PROJ ECT REPORT FOR DAIRY FARM WITH FIFTY MURRAH

BUFFALOES
Buffalo farming is a profitable business & has good potential for employment generation . India has 57%
of world buffalo population. Buffalo milk contributes 57% of total milk production. Buffaloes have several
advantages over crossbred cows as farm animal.
1-They are well adopted to agro-climatic condition of our country
2-They are more disease resistant in comparison to crossbred cows. (less incidence of milk fever &
mastitis in buffaloes)
3-They can thrive well on crop residue
5-Buffalo milk contains more butter fat for which the price of buffalo milk is more.
This project report is based on following assumptions:-
Freshly calved murrah female buffaloes in 1st or 2nd lactation will be purchased in two batches
of twenty-five animals each/batch at an interval of 5 to 6 months.
Availability of 5 acres of land for fodder cultivation is prerequisite for the project,
Dung produced will be utilized as Manure for fodder cultivation.
Cost of rearing calves not considered as it will be repealed by their sale
In case of death of adult animal new buffalo will be purchased from insurance claim money.
Heifers will be used as replacement stocks
The scheme will be successful on the above guidelines if run by the dairy farmer on scientific lines.
Techno-economic parameters
Techno economic parameters
Bred of buffalo Murrah
No. of Animals 50
Cost of Animal (Rs./animal) including
transportation
85000
Average Milk Yield (litre/day) 15 liter
Covered Floor space per adult animal(sq.ft) 30
Open space per adult animal(sq.ft) 100
Menger length/animal in inches 25
Covered Floor space per young stock (sq.ft) 15
Open space per young stock (sq.ft) 50
Menger per young stock in inches 15
Construction cost of office & floor in sq.ft 250
Cost of construction per sqft (Rs) 200
Cost of milking machine with accessories 430000
Cost of other equipment per animal (Rs.) 1000
Cost of fodder cultivation (Rs./acre/season) 5000
Insurance premium (% per annum) 5
Veterinary aid/animal/ year (Rs.) 1000
Cost of concentrate feed (Rs./kg) 12
Cost of dry fodder (Rs./kg) 1
Rate of interest (%) 12
Repayment period (years) 6
Selling price of milk/litre (Rs./kg) 24
Sale price of gunny bags (Rs. per bag) 10
Lactation days 270
Dry days 150
DAILY FEEDING AND COST CHART FOR DAIRY BUFFALOES
Item FEEDING STUFF COST/KG
Rs.
During lactation period During dry period
Quantity (kg) Cost (Rs.) Quantity
(kg)
Cost (Rs.)
i Concentrate
feed
12 6.5 78 1 12
ii Green fodder 1 25 Home
grown
20 Home
grown
iii Dry fodder 2 6 12 5 10
Total 90 22
feeding chart
Lactation chart/Dry chart
Sr.No Particulars Years
I II III IV V Vi vii
i) Lactation
Days
10500 12125 12125 12125 11000 12125 12125
ii) Dry Days 3125 6125 6125 7125 7250 6125 5375

Project cost and bank loan Cost. In Rs.
1. Capital cost
2. Covered area for 50 Buffaloes @
30sq.ft/bufalo@200/sqft
300000
3. Covered area 50calves 15 sq.ft./calf @200/sq.ft. 150000
4. Cost of construction of boundary & manger for open
space
250000
5. Cost of construction store room 200 sq.ft @250 per
sq.ft
50000
6. Cost of construction of office cum marketing
room 250 sq ft @250 per sq.ft
62500
7. Cost of 50 Murrah Buffaloes with minimum average
15 liter milk yield /day @55000/buffaloes including
transportation
2750000
8. Cost of generator set 80000
9. Cost of milking machine with accessories &
installation charge
430000
10. Cost of dairy appliance @Rs.1000/Buffalo 50000
11. Cost of bulk cooler of 500 liter capacity 270000
12. Cost of bore well with pump set 70000
13. Electrification 30000
14. Cost of over head tank & pipe line 70000
15. Cost of chaff cutter 90000
Total 4652500

Recurring cost to be capitalized
1. Cost of feed for first batch of 2 5 buffaloes for one
month as per feed chart
67500
2. Cost of insurance 25 animals @5% of animal cost 68750
3. Cost of fodder cultivation in 10 acres of land for one
session

50000
4. Cost of medicine vaccine, electricity for the first
month for first month
10000
5. Contingency 11250
6. Total recurring expenditure
207500


7. TOTAL PROJECT COST 4860000
8. Margin money (no margin money up to one lakh
finance as per
RBI guideline)
1215000
9. Bank loan 100% of project cost 3645000

Item Particulars Project period
1 2 3 4 5 6
1. Feeding during
lactation period
vide yearly
lactation days
and feed cost as
per chart
945000 109125
0
109125
0
109125
0
990000 109125
0
2. Feeding during
dry period vide
dry days and feed
cost as per feed
chart enclosed
68750 134750 134750 156750 159500 134750
3. Medicine vaccine
veterinary aid
50000 50000 50000 50000 50000 50000
4. Insurance @5%
of animal cost
/year
137500 137500 137500 137500 137500 137500
5. Cost of fodder
cultivation
100000 100000 100000 100000 100000 100000
6. Labour charge 180000 180000 180000 180000 180000 180000
7. Electricity &
other misc.
expenses
60000 60000 60000 60000 60000 60000
8. Total 154125
0
175350
0
175350
0
177550
0
167700
0
175350
0
INCOME
I.

Sale of milk
@Rs.24/liter
during lactation
days with
378000
0
436500
0
436500
0
436500
0
396000
0
436500
0
average milk
yield 15 lit
/buffalo/day
II.

Sale of gunny
bags

III.

Manure will be
utilized in own
farm
14270 16980 16980 17180 15750 16980
IV.

Value of closing
stock of 50
buffaloes
(Depreciation on
animal cost
@10%/year)
110000
0
V.

Value of building
(Depreciation on
building@10%/ye
ar)
325000
VI.

Value of
equipments
(Depreciation on
equipments
@15%/year)
109000
VII.

Total income 379427
0
438198
0
438198
0
438218
0
397575
0
591598
0
VIII. Gross profit 225302
0
262848
0
262848
0
260668
0
229875
0
416248
0
Calculation of BCR and IRR
1 2 3 4 5 6
Capital
Costs
4652500
Recurring
Cost
1541250 1753500 1753500 1775500 1677000 1753500
Total Costs 6193750 1753500 1753500 1775500 1677000 1753500
Benefit 3794270 4381980 4381980 4382180 3975750 5915980
Net Benefit -
2399480
2628480 2628480 2606680 2298750 4162480

PW Costs @ 15% 10471721.91
PW Benefits @ 15% 16533943.58

NPW 6062221.67

B.C. Ratio 1.578:1
I.R.R. (%) >25%
Repayment schedule
Year Loan
Outstanding
Gross
Surplus
Interest Principal Total
Repayment
Surplus
1 3645000 2253020 437400 445000 882400 1370620
2 3200000 2628480 384000 600000 984000 1644480
3 2600000 2628480 312000 700000 1012000 1616480
4 1900000 2628480 228000 800000 1028000 1600480
5 1100000 2298750 132000 600000 732000 1566750
6 500000 4162480 60000 500000 560000 3602480