Marketing Management :

Marketing Functions:

1.Storage:
Milk can’t be store for long time.it is highly perishable So It Is Directly To Dairy Unit On Time.

2.Transportation-
Milk is Transported through Tempo to the dairy farm

3.Weighing-
Quantity of milk received is verified at the dairy farm.

4.Quality control-
For quality control milk different Machine are been Used i.e Lactoscan , Sterror .To Check The
Accurate Quality of milk And this process Is Done Regularly.

4 P’s Of Marketing:-

1. Product :- Product refers to a good or service that a company offers to customers. Ideally, a
product should fulfill an existing consumer demand.
 The fresh and organic milk is Produces.
 Milk sold Directly To The Dairy Co-operative form.

2. Price:- Price is the cost consumers pay for a product.

 Price is Varies According to the Quality&Quantity of Milk
 Price Of milk Depends On FAT And SNF of Milk And Rate Is Given.
 Payment Of The Milk Are Release 3 Time In The Month.
3. Place:- When a company makes decisions regarding place, they are trying to determine
where they should sell a product and how to deliver the product to the market.
 The milk is Directly Sold to Dairy Unit i.e Pirsaheb Dairy.
 Distribution channel : Producer To Dairy Unit To Khandage Dairy Farm To Pirasheb
Dairy To Consumer.

4. Promotion:- Promotion includes advertising, public relations, and promotional strategy.

 No Promotion Activities are Carried Out by Khandage dairy farm because Milk are been
directly sold to the co-operative unit.

Marketing Channel :

Khandage Dairy farm

1

Pirsaheb Dairy
2

Consumer
3
Technical Aspects :

A) Land and Land Development

1) Location – A/P Devgaon, Tal- Ambegaon, Dist- Pune 410504 .
2) Proximity of Road – Near to Devgaon Road. Good Road for transportation..
3) Area Covered By Dairy Farm- 4.5R

B) Civil Structure
1) Barn size : 4.5 R

C) Equipment's & Machineries

1) Chaff Cutter
2) Disel Engine
3) Sickle
4) Buckets
5) Milk Can
6)Brooms
7) Tub
8) Motor Pump
9) Milk Machine

D) Housing
1) Type of dairy barn – Open Shed Dairy Barn
2) Area covered by Dairy barn- 4.5 R

E) Cow
1. Total number of animal – 26 cattle's
2. Breeds – H.F Variety

F) Feeding
Feeding Time –
1) Morning = 5 Am
2) Evening = 4 Pm & 6 Pm

G) Milking
Milking time -
1) Morning = 6-7 Am
2) Evening = 7-8 Am

H) Availability of Utility
1) Water – well & 1 bore well
2) Power – M.S.E.B.

Strengths of Khandage Dairy Farm :

1. The owner of farm has good knowledge and experience in dairysector.
2. There is an effective use of all resources like land and labours.
3. Production of high quality and quantity of milk.
4. Financial position is one of the strong strengths of the enterprise.
5. Use of good quality fodder for animal.

Weaknesses:-
1. Lack of atomization in the farm for the different operation.
2. Unavailability of milk store house in the farm.
3. Permanent labors not easily available.
4. Concentrate required being purchase.
5. Irregular electricity supply.

Opportunity:
1. To produce by products.
2. Increase the number of Cows in Khandage dairy farm for proper utilization of capital
investment.
3. To start the bio gas project.
4. Preparation of vermicomposting.

Threats:
1. Viral Diseases.
2. Increased prices of Concentrated Fodder.
3. Increasing temperature reduces the milk production.
4. Increase in number of wild animals in farm area.

Experience Gained:
A. About resources management
1. I experience that how to supply water resource in overall farm.
2. I got experience how the fodder is store and how it is used.

B. About supply chain management

1. I got knowledge about how to purchase fodder in minimum prices and where to purchase it to
reduce the variable cost.
2. I got knowledge about how the final product sale and achieve maximum value of that product.
3. Also I got knowledge about where to sale that product.

C. About quality management

1. I got experience about how to increase the quality of milk.
2. I got experience when the animal shed, animals, and the workers are clean, hygienic and
healthy then and then the quality of the final product is good.

D. About Human resource management

1. I got experience that the dairy farm is totally depending on labors.
2. Also, I got experience about managing the labors, by giving them some bonus or gifts.

E. About financial management

1. I got experience that how can use all the fund properly to satisfy all the requirements.
2. I got the knowledge about how they can maintain their profit.

F. About inventory management

1. I got knowledge about which equipments and machineries are required for proper management
of dairy farm.
2. Also I got knowledge about how to store it properly.

Summary:-

Particulars Cost
Annual Fixed Cost (Rs) Rs. 4,15,043

Annual Variable Cost (Rs.) Rs. 13,76,394.8

Total Annual Cost of Production (Rs) Rs. 17,91,437.8

Fixed Cost per liter (Rs) Rs. 24

Variable Cost per liter (Rs) Rs. 15.29

Cost of production per liter (Rs) Rs. 19.90

Gross Income (Rs) Rs. 23,64,000

Benefit Cost Ratio 1.14%

Net Present Worth Rs. 11,42,580.46

Internal Rate of Return 40.04

Break Even point (Rs) Rs. 11,21,737.83

Break Even Point (Unit) 47,651.32 Lit.

Profitability Index 0.88

Profitability Ratio 24.22%

Liquidity Ratio 1.71%

Fixed capital Turnover Ratio 5.49%

Working Capital Turnover Ratio 1.45%

Payback Period 4.08 Years

Conclusion:
a. Dairy farm requires large capital investment in the form of livestock, machinery and buildings,
which will cause large annual fixed costs.
b. The NPW is positive hence the Khandage dairy farm project is feasible.
c. BCR is greater than 1 so Khandage dairy farm project is financially feasible.
d. Payback period for Khandage dairy farm is 4 years.
e. IRR is also more than the market interest rate therefore farm project is economically feasible.
f. IRR of Khandage dairy farm is 40.04 %

Problems:
a. Irregular Electricity Supply .
b. Second problem is about labors, labors are not easily available.

Suggestions:
1. Increase the number of animals at farm..
2. Start bio gas project.
3. Buy an Inverter For the electricity.
4. Produce by products to increase gross profit.
5. Give the gifts and bonus to the labours.