APPRAISAL OF COMMERCIAL DAIRY UNIT

FARM MODEL OF DAIRY UNIT OF 10 CROSSBRED COWS

TECHNO-FINANCIAL ASSUMPTIONS
Components:Type Of Animal
No of animals
Cost of one animal( including transportation and insurance) (Rs/-)
Average milk yield (liters/day)
Selling price of milk/lit (Rs/-)
Sale of manure/animal/year (Rs/-)
Culled value/ animal at the end of fifth lactation (Rs/-)
Veterinary aid /animal/year
Rate of interest (%)
Residual value of shed and equipment to be taken(yes/no)
Repayment period(years)
% Of net surplus towards repayment

CB. Cows
10
30,000
12
13
500
8,000
750
12
N0
3
80

Feeding Schedule:Lactation Period

Quantity(Kg)
Cost
I. Concentrate Feed (Rs.10/Kg)
For milk (1 kg/3 litre)
For Maintenance+preg.
ii. Green Fodder
iii. Dry Fodder(Rs.3/Kg)

4
1
20
5

40
10
0
15

Dry Period &

Quantity(Kg)
Cost
0
1.5
20
5

Particulars
A. Capital Cost
Cost of Crossbred Cows including transport cost & Insurance cost (6 animals; Rs.
30,000 each)
Shed for adult animals (40 sq.ft/animal; Rs. 80/sq.ft)
Equipment cost
Cost for fodder cultivation(for 1 acre)
B. Working capital
Cost of Feeding first animal for one month
Total

0
15
0
15
Cost (Rs.)
3,00,000
48,000
20,000
15,000
12,000
3,95,000

Based on the Norms the funding for dairy unit was as follows
Total Project Cost
3,95,000
Margin Money (Borrower/company)
75,000
Bank Loan
3,20,000

Year
I
II
III
IV
V

Based on an inter-calving period of 400 days (280 lact.days + 120 dry days), the
lactation chart for the animal farm is given below.
I Batch
II Batch
Total
Lactation days
Dry days
Lactation days Dry days
Lactation days
Dry days
1250
575
720
0
1970
575
1400
425
1225
600
2625
1025
1400
425
1225
600
2625
1025
1400
425
1225
600
2625
1025
1275
550
1225
600
2500
1150

Projected Profitability:Particulars
Income:
By sale of Milk
By sale of Manure
Total
Expenditure:
concentrated feed
Dry Fodder
On Veterinary Aid
Total
Net Income

I year

II year

III year

IV year

V year

3,35,400
3,750
3,39,150

4,09,500
5,000
4,14,500

4,09,500
5,000
4,14,500

4,09,500
5,000
4,14,500

3,90,000
5,000
3,95,000

1,01,250
40,875
5,625
1,47,750
1,91,400

1,41,500
54,750
7,500
2,03,750
2,10,750

1,41,500
54,750
7,500
2,03,750
2,10,750

1,41,500
54,750
7,500
2,03,750
2,10,750

1,36,500
54,750
7,500
1,98,750
1,96,250

Financial Analysis:Particulars
Cost:
Capital Cost
Recurring cost
Total Cost
Benefits
Residual value
Total Benefit
Net Benefit
Discount Factor at 15 %
BCR
NPV
IRR

I year

II year

III year

IV year

V year

3,95,000
1,47,750
5,42,750
3,39,150

2,03,750
2,03,750
4,14,500

2,03,750
2,03,750
4,1,4500

2,03,750
2,03,750
4,14,500

3,39,150
-2,03,600
0.87

4,14,500
2,10,750
0.76

4,14,500
2,10,750
0.66
1.42: 1
3,78,727
>50% (98.93 %)

4,14,500
2,10,750
0.57

1,98,750
1,98,750
3,95,000
80,000
4,75,000
2,76,250
0.50

Repayment Period:Year
1
2
3
4
5

Loan
Outstanding
3,20,000
2,24,420
1,03,825
0
0

Interest
(12%)
38,400
26,930
12459
0
0

Net
Profit
1,91,400
2,10,750
2,10,750
2,10,750
2,76,250

Repayment
of Principal
95,580
1,20,595
1,03,825
0
0

Total Repayment
1,33,980
1,47,525
1,16,284
0
0

Net
Surplus
57,420
63,225
94,466
2,10,750
2,76,250