PROJECT REPORT OF A SMALL-SCALE CROSSBRED COW DAIRY FARM

PREPARED BY

Dr. Vivek M. Patil

Assistant Professor
Department of Livestock Production Management, Veterinary College, Bidar
Karnataka Veterinary, Animal & Fisheries Sciences University
http://sites.google.com/site/viveklpm/

Overview
Name of the Proprietor
Address
Unit size
Project Cost (Rs.)
Bank Loan (Rs.)
Margin Money (Rs.)
Repayment period (years)
Loan rate of interest (%)

Niraj Kumar
belsand
20
2,148,000
1,933,200
214,800
5
12

Techno-Economic Parameters
Cost of each cow (Rs.)
Average daily milk yield of each cow (lit)
Sale price of milk (Rs./lit)
Irrigated land required for fodder production (acres)
Covered area required for each animal under loose housing
including storage area (sq.ft.)
Cost of construction of livestock shed and store room (Rs/sq.ft.)
Cost of production/purchase of green fodder (Rs/kg)
Cost of production/purchase of dry fodder (Rs/kg)
Cost of concentrate feed (Rs/kg)
Cost of veterinary aid per animal per year (Rs.)
Cost of electricity and water per animal per year (Rs.)
Rate of livestock insurance premium (%)
Annual wages of each farm labourer (Rs.)
Sale price of empty livestock feed gunny bags (Rs.)
Expenditure on rearing of calves will be offset by the income
realized from their sale.
Heifers will be retained on the farm as replacement stock.
Farmyard manure shall be used for fertilizing the fodder plots.

80
200
0.40
3.00
14.00
500
200
4
72,000
8.00

Lactation Chart
(cows are purchased in 2 batches at an interval of 5-6 months)
Year 1
No. of
animals
10
First Batch
10
Second Batch

in milk

Total (days)

90,000
20
32
4.00

3000
1800
4800

Year 2

dry
650
0
650

in milk
3000
3000
6000

Year 3

dry
650
650
1300

3000
3000
6000

Year 4
dry
650
650
1300

in milk
3000
3000
6000

Year 5
dry
650
650
1300

in milk

dry

3000
3000
6000

650
650
1300

Feed and Fodder

Daily
Year 1
Year 2
Requirement
Rate/kg in milk dry
in milk
dry
in milk
dry
35.00 30.00 67,200 7,800 84,000
15,600
Green fodder 0.40
4.50 7.50
64,800 14,625 81,000
29,250
Dry fodder 3.00
6.00 1.00 403,200 9,100 504,000
18,200
Concentrates 14.00
Total (Rs) 535,200 31,525 669,000
63,050

in milk

Year 3
in milk
84,000
81,000
504,000
669,000

Year 4
dry
15,600
29,250
18,200
63,050

in milk
84,000
81,000
504,000
669,000

SpecificationsPhy. units Unit cost

20
90,000
sq. ft.
1600
200
20
500
Equipment (chains, ropes, baskets, milk pails, manual chaff cutter etc.)
Initial fodder cultivation cost
acres
4
3,000
Misc. expenses
20
300
Total

Total
1,800,000
320,000
10,000
12,000
6,000
2,148,000

Investment Cost
Cost of animals
Construction of cow shed and storage area

Year 5
dry
15,600
29,250
18,200
63,050

in milk
84,000
81,000
504,000
669,000

dry
15,600
29,250
18,200
63,050

Cash Flow Analysis

II

Years
III

IV

Total

535,200
31,525
10,000
4,000
72,000
288,000
3,088,725

669,000
63,050
10,000
4,000
72,000
288,000
1,106,050

669,000
63,050
10,000
4,000
72,000
288,000
1,106,050

669,000
63,050
10,000
4,000
72,000
288,000
1,106,050

669,000
63,050
10,000
4,000
72,000
288,000
1,106,050

Total

3,072,000
4,712
0
0
0
3,076,712

3,840,000
5,968
0
0
0
3,845,968

3,840,000
5,968
0
0
0
3,845,968

3,840,000
5,968
0
0
0
3,845,968

3,840,000
5,968
240,000
5,000
900,000
4,990,968

0.91
2,807,932
2,797,011
8,595,644
2.43
0.67
-12,013
-8,009
22808%

0.83
914,091
3,178,486

0.75
830,992
2,889,533

0.68
755,447
2,626,848

0.62
686,770 5,995,232
3,098,998 14,590,876

0.44
2,739,918
1,217,741

0.30
2,739,918
811,828

0.20
2,739,918
541,218

0.13
3,884,918
511,594

Year

Income

Expenses

Gross
Surplus

I
II
III
IV
V

3,076,712
3,845,968
3,845,968
3,845,968
3,845,968

940,725
1,106,050
1,106,050
1,106,050
1,106,050

2,135,987
2,739,918
2,739,918
2,739,918
2,739,918

I
1 Costs
a) Capital cost
b) Recurring cost
Feeding during lactation period
Feeding during dry period
Veterinary aid
Cost of electricity & water
Insurance
Labour wages

2,148,000

2 Benefits
Sale of milk
Sale of gunny bags
Depreciated value of buildings
Depreciated value of equipments
Closing stock value

3
4
5
6
7
8
9
10
11

DF @ 10%
Discounted Costs @ 10%
Discounted Benefits @ 10%
NPW @ 10%
BCR @ 10%
DF @ 50%
Net Benefits
Discounted Net Benefits @ 50%
IRR

3,074,373

Repayment Schedule

Capital Recovery Factor

Equated
Annual
Installment
525,830
525,830
525,830
525,830
525,830

Net
Surplus
1,610,157
2,214,088
2,214,088
2,214,088
2,214,088

0.27

Date : 4/3/2015 21:06:01

Note :
Data in highlighted cells are outside the parameters of this sheet. Please modify and re-enter the same in the Form.
Disclaimer :
The data provided in the Project Report is for reference purposes and uses standard assumptions. For customized Project Reports please contact the author at dr.vivekmpatil@gmail.com or your
nearest Veterinarian.