PROJECT REPORT FOR 75 CROSSBRED COWS UNIT

PREPARED BY:

OVERVIEW:
1 Name of the Farmer
2 Name of the Village
3 Name of the Mandal
4 Name of the District
5 Age of the Farmer
6 Socio-Economic status of the Farmer
7 Number of the Cows proposed 75
8 Number of batches proposed 2
9 Number of cows in Batch I 40
10 Number of cows in Batch II 35
11 Breed proposed Jersey
12 Total Project Cost (Rs.) 11673000
13 Margin Money (Rs.) 2918250
14 Bank Loan (Rs.) 8754750
15 Repayment Period (Years) 5
16 Rate of Interest (%) 12.00%
17 Name of the Financing Bank
18 Name of the sponsored scheme
19 Rate of Subsidy (%) 0.00%
20 Subsidy ceiling if any (Rs.) 0
21 Type of green fodder Super Napier

Dr.J.Sreekanth, 9441184152, sreekmails52@gmail.com

 Techno-Economic Parameters:
1 Cost of each Crossbred cow (Rs.) 50000

2 Lactation days per cow (Days) 300

3 Dry days per cow (Days) 60

4 Average milk production per cow per day (Lit.) 16

5 Average Intercalving Period (months) 14

6 Sale price per liter of milk (Rs.) 26

7 Quantity of milk fed to calf per day (lit.) 1.25

8 Cost of concentrate feed (Rs/Kg) 18

9 Quantity of concentrate feed per cow for maintenance 3

10 Quantity of concentrate feed per cow per liter of milk 0.4

11 Quantity of concentrate feed per pregnant cow per day 1

12 Quantity of green fodder per cow per day (Kg/day) 25

13 Quantity of Dry fodder per cow per day (Kg/day) 5

14 Cost of fodder cultivation (Rs/Acre/Year) 20000

15 Cost of dry fodder (Rs/ton) 7600

16 Area required for fodder cultivation (acres) 15

17 Quantity of TMR to be fed per cow as maintenance (Kg) 4

18 Quantity of TMR to be fed per cow per liter of milk (Kg) 0.5

19 Cost of TMR (Rs./Kg) 0

20 Sale price of each gunny bag (Rs) 8

21 Quantity of feed supplement per cow per lactation (lit) 30

22 Cost of feed supplement (Rs/lit) 80

23 Cost of minor equipment (Rs/Cow) 500

24 Cost of Chaff cutter (Rs) 50000

25 Cost of Milking Machine (Rs) 50000

26 Sale price of male calf at 4 months age (Rs) 5000

27 Sale price of female calf at 4 months age (Rs) 8000

28 Number of labor required 8

29 Cost of wages paid per labor per month (Rs) 6000

30 Sale price of manure (Rs/ton) 800

Dr.J.Sreekanth, 9441184152, sreekmails52@gmail.com

31 Floor space required per adult cow (sft) 42

32 Floor space required per calf (sft) 20

33 Open area required per adult cow (sft) 84

34 Open area required per calf (sft) 40

35 Cost of construction (Rs/sft) 350

36 Cost of Veterinary aid per cow per Year (Rs) 1500

37 Cost of water and electricity per cow per year (Rs) 1000

38 Miscellaneous expenditure per cow per year (Rs) 500

39 Annual rate of milk yield improvement (%) 3.00%

40 Mortality rate in calves (%) 10.00%

41 Mortality rate in cows (%) 10.00%

42 Insurance rate (%) 5.00%

43 Probability of female calf birth (%) 50.00%

44 Annual pregnancy rate (%) 75.00%

45 Culling rate per year (%) 20.00%

46 Milk:Dry animal ratio 4:01

47 Sale price of each Gunny bag (Rs) 8

48 Unit packing of concentrate feed/TMR (Kg) 50

49 Quantity of manure per cow per day (Kg) on DMB 10

50 Depreciation on civil structures (%) 10.00%

51 Depreciation on equipment (%) 15.00%

52 Depreciation on Animals (%) 10.00%

* All the values are as per the standards prescribed by the

National Dairy Research Institute (NDRI) - Karnal. The values
are dynamic and subject to fluctuation and vary from area,
market rate, season, breed and various other factors. The values
used are for the purpose to arrive at the realistic calculation to
check and assess the feasibility of the project.

Dr.J.Sreekanth, 9441184152, sreekmails52@gmail.com

 Non-Recurring Expenditure:

Activity Unit cost Units Total

1 Cost of Crossbred Cows 50000 75 3750000

2 Cost of Insurance 5.00% 3750000 187500

3 Cost of construction of shelter to Cows 350 3150 1102500

4 Cost of construction of shelter to calves 350 1500 525000

5 Cost of minor equipment 500 75 37500

6 Cost of chaff cutter 50000 3 150000

7 Cost of Milking machine 50000 3 150000

Total Non-Recurring Expenditure 5902500

Recurring Expenditure:

Activity Unit cost Units Total

1 Cost of fodder cultivation 20000 15 300000

2 Cost of concentrate feed 18 191625 3449250

3 Cost of dry fodder 7600 136.875 1040250

4 Cost of TMR 0 123187.5 0

5 Cost of feed supplements 2250 80 180000

6 Cost of Veterinary aid 1500 75 112500

7 Water and Electricity charges 1000 75 75000

8 Miscellaneous expenditure 500 75 37500

9 Labor charges 6000 8 576000

Total Recurring Expenditure 5770500

Total Expenditure for one Year 11673000

Dr.J.Sreekanth, 9441184152, sreekmails52@gmail.com

 Flock Projection:
Category I Year II Year III Year IV Year V Year VI Year VII Year VIII Yea IX Year X Year

Opening stock of Cows 40 75 75 75 75 75 75 75 75 75

Opening stock of calves 40 30 36 42 41 44 42 45 42 45

Cows purchased during the year 35 15 0 15 0 15 0 15 0 15

Calves purchased during the year 35 0 0 0 0 0 0 0 0 0

Calves produced during the year 0 61 51 61 51 61 51 61 51 61

Mortality of Cows 8 9 8 9 8 9 8 9 8 9

Replacement from Insurance 8 9 8 9 8 9 8 9 8 9

Culled cows 0 15 15 15 15 15 15 15 15 15

Replacement stock 0 0 15 0 15 0 15 0 15 0

Mortality of calves 8 9 9 10 9 10 9 11 9 11

Sale of calves 38 45 36 52 38 52 39 53 39 53

Closing stock of calves 30 36 42 41 44 42 45 42 45 42

Closing stock of cows 75 75 75 75 75 75 75 75 75 75

Total herd maintained 150 120 111 132 116 134 117 135 117 135

Dr.J.Sreekanth, 9441184152, sreekmails52@gmail.com

 Lactation Chart:
I Year II Year III Year IV Year V Year VI Year VII Year VIII Year
BATCH

Milk Dry Milk Dry Milk Dry Milk Milk Milk Milk Milk Dry
Days Days Days Days Days Days Days Dry Days Days Dry Days Days Dry Days Days Dry Days Days Days

I 11680 2920 11680 2920 11680 2920 11680 2920 11680 2920 11680 2920 11680 2920 11680 2920

II 5124 0 10220 2555 10220 2555 10220 2555 10220 2555 10220 2555 10220 2555 10220 2555
Second batch animals are purchased after an interval of 6 months.

Total 16804 2920 21900 5475 21900 5475 21900 5475 21900 5475 21900 5475 21900 5475 21900 5475

Feeding Economics: I II III IV V VI VII VIII

1 Cost of green fodder (Rs) 300000 315000 330000 345000 360000 375000 390000 405000
2 Cost of dry fodder (Rs) 1040250 1092263 1144275 1196288 1248300 1300313 1352325 1404338
3 Cost of concentrate during milch period (Rs) 2117304 2897370 3035340 3173310 3311280 3449250 3587220 3725190
4 Cost of concentrate during dry period (Rs) 157680 310433 325215 339998 354780 369563 384345 399128
5 Cost of TMR during milch period (Rs) 0 0 0 0 0 0 0 0
6 Cost of TMR during dry period (Rs) 0 0 0 0 0 0 0 0
7 Cost of Feed Supplements (Rs) 180000 189000 198000 207000 216000 225000 234000 243000
Total Feeding cost per year (Rs) 3795234 4804065 5032830 5261595 5490360 5719125 5947890 6176655

Quantity of Concentrate feed (Kgs) 126388 178211 186698 195184 203670 212156 220643 229129
0 0 0 0 0 0 0
Quantity of TMR (Kgs) 0

Dr.J.Sreekanth, 9441184152, sreekmails52@gmail.com

 Income: I II III IV V VI VII VIII
1 Sale of milk (Rs) 6990464 9775633.9 10314709 10786401 11256072 11725682 12195290 12664899
2 Sale of Gunny bags from feed (Rs) 20222 29939 32859 35914 39105 42431 45894 49492
3 Sale of manure (Rs) 219000 229950 240900 251850 262800 273750 284700 295650
4 Sale of calves (Rs) 187500 238219 197794 296182.5 230499 328072.5 252259 355378
Total Income (Rs) 7417186 10273742 10786262 11370348 11788476 12369936 12778144 13365419

Expenditure: I II III IV V VI VII VIII

1 Total feeding cost (Rs) 3795234 4804065 5032830 5261595 5490360 5719125 5947890 6176655
2 Cost of labor (Rs) 576000 604800 633600 662400 691200 720000 748800 777600
3 Cost of Veterinary aid (Rs) 112500 118125 123750 129375 135000 140625 146250 151875
4 Water and Electricity charges (Rs) 75000 78750 82500 86250 90000 93750 97500 101250
5 Miscellaneous charges (Rs) 37500 39375 41250 43125 45000 46875 48750 50625
6 Depreciation on Civil structures (Rs) @10% 162750 146475 130200 113925 97650 81375 65100 48825
7 Depreciation on Animals (Rs) @10% 375000 337500 300000 262500 225000 187500 150000 112500
8 Depreciation equipment (Rs) @15% 50625 43031 35437.5 27844 20250 12656 5062.5 0
Total Expenditure (Rs) 5184609 6172121 6379568 6587014 6794460 7001906 7209353 7419330

Gross Profit (Rs) 2232577 4101621 4406694 4783334 4994016 5368030 5568791 5946089
Gross Profit per month (Rs) 186048 341802 367225 398611 416168 447336 464066 495507
Gross Profit per cow (Rs) 2481 4557 4896 5315 5549 5964 6188 6607

Dr.J.Sreekanth, 9441184152, sreekmails52@gmail.com

 Repayment Schedule:

Gross Profit Principal Interest Installment Nett.

Year
(Rs) (Rs) (Rs) (Rs) Income (Rs)

I 2232577 1750950 1050570 2801520 ₹ -568,943

II 4101621 1750950 840456 2591406 ₹ 1,510,215
III 4406694 1750950 630342 2381292 ₹ 2,025,402
IV 4783334 1750950 420228 2171178 ₹ 2,612,156
V 4994016 1750950 210114 1961064 ₹ 3,032,952
VI 5368030 0 0 0 ₹ 5,368,030
VII 5568791 0 0 0 ₹ 5,568,791
VIII 5946089 0 0 0 ₹ 5,946,089

NPV & IRR:

Present
Year Cash Flow
Value Discount Factor 5%
0 -11673000 -11673000
1 ₹ -568,943 -541850
2 ₹ 1,510,215 1369809
3 ₹ 2,025,402 1749618
4 ₹ 2,612,156 2149027
5 ₹ 3,032,952 2376397
6 ₹ 5,368,030 4005706
7 ₹ 5,568,791 3957636
8 ₹ 5,946,089 4024547

NPV 7417891 7417891

IRR 14%

CERTIFICATE
The prices mentioned in this report are as per the prevailing market prices of the
1
Respective items.
The project is technically feasible and economically viable under proper care and
2
Management by the entrepreneur.

Dr.J.Sreekanth, 9441184152, sreekmails52@gmail.com