PROJECT REPORT OF A LARGE-SCALE BUFFALO DAIRY FARM

PREPARED BY

Dr. Vivek M. Patil

Assistant Professor
Dept. of Livestock Production Management, Veterinary College, Bidar
Karnataka Veterinary, Animal & Fisheries Sciences University
http://sites.google.com/site/viveklpm/
A

Overview
Name of the Proprietor
Address
Unit size
Project Cost (Rs.)
Bank Loan (Rs.)
Margin Money (Rs.)
Repayment period (years)
Loan rate of interest (%)

Sagar Jayram Raut

Andhaner, Tal. Kannad, Dist. Aurangabad
20
2,032,000
1,727,200
304,800
5
12

Techno-Economic Parameters
Cost of each Murrah buffalo (Rs.)
Average daily milk yield of each buffalo (lit)
Sale price of milk (Rs./lit)
Irrigated land required for fodder production (acres)
Cost of construction of buffalo sheds (Rs/sq.ft.)
Cost of construction of young stock sheds (Rs/sq.ft.)
Cost of construction of store rooms (Rs/sq.ft.)
Cost of production/purchase of green fodder (Rs/kg)
Cost of production/purchase of dry fodder (Rs/kg)
Cost of concentrate feed (Rs/kg)
Cost of veterinary aid per animal per year (Rs.)
Cost of electricity and water per animal per year
(Rs.)
Rate of livestock insurance premium (%)
Annual wages of each farm labourer (Rs.)
Sale price of empty livestock feed gunny bags (Rs.)
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.

40,000
8
22
4.00
400
250
200
0.20
2.00
13.00
1000
1000
4
50,000
8.00

Lactation Chart
(buffaloes are purchased in 2 batches at an interval of 5-6
months)
Year 1

First Batch
Second Batch

No. of
animals
10
10

in milk

Total (days)

Feed and Fodder

Green fodder
Dry fodder
Concentrates

Daily Requirement
in milk
dry
27.50
22.50
4.00
5.00
4.70
1.50
Total (Rs)

Year 1
in milk
26,400
38,400
293,280
358,080

1200
0
1200

dry
5,400
12,000
23,400
40,800

Investment Cost
Cost of animals
Construction of buffalo shed
Construction of young stock sheds
Construction of stores/misc rooms
Cost of milking equipment
Cost of liquid milk storage equipment
Cost of fodder cutting equipment
Cost of standby power supply
Cost of misc. equipment
Initial fodder cultivation cost
Misc. expenses

Rate/kg
0.20
2.00
13.00

3000
1800
4800

Year 2
dry

Specifications Phy. units

20
sq. ft.
1600
sq. ft.
800
sq. ft.
200
1 set
1 set
1 set
1 set
20
1 set
acres
4
20

Cash Flow Analysis

I
1 Costs
a) Capital cost
b) Recurring cost
Feeding during lactation period
Feeding during dry period
Veterinary aid
Cost of electricity & water
Insurance
Labour wages

Years
III

IV

2,032,000

Total
2 Benefits
Sale of milk
Sale of gunny bags
Depreciated value of buildings
Depreciated value of equipments

II

Unit cost
Total
40000
800000
400
640000
250
200000
200
40000
200000
200000
50000
50000
40000
40000
30000
30000
500
10000
3000
12000
500
10000
Total 2,032,000

358,080
40,800
20,000
20,000
32,000
150,000
2,652,880

447,600
81,600
20,000
20,000
32,000
150,000
751,200

844,800
3,898
0
0

1,056,000
5,088
0
0

447,600
81,600
20,000
20,000
32,000
150,000
751,200

447,600
81,600
20,000
20,000
32,000
150,000
751,200

447,600
81,600
20,000
20,000
32,000
150,000
751,200

1,056,000 1,056,000 1,056,000

5,088
5,088
5,088
0
0
660,000
0
0
165,000

in milk
3000
3000
6000

Year 2
in milk
33,000
48,000
366,600
447,600

Year 3
dry
1200
1200
2400

dry
10,800
24,000
46,800
81,600

in milk
3000
3000
6000

Year 3
in milk
33,000
48,000
366,600
447,600

Year 4
dry
1200
1200
2400

dry
10,800
24,000
46,800
81,600

in milk
3000
3000
6000

Year 4
in milk
33,000
48,000
366,600
447,600

Year 5
dry
1200
1200
2400

dry
10,800
24,000
46,800
81,600

in milk
3000
3000
6000

Year 5
in milk
33,000
48,000
366,600
447,600

dry
1200
1200
2400

dry
10,800
24,000
46,800
81,600

Closing stock value

Total
3
4
5
6
7
8
9
10
11

DF @ 10%
Discounted Costs @ 10%
Discounted Benefits @ 10%
NPW @ 10%
BCR @ 10%
DF @ 50%
Net Benefits
Discounted Net Benefits @ 50%
IRR

0
848,698

0
1,061,088

0
0
400,000
1,061,088 1,061,088 2,286,088

0.91
2,411,709
771,543
13,466
1.00
0.67
-1,804,182
-1,202,788
< 50%

0.83
620,826
876,932

0.75
564,388
797,211

0.68
0.62
513,080
466,436
724,737 1,419,481

4,576,439
4,589,905

0.44
309,888
137,728

0.30
309,888
91,819

0.20
0.13
309,888 1,534,888
61,212
202,125

-709,904

Repayment Schedule

350
Year
I
II
III
IV
V

Capital Recovery Factor

Income
848,698
1,061,088
1,061,088
1,061,088
1,061,088

Expenses
620,880
751,200
751,200
751,200
751,200

Gross
Surplus
227,818
309,888
309,888
309,888
309,888

Equated
Annual
Net Surplus
Installment

469,798
469,798
469,798
469,798
469,798

-241,981
-159,910
-159,910
-159,910
-159,910

0.27

Note :
Data in highlighted cells are outside the parameters of this sheet. Please modify and re-enter the same in the Form.
Disclaimer :
The data provided in the Project Report is for reference purposes and uses standard assumptions. For customized Project Reports please contact the
author or your nearest Veterinary Doctor.

2.7

9.45

8.45