Table of contents page

Introduction..................................................................................................................1
1. Executive summary................................................................................................2
2. Back ground...............................................................................................................3
3. Strategy....................................................................................................................3
Activities........................................................................................................................3
Phase –one:-................................................................................................................4
Phase-two:-..................................................................................................................4
Phase-three..................................................................................................................4
4. Project management and organization...............................................................4
5. Objective..................................................................................................................4
6. Environmental impact............................................................................................5
7. Project feasibility.............................................................................................5
8. Environmental impacts...................................................................................6
Herd size......................................................................................................................6
10 Project features.................................................................................................8
10.1 Project inputs...................................................................................................8
11. Feed requirement planning each group of herd for one budget year...10
Table: - 10 Summary of project cost over the project period.............................17
10.2 Milk production plan......................................................................................18
10.3 Project out puts..............................................................................................19
Project management and organization..................................................................28

0
Introduction

It is long time history that Ethiopia possesses an immense livestock population to

which can play a grate role in poverty reduction and boost livelihoods of the society.

How ever the country does not benefited from these resources due to different
factors. Diseases, shortage of feed, poor genetic potential, lose attention, and mal-
utilization of these resources are among the major limiting factors.

Over the past few years many attempts have been done to extricate these bottle
neck problems. But yet desired rate of development is not achieved. In particular
hand full dairy farms with limited number of cattle are attempting to do their best, how
ever they are not able to go far distant.

----------------------- farm is among these farms, which is found at better level with a
better productive dairy cows at a confined place ------------------ farm is interested to
work hard in dairy development to contribute its part in enhancing dairy industry and
support the effect of supplying balanced diet of animal origin to the society.
That is why this project is studied. In the study process technical, financial, socio-
economical and political feasibility have been studied and confirmed that the project
is sound in all aspects and time demanding.
Hence if the problem of the land is solved for the farm it can play a lot to support
local and national economy development and poverty reduction.
Even though the project duration is for unlimited period for conveniences of project
evaluation it is designed on the base of five years project life.

Stop

1
1. Executive summary
a/ Entrepreneur profile
The entrepreneur begins to participate in milk production since ----- E.C. starting by
two Holstein cross breed cows. Current the farm processes 30 improved dairy cattle
on very small area and in residential area producing more than 200 liter of milk per
day and distributing among inhabitants, coffees restaurants and milk processors with
own care. This gives profound experience. There for he has an ability and capacity to
run dairy enterprise.

b/ Description of the project

Project products are primarily milk and milk products, with annual plan of ---lt of milk
while subordinate products are manure for organic fertilizer (--ton per year) & male
calves for veal production. These products and general activities of the projects
provide multidimensional benefits for direct and indirect beneficiaries found at
different levels.

The major project benefits are:-

In come generation, creation of employment opportunity for-------- workers, produce
and supply dairy products to the society, introduce modern dairy farm management
technology, contribute to improve crop production through provision of manure
(organic fertilizer),

Beside running dairy enterprise entrepreneur planned to establish milk

processing and plant in the near future. Hoping that this will inject substantial
contribution to create market opportunity for milk producers & enhance dairy
developments as a whole. More over vegetable production will be another activity of
the project to support the society with vegetable need.
Project site
Project site is expected to be in special zone of Oromia region surrounding Finfinee,
at -----Word. The total land requirement is 2 hectare.
c/ Social and economic contribution of the project
From social and economic point of view the cited contributions are identified:-
produces and provides the community with balanced diets of animals origin,
contribute part in reducing imported powdered milk, experience share in modern
dairy farm management (sound health care, balanced ration feeding, record keeping
and over all dairy management), support in cattle genetic improvement, utilize local

2
resources, (livestock them selves & animal feeds), increase national wealth,
economy and accumulation of capital.
In general the project contributes in poverty reduction, and speeding-up over all
national development goal to improve general well being of the society.

2. Back ground
Agriculture is the mainstay of Ethiopian economy, which accounts about 45% of GDP
and 88-90% of export earnings. Livestock is one component of this sector that
contributes 15% of total GDP and 40% of agricultural GDP. Consequently it highly
support agriculture 7play substantial role in over national development.
According to information of central tactical agency (2007/8) the livestock population
reveals cattle 47.57milliom, sheep 21.71million, Goat 39.56million and equine10
million.
From aforementioned information it is possible to understand livestock represent a
grate portion of national resources. So it is imperative to give due attention to this
sub-sector.

3. Strategy
The farm would be established with 30 Holstein breed from own stock. farm
profitability is intended to be increased through instituting over all sound dairy
management.
Production volume would be increase through intensifying production system and
working hard towards selected key factors that influence to express breed
productivity potential. These key factors are scientific feeding with balanced ration
feeding, intensive selection, of superior animals and culling of inferior once, utilizing
selected semen and instituting sound heath management,

For the purpose of proper execution of the strategy the farm will set-up appropriate
organizational set-up with hiring illegible personnel. (See page 4)
In order to timely evaluate and monitor farm efficiency need full data such as:-
reproductive efficiency, production potential. Breeding, health and cost-benefit would
be recorded and analyzed for the purpose of timely correction and take appropriate
action.

Activities
In order to execute project objectives and achieve desired result the project set-up
work plan which is divided in to three phases.
3
Phase –one:-
This is the duration of project study land survey and designing period.
(This phase is all ready completed)

Phase-two:-
The major activities to be executed during this phase are Land acquiring and
construction. Construction is expected to be begin within 1-2 months after acquiring
of the land and will completed within 5-6 months.

Phase-three
During this phase the fulfillment of necessary equipments, hiring of required
personnel, recruiting stock to newly established farm, and kick-off production, would
be effective.

4. Project management and organization

For the purpose of proper business operation the project would have high level of
management with the following organizational set-up and with corresponding defined
job description.
 General manager- project owner
 Farm and production supervisor
 Marketing and sales service
 Record keeper
 Milkers and animal attendants
 Guards
 Other supportive workers
5. Objective
The over-all objective of project is to establish modern dairy farm that can contribute
income and employment generation, dairy industry development, self – sufficient in
dairy products, and support overall national development goal.

Specific objectives
 To establish modern dairy farm
 To create income generation
 To create employment opportunity
 To support livestock development
 To play part in attainment of national development objective

4
  To support self-sufficient in milk & milk products
Project out puts
The final out puts of the project are milk, milk products.

6. Environmental impact
Mal--handling, disposal & utilization of farm waste causes contamination fauna and
flora .The main farm wastes are dung and slurry. These wastes can be utilized in
different methods. In modern sense the most popular waste utilization technique are
Bio-gas & composting. For the purpose of appropriate handling and utilization of the
waste the project found the first technique is the best one.

Hence the project designs to construction of bio-bas digester with proper drainage
system to have drawn all dung and slurry in to the bio-gas digester. Then after the
slurry product from bio-gas digester will be distributed among vicinity farmers to
supply them with organic fertilizer and earn in come for the farm. In such a way farm
waste is used for benefiting the farm as alternative energy and income. Beside this it
helps to increase crop production earning. There for there is no tendency of pollution
the environment by farm wastes.
In general it is possible to say the project dose not causes any negative effect on
fauna and flora with farm wastes to the project area.

7. Project feasibility
During project feasibility study the planner gives attention to the cited aspects:-
 Technical,
 Finantial,
 Commercial,
 Organization and management,
 Socio-economic benefit, and
 environmental impacts
7.1 Technical aspects
Availability of all necessary inputs such as feed, Labour, and other equipment to
avail or supplied on proper time to implement the project as designed.
7.2 Financial aspects
The project will not hindered by financial problems because the major capital which
needs for animal purchase has coved with foundation stock. The remaining high
capital remains construction expenses. The project runner has the capacity to cover

5
this expense from own capital. So it is possible to say the project is financially
feasible.
y
7.3 Socio-economic benefit
From Socio-economic benefit point of view the project provides the society with
balanced diet of animals origin, provides work opportunity, assist the increasing
wealth, economic growth, and attainment of national objectives.

7.4 Organization and management

In addition to these the project organizational set-up, financial capacity of
project owner, market demand of quality grade milk & milk product and
technical fitness of the project assure its and profitability and feasibility.

8. Environmental impacts
Concerning environmental impacts; the project does not result in exhaustion of any
natural resources or jeopardize the ability of future generation to meet their need. On
the contrary it enhances dairy development and support to increase crop productivity
through supplying organic fertilizer (for the detail see page--).
In addition to these:-
 Project coccidness with government current policy and its time
demanding.
 Project's bond and agreement with market or milk consumers demand
(Milk is ever lasting need to human life that makes its demand
sustainable)
All these conditions verify that as the project is feasible & sustainable in all aspects.
More over details of these feasibility parameters are illustrated in each part of project
components.
Herd size
Setting her projection is an integral components or tool of the project which help to
plan feed expenses, milk production volume and project income. In order to forecast
herd projection calving rate have to be considered. Existing trend of these indicators
is as follow:-
 Calving rate =75% at 16 months of calving index
 Take - off = 6%,
 mortality rate
-Adult & Heifers =2%
-calves = 8%

6
On the base of these in formations the next five Years herd projection has forecasted.
(Table---)
The foundation herd at the beginning of project year is 30 herds. Among which 21
milking, 3 dry pregnant –5 replacements and 1 calf.
Percentage of dry pregnant cows in herd is expressed by formula;
Percentage dry cows in herd = days dry in cycle x 100/ Calving index

9 Dairy housing
Type of housing system is selected based on the following conditions:-
climate condition, comfortably to animals (good ventilation, better accommodation
and bedding), cost effectiveness, convenience in dairy work and sanitation. There
fore tail-to-tail double row method housing with double roofing system is preferably
selected. Details of the construction consists of adult block, maternity section,
isolation room, growers yard, open paddock or loafing area, caves pens (box),
concentrate feed store, office, toilet and hay shed. More over crash, animal and
personnel foot baths are considered in the construction.

Construction cost
 Block for 32 adult cows 4.56 m2/ cow ----------------4.56 m2 x 50 = 145.92 m2
 Maternity ward for 2 calving cows6.3 m2 /cow -------6.3 m2x 2 = 12.3 m2
 Room for 8 replacement group 3.63 /animal----------.3.63 m2 X 8 =29.06m2.
 Pens for 3 calves 1.43 m2 /calf -------------------------1.43 m2 x 3 =4.29 m2
Barn Construction area------------------------------------------- = 191.57 m 2
Assuming that the cost of construction is 1000 EB/m2
(1,000 X191.57 m2) =191,570EB
 Loafing /free-stall/ area 120m2 at the cost of 400 EB/m2 ----
120 m2 x 400 = 48,000 EB
 water trough (40cm depth X 60cm width x 3m length) ----- =1,500 EB
 Foot bath -------------------------------------------------- =2,000EB
 Milk room 12 m2 at cost of 1500 EB/ m2--------12 m2 x 1500 = 18,000EB
 Office 12 m2 at cost of 15000EB/ m2 ------- 12 m2 x 15000EB =18,000 EB
 Toilet -------------------------------------------------------------- =5,000EB
 Hay shade 105 m2 150 EB/m2------------- 105 m2 x 150 E =15,750 EB
 Concentrate feed store 14 m2 / 500 EB ---16m2 x 500 EB = 8,000 EB
 Fencing ----------------------------------------------------------- = 20,000 EB
 Bio-gas digester of 60 m3 ------------------------------------ = 30,000 EB

7
 Total building expenses------------------------------------------------------357,820EB

10 Project features
10.1 Project inputs
Table 1:- Investment
No Description unit quan unit total
price price
A Estimated inversement cost.
1 Pre- operation cost
1.1 survey and travel 800 800
1.2 Registration & licence cost. 400 400
1.3 Business planning and feasibility study. 6000 6000
Sub total 7200
2. land acquired with assumption of 30% 72,000
per-paid cost for 2ha on 50 years lease basis
3 Machinery & equipment
3 .1 fixed Dairy equipments
3.1.1 Electrical and manual cream separator psc. 1 40,000 60,000
capacity of 60 Lt/hr
3.1.2 Manual butter Churner capacity of 10 kg >> 1 20,000 25,000
3.1.3 Pan of large size >> 1 120 120
3.1.4 Bowl of large size >> 1 75 75
3.1.5 Bowl of medium size >> 1 60 60
3.1.6 Deep refrigerator of 1000 It >> 1 20,000 20,000
4.3.7. Measuring slender of 1000ml >> 1 50 50
4.3.8. Table for cream separator stand psc. 1 650 650
3.2 fixed farm equipment
3.2.1 Fork psc 2 50 100
3.2.2 Ear tag applicator >> 1 250 250
3.2.3. water reservoir capacity of 5000Lt >> 1 2,000 2,000
3.3 Fixed veterinary equipment 0
3.3 1 Teat dipper Psc. 1 200 200
3.3.4 electrical dehorner >> 1 600 600
3.3.5. Hoof cutter >> 1 500 500
3.3.6 Hoof rasp >> 1 80 80
3.3.7 Hand sprayer of 20lt >> 1 450 450
Sub-total 110,135

No unit quan unit total

Description price price
4 Fixed office furniture and utilities
4.1 Office table psc. 1 600 600

4.2 Office Chairs >> 3 200 600

4.3 Stump pad >> 1 120 120
4.4 Stump >> 1 80 80

8
 4.5 Cupboard >> 1 500 500
Sub total 1900
5. Electric & water line
5.1 Electric line 2,000 2,000
5.2 Water line 3000 3000
Sub total 5,000

Note;- The farm has most of inputs that it had been working with it during the past
farm activity years. How ever some important inputs are considere to be
pruchesed in ordre to strengthen the newly established farm.
Table 2:- Running cost for the first 12 months.
No Description unit quan. unit total
. price price
B Running cost for one year
6 Labour and salary
6.1 Farm & production supervisor at the wage of Mon. 12 800 9600
800EB/person/month
6.2. record keeper at the wage of >> 12 400 4800
400EB/person/month
6.3 Milkers and animal attendants at the wage of >> 12 1800 21600
450EB/person/month. For four workers
(450 x 4 =1800)
6.4 cleaners at the wage of 300EB/month >> 12 300 3600
6.5. marketing & sales service at the wage of >> 1 400 4800
400EB/month
6.6 Guards at the wage of 350EB/month/person. >> 12 700 8400
for 2 guards (350 x 2 =700)
Sub-total 52800

No. Description unit quan. unit total

price price
7 utilities
7.1 Communication Mon. 12 200 2400
7.2 Electric consumption KW 2400 0.566 1358
7.3
7.4 Transportation at assumption of 400EB/momth Mon 12 400 4800
sub total 8558
8 Others recurrent expenses
8.1 Repair and maintenance of car including Mon 12 500 6000
spear parts
8.2 Detergents. 4kg/month or 48 kg/year kg 48 20 960
8.3 plastic ear tags psc 12 8 96
8.4 permanent ear tag marker >> 2 50 100
8.5 calves feeder pail of 5Lt >> 3 25 75
8.6 Ordinary pail of 20 Lt >>. 2 30 60

9
 sub total 7291
9. Marketing cost
9.1packing material(grease proof paper/foil/ for kg 80 40 3200
butter
packing
9.2 Distribution cost To distribute products it lt 912 12 10944
requires to
travel 20km or (20 x 365 = 7300
km/year ),Which
needs 912lt fuel
Sub-total 14144
C Taxes

11. Feed requirement planning each group of herd for one budget year.
Feed planning is based on physiological state of the animals, locally available feeds,
scientifically valid concepts of the nutritive value of feeds & the animal's demand for
nutrients. Special emphasis had been given to animals in the following physiological
states:-
 average milk yield
 pregnancy
 Average body weight &
 average growth rate
It is advisable to calculate animal feed on the basis of dry matter requirements. DMI
depends upon quality of feeds, &. DM requirements for maintenance range 2.5-3% of
BW and 1kgDM/10lt of milk. DM requirements are calculated by the following
formulas:-
DM = (0.025 x BW) + (0.1 x MY)

Adult cow feed requirement:-

Hay
Mean adult cow's hay requirement remains the same through out 420 milking and
60 dry pregnant days or 480 production cycle at the level of 5 kg per day per cow.
Hence one cow needs 2400 kg (5 x 480 =2400) for total production cycle or1825kg
per year (2400X 365/480 =1825kg).

Concentrate:-

10
Based on physiological states of milking cow daily concentrate allowance is
calculated as 11kg/day/cow. For 420 milking days the cow needs 4620kg or
4015kg/year (4620 x 365/420)
Dry pregnant cow requires 4kg/day or 240kg for 60 dry days.

Heifer requirement:-
An average daily hay requirement for heifer above 12 month of age is calculated as
3 kg per day per heifer. There for annual requirement would be 3 x 365 =1095
kg/heifer/year. Average concentrate for maintainace & growth is 2kg per day or
730kg/year.

Grower requirement:-
Hay requirement for growers of 6-12 months of age is calculated as 2kg/day or
730kg per year. In addition to hay growers need 1.5 kg/day or 548kg per year.
Calf requirement:-
Mean calf hay requirement from the age of commencing rumination up to 6 months
of age is considered to be 1kg per day or 365kg per year. Average concentrate need
for calf is 1 kg/day, which is 365kg per year.

Table 3: - Herd structure & projection for the next 5 project period
Animal category Project years
2003 2004 2005 2006 2007
Milking 21 23 26 30 34
Dry pregnant 2 2 2 3 3
Heifers 3 3 4 5 5
Growers 3 4 4 4 4
Female calves 1 2 2 2 2
Total 30 33 38 44 48

11
 Table 4:- Annual feed requirement and cost per group of animal
Animal Hay Rqt concentrate Rqt Total feed
(Kg/ Unit price Total .(Kg Unit price Total price
category cost
animal price/year animal/year
/animal/year
/year
Milking 1525 1.5 2287.5 4015 4.00 16060.00 19347.5
Dry 300 1.5 450 240 4.00 960.00
1410.00
pregnant
Heifer 1095 1.5 1642.5 730 4.00 2920.00 4562.5
Grower 730 1.5 1095 548 4.00 2192.00 3287.00
Calf 365 1.5 547.5 365 4.00 1460.00 2007.5

Table 5: - Feed cost forecast over five project period

13
 2003 2004 2005 2006 2007
Conc. Conc Hay Conc Hay
Animal category Hay (gk) (kg) Hay(kg) .(kg) (gk) .(kg) (kg) Conc.(kg) Hay(kg)
Milking 32025.00 84315 47449 92345 61890 104390 61890 120450 70142
Dry pregnant 600.00 480 600 480 900 480 900 720 900
Heifers 3285.00 2190 3285 2190 5475 2920 5475 3650 5475
Growers 2190.00 1644 2920 2192 2920 2192 2920 2192 2920
Calves 365.00 365 365 730 730 730 730 730 730
Annul feed rqt.
(kg) 49763 88994 54619 97937 71915 110712 71915 127,742 80167
Unite price/kg 1.5 4 1.5 4 1.5 4 1.5 4 1.5
Total price 74,644.5 355,976 81,928.5 391,748 107,872.5 442,848 107,872.5 510,968 120,250.5
Total feed cost 430620.5 473676.5 550720.5 618840.5 695458.5

14
Water requirement:-
Consumption of water in the farm is stimated not only for drinking, but also for
animal washing, cleaning barns, and utensils. For easy calculation all these
necessities are computed in terms of an average requirement per animal. So it is
assumed that 110 lt/day/animal would fulfill te need oe
h
r 40.15m3/aninal/year.
The cost of one m3 water is considered to be 3.8EB. Thus annual cost of water for
one animal will be 40.15 x 3.8 EB. =152.57EB
Table6: - Water requirement
Project years
Description 2003 2004 2005 2006 2007
No. of animals 30 33 38 44 48
Water requirement (KW) 1204.00 1324.00 1525.00 1766.00 1927.00

water expense; at cost of 4577.1 5034.81 5797.66 6713 7323

152.57EB per animal/year

Medication and AI service cost:-

An assumption of medication cost is 300EB per animal per year.
AI service cost depend up-on number of readable animals and number of
insemination to be offered. According to an existing trend conception rate of the farm
is 1.8. Insemination cost is 50EB/inseminstion.
There for cost of AI service is 1.8 x 50 = 90EB/animal/year. For total cost see table---

Table: - Medication cost:-

Description Project years
2003 2004 2005 2006 2007
No. of animals 30 33 38 44 48
Medication expense at cost of 900 9900 11400 13200 14400
300EB/animal/year

Table 8: - AI service cost

Description Project years
2003 2004 2005 2006 2007
No. of bredable animals 23 25 28 33 37
AI service expense; 2070 2250 2520 2970 3330
at cost of 90EB per animal /year

Table: - 9 Medication and AI service cost:-

15
 De Project years
scription

2003 2004 2005 2006 2007

Medication expense 900 9900 11400 13200 14400
AI service expense; 2070 2250 2520 2970 3330
Total 2,970 12,150 13,920 16,170 17,730

Depreciation
At the end of production year the value of fixed asset can be determined by
subtracting indirect fixed cost (annual depreciation cost) From original value (OV) to
determine actual value of fixed assets.
Annual depreciation (AD) cost of fixed asset is calculated by straight-line method.
The useful life of the building, machinery & equipment and office equipment is
assumed to be 50, 15 and 20 years respectively.
So, annual depreciation cost on building =cost of building / useful life.
In our case; annual depreciation on building is 357820/50 = 7156.40 EB.
Annual depreciation on machinery & equipment 110135/15 = 7345.3EB
Annual depreciation on office equipment 1900/20 = 95 EB
Annual depreciation on fixed equipment = 14593.7EB
Table: - 10 Summary of project cost over the project period
A . 1. Summary of investment cost
No Description project period
2003 2004 2005 2006 2007

1.1 Pre- operation cost 7200

1.2 Construction cost 357,820
1.3 Machinery & 110135
equipment
1.4 Fixed office furniture 1900
and utilities
1.5 Electric & water line 5,000

sob-total 482055
Contingency (10%) 48205.5
Total investment 530260.5
B 2 Running cost
2.1 feed cost 430,620.5 473,676.5 550,720.5 618840.5 695,458.5
2.2 Water consumption 4,577.1 5,034.81 5,797.66 6713 7323
2.3 veterinary and AI 2,970 12,150 13,920 16,170 17,730
service
2.3 Labour and salary 52800 52800 52800 52800 52800
2.3 utilities 8558 8558 8558 8558 8558
2.3 Others recurrent 3,691 3,691 3,691 3,691 3,691

16
 expenses
2.3 Depreciation 12593.7 12593.7 12593.7 12593.7 12593.7
2.3 Marketing cost 14144 14144 14144 14144 14144

Sub-total 529,954.3 582,648.01 662,224.86 733,510.2 812,298.2

Contingency (10%) 52,954.3 582,64.8 662,22.48 733,51.02 812,29.82
Total running cost 582,908.6 583,294.81 662,909.34 734,294.22 813,140.02
Total working capital 1,532,228.6
(A +B)

10.2 Milk production plan

Milk production volume is highly subjected to
1. Milk yield per cow per year /lactation/ and
2. Calving index (CI)
Lactation length = CI – dry days.
There for lactation length is 480-60 = 420 days. Annual milk yield is calculated by the
formula:-
Annual milk yield /cow = Lactation yield x 365/CI.
An average milk production potential of a cow would be increased through out the
project period as the result of dairy farm improvement. So milk production trend will
be calculated as follow:-
An average lactation yield of first production year is =141lts x 420days = 4471lts
while annual yield will be 4471lt x 365days/480day/ = 3399 lt

17
 10.3 Project out puts
Major project out puts or income sources are; milk, culled animals and manure.
The indicators and price of project incomes are summarized in table ----and ---

Project out puts

Table: - 11 Milk production calendar
project Milk production Calves` Milk consumption annual unit Total price
period milk sales price
No of Avg. lactation average Annual No of calves mean milk Total
milking MY/cow/ length MY/cow farm consumption/ consum
cows day year production calf up to ption
(lt) (lt) (lt) weaning(lt)

F M F M
2003 23 14 420 4471 102839 8 8 380 60 440 102,399 7
716,793
2004 25 14 420 4471 111781 8 8 380 60 440 111,341 7
779,387
2005 28 15 420 4790.625 134137.5 9 9 380 60 440 133,697.5 7 935,882.5
2006 33 16 420 4791 158091 11 11 380 60 440 157,651 7
110,3554
2007 37 17 420 5110 189070 11 11 380 60 440 188,630 7 132,0410
Total 695,918.5 1900 300 2200 693,718.5 7 4,856,026.5
Note: - Male calves would be fed with 4lts of milk up to 15 days of age per day.

18
 Table: - 12 Project out put indicators
No. Descriptions Project period
2003 2004 2005 2006 2007
1 Milk 188630 157651 133697.5

2 Culled animals 2 2 3 3 3
3 Male calves 8 8 9 11 11
4 Manure;- Assuming that the an 120 136 152 176 192
average production of dung would
be about 4 ton/animal/year

Table: -13 project income forecast over the next five project period.
No. descriptions Project period

19
 2003 2004 2005 2006 2007
1 Milk 716793 779,387 935882.5 1103554 1320410
2 Culled animals; at the cost of 6000 6000 9000 9000 9000
3000EB/animal
3 Male calves at the cost of 500EB/calf at 4000 4000 4500 5500 5500
the age of 15 days
4 Manure; Assuming that the cost manure 6000 6800 7600 8800 9600
would be 50EB/ton /year
Total 732,793 796,187 956,982.5 1,126,854 1,344,510

Table: - 14 Cost-benefit analysis

descriptions Project period
2003 2004 2005 2006 2007

20
Investment 949,320 29600 29600 29600 29600
Running Cost 582,908.6 583,294.81 662,909.34 734,294.22 813,140.02

Total cost 1,532,228.6 612,894.81 692,509.34 763,894.22 842,740.02

Revenue 732,793 796,187 956,982.5 1,126,854 1,344,510
Gross profit before tax 183292.19

21
22
 Feeding alley
Feeding trough

maternity yard
cow stall(12cows)

Gutter
Tail to tail dairy hosing lay out
for 24 cows & 8 followers

cow shed (12cows)

Maternity yard
Feeding trough
Feeding alley
Water trough Feeding trough

Adult Growers yard (6)

open paddock
Gutter

Gutter Drainage
growers Calves pens (2)
Open paddock

Water trough

Isolatio
n room Hay shed
Toilet 23

Conc. Office
Note for future
Table -- Summary of annual depreciation (indirect cost on fixed assets) (81)
No. Item useful life AD Interest (%) Total Salvage Total value
(year) (EB) indirect cost value (EB) at the end
6 of the year
1 2 3 4 5 (3+4) 7
1 Building
2 Machinery
equipment
3 office
equipment
4 Herd
Total

Herd structure and projection

No. herd group stoke at the Calving No. of Mortality No. of culling culled stoke at the
beginning of the rate birth rate death rate No. end of the
year year
1 Adult cows
2 Heifers 12 m of age
and above
3 Growers 6-12m of
age
4 calves 0-6m of age

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support and promot dairy dev't, increase wealth and economic growth, support in
poverty reduction and to acheive millinium goal. In general the project contribute in
enhancing and speeding-up national devt and improving general well being of the
society as a whale.

Project management and organization

For the purpose of proper business operation the project would have high level of
management with the following organizational set-up and with corresponding defined
job description.
- General manager- project owner
- Farm and production super visor
- Accountant
- Marketing and sales service
- Record keeper
- Milk and milk product quality control service
- Veterinary and consultant service
- Milkers and animal attendants
- Guards
- Other supportive workers

Calving index is calving interval in days b/n calving. Existing calving index is 16m
(480days) which is 60 x 100/480 = 12.5%
From the above information calving rate at 16m of calving interval is 75% (12
x100 =75%)
16

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Assuming that there will be the following structure of herd in
the farm through out the year:-
 For 33 milking cow r with average requirement of 10kg per day
 at cost of 2.5EB/kg concentrate (33x 2.5 x 365days) ---------------30112.5EB
 For -----milking and pregnant with average requirement of 12kg per day
 For--- dry pregnant cows 34kg/day x17x 4EB x 365days=
 For --- heifers after half year 1.5 kg/day/heifer
 For --- growers

Feed and water requirement

Feed requirement
 for 50 adult cows 5kg/day (50 x 4 kg x 365day) ------------- = 91250 Kg
 for 4 heifers 2kg/heifer (4 x2kg x365day) --------------- = 2920kg
 for 6 growers 1.5 kg/day (6 x1.5kg x 365day) -------------- = 3285kg
 Annual hay requirement --------------- = 97,455Kg or about
4,873 bell
Assuming that the cost of 1kg hay is 0.75EB (97455 x 0.75) = 73,091.25
Concentrate feed requirement

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