A SUMMER PROJECT REPORT

ON

REVENUE ANALYSIS OF COW FARMING

IN GAINDAKOT, NAWALPUR

Submitted to:
BBA Department
Oxford College of Engineering and Management
Gaindakot-2, Nepal

Submitted By:

Akshay Parajuli Roll No: 16031326

In partial fulfilment of the requirements for the awarded of the

degree
Bachelor of Business Administration (BBA)
Faculty of Management
November 2018

Gaindakot-2, Nawalparasi
Nepal
 Acknowledgements

The satisfaction that accompanies the successful completion of any task would be
incomplete without the mention of the people who made it possible, whose constant
guidance and encouragement made my efforts a success.

I sincerely thank to Pokhara University and Oxford College of Engineering and

management for their guidance and constant supervision as well as for providing
necessary information regarding the project and for their support in completing the
project.

I sincerely thank my project guide Mr. Ganga Ram Sapkota for his valuable advice,
support and guidance throughout this project.

I also take this opportunity to thank Mr. Narayan Sapkota, H.O.D for his support and
co-operation.

I am also deeply indebted to my friends and family members who are directly and
Indirectly involved in bringing out this project.

Akshaya Parajuli

BBA 6th sem OCEM

 ABBVREBATION:
DDC: Dairy Development Corporation

GDP: Gross Domestic Product

NO. OF: Number Of

Contents
CHAPTER- 1.......................................................................................................................7
INTRODUCTION...............................................................................................................7
1.1 BACKGROUND.......................................................................................................7
1.2 STATEMENT OF PROBLEM..................................................................................8
1.3 Objectives..................................................................................................................8
1.4 IMPORTANCE OF THE STUDY............................................................................9
1.5 LIMITATIONS OF THE STUDY............................................................................9
1.6 ORGANIZATION OF THE STUDY........................................................................9
CHAPTER- 2.....................................................................................................................10
REVIEW OF RELATED LITERATURE.........................................................................10
2.1 Review of literature.................................................................................................10
2.2 DEMAND AND SUPPLY FOR MILK..................................................................11
2.3 CONCEPTUAL FRAMEWORK............................................................................12
CHAPTER -3.....................................................................................................................12
RESEARCH METHODS..................................................................................................12
3.1 STUDY AREA AND RATIONALE FOR SELECTION.......................................13
3.2 NATURE AND SOURCES OF DATA..................................................................13
3.3 POPULAION AND SAMPLE................................................................................13
3.4 TOOLS AND TECHNIQUES OF DATA COLLECTION....................................13
CHAPTER- 4.....................................................................................................................14
DATA ANALYSIS AND INTERRPRETATION:...........................................................14
4.1 DATA ANALYSIS AND MAJOR FINDINGS......................................................14
CHAPTER 5......................................................................................................................17
SUMMERY AND CONCLUSIONS................................................................................17
5.1 SUMMARY.............................................................................................................17
5.2 CONCLUSION........................................................................................................18
5.3 RECOMMENDATIONS.........................................................................................18
OPEN QUESTIONS......................................................................................................18
QUESTIONNAIRE:......................................................................................................18
Bibliography......................................................................................................................20

LIST OF FIGURES
Figure1: conceptual frame work

Figure2: price and income level of cow farming

Figure3: income and expenditure of cow farming

Figure4: bar diagram of firm

 EXECUTIVE SUMMARY

Cow farming in Nepal is an ancient farming system still practiced traditionally all over
Nepal: commercial cow Farming in Nepal is recently introduced and becoming popular
between farmers. Cow farming is a source for generating income of Nepali, peoples use
to sell the milk on market maximize benefits and survive their lives. Nepal is an
agricultural country there are lot of possibility in cow or dairy farming. Demands of grass
feed dairy product then earn billions of rupees each year, but there are only few
commercial dairy farms started in Nepal.

Organic farm Nepal established commercial cow farming in Nepal using the modern
technology and produce organic dairy products like milk, cheese and butter. There is
Holstein and jersey cows import form abroad and local cows on farm main purpose of
cow farming is to produce milk. It is strictly prohibited to cut and use the cow and cattle
for meat (beef) in Nepal. Before starting commercial cow farming in Nepal people used
to do cow farming for ritual and cultural purpose. Between Hindu community cow is a
symbol of wealth pray as a Laxmi (goddess of wealth) and every day cow dung used to
purify house hold and urine to purify from birth, death and other special occasion, in this
way each Nepali family have to have at least a cow farming in traditional market. Before
starting a cow farming it is necessary to know about cow food, care, health, diseases,
nutrition, pasture, breeds and farm management etc. Cow farm Nepal offers cow farming
training on these topics as well as practical knowledge for interested farmers. This report
shows the progress of people doing cow farming which can be influential for others.
 CHAPTER- 1

INTRODUCTION
1.1 BACKGROUND

We all know Nepalese economy is basically involve in agriculture. Nepal is an agricultural

country. Still 80% people in Nepal are dependent upon agriculture. The agriculture devotes to
approximately one third of Gross Domestic Product (GDP) and the largest sources of informal
employment to the people.

In 1957, the very first livestock development farm was established in the Dolakha district. To
increase milk production and improve the living standard of the rural farmers in this district
DOLKHA DAIRY DEVELOPMENT LIMITED has been operate over one decade.

In today’s scenario cow farming in an important agribusiness to reduce the unemployment in

Nepal. People can rear the animals from cow farming. It is rearing business and business of
animal husbandry.

Only the uneducated people were engaged in cow farming in an ancient day but now a day’s
people have understood the importance of Agri business, so the educated people are involving in
cow farming people want to establish their own business. In this twenty-first century because of
the new technology and innovation have well managed in this business.

Various products of milk cab be produced through milk and it is getting a good market too. For
the more, it is fulfilling the lack of milk in today’s competitive market. No organized system was
in this business in earlier days. Demand and supply of milk form milk producers were directly.
Those producers used to go home and deliver the required quantity of milk.

Nowadays the government strategy paper gives priority to topics like resolving the problem
related to lacks milk, establishment of resources centers for breeding improved breeds of cows
and buffaloes at least in seven state, taking care of calves and production of hybrid breeds of
milk animals.

The private Sector getting involved in the dairy processing sector from late 10970s with very
small-scale operations in Kathmandu. Dairy Development Corporation (DDC) is the pioneer of
public sector dairy entity it was created in July 1969 under the corporation act of 1964. DDC
provided a granted market to the rural farmer with fair price. it also supplies pasteurized milk
and milk product to urban consumers, develop organized milk collection system to meet
increasing demand for posturized milk and milk product and it developed an organized
marketing system for milk product in urban areas.
We all know that the dung and urine of livestock are very useful for establish the biogas. Cow
farming can reduce the deforestation by establishing the bio-gas plant. The goober gas forms the
dung is used as fuel for domestic purpose as also for running engines for drawing water form
well. Cow farming in this dairy is promoting the agri-business on other parts of Nawalpur.

1.2 STATEMENT OF PROBLEM

It is a brief piece of writing that usually comes at the beginning of a report or proposal to explain
the problem or issue the document is addressing to the reader. There is a great scope on cow
farming to develop the economic status of farmer as well as some difficulties also. There can be
the problem of fund while establishing the cow farming.

The price level of milk plays vital role in cow farming. If the price level of milk and milk
product is adequate to the other influencing factors, then only the farmers will encourage to do
cow farming. Although different private and public sector companies are established to give the
appropriate price level of milk and milk products there exists the problem of price level.
Government provides concessional loan to the grassroots farmers. While the local bank refused
to give the loan for farming there will emerge a problem. Another problem is the price level of
the production. Here we simply understand the production as milk production.

The price of the milk and the economic balance of the farmers are related to each other. So, the
appropriate price level of milk only gives the economically strength to the farmers and also
encourage to do the agribusiness like cow farming. There are other problem in cow farming like
placing, feeding, claiming the insurance etc. Few problems which can be arising in cow farming
are as follows:

 Lack of appropriate level of price which satisfy the farmers.

 Lack of policies of government for promoting the cow farming.
 The significant effect in economic status because of the price level of milk.
 Lack of establishing bio-gas plant from the agri-business.

1.3 Objectives

The main objectives of cow farming in this Municipality are highlighted below.

 To study the relationship of the level of milk production and the price level.
  To establish the relationship among annual income and expenditure of cow farming
activities.

1.4 IMPORTANCE OF THE STUDY

To evaluate the scenario of farmers who are doing cow farming in agri-business the study
of cow farming plays a vital role. In my view I think in today’s scenario cow farming is
the best way to reduce the shortage of milk. This study is mainly focused on the price
level, of product ion, economic balance of farmers which is respect to the price level of
production and farmers having bio-gas plant with the help of cow farming. After this
report is conducted one can easily know about the problem of cow farming and cab be
able to establish his/her own business. On the other hand, people can get information
about this business. Furthermore, it is a good agribusiness to that the farmers have the
bio-gas plant with the help of it. Among all the agribusiness this study will be the best
reference for all the problem.

1.5 LIMITATIONS OF THE STUDY

 This report is based on limited data available from the organization because the
organization wants to keep the transaction details secret.
 Due to the unavailability of data for the current year, this report is based on the
data from previous year.
 The study was conducted with limited financial resources.
 Sample data are only collect from Nawalpur.
 Samples are only collected from four three cow farms.

1.6 ORGANIZATION OF THE STUDY

The study has been organized in to five chapters they are as follows.

CHAPTER 1: INTRODUCTION

CHAPTER2: REVIEW OF RELATED LITERTURE

CHAPTER3: RESEARCH METHODS

CHAPTER4: DATA ANALYSIS AND INTERPRETATION

CHAPTER5: SUMMARY AND CONCLUSIONS

CHAPTER- 2

REVIEW OF RELATED LITERATURE

Revision of all kinds of matter related to our selected research topic is called review of literature
which will help to know about the latest research on selected topic.

2.1 Review of literature

The Nepalese economy is basically agricultural country and it is devoted approx. One third of
GDP. Achieving sustainable development, reducing poverty, improving food security cannot be
imagined in the agricultural sector has not been developed.

In trying to increase agricultural production and diversify the agricultural base, the government
focused on irrigation, the use of fertilizers and insecticides, the introduction of new implements
and new seeds of high yield varieties, and the provision of credit. The lack of distribution of
these inputs, as well as problems in obtaining supplies, however, inhibited progress. Although
land reclamation and settlement were occurring in the Terai Region, environmental degradation
and ecological imbalance resulting from deforestation also prevented progress.

The government is not possible to invest in the agriculture in Nepal which is a developing
country. Moreover, by creating favorable investment climate the government can draw other
public and private sector.

Although new agriculture technologies helped increase food production, there still was room for
further growth. Experience indicated bottlenecks, however, in using modern technology to
achieve a healthy growth. The conflicting goals of producing cash cash crops both for food and
for industrial inputs also were problematic. Government policies should promote those
agribusiness models which are in favor of small producers.
2.2 DEMAND AND SUPPLY FOR MILK
The consumption of milk is very high. The daily milk of Kathmandu valley only is 4lakh liter
approximately for milk demand increase in summer as the consumption of lass irises due to hot
weather. Different value added products like yoghurt, ice-cream, ghee, butter and cheese are also
prepared form the raw milk. The processed milk quantity and market share has considerably
provides numerous opportunities to the dairy farm investor to benefit from it.

In the ancient days there were no organized dairies, as we know that the demand for milk was
fulfilled by raising cows\buffaloes by the people themselves or from the direct supply from the
professional milk producers. They used to go to the house and just deliver the milk that they
required of the quantity of milk to the household. Yoghurt filled in clay containers were
produced by some traditional sweet makers (haluwain). After the establishment of DDC, the
scenario began to slowly change with the increasing supply of pasteurized milk and modern
dairy products such as cheese, butter, ice cream etc.

Demand for milk products has outstripped supply amid growth in production and supply. The
daily supply of milk nationwide stands at 42500 liters against the requirement of 875000 liters,
said the National Dairy Development Board (NDDB), a government body set up to promote the
dairy sector. Even during the main season of milk production which runs from mid-August to
mid-January, the market received only 660000 liters of milk, according to the NDDB.

“Demand for milk has been growing at an annual rate of 10-12 percent while supply has been
increasing by 4percent,” said NDDB technical director Babukaji pant. Milk production rose to
1.4 million tons last year from 1.3 million tons two years ago, according to the NDDB. “we need
an additional 18000-20000 heads of improved breeds of cattle to address the deficit,” said
NDDB director Dipendra Adhikari. He added that lack of commercial farming of milk producing
quadrupeds was the reason behind the growing shortage of milk.

Until three years ago, the country was witnessing milk holidays when dairies stopped purchasing
milk from farmers. Officials and dairy owners admit that the milk holidays discouraged many
farmers from continuing raising cattle “Increased migration of youths to foreign countries for
employment has also affected milk production,” said pant.

The deficit in milk supply has affected the dairy industry. Dairy Development corporation
(DDC), the largest dairy in the country, has been processing powdered milk to address the
growing demand due to a shortage of fresh milk. “Deliveries of fresh milk meet only half of our
requirement,” said DDC officiating deputy general manager Siya Ram Prasad Singh. DDC has
been importing milk from Indian to meet shortfall. It is receiving 2500 liters a day from India.

Diaries HAVE ALSO NOT BEEN ABLE TO FULLY UTILIZE their production capacity. “We
are receiving just 3500 liters of milk a day although our processing capacity is 125000 liters,”
said Rajendra Gopal Shrestha, senior officer of sujal Dairy.
2.3 CONCEPTUAL FRAMEWORK
Independent variables Dependent variables

BIO- GAS

Price of milk cow farming

Production of milk

government

figure 1: conceptual framework

in above figure 2.4 there are two variable one is : independent variable and another is
dependent variable theoretical frame work is the foundation of the study .It is the one of the steps
in the research process .it is also known as building of block in the above figure there are
independent variable as bio gas, price of milk, production of milk, Government policies and so
on. Here the price of milk is concerned with production of farming or production of milk. The
price level is the one thing which helps to encourage the farmers have not enough fund to
establish the big cow farming at once.

Therefore, the different kinds of loan and insurance of cows helps to encourage.
Government policies are very crucial for the grassroots farmers. Another, If the production level
and the government policies are in favor of farming all must consider to these influencing
factors. Dependent variable can be change according to the changes in independent variables. In
the cow farming the main production is milk. The price level of milk is the factor which can
make changes in cow farming. For instance: If the price level of milk is appropriate hen the
owner will buy other cows for the better production. But if the price level is not in favor of
farmer labor then they will persuade to throw out the cows from the cow farming. There are
more chance of morality rate of cows. So, farmers must be considering on this. If the government
is able to make the best insurance calming strategy, then it will be easy to establish the cow
farming. Cows dung are very useful for production of the cow farming. Farmers can sell the
cattle after some months for another cow farmers or another else. Likewise, there are different
products may be as the outcome of cow farming which can also affect the agribusiness. As in the
above figure, Price of milk is the important variables, which is very crucial also.

CHAPTER -3

RESEARCH METHODS
Research methodology is the systematic observation about the research problem. It is the plan or
structure of investigation conceived to answer the research question or to test hypothesis.

3.1 STUDY AREA AND RATIONALE FOR SELECTION

The study area where I have researched is Nawlpur District. Where many people are involve in
agri-business. Just as some people cow farming, Goat keeping, poultry farm and so on.

Nawlpur district, where many people are involved in farming and from that earning, they can
sustain their life. They can be able survive their life in standard way. One of the products
produces in this area is milk. Nowadays, here are many individuals who have cow farming in
proper management. It also helps to reduce lack of milk in Nawalparasi. Because of lack of the
milk production cow farming is important in today’s scenario. I do select my area because it is
my own area and it will be easy to collect the data and it will be easy to get the actual data from
my locality. Data will not go in a vain by doing in own place. I have randomly selected cow 2
farms among all the 10 cow farms.

3.2 NATURE AND SOURCES OF DATA

In this study data are collected by the help of questioner from farmers. The data are collected
from the primary and secondary data sources. The primary data are collected from Nawalpur
district. The secondary data are collected from publish Reports, Journals. I have considered with
government policies, mainly on price level of milk and government policies.

3.3 POPULAION AND SAMPLE

Many people of Nawalpur are getting involved in different kinds of farming. There are many
people who are doing agri-business as cow farming, but we are unable to include all the data, so
we have to take a sample which can help to give an appropriate and effective results. Here in my
studied area there are total individual cows farming who are doing agri-business. Among all I
have taken 2 individual cows farming as a sample.

3.4 TOOLS AND TECHNIQUES OF DATA COLLECTION

While we are conducting the research, it is not enough that we are only gathering the data instead
we must collect the data through different methods of data collection. We can collect the data
through primary sources and secondary sources. Just like questionnaire, interview of the farm’s
owner can be the sample for collecting the data that’s why I have collect the questionnaire
through the interview of each farmers. Interview is the secondary type of data collecting methods
which can help to access the inner information about selected research topic. I have taken the
interview from the farm owners.
 CHAPTER- 4

DATA ANALYSIS AND INTERRPRETATION:

In the research process, data analysis is the very important topic of the report. In this report I
have analysis the data by evaluating the differences between the last year to current year. I have
analysis the data by different tools as pie chart, graph, different schedule. A Likert-type scale are
popular means for measuring attitudes. In this study I have collect the data and group them
according to their nature and interpret them by figures, diagrams, descriptions etc. after
collecting the data the current data is compared with historical data.

4.1 DATA ANALYSIS AND MAJOR FINDINGS

In this study I have studied the price level of milk and the increasing numbers of the cows on
their farm according to their income on cow farming. How the farmers are getting more involved
in cow farming. How much milk they sales in year and what the income they gain. As I have
selected the 2-cow farm among individuals farm.

Individual cow farming of Parajuli cow farm

Parajuli cow farm is located in the Gaindakot 13, Nawalpur. And that owner is Jay Prasad
Parajuli. He is from middle family and he is running this business before 7 years. How the
number of cows increase according to the price level and his income is show in the table and
figure.

Table No 1. No of cows, milk Ltr, per liter price and income of Parajuli cow farm

Year No of cows Production milk. Price level of Income

Ltr milk
2071 5 21600 30 648000
2072 8 28800 35 1008000
2073 10 36000 40 1440000
2074 12 43200 45 1944000
Source: field observation 2074

fig No2. No of cows and price level of per liter of Parajuli farm
 50
45
40
35
30
25 No of cows
20 per liter price
15
10
5
0
2071 2072 2073 2074

Table No 2. Income, Expenditure and net income Of Parajuli cow farm

Year Income Expenditure Net income

2071 648000 150000 498000
2072 1008000 250000 758000
2073 1440000 325000 1115000
2074 1944000 450000 1494000

fig No3. Income, Expenditure and net income of Parajuli cow farm

3500000
3000000
2500000
income
2000000 Expenditure
1500000 Net income
1000000
500000
0
2071 2072 2073 2074

Individual cow farming of Gaurav cow farm

 Gaurav cow farm is in the Gaidakot-13, Nawalpur. And the farm owner is Gokul Regmi. He is
from middle family and he is running this business before some year. How the number of cows
increase according to the price level and his income is show in the table and figure.

Table No 2. No of cows, milk Ltr, per liter price and income of Gaurav farm

Year No of cows Production of milk ltr. Per liter price Income

2071 15 22000 41 9000000
2072 20 32000 45 1440000
2073 27 47000 48 2256000
2074 35 65000 35 2275000

fig No4. No of cows and price level of per liter of Gaurav cow farm

60

50

40

30 No of cows
per liter price
20

10

0
2071 2072 2073 2074

Table No 3. Income, Expenditure and net income Gaurav cow farm

Year Income Expenditure Net income

2071 9000000 5400000 3600000
2072 1440000 870000 570000
2073 2256000 1300000 956000
2074 2275000 1365000 910000

fig No4. Income, Expenditure and net income of Gaurav cow farm
2500000

2000000
income
1500000
Expenditure
1000000 Net income

500000

0
2071 2072 2073 2074

CHAPTER 5

SUMMERY AND CONCLUSIONS

5.1 SUMMARY
This chapter is a complete package, which contains summary conclusions of the finding and
actionable plans. Summary gives brief introduction on all chapters of the study.

This study tries to evaluate about the term of price level and the numbers of cow farms according
to the price level of production. Good dairy farming practices should contribute to ensuring milk
products are safe and suitable for their intended use. One of the major constraints faced by the
agriculture sector in Nepal is the under-investment from both public and private sectors. Ministry
of agriculture development is receiving approximately 3% of national budget which is not
enough to promote adequate agricultural growth and ensure food security to ever growing
population. Out of this adequate allocation, significant amount of public expenditure is being
expended to give price subsidy in agricultural inputs mainly fertilizer. It has been also criticized
that larger farmers are mainly benefitted by input subsidies rather than small and marginal ones.
To get the best possible returns from subsidy policies, they should be subjected to a genuine cost
benefit analysis and review. The marginal farmers cannot afford the risk of investing in uncertain
rights of land tenure.

As the study complete, I found that the price level of milk is very influential for the cow farming.
As the price level was increased the no. of cow farms and the number of cows in the farm were
increased. On the other hand, people started to do business when they can get the loan from the
government sector.
5.2 CONCLUSION
 To know the relation between production of milk price per liter parajuli cow farm and
Gaurav cow farm.
 To know the income, expenditure & income of parajuli farm & Gaurav cow farm.
 Agriculture sector contribute 1/3 part of GDP.
 In the Kathmandu valley 4 lakh liter milk demand daily.
 Cow farming is the major sources of income gaindakot farmer.
 In 1957 the very first livestock development farm was established in dolakha district.
 Dairy development corporation (DDC) is the pioneer of the public sector dairy entity it
was created in July 1969 under corporation act 1964.
 Government provides concessional loan to the grass roots farmers.

5.3 RECOMMENDATIONS
There are several obstacles in the cow farming. Some recommendations are as follow.

 Lack of adequate marketing system and channels for perish-able animals’ production
which must be solved.
 There is an urgent need to study the existing market situation.
 Make the plans to support for establishing the bio-gas plant which are running the cow
farming business.
 Make the availability of Hybrid cows for the better production.

OPEN QUESTIONS

QUESTIONNAIRE:

COW FARMING

No of cow farm: Date:

Address:

Owner:
Name of the Establish of cow farming:

Please fill up the following question and tick the answer.

How many cows do you have in your farm?

1.What is your main production of cow farming?

Milk ( )

Cattles ( )

Compost fertilizer ( )

Others ( )

2.Dose the price level of milk affects the business?

Yes ( )

No ( )

3.Are you getting the profit from this business?

Yes ( )

No ( )

4.Do you know about the government policies for cow farming?

Yes ( )

No ( )

5.How much liter milk do you sell per day

i. 0-20 ( ) ii .20-50 ( ) iii.50-100 ( ) iv. more than 100 ( ).

6.Does the government provide the subside?

Yes ( )

No ( )

7.How much profit you make from your farm per year?

i. Below 1 lakh ( ) ii. 1 lakh to 5 lakh ( ). iii 5 lakh to 15 lakh ( ). iv. more than 15 lakh ( ).

8. ARE you satisfied for your business?

Yes ( )

No ( )

9. Does the milk-collect cooperative give you better facility?

Yes ( )

No ( )

Bibliography
Farm name Address Owner name Established date

1.parajuli cow farm Gaindakot-13 Jay Prasad parajuli 2072

2.Gaurab cow farm Gaindakot-13 Gakul Regmi 2070