15 sq.ft./calf @200/sq.ft.	150000
	Cost of construction of boundary & manger for open space	250000
	Cost of construction store room 200 sq.ft @250 per sq.ft	50000
	Cost of construction of office cum marketing room 250 sq ft @250 per sq.ft	62500
	Cost of 50 Murrah Buffaloes with minimum average 15 liter milk yield /day @55000/buffaloes including transportation	2750000
	Cost of generator set	80000
	Cost of milking machine with accessories & installation charge	430000
	Cost of dairy appliance @Rs.1000/Buffalo	50000
	Cost of bulk cooler of 500 liter capacity	270000
	Cost of bore well with pump set	70000
	Electrification	30000
	Cost of over head tank & pipe line	70000
	Cost of chaff cutter	90000
	Total	4652500
Recurring cost to be capitalized
	Cost of feed for first batch of 2 5 buffaloes for one month as per feed chart	67500
	Cost of insurance 25 animals @5% of animal cost	68750
	Cost of fodder cultivation in 10 acres of land for one session	50000
	Cost of medicine vaccine, electricity for the first month for first month	10000
	Contingency	11250
	Total recurring expenditure	207500
	TOTAL PROJECT COST	4860000
	Margin money (no margin money up to one lakh finance as per RBI guideline)	1215000
	Bank loan 100% of project cost	3645000

Item	Particulars	Project period
		1	2	3	4	5	6
	Feeding during lactation period vide yearly lactation days and feed cost as per chart	945000	1091250	1091250	1091250	990000	1091250
	Feeding during dry period vide dry days and feed cost as per feed chart enclosed	68750	134750	134750	156750	159500	134750
	Medicine vaccine veterinary aid	50000	50000	50000	50000	50000	50000
	Insurance @5% of animal cost /year	137500	137500	137500	137500	137500	137500
	Cost of fodder cultivation	100000	100000	100000	100000	100000	100000
	Labour charge	180000	180000	180000	180000	180000	180000
	Electricity & other misc. expenses	60000	60000	60000	60000	60000	60000
	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

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