Project report

Crossbred cow dairy project Indigenous cow dairy farm

India is the world's major producer of milk, contributing about 19% of the world's aggregate
milk production. India's milk output surpasses that of all the European Union countries
combined. India produceed (+/-)200.35 million tones milk per year(govt.data).
Dairy farm is a profitable business project in india. It provides an excellent opprtunity for
youth for self-employment mostly.
Day by day the demand for milk and milk products in increasing rapidly. There is an
immense scope of dairy farming in India. About the problem of inncrasing cost of cow
feed ingredients can be control by undertaking fodder caltivation.
There is a good side for dairy fram project. Spectialy for dairy fram the governmenr subsidy
(variable per state wise) are available and bank loan also.
Animal resources development department is the facilator department for above scheme.
Before starting a dairy farm the enterpreneurs/farmers are undergo training on dairy base
farming.
The project report is base on the following assumption:
(1). Freshly calved indigenous dairy breed /crossbred cows like jersey/ HF in 1st or 2nd
lactation will be purchased in two batches of 50 cow with minimum average milk yield
15 liter per day interval of 5 to 6 months for dairy project.
(2). Availability of land and also we will get amount of 1st irrigated land prerequisite for the
Project.
(3). Fodder caltivetion considerred in estimated land / specific amount of land, two crops
considered per year.
(4). Cow dung produced will be utilized as manure for fodder cultivation and also added that,
it has got possibility for other production through it.
(5). cost of rearing calves not considered as it will be nullified by their sale value.
(6). In case of death issue for cow, new cow will be purchased from insurance claim money.
(7). The scheme is workable on the above guidelines if run by dairy farmer(*we have at work)
on scientific lines.
Housing for cows:
Floor- Pucca, smoth strong concrete cemented, improvious to moisture, and have 1 in 60
towards gutter. Plinth shoulkd be 2ft higher than ground.
walls-
About 3ft height length wise brick wall on sides. End wall should be solid made of brick.
Roof-
About 15ft minimum height at the center and 8ft hugh on the side wall. There should be
hang over 3ft beyond wall to prevent rain water from entering cow shade. Roof should be of
asbestos , cement asbestos of tile. Thatched roof can replace asbestos in low cost in low cost
housing.
TAIL TO TAIL SYSTEM OF HOUSING:
ITEMS LENGTH IN METER
MANGER 0.6M
STANDING PLACE 1.5M
GUTTER 0.4M
FEEDING PASSAGE 1.2M ON BOTH SIDE
MILKING PLACE 1.2M

Techno- economic parameters(dairy_project 50 cows):

sl no Parameters Value
1 Breed HF/CB JERSEY
2 Lactation period after(L.P)after calving 280 days
3 The dry period after lavtation 85 days
4 Phasing between tow batches 180 days
5 Average milk yield/cow/day 15 litter
6 Average cost/cow including transportation Rs. 55000/-
7 Construction cost for cattle shed/sq.ft Rs. 300/-
8 Construction cost for office building & stor/sq.ft Rs. 500/-
9 Depreciation on buildings 10%/year
10 Depreciation on equipments 15%/year
11 Average cost/liter of milk Rs.32/-
12 Animals to be purchased in a 1st batch 25
13 Animals to be purchased in a 2nd batch 25
14 Floor space requirment/cow 60 sq.ft
15 Floor space requirment/calf 20 sq.ft
16 cost of milk can 2000/can
17 Milking Equipment 4 cluster can Rs. 70000/-
18 Cost of generator 7.5 KVA Rs. 100000/-
19 Cost of madicine vaccine/cow/year Rs. 1500/cow
20 Cost of Insurance with PDT cover/cow/year 5% of the animal cost
21 No of labourer 4
22 Manager 1
23 Salary of labour Rs. 72000/year
24 Salary of manager Rs. 120000/year
25 Cost of electricity, water/animal /year Rs. 1500/-
26 Margin money 25% of project cost
27 Repayment Period 6 years
28 Grace Period 6 months
29 Farmyard manure shall be used for fertilizing the fodder plots
Feeding cost of calves has not been calculated in this dairy project
30 50 cows, as it will be recovered from the sale of male calves &
Heifers will be retained on the farm as replacement stock.
Lactation Chart/Dry chart 50 cow dairy farm
Sr.No Particulars Years
1 2 3 4 5 6
1) Lactation Days
(a) First Batch 6875 7375 7500 7500 7375 6875
(b) Second Batch 4500 6875 6875 6875 6875 6875
Total 11375 14250 14375 14375 14250 13750
2) Dry Days
(a) First Batch 2250 1750 1625 1625 1750 2250
(b) Second Batch 0 2250 2250 2250 2250 2250
Total 2250 4000 3875 3875 4000 4500

Feed chart 50 cows unit:

During lactation period
Item FEEDING STUFF Cost/kg(Rs)
Quantity(kg) Cost (RS) Cost (Rs)
1 Concentrate Feed 20 7.5 150 30
2 Green fodder H. grown 40 H. grown H. grown
3 Dry Fodder 5 5 25 30
_ Total _ 52.5 175 60

Economics cost of dairy farming with 50 HF/CB JERSEY (project)

sl.no Project cost and Bank loan Cost.In Rs.
1 Capital cost
2 Cow shed for 50 cows 60sqft/cow@Rs300/sq.ft 900000
3 Calf pen for 50 calves 20sqft/calf@Rs300/sq.ft 300000
4 One room 10''*12'' for keeping implements &feed@Rs500/sq.ft 60000
5 office room of 10''*10''@Rs.500/sq.ft 50000
6 Room for buck cooling unit 10''*10''@rs. 500/sq.ft 50000
7 Electric connection & installation to the farm 60000
8 Borewell with a pump 3 HP 100000
9 Cost of 1 Fodder Chaff Cutter with Motor@600-800 kg/hr 55000
10 Cost of milking machine with four can cluster 150000
11 Mist cooling System 35000
12 Milk cans 40 liter 25 Nos 50000
13 Bulk milk cooler 500 liter capacity 150000
14 Cost of 1 refrigerator for storage of medicines, vaccines 20000
15 Cost of generator 7.5 KVA 100000
16 Cost of 50 HF cows with minium average 15 liter milk yield/day
2750000
including transportation and insurance@Rs.5500/cow
 Total 4830000

The recurring cost to be capitalized

1, Cost of feed for the first batch of 25 cows for one month 131250
as per feed chart
2, Cost of insurance with cover for the first batch included 68750
with the animal cost
3, Cost of fodder cultivation in 10 acres of land for one season 60000
4, salary of four labourer for one month 28000
5, Cost of medicine vaccine, electricity for the first month 32000
for the first batch of 25 cows & Misc expenditure for one
month and contingency
Total recurring expenditure 320000
Total Project cost 5150000
Marging Money @25% of the project cost 1287500
Bank Loan@75% of Project cost 3862500
Particulars Project period (Years)
CASH FLOW 1 2 3 4 5 6
ANALYSIS
Feeding during 1990625 2493750 2515625 2515625 2493750 2406250
lactation period
vide yearly
lactation days and
feed cost as per
chart
Feding during dry 135000 240000 232500 232500 240000 270000
period vide dry days
and feed cost as per
feed chart enclosed
Medicine vaccine 50000 50000 50000 50000 50000 50000
veterinary aid
Cost of Electricity 75000 75000 75000 75000 75000 75000
and miscellaneous
expenditure
Insurance @5% of 137500 137500 137500 137500 137500 137500
animal cost/year
cost of fodder 120000 120000 120000 120000 120000 120000
cultivation for two
session
salary of four labours 284000 284000 284000 284000 284000 284000
salary of manager 144000 144000 144000 144000 144000 144000
Total 2936125 3544250 3558625 3558625 3544250 3486750
INCOME:
Sale of milk Rs.32/ltr 5460000 6840000 6900000 6900000 6840000 6600000
during lactation days
with average milk
15 ltr yield cow/day
Manuare will be 0
utilized in own farm
Value of closing stock 1000000
of 50 cows with
20000/animal
average Cost of 544000
Value of building
(Depreciation on
building@10%/year)
Value of 49000
equipments(Depre
ciation on
equipments@
15%/year)
Total income 5460000 6840000 6900000 6900000 6840000 8193000
Gross Profit 2936125 3544250 3558625 3558625 3544250 3486750

Calculation of BCR & IRR

Years 1 2 3 4 5 6
Capital Costs 4830000
Recurring cost 2936125 3544250 3558625 3558625 3544250 3486750
Total Costs 7766125 3544250 3558625 3558625 3544250 3486750
Benefit 5460000 6840000 6900000 6900000 6840000 8193000
Net Benefit -2306125 3295750 3341375 3341375 3295750 4706250

sl.no Finalcial EstimatedPrefered

Idicator Value Value
1 Net present 8267397 should be
worth(NPW) +ve
@15% DF 128%
2 Benefit cost 1.48:1 >1
 Ratio (BCR)
3 Internal Rate 27.57 >15%
of return (IRR)
4 Debt service 3.579 >1.5
Coverage ratio
(DSCR)

Loan repayment schedule for 50 cows dairy farm project

Bank Loan=3862500, grace period=6 month interest rate=12%, Bank
loan at the end of grace period=3862500+231750=4094250

sl.no Monthly Interest Principal Balance

Installment
0 4094251
1 80043 40942.51 39100.49 4055150.51
2 80043 40551.5051 39491.4949 4015659.015
3 80043 40156.5902 39886.40985 3975772.605
4 80043 39757.7261 40285.27395 3935487.331
5 80043 39354.8733 40688.12669 3894799.205
6 80043 38947.992 41095.00795 3853704.197
7 80043 38537.042 41505.95803 3812198.239
8 80043 38121.9824 41921.01761 3770277.221
9 80043 37702.7722 42340.22779 3727936.993
10 80043 37279.3699 42763.63007 3685173.363
11 80043 36851.7336 43191.26637 3641982.097
12 80043 36419.821 43623.17903 3598358.918
13 80043 35983.5892 44059.41082 3554299.507
14 80043 35542.9951 44500.00493 3509799.502
15 80043 35097.995 44945.00498 3464854.497
16 80043 34648.545 45394.45503 3419460.042
17 80043 34194.6004 45848.39958 3373611.642
18 80043 33736.1164 46306.88358 3327304.759
19 80043 33273.0476 46769.95241 3280534.806
20 80043 32805.3481 47237.65194 3233297.154
21 80043 32332.9715 47710.02846 3185587.126
22 80043 31855.8713 48187.12874 3137399.997
23 80043 31374 48669.00003 3088730.997
24 80043 30887.31 49155.69003 3039575.307
25 80043 30395.7531 49647.24693 2989928.06
26 80043 29899.2806 50143.7194 2939784.341
27 80043 29397.8434 50645.15659 2889139.184
28 80043 28891.3918 51151.60816 2837987.576
29 80043 28379.8758 51663.12424 2786324.452
30 80043 27863.2445 52179.75548 2734144.696
31 80043 27341.447 52701.55304 2681443.143
32 80043 26814.4314 53228.56857 2628214.575
33 80043 26282.1457 53760.85425 2574453.721
34 80043 25744.5372 54298.46279 2520155.258
35 80043 25201.5526 54841.44742 2465313.81
36 80043 24653.1381 55389.8619 2409923.948
37 80043 24099.2395 55943.76052 2353980.188
38 80043 23539.8019 56503.19812 2297476.99
39 80043 22974.7699 57068.2301 2240408.76
40 80043 22404.0876 57638.9124 2182769.847
41 80043 21827.6985 58215.30153 2124554.546
42 80043 21245.5455 58797.45454 2065757.091
43 80043 20657.5709 59385.42909 2006371.662
44 80043 20063.7166 59979.28338 1946392.379
45 80043 19463.9238 60579.07621 1885813.303
46 80043 18858.133 61184.86697 1824628.436
47 80043 18246.2844 61796.71564 1762831.72
48 80043 17628.3172 62414.6828 1700417.037
49 80043 17004.1704 63038.82963 1637378.208
50 80043 16373.7821 63669.21792 1573708.99
51 80043 15737.0899 64305.9101 1509403.08
52 80043 15094.0308 64948.9692 1444454.11
53 80043 14444.5411 65598.4589 1378855.651
54 80043 13788.5565 66254.44349 1312601.208
55 80043 13126.0121 66916.98792 1245684.22
56 80043 12456.8422 67586.1578 1178098.062
57 80043 11780.9806 68262.01938 1109836.043
58 80043 11098.3604 68944.63957 1040891.403
59 80043 10408.914 69634.08597 971257.3173
60 80043 9712.57317 70330.42683 900926.8905
61 80043 9009.2689 71033.7311 829893.1594
62 80043 8298.93159 71744.06841 758149.091
63 80043 7581.49091 72461.50909 685687.5819
64 80043 6856.87582 73186.12418 612501.4577
65 80043 6125.01458 73917.98542 538583.4723
66 80043 5385.83472 74657.16528 463926.307
67 80043 4639.26307 75403.73693 388522.5701
68 80043 3885.2257 76157.7743 312364.7958
69 80043 3123.64796 76919.35204 235445.4437
70 80043 2354.45444 77688.54556 157756.8982
71 80043 1577.56898 78465.43102 79291.46715
72 80043 792.914672 79250.08533 41.3818222
 787500
1575000
2362500

#DIV/0! 40.62 50.89 51.33 51.33 50.89 49.1 50.44

#DIV/0! 26.47 47 45.58 45.58 47 52.94 48.506667

Project report
Crossbred cow dairy project Indigenous cow dairy farm
India is the world's major producer of milk, contributing about 19% of the world's aggregate
milk production. India's milk output surpasses that of all the European Union countries
combined. India produceed (+/-)200.35 million tones milk per year(govt.data).
Dairy farm is a profitable business project in india. It provides an excellent opprtunity for
youth for self-employment mostly.
Day by day the demand for milk and milk products in increasing rapidly. There is an
immense scope of dairy farming in India. About the problem of inncrasing cost of cow
feed ingredients can be control by undertaking fodder caltivation.
There is a good side for dairy fram project. Spectialy for dairy fram the governmenr subsidy
(variable per state wise) are available and bank loan also.
Animal resources development department is the facilator department for above scheme.
Before starting a dairy farm the enterpreneurs/farmers are undergo training on dairy base
farming.
The project report is base on the following assumption:
(1). Freshly calved indigenous dairy breed /crossbred cows like jersey/ HF in 1st or 2nd
lactation will be purchased in two batches of 40 cow with minimum average milk yield
15 liter per day interval of 5 to 6 months for dairy project.
(2). Availability of land and also we will get amount of 1st irrigated land prerequisite for the
Project.
(3). Fodder caltivetion considerred in estimated land / specific amount of land, two crops
considered per year.
(4). Cow dung produced will be utilized as manure for fodder cultivation and also added that,
it has got possibility for other production through it.
(5). cost of rearing calves not considered as it will be nullified by their sale value.
(6). In case of death issue for cow, new cow will be purchased from insurance claim money.
(7). The scheme is workable on the above guidelines if run by dairy farmer(*we have at work)
on scientific lines.
Housing for cows:
Floor- Pucca, smoth strong concrete cemented, improvious to moisture, and have 1 in 60
towards gutter. Plinth shoulkd be 2ft higher than ground.
walls-
About 3ft height length wise brick wall on sides. End wall should be solid made of brick.
Roof-
About 15ft minimum height at the center and 8ft hugh on the side wall. There should be
hang over 3ft beyond wall to prevent rain water from entering cow shade. Roof should be of
asbestos , cement asbestos of tile. Thatched roof can replace asbestos in low cost in low cost
housing.
TAIL TO TAIL SYSTEM OF HOUSING:
ITEMS LENGTH IN METER
MANGER 0.6M
STANDING PLACE 1.5M
GUTTER 0.4M
FEEDING PASSAGE 1.2M ON BOTH SIDE
MILKING PLACE 1.2M

Techno- economic parameters(dairy_project 40 cows):

sl no Parameters Value
1 Breed HF/CB JERSEY
2 Lactation period after(L.P)after calving 280 days
3 The dry period after lavtation 85 days
4 Phasing between tow batches 180 days
5 Average milk yield/cow/day 10 litter
6 Average cost/cow including transportation Rs. 70000/-
7 Construction cost for cattle shed/sq.ft Rs. 300/-
8 Construction cost for office building & stor/sq.ft Rs. 500/-
9 Depreciation on buildings 10%/year
10 Depreciation on equipments 15%/year
11 Average cost/liter of milk Rs.50/-
12 Animals to be purchased in a 1st batch 20
13 Animals to be purchased in a 2nd batch 20
14 Floor space requirment/cow 60 sq.ft
15 Floor space requirment/calf 20 sq.ft
16 cost of milk can 2000/can
17 Milking Equipment 4 cluster can Rs. 70000/-
18 Cost of generator 7.5 KVA Rs. 100000/-
19 Cost of madicine vaccine/cow/year Rs. 1500/cow
20 Cost of Insurance with PDT cover/cow/year 5% /animal cost
21 No of labourer 4
22 Manager 1
23 Salary of labour Rs. 72000/year
24 Salary of manager Rs. 120000/year
25 Cost of electricity, water/animal /year Rs. 1500/-
26 Margin money 10% of project cost
27 Repayment Period 25 years
28 Grace Period 6 months
29 Farmyard manure shall be used for fertilizing the fodder plots
30 Feeding cost of calves has not been calculated in this dairy project
40 cows, as it will be recovered from the sale of male calves &
Heifers will be retained on the farm as replacement stock.
 *we have calculated all of data 6 years period of time for this project refer by 25 years project.

Lactation Chart/Dry chart 40 cow dairy farm

Sr.No Particulars Years
1 2 3 4 5 6
1) Lactation Days
(a) First Batch 6875 7375 7500 7500 7375 6875
(b) Second Batch 4500 6875 6875 6875 6875 6875
Total 11375 14250 14375 14375 14250 13750
2) Dry Days
(a) First Batch 2250 1750 1625 1625 1750 2250
(b) Second Batch 0 2250 2250 2250 2250 2250
Total 2250 4000 3875 3875 4000 4500

Feed chart 40 cows unit:

Item FEEDING STUFF Cost/kg(Rs) During lactation period Dry Period
Quantity(kg) Cost (RS) Quantity(kg Cost (Rs)
1 Concentrate Feed 20 7.5 150 1.5 30
2 Green fodder H. grown 40 0 0 0
3 Dry Fodder 5 5 25 6 30
_ Total _ 52.5 175 7.5 60

Economics cost of dairy farming with 40 HF/CB JERSEY (project)

sl.no Project cost and Bank loan Cost.In Rs.
1 Capital cost
2 Cow shed for 40 cows 60sqft/cow@Rs300/sq.ft 900000
3 Calf pen for 40 calves 20sqft/calf@Rs300/sq.ft 300000
4 One room 10''*12'' for keeping implements &feed@Rs500/sq.ft 60000
5 office room of 10''*10''@Rs.500/sq.ft 50000
6 Room for buck cooling unit 10''*10''@rs. 500/sq.ft 50000
7 Electric connection & installation to the farm 60000
8 Borewell with a pump 3 HP 100000
9 Cost of 1 Fodder Chaff Cutter with Motor@600-800 kg/hr 55000
10 Cost of milking machine with four can cluster 150000
11 Mist cooling System 35000
12 Milk cans 40 liter 25 Nos 50000
13 Bulk milk cooler 500 liter capacity 150000
14 Cost of 1 refrigerator for storage of medicines, vaccines 20000
15 Cost of generator 7.5 KVA 100000
16 Cost of 40 HF cows with minium average 10 liter milk yield/day 2750000
including transportation and insurance@Rs.5500/cow
 Total 4830000

The recurring cost to be capitalized

1, Cost of feed for the first batch of 20 cows for one month 109500
as per feed chart
2, Cost of insurance with cover for the first batch included 70000
with the animal cost
3, Cost of fodder cultivation in 10 acres of land for one season 60000
4, salary of four labourer for one month 28000
5, Cost of medicine vaccine, electricity for the first month 32000
for the first batch of 25 cows & Misc expenditure for one
month and contingency
Total recurring expenditure 320000
Total Project cost 5129500
Marging Money @20% of the project cost 1025900
Bank Loan@80% of Project cost 4103600
Particulars Project period (Years)
CASH FLOW 1 2 3 4 5 6
ANALYSIS
Feeding during 1990625 2493750 2515625 2515625 2493750 2406250
lactation period
vide yearly
lactation days and
feed cost as per
chart
Feding during dry 134997 240000 232500 232500 240000 270000
period vide dry days
and feed cost as per
feed chart enclosed
Medicine vaccine 50000 50000 50000 50000 50000 50000
veterinary aid
Cost of Electricity 75000 75000 75000 75000 75000 75000
and miscellaneous
expenditure
Insurance @5% of 137500 137500 137500 137500 137500 137500
animal cost/year
cost of fodder 120000 120000 120000 120000 120000 120000
cultivation for two
session
salary of four labours 284000 284000 284000 284000 284000 284000
salary of manager 144000 144000 144000 144000 144000 144000
Total 2936122 3544250 3558625 3558625 3544250 3486750
INCOME:
Sale of milk Rs.50/ltr 5460000 6840000 6900000 6900000 6840000 6600000
during lactation days
with average milk
10 ltr yield cow/day
Manuare will be 0
utilized in own farm
Value of closing stock 1000000
of 40 cows with
25000/animal
average Cost of 544000
Value of building
(Depreciation on
building@10%/year)
Value of 49000
equipments(Depre
ciation on
equipments@
15%/year)
Total income 5460000 6840000 6900000 6900000 6840000 8193000
Gross Profit 2936122 3544250 3558625 3558625 3544250 3486750

Calculation of BCR & IRR

Years 1 2 3 4 5 6
Capital Costs 4830000 0 0 0 0 0
Recurring cost 2936122 3544250 3558625 3558625 3544250 3486750
Total Costs 7766122 3544250 3558625 3558625 3544250 3486750
Benefit 5460000 6840000 6900000 6900000 6840000 8193000
Net Benefit -2306122 3295750 3341375 3341375 3295750 4706250

Loan repayment schedule for 40 cows dairy farm project

Bank Loan(Rs) 4128800
Grace Period 6 Month (Depends on)
Ineterest rate% 2%/year
Balance 4211376
sl.no YEARLY Interest Principal Balance
Installment
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

sl.no Finalcial EstimatedPrefered

Idicator Value Value
1 Net present ? ?
worth(NPW)
@15% DF @15% DF or which one is the correct%
2 Benefit cost ? ?
Ratio (BCR)
3 Internal Rate ? ?
of return (IRR)
4 Debt service ? ?
Coverage ratio
(DSCR)