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Dairy farm project report 10 cows

Project report for dairy farm ten cows

Indigenous dairy breed/ cross-bred cow dairy farm

Dairy farming provides an excellent opportunity for self-employment of unemployed youth. It is also an important source of
income generation to small/marginal farmers and agricultural labourers. Since agriculture is mostly seasonal, there is a possibility
of finding employment throughout the year for many persons through dairy farming. Landless labourers. The white revolution of
70’s had made spectacular landmarks in the 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 the 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 the government of India scheme Dairy Entrepreneurship Development Scheme
(DEDS.). Subsidy ceiling is Rs175000/ for general category & Rs233000 for ST/SC category for dairy farm with ten animals.The
farmer from Odisha can avail back-ended capital subsidy 25% for general category (33.33% for SC/ST beneficiaries) under the
government of Odisha scheme Promotion Of Dairy Entrepreneurship (PDE).Subsidy ceiling is Rs175000/ for general category &
Rs233000/ 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 the 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.A vailability of 2 acre of irrigated land is prerequisite for the project

3.C ost of labour has not been taken into consideration since ffull-timelabour 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 ,T wo 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.

Housing for cows

Floor –Pucca, 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 the wall to prevent rain
water from entering cow shade. Roof should be of asbestos, cement asbestos, or tile. the thatched roof can replace asbestos in low
cost housing

TAIL TO TAIL SYSTEM OF HOUSING

ITEMS LENGTH IN METER

MANGER 0.6M

STANDING PLACE 1.5M

GUTTER 0.4M

FEEDING PASSAGE 1.2M ON BOTH SIDE

MILKING PLACE 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.) 300

Cost of equipment per animal (Rs.) 1500

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) 20

Cost of dry fodder (Rs./kg) 2

Rate of interest (%) 12

Repayment period (years) 6

Selling price of milk/litre (Rs./kg) 32

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

Lactation days 280

Dry days 150

DAILY FEEDING AND COST CHART FOR DAIRY COWS

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

Concentrate feed 20 4.5 90 1.5 30

Green fodder 1 20 Home grown 15 Home grown

Dry fodder 4 4 16 5 20

Total 28.5 106 21.5 50

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/ crossbred cows

Project cost Cost. In Rs.

Capital cost

Cow shed for 10 cows 40sq.ft/cow @300/sqft 120000

Calf pen for 10 calves 20 sq.ft./calf @300/sq.ft. 60000

Cost of 10 CB cows with minimum average 10 liter milk yield

350000
/day @35000/cow ( @ 3500/ liter of milk yield/cow)

Cost of transportation @1000/cow 10000

Cost of one chaff cutter electric 25000

Cost of electrification 15000

Cost of single bucket milking machine 30000

Cost of dairy appliances @ 1500/cow 15000

Total 625000

Recurring cost to be capitalized

Cost of feed for first batch of one cows for one month as per
15900
feed chart

Cost of insurance first five animals @5% of animal cost 8750

Cost of fodder cultivation in 2.5 acres of land for first session 30000

Contingency 10350

Total recurring expenditure 75000

TOTAL PROJECT COST 700000

Margin money 10% of project cost 70000

Bank loan 90% of project cost 630000

Particulars Project period

CASH FLOW ANALYSIS. 1 2 3 4 5 6

Feeding during lactation period vide

yearly lactation days and feed cost as 227900 259700 243800 222600 222600 243800
per chart
Feeding during dry period vide dry
days and feed cost as per feed chart 27500 57500 65000 75000 75000 65000
enclosed

Medicine vaccine veterinary aid 20000 20000 20000 20000 20000 20000

Insurance @5% of animal cost /year 17500 17500 17500 17500 17500 17500

Cost of fodder cultivation 60000 60000 60000 60000 60000 60000

Cost of labour 72000 72000 72000 72000 72000 72000

other miscellaneous expenditure 10000 10000 10000 10000 10000 10000

Total 434900 496700 488300 477100 477100 488300

INCOME

Sale of milk @Rs.32/liter during

lactation days with average milk yield 688000 784000 736000 672000 672000 736000
/cow liter/day

Sale of gunny bags 2100 2300 2250 2100 2100 2200

Manure will be utilized in own farm

Value of closing stock of 10 cows

140000
(Depreciation on animal cost
@10%/year)

Value of building

(Depreciation on 72000
building@10%/year)

Value of equipments(Depreciation on
7500
equipments @15%/year)

Total income 690100 786300 738250 674100 674100 957700

Gross profit 255200 289600 249950 197000 197000 469400

Sl no Financial indicators Estimated value Preferred value

1. PW costs @ 15%DF 2339385.97

2. PW benefits @ 15%DF 2814659.92

3. Net Present Worth (NPW 475273.95 Should be+ve

4. Benefit Cost Ratio(BCR) 1.20:1 >1

5. Internal Rate of return (IRR) 30.047 >15%

6. Debt Service Coverage Ratio 1.763 >1.5

Bank loan 630000 grace period 6 months Loan amount at the end of grace period =630000+37800=667800

S.No Monthly Installment Interest Principal Balance

0 667800

1 13056 6678 6378 661422

2 13056 6614 6441 654981

3 13056 6550 6506 648475

4 13056 6485 6571 641904

5 13056 6419 6637 635268

6 13056 6353 6703 628565

7 13056 6286 6770 621795

8 13056 6218 6838 614957

9 13056 6150 6906 608051

10 13056 6081 6975 601076

11 13056 6011 7045 594031

12 13056 5940 7115 586916

13 13056 5869 7186 579729

14 13056 5797 7258 572471

15 13056 5725 7331 565140

16 13056 5651 7404 557736

17 13056 5577 7478 550258

18 13056 5503 7553 542705

19 13056 5427 7629 535076

20 13056 5351 7705 527371

21 13056 5274 7782 519589

22 13056 5196 7860 511730

23 13056 5117 7938 503791

24 13056 5038 8018 495774

25 13056 4958 8098 487676

26 13056 4877 8179 479497

27 13056 4795 8261 471236

28 13056 4712 8343 462893

29 13056 4629 8427 454466

30 13056 4545 8511 445955

31 13056 4460 8596 437359

32 13056 4374 8682 428677

33 13056 4287 8769 419908

34 13056 4199 8857 411052

35 13056 4111 8945 402107

36 13056 4021 9035 393072

37 13056 3931 9125 383947

38 13056 3839 9216 374731

39 13056 3747 9308 365423

40 13056 3654 9401 356021

41 13056 3560 9495 346526

42 13056 3465 9590 336936

43 13056 3369 9686 327249

44 13056 3272 9783 317466

45 13056 3175 9881 307585

46 13056 3076 9980 297605

47 13056 2976 10080 287526

48 13056 2875 10180 277346

49 13056 2773 10282 267063

50 13056 2671 10385 256678

51 13056 2567 10489 246190

52 13056 2462 10594 235596

53 13056 2356 10700 224896

54 13056 2249 10807 214090

55 13056 2141 10915 203175

56 13056 2032 11024 192151

57 13056 1922 11134 181017

58 13056 1810 11245 169771

59 13056 1698 11358 158413

 60 13056 1584 11471 146942

61 13056 1469 11586 135356

62 13056 1354 11702 123654

63 13056 1237 11819 111835

64 13056 1118 11937 99897

65 13056 999 12057 87841

66 13056 878 12177 75664

67 13056 757 12299 63365

68 13056 634 12422 50943

69 13056 509 12546 38396

70 13056 384 12672 25725

71 13056 257 12798 12926

72 13056 129 12926 0

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