PROJECT REPORT

ON

SHEEP BREEDING UNIT WITH

NELLORE BROWN BREED
UNIT SIZE 500 +25

Submitted by
Farmer name

Sreeram Somaiah Alias Sreeram Someswar Rao

MANDAL:Raghunadhapale
m District: Khammam
Village: Kamanchikal
f

sf
Submitting proposals to Entrepreneurship Development programme
under National Livstock Mission scheme(NLM)
Total Project Cost :Rs. 1 Cr
NELLORE SHEEP

Home Tract: Andhra Pradesh

NELLORE BROWN EWE (FEMALE)

Morphological Characteristics

Three varieties are distinguished, primarily on the basis of colour: “Palla”, completely white
or white with light brown spots on head, neck, back and legs; “Jodipi” (also called
“Jodimpu”), white with black spots, particularly around the lips, eyes and lower jaw, but
also on belly and legs; and “Dora”, completely brown. A survey showed 52.7% Palla,
34.04% Jodipi, and 13.43% Dora.
Body: Relatively tall
Body coat: Little hair except at brisket, withers and breech.
Horns: The rams are horned; the ewes are almost always polled.
Ears: Long and drooping
Wattles: present in 86% animals
Tail: Short and thin
Morphometric traits
Body weight: Adult males: 36.69±2.56 kg; Adult females: 30.00±0.27 kg
Body length: Adult males: 68.31±0.63 cm; Adult females: 67.05±0.22 cm
Height at withers: Adult males: 76.46±1.36 cm; Adult females: 72.75±0.24 cm
Chest girth: Adult males: 75.39±1.74 cm; Adult females: 72.78±0.23cm
Ears length: 15.11±0.08 cm
Tail length: 10.28±0.13 cm
Reproductive traits
Age at first lambing: 846 days
Lambing interval: 428 days
Litter size: Essentially single
Production traits
Age at slaughter: 6 months
Dressing percentage: 47.00%
Feed conversion efficiency: 15.06%
NELLORE BROWN RAM (MALE)
Sheep Farming (500 Ewe+25 Ram) 1.Introduction
Sheep with its multi-facet utility for wool, meat, milk, skins and manure, form an important
component of rural economy particularly in the arid, semi-arid and mountainous areas of the country. It
provides a dependable source of income to the shepherds through sale of wool and animals.
The advantages of sheep farming are:
b. The foundation stock are relatively cheap and the flock can be multiplied rapidly.
c. Sheep are economical converter of grass into meat and wool.
d. Sheep will eat varied kinds of plants compared to other kind of livestock. This makes them
excellent weed destroyer.
e. Unlike goats, sheep hardly damage any tree
f. The production of wool, meat and manure provides three different sources of income to the
shepherd.
g. The structure of their lips helps them to clean grains lost at harvest time and thus convert waste feed
into profitable products.
h. Mutton is one kind of meat towards which there is no prejudice by any community in India and
further development of superior breeds for mutton production will have a great scope in the
developing economy of India.
2.Scope for Sheep Farming and its National Importance
India has 74.26 million sheep as per 2019 Livestock Censusof government of India.
and ranks third in the world. The contribution of sheep through export of meat is 8 per cent of the total
export value of agricultural and processed food products. Sheep skin in the form of leather and leather
products is also exported. Sheep make a valuable contribution to the livelihood of the economically
weaker sections of the society. Among the livestock owners the shepherds are the poorest of the lot.
3.Project description
Sheep unit with 500 Ewe+ 25 Ram established under National Livestock Mission (NLM) under
entrepreneurship development Programme
4.Objectives
The project will be established to achieve the following objectives:
1. Employment generation
2. Increase of per animal productivity through breed improvement
3.Supply of good quality breeding sheep to Local farmers
4.Breed Conservation
5.Increase in production of Mutton.
6.Spreading awareness about scientific rearing practices, nutrition, disease prevention etc
5.Project Location & Financial assistance

Farm is locate at the VILLAGEKamanhikal, MANDALRaghunadhapalem,

KhammamDISTRICT ,TELANGANA STATE .
This unit is Financially assisted by Union BANK ,Wyra Road,KhammamBranch through Loan and 50
% subsidy through NATIONAL LIVESTOCK MISSION scheme by Central Government.

6.Scheme
Entrepreneurship Development programme under National Livstock Mission (NLM) Ministry
of Fisheries, Animal Husbandry and Dairying ,Department of Animal Husbandry and Dairying
Government of India

7.Feed & Fodder cultivation

Fodders like Legume Hedge Lucerne type and Non Legume hybrid napier Maize Jowar SSG
varities are cultivated on Farm land. Concentrate Feed prepared by mixing of locally available
ingredients like Maize ,cotton seed cake ,ground nut cake, Rice bran as per RaionFormula.Private
manufacturers concentrate feed also available in local market

8.Labour

Honest, economic and regular supplies of labors are available in the project area
9.Veterinary aid
Veterinary aid facilities From Primary veterinary centre and district veterinary
hopital of Govt. of Telangana state are available near the proposed farm.
10.Market potential and supply of good germplasm to local farmers

Our Farm will supply good quality breeding sheep to local farmers . People
will prefers Mutton weekly twice it is a good source protein and during Festivals almost every
household prefer mutton in Telangana state.In addition to local market, it will be transported to
nearby Towns also.
11.Economics of the Project
Sheep Project Report 500+25 is prepared by following Technical Assumptions

ASSUMPTIONS:
Sl. No. Description Remarks
1 Unit size 500 females breeders (Ewes)+25 males (Rams)
2 Rearing system Semi intensive grazing
3 Breed Nellore Brown breed
4 Shed area 9000 sq. ft.
5 Feeders, Drinkers. Cement with Iron rods(@no.1/40 Sheep )
6 Non legume crop 3 crops/1acre/annum
7 Hedge Lucerne crop 1st cut after 45 days. Later on every 25 days.
 8 Labour One labourer for 100 Sheep
9 Insurance cost As per Prevailing norms in customer area.
10 Silo sizes Case to case design is tailor made
11 Growth rate 4-5 kgs per 1 month – in house lamb.
12 Veterinary management Rs.100 per Sheep
13 Feeding systems Stall feeding
14 Manure out put 0.3tons /adult Sheep/year
15 Breeder cycle duration 8 months
16 Lamb fattening cycle 6 months -2 months on milk + 4 months on feed
duration

RECOMMENDATIONS

Sl. No. Description Remarks

1 Non legume crop
2 Hedge Lucerne
3 De oiled cakes
4 Sheds construction
5 Breeder stock
6 Irrigation facilities
7
Irrigation facilities
In house production is mandatory.
In house production is mandatory.
Purchased from market.
Entrepreneur should minimize cost on sheds.
Purchase of good breeders is important
Normal/sprinkler irrigation for foder cultivation
Normal/Sprinkler irrigation for hedge Lucerne cultivation.

TECHNO ECONOMIC PARAMETERS:

Sl. No. Description Remarks

1 Cost of non legume fodder in house 500 Rs/per 1 ton.
production

2 Cost of hedge Lucerne grass in house 100 Rs/1 ton.

production.

3 Breeding percentage 80 %
4 Lambing rate 1.2 lambs /ewe
5 Mortality rate in new born 15 %
6 Mortality rate in Adults 5 %
7 Culling percentage in Adult ewes 20 %
8 Sale price of lambs 350 Rs/Kg live weight.
9 Cost of Mineral feed supplements 0.75 Rs/ 1 day.
10 Cost of Shed construction 380 Rs/1sq.ft.
 11 Cost of Chain link mesh fencing 25 Rs/1sq.ft.
12 Cost of Feeders with Drinkers 5000 Rs/1 no.
13 Cost price of breeders 300 Rs/1kg live.
14 Lambs per Breeding Cycle 400 number
15 Lambs (female) replaced for died Ewes 140 number

Feeding chart

Feed consumption in Kg Green Dry Concentrate Total cost per animal

fodder fodder/year/ /year/animal per year
requirement/animal
year /animal
Ewe 547.5 365 11.2 863
Ram 547.5 365 8.4 807
Male lamb 54 22.5 9 229.5
Female lamb 54 22.5 9 229.5
Cost of feed 0.5 01 20

All females concieved within first one month after arriving in farm ( few may be already
carrying early pregnancy at procurement time )

% of conception 90%

first lambing month at farm 6 th month

Breeding cycle length 8 months

lambs born per lambing from each ewe 1.2

equal @ 1 : 1
Male : female ratio of new born

Mortality in lambs 15% from birth to sale

Mortality in adults 5% per breeding cycle

Culling of adult females 20 % per breeding cycle

Once in 2 years
Replacement of adult male

Purchased from out side

 Replacement of culled females Made with farm born lambs

No of lambs avaialble for sale in each

shown in lambing chart year wise

breeding cycle

Weight of lambs after 6 months age including 25 kgs Rounded off

birth weight ( 23.4 + 1.7 )

first sale month after start of farm 12 th month ( thereafter once

in 8 months )

Sale price of lambs @ Rs 350 X 25 kgs 8750

Sale price of culled females Rs 350 X 30 kgs 10500

Sale price of Replaced males @ 350 x 40 Kgs 14000

Manure production each adult including lamb 144 kgs ( 600gms per day )

Sale price of manure Rs 2 per Kg

Income from manure from each adult + lambs

Rs 288

Feeding cost ( Estimated) shown in feeing chart

lambs available for sale per breeding cycle shown in lambing chart year wise
PROJECT REPORT OF SHEEP FARMING for 500EWES + 25RAMS:

SchemeName ENTREPRENEURSHIP DEVELOPMENT PROGRAMME

UNDERNATIONAL LIVESTOCK MISSION

1. A) Non Recurring Expenditure/Capital Cost:

Sl. No. Description No.of Unit Total Remarks
units cost

1 Construction of Housing 5500 350 1925000

Shed for Parent Stock. (55
x 100 ft ) (Shed @ 10 sq.ft
for ewe,20 sq.ft for
ram )500ewes,25 rams

2 Lamb Shed and Sick Pen (4 3500 250 875000

Sq.ft for kid)

3 Cost of 500 ewes + 25 rams 400000

Rams 25 16000

Ewes 500 11000 5,500,000

4 Chaff Cutter 2 50000 100,000

Land fencing and

partitioning

6 Cost of chain link mesh 100000

fencing Fencing for
compound / Rs. 20 per ft
Gates 10 8000 80000

7 Borwells and pipelines 1 102000

8 Equipment 525 300 157500

feeders and waterers

9 veterinary equipments 525 120 63000

10 Fodder cultivation (5 acres) 5 20000 100000

11 Transportation cost 525 200 105000

12 7.5 442500

Insurance cost 7.50%

13 Miscellaneous 50000

TOTAL CAPITAL COST 10,000,000

Bank Loan 40% 4000000

Subsidy 50% (Max is 30 Lakhs) 50% 5000000

Margin Money 10% 1000000

Rate Of Intrest 12%

Detailed Project Report for Sheep unit with 500 EWE+25 RAM
 PROJECT AT A GLANCE

1. Name of the Farmer: Sreeram Somaiah Alias Someswar Rao

2. FATHER name Peddulu
3. Address

10-6-95/6,Burhanpuram.Khammam Urban
4. Farm Location:-

A) Village: KAMANCHIKAL

RAGHUNADHAPALEM
B) Mandal:
KHAMMAM DISTRICT,TELANGANASTATE
C) District and State

5. Name of the bank financing : UNION BANK OF INDIA

WYRA ROAD,MAIN BRANCH,KHAMMAM
Bank Branch:

6. Project Details :-
Sheep breed development unit 500+25
7. Product Breeding ewes and Rams, Mutton

8. Total Project cost: 10000000

9. Margin Money @ 10% of Total

Project cost: 1000000
10. Bank loan @ 40% of Total Project 4000000
cost:

10.Subsidy @50% of Total Project cost 5000000

11.Discount COST @15% DF 1392975.89

12.Discount Returns @15% DF 3080991.71

13.Net Present Worth (NPW) 128094.93

14.Benefit Cost Ratio (BCR) 2.21

15. Internal Rate Of Returns (IRR) 40%

16.Scheme Name Entrepreneurship Development programme

under National Livstock Mission (NLM)

Recurring
1. B) Expenditure/working
capital (1st year )
 Cost of feed in Rs.
Sheep
Female adult
feeding cost of
female adult for 12
1 months is 863 500 863 431500
@per day feeding
2.4cost @
permonth@71

Male adult feeding

cost of female
adult for 12
2 months is 807 25 807 20175
@per day
feeding 2.3cost @
permonth@70
Creep feed from
3 15th day to 45 th 400 6.5 78000
day ( 30 Days)
400*6.5*30
Feeding cost of
lambs (400
lambs/cycle) per
4 day feeding cost 400 229.5 307530
Rs 6.7 from 45th
day to 180 th day (
135 days)

4 Cost of medicines for Adults 525 100 52500

5 Cost of medicines for Lambs 400 50 20000

6 Wages and salaries 5 100000 500000

TOTAL 1409705

TOTAL Project Cost(A+B) 11409705

Years

A)Recurring Expenditure 1 2 3 4 5 6

Cost of feed
in Rs. /As
per feeding
chart
Sheep
Female adult
feeding cost
of female
adult for 12 500*863 431500 648760 975190 717800 866020 866020
months is 863
@per day
feeding
2.4cost @
permonth@71
Male adult
feeding cost
of female
adult for 12
20175 20175 24120 20175 23000 23000
months is 807 25*807
@per day
feeding
2.3cost @
permonth@70

Creep feed
from 15th day
to 45 th day 400*6.5 78000 79950 177450 99450 95550 95550
( 30 Days)
400*6.5*30

Feeding cost
of lambs (avg
400
lambs/cycle)
per day 6.7 rs 307530 307530 651240 388935 443205 443205
feeding cost day
Rs 6.7 from
45th day to
180 th day (
135 days)

Cost of
medicines for 52500 60000 210000 140000 150000 150000
adults

Cost of
medicines for 20000 30000 80000 60000 50000 50000
lambs

Wages and
salaries (five
5 100000 500000 500000 500000 500000 500000 500000
labours per
annum )
 4.5%on
Insurance cost of
(4.5%of each 252000 252000 252000 252000 252000
animals cost) animal

Total 1409705 2078415 2970000 2278360 2479775 2479775

Lambing chart
No of No of animals
Batch No of
No of animals No of animals No of Total retained at the
in beginning lambs
Yea r Deaths culled lambs disposed end of the
of the year born
sold year

Adults Lambs Lamb Lambs Adults Lambs

Adults s Adult s Adults

M F M F M F M F M F M F M F M F M F M F M F
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

I 25 500 0 0 200 200 0 25 30 30 0 0 200 200 0 25 200 200 25 475 0 0

II 25 475 0 0 210 210 0 25 30 30 0 0 200 155 0 25 200 155 25 520 0 0
III A 25 520 0 0 220 220 5 25 20 20 0 0 200 160 5 25 220 200 30 555 0 20
B 30 555 0 20 235 235 1 10 50 50 10 55 185 169 1 65 235 219 25 600 0 20
0 5
IV 25 600 0 0 255 255 0 30 60 60 5 105 115 115 5 135 175 175 25 540 80 80
V 25 540 80 80 245 245 5 30 55 55 0 105 230 230 5 135 285 180 25 515 80 80
VI C 25 515 80 80 235 235 5 35 50 50 0 0 220 275 5 35 275 230 25 535 75 75
D 25 515 75 75 235 235 0 30 50 50 0 0 220 275 0 30 275 230 25 535 75 75
Project viability Calculation
Calculation of NPW,BCR,IRR
Year recurring Returns discount discount BCR NET INCOME NET INCOME NPW=DISC NET IRR
Cost Discount Cost Returns @ 15% DF income-
Factor @15% DF @15% DF capital cost
@ 15%

Capital 10000000 0 1 10000000 -

cost 10000000
1 1409705 3738000 0.87 1225830.43 3250434.78 2.65 2328295 2024604.35 3738000
2 2078415 3389250 0.76 1571580.34 2562759.92 1.63 1310835 991179.58 3389250
3 2970000 7537000 0.66 1952823.21 4955699.84 2.54 4567000 3002876.63 7537000
4 2278360 4057500 0.57 1302659.72 2319888.79 1.78 1779140 1017229.07 4057500
5 2479775 5806500 0.50 1232886.44 2886856.71 2.34 3326725 1653970.27 5806500
6 2479775 5806500 0.43 1072075.16 2510310.19 2.34 3326725 1438235.02 5806500
8357855.3 18485950.244 2.21 0 10128094.93 10128094.93 40%
1 discount 1392975.89 1392975.89 3080991.71 2.21 16638720.00 128094.93
Cost
@15%
DF

2 discount 3080991.71 3.Net 128094.93 4.Benefit 2.21181 5.Internal Rate 40%

Returns Present Cost Ratio Of Returns (IRR)
@15% worth (BCR)
DF @15%