 Capital cost: This cost occurs only once & is depreciable over a Period of time totally.

o For purchase of animals,

o construction of Shed &
o purchase of machinery, cans etc.
 Administrative Costs : This is a fixed cost for a certain period.
o Appointment of a Farm manager, Supervisor, Skilled & unskilled labours
 Recurring Cost: This is required daily & is liable to fluctuate at all times.
o Feeding
o Management along with Vaccination, Insurance, treatment & other miscellaneous
costs.
o It will be essential to control these costs which will have a direct bearing on the
production of milk as well as Reproduction (birth of next calf). At the same time
balancing of feed will also determine the REDUCTION of the Inter calving period which
has a bearing on total profitability.