PROJECT REPORT OF A SMALL-SCALE BUFFALO 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 SURESH B. MUNDIN MANI
Address MUGALI
Unit size 8
Project Cost (Rs.) 552,000
Bank Loan (Rs.) 496,800
Margin Money (Rs.) 55,200
Repayment period (years) 5
Loan rate of interest (%) 11.5

B Techno-Economic Parameters
Cost of each Murrah buffalo (Rs.) 50,000
Average daily milk yield of each buffalo (lit) 8
Sale price of milk (Rs./lit) 36
Irrigated land required for fodder production (acres) 1.60
Covered area required for each animal under loose housing including storage
80
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.) 0
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
(buffaloes are purchased in 2 batches at an interval of 5-6 months)

Year 1 Year 2 Year 3 Year 4 Year 5

No. of
in milk dry in milk dry in milk dry in milk dry in milk dry
animals
First Batch 4 1200 260 1200 260 1020 440 980 480 980 480
Second Batch 4 720 0 980 480 980 480 980 480 1140 320
Total (days) 1920 260 2180 740 2000 920 1960 960 2120 800

D Feed and Fodder

Daily
Year 1 Year 2 Year 3 Year 4 Year 5
Requirement
Rate/kg in milk dry in milk dry in milk dry in milk dry in milk dry in milk dry
Green fodder 0.50 27.50 22.50 26,400 2,925 29,975 8,325 29,975 8,325 29,975 8,325 29,975 8,325
Dry fodder 4.00 4.50 5.00 34,560 5,200 39,240 14,800 39,240 14,800 39,240 14,800 39,240 14,800
Concentrates 18.00 4.70 1.50 162,432 7,020 184,428 19,980 184,428 19,980 184,428 19,980 184,428 19,980
Total (Rs) 223,392 15,145 253,643 43,105 253,643 43,105 253,643 43,105 253,643 43,105

E Investment Cost
Specifications
Phy. units Unit cost Total
Cost of animals 8 50,000 400,000
Construction of buffalo shed and storage area sq. ft. 640 200 128,000
Equipment (chains, ropes, baskets, milk pails, manual chaff cutter etc.) 8 1,000 8,000
Initial fodder cultivation cost acres 1.6 5,000 8,000
Misc. expenses 8 1,000 8,000
Total 552,000

F Cash Flow Analysis Years

I II III IV V
 1 Costs
a) Capital cost 552,000
b) Recurring cost
Feeding during lactation period 223,392 253,643 253,643 253,643 253,643
Feeding during dry period 15,145 43,105 43,105 43,105 43,105
Veterinary aid 8,000 8,000 8,000 8,000 8,000
Cost of electricity & water 1,600 1,600 1,600 1,600 1,600
Insurance 20,000 20,000 20,000 20,000 20,000
Labour wages 0 0 0 0 0
Total 820,137 326,348 326,348 326,348 326,348

2 Benefits
Sale of milk 552,960 627,840 576,000 564,480 610,560
Sale of gunny bags 1,883 2,271 2,156 2,130 2,233
Depreciated value of buildings 0 0 0 0 96,000
Depreciated value of equipments 0 0 0 0 4,000
Closing stock value 0 0 0 0 200,000
Total 554,843 630,111 578,156 566,610 912,793

3 DF @ 15% 0.87 0.76 0.66 0.57 0.50

4 Discounted Costs @ 15% 713,163 246,766 214,579 186,591 162,253 1,523,351
5 Discounted Benefits @ 15% 482,472 476,455 380,147 323,961 453,819 2,116,854
6 NPW @ 15% 593,503
7 BCR @ 15% 1.39
8 DF @ 50% 0.67 0.44 0.30 0.20 0.13
9 Net Benefits -265,294 303,763 251,808 240,262 586,445
10 Discounted Net Benefits @ 50% -176,863 135,006 74,610 47,459 77,227 157,439
11 IRR 107%

G Repayment Schedule
Equated
Gross Net
Year Income Expenses Annual
Surplus Installment Surplus
I 554,843 268,137 286,706 133,639 153,067
II 630,111 326,348 303,763 133,639 170,124
III 578,156 326,348 251,808 133,639 118,169
IV 566,610 326,348 240,262 133,639 106,623
V 612,793 326,348 286,445 133,639 152,806

Capital Recovery Factor 0.27

Date : 11/13/2017 17:43:51

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.