Points for consideration – 100 Cow Project

The following Synopsis has been made in accordance with the following criteria.
The actual Farm will comprise of 100 animals in a place which you already have
(Cost not considered).
The animals will be housed in the best conditions with labour involved or with
the latest Milking Techniques employed for the Procurement of Clean & quality
Milk.
In the following Synopsis; certain assumptions have been taken into account viz.
1. The farm will comprise of cows with previous track records (if & where
possible) only so as to improve the genetic potential & optimize
performance.
2. The cost of animal is around Rs. 30 - 35,000/- & will have milk @ 4500-5000
litres per lactation ; which is about 15 litres per day for a period of 300
days.
3. It will be ensured that minimum 60 - 65% of the animals will always be in
Milking.
4. The Farm will initially hold 100 cows & 85 calves (85% newborns usually
survive).
5. The actual figures for the cows in Feeding & management will number
about 130 as 3 calves usually account for ONE cow in terms of Feeding
Expense.
6. Feeding cost is taken @ Rs. 8 - 9 per litre of milk & has to be considered for
130 animals for a period of 450 days. ( Calf to calf ) ( Calculations taken @
Rs.8/litre)
7. Intercalving period has been taken as 14 – 15 months i.e. 450 days which
we should try & reduce using GMP (Good Manufacturing Practices).
8. Veterinary (Clinical & Medical) Expenses will be about Rs. 80 / animal
/month.
9. Mineral Mixture will be fed to all the animals @ 5 gms /Litre of milk the
minimum being 50 gms / day per animal. (Average being 70 gms/day
throughout the Cycle).
10. Deworming (every 3 months) & Vaccination will be carried out routinely.
 11. Miscellaneous cost will be around Rs. 5 / day / animal (includes the A.I
services).
12. Insurance is @ 3% & will be done regularly.
13. The Advisor Fees have not been SHOWN in Economics & will
be additional.

No Considerations for 450 days No Rate Cost( In

Lacs)
A Capital costs :-
Purchase of Cows 10 30,0 35
0 00
Construction of Sheds / Godowns / 20,0 20
Labour Quarters etc ( approx/Cow) 00
Milking Machine / Automization Negotiabl 45
e
Laboratory Optional 5
Milking cans/Chaff Cutter/ 5
Generator/
Tanks (Overhead)/ Mixer etc.
Total Capital Cost 110

B Administrative Costs :-
Farm Manager 1 20,0 3
00
Livestock Supervisors 2 6,00 1.8
0
/A.I.Technicians
Labour 12 3,00 5.4
0
Office Expenses 5,000 0.75
Transport ( Vehicles) 8,000 1.20
Miscellaneous Expenses 5000 1.20

Total Salaries & Expenses 13.35

• Equipment costs can be negotiated.

• Salaries are taken on higher side & can be reduced.
• Cost of Vehicles has not been taken into consideration as they will be on
installments.
• Office Expenses include Tel & Electricity expenses @ Rs. 5,000 pm.
• All expenses can be reduced with Good Manufacturing Practices.

Sr.N Considerations for 450 days No Rate Cost ( In

o of Lacs)
head
s
C Recurring Costs :-

1 Feeding 130 120/co 70.20

w
2 Mineral Mixture 130 100/kg 4.095
3 Deworming & vaccinations ( 5 185 50 0.463
time ) /time
4 Insurance (3% yearly = 100 1110 1.11
3.7/450 days)
5 Veterinary Medicines 100 80 /mth 1.2
6 Miscellaneous 185 5/day 4.16

Total recurring Expenses 81.228

Total Project Cost for 450 days A+B+C = 204.578

PLEASE DO NOTE :

A : Capital Cost : Only needed once & is depreciable.

B : Administrative Costs : is a fixed variable & will be under control for at least
one cycle.
C : Recurring Costs : This will be always & liable to fluctuate everyday due to
weather, rains, natural calamities, transport delays, unavailability of ingredients,
erratic supplies & various other factors.
It is also crucial to note that these practices for feeding have to be
inculcated in the labours from day ONE. A small added expense of Re.
1/day/animal will incur losses to a tune of Rs. 58,500/cycle of 450 days.

At the same time a saving of 1% on feeding can help us SAVE Rs. 70, 020/-
cycle.
We can definitely save 3-5% if good Manufacturing Practice is followed.

In the initial stages it will be imperative to undertake:

1. a survey of the Land :

a. Ideal location of all units viz
Godown, various types of Pens for calves, Isolation unit, Grass growing,
Laboratory (Clinical/Nutritional) etc. has to be demarcated.

2. Take a tour to various farms in Maharashtra/ other places so as to get a

clear idea of the construction types / location / directions & various other
parameters.

The Dairy Farms (in Maharashtra) to be visited are:

a. Chakan : Parag Milk ( Gowardhan dairy) for the size.
b. Karjat : Dairy farm ( now almost closed down ) but idea of the
construction of Free stall system done with help of Israel Consultants.
c. Baramati : S. Sorte farm ; For the economics of the construction etc.
d. Chitale farm : for the Milking Machine / automization set up.
 e. Satara : Ganesh Deshmukh farm for other (Horticulture/Aqua farm)
ideas.
f. Islampur : Thakur farm for the Milking machine idea.
g. Bangalore : To look at the best source of Cow Purchase.
h. Sonai : Agriculture College Farm of buffaloes for the ventilation ideas.

Approximately a day will be required to visit each & every farm wherein
it will be essential to Photograph & Video graph the whole so as to get a
clear idea as to how the sheds will be built. All this would entail a Touring
of minimum 8 days.

3. Then it will be seen to arrange for the gradual purchase (if possible &
feasible) of the animals form various locations viz. Baramati, Akluj,
Banglore, Manchar, Narayangaon, Shirur, Shrirampur, Loni & A. Nagar
etc.

Major Points :-
1. Purchase of Cow :
2. Availability of Fodder
Green – Planning for legume, non leguminous, Seasonal, schedule
Requirement /cow, for all
Dry - Requirement, availability, season for purchase
Cheaper availability, round the year/seasonal
Storage facility
Control and check on spoilage
3. Animal purchase –
Lactation Completed - I, II lactation preferred
Stage of pregnancy - 7-8 month Pregnant / Freshly calved depending
upon
Transport conditions.
Body Condition Scoring – Systematic
Source - Reliable
Previous Records
Lactation
Disease
Health
Preventive Inoculation Details
Hoof History
4. Animal Selection – Criteria
a. Insurance with PTD coverage (negotiation in Premium)
b. Quarantine 21 days
c. Identification – Tagging
d. Preventive Inoculation Schedule Stock of Vaccine, Source, Schedule.
5. Feeding & Care :
Nutritional Requirement based on different level of Pregnancy
Last Trimester
Last month
Pre Calving
Calving as well as Post Calving
Nutritional Requirement based on : – Different stages of lactation
Level of production
Body Condition
Close Watch on fulfilling the requirement of Individual Animal
6. Timing - Feeding Schedule
Watch on fulfilling requirement of the animal
Detection of unhealthy animal
7. Health – for optimum production
Body Scoring
Loss of weight
Negative energy balance
Corrective measures
Sample study (as a regular feature) – Group of animals, Intensive care,
regular
8. Management feeding, health – changes based on observations of study of
a. Calving Interval :
b. Individual animal - Post calving gynecological health of individual
Proper recording, follow-up
Trained heat detector
Heat detection 30 – 50 days post calving
Observation of next estrus,
Onset of Heat - Timings
Proper time of AI
Grouping of animals not showing heat 30- 50 days post
calving
Gynecological examination
Suitable synchronization programme with skilled
Veterinarian
Future Planning for breeding
Breed, exotic inheritance level, superior Germplasm,
Quality FSD
Proper technique and procedure of AI
Recording all breeding information
Follow-up 21/42/63 days post AI for signs of repeat heat
Pregnancy follow-up at earliest possible date & its
confirmation
c. Grouping of Problem Breeders – arrangement for examination by
Gyanecologist

Grouping of the animals

Production Problem Breeders
Stage of lactation Sample Study ( by changing the
group )
Stage of Pregnancy

Close Monitoring of the following for Optimising :

• Nutritional requirements ( Fodders /Silages)
• Supplement requirement
• Concentrate Need at different stages
• Feeding Management
 • Breeding Management
• Health Control
• Mastitis Control
• Stock for culling
• Lactation curve – Individual & group
• Daily Economic Calculation

Mastitis Control:
• Hygiene in the shade
• Udder hygiene
• Cleanliness, hygiene, care & disinfection before & after milking
• Nutrient requirement in relation to mastitis
• Periodical Test for Mastitis detection
• Female Calf Rearing needs special attention & focus.
• Teat dipping

PRODUCTION AND MANAGEMENT PRACTICES

Success in Dairy Farming is not an event that comes automatically, to be
successful one must have a goal, there must be plans on how to attain that goal,
and there is usually much mental and physical effort expended in working
towards the goal. Top milk production will not be realized unless the best
management practices are used.

There are TEN groups of factors that are important.

It is possible for us to bring the farm into Profits by monitoring in:

1. Feeding Management
2. Breeding factors;
3. Mastitis control and Milking practices factors;
4. Stress reduction factors
5. Health Management
6. Reproductive Management
7. Optimization of Milk Yield by reducing the production cost.
8. Undertaking (Female) Calf rearing project
9. Labour Management factors.
10. Improving the yield from wastes viz. Dung (Vermicomposting OR
Composting with chemicals) & sale of Urine.

We can certainly control few of the above into account the following Measures :-

1. The health status (w.r.t. J.D, T.B & Brucellosis etc.) has also to be checked.
2. The entire stock has to be purchased based upon this evaluation.
3. Similar measures have to be applied to newly introduced cows.
4. Feeding parameters to be checked w.r.t.
a. Balancing of feed as per actual requirements.
b. Feeding of concentrates as compared to production, checked.
c. Feed ingredients can be changed so as to bring down Costs.
d. Grasses can be grown scientifically so as to get optimum production.
e. Chaffing has to be undertaken to maximize digestion process.
 f. Metabolic Profiling can be undertaken so that mineral status can be
known.
5. Evaluation of Sub-clinical status can be undertaken.
6. Parasitic evaluation is also essential so that gastrointestinal worms or Liver
fluke infestation can be ruled out thus maximizing productivity.

DAIRY RECORDS - NEED AND USE

Dairy Management requires daily decisions about every cow in the shed. These
decisions make the difference between success and failure. The recordkeeping
program will be designed in a way to provide individual cow and total herd data
so that we can make decisions based on that actual information.

By keeping and using records we will be in the best position to:

1. Optimize feed for the maximum production
2. Breed genetically superior & better performing cows
3. Increase milk production per cow
4. Lower costs of production in all aspects.
5. Increase net profits

Goals

Goals that are realistic and made possible by adopting a reproductive health
program are:
1. Average calving interval between 12 to 13 months.
2. Breeding efficiency below 1.5 services per conception and less than 30
percent returns
after 60 days.
3. Post-partum interval to first heat between 50 to 60 days.
4. Post-partum interval to first breeding no greater than 75 to 90 days.
5. Repeat breeders of 5 to 10 per cent or less.
6. Abortions of 1 to 2 percent or less.
7. Retained placentas of 5 to 10 percent or less.
8. Metritis of 5 to 10 percent or less.
9. Cow Replacement percentage below 10 percent.
10. Repeat Breeders less than 3 - 5 %.

Responsibilities & Duties of the Advisor :

1. Coordinate & execute the functions of all the various agencies during development.
2. Supervise/Guide the Construction of the Dairy Shed/Calf rearing Unit/Cattle Feed
Unit/others prerequisites for the Dairy farm.
3. Help in selection & Training of all the Technical/Non Technical people necessary.
4. Assisting in Selection & Purchase of animals from various places so as to eliminate the
introduction of diseased animals (T.B/J.D/Brucellosis)
5. Help in setting up (if required) the Cattle Feed unit for captive & other consumption.
6. Set up a good Laboratory handling the Clinical as well as Nutrition aspects.
7. Help in the analysis of the Raw material as well as assist in the procurement of best
quality: Mineral Mixtures/Nutritional Supplements/ Milking & Laboratory equipment’s
etc.
8. Procurement of various kinds of raw materials at best Prices.
9. Help in Procurement of various kinds Machinery for Automization at best Prices
10. Design / Implement the Feed to get maximum productivity (Feed Formulations).
11. Monitor the complete running of the Farm by advising on Good Management
Practices, which will help in optimizing production thereby Profitability.
12.Optimization of the herd performance. (Computer Software will do the Analysis of
Profit & loss account; which will be installed at the Farm & be connected by LAN.)
13.Design & develop Software for the Record Keeping of animals at the farm. With help
of this any individual animal can be evaluated for any parameter w.r.t Milk yield, Heat,
Conception, Calving practices, Intercalving period etc. ( Will be developed within 3
months & before the animals are purchased ).
14.Help maintain Records as well as profitability of the total Farm with the help of
Computer software (This particular Software will have to be developed as per our
specific requirements ; possible to do so within 3 months.)
10. Help in Management Information Systems of all types pertaining to dairy farming with
a
special emphasis on Nutrition, Health Management, artificial Insemination, labour
Management & Optimization of profits by way of introducing methods to sell every
possible waste like Dung & Urine etc.
11. Arrange for the services of other Professionals in all possible areas where necessary.
12. Any other functions associated with the optimization of the farm.
14. The period to implement the project (to its desired goal) will require about 2-3 years.
15. Visit to the Farm/other places at least 1-2 times a month for 1 - 2 days to oversee.

To run the Farm Successfully it will be essential to follow the instructions on :

1. Day to day Management of the Farm.
2. Vaccination & Deworming Schedules.
3. Insurance of animals.
4. Purchase of raw materials.
5. Purchase of Nutraceuticals / any other products required for the Farm.
6. Total Cooperation & Non-interference from all & sundry.
7. Discuss with the CEO, Directors & Officials as & when needed for optimization of the
Dairy
8. To supervise & monitor the activities of all workers on the Dairy Farm.
9. Necessary advice on employing Technical hands.
10. Fix up the necessary schedules of all & sundry.
11. Liaison & coordination of all the functionaries w.r.t their job responsibilities etc.

ADVISORY CHARGES:
The total Project Cost (for 450 days)
is Rs. 204.578 Lacs. If we don’t opt for Mechanization then the cost will Decrease
by about 50 Lacs. The control of actual recurring expenses will help in the
Savings as well as optimization of animal performance will be made possible.

The primary function of Advisor will be to streamline the Recurring costs as well
as control & reduce these costs without hampering productivity as to the
Company’s demands & wants pertaining to the quality of milk. All these practices
once inculcated will be applicable through out for all further expansions as well as
years to come by.
The Advisor fees will be for a specified time & will result in the wellbeing of the
existing lifetime of the cattle (by ensuring maximum Productivity) as well as
improve Economics.

The Fees will be 6.25 OR 12.50% (depending upon mode : Cash/Cheque of

Payment) of the total cost.

Thus Net Fees (@ minimum of charges) for Advisor Services will be Rs. 12, 78,
612/- only NET paid over a period of 15 months.

Before the onset of the project as well as any other outside Tours &
assignments (Surveys/Farm visits/Tours etc) besides Farm work will be charged
as follows :-

A. Travel Allowances: This will be in form of minimum II ND AC Train

Fare/Air Fare etc. (Applicable to & from Mumbai)

B. Daily Allowances: A sum of Rs. 9999/- per day (Nine thousand Nine
hundred & ninety nine only) will be paid to cover the miscellaneous
charges.
This will be applicable on day of travel too.

C. The Lodging & Boarding arrangements will be paid as per actual.

This 100 animal Farm; it will be seen that around 66 will always be in
milking.

This will give about 1000 litres of milk daily which sold @ Rs.12 / litre will bring
Rs.12, 000 per day which means Rs. 43, 80,000/- in ONE year & Rs. 54, 00,000
per cycle.

In the Report ; certain considerations have also to be taken into account

viz.
Feeding costs can be reduced if we have our own plantations of variety of grasses
viz. Lucerne, Berseem, Napier etc. Additionally.

Re.1/- increase in Milk selling price will give us Rs. 4, 50, 000 per cycle MORE.

We can try to reduce it further by following GMP. At the same time:-

 Insurance is approx. @ 3 % of the cost price. It is very much possible to

negotiate it @ lower rates.
 Veterinary Expenses are taken @ Rs. 80 / animal /month which are at high
level but can be reduced considerably as if good Managemental practices are
used; we can ensure that animals do not fall sick & Treatment expenses will
be greatly reduced & Productivity as well as profitability will be improved.
  Mineral Mixture is taken @ 75 gm/day/per animal @ Rs. 100/kg. The cost of
Mineral Mixture can be negotiated.

Please note that During Calculations of Reports ; I always take

Expenses on HIGHER side & Income on LOWER side.
1. Our primary goal would be to reduce the Intercalving period taken at 450
days. If this is reduced by 30 days then we will be saving Rs. 2, 89, 590/- .
2. This report is also concerned about the expenses (recurring) & Training
(Practical as well as Theoretical) of staff, Labour & Doctors as well.

3. Additional Receipts would include: Sale of male calves & sale of Gobar
(Manure) about 60 Tons per month, which sold @ Rs. 500/Ton will fetch us
about Rs. 30,000/- per month which is about 4, 50, 000/- per cycle.
However if this is converted into Vermicompost is done, and then would
It would fetch us Rs. 10, 00, 000/- per cycle
.

However a few points I would like to add with your kind permission:-

1. The break even in Dairy Business is in 3 - 4 years not in 1 - 2 years.

2. The Advisor Fees are one time (ONLY ) which should be accounted for
coming 15 years at the least & the Training will come handy for all the
oncoming years as well as help increasing the herd strength.

3. The Depreciation on Construction, Equipments & Livestock as well as the

Subsidy has not been accounted for & will be an additional benefit.

Calculations for Feeding :-

In the above report it has been mentioned that the feeding coats have been
taken at an average which has been considered at a rate of Rs. 8/- per litre. If
we do calculations realistically then it will be:-

 Each cow will consume ( during Lactation : when its giving milk; 300days) :
Green grass / Silage : 22 Kgs : 33.00
Dry Fodder : 6 Kgs : 21.00
Cattle Feed : 6 Kgs Premium : 60.00
Mineral Mixture : 75 gms per day. : 7.50

Total Cost for 300 days for 100 Milking animals: 121.50 X 100 X 300 = 36,
45,000.00

 Each cow will consume ( DRY PERIOD : when its NOT giving milk; 120-
150days) :
 Green grass / Silage : 22 Kgs : 33.00
Dry Fodder : 6 Kgs : 21.00
Cattle Feed : 1 Kg Normal : 8.00
Mineral Mixture : 50 gms per day : 5.00

Total Cost for 150 days for 100 Milking animals : 67 X 100 X 150 =
10,05,000.00

 The calves will also eat (in cost) as to what the animals in dry period are
eating. In a 100 cow farm the calves will be about 85 which is about 23 adult
animals for feeding.

Green grass / Silage : 22 Kgs : 33.00

Dry Fodder : 6 Kgs : 21.00
Cattle Feed : 1 Kg Normal : 8.00
Mineral Mixture : 50 gms per day. : 5.00

Total Cost for 450 days for 23 animals ( 85 calves ) : 67 X 23 X 450 =

6,93,450.00

The costs are considered at today’s Market rate:-

Todays Costs (If everything is purchased from Market ):

 Green grass @ Rs.1500/Ton,

 Dry Fodder @ 3500/Ton,
 Cattle Feed : Normal @ 8000/Ton & Premium Rs.10000/Ton.
 Mineral Mixture : Rs. 100.00/Kg

The total cost of feeding animals will be about Rs. 53, 43, 450.00 per
Cycle.
This is about Rs.
96.53 per day.

This can be reduced further by

F) Good Manufacturing Practices :-

Expenses ( per 123 animals for 450 days )

Green Fodder 22 X 123 X 450 X 1.25 * 15,22,125.00
Dry Fodder 6 X 123 X 450 X 2.50 ** 8,30,250.00
Cost of Concentrate 6 X 100 X 300 X 18,00,000.00
10.00 ***
Cost of Concentrate 1 X 123 X 450 X 8.00 4,42,800.00
***
Mineral Mixture .070 X 123 X 450 X 90.00 3,48,705.00
****
Total expenses on Feeding 49,73,880.00

Feeding Expense per animal / Day in 89.86

Rupees =

* Green Fodder can be purchased in bulk so that costs will decrease.

** Dry Fodder can be purchased at a time thus cost savings.
*** Concentrates fed for 300 days & dry days will be fed @ an average of 1 Kg Normal
per day only.
***** Mineral Mixture fed @ 75gms for 300 days & later on @ 50 gms per day. Thus the
average feeding per day is only 70 gms. Mineral Mixture prices can be negotiated.
# With Good Management practices all other costs can also be reduced.
## Miscellaneous Expenses can also be reduced with GMP.
Labour & Interest costs have been taken on higher side

G) Further Reduction possible viz :-

Expenses ( per 123 animals for 450 days )

Green Fodder 22 X 123 X 450 X 1.00 * 12,17,700.00
Dry Fodder 6 X 123 X 450 X 2.50 ** 8,30,250.00
Cost of Concentrate 6 X 100 X 300 X 18,00,000.00
10.00 ***
Cost of Concentrate 1 X 123 X 450 X 8.00 4,42,800.00
***
Mineral Mixture .070 X 123 X 450 X 75.00 2,90,587.50
****
Total expenses on Feeding 45,81,337.50

Total Expenses per animal per day 82.77

* Green Fodder can be cultivated / Contract farming can be done for the procurement
of these grasses ; then cost will be further reduced even to a tune of Rs. O.75 per Kg :
even a saving of 25 paise /kg will help to save Rs. 3, 04, 425.00
** Dry Fodder can be also be purchased similarly or at a time thus cost savings.
*** Concentrates fed for 300 days & dry days will be fed @ 1 Kg Normal per day only.
**** Mineral Mixture prices can be negotiated by having it Manufactured on our own.
# With Good Management practices Labour costs can be reduced.
## Veterinary & miscellaneous costs will also be reduced as the animals will not be
falling sick every now & then due to correct feeding Practices.

H) Further Reduction possible by

* Green Fodder has to be cultivated / Contract farming will be undertaken then the cost
per Kg will be reduced to O.50 paisa per Kg.

** Dry Fodder can also be purchased at a time thus can be had @ Rs.2.00/-kg.
*** Concentrates fed in Dry period are only 2Kg /day for last 2 months only which is =
120 Kgs in 60 days which is = 0.266 Kg/day (rounded to 0.3) for the 450 days.

**** Mineral Mixture prices can be manufactured (If minimum Quantity is more than 20
Tons at a time then we can get it @ Rs. 60/- per Kg.)

At the same time the income from Manure everyday is = Rs. 7.50 /animal as the
cow dung will be more than 15 kg /day /animal & is sold @ Rs. O.50/kg.

In a farm of 100 animals we will have 85 calves out of which about 40 will be
Females which will kept & other 45 ( males) can be sold @ Rs. 500/- minimum thus we
can get about 22,500/- per year which is = Rs.0.50 /animal /day.

Expenses ( per 123 animals for 450 days )

Green Fodder 22 X 123 X 450 X 0.50 * 6,08,850.00
Dry Fodder 6 X 123 X 450 X 2.00 ** 6,64,200.00
Cost of Concentrate 6 X 100 X 300 X 18,00,000.00
10.00 ***
Cost of Concentrate 0.3 X 123 X 450 X 1,32,840.00
8.00 ***
Mineral Mixture .070 X 123 X 450 X 60.00 2,32,470.00
****
Total expenses on Feeding 34,38,360.00

Total Expenses per animal per day 62.12

Sale of Manure per day per animal 7.50

Sale of calves 0.50

Feeding costs can be Further OFFSET by 8.00

Actual Feeding cost per day per animal 54.12

We have done all the calculations on taking the Intercalving period as 15 months
which can be brought down to 12 months also. You may please do recalculate it
by considering only 14 months i.e. 420 days instead of 450 days.