PROJECT PROPOSAL FOR

DAIRY FARM

INTRODUCTION:-
Livestock is an important national resource in most developing countries and
India is no exception. More than half of the rural population in the country is
dependent on livestock, fully or partly for their day to day sustenance.
Livestock rearing serves multiple functions apart from generating productive
employment in the rural areas. It accounts for 26% of the Gross Agricultural
Output and about 6% of Gross Domestic Product of the country.

India ranks second with it’s milk production of 70.1 million tones India
dairy industry has been showing a consistent growth rate of about 5% per
annum. Around 70 million farmers are engaged in dairy activities. Dairy
animals convert the wide variety of Agriculture by-products into nutritive
milk. Dairy sector is also making valuable contribution to exports. During
1995-96, Rs. 50.50 crores worth or dairy products were exported. The
liberalized economy together with the opening of processing activity to
private sector offers large scope for dairy industry in the coming years.
Further, credit is recognized as key input in improving the productivity of
milch animal.

Dairy is an important source of subsidiary income to small/marginal and

agricultural farmers/ laborers. The manure from animals provided a good
source of organic matter for improving soil fertility and crop yields. The
gober gas from dung is used as fuel for domestic purpose 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.

PROMOTER’S BACKGROUND:-
Shri Pezuto Angami, permanent resident of Sovima 6 th Mile of Dimapur
district is the promoter of the project. He is an experienced farmer, having
land about 20 acres. He has already developed a dairy farm at Sovima 6 th
Mile area, at present the farm is having 5 milch cows. On seeing good scope
for dairy faming and huge demand of milk he has decided to expand the
farm by adding more milch cows and to acquiring other facilities such as
construction of sheds etc.
FINANCIAL ASPECTS

FIXED CAPITAL

Particulars Amount (Rs.)

1. Land – 30 acres (belongs to the applicant) --

value taken as nil for projection

2. Construction of cattle shed (by using local materials

With CGI sheet roofing and cement concrete
flooring)

(50’ x 25’ = 1250 sq.ft. @200/- per sq.ft. 2,50,000.00

3. Tools and equipments

(feeding containers, milking containers etc.) 20,000.00

4. Live stock
(7 Nos. of cross breed desi cows
including transportation charges)@15,000/- each 1,05,000.00
Total 3,75,000.00

WORKING CAPITAL

1. Salary and Wages

a) Manager (promoter himself) --
b) Attendant – 3 @2500/- each 7,500.00
7,500.00

2. Feed, Fodder and medicines etc. 15,000.00

3. Other expenses
a) Travelling & conveyance 1,000.00
b) Insurance 1,000.00
d) Miscellaneous 1,000.00
3,000.00

Total Working Capital 25,500.00

Say, 25,000.00
TOTAL COST OF THE PROJECT

1. Fixed Capital 3,75,000.00

2. Working capital 25,000.00
Total 4,00,000.00

MEANS OF FINANCE
1. Financial Assistance 4,00,000.00
Total 4,00,000.00

TECHNO ECONOMIC NORMS

1. Average weight of desi cow high breed - 200kg. to 225kg.
2. Average lactation period - 7 month (210 days)
3. Average milk yield lactation milk -
Production by 15 cows Total production ltrs.
1st yr. 15 ltrs. x 210 days - 22,050
nd
2 yr. 15.5 “ x 210 “ - 22,785
rd
3 yr. 16 “ x 210 “ - 23,520
th
4 yr. 15.5 “ x 210 “ - 22,785
th
5 yr. 15 “ x 210 “ - 22,050

4. Dry period - 5 months (155 days)

5. Calving intervals - 13 months

Total Sales value @ Rs.25/- per ltr.

1st yr. - Rs.5,51,250.00
2nd yr. - Rs.5,69,625.00
3rd yr. - Rs.5,88,000.00
4th yr. - Rs.5,69,625.00
5th yr. - Rs.5,51,250.00
PROJECT PROFITABILITY STATEMENT
(Rs. in lakhs)
st nd rd
Particulars 1 yr. 2 yr. 3 yr. 4 yr. 5th yr
th

Sale of Milk 5.51 5.70 5.88 5.70 5.52

Sales of calves & 0.50 0.85 0.90 0.95 1.20
manure
Total 6.01 6.55 6.78 6.65 6.72
Cost of operation
Salary & wages 0.90 0.94 0.98 1.02 1.07
Feed and fodder exp. 1.80 1.85 1.90 1.95 2.00
Other expenses 0.36 0.39 0.42 0.45 0.48
Total 3.06 3.18 3.30 3.42 3.55
Gross profit 2.95 3.37 3.48 3.23 3.17
Interest 0.37 0.29 0.21 0.12 0.05
Depreciation @10% 0.27 0.27 0.27 0.27 0.27
Net profit 2.31 2.81 3.00 2.84 2.85

PROJECT PROPOSAL
FOR
DAIRY FARMING

PREPARED FOR:-

SHRI PEZUTO ANGAMI

SOVIMA 6TH MILE
DIST. DIMAPUR : NAGALAND