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PROJECT REPORT OF A LARGE-SCALE CROSSBRED COW DAIRY FARM

PREPARED BY

Dr. Vivek M. Patil


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

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

vishnukumar thirumal
coimbatore
30
3,048,000
2,286,000
762,000
5
12

Techno-Economic Parameters
Cost of each cow (Rs.)
Average daily milk yield of each cow (lit)
Sale price of milk (Rs./lit)
Irrigated land required for fodder production (acres)
Cost of construction of cow 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.

Lactation Chart
(cows are purchased in 2 batches at an interval of 5-6 months)
Year 1
No. of
animals
First Batch
15
Second Batch
15

40,000
10
30
6.00
400
250
200
0.40
3.00
14.00
1000
1000
4
36,000
8.00

in milk

Total (days)

4500
2700
7200

Daily
Requirement
Rate/kg in milk
dry
Green fodder 0.40
30.00
25.00
Dry fodder 3.00
4.00
7.00
Concentrates 14.00
4.33
1.00
Total (Rs)

in milk
86,400
86,400
436,800
609,600

Year 2
dry

in milk

Year 3
dry

975
0
975

4500
4500
9000

dry
9,750
20,475
13,650
43,875

in milk
108,000
108,000
546,000
762,000

in milk

Year 4
dry

975
975
1950

4500
4500
9000

dry
19,500
40,950
27,300
87,750

in milk

Year 5
dry

975
975
1950

4500
4500
9000

in milk
108,000
108,000
546,000
762,000

dry
19,500
40,950
27,300
87,750

in milk
108,000
108,000
546,000
762,000

Specifications Phy. units


30
sq. ft.
2400
sq. ft.
1200
sq. ft.
300
1 set
1 set
1 set
1 set
30
1 set
acres
6
30

Unit cost
40,000
400
250
200
300,000
75,000
60,000
45,000
500
3,000
500
Total

Total
1,200,000
960,000
300,000
60,000
300,000
75,000
60,000
45,000
15,000
18,000
15,000
3,048,000

in milk

975
975
1950

4500
4500
9000

dry
19,500
40,950
27,300
87,750

in milk
108,000
108,000
546,000
762,000

dry
975
975
1950

Feed and Fodder


Year 1

Year 2

Year 3

Year 4

Investment Cost
Cost of animals
Construction of cow 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

Year 5
dry
19,500
40,950
27,300
87,750

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

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

Years
III

IV

3,048,000

Total

609,600
43,875
30,000
30,000
48,000
144,000
3,953,475

762,000
87,750
30,000
30,000
48,000
144,000
1,101,750

762,000
87,750
30,000
30,000
48,000
144,000
1,101,750

762,000
87,750
30,000
30,000
48,000
144,000
1,101,750

762,000
87,750
30,000
30,000
48,000
144,000
1,101,750

Total

2,160,000
5,148
0
0
0
2,165,148

2,700,000
6,552
0
0
0
2,706,552

2,700,000
6,552
0
0
0
2,706,552

2,700,000
6,552
0
0
0
2,706,552

2,700,000
6,552
990,000
247,500
600,000
4,544,052

0.91
3,594,068
1,968,316
4,139,742
1.61
0.67
-1,788,327
-1,192,218
90%

0.83
910,537
2,236,820

0.75
827,761
2,033,473

0.68
752,510
1,848,611

0.62
6,768,977
684,100
2,821,499 10,908,719

0.44
1,604,802
713,245

0.30
1,604,802
475,497

0.20
1,604,802
316,998

0.13
3,442,302
453,307

2 Benefits
Sale of milk
Sale of gunny bags
Depreciated value of buildings
Depreciated value of equipments
Closing stock value

3
4
5
6
7
8
9
10
11

II

766,829

Repayment Schedule
Year
I
II
III
IV
V
Capital Recovery Factor

Income
2,165,148
2,706,552
2,706,552
2,706,552
2,706,552

Expenses
905,475
1,101,750
1,101,750
1,101,750
1,101,750

Gross
Surplus
1,259,673
1,604,802
1,604,802
1,604,802
1,604,802

Equated
Annual
Installment

621,792
621,792
621,792
621,792
621,792

0.27

Date : 5/5/2015 20:16:08


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 at dr.vivekmpatil@gmail.com
or your nearest Veterinarian.

Net Surplus
637,881
983,010
983,010
983,010
983,010