Dairy Farm Project Report 8 Cows

DAIRY FARM PROJECT REPORT EIGHT

COWS
  INDIGENOUS MILCH BREED / CROSS-BRED COWS
Entrepreneur  must check the following points before starting a dairy farm.

1. Availability of good quality dairy breed cows in nearby livestock market

2. Nearness of the Farm to Veterinary Hospital, Artificial Insemination Center/livestock Aid
Centers, MPCS
3. Marketing facility of milk and milk product in the locality.
4. 4.Availability of concentrates ,fodder & medicine in that locality.
5. Before starting a dairy farm the entrepreneurs/ farmers are advised to undergo   training on dairy
farming. They can contact Local Animal Husbandry Department staffs/Veterinary
College/agriculture University etc. for the purpose.

Government subsidy available for these types of project– Back ended capital subsidy 25% for
general category (33.33% for SC/ST beneficiaries) is available under government of India
scheme Dairy Entrepreneurship Development Scheme (DEDS.). Subsidy ceiling is Rs120000/
for general category & Rs160000 for ST/SC category for dairy farm with eight animals.

Farmer from Odisha can avail back ended capital subsidy 25% for general category  (33.33%
for SC/ST beneficiaries) under government of Odisha scheme Promotion Of Dairy
Entrepreneurship (PDE).Subsidy ceiling is Rs100,000/ for general category & Rs133332/ for
ST/SC category for dairy farm with eight animals for PDE scheme.

Odisha farmer can avail subsidy either under scheme PDE or DEDS.

Avail Bank loan and subsidy– In order to avail bank loan & subsidy under DEDS/PDE the
entrepreneur/farmers are advised to contact local animal husbandry/veterinary officers. Animal
resources development department is the facilitator deportment for above schemes.

This project report is based on following assumption:

1.Freshly calved indigenous dairy breed/ crossbred  cows like RedSindhi/ Sahiwal/ Gir/ Rathi/
Crossbred cows in 1st or 2nd lactation will be purchased in two batches of two animals each at
an interval of 5 to 6 months.

2.Availability of  2 acre of  irrigated land is prerequisite for the project
3.Cost of labour has not been taken into consideration since full time labour is not required for
the small unit. Family labour will be utilized for maintance of the dairy farm.

4.Fodder cultivation considered in 2 acre land ,Two crops considered per year.

5.Cow dung produced will be utilized as Manure for fodder cultivation.

6.Cost of rearing calves is not considered as it will be nullified by their sale value

7.In case of death  cow new cow will be purchased from insurance claim money

8.The scheme is workable on the above guidelines if run by the dairy farmer on scientific lines.

Housing for cows

Floor –Pucca, strong concrete cemented, impervious to moisture ,and have slope 1 in 60 towards
gutter. Plinth should be 2ft. higher than ground. Walls-3ft. high lengthwise brick wall on sides,
End wall should be solid made of bricks.Roof– 14-16ft. high at the center and 8ft. high on the
side wall .there should be   hang over 3ft  beyond wall to prevent rain water from entering cow
shade. Roof should be of asbestos, cement asbestos, or tile. thatched  roof can replace asbestos in
low cost housing
  TAIL  TO TAIL SYSTEM OF HOUSING

ITEMS LENGTH IN METER

MANGER 0.6M

STANDING PLACE 1.5M

GUTTER 0.4M

FEEDING PASSAGE 1.2M ON BOTH SIDE

MILKING PLACE 1.2M

. Techno economic parameters

indigenous
Type of Animal
Milch breed/CB
No. of Animals 8

Cost of Animal (Rs./animal) 30000/cow

Cost of transportation @Rs1000/- per cow 8000

Average Milk Yield (litre/day) 10

Floor space (sqft) per adult animal 40

Floor space (sqft) per calf 20

Cost of construction per sqft (Rs.) 250

Cost of equipment per animal (Rs.) 1000

Cost of fodder cultivation (Rs./acre/season) 5000

Insurance premium (% per annum) 5

Veterinary aid/animal/ year (Rs.) 750

Cost of concentrate feed (Rs./kg) 16

Cost of dry fodder (Rs./kg) 2

Rate of interest (%) 12

Repayment period (years) 6

Selling price of milk/litre (Rs./kg) 27

Sale price of gunny bags (Rs. per bag) 10

Lactation days 280

Dry days 150

DAILY FEEDING AND COST CHART FOR DAIRY COWS

FEEDING STUFF COST/KG During lactation During dry period

period
 Quantity Cost Quantity Cost
Rs. (kg) (Rs.) (kg) (Rs.)

Concentrate feed 16 4.5 72 1.5 24

Home Home
Green fodder 1 20 15
grown grown

Dry fodder 4 4 11 5 10

Total 28.5 83 21.5 34

Lactation chart/Dry chart

Particulars Years

I II III IV V Vi

Lactation Days

First batch 1000 1120 1000 840 840 1000

Second batch 720 840 840 840 840 840

Total 1720 1960 1840 1680 1680 1840

Dry Days

First batch 440 320 440 600 600 440

Second batch – 600 600 600 600 600

Total 440 920 1040 1200 1200 1040

Dairy Farm project report 8 cows page 2

Economics of dairy farming with eight Indigenous Milch   Breed Cows/

cross-bred  cows

Project cost and bank loan Cost. In Rs.

Capital cost
Cow shed for 8 cows 40sq.ft/cow @250/sqft 80000
Calf pen for 4 calves 20 sq.ft./calf @200/sq.ft. 40000
 Cost of 8 CB cows with minimum average 10 liter milk
240000
yield /day @27000 with transportation
Cost of one chaff cutter operated power operated 2 Hp 25000
Cost of dairy appliances @ 1000/cow 8000
Electrification of the dairy farm with four ceiling  fan 14000
Cost of one single bucket milking machine 27000
Total 434000
Recurring cost to be capitalized
Cost of feed for first batch of  one cows for one month as
9960
per feed chart
Cost of insurance  8 animals @5% of animal cost 12000
Cost of fodder cultivation in 2 acres of land 20000
Cost of medicine vaccine, electricity for the first batch 
4000
first  cow
45960Say
Total recurring expenditure
46000
TOTAL PROJECT COST 480000
Margin money 15% of project cost 72000
Bank loan 85% of project cost 408000

CASH FLOW ANALYSIS.

Particulars Project period

1 2 3 4 5 6
Feeding during lactation
period vide yearly
142760 162680 152720 139440 139440 152720
lactation days and feed
cost as per chart
Feeding during dry
period vide dry days and
9680 20240 22880 26400 26400 22880
feed cost as per feed
chart enclosed
Medicine vaccine
8000 8000 8000 8000 8000 8000
veterinary aid
Insurance @5% of
12000 12000 12000 12000 12000 12000
animal cost /year
Cost of fodder cultivation 40000 40000 40000 40000 40000 40000
other miscellaneous
10000 10000 10000 10000 10000 10000
expenditure
Total 222440 252920 245600 235840 235840 245600
INCOME
Sale  of milk 464400 529200 496800 453600 453600 496800
@Rs.27/liter during
 lactation days1with 2 3 4 5 6
average milk yield /cow 
Capital
liter/day 434000          
Costs
Sale of gunny bags
Recurring 1680 1040 1800 1680 1680 1760
222440 252920 245600 235840 235840 245600
Cost
Manure will be utilized
in ownCosts
Total farm 656440 252920 245600 235840 235840 245600
Value of closing
Benefit stock530240
466080 of  498600 455280 455280 716560
8 cows(Depreciation
- on 96000
Net Benefit
animal cost @10%/year) 277320 253000 219440 219440 470960
190360
Value of
building(Depreciation on 48000
building@10%/year)
Value of
equipments(Depreciation
74000
on equipments
@15%/year)
Total income 466080 530240 498600 455280 455280 716560
Gross profit 243640 277320 253000 219440 219440 470960
Financial indicators Estimated value Preferred value
Net Present Worth
648689.93 Should be+ve
(NPW)@15%DF
Benefit Cost Ratio(BCR) 1.5:1 >1
Internal Rate of return (IRR) 49.29 >15%
Debt Service Coverage Ratio 2.78 >1.5

LOAN AMOUNT 408000,GRACE PERIOD 6 MONTH

LOAN AMOUNT AT THE END OF GRACE PERIOD=+24480=432480

Monthly
S.No Interest Principal Balance
Installment
0 432480
1 8455 4325 4130 428350
2 8455 4283 4172 424178
3 8455 4242 4213 419965
4 8455 4200 4255 415709
5 8455 4157 4298 411411
6 8455 4114 4341 407071
7 8455 4071 4384 402686
8 8455 4027 4428 398258
9 8455 3983 4472 393785
10 8455 3938 4517 389268
11 8455 3893 4562 384706
12 8455 3847 4608 380098
13 8455 3801 4654 375444
14 8455 3754 4701 370743
15 8455 3707 4748 365996
16 8455 3660 4795 361200
17 8455 3612 4843 356357
18 8455 3564 4891 351466
19 8455 3515 4940 346525
20 8455 3465 4990 341536
21 8455 3415 5040 336496
22 8455 3365 5090 331406
23 8455 3314 5141 326265
24 8455 3263 5192 321072
25 8455 3211 5244 315828
26 8455 3158 5297 310531
27 8455 3105 5350 305181
28 8455 3052 5403 299778
29 8455 2998 5457 294321
30 8455 2943 5512 288809
31 8455 2888 5567 283242
32 8455 2832 5623 277619
33 8455 2776 5679 271941
34 8455 2719 5736 266205
35 8455 2662 5793 260412
36 8455 2604 5851 254561
37 8455 2546 5909 248652
38 8455 2487 5969 242683
39 8455 2427 6028 236655
40 8455 2367 6089 230566
41 8455 2306 6149 224417
42 8455 2244 6211 218206
43 8455 2182 6273 211933
44 8455 2119 6336 205597
45 8455 2056 6399 199198
46 8455 1992 6463 192735
47 8455 1927 6528 186207
48 8455 1862 6593 179614
49 8455 1796 6659 172955
50 8455 1730 6726 166230
51 8455 1662 6793 159437
52 8455 1594 6861 152576
53 8455 1526 6929 145647
54 8455 1456 6999 138648
55 8455 1386 7069 131580
56 8455 1316 7139 124441
57 8455 1244 7211 117230
58 8455 1172 7283 109947
59 8455 1099 7356 102592
60 8455 1026 7429 95162
61 8455 952 7503 87659
62 8455 877 7578 80081
63 8455 801 7654 72426
64 8455 724 7731 64695
65 8455 647 7808 56887
66 8455 569 7886 49001
67 8455 490 7965 41036
68 8455 410 8045 32991
69 8455 330 8125 24866
70 8455 249 8206 16660
71 8455 167 8288 8371
72 8455 84 8371 0