Professional Documents
Culture Documents
Rajpal Bhargava
C/o. Rainbow Dairy Farms
VPO- Churella, District- Jhunjhunu (Raj.) 333 001
Contact N. +91-9829050494 , E-Mail: bhargava_rajpal@yahoo.com
INDEX
Acknowledgement.……………………………………………………………………………………………1
Preface.……………………………………
Preface.………………………………………
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………………………………………………………………….2
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Purpose of Document……………………………
Document……………………………………
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…………………………………………………………...3
Disclaimer……………………………………………………………………………………………………….4
Disclaimer………………………………………………………………………
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Executive Summary.................................................
Summary..................................................
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Chapter 1: Venturing into Dairy Business…………………
Business…………………………………………………
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1.1 Belief in Dairy Business………………………...………………………………………7
Viability………………………………………………………………………25
6.2 (B) Economic Viability……………………………………………………………………
6.2.1 Proposed Capacity………………………………………………………………………25
6.2.2 Pricing……………………………………………………………………………………25
6.2.3 Source of Finance………………………………………………………………………25
6.2.4 Project Investment……………………………………………………………………..26
6.2.6 Cash Flow Details………………………………………………………………………27
6.2.6 Profit Analysis & Re-Payment Plan…………………………………………………27
6.2.7 Ratio Analysis…………………………………………………………
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………………………………………………………27
Chapter 7:
7: Farm Inputs.....................................................................
Inputs...........................................................................................
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..............................28
........28
7.1 Market Entry Time.............................................................................................28
7.2 Animal Housing.................................................................................................28
7.3 Office, Storage and Staff Quarters Details…………………………………………29
7.4 Farm Machinery..................................................................................................29
7.5 Herd Mix ............................................................................................................30
7.5.1 Suggestion of Selecting Breed for Commercial Farm.....................................32
7.5.2 Cares at Buying the Animals…………………………………………………………33
7.6 Animal Health…………………………………………………………………………..33
7.7 Animal Breeding & Mating System…………………………………………………34
7.7.1 Artificial Insemination (AI)…………………… ……………………………………..34
7.8 Vaccination & Medicines……………………………………………………..……………..35
7.9 Insurance for Dairy Cattle’s.…………………………………………………………36
7.10 Feeding...............................................................................................................36
7.11 Manpower Requirement ...................................................................................37
Annexure.
Annexure............................
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..40
Annexure- 1, Activity Plan
Annexure- 2, Suppliers List (Dairy Equipments)
Annexure- 3, Suppliers List (Agriculture Equipments)
Annexure- 4, Suppliers list (Live Stock/ Cattle Suppliers)
Annexure- 6, Suppliers List (Feed & Fodder Suppliers)
Annexure- 6, Suppliers List (Veterinary & Semen Bank)
Pre-Feasibility Project Report for 20 Animals
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ACKNOWLEDGEMENT
I have immense pleasure in presenting this Project on Dairy Farming Management.
Management The Subject is
an interesting one. It gave me an opportunity to have a detailed study on the subject and showed
how things work in the practical world. I came to understand and analyze the importance and the
I had a great time working on the project and we have provided information to the fullest of my
I wish all the best to Entrepreneurs who want to explore and do the dairy business.
Regards,
Date:
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Report prepared by: Rajpal Bhargava 1
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
Pre-Feasibility Project Report for 20 Animals
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PREFACE
India is now emerging as a major growing in the international dairy market. With the current
liberalization of India economy, it has opened a wide field for entrepreneurs from other countries
to participate in development of Indian dairy industry. The dairy industry which is the second
largest industry of India employs millions of persons in our country. There is tremendous scope of
growth in dairy industry and we can bring white revolution in our country if this industry is properly
organized.
This study was designed to evaluate the process of dairy management and milk production in dairy
farms, in order to identify the pro & cons and the corresponding points of control. To obtain
information and knowledge on bio security aspects, feeding and milking management, labours,
calving and calf raising, milking and storage equipment, and disease treatments. Study also
included the management practices among the herds in relation to the dry cow period,
management of cows before calving, selling or culling of male calves, separation of lactating and
dry cows and joint disposal of organic and cleaning materials from the milking parlors and milk
storage room, housing of female calves and heifers; using of calves to stimulate milk let down;
feeding cows during milking; hygiene procedures before and during milking; and supply and
quality of water.
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Report prepared by: Rajpal Bhargava 2
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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facilitate investment and provide an overview about Dairy and Livestock Farming.
arming The project pre-
feasibility may form the basis of an important investment decision and in order to serve this
objective, the document covers various aspects of dairy and livestock concept development, start-
up, production, finance and business management. The document also provides sectoral
information, brief on government policies and international scenario, which have some bearing on
The purpose and scope of this information memorandum is to introduce the subject matter and
provide a general idea and information on the said area. All the material included in this document
is based on data/information collected from various sources and is based on certain assumptions.
Although, due care and diligence has been taken to compile this document, the contained
information may vary due to any change in any of the concerned factors, and the actual results may
differ substantially from the presented information. The prospective user of this memorandum is
encouraged to carry out additional diligence and gather any information he/she feels necessary for
The report covers the total cow milk production and volume of net trade for dairy products. It
offers prevalent trends and developments in the industry, future opportunities and competitive
landscape of the prominent players operating in the country. The report also includes information
on the major macroeconomic indicators regressed for estimating the market for milk and dairy
products in India.
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Report prepared by: Rajpal Bhargava 3
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
Pre-Feasibility Project Report for 20 Animals
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DISCLAIMER
This Pre-Feasibility has been prepared by “RAINBOW
RAINBOW DAIRY FARMS”
FARMS” and is for information purposes
only. This report does not constitute an offer, invitation or inducement to invest in any sector or
industry. Neither the information contained in this Pre-Feasibility nor any further information made
available with the subject matter contained herein will form the basis of any contract. Any
recommendations contained in this document must not be relied upon as investment advice based
on the recipient's personal circumstances. In the event that further clarification is required on the
words or phrases used in this material, the recipient is strongly recommended to seek independent
The material in this Pre-Feasibility is general information intended for recipients who understand
the risks and opportunities associated with making investment in India specifically in Dairy sector.
It does not take account of whether an investment, course of action, or associated risks are suitable
for the recipient. This report does not purport to be comprehensive or to contain all the
information on which a prospective investor can make an investment decision. The information
contained herein is based on publicly available information and sources, which we believe to be
reliable, but we do not represent it as accurate or complete. The recipient of this report must make
any other written or oral information made available in connection with the information presented
herein. Any responsibility or liability for any such information is expressly disclaimed.
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Report prepared by: Rajpal Bhargava 4
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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EXECUTIVE SUMMARY
India is currently the largest producer of milk in the world, overwhelmingly from the output of
millions of smallholder farms. Performance of the Indian dairy industry reveals that there has been
a significant increase in milk production (about 4.5% per annum) over the last three decades,
broadly from early 1970s to the late 1990s. The major impetus behind this change came from
The performance of the Indian dairy sector appears impressive in terms of total milk production,
but is dismal in terms of productivity as well as per capita availability. Therefore, there is a need to
increase productivity of milk animals through improvement and extension of breeding services,
including artificial insemination services, up gradation of animal health care facilities, better quality
feed and fodder and strengthening of research, training and extension services.
The demand for milk and milk products is expected to grow at a very rapid rate due to population
growth, urbanization and increase in income levels and changes in food habits. This increase in
demand for dairy products will put increasing pressure on dairy production systems.
Rising human needs for milk and other livestock products have placed environmental concerns in
conflict with livestock income objectives. The rapidly increasing demand for dairy products in urban
areas has given rise to haphazard growth of production centers in semi-urban and urban areas.
The results of financial profitability show that small-scale producers have higher financial profits
(without family labor) per liter of milk than large-scale producers, other things equal.
Together with the fact that most small farms do not have easy access to information and
technology, and credit, these results suggest that the provision of extension services and credit to
small-scale milk producers might be a promising way of increasing milk production and
productivity in India.
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Report prepared by: Rajpal Bhargava 5
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
CHAPTER – 1
labourers. The manure from animals provides a good source of organic matter for improving soil
fertility and crop yields. The gobar gas from the dung is used as fuel for domestic purposes as also
for running engines for drawing water from well. The surplus fodder and agricultural by-products
are gainfully utilized for feeding the animals. Since agriculture is mostly seasonal, there is a
possibility of finding employment throughout the year for many persons through dairy farming.
Thus, dairy also provides employment throughout the year. The main beneficiaries of dairy
programmes are small/marginal farmers and landless labourers. Some facts attract to setup milk
• It is eco-friendly and does not cause environmental pollution as compared to other industries.
• Minimum investment on inventory (No need to stock raw materials in huge qty.)
• Entire establishment can be shifted to a new location (if needed e.g. Fire, Floods etc.)
meet farms day to day requirement. Decomposed slurry of such plant can also be effectively
used as organic manure. Most of the people in INDIA associate Dairy with Milk & Milk Products
1. Milk Production: This is where an individual /company keeps animals ( cows or buffaloes), rears
them & produces milk which is then further sold as liquid milk / given to Procurement people
(as in 2nd step) or further processed into milk products (3rd step) viz. Curd, Lassi, Butter,
Paneer, Cheese, Mava just to name a few.
2. Milk Procurement:
Procurement In this there are people who are designated to collect milk from Farmers or
individuals who do not have their own Marketing setup & after collection the collected milk then
will be processed by them or given to others for selling (as liquid milk) or Processing into
products (as in 3rd step).
3. Milk Processing:
Processing This is a step which is concerned with Processing of Milk into various by
products. However to convert the milk into by-products it is very much vital to have a sufficient
quantity as well as quality of milk which can only be obtained if the Dairy farming is being done
properly. (A healthy animal will ONLY give good quality milk & not other wise).
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Report prepared by: Rajpal Bhargava 6
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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just started a few years ago but is picking up very fast due to Its several advantages viz.
b) Milk can be sold directly from the farm (No Marketing setup needed)
d) Selling rate of milk has been consistently increasing over a period of time.
Further to my interactions with scores of people thinking of entering Dairy business all across
(especially India) the country it was quite evident that the general beliefs are:-
4. Compare to all other business, dairy business break even in the first year itself.
The main
main costs in dairy farming are:
• Capital cost:
cost For purchase of animals, construction of Shed & purchase of machinery, cans
etc. This cost occurs only once & is depreciable over a Period of time totally.
• Administrative Costs
Costs:
sts includes appointment of a Farm manager, Supervisor, Skilled &
unskilled labours depending upon the requirements as well as the size of the farm. This is a
• Recurring Cost:
Cost includes the Feeding & Management along with Vaccination, Insurance,
treatment & other miscellaneous costs. This is required daily & is liable to fluctuate at all
times. 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.
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Report prepared by: Rajpal Bhargava 7
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
CHAPTER – 2
SWOT Analysis
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under “Livestock
Livestock and Agriculture”
Agriculture sector. Before making the decision, one should carefully analyze
the associated risk factors & must consider following critical aspects, which form the basis of any
investment decision.
2.1 Strengths
Strengths
2.2 Weaknesses
2.3 Opportunities
2.4 Threats
• High risks of diseases in live stock.
• Imbalance between prices of inputs & outputs.
• Rising trend of cost of production with higher rate of interest as compared to profit ratio.
• Increasing level of poverty.
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Report prepared by: Rajpal Bhargava 8
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
CHAPTER – 3
merely 17 million tones of milk in 1950-51 to producing 110 million tons in 2009. The per capita
availability of milk during the same period has increased from 124 grams to 252 grams per day
Today, the Indian Dairy industry stands at a mammoth size of US$ 70 billion1. Given the highest
milch bovine population2 of 115.487 million in the world, India exhibits tremendous potential to
1. India with 57% of world’s buffalo population and 16% of world cattle population has second
2. With a growth rate of 4% per annum and 15% of global milk production, annual milk
3. India is among the world’s largest and fastest growing market for milk and milk products,
the market size in value terms being USD 47.6 billion (INR 2000 billion) growing at nearly
7.5% annually
4. Due to increased number of organized Dairy Farms with herd size 100 to 2000, great scope
5. Due to competitive farm gate prices, huge opportunity exists in export of milk and value
added milk products to neighboring countries where domestic production cannot meet.
6. Due to increased retail and organized structure, huge demand for milk processing plants
A) Biotechnology:
D) Retailing:
E) Manufacture Of Ingredients:
F) Finished Products:
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Report prepared by: Rajpal Bhargava 9
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
Pre-Feasibility Project Report for 20 Animals
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Report prepared by: Rajpal Bhargava 10
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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Report prepared by: Rajpal Bhargava 11
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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Report prepared by: Rajpal Bhargava 12
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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Report prepared by: Rajpal Bhargava 13
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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stands at first position in world in volume of milk production .The milk procurement, processing
and distribution operations have also expanded over the years with the organized sector playing an
effective role .
But as evident from sharp rises in milk prices in last few years, the demand for milk has been
increasing with faster rate, and the gap between demand and supply is widening and therefore
there is an emphasis on increasing milk production by Govt through animal genetics and improving
fodder availability.
Although there are a number of milk brands on national and regional levels supplying large
volumes of good quality milk through a large distribution network, still we find a segment of health
conscious urban consumer who is not finding the freshness and purity that he expects from milk
and milk products. His quality needs is remaining unsatisfied, we find many consumers visiting
some dairy farmers who are located at the city corners, traveling long distance and paying a
commercial dairy farms. It is observed that local needs of consumers can be met through local
supplies which reduce the time loss in procurement, processing and distribution of milk resulting
in preserving the fresh quality by stopping the microbial spoilage immediately at the production
point. The logistics cost involved in procurement of raw milk and distribution of finished product
Commercial Dairy farm is a solution for ensuring good farm fresh quality to the urban consumer.
With the intervention of technology and Dairy Farm Management Practices it is possible to improve
farm productivity and reducing cost of milk production, making this activity a profitable business
venture.
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Report prepared by: Rajpal Bhargava 14
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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• Pasteurized Milk
• UHT Treated Milk
• Condensed Milk
• Skim Milk
• Milk Powder
• Ghee
• Liquid butter
• Yogurt
• Ice Cream
• Butter
• Cheese
Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan). Nandini (Karnataka),
Milma (Kerala) and Gokul (Kolhapur) are among those that have earned customer confidence.
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Report prepared by: Rajpal Bhargava 15
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
CHAPTER – 4
Risk Analysis
Pre-Feasibility Project Report for 20 Animals
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4. RISK ANALYSES
Risks & Challenges in Dairy Business
Some of the important challenges faced by Indian dairy industry may be identified as follows:
Breeding of animals and getting expected milk yield is a biological phenomenon, which depends
upon various factors. Dairy farming besides good planning requires hardworking, reliable and alert
manager. In India, usually persons from the family take the responsibility. Inadequate management
of feeding heard health and lack of quality control in various stage of production can cause major
prime stakeholders of the entire value chain of milk are deprived of minimum resources of land,
labour, capital etc. The other constraints at the grass root levels are:
Key Challenges:
1. There is an increasing pressure on the land resources for cultivation of food crops and
fodder crops are not preferred.
2. Lack of good quality animal feed
3. Lack of animal health care facilities.
4. Lack of breeding and good quality artificial insemination facilities.
5. Low genetic potential of the animals
6. Lack of chilling capacities
7. High production costs
8. Lack of financial support.
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Report prepared by: Rajpal Bhargava 16
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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farmer who is illiterate) however it is equally difficult as it concerns live animals; which have
to be cared for everyday. These steps can be learned easily. Unlike any other Industry we
have to pay minute attention to it everyday for one small mistake can lead to losses.
2. In case Dairy farming is being done & is dependent upon Labours /Managers then this will
3. It is possible to gather information from the NET however it must be noted that Practical
Experience is also essential which has to be acquired by visiting as well as staying on the
Dairy farms over a period of time. Once your own dairy farm starts it will not at all be
4. While acquiring the Practical & first hand knowledge of Dairy farming it is essential to learn
the basics with the help of an experienced professional who will be able to differentiate
between right & wrong. It is incorrect to assume that any person (Dairy farm owner) will give
you his trade secrets as well as information for FREE & willingly. Even if he gives this
information it is vital to know what is essential from our point of view & to what has to be
taken.
5. Lastly it is very much essential to note that: A consultant/ Teacher/ Advisor/ Friend/
6 These People will give you the information but it will be ideal to determine the feasibility &
viability of the same. (India is a land of consultants & anybody & everybody is likely to offer
FREE advice) This can be done by asking him questions on “How, What, Where, When &
Why”. If all the answers given to you are satisfactory then only you follow that advice.
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Report prepared by: Rajpal Bhargava 17
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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2. Visiting dairy farms that run on commercial basis and have a discussion with experienced
farm owners. We need not have to rely much on others experience, analyze every event
logically and if needed consult with local Veterinarians for more information.
3. Plant to manage the farm on our own, look for opportunities to work for an existing farm
4. Develop interest and study feed and fodder's market in your region, its difficulties in
relation to seasons.
5. Manage a good team of laborers. You need to choose hardworking reliable persons
preferably with some experience. You can also train them for specific jobs.
6. Visit the cattle market occasionally. Observe animals on sale and talk with persons engaged
2. Milking equipment is thoroughly cleansed before and after each use to preserve a sanitary
environment.
3. Milking machines deliver milk directly from the cow to a refrigerated holding tank, where
the milk is rapidly cooled to between 38 to 45 Fahrenheit to preserve freshness and safety.
The milk is then quickly transported to processing plants for continued freshness and
safety.
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Report prepared by: Rajpal Bhargava 18
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
CHAPTER – 5
Company Information
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5. COMPANY INFORMATION
Company will be registered in the name of “RAINBOW
RAINBOW DAIRY FARMS”
FARMS under the Limited Liability
Partnership act 2008, with its registered office at VPO-Churella, District & Tehsil- Jhunjhunu,
The company will engaged in the production & sales of Milk, Flavored Milk, Butter, Cheese,
The company also involved in other activities like-trading of cattle feed, hire/ purchase of
agriculture land for green fodder cultivation, breeding centers, mobile veterinary centers, sell &
• Self Employment.
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Report prepared by: Rajpal Bhargava 19
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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5.3 OBJECTIVE
This Pre-feasibility study aims at both financial and socio economic viability with in- depth
financial analysis and sustainable socio economic benefits to establish small scale Dairy Cattle
Farms in Rajasthan. The objective of this feasibility is to provide a real time analysis of the market
opportunity with factual data that will lead towards overall improvement in dairy sector of economy.
• Ensuring quality control through application of newer chemical and biotechnological concepts.
• Value additions in the dairy foods supply chain for addressing the complete safety and
• Validation and transfer of the technologies related to increasing animal productivity, value
• Latest education technology to enhance quality of human -resource in airy supply chain.
• Innovations to enhance value addition, processing efficiency, quality and safety dairy products.
• Production & availability of good quality feed and nutrition’s for dairy animals.
• Promote dairy enterprises through transfer of technology and improved supply chain management.
enormous demand in domestic and international market. Cows & Buffalo is the main source of milk
This provides huge opportunity with minimal competition for farmers to invest in dairy farming and
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Report prepared by: Rajpal Bhargava 20
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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under the Limited Liability Partnership act 2008 and license will be obtained under the MMPO act
1992.
7. Registration of Partnership Firm under the Limited Liability Partnership act, 2008 from the
Registrar of Companies.
supplied to Co-operative dairy federation, medium level dairy or hotel/ restaurants for 2-3 Yrs.
2. Increasing the capacity of the farm and setup of Milk Collection centers and various collection &
distribution activities.
4. In the second phase, from 3rd year onwards, market survey to be done and milk processing
5. In the third phase, from 5th year onwards, expending the product line and other milk products
like yoghurt, chhachh/ lassi, paneer, ghee, flavored milk etc. would be produced.
6. Packaged milk would be marketed directly to the consumers through various channels like
7. These activities will generate many more employment opportunities for the village people.
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Report prepared by: Rajpal Bhargava 21
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
CHAPTER – 6
Project Profile
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6. PROJECT PROFILE
The proposed pre-feasibility is for establishment of Dairy Cattle Farm with increase per cow milk
production through state of the art farm management facilities, efficient and effective utilization of
dairy production and deployment of technologically advance infrastructure. The project requires a
unique mix of technology and herd composition that will make it possible for investor to achieve
1. For the establishment of Dairy Farm in Rajasthan, this feasibility has been conducted.
2. The initial cost of the project is Rs. 38,80,000/-, including initial capital cost of Rs.
35,80,000 and initial working capital for 3 months Rs. 3,00,000/-
3. Farm will b=e started with 20 Nos. of Cows and approx. 90,000 Ltr. Milk (20 CowsX15
Ltr.X300 Days) to be produced in a year.
4. Sales price assumed @ Rs.20/- per ltr. or may very time to time as per govt. policy.
5. Projected Revenues for the project for year 1, year 2, year 3, year 4 and year 5 is Rs. 23.65,
23.85, 24.05, 35.71, and 47.30 lacs respectively.
4. Gross profit for year 1, year 2, year 3, year 4 and year 5 is Rs. 11.65, 10.41, 9.17, 18.49
Project Highlights:
1. Project is at prime location on Churu-
Churu- Jhunjhunu main highway road and very close to main
2. Public as well as private transport facilities are available all the time.
3. Govt. Veterinary and breeding facilities are available in the village itself and nearby city.
4. Sufficient land for green fodder cultivation and clean water all the time to cattle’s.
Products.
Products Demand of milk and milk products is very high and rapidly growing due to
population growth, urbanization, and increase in income levels and changes in food habits.
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Report prepared by: Rajpal Bhargava 22
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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37 (Jhunjhunu to Churu Road). The farm is located at the prime location and because it is on road,
easy and immediate transport facility available all the times. Milk and milk products can be
delivered in minimum time duration to the retailers to keep the freshness and purity of the
products. Due to availability of water and electricity, the fresh green fodder & clean water available
time veterinary doctor available in the office time and available on request call after office time.
Medicines, vaccination & A.I. facilities available for cattle as per the requirement. Veterinary doctor
can also provide good consultancy services, farm visits & check ups on request.
Societies are processing the milk in their plants like–Saras, Mother Dairy, Lotus Dairy, Reliance
Dairy & Goyanka Dairy. They are ready to buy the bulk milk at competitive market price.
Also the major hospitals, hotels, universities and institutions in the city, are ready to get the bulk
milk as they are very conscious about low fat, fresh & pure milk.
The market is huge and the difference between demand & supply has gradually widened over the
years. Still the retail customer likes to buy loose milk from milkmen instead of packaged milk
constructive manner. Therefore our marketing goals will be the blend of both factors. Our first
strategy is about the awareness of our farmhouse. We will increase the awareness among the
customers through proper advertising and marketing of the products & services.
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Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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are in the nearest city in Jhunjhunu, which can be finance the project as project is at prime location
and scope of the project is high due to rapid growth of milk and milk products.
main sources for purchasing good milking animals. Animal markets are situated in different places
in Punjab, Haryana, and U.P. Good quality high yield milking cows (Holstein Frisian or Jersey) or
buffaloes (Murrah) to be purchased. There are different contractors also available in the markets
that help locating the good quality and cross breed animals.
for Dairy Farm Management and Agriculture activities. Training related to farm management, cattle
feed, health, vaccination and breeding can be taken from KVK and other programmes from
Agriculture & Animal Husbandry departments organized by State and Central Govt. in the city time to time.
production depends on the carrying capacity of the land. On an average 4 to 5 dairy animals along
with their followers can be maintained on an acre of well fertile agricultural land with irrigation
facilities. Also the availability of total mixed rations (TMR) in the market, the requirement of land
However, the farm productivity is higher and the cost of milk production is lower if farm grown
Concentrate feed and Total Mixed Ration (TMR) available in nearest market Jhunjhunu, which is
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Report prepared by: Rajpal Bhargava 24
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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The feasibility study suggests an initial herd size of 20 animals, which is economical to justify the
overhead cost. The farm size will increase to 200-250 animals within 10 years. Herds mix of 75%
cows and 25% buffaloes are recommended to get the maximum milk production round the year.
The Project can be completed in 03 months. The best quality of cows to be purchased like-
Crossbred Jersey or Holstein Friesian and its gives 16-20 liters milk per day. The market is readily
accessible.
A cow, on average, yields 15 liters of milk a day over a lactation period of 280 days whereas a
buffalo,
buffalo, on average, yields 8 liters a day over a lactation period of 305 days.
6.2.2 PRICING
This pre-feasibility suggests that milk will be sold at the farm or may be directly sold in the urban
market. The milk price varies according to its quality and the season. Cow milk is sold at Rs.25/-
per liter at the farm gate and in the co-operative milk society is around Rs20/-. The current market
of Animal Husbandry, Dairying and Fisheries (GOI) or scheme of state government for the
entrepreneurs.
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Report prepared by: Rajpal Bhargava 25
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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35,00,000/- for purchasing the animals, construction sheds & staff rooms, machinery &
equipments and the rest is used to meet the working capital requirement for minimum 3-4
Ca pita l Investment
Buildings
Agricultural
20%
Equipments
11%
Live Stock
31% Dairy Equipments
26%
Of f ice Land
Equipments Development &
1% Fencing
11%
Live Stock
Buildings
Agricultural Equipments
Dairy Equipments
Land Development & Fencing
Of f ice Equipments
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Report prepared by: Rajpal Bhargava 26
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
Pre-Feasibility Project Report for 20 Animals
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Report prepared by: Rajpal Bhargava 27
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
CHAPTER – 7
Farm Inputs
Pre-Feasibility Project Report for 20 Animals
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7. FARM INPUTS
7.1 MARKET ENTRY TIMING
The demand of milk in summer is high as compared to winter. That’s why the animals in summer
are sold at a bit higher prices as compared to winter. So the proposed business can be started
before the onset of summer season. At the commencement of the proposed business, it is
important that the entrepreneur must have good knowledge of the production and have contacts
with the livestock breeders and farmers. The ability to work with people and animals, and efficient
use of resources are important aspects in modern and commercial dairy farming.
strong winds. The animal housing would be facilitated with fresh drinking water for animals. There
would be proper drainage system to keep hygiene at the farm. It consists of a built up animal shed,
a brick soling paddock for animals, calving pens in which pregnant animals are kept separated
from other animals before calving, one room for milk storage, one room for storing farm
The animals can be dehorned, as they are easier to handle in barns and cause less accidental injury
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Report prepared by: Rajpal Bhargava 28
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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constructed.
farm equipment like fodder chopper, water pumps, milk utensils will be purchased.
EQUIPMENTS
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Report prepared by: Rajpal Bhargava 29
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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cows are comparatively high yielder as compared to buffaloes. This means that there will be 15
cows and 5 buffaloes in a mixed herd or pure Holstein Frisian cows to be purchased.
Herd Planning
Lactation Chart
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Report prepared by: Rajpal Bhargava 30
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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B) HOLSTEIN FRIESIAN
• This breed is from Holland
• Holsteins are black and white, and each has a unique pattern.
• It can perform well in coastal and delta areas.
• A Holstein calf weighs 80-110 lbs. at birth.
• A mature Holstein cow weighs 1,300-1,500 lbs.
• Milk yield - 7200-9000 kgs
• This is by far the best diary breed among exotic cattle regarding milk yield.
• On an average it gives 25 litres of milk per day whereas a cross breed H.F. cow gives 10 -
15 litres per day.
C) CROSS BREEDING:
It is mating of animals of different breeds. Cross breeding is followed for breeding animals
for milk production and meat production. In India zebu breeds of cows and nondescript
cows are crossed with exotic breeds like Holstein Friesian, Brown Swiss and Jersey bulls or
their semen, to enhance the milk production potential of the progeny.
The crossbreeds are having exotic inheritance from Jersey, Brown Swiss or Holstein Friesian
or a combination of these different breeds. Jersey breed is known for the milk fat percent
and Holstein for the high quantity of milk.
S. N. Name of the Breed Native breed Specific region Assembling centre Remarks
India, Pakistan & other
1 Brown Swiss Switzerland - Dairy breed
Asian countries
Province of North
Throughout the country
2 Holstein Friesian Holland Holland and West Dairy breed
(crossbreds)
Friesland
Crossbreds available in
3 Jersey British Isles Island of Jersey Dairy breed
all states.
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Report prepared by: Rajpal Bhargava 31
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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10 buffaloes) this strength can easily go up to 100 animals in proportion of 50:50 or 40:60. After
this however, you need to review your strength and market potential before you chose to go for expansion.
a. Middle class health-conscious Indian families prefer low fat milk for consumption as liquid
milk. It is always better to go for a commercial farm of mixed type. (Cross breed, cows and
b. Conduct a through study of the immediate market where you are planning to market your milk
You can mix milk from both type of animals and sold as per need of the market. Hotels and some general
customers (can be around 30%) prefer pure buffalo milk. Hospitals, sanatoriums prefer cow's milk.
liter of milk production per day. (e.g. Cost of a cow producing 10 liter of Milk per day will be
2. If proper care is given, cows breed regularly giving one calf every 13-14 Month interval.
3. They are more docile and can be handled easily. Good milk yielding cross breeds (Holstein
4. The fat percentage of cow's milk varies from 3-5.5% and is lower then Buffaloes.
BUFFALOES
1. In India, we have good buffalo breeds like Murrah and Mehsana, which are suitable for
2. Buffalo milk has more demand for making butter and butter oil (Ghee), as fat percentage in
milk is higher then cow. Buffalo milk is also preferred for making tea, a welcoming drink in
3. Buffaloes can be maintained on more fibrous crop residues, hence scope for reducing feed cost.
4. Buffaloes largely mature late and give birth to calves at 16 to 18 months interval.
6. Buffaloes need cooling facility e.g. wallowing tank or showers / foggers with fan.
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Report prepared by: Rajpal Bhargava 32
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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• Get the necessary advice and discussion with experienced dairy famer or commercial
farm.
• Inspect all the necessary things like body size, size of udder, horn, etc. to stand beside
the animal.
• Buyer should milk by himself 2-3 times a day to get the average milk per day.
• Age can be guess by their teeth, (2 teeth=2-3 yrs, 6teeth=4yrs, & 8teeth=6yrs.)
• To be proper checked of blindness of animal to move the hands in front of animal’s eyes.
3. Vaccination protocol
7. Training program for family members, and employees who are involved in detecting
diseases and injury and reporting these cases and action to be taken.
8. All animals permanently identified and an effective record keeping system employed for
9. Dairy observation of animal behavior, health, water and feed consumption, manure
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Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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• Breed the animals when it is in peak heat period (i.e. 12 to 24 hours of heat).
• Use high quality semen preferably frozen semen of proven sires/ bulls.
3. By improving the pregnancy rate there will be a reduction in the variation in calving intervals
among cows
male and introduced into female reproductive tract at proper time with the help of instruments.
inseminated:
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Report prepared by: Rajpal Bhargava 34
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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animal will be vaccinated before entering the farm. It will cost Rs. 550 for both cow and buffalo per
year. The vaccines are provided to the Government Farms and Hospitals on payment. Farmers can
also obtain these vaccines on payment according to prescribed schedule from the Institute.
Technical guidance is also provided to the farmers. Farmers can have their animals vaccinated from
• Do not vaccinate animals which are already in stress (Like bad weather, Scarcity of fodder &
water, Disease outbreaks, after transportation etc.)
• Try to deworm animals & remove ecto-parasites one to two weeks prior to vaccination.
• Strictly follow vaccination schedule after consultation with veterinary experts.
• Keep records of vaccination for name of vaccine manufacturing company, Batch number,
Expiry date, Dose & route of vaccine.
• Maintain cold chain for vaccines which may have to keep for 2-8 degree Celsius
temperature.
• Create stress free environment for animals after vaccination
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Report prepared by: Rajpal Bhargava 35
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
Pre-Feasibility Project Report for 20 Animals
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7.9 INSURANCE
The animals may be insured annually or on long term master policy, where ever it is applicable. The
present rate of insurance premium for scheme and non scheme animals are 2.25% and 4.0%
respectively.
Highlights
a.) Milch Cows and Buffaloes, Calves / Heifers, Stud Bulls, Bullocks (Castrated Bulls) and
2. Sum Insured under the policy will be the Market Value of the animal.
3. The basic premium rate per annum is 4% of the Sum Insured. Long term policies are also issued
7.10 FEEDING
A) RATION FOR DAIRY ANIMALS
With crossbreeding programmes and currently with the use of high genetic potential bull germ
plasm, the modern dairy cow has been producing large quantities of milk. It is not uncommon for a
cow to yield 30-40 kg milk per day. Feeding and management of such high yielder require special
skills especially during periods when animal is under production stress. Modern high producing
animals are either in lactation or in advanced pregnancy posing a regular metabolic stress to the
body.
daily fodder equal to 9%-10% of its body weight (3% of live body weight on Dry Matter Basis).
According to estimates, buffalo consumes 50-55 kg fodder daily while cow consumes about 40-45
kg.
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Report prepared by: Rajpal Bhargava 36
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
Pre-Feasibility Project Report for 20 Animals
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Fodder Details
the farm e.g. feeding, watering, and milking and care of animals etc. One mature person can
handle fifteen milk animals easily. Two farm workers are recommended for handling 20-animals. A
supervisor cum farm manager can be hired to supervise all the farm activities.
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Report prepared by: Rajpal Bhargava 37
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
CHAPTER – 8
Farm Output
Pre-Feasibility Project Report for 20 Animals
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8. FARM OUTPUTS
8.1. Lactation Period
The lactation period is the period during which the animals yield milk. These animals are called wet
animals. Generally the lactation period of cows is 280 days and that of buffaloes is 305 days. For
calculation, the feasibility has taken 80% of the total number of cows as wet cows and 70% of the
total number of buffaloes as wet buffaloes. The calving interval (The interval between two calving)
The proposed farmer will raise breeding stock, both future breeding bull and future dairy animals
at his own farm by selecting good off springs of high producers. The first generation (F1) will be
capable of giving milk after 2 years in case of cows and 3 years in case of buffaloes.
8.3.
8.3. Increase in Milk Yield
The milk yield will be improved as a result of appropriate breeding systems discussed earlier. Low
yielding animals are sold in the market. On an average, cows are productive for 7 to 8 years while
8.4.
8.4. Sale Price
In this feasibility study, it is assumed that all the milk will be sold to milk processing companies,
8.5.
8.5. Evening Milk
Milk can be stored in a milk chillier / freezer on 14.5% Total Solids at the farm if milk collection is
8.6.
8.6. Male Calves
3 months old male calves will be sold at the farm sooner after birth for Rs. 5,000/- per animal.
Cow dung is used in India as fuel and bio gas energy plant. It also used as compost for the
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Report prepared by: Rajpal Bhargava 38
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
Pre-Feasibility Project Report for 20 Animals
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Report prepared by: Rajpal Bhargava 39
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
ANNEXURE
Pre-Feasibility Project Report for 20 Animals
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INFORMATION SOURCE
DAIRY EQUIPMENT SUPPLIERS:
1. Food & Biotech Engineers (I) Pvt. Ltd. (Mr.
(Mr. R. P. Singh)
Singh)
19 DLF, Industrial Area, Phase-II, 13/4, Mathura Road, Faridabad- 121003, Haryana (India)
4. Dairy N Pack
Address: 364, Azad Market,New Delhi - 110 006, Delhi, India, (INDIA)
Animal Feeds
Animal Feeds
Jaipur, Rajasthan –
Website: http://www.rajafatandfeeds.net
45
VATERINARY SERVICES:
1.
4.
5.
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Report prepared by: Rajpal Bhargava 41
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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www.vardhmansteelindustries.com
5. G.I. Pipes
sparkelectrodes[at]gmail.com, http://www.gipipesindia.com/,
Address : 15/1, 2nd Floor, Asaf Ali Road, New Delhi - 110 002 (India)
Mob. : +(91)-9310411533,
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Report prepared by: Rajpal Bhargava 42
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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NARAMAU, G.T. ROAD, NEAR ALIMCO, Kanpur - 209217, Uttar Pradesh, India
Karnal, Haryana
09416031427, 09416202427
940/31, Buffalo Market,Behind Mal, Godown Road,, Rohtak, Haryana, India - 124001
Phone : 91-1262-233045, Fax
Fax : 91-1262-233045
Mobile : +91-9896146700,+91-1262-233045/+91-9896146700
Email ID : sachdevadairyfarm@gmail.com, anilsachdeva_sdf@yahoo.co.in
Web Site : http://www.sachdevadairyfarm.com
Web Page : http://www.exportersindia.com/sachdevadairyfarm/
DAIRY CONSULTANTS:
1. Das Consultants
814 Jagat Trade Center, Frazer Road, Patna 800 001 Bihar INDIA
info@suruchiconsultants.com, www.suruchiconsultants.com
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Report prepared by: Rajpal Bhargava 43
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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Jaipur Office
4. Rungta Irrigation
Irrigation Limited
101, Pragati Tower, 26, Rajendra Place, New Delhi, Delhi - 110008, India
E-mail: inforungta@gmail.com,mr.manojpurohit@gmail.com
Mobile: +(91)-9310451213
5. Vasundhra Enterprises
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Report prepared by: Rajpal Bhargava 44
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001
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Email : india.agrovision@gmail.com
E- 157/E, Road No. 12, VKI Area, Jaipur, Rajasthan - 302 013, India
E-Mail: mohitchhabra80@yahoo.co.in
5. Angira Industries
E-157, Road No. 11, V. K. I. Area, Sikar Road, Jaipur, Rajasthan - 302 013, India
Tel. +(91)-(141)-2365716, Mob.: +(91)-9351411835
E-Mail: rsangira@gmail.com
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Report prepared by: Rajpal Bhargava 45
Village & Post-Churella, District-Jhunjhunu, (Raj.) 333 001