PROJECT REPORT OF A LARGE-SCALE BUFFALO DAIRY FARM

PREPARED BY
Dr. Vivek M. Patil
Associate Professor & Head
Livestock Research & Information Centre (Deoni), Bidar
Karnataka Veterinary, Animal & Fisheries Sciences University
http://sites.google.com/site/viveklpm/

A Overview
Name of the Proprietor VINODKUMAR JAGDALE
Address Pune
Unit size 30
Project Cost (Rs.) 4,590,000
Bank Loan (Rs.) 3,442,500
Margin Money (Rs.) 1,147,500
Repayment period (years) 5
Loan rate of interest (%) 12

B Techno-Economic Parameters
Cost of each Murrah buffalo (Rs.) 90,000
Average daily milk yield of each buffalo (lit) 12
Sale price of milk (Rs./lit) 50
Irrigated land required for fodder production (acres) 6.00
Cost of construction of buffalo sheds (Rs/sq.ft.) 400
Cost of construction of young stock sheds (Rs/sq.ft.) 250
Cost of construction of store rooms (Rs/sq.ft.) 200
Cost of production/purchase of green fodder (Rs/kg) 0.50
Cost of production/purchase of dry fodder (Rs/kg) 4.00
Cost of concentrate feed (Rs/kg) 18.00
Cost of veterinary aid per animal per year (Rs.) 1000
Cost of electricity and water per animal per year (Rs.) 1000
Rate of livestock insurance premium (%) 5
Annual wages of each farm labourer (Rs.) 120,000
Sale price of empty livestock feed gunny bags (Rs.) 10.00
Expenditure on rearing of calves will be offset by the income realized from
their sale.
Heifers will be retained on the farm as replacement stock.
Farmyard manure shall be used for fertilizing the fodder plots.

C Lactation Chart
(buffaloes are purchased in 2 batches at an interval of 5-6 months)

Year 1 Year 2 Year 3 Year 4 Year 5

No. of
in milk dry in milk dry in milk dry in milk dry in milk dry
animals
First Batch 15 4500 1800 4500 1800 4500 1800 4500 1800 4500 1800
Second Batch 15 2700 0 4500 1800 4500 1800 4500 1800 4500 1800
Total (days) 7200 1800 9000 3600 9000 3600 9000 3600 9000 3600

D Feed and Fodder

Daily
Year 1 Year 2 Year 3 Year 4 Year 5
Requirement
Rate/kg in milk dry in milk dry in milk dry in milk dry in milk dry in milk dry
Green fodder 0.50 35.00 28.00 126,000 25,200 157,500 50,400 157,500 50,400 157,500 50,400 157,500 50,400
Dry fodder 4.00 5.00 6.00 144,000 43,200 180,000 86,400 180,000 86,400 180,000 86,400 180,000 86,400
Concentrates 18.00 6.80 2.00 881,280 64,800 1,101,600 129,600 1,101,600 129,600 1,101,600 129,600 1,101,600 129,600
Total (Rs) 1,151,280 133,200 1,439,100 266,400 1,439,100 266,400 1,439,100 266,400 1,439,100 266,400

E Investment Cost
SpecificationsPhy. units Unit cost Total
Cost of animals 30 90,000 2,700,000
Construction of buffalo shed sq. ft. 2400 400 960,000
Construction of young stock sheds sq. ft. 1200 250 300,000
Construction of stores/misc rooms sq. ft. 300 200 60,000
Cost of milking equipment 1 set 300,000 300,000
Cost of liquid milk storage equipment 1 set 75,000 75,000
Cost of fodder cutting equipment 1 set 60,000 60,000
Cost of standby power supply 1 set 45,000 45,000
Cost of misc. equipment 1 set 30 1,000 30,000
Initial fodder cultivation cost acres 6 5,000 30,000
Misc. expenses 30 1,000 30,000
Total 4,590,000

F Cash Flow Analysis Years

 I II III IV V
1 Costs
a) Capital cost 4,590,000
b) Recurring cost
Feeding during lactation period 1,151,280 1,439,100 1,439,100 1,439,100 1,439,100
Feeding during dry period 133,200 266,400 266,400 266,400 266,400
Veterinary aid 30,000 30,000 30,000 30,000 30,000
Cost of electricity & water 30,000 30,000 30,000 30,000 30,000
Insurance 135,000 135,000 135,000 135,000 135,000
Labour wages 480,000 480,000 480,000 480,000 480,000
Total 6,549,480 2,380,500 2,380,500 2,380,500 2,380,500

2 Benefits
Sale of milk 4,320,000 5,400,000 5,400,000 5,400,000 5,400,000
Sale of gunny bags 10,512 13,680 13,680 13,680 13,680
Depreciated value of buildings 0 0 0 0 990,000
Depreciated value of equipments 0 0 0 0 255,000
Closing stock value 0 0 0 0 1,350,000
Total 4,330,512 5,413,680 5,413,680 5,413,680 8,008,680

3 DF @ 15% 0.87 0.76 0.66 0.57 0.50

4 Discounted Costs @ 15% 5,695,200 1,800,000 1,565,217 1,361,059 1,183,529 11,605,005
5 Discounted Benefits @ 15% 3,765,663 4,093,520 3,559,582 3,095,289 3,981,729 18,495,783
6 NPW @ 15% 6,890,778
7 BCR @ 15% 1.59
8 DF @ 50% 0.67 0.44 0.30 0.20 0.13
9 Net Benefits -2,218,968 3,033,180 3,033,180 3,033,180 5,628,180
10 Discounted Net Benefits @ 50% -1,479,312 1,348,080 898,720 599,147 741,160 2,107,794
11 IRR 137%

G Repayment Schedule
Equated
Gross
Year Income Expenses Annual Net Surplus
Surplus Installment
I 4,330,512 1,959,480 2,371,032 936,360 1,434,672
II 5,413,680 2,380,500 3,033,180 936,360 2,096,820
III 5,413,680 2,380,500 3,033,180 936,360 2,096,820
IV 5,413,680 2,380,500 3,033,180 936,360 2,096,820
V 5,413,680 2,380,500 3,033,180 936,360 2,096,820

Capital Recovery Factor 0.27

Date : 1/1/2018 15:52:21

Note :
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Disclaimer :
The data provided in the Project Report is for reference purposes and uses standard assumptions. For customized Project Reports please contact the author at dr.vivekmpatil@gmail.com or your nearest
Veterinarian.