Techno-Economic Feasibility- Farm Mechanization

The Objective of this Dairy Project is to create a commercially viable farm with Improved Productive Cows with better genetic Potential through Scientific Milking, Automatic TMR feeding through Mixer Wagon, Herd Management Practices through Software and achieving Technological up gradation with assurance of Good Animal/Udder Health. A common misconception have is that our products and systems are an expensive part of an overall project. This sometimes reinforces misconceptions that the customer sees our products as expensive. In reality the cost for our products seldom account for 15-20% of the overall investment in land, buildings, cows and other equipment. And yet our products can provide the management tools needed to make an operation of poor profitability into a very profitable one. By quickly playing around with different numbers in the pre-feasibility study we can demonstrate the following truths about any dairy farming operation: - Anything that affects the key items in production economics - milk yields, feed costs, feeding efficiencies or labour, even by only 1-2% has an enormous effect on farm profitability. . - The overall project investment cost has little effect on long term profitability. Investments on Milking Machines have little effect on payback periods or operating results. Yet this money put toward going from basic equipment to more automated milking and feeding can easily give the 1-2% improvements in production making a dramatic difference to profits. - If a budget is limited and the project cost has to be trimmed the milking, breeding and feeding areas are not the place to cut. Often reducing from more expensive buildings, tractors or field equipment to more basic models will do little to reduce production economics but can save the money needed to invest in good equipment where it counts.

vashvi

5/1/2009

Page 1 of 6

Milking Machine Systems

Advantages and Objectives

DeLaval 2003 Presentation Name/Ref

25/01/2009 13:59

The economic feasibility cannot be achieved with Short Term benefits but the Long term Benefits that can be accrued are summarized below in two Classes: Tangible Benefits In Tangible Benefits

Tangible Benefits a) Milk Yield Benefit:

Integrated Control with ALPRO(Herd Management Software) and TMR Feed Software will ensure that each Group Cows will be fed according to Milk Production, Physiological/Lactation Requirement , Ration spreads over time, better Rumen Efficiency and Better /Improved animal Health. It seems quite possible to observe at least minimum 5% Milk Yield Benefits along with Feed Saving avoiding Extra Feed to Low producing Cows. Assuming 1000 Cows in Milk and Average Milk Lactation yield of 3500 Litres, we can calculate that average Milk yield increase of 5 % will lead to estimated increase of 350 Litres per Cow per Lactation. This results in estimated additional Milk Production per cow per year 175 Litres
Total Production considering 1000 Cows in milk will be additional 175000 Litres creating extra Revenue of Rs 26, 25,000 per year.

vashvi

5/1/2009

Page 2 of 6

b) Feed Costs Saving:

The TMR feed system along with inventory control feature and optimum ration control for each Cow group based upon lactation requirement results in overall saving of feed quantity against average /ad-Hoc feeding , Balanced Feeding and better rumen efficiency optimizing the total feed. This system of feeding results in less spillage/wastage during feeding. Better feeding early in lactation lifts the lactation curve and the total production. The automatic dispensing according to eating speed reduces variations in rumen fermentation and increases feed utilization. The automatic dispensing according to eating speed reduces variations in rumen fermentation and increases feed utilization. Mixers Wagons mixes and utilizes low cost feeds that are difficult to feed individually. Feed price can be reduced. Improvement range: Up to 15 % Assuming 1000 Cows in Milk considering the above factors results in Average 5% savings in Feed cost- 10 and 2% annual savings on Spillage, manual handling and manual transportation Assuming Cows producing average of 10 liters per day will be consuming Rs.100 of ration considering Feed Cost of Rs. 10/- per Litres of Milk. Savings of 5% feed cost results in Rs. 5/- savings per Cow per day which is quite reasonable and results in 5000 Rs per Day.
Annual Savings due to Savings on Feed Cost will be 5000X365=Rs.18, 25,000/- for the herd. Annual Savings due to savings in Handling because of mechanization etc will results in Rs. 7, 30,000/- for the Herd.

c) Efficient Labour Utilization:

Mechanized or Automatic Milking and Milk handling with less of Labour comparing to hand Milking/Bucket Machine Milking results into savings of labour and costs involved and less dependability on labour with effective utilization of labour. Manual Controlled Dairy Farm labour requirement: -Manual Milking @15 cows per Milker will results into 66 Persons minimum. - Feeding Labour @ 20 Cows per Person will results into 50 Persons. Mechanized Dairy Farm Labour Requirement: -Milker/ Cow Pusher for Two Shifts 10 Nos - Feeding Labour @40 Cows Per Person 25 Nos including Supervisor, Tractor Driver, Feeding Labour etc.

vashvi

5/1/2009

Page 3 of 6

Present Average Annual Salary of Milker/Feeding Labour is Rs. 48000/Savings due to efficient labour utilization for Milking Rs 26, 88,000 (56 X 4000 X 12) Savings due to efficient labour utilization for FeedingRs 12, 00,000 (25 X 4000 X 12)

d) Income Due to better Animal Health

Balanced Feeding and Herd Management will ensure better animal health through lower incidence of metabolic disease/milk fever, lower incidence of placenta, Lower Medicine Costs and Reduced Inter Calving Period due to timely Insemination with help of Activity meters identifying Heat of the Cow and giving Attention Alarms/info in the Milking Parlour. Assuming 16 months of Inter-Calving Period and 6 Milk Production Lactations in cow Estimated Improvement in Inter- Calving Period: 15 Months per cow Additional Milk Production: 30 X 1000 = 30,000 Litres
Additional Revenue from Milk: 30,000 X 15 = Rs. 4, 50,000 /-

Better Herd Mgmt practices will lead improvements in Breeding Rate and less number of Artificial Inseminations is desired results in Savings too.

Present Number of Inseminations per conception 2.5 @Rs. 50/- i.e. Rs. 1, 25,000/- for herd of 1000 Cows. Estimated Improvement in Number of inseminations per conception 2@Rs 50/- i.e Rs. 1, 00,000 for Herd of 1000 Cows Savings of Rs. 25,000 /- in breeding expenses and overall less veterinary Expenses up to 2-5% of total Veterinary cost/Medicine cost.

vashvi

5/1/2009

Page 4 of 6

Customer Value Calculation Modules

MORE
Savings on feeding cost Improved Reproduction Milk Quality and Udder Health

Labour Savings

Better Herd Management

More Milk Quantity

Intangible Benefits a) Technological up gradation: The upcoming Organized Dairy Farms are still
unaware of benefits and importance of TMR feeding and Herd Management. The technology up gradation shall go a long way in improving animal productivity and serve as a Demonstration to students, livestock owners, scientists and research workers. Breeding Improvement: Computerized Herd management will ease the task of individual cow record keeping and will also help in building up breeding record which in time to time monitoring will help in building up a efficient and tested herd. This results of efficient, proven and tested breeding bulls which could also create revenue and helps in improving the herd. Quality Milk Production: The mechanized Milk production will also ensure a clean, hygiene milk production having lowest possible Bacterial count which will of course attract more value realization of milk. This will lead to awareness and motivate other farmers to produce CLEAN MILK. Better Udder/Cow Health: Bacterial load inside udder is reduced due to complete extraction & teat dipping. Complete recovery of milk is possible as the clusters are detached by the machines based upon Milk Flow thereby avoiding Over Milking Of cow ensuring better cow health. Affordability of Farm Expertise: The large dairy project ensures affordability of Professional Expertise in terms of FARM MANAGERS, CONSULTANTS etc which will help in long term benefits

b)

c)

d)

e)

vashvi

5/1/2009

Page 5 of 6

Advantages- Automation and Herd Management:

DeLaval Alpro System gives the manager a tool to manage and feed large numbers of cows on an individual basis. Alpro can record milk yield every milking giving the manager essential information for managing the cows. Alpro further protects the large operation from human error by aiding the milker to identify problem cows, blocking fresh or antibiotic treated milk from contaminating the bulk tank and by automatically selecting out cows the manager nominates for insemination or other treatments. This leaves the Milkers to concentrate on completing important milking routine tasks required for good udder health.

Milking and Feeding Mechanization leads to:

HIGHER INCOME
1 2 3 4 5 6 7 8 9 10 11 12 13 More Milk Better Quality

LESS COSTS
Feeds Feed Price Labour Replacement Semen Veterinary Drugs Detergents Electricity Water, Wastes Maintenance

LIMITATION OF HAND MILKING

Squeezing or Knuckling Method , Presses Milk out Unnatural way of milk Extraction, Lack of consistency Milk Hygiene? Constraints Due to fatigue, Residual Milk Uncomfortable Animal, Risk of knuckling Dependability Limitation on Expansion Not Possible to plan Big Dairy Farm Set-up.

vashvi

5/1/2009

Page 6 of 6