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Project report for dairy farm ten cows


Indigenous dairy breed/ crossbred cow dairy farm
Dair f r i r i excellent opportunity for self employment of unemployed youth. It is also an important source of income generation to small/marginal farmers and
agri lt r l l r r . i e agriculture is mostly seasonal, there is a possibility of finding employment throughout the year for many persons through dairy farming. Landless

y a m ng p ov des an
cu u a abou e s S nc

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labourers. The white revolution of 70s had made spectacular land marks in Indian milk production scenario. India is the largest milk producer of the world The increasing cost
of feed ingredients and its seasonal variability can be reduced by undertaking fodder cultivation.This project report is based on following assumption:

Entrepreneur 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 the locality4.Availability of concentrates ,fodder & medicine in that locality.

Before starting a dairy farm the entrepreneurs/ farmers are advised to undergo training on dairy farming. They can contact Local Animal Husbandry Department
staffs/Veterinary College/agriculture University etc. for the purpose.

Government subsidy available for these types of project Back ended capital subsidy 25% for general category (33.33% for SC/ST beneficiaries) is available under
government of India scheme Dairy Entrepreneurship Development Scheme (DEDS.). Subsidy ceiling is Rs150000/ for general category & Rs200000 for ST/SC category for
dairy farm with ten animals.Farmer from Odisha can avail back ended capital subsidy 25% for general category (33.33% for SC/ST beneficiaries) under government of
Odisha scheme PromotionOfDairyEntrepreneurship(PDE).Subsidy ceiling is Rs150,000/ for general category & Rs166665/ for ST/SC category for dairy farm with 10 animals for
PDE scheme.Odisha farmer can avail subsidy either under scheme PDE or DEDS.

Avail Bank loan and subsidy In order to avail bank loan & subsidy under DEDS/PDE the entrepreneur/farmers are advised to contact local animal husbandry/veterinary
officers. Animal resources development department is the facilitator deportment for above schemes.

This project report is based on following assumption:

1.Freshly calved indigenous dairy breed/ crossbred cows like RedSindhi/ Sahiwal/ Gir/ Rathi/ Crossbred cows in 1st or 2nd lactation will be purchased in two batches of two
animals each at an interval of 5 to 6 months.

2.Availability of 2 acre of irrigated land is prerequisite for the project

3.Cost of labour has not been taken into consideration since full time labour is not required for the small unit. Family labour will be utilized for maintance of the dairy farm.

4.Fodder cultivation considered in 2 acre land ,Two crops considered per year.

5.Cow dung produced will be utilized as Manure for fodder cultivation.

6.Cost of rearing calves is not considered as it will be nullified by their sale value

7.In case of death cow new cow will be purchased from insurance claim money

8.The scheme is workable on the above guidelines if run by the dairy farmer on scientific lines.

Ho us ing for cows

Floor Pucca, strong conc rete cemented, impervious to moisture ,and have slope 1 in 60 towards gutter. Plinth should be 2ft. higher than ground.

Walls3ft. high lengthwise brick wall on sides, End wall should be solid made of bricks.
Roof 1416ft. high at the center and 8ft. high on the side wall .there should be hang over 3ft beyond wall to prevent rain water from entering cow shade. Roof should be of
asbestos, cement asbestos, or tile. thatched roof can replace asbestos in low cost housing

TAIL TO TAIL SYSTEM OF HOUSING

ITEMS MANGER LENGTH IN METER


STANDING PLACE 0.6M
GUTTER 1.5M
FEEDING PASSAGE 0.4M
MILKING PLACE 1.2M ON BOTH SIDE
1.2M
. Techno economic parameters
Type of Animal indigenous Milch breed /CB
No. of Animals 10
Cost of Animal (Rs./animal) 30000/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.) 250
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.) 1000
Cost of concentrate feed (Rs./kg) 12
Cost of dry fodder (Rs./kg) 2
Rate of interest (%) 12
Repayment period (years) 6
Selling price of milk/litre (Rs./kg) 27
Sale price of gunny bags (Rs. per bag) 10
Lactation days 280
Dry days 150
DAILY FEEDI NG AND C OST CHART FOR DAIRY COWS
COST /KG During lactation period During dry period
FEEDING STUFF Quantity Quantity Cost
Rs.
Cost (Rs.)
(kg) (kg) (Rs.)
Concentrate feed 16 4.5 72 1.5 24
Home Home
Green fodder 1 20 15
grown grown
Dry fodder 4 4 11 5 10
Total 28.5 83 21.5 34
Lactation chart/Dry chart
Particulars Years
I II III IV V Vi
Lactation Days
First batch 1250 1400 1250 1050 1050 1250
Second batch 900 1050 1050 1050 1050 1050
Total 2150 2450 2300 2100 2100 2300
Dry Days
First batch 550 400 550 750 750 550
Second batch 750 750 750 750 750
Total 550 1150 1300 1500 1500 1300

ECONOMICS OF DAIRY FARMING WITH 10 INDIGENOUS DAIRY BREED COWS

Project cost and bank loan Cost. In Rs.


Capital cost
Cow shed for 10cows 40sq.ft/cow @250/sqft 100000
Calf pen for 10 calves 20 sq.ft./calf @250/sq.ft. 50000
Cost of 10CB cows with minimum average 10 liter milk yie ld /day
300000
@30000
Cost of transportation @Rs1000/ cow 10000
Cost of one chaff cutter with 2 HP motor 25000
Cost of dairy appliances @ 1000/cow 10000
Cost of electrification with five ceiling fans 23000
Cost of one single bucket milking machine 27000
Total 545000
Recurring cost to be cap italized
Cost of feed for first batch of one cows for one month as per feed 12450
chart
Cost of insurance 10 animals @5% of animal cost 13500
Cost of fodder cultivation in 2.5 acres of land 25000
Cost of medicine vaccine, electricity for the first month for first cow 4000
Total recurring expenditure 54950
599950 SAY
TOTAL PROJECT COST
600000
Margin money 25% of project cost 150000
Bank loan 75% of project cost 450000
Particulars Project period
CASH FLOW
1 2 3 4 5 6
ANALYSIS.
Feeding during lactation
period vide yearly lactation
days and feed cost as per 178450 203350 190900 174300 174300 190900
chart
Feeding during dry period
vide dry days and feed cost 18700 39100 44200 51000 51000 44200
as per feed chart enclosed
Medicine vaccine 10000 10000 10000 10000 10000 10000
veterinary aid
Insurance @5% of animal 15000 15000 15000 15000 15000 15000
cost /year
Cost of fodder cultivation 50000 50000 50000 50000 50000 50000
Cost of labour 60000 60000 60000 60000 60000 60000
other miscellaneous 10000 10000 10000 10000 10000 10000
expenditure
Total 342150 387450 380100 370300 370300 380100
INCOME
Sale of milk @Rs.27/liter
during lactation days with
580500 661500 621000 567000 567000 621000
average milk yield /cow
liter/day
Sale of gunny bags 2100 2300 2250 2100 2100 2200
Manure will be utilized in
own farm
Value o f c los ing stock o f
10 cows
120000
(Depreciation on animal
cost @10%/year)
Value of building

(Depreciation on 60000
building@10%/year)

Value of
equipments(Depreciation
on equipments 8500
@15%/year)
Total income 582600 663800 623250 569100 569100 811700
Gross profit 240450 276350 243150 198800 198800 431600
1 2 3 4 5 6
Capital Costs 545000
Recurring 342150 387450 380100 370300 370300 380100
Cost
Total Costs 887150 387450 380100 370300 370300 380100
Benefit 582600 663800 623250 569100 569100 811700
Net Benefit 304550 276350 243150 198800 198800 431600
Sl no Financial indicators Estimated value Preferred value
1 Net Present Worth (NPW 503105.16 Should be +ve
2 Benefit Cost Ratio(BCR) 1.268:1 >1
3 Internal Rate of return (IRR) 35.33 >15%
Debt Service Coverage 2.366 >1.5
4
Ratio

Bank loan =450000grace period 6 months Loan amount at the end of grace period =450000+27000=477000

Monthly
S.No Interest Principal Balance
Installment
0 477000
1 9325 4770 4555 472445
2 9325 4724 4601 467844
3 9325 4678 4647 463197
4 9325 4632 4693 458503
5 9325 4585 4740 453763
6 9325 4538 4788 448975
7 9325 4490 4836 444139
8 9325 4441 4884 439255
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9 9325 4393 4933 434322
10 9325 4343 4982 429340
11 9325 4293 5032 424308
12 9325 4243 5082 419226
13 9325 4192 5133 414092
14 9325 4141 5185 408908
15 9325 4089 5236 403672
16 9325 4037 5289 398383
17 9325 3984 5342 393041
18 9325 3930 5395 387646
19 9325 3876 5449 382197
20 9325 3822 5503 376694
21 9325 3767 5559 371135
22 9325 3711 5614 365521
23 9325 3655 5670 359851
24 9325 3599 5727 354124
25 9325 3541 5784 348340
26 9325 3483 5842 342498
27 9325 3425 5900 336597
28 9325 3366 5959 330638
29 9325 3306 6019 324619
30 9325 3246 6079 318539
31 9325 3185 6140 312399
32 9325 3124 6201 306198
33 9325 3062 6263 299934
34 9325 2999 6326 293608
35 9325 2936 6389 287219
36 9325 2872 6453 280766
37 9325 2808 6518 274248
38 9325 2742 6583 267665
39 9325 2677 6649 261016
40 9325 2610 6715 254301
41 9325 2543 6782 247519
42 9325 2475 6850 240668
43 9325 2407 6919 233750
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44 9325 2337 6988 226762
45 9325 2268 7058 219704
46 9325 2197 7128 212575
47 9325 2126 7200 205376
48 9325 2054 7272 198104
49 9325 1981 7344 190760
50 9325 1908 7418 183342
51 9325 1833 7492 175850
52 9325 1758 7567 168283
53 9325 1683 7643 160640
54 9325 1606 7719 152921
55 9325 1529 7796 145125
56 9325 1451 7874 137251
57 9325 1373 7953 129298
58 9325 1293 8032 121265
59 9325 1213 8113 113152
60 9325 1132 8194 104959
61 9325 1050 8276 96683
62 9325 967 8359 88324
63 9325 883 8442 79882
64 9325 799 8527 71355
65 9325 714 8612 62743
66 9325 627 8698 54045
67 9325 540 8785 45260
68 9325 453 8873 36388
69 9325 364 8962 27426
70 9325 274 9051 18375
71 9325 184 9142 9233
72 9325 92 9233 0

DISCLAIMER:The views expressed in this model project are advisory in nature. This website assumes no financial liability for anyone using this project report for any
purpose.

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