PROJECT REPORT FOR 50 CROSSBRED COWS UNIT

PREPARED BY:

OVERVIEW:
1 Name of the Farmer
2 Name of the Village
3 Name of the Mandal
4 Name of the District
5 Age of the Farmer
6 Socio-Economic status of the Farmer
7 Number of the Cows proposed 50
8 Number of batches proposed 2
9 Number of cows in Batch I 25
10 Number of cows in Batch II 25
11 Breed proposed Jersey
12 Total Project Cost (Rs.) 7758000
13 Margin Money (Rs.) 1939500
14 Bank Loan (Rs.) 5818500
15 Repayment Period (Years) 5
16 Rate of Interest (%) 12.00%
17 Name of the Financing Bank
18 Name of the sponsored scheme
19 Rate of Subsidy (%) 0.00%
20 Subsidy ceiling if any (Rs.) 0
21 Type of green fodder Super Napier

Dr.J.Sreekanth, 9441184152, sreekmails52@gmail.com

 Techno-Economic Parameters:
1 Cost of each Crossbred cow (Rs.) 50000

2 Lactation days per cow (Days) 300

3 Dry days per cow (Days) 60

4 Average milk production per cow per day (Lit.) 16

5 Average Intercalving Period (months) 14

6 Sale price per liter of milk (Rs.) 26

7 Quantity of milk fed to calf per day (lit.) 1.25

8 Cost of concentrate feed (Rs/Kg) 18

9 Quantity of concentrate feed per cow for maintenance 3

10 Quantity of concentrate feed per cow per liter of milk 0.4

11 Quantity of concentrate feed per pregnant cow per day 1

12 Quantity of green fodder per cow per day (Kg/day) 25

13 Quantity of Dry fodder per cow per day (Kg/day) 5

14 Cost of fodder cultivation (Rs/Acre/Year) 20000

15 Cost of dry fodder (Rs/ton) 7600

16 Area required for fodder cultivation (acres) 10

17 Quantity of TMR to be fed per cow as maintenance (Kg) 4

18 Quantity of TMR to be fed per cow per liter of milk (Kg) 0.5

19 Cost of TMR (Rs./Kg) 0

20 Sale price of each gunny bag (Rs) 8

21 Quantity of feed supplement per cow per lactation (lit) 30

22 Cost of feed supplement (Rs/lit) 80

23 Cost of minor equipment (Rs/Cow) 500

24 Cost of Chaff cutter (Rs) 50000

25 Cost of Milking Machine (Rs) 50000

26 Sale price of male calf at 4 months age (Rs) 5000

27 Sale price of female calf at 4 months age (Rs) 8000

28 Number of labor required 5

29 Cost of wages paid per labor per month (Rs) 6000

30 Sale price of manure (Rs/ton) 800

Dr.J.Sreekanth, 9441184152, sreekmails52@gmail.com

31 Floor space required per adult cow (sft) 42

32 Floor space required per calf (sft) 20

33 Open area required per adult cow (sft) 84

34 Open area required per calf (sft) 40

35 Cost of construction (Rs/sft) 350

36 Cost of Veterinary aid per cow per Year (Rs) 1500

37 Cost of water and electricity per cow per year (Rs) 1000

38 Miscellaneous expenditure per cow per year (Rs) 500

39 Annual rate of milk yield improvement (%) 3.00%

40 Mortality rate in calves (%) 10.00%

41 Mortality rate in cows (%) 10.00%

42 Insurance rate (%) 5.00%

43 Probability of female calf birth (%) 50.00%

44 Annual pregnancy rate (%) 75.00%

45 Culling rate per year (%) 20.00%

46 Milk:Dry animal ratio 4:01

47 Sale price of each Gunny bag (Rs) 8

48 Unit packing of concentrate feed/TMR (Kg) 50

49 Quantity of manure per cow per day (Kg) on DMB 10

50 Depreciation on civil structures (%) 10.00%

51 Depreciation on equipment (%) 15.00%

52 Depreciation on Animals (%) 10.00%

* All the values are as per the standards prescribed by the

National Dairy Research Institute (NDRI) - Karnal. The values
are dynamic and subject to fluctuation and vary from area,
market rate, season, breed and various other factors. The values
used are for the purpose to arrive at the realistic calculation to
check and assess the feasibility of the project.

Dr.J.Sreekanth, 9441184152, sreekmails52@gmail.com

 Non-Recurring Expenditure:

Activity Unit cost Units Total

1 Cost of Crossbred Cows 50000 50 2500000

2 Cost of Insurance 5.00% 2500000 125000

3 Cost of construction of shelter to Cows 350 2100 735000

4 Cost of construction of shelter to calves 350 1000 350000

5 Cost of minor equipment 500 50 25000

6 Cost of chaff cutter 50000 2 100000

7 Cost of Milking machine 50000 2 100000

Total Non-Recurring Expenditure 3935000

Recurring Expenditure:

Activity Unit cost Units Total

1 Cost of fodder cultivation 20000 10 200000

2 Cost of concentrate feed 18 127750 2299500

3 Cost of dry fodder 7600 91.25 693500

4 Cost of TMR 0 82125 0

5 Cost of feed supplements 1500 80 120000

6 Cost of Veterinary aid 1500 50 75000

7 Water and Electricity charges 1000 50 50000

8 Miscellaneous expenditure 500 50 25000

9 Labor charges 6000 5 360000

Total Recurring Expenditure 3823000

Total Expenditure for one Year 7758000

Dr.J.Sreekanth, 9441184152, sreekmails52@gmail.com

 Flock Projection:
Category I Year II Year III Year IV Year V Year VI Year VII Year VIII Yea IX Year X Year

Opening stock of Cows 25 50 50 50 50 50 50 50 50 50

Opening stock of calves 25 20 24 28 27 29 28 30 28 30

Cows purchased during the year 25 10 0 10 0 10 0 10 0 10

Calves purchased during the year 25 0 0 0 0 0 0 0 0 0

Calves produced during the year 0 41 34 41 34 41 34 41 34 41

Mortality of Cows 5 6 5 6 5 6 5 6 5 6

Replacement from Insurance 5 6 5 6 5 6 5 6 5 6

Culled cows 0 10 10 10 10 10 10 10 10 10

Replacement stock 0 0 10 0 10 0 10 0 10 0

Mortality of calves 5 6 6 7 6 7 6 7 6 7

Sale of calves 25 30 24 34 26 35 26 35 26 35

Closing stock of calves 20 24 28 27 29 28 30 28 30 28

Closing stock of cows 50 50 50 50 50 50 50 50 50 50

Total herd maintained 100 80 74 88 77 89 78 90 78 90

Dr.J.Sreekanth, 9441184152, sreekmails52@gmail.com

 Lactation Chart:
I Year II Year III Year IV Year V Year VI Year VII Year VIII Year
BATCH

Milk Dry Milk Dry Milk Dry Milk Milk Milk Milk Milk Dry
Days Days Days Days Days Days Days Dry Days Days Dry Days Days Dry Days Days Dry Days Days Days

I 7300 1825 7300 1825 7300 1825 7300 1825 7300 1825 7300 1825 7300 1825 7300 1825

II 3660 0 7300 1825 7300 1825 7300 1825 7300 1825 7300 1825 7300 1825 7300 1825
Second batch animals are purchased after an interval of 6 months.

Total 10960 1825 14600 3650 14600 3650 14600 3650 14600 3650 14600 3650 14600 3650 14600 3650

Feeding Economics: I II III IV V VI VII VIII

1 Cost of green fodder (Rs) 200000 210000 220000 230000 240000 250000 260000 270000
2 Cost of dry fodder (Rs) 693500 728175 762850 797525 832200 866875 901550 936225
3 Cost of concentrate during milch period (Rs) 1380960 1931580 2023560 2115540 2207520 2299500 2391480 2483460
4 Cost of concentrate during dry period (Rs) 98550 206955 216810 226665 236520 246375 256230 266085
5 Cost of TMR during milch period (Rs) 0 0 0 0 0 0 0 0
6 Cost of TMR during dry period (Rs) 0 0 0 0 0 0 0 0
7 Cost of Feed Supplements (Rs) 120000 126000 132000 138000 144000 150000 156000 162000
Total Feeding cost per year (Rs) 2493010 3202710 3355220 3507730 3660240 3812750 3965260 4117770

Quantity of Concentrate feed (Kgs) 82195 118808 124465 130123 135780 141438 147095 152753
0 0 0 0 0 0 0
Quantity of TMR (Kgs) 0

Dr.J.Sreekanth, 9441184152, sreekmails52@gmail.com

 Income: I II III IV V VI VII VIII
1 Sale of milk (Rs) 4559360 6514061 6876382 7190931 7504048 7817121 8130194 8443266
2 Sale of Gunny bags from feed (Rs) 13151 19960 21906 23943 26070 28288 30596 32995
3 Sale of manure (Rs) 146000 153300 160600 167900 175200 182500 189800 197100
4 Sale of calves (Rs) 125000 158813 131863 197455 153666 218715 168173 236919
Total Income (Rs) 4843511 6846133 7190750 7580229 7858984 8246624 8518762 8910279

Expenditure: I II III IV V VI VII VIII

1 Total feeding cost (Rs) 2493010 3202710 3355220 3507730 3660240 3812750 3965260 4117770
2 Cost of labor (Rs) 360000 378000 396000 414000 432000 450000 468000 486000
3 Cost of Veterinary aid (Rs) 75000 78750 82500 86250 90000 93750 97500 101250
4 Water and Electricity charges (Rs) 50000 52500 55000 57500 60000 62500 65000 67500
5 Miscellaneous charges (Rs) 25000 26250 27500 28750 30000 31250 32500 33750
6 Depreciation on Civil structures (Rs) @10% 108500 97650 86800 75950 65100 54250 43400 32550
7 Depreciation on Animals (Rs) @10% 250000 225000 200000 175000 150000 125000 100000 75000
8 Depreciation equipment (Rs) @15% 33750 28688 23625 18563 13500 8438 3375 0
Total Expenditure (Rs) 3395260 4089548 4226645 4363743 4500840 4637938 4775035 4913820

Gross Profit (Rs) 1448251 2756585 2964105 3216486 3358144 3608686 3743727 3996459
Gross Profit per month (Rs) 120688 229715 247009 268041 279845 300724 311977 333038
Gross Profit per cow (Rs) 2414 4594 4940 5361 5597 6014 6240 6661

Dr.J.Sreekanth, 9441184152, sreekmails52@gmail.com

 Repayment Schedule:

Gross Profit Principal Interest Installment Nett.

Year
(Rs) (Rs) (Rs) (Rs) Income (Rs)

I 1448251 1163700 698220 1861920 ₹ -413,669

II 2756585 1163700 558576 1722276 ₹ 1,034,309
III 2964105 1163700 418932 1582632 ₹ 1,381,473
IV 3216486 1163700 279288 1442988 ₹ 1,773,498
V 3358144 1163700 139644 1303344 ₹ 2,054,800
VI 3608686 0 0 0 ₹ 3,608,686
VII 3743727 0 0 0 ₹ 3,743,727
VIII 3996459 0 0 0 ₹ 3,996,459

NPV & IRR:

Present
Year Cash Flow
Value Discount Factor 5%
0 -7758000 -7758000
1 ₹ -413,669 -393970
2 ₹ 1,034,309 938149
3 ₹ 1,381,473 1193368
4 ₹ 1,773,498 1459062
5 ₹ 2,054,800 1609989
6 ₹ 3,608,686 2692857
7 ₹ 3,743,727 2660597
8 ₹ 3,996,459 2704961

NPV 5107014 5107014

IRR 15%

CERTIFICATE
The prices mentioned in this report are as per the prevailing market prices of the
1
Respective items.
The project is technically feasible and economically viable under proper care and
2
Management by the entrepreneur.

Dr.J.Sreekanth, 9441184152, sreekmails52@gmail.com