Dairy Cow Farming Project Report:

The following is all about 10 Dairy Cow Farming Project.

Introduction to crossbred dairy cow farming project
Dairy farming in one of the lucrative and profitable businesses under ideal livestock management
practices. People are showing interest in small-scale dairy farming to set up with the help of bank
loan.
Dairy cow farming project advantages
• Dairy farming useful for milk processing business.
• Dairy and milk products have an excellent throughout the world.
• You no need to advertise products and marketing of milk is very easy. You can sell the milk even at
the farm gate.
• Dairy cow farming eco-friendly does not cause any pollution.
• With good dairy farming business plan and management, dairy cow business results in highest
profits.
• You can use or sell cow dung to other farmers or use in your own field for growing other crops.
• Cow urine and dung have excellent value in the organic farming sector.
• Dairy cow farming provides the opportunity for unemployed labor.
• Dairy cow farming has significant importance in the national economy.
• There are NABARD subsidies and bank loans available for commercial dairy cow project.
Is there anything that I should be aware of before starting a crossbred dairy cow
farming project?
Yes, you must have good knowledge of dairy cows and their management. You can get dairy farming
training from your local animal husbandry. To know about problems and other information, visit local
dairy farms. Prepare good dairy cow farming business plan which includes buying cow breeds to
selling their milk. Buy these cows from certified breeders. Purchase cows with good family history
and milking skills. High quality cows always good for milk production. Finally, invest only what you
can afford to lose.
Popular milk cow breeds in India
• Gir.
• Red Sindhi.
• Sahiwal.
• Tharparkar.
• Deoni.
• Hariana.
• Gaolo.
• Rathi/Rath.
• Kankrej.
The following project report is for 10 crossbred dairy cow farming project with bank
loan repayment. The figures taken in minimum amounts. This is only sample /model
dairy cow project report. The numbers mentioned may vary from region to region
and time to time.
Components of Crossbred Dairy Cow Project
Type of Cows Crossbred
Number of Cows 10
Cost of one Cow which includes transportation and insurance.
30,000
Average milk yield/liters/day/cow. 12
The selling price of milk/liter (in Rupees). 13 (we took the least figure)
Sale of manure/cow/year (in Rupees). 500
Culled value/cow at the end of 5th lactation (in
Rupees).
8,000
Veterinary aid/cow/year. 750
The rate of interest (%). 12
The residual value of shed and equipment to be taken (Yes or No).
No
Repayment years (period). 3
Percentage of net surplus towards repayment. 80
Feeding schedule in crossbred dairy cow farming project
Particulars
Lactation Period Dry Period
Quantity (Kg) Cost (in Rs) Quantity (Kg) Cost (in Rs)
Concentrate Feed (Rs.10 / Kg)
• For milk (1 kg / 3 liter) 4 40 0 0
• For Maintenance plus pregnancy. 1 10 1.5 15
Green Fodder 20 0 20 0
Dry Fodder (Rs.3/Kg) 5 15 5 15
Particulars of Crossbred Cow Farming Project Cost (in Rs)
1. Capital Cost
• Cost of Crossbred Cows including transport cost
& Insurance cost (10 animals of Rs. 30,000 each). 3,00,000
• Housing/Shed for adult cows of 40 sq.ft per cow with Rs. 80/sq.ft. 48,000
• Cost of equipment. 20,000
• Cost of fodder cultivation in 1 acre. 15,000
2. Working capital
• Cost of Feeding one cow for one month. 12,000
Total Rs. 3,95,000
Based on the norms, the funding for crossbred dairy cow farming project unit.
Total Project Cost (from above) Rs. 3,95,000
Margin Money (Individual borrower/company/society)
Rs.75,000
Loan amount from bank Rs. 3,20,000
The lactation chart for the dairy cow farming project is given below. This is based
on 280 lactation days plus 120 dry days which is 400 days of inter-calving
Year First batch Second batch Total
Lactation
days
Dry days
Lactation
days
Dry days
Lactation
days
Dry days
1 1250 575 720 0 1970 575
2 1400 425 1225 600 2625 1025
3 1400 425 1225 600 2625 1025
4 1400 425 1225 600 2625 1025
5 1275 550 1225 600 2500 1150
Profitability projections of 10 crossbred dairy cow farming project
Particulars 1st year 2nd year 3rd year 4th year 5th year
Income:
By sale of cow milk 3,35,400 4,09,500 4,09,500 4,09,500 3,90,000
By sale of cow manure
3,750 5,000 5,000 5,000 5,000
Total 3,39,150 4,14,500 4,14,500 4,14,500 3,95,000
Expenditure:
Concentrated feed 1,01,250 1,41,500 1,41,500 1,41,500 1,36,500
Dry Fodder 40,875 54,750 54,750 54,750 54,750
Veterinary
Expenses
5,625 7,500 7,500 7,500 7,500
Total 1,47,750 2,03,750 2,03,750 2,03,750 1,98,750
Net Income 1,91,400 2,10,750 2,10,750 2,10,750 1,96,250
Financial analysis of 10 crossbred dairy cow farming project report
Particulars I year II year III year IV year V year
Cost:
Capital Cost 3,95,000
Recurring cost 1,47,750 2,03,750 2,03,750 2,03,750 1,98,750
Total Cost 5,42,750 2,03,750 2,03,750 2,03,750 1,98,750
Benefits 3,39,150 4,14,500 4,1,4500 4,14,500 3,95,000
Residual value 80,000
Total Benefit 3,39,150 4,14,500 4,14,500 4,14,500 4,75,000
Net Benefit -2,03,600 2,10,750 2,10,750 2,10,750 2,76,250
Discount factor at 15 %
0.87 0.76 0.66 0.57 0.50
BCR 1.42: 1
NPV 3,78,727
IRR >50% (98.93 %)
Repayment Tenure (period) for 10 crossbred dairy cow farming project
Dairy Farming Loan Repayment.
Year
Loan
Outstanding
Interest rate
(12%)
Net
Profit
Repayment of
Principal
Total
Repayment Net
Surplus
1 3,20,000 38,400 1,91,400 95,580 1,33,980 57,420
2 2,24,420 26,930 2,10,750 1,20,595 1,47,525 63,225
3 1,03,825 12459 2,10,750 1,03,825 1,16,284 94,466
4 0 0 2,10,750 0 0 2,10,750
5 0 0 2,76,250 0 0 2,76,250
Who are eligible for NABARD dairy farming project subsidy scheme?
• Farmers.
• Entrepreneurs (Individual).
• NGOs.
• Companies /firms.
• Groups of the organized sectors such as Dairy Cooperative Societies, milk Federation, and self-help
groups.
How much dairy cow farming project subsidy I get from NABARD?
• Subsidy for dairy farm setup: 25% of the outlay for the general public and 33 .33 % for SC / ST
farmers.
Dairy cow farming project tips:
Cow Farming Tips.
• Start the cow dairy with few animals and increase the herd as you get more experience.
• Before starting, Research about good and high milk yielding cow breeds within your budget limit.
• Buy the animals only from genuine and certified cow breeders.
• Create a cow farming business plan which covers all the financial aspects of your farm.
• Plan well for Feed/Fodder, It is advised to go for homegrown feed as it saves you a lot by
eliminating feed cost.
• Make silage from green fodder crops such as maize, legume crops.
• Strict follow the feeding schedule and increase the feed nutrients for breeding cows and lactation
cows.
• You must prepare a cow breeding plan (artificial insemination is best for breeding).
• Plan for secured and well-ventilated dairy shed/house before getting animals to the farm.
• Ensure all the cows are vaccinated before entering the shed.
• Keep the house always clean and dry.
• Control external parasites along with other diseases.
• Strictly follow veterinary instructions in case of any abnormal behavior of animals.
• Never keep breeding bucks more than required in the shed. Maintain proper male and female ratio.
• You can milk the cows 2 or 3 times a day. During this time, move the cows to a clean location.
Wash and dry your hands and the udder before milking.
• Frequent washing of cows required in commercial cow farming
• Keep all the milking and other equipment to avoid milk contamination.
• For a better price of milk, research local markets.
• You can watch successful stories of dairy farming on YouTube.
Bottom Line of dairy cow farming project
Not only investment, dedication, monitoring, hard work make you a profitable dairy farmer. Cost and
profits in commercial dairy farming depend on many factors such as Cow breed, feed management,
disease control and other dairy management practices.

Dairy Farming Business Plan Guide:

Dairy Farming Business Plan.
Dairy Farming Business Plan – Introduction to Dairy Farming:-
No matter what the season is and no matter what the place is “There is always great demand for
milk” in India. Due to the population increase and consumption of milk tremendously increasing day
by day. The rising unemployment and people who are looking for starting a dairy farm in recent years
is almost doubled. Milk production in India is expected to grow at about 3 to 4% every year. There are
many people who want to get into small scale or large scale dairy farming business. However, due to
lack of knowledge and initial investment involved they are unable to setting up a dairy unit. We
advise you not to get into this dairy business unless you dedicate your effort and time on your farm
round the clock. You are not necessarily start a dairy farm in commercial scale; you can start on
small scale business and expand it to large scale once you are aware of ins and outs of dairy farming.
Before starting a dairy farm, makes sure to follow these:
• Dairy Farming Business Plan #1- However as a beginner you should definitely get some
professional training from Agriculture Universities or Training centers of Animal Husbandry
Department or Krishi Vigyan Kendras or any private training dairy consultancies.
• Dairy Farming Business Plan #2 – Visit local dairy farms and talk to the management so you can
get an idea of managing the farm. Always question them about “problems” and ask how they are
overcoming them.
• Dairy Farming Business Plan #3 – Read any dairy magazines, online dairy blogs and YouTube
videos to get over all idea of farming.
• Dairy Farming Business Plan #4 – If you don’t have capital investment and wants to get subsidy
and loan the dairy farm, visit your local agriculture/co-operative banks for more information.
• Dairy Farming Business Plan #5 – As feed or fodder is the main component of dairy farming that
directly impacts the profits; you must have good knowledge green fodder cultivation practices and
silage making procedure. You can study the feed and fodder market in your region to find out the
feasible and economical fodder solution.
• Dairy Farming Business Plan #6 – Initially, you must visit some cattle markets to observe animals
on sale and talk with persons engaged with purchasing of animals to get an idea of best breed,
animal prices and milk yield of animals. You can also learn some negotiation skills.
• Dairy Farming Business Plan #7 – You should learn good labour management skills.
To encourage rural agriculture sector and increase the milk production as per demand, NABARD
(National
Bank For Agriculture & Rural Development) helping farmers by providing subsidies on dairy farms
and dairy farming loans through approved banks. One can avail this by visiting your nearest
commercial or cooperative or rural agriculture banks. One can get decent profits in dairy farming
under good dairy management practices. In the following write-up, let us talk about “Dairy Farming
Business Plan” in detail.
Let us take an example of 15 dairy cow farming.
Dairy Farming Business Plan – Requirements of Dairy Farming in India:- There are some components
of dairy farming you should be aware before setting up a dairy farm.
• Land – You must have some cultivated land for growing green fodder crops for your cattle in the
farm.
The land area depends on number animals (cows or buffalo’s). Usually 2 acres of land is sufficient to
feed about 15 cows.
• Shed – There must be proper and covered secured shed inn place before getting cows into your
farm.
• Water – Clean and abundant water facility is required for both cattle and to grow the green fodder.
• Fodder – As cows need three types of fodder for best milk yield and high fat content, you must have
good fodder management from growing fodder to feeding fodder on daily basis. Dry fodder, green
fodder and feed concentrate (for extra nutrition) are required to feed the cows in your dairy.
• Breed Selection – Selection of good breed of cows which yield more milk is essential in dairy
farming.
Good milk yielding cows such as “Jersy”, “Red Sindhi” “Holstein Friesian (HF cows)”, “Sahiwal”, “Gir”,
“Deoni” and “Ongole” etc.
HF Cow.
• Labour – Labour is major task in dairy farming, the selected labour should be very good at handling
the farm activities including growing green fodder. It is better to give one or two days training so that
they can understand routine activities of dairy.
• Vaccinations – To control diseases and protect the cow health, you must have a proper vaccination
schedule. For this purpose, you can hire a veterinary doctor for routine checkup and medication of
cows.
For vaccination schedule, see the vaccination schedule table at the bottom of this article.
Dairy Farming Business Plan – Shed Construction:-
Well ventilated and spacious shed is required for dairy farming. Hygienic conditions are very
important in the shed for cattle health. When it comes to space, it is recommended to have 8 feet x
12 feet area for 1 cow. So total space required for 15 cows is about 120 feet x 12 feet. However this
area is not fixed and depends on cow size. Cow feeders should be constructed in between with a
separation wall so that the cows can be fed from both sides facing head to head each other; this is
what is called as “Head to Head arrangement”.
Care should be taken while constructing the dairy shed. The selected location should be elevated to
prevent from any water stagnation around the shed and it also provides well ventilation (sunlight and
air).
The dairy shed roof should be made with asbestos sheets and floor should be made of either bricks or
cement with enough inclination. This can provides good drainage for cattle urine and excrete. Shed
should be cleaned daily to maintain the hygienic conditions. Collect the manure on daily bases and
store somewhere outside of the shed. You can also make an outlet to shed so that whenever the shed
is cleaned the cow urine any leftover manure can flow into the field. All electrical fittings and water
supply requirements should be full filled as per need in hot areas, it many need to have fans and
coolers for cows, especially in summer.
Dairy Farming Business Plan – Fodder Management:- Fodder management is very important in dairy
farming. The daily milk yield of cow depends on the type fodder and nutritional facts of the given
fodder.
High yielding cows should be given 1 kg of concentrate along with mineral mixture to get 2.5 liters of
milk yield. For example, if a cow yields 15 liters of milk daily then these cows should be given 6 kg of
concentrate with mineral mixture.
There are three types of fodder can be provided under dairy fodder management practices.
• Dry fodder: wheat hay, kutti (rice / pady straw), chokar (wheat bran),
• Green fodder: Any leguminous crops which are good in protein supplements. For example: Any
gram crop, barseem, maize / corn, masoor and hybrid grass like CO-3 and CO-4, niper grass etc..
These green fodder crops can be utilized to make silage. This silage is very nutritious and milk yield
will be increased.
Silage making is very important and especially it is needed in dry periods. The link will be given at
the bottom of the article about “steps in involved in silage making or how to make silage for cattle”.
Generally, 2 to 3 acres of fertile land enough to grow green fodders for 15 cows. However, the yield
of green fodder depends on many factors.
• Concentrate and Mineral Mixture: Mineral mixture:- It is necessary to provide concentrate feed
along with mineral mixer on regular basis to prevent cows from mineral deficiency. All three types
such as dry green and mineral mixture should be accurate proportions for best milk yield.
Note: The cost of feed may depend on the animal milk capacity. On an average, feed may cost about
200 to 250 rupees/day/cow.
Dairy Farming Business Plan – Water Supply:- Clean water supply is required for drinking and
cleaning purpose of the shed. Arrangements can be done by providing overhead tanks on the shed.
Dairy Farming Business Plan – Selection of Dairy Breeds:- Successful dairy farming requires a good
breed selection of cow. Select the dairy cow/cattle breed that is suitable for your climatic conditions
and high milking capacity. You can visit your local farms and can observe the different breed types
that are suitable. Cross breed of HF cows (Holstein Frisian) with Indian Sahiwal. Or Jersey with
Sahiwal or Jersey with Red Sindhi is preferable for the good milk yield. It is preferred to select the
breed which produces the milk of 20 to 25 liters/day. Artificial insemination plays major role to cross
with high yielding breeds.
Dairy Farming Business Plan – Cow and Calves
Management and Care:- Artificial insemination or mating of cows should be carried out after every 3
months (90 days) of calving. Indian cattle breeds take 3 years in reaching maturity phase whereas
high yield
Jersey cross breed or HF cows reach maturity at 16 to 18 months and they will be ready for mating. In
general, for every 13 months cows should be calving. Lactation period of cows should be 300 days
and service period should be 90-120 days. Gestation period of cows is going to be 266 days. More
attention and care is needed in case of pregnant cows as they need more nutrition during this stage.
Concentrate & mineral mixture should be given during gestation period of cows and this feed intake
should be increased as time passes to ensure proper growth of calves and its udder.
Dairy Farming Business Plan – Vaccination Program in Dairy Cow Farming:- Before giving any
vaccination in dairy, deworming should be done to get better results. However, deworming should be
carried out frequently and veterinary doctor is your point of contact for this. The following table is the
typical vaccination schedule in dairy farming.
Dairy Farming Business Plan – Vaccination Schedule in Dairy Farming:
Disease Type: Animal Type: Vaccine Type: Dosage: Immunity:
Vaccination
Time:
Hemorrhagic
Septicemia (HS)
Cattle &
Buffalo
HS 5 ml S/C
6 months & 1 year
May to June
Foot & Mouth
Diseases (FMD)
All cloven footed animals
Polyvalent
FMD
3 ml. S/C 1 year Feb and Dec
Black Quarter
(BQ)
Cattle &
Buffalo
BQ 5 ml S/C
6 months & 1 year
May to June
Theileriosis
Cattle &
Calves above
2 months of age
Theileria
3 ml. S/C 1 year –
Anthrax
All species of animals
Anthrax Spore 1 ml. S/C 1 year –
Brucella Female cattle
& buffalo Calf
Brucella 2 ml S/C 1 year – age 4 – 8 months only
Rabies
All species of animals
Rabies Post
Bite
1 ml S/C 1 year
0, 3, 7, 14, 28 & 3 months (90 days).
Dairy Farming Business Plan – Bottom Line:- The above write-up can be assumed for Dairy Farming
Business Plan in Tamil Nadu, Karnataka, Kerala, Telangana, Andhra Pradesh, Gujarat, Rajasthan,
Punjab,
Haryana, West Bengal, Madhya Pradesh, Uttar Pradesh, Bihar, Maharashtra, and other states of India.
However, the labour cost, Cow breeds, feed cost or green fodder production cost and inputs may
slightly vary from region to region. You can expect excellent profits with proper dairy management
practices, perfect planning and dedicating completely to the farm 24/7.

DAIRY FARMING
1. INTRODUCTION
India derives nearly 33% of the gross Domestic population from agriculture and has
66% of economically active population, engaged in agriculture. The share of livestock
product is estimated at 21% of total agriculture sector. The fact that dairying could play a
more constructive role in promoting rural welfare and reducing poverty is increasingly
being recognised. Milk production alone involves more than 70 million producers, each
raising one or two cows/ buffaloes primarily for milk production.
The domesticated water buffalo is one of the gentlest of all farm animals, hence it can be
bread easily. The dairy sector offers a good opportunity to entrepreneurs in
India. India is a land of opportunity for those who are looking for new and expanding
markets. Growth prospects in the dairy sector are very bright.

2. MARKET
Dairy development in India has been acknowledged the world over as one of modern
India’s most successful development programme. India is the second largest milk
producing country with anticipated production of about 78 million tons during 1999-
2000. The production of milk products stood at 3.07 lakh tons in 1999-2000.
Production of milk powder including infant milk food has risen to 2.25 lakh tons in
1999-2000, whereas that of malted food is at 65000 tons. Off late market for milk
products is showing a steady increase.

3. MANUFACTURING
Modern and well established scientific principles, practices and skills should be used to
obtain maximum economic benefits from dairy farming. Some of the major norms and
recommendations are: Care full selection of animals, feeding of animals, milking of
animals.

4. PRODUCTION CAPACITY PER ANNUM

Capacity 280000 Liters per annum
Selling Price Rs 16/Kg

5. PROJECT COST/CAPITAL INVESTMENT

S.No Description Amount Rs.
1 Preliminary & Preoperative Expense 1500
2 Fixed Capital 440000
3 Working Capital for 1 month(s) 20200
Total Project Cost 461700

6. MEANS OF FINANCE
S.No Description %age Amount Rs.
1 Promoter Contribution 15% 69255
2 Subsidy /Soft Loan 20% 92340
3 Term Loan 65% 300105
Total 461700

7. FINANCIAL ASPECTS
A. FIXED CAPITAL
i. Land and Buildings Rented 1500 per month
ii. Machinery and Equipment
S.No Description Qty. Rate Amount Rs.
1 Buffaloes Nos 20 20000 400000
2 Shed 1 20000 20000
3 Milk testing machine Lum 1 20000 20000
Total 440000

B. WORKING CAPITAL
i. Salaries & Wages (per month)
S.No Description Nos. Sal/mon. Amount Rs.
1 Supervisor/Entrepreneur 1 2500 2500
2 Skilled 1 2000 2000
3 Unskilled 2 1200 2400
Total 6900
ii. Raw Material (per month)
S.No Description Unit Qty. Rate Amount Rs.
1 Feed Kgs 2200 4 8800
Total 8800
iii. Utilities (per month)
S.No Description Unit Amount Rs.
1 Power LS 500
2 Water LS 500
Total 1000
iv. Other Expenses (per month)
S.No Description Amount Rs.
1 Postage & Stationery Expenses 500
2 Transportation Expenses 1000
3 Miscellaneous Expenses 500
Total 2000
v. Total Working Capital (per month)
S.No Description Amount Rs.
1 Rent 1500
2 Salaries and Wages 6900
3 Raw Material 8800
4 Utilities 1000
5 Other Expenses 2000
Total 20200

8. COST OF PRODUCTION (PER ANNUM)

S.No Description Amount Rs.
1 Total Working Capital 242400
2 Depreciation @ 15% 66000
3 Interest @ 12% 36013
Total 344413

9. TURNOVER (PER YEAR)

S.No Description Unit Qty. Rate Rs. Amount Rs.
1 Ltrs per annum28000 16 448000
Total 448000

10. FIXED COST (PER YEAR)

S.No Description Amount Rs.
1 Depreciation 66000
2 Interest 36013
3 Rent 18000
4 Salaries & Wages @ 40% 33120
5 Other Expenses incl. Utilities @ 40% 14400
Total 167533

11. PROFIT ANALYSIS & RATIOS

1 Net Profit Rs. 103587
2 Percentage of Profit on Sales 23%
3 Percentage of Return on Investment 22%
4 Break Even Point 62