PROJECT REPORT OF A LARGE-SCALE CROSSBRED COW DAIRY FARMPREPARED BY

Dr. Vivek M. PatilAssistant Professor

Department of Livestock Production Management, Veterinary College, BidarKarnataka Veterinary, Animal & Fisheries Sciences University

http://sites.google.com/site/viveklpm/

A OverviewName of the Proprietor Shaik JilanAddress kadiriUnit size 80Project Cost (Rs.) 8,128,000Bank Loan (Rs.) 0Margin Money (Rs.) 0Repayment period (years) 3Loan rate of interest (%) 0

B Techno-Economic ParametersCost of each cow (Rs.) 40,000Average daily milk yield of each cow (lit) 15Sale price of milk (Rs./lit) 40Irrigated land required for fodder production (acres) 16.00Cost of construction of cow sheds (Rs/sq.ft.) 400Cost of construction of young stock sheds (Rs/sq.ft.) 250Cost of construction of store rooms (Rs/sq.ft.) 200Cost of production/purchase of green fodder (Rs/kg) 0.40Cost of production/purchase of dry fodder (Rs/kg) 3.00Cost of concentrate feed (Rs/kg) 14.00Cost of veterinary aid per animal per year (Rs.) 1000Cost of electricity and water per animal per year (Rs.) 1000Rate of livestock insurance premium (%) 4Annual wages of each farm labourer (Rs.) 20,000Sale price of empty livestock feed gunny bags (Rs.) 8.00Expenditure on rearing of calves will be offset by the income realized fromtheir sale.Heifers will be retained on the farm as replacement stock.Farmyard manure shall be used for fertilizing the fodder plots.

C Lactation Chart(cows are purchased in 2 batches at an interval of 5-6 months)

Year 1 Year 2 Year 3 Year 4 Year 5No. of

animals in milk dry in milk dry in milk dry in milk dry in milk dry

First Batch 40 12000 2600 12000 2600 12000 2600 12000 2600 12000 2600Second Batch 40 7200 0 12000 2600 12000 2600 12000 2600 12000 2600

Total (days) 19200 2600 24000 5200 24000 5200 24000 5200 24000 5200

D Feed and FodderDaily

Requirement Year 1 Year 2 Year 3 Year 4 Year 5

Rate/kg in milk dry in milk dry in milk dry in milk dry in milk dry in milk dryGreen fodder 0.40 35.00 30.00 268,800 31,200 336,000 62,400 336,000 62,400 336,000 62,400 336,000 62,400

Dry fodder 3.00 4.50 7.50 259,200 58,500 324,000 117,000 324,000 117,000 324,000 117,000 324,000 117,000Concentrates 14.00 6.00 1.00 1,612,800 36,400 2,016,000 72,800 2,016,000 72,800 2,016,000 72,800 2,016,000 72,800

Total (Rs) 2,140,800 126,100 2,676,000 252,200 2,676,000 252,200 2,676,000 252,200 2,676,000 252,200

E Investment CostSpecifications Phy. units Unit cost Total

Cost of animals 80 40,000 3,200,000Construction of cow shed sq. ft. 6400 400 2,560,000Construction of young stock sheds sq. ft. 3200 250 800,000Construction of stores/misc rooms sq. ft. 800 200 160,000Cost of milking equipment 1 set 800,000 800,000Cost of liquid milk storage equipment 1 set 200,000 200,000Cost of fodder cutting equipment 1 set 160,000 160,000Cost of standby power supply 1 set 120,000 120,000Cost of misc. equipment 1 set 80 500 40,000Initial fodder cultivation cost acres 16 3,000 48,000Misc. expenses 80 500 40,000

Total 8,128,000

F Cash Flow Analysis YearsI II III IV V

1 Costsa) Capital cost 8,128,000b) Recurring cost

Feeding during lactation period 2,140,800 2,676,000 2,676,000 2,676,000 2,676,000Feeding during dry period 126,100 252,200 252,200 252,200 252,200Veterinary aid 80,000 80,000 80,000 80,000 80,000Cost of electricity & water 80,000 80,000 80,000 80,000 80,000Insurance 128,000 128,000 128,000 128,000 128,000Labour wages 200,000 200,000 200,000 200,000 200,000

Total 10,882,900 3,416,200 3,416,200 3,416,200 3,416,200

2 BenefitsSale of milk 11,520,000 14,400,000 14,400,000 14,400,000 14,400,000Sale of gunny bags 18,848 23,872 23,872 23,872 23,872Depreciated value of buildings 0 0 0 0 2,640,000Depreciated value of equipments 0 0 0 0 660,000Closing stock value 0 0 0 0 1,600,000

Total 11,538,848 14,423,872 14,423,872 14,423,872 19,323,872

3 DF @ 10% 0.91 0.83 0.75 0.68 0.624 Discounted Costs @ 10% 9,893,545 2,823,306 2,566,642 2,333,311 2,121,191 19,737,9955 Discounted Benefits @ 10% 10,489,862 11,920,555 10,836,869 9,851,699 11,998,604 55,097,5896 NPW @ 10% 35,359,5947 BCR @ 10% 2.798 DF @ 50% 0.67 0.44 0.30 0.20 0.139 Net Benefits 655,948 11,007,672 11,007,672 11,007,672 15,907,672

10 Discounted Net Benefits @ 50% 437,299 4,892,299 3,261,532 2,174,355 2,094,837 12,860,32211 IRR #NUM!

G Repayment Schedule

Year Income Expenses GrossSurplusEquatedAnnual

InstallmentNet Surplus

I 11,538,848 2,754,900 8,783,948 0 8,783,948II 14,423,872 3,416,200 11,007,672 0 11,007,672III 14,423,872 3,416,200 11,007,672 0 11,007,672IV 14,423,872 3,416,200 11,007,672 0 11,007,672V 14,423,872 3,416,200 11,007,672 0 11,007,672

Capital Recovery Factor 0.00

Date : 11/26/2013 10:36:19

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