Dairy Farm Project 4 cows

Project report for dairy farm 4 cows

Indigenous dairy  breed/ crossbred cows
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  one 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 one 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.

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 Rs60,000/ for
general category & Rs80.000 for ST/SC category for dairy farm with four 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 Promotion Of Dairy
Entrepreneurship (PDE).Subsidy ceiling is Rs50,000/ for general category & Rs66666/ for
ST/SC category for dairy farm with two 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. 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.  They should also visit progressive dairy
farmers and government/ agricultural university dairy farms in the locality. They 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 locality

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

Housing for cows

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

 Walls-3ft. high lengthwise brick wall on sides, End wall should be solid made of bricks.

Roof– 14-16ft. 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

ITEMS LENGTH IN METER

MANGER 0.6M

STANDING PLACE 1.5M

GUTTER 0.4M

FEEDING PASSAGE 1.2M

MILKING PLACE 1.2M

. Techno economic parameters

Or indigenous Milch breed like red sindhi,

Type of Animal Sahiwal ,Gir

/CB  Cows
No. of Animals 4

Cost of Animal (Rs./animal) 30000/cow

Cost of transportation 1000/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

5000
(Rs./acre/season)

Insurance premium (% per annum) 5

Veterinary aid/animal/ year (Rs.) 1000

Cost of concentrate feed (Rs./kg) 16

Cost of dry fodder (Rs./kg) 1

Rate of interest (%) 12

Repayment period (years) 6

Selling price of milk (Rs./kg) 27

Sale price of gunny bags (Rs. per bag) 10

Lactation days 280

Dry days 150

DAILY FEEDING AND COST CHART FOR DAIRY COWS

During lactation
During dry period
COST/KG period
Item FEEDING STUFF
Cost Quantity Cost
Rs. Quantity (kg)
(Rs.) (kg) (Rs.)

i Concentrate feed 16 4.5 72 1.5 24

Home Home
ii Green fodder 1 20 15
grown grown

iii Dry fodder 4 4 11 5 10

Total 28.5 83 21.5 34

Lactation chart/Dry chart

Sr.No Particulars Years

I II III IV V Vi

i) Lactation Days

a) First batch 500 560 500 420 420 500

b) Second batch 360 420 420 420 420 420

Total 860 980 920 840 840 920

ii) Dry Days

a) First batch 220 160 220 300 300 220

b) Second batch – 300 300 300 300 300

Total 220 460 520 600 600 520

Dairy farm project report 4 cows part 2

Economics of dairy farming with 4 cows

Project cost and bank loan Cost. In Rs.

Capital cost
Cow shed for 4 cows 40sq.ft/cow @250/sqft 40000
Calf pen for 4 calves 20 sq.ft./calf @250/sq.ft. 20000
Cost of 4 CB cows with minimum average 10 liter milk yield
120000
/day @30000with transportation
Cost of transportation @Rs1000/cow 4000
Cost of one chaff cutter hand operated 10000
Cost of dairy appliances @ 1000/cow 4000
Cost of electrification of dairy farm with two electric fans 12000
Total 210000
Recurring cost to be capitalized
Cost of feed for first batch of  one cows for one month as per
4980
feed chart
Cost of insurance  4 animals @5% of animal cost 6000
Cost of fodder cultivation in one acres of land 10000
For one session
Cost of medicine vaccine, electricity for the first two cows 2000
Contingency 7020
30000
Total recurring expenditure
 
TOTAL PROJECT COST
240000
 
Margin money 15% of project cost 36000
Bank loan 85% of project cost 204000

CASH FLOW ANALYSIS.

Particulars Project period

1 2 3 4 5 6
Feeding during
lactation period vide
yearly lactation days 71380 81340 76360 69720 69720 76360
and feed cost as per
chart
Feeding during dry
period vide dry days
7480 15640 17680 20400 20400 17680
and feed cost as per
feed chart enclosed
Medicine vaccine
4000 4000 4000 4000 4000 4000
veterinary aid
Insurance @5% of
6000 6000 6000 6000 6000 6000
animal cost /year
Cost of fodder
20000 20000 20000 20000 20000 20000
cultivation
other miscellaneous
5000 5000 5000 5000 5000 5000
expenditure
Total 113860 131980 129040 125120 125120 129040
INCOME
Sale  of milk
@Rs.27/liter during
lactation days with 232200 264600 248400 226800 226800 248400
average milk yield
/10  liter/day
Sale of gunny bags 840 520 900 840 840 880
Manure will be
utilized in own farm
Value of closing
stock of 4cows
48000
(Depreciation on
animal cost
@10%/year)
Value of building
24000
(Depreciation on
building@10%/year)
Value of equipments

(Depreciation on 2600
equipments
@15%/year)
Total income 233040 265120 249300 227640 227640 323880
Gross profit 119180 133140 120260 102520 102520 194840
Calculation of BCR & IRR
1 2 3 4 5 6
Capital Costs 210000
Recurring
113860 131980 129040 125120 125120 129040
Cost
Total Costs 323860 131980 129040 125120 125120 129040
Benefit 233040 265120 249300 227640 227640 323880
Net Benefit -90820 133140 120260 102520 102520 194840
Sl no Financial indicators Estimated value Preferred value
Net Present Worth (NPW) 294593.37
1 Should be+ve
@15%DF  
2 Benefit Cost Ratio(BCR) 1.449:1 >1
3 Internal Rate of return (IRR) 32.73 >15%
4 Debt Service Coverage Ratio 2.53 >1.5

LOAN AMOUNT 204000

GRACE PERIOD 6 MONTH

OAN AMOUNT AT THE END OF GRACE PERIOD=204000+12240=216240

Monthly
S.No Interest Principal Balance
Installment
0 216240
1 4228 2162 2065 214175
2 4228 2142 2086 212089
3 4228 2121 2107 209982
4 4228 2100 2128 207855
5 4228 2079 2149 205706
6 4228 2057 2170 203535
7 4228 2035 2192 201343
8 4228 2013 2214 199129
9 4228 1991 2236 196893
10 4228 1969 2259 194634
11 4228 1946 2281 192353
12 4228 1924 2304 190049
13 4228 1900 2327 187722
14 4228 1877 2350 185372
15 4228 1854 2374 182998
16 4228 1830 2398 180600
17 4228 1806 2422 178179
18 4228 1782 2446 175733
19 4228 1757 2470 173263
20 4228 1733 2495 170768
21 4228 1708 2520 168248
22 4228 1682 2545 165703
23 4228 1657 2571 163132
24 4228 1631 2596 160536
25 4228 1605 2622 157914
26 4228 1579 2648 155266
27 4228 1553 2675 152591
28 4228 1526 2702 149889
29 4228 1499 2729 147160
30 4228 1472 2756 144405
31 4228 1444 2783 141621
32 4228 1416 2811 138810
33 4228 1388 2839 135970
34 4228 1360 2868 133102
35 4228 1331 2897 130206
36 4228 1302 2925 127280
37 4228 1273 2955 124326
38 4228 1243 2984 121341
39 4228 1213 3014 118327
40 4228 1183 3044 115283
41 4228 1153 3075 112208
42 4228 1122 3105 109103
43 4228 1091 3137 105966
44 4228 1060 3168 102799
45 4228 1028 3200 99599
46 4228 996 3232 96367
47 4228 964 3264 93104
48 4228 931 3296 89807
49 4228 898 3329 86478
50 4228 865 3363 83115
51 4228 831 3396 79719
52 4228 797 3430 76288
53 4228 763 3465 72824
54 4228 728 3499 69324
55 4228 693 3534 65790
56 4228 658 3570 62220
57 4228 622 3605 58615
58 4228 586 3641 54974
59 4228 550 3678 51296
60 4228 513 3715 47581
61 4228 476 3752 43829
62 4228 438 3789 40040
63 4228 400 3827 36213
64 4228 362 3865 32348
65 4228 323 3904 28444
66 4228 284 3943 24501
67 4228 245 3983 20518
68 4228 205 4022 16496
69 4228 165 4063 12433
70 4228 124 4103 8330
71 4228 83 4144 4186
72 4228 42 4186 0

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