PROJECT REPORT OF A SMALL-SCALE CROSSBRED COW DAIRY FARM

PREPARED BY
Dr. Vivek M. Patil
Associate Professor & Head
Livestock Research & Information Centre (Deoni), Bidar
Karnataka Veterinary, Animal & Fisheries Sciences University
http://sites.google.com/site/viveklpm/

A Overview
Name of the Proprietor Pramod Kumar Verma
Address Jaipur
Unit size 20
Project Cost (Rs.) 1,180,000
Bank Loan (Rs.) 944,000
Margin Money (Rs.) 236,000
Repayment period (years) 5
Loan rate of interest (%) 15

B Techno-Economic Parameters
Cost of each cow (Rs.) 40,000
Average daily milk yield of each cow (lit) 7
Sale price of milk (Rs./lit) 80
Irrigated land required for fodder production (acres) 4.00
Covered area required for each animal under loose housing
80
including storage area (sq.ft.)
Cost of construction of livestock shed and store room (Rs/sq.ft.) 200
Cost of production/purchase of green fodder (Rs/kg) 0.50
Cost of production/purchase of dry fodder (Rs/kg) 4.00
Cost of concentrate feed (Rs/kg) 18.00
Cost of veterinary aid per animal per year (Rs.) 1000
Cost of electricity and water per animal per year (Rs.) 200
Rate of livestock insurance premium (%) 5
Annual wages of each farm labourer (Rs.) 120,000
Sale price of empty livestock feed gunny bags (Rs.) 10.00
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.

C Lactation Chart
(cows are purchased in 2 batches at an interval of 5-6 months)

Year 1 Year 2 Year 3 Year 4 Year 5

No. of
animal in milk dry in milk dry in milk dry in milk dry in milk dry
s
First Batch 10 3000 650 3000 650 3000 650 3000 650 3000 650
Second Batch 10 1800 0 3000 650 3000 650 3000 650 3000 650
Total (days) 4800 650 6000 1300 6000 1300 6000 1300 6000 1300

D Feed and Fodder

Daily
Year 1 Year 2 Year 3 Year 4 Year 5
Requirement
Rate/k
in milk dry in milk dry in milk dry in milk dry in milk dry
g in milk dry
Green fodder 0.50 22.50 17.50 54,000 5,688 67,500 11,375 67,500 11,375 67,500 11,375 67,500 11,375
Dry fodder 4.00 4.75 6.25 91,200 16,250 114,000 32,500 114,000 32,500 114,000 32,500 114,000 32,500
Concentrates 18.00 3.33 1.00 288,000 11,700 360,000 23,400 360,000 23,400 360,000 23,400 360,000 23,400
Total (Rs) 433,200 33,638 541,500 67,275 541,500 67,275 541,500 67,275 541,500 67,275

E Investment Cost
Specifications
Phy. units Unit cost Total
Cost of animals 20 40,000 800,000
Construction of cow shed and storage area sq. ft. 1600 200 320,000
Equipment (chains, ropes, baskets, milk pails, manual chaff cutter etc.) 20 1,000 20,000
Initial fodder cultivation cost acres 4 5,000 20,000
Misc. expenses 20 1,000 20,000
Total 1,180,000
F Cash Flow Analysis Years
I II III IV V
1 Costs
a) Capital cost 1,180,000
b) Recurring cost
Feeding during lactation period 433,200 541,500 541,500 541,500 541,500
Feeding during dry period 33,638 67,275 67,275 67,275 67,275
Veterinary aid 20,000 20,000 20,000 20,000 20,000
Cost of electricity & water 4,000 4,000 4,000 4,000 4,000
Insurance 40,000 40,000 40,000 40,000 40,000
Labour wages 360,000 360,000 360,000 360,000 360,000
Total 2,070,838 1,032,775 1,032,775 1,032,775 1,032,775

2 Benefits
Sale of milk 2,688,000 3,360,000 3,360,000 3,360,000 3,360,000
Sale of gunny bags 3,330 4,260 4,260 4,260 4,260
Depreciated value of buildings 0 0 0 0 240,000
Depreciated value of equipments 0 0 0 0 10,000
Closing stock value 0 0 0 0 400,000
Total 2,691,330 3,364,260 3,364,260 3,364,260 4,014,260

3 DF @ 15% 0.87 0.76 0.66 0.57 0.50

4 Discounted Costs @ 15% 1,800,728 780,926 679,066 590,492 513,472 4,364,685
5 Discounted Benefits @ 15% 2,340,287 2,543,864 2,212,056 1,923,527 1,995,797 11,015,530
6 NPW @ 15% 6,650,845
7 BCR @ 15% 2.52
8 DF @ 50% 0.67 0.44 0.30 0.20 0.13
9 Net Benefits 620,493 2,331,485 2,331,485 2,331,485 2,981,485
10 Discounted Net Benefits @ 50% 413,662 1,036,216 690,810 460,540 392,624 2,993,851
11 IRR #NUM!

G Repayment Schedule
Equated
Gross Annual Net
Year Income Expenses
Surplus Installmen Surplus
t
I 2,691,330 890,838 1,800,493 273,760 1,526,733
II 3,364,260 1,032,775 2,331,485 273,760 2,057,725
III 3,364,260 1,032,775 2,331,485 273,760 2,057,725
IV 3,364,260 1,032,775 2,331,485 273,760 2,057,725
V 3,364,260 1,032,775 2,331,485 273,760 2,057,725

Capital Recovery Factor 0.29

Date : 11/2/2017 22:25:33

Note :
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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.