MODEL PROJECT FOR ESTABLISHMENT OF BREED MULTIPLICATION

FARM

Introduction of farmer

The farmer or the firm have to provide complete information on himself or his firm
here Name of the applicant: Current occupation/current business and area of work:

Details of past experience of farm operations especially dairy farm

operations/details on present arrangement with veterinary consultant or any such
firm if any:

Purpose of establishment of the farm:

Please mention motivation that led you to decide to start a breed multiplication
farm/ why you wish to establish this farm. Specifically describe gaps (availability of
quality animals/training for farmers and entrepreneurs/supply of quality milk/milk
products) that you wish to bridge by establishing this farm in your area.

Information on already available infrastructure:

Please describe current land holding, current dairy farm infrastructure, milk
processing and marketing arrangements ect. Also describe current viability of the
farm. You may put some photographs for existing infrastructure.

PROJECT TITLE: -

Establishment of a breed multiplication farm with the capacity to manage 200 dairy
cows and to meet out demand of milk in the area and supply quality heifers to
entrepreneurs and farmers .

GOAL OF THE PROJECT: -

Breed multiplication farm is proposed to be established through entrepreneurship

model for making available high genetic merit heifers (HGM) to farmers to fulfill
their need of general shortage of such animals and also meet demand of the milk
in the area and to augment the economy of rural livestock small holders, thereby
improving the quality of life of poor farmers in the area.

OBJECTIVES: -

The main objectives of the farm are to:

i) Establish dairy farm with the capacity to manage 200 dairy animals of
indigenous breed/high yielding breed;

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 ii) Multiplication of high yielding milch animals through scientific breeding
including IVF technology and sex sorted semen
iii) Spreading awareness about scientific management practices including
animal nutrition, disease prevention etc.
iv) Produce superior male and female calves for distribution in the field for
genetic up-gradation of local cattle of the area;

TOTAL FINANCIAL OUTLAY: -

Amount of Rs 4.25 crores will be required for establishment of breed

multiplication farm with the capacity of 200 milch animals.

TIME FRAME:-

Establishment of dairy farm will be completed in one year.

TECHNICAL PROGRAMME:-

 200 cows/ buffalo of high yielding preferably of indigenous breeds will be

inducted at the farm. Animal of indigenous --------------------breed will be
purchased from the breeding tract. Indigenous animals will be yielding more
than 3000 kgs per lactation (standard lactation yield). (meeting yield as
mentioned in project document). Indigenous breed is selected as there is
more demand of milk of indigenous breed in the area.

 Animals will be inseminated with sex sorted semen preferably of progeny

tested bulls with dams lactation yield above 4000 kgs in case of indigenous
cattle/ buffalo breeds. Semen straws will be purchased from different semen
stations in the country.

 Farm will use IVF technology and implant embryos of indigenous

cattle/buffalo breeds with high yielding potential. In embryo production
donor of indigenous cattle/buffalo breeds may be yielding more than 4000kg
and semen may be from indigenous cattle /buffalo bulls with dams lactation
yield above (as per standards and specifications given in the guidelines).
Bulls used in embryo production will be progeny tested/ genomically tested.

 About 140 female calves and 15 male calves will be born at the farm
annually. 20 female calves from the elitist of elite dams will be retained at
the farm for replacement of the herd @ 20% per annum. About 116 female
calves would be sold to the farmers in the region.

 Animals will be tested annually for Tuberculosis, Johnes Disease (JD), and
Brucellosis and positive animals will be removed from the herd. Herd

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 will be declared free of above diseases. The animals will be vaccinated
against FMD (six month interval), HS (annually), BQ (annually), and
Theileriosis (once in lifetime in case of exotic/crossbreds). However, the
vaccination against the bacterial diseases will be done only if there is an
outbreak or prevalence of a particular disease in the State. Exotic animals
will also be tested for genetic disorders.

Stock purchased
from Breeding
tract initially HERD of 200 HF cows

Regular disease
testing

r
160 animals in milk e
p
l
Inseminated with high genetic merit a
sex sorted semen/ IVF technology c
e
m
e
n
t

16 male calves 144 female calves

(mortality 10%)

Sold for AI/ after 20 elite

disease testing 116 female calves female calves

Made available to farmers

Fig: Technical Programme for BMF

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SOURCING OF ANIMALS:

Pure bred animals of indigenous breeds will be procured from breeding tract.
Animals will be selected on the basis of the dams performance (breeding value,
lactation yield & milk fat %) and sires’ information. Help of CHRS units be taken
during procurement of animals.
Source of animal procurement need to mention>>>>
CIVIL WORKS :

I Construction of cow sheds: 1 shed will be constructed with the capacity to

house at least 300 animals. Shed will have all modern facilities. Fan and sprinklers
will be fitted to prevent heat distress during summer months. Roof of the shed will
be made from asbestos or other suitable material easily available in the area. Each
animal will be provided with the floor space of 10 sq meter. Floor will be corrugated
to avoid slipping. Adequate manger and water trough with access to drink water all
time will be provided in all the sheds. Total cost of construction of sheds will be Rs
75 lakh . Modern cattle shed will be constructed having double row of cattle with
head to head arrangement.

II Construction of calf pen: A shed with individual pens will be constructed to

house calves born in the BMF. Each pen will have adequate water troughs and
feeding space for the calves. Each animal will be provided with floor space of 3 sq
meter. Total cost of construction of calf shed will be Rs 10 lakh

III Calving Pen: At one corner of BMF isolation shed will be constructed for
separating ailing or sick animals for treatment. Sick animals are required to be
removed from the herd for the safety of the animals. Isolation shed will be with
pens to house sick animals. Facility will be created to house at least 10 animals.

IV. Establishment of feed store room:A store with the capacity to store 10
metric tones of feed and fodder will be established at BMF.

TRACTOR AND AGRICULTURE IMPLEMENTS

For fodder production and other associated activities at the Cattle Sanctuary, two
tractor with agriculture implements will be required. For this an amount of Rs
14.00 lakh has been considered as capital investment.

Bio Gas Plant:

Bio gas plant of the capacity of 200 CU meter will be established at the farm and
slurry and manure generated at the farm will made available to other farmers/
entrepreneurs on market rates.

Feed and Fodder arrangement:

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Fodder crops will be grown at the farm including MP chari, Beseem, Lucerne,
Maize, Oat, Barley, Jwar, etc. In addition dry fodder mainly wheat straw will be
purchased from the farmers to meet requirement of the animals hosed in the farm.
Provision will be made at the farm for making silage from maize and other green
suitable green fodder crops grown at the farm. Cattle feed ingredients will be
purchased from the market and complete cattle feed will be prepared at the farm.
Additional requirement of silage will be purchased from the known sources
available in the country. Balanced ration will be fed to animals.

Water Arrangement for Animals

Tube well / any other source like pond, canal etc of water (give details) is already
available at the farm. Water is of potable quality and sufficient water is available
for drinking, cleaning of animals and cleaning of sheds and other utensils.

Veterinary aid:

Trevis has been constructed at the farm for treatment and conducting artificial
insemination. Help of nearby local veterinarian will be taken for treatment of sick
animals and also for artificial insemination. Local is available in the area and
suitable arrangement has been made for this purpose.

RECURRING COST:
To maintain a dairy farm over a period of 5 years, revenue expenditure has been
calculated which likely to be tune of Rs 1635.03lakh.

COST ESTIMATES:

The year wise financial details related to capital investment and recurring
expenditure to be incurred under the project are given in Annexure-I and IB. An
amount of R425 lakh would be required as capital investment under the project
and Rs 1635.03 lakh will be needed as recurring expenditure for implementation
of the project during 5 years.

OPERATING STATEMENT:

Revenue expenditure of Rs 1985.63 lakh and an income of Rs 2359.5 lakh have

been estimated. Details are shown in Annexure- II.

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Check List (applicant need to mention in the DPR)

i) Please mention how you wish to establish and build the

infrastructure on the proposed farm.
ii) Proposed Breed and number of animals planned to be reared on
the farm.
iii) Rationale for choosing particular breed.
iv) Number and type of cattle sheds planned.
v) Expected milk production and number of calves to be produced
every year
vi) Availability of water and related arrangements in the area and on
the farm
vii) Plan for production and procurement of feed and fodder
viii) Arrangement for consultancy and veterinary aid
ix) Plan for dung management.
x) Plan for energy requirement (electricity and hot water supply)
xi) Expected expenditure and income on the farm
xii) Mode of reproduction to be employed on the farm
xiii) Committed number of bull calves produced and heifers
supplied to farmers from the farm

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 Capital investment for Breed multiplication farm

Annexure-I

S. Particulars Un Physical Target Unit Financial requirements (Rs. Total

N it Cost Lakhs)
o (Rs.)
Year I Year Year Year Year Year I Yea Yea Yea Yea
II III IV V r II r III r IV rV
1 Purchase of No 200 100000 200 200
cows in first
lactation/2nd
lactation
2 Construction of pe 300 10 -- -- 25000 75 75
cow sheds 10 sq r 0 - -
meter per cow ( an
sheds to house im
200 cows and al
its
followers
3 Calf pens (3 sq Per 200 … … … … 5000 10 10
meter /calf) ani . .
mal
4 Calving pens pe 10 - - - - 2500 2.5 2.5
r 0
an
im
al
5 Administration Sq 1000 - - - - 2000 20 20
block ft
6 Feed & fodder sq 2000 2000 40 40
store room ft
7 Tractor 75 HP, No 1 400000 40 40
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 with 0
agriculture
implements
(culti, seed
drill, bailer,
fodder
harvester,
mower, TMR
wagon, other
equipments
as per
requirement
)
8 Dairy LS 100000 10 10
equipmets 0
(BMC,
stainless steel
Milk cans,
digital milko
tester,ghee
making
machine,deep
freezer etc)
9 Shed for Agri sq 150 1500 22. 22.
implements ft 0 5 5
10 Chaff cutter 1 50000 5 5
(electric) 0
11 Bio gas plant Cu 1 10
met
er
Total 43 0 0 0 0 43
5 5

Breed Composition
Page 8 of 14
 Sr. No. Breed of cattle/buffalo % Numbers Source of animal
procurement
1 Gir 25 50
2 Sahiwal 25 50 State from where
3 Rathi 25 50 animal will be
4 Murrah 25 50 procured

 Applicant may have the choice of breed selection; provided they need to mention composition, if they select more
than 2 breeds.

 Entrepreneurs are allowed to maintain exotic (pure HF & Jersey) and crossbred cattles (CBHF & CBBJY) at their
farm, but they have to use In vitro fertilization Embryo Transfer (IVF ET) technique to use only indigenous heifers.
 Applicant need to mention breeding charges of IVF ET in farm recurring expenses in Annexure-IB, if they select
exotic/crossbred cattles.

Means of Finance of the project

Sr. No. Means of Finance Rs. In Lakh

1 Self Contribution (minimum 10 %) 43.5
2 Bank Term loan 191.5
3 Subsidy under the scheme 200
Total Means of Finance 435

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 Annexure-IB
Breed multiplication farm
Recurring expenses
S. Particulars Unit Physical Targets Unit Financial Targets (Rs lakh)
No cost(R
st nd rd th th s st nd rd 4th Year 5th Year Total
1 2 3 4 5 1 2 3
)
Year Year Year Year Year Year Year Year
Variable
Cost-A
1 Feeding and No 200 225 250 250 250 200/ani 146 164.25 182.5 182.5 182.5 857.75
maintenanc mal
e /day
2 Feeding of No 160 160 200 200 200 100/cal 58.4 58.4 73 73 73 335.8
calves f
/day
3 Feeding of No 160 160 160 160 150/he 0 87.6 87.6 87.6 87.6 350.4
heifers i fer
/day
4 Veterinary No 100 100 100 100 100 500/yea 1.8 0.545 0.61 0.61 0.61 4.175
Medicine r
5 Water & No - - - - - 5000/ 0.6 0.6 0.6 0.6 0.6 3
electricity m
charges onth
6 Breeding No 180 347 369 369 369 1000/a 5.4 10.395 11.07 11.07 11.07 49.005
charges n
imal
7 Milk chilling Lak 10.9 12.31 13.68 13.68 13.68 0.50/lit 5.475 6.1593 6.843 6.84375 6.84375 32.166
charges h lts 5 875 75 75 75 r 75 75
e
8 Miscellaneous No 100 100 100 100 100 100/ 0.36 0.545 0.61 0.61 0.61 2.735
s expenses animal
Total 218.0 328.49 362.8
4 44 338 362.833 362.833 1635.03
8 8
Applicant need to mention the cost fodder (dry fodder, green fodder, concentrate) i.e break up of per day cost of
feeding

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 Breed multiplication farm
Recurring expenses on
Manpower

Annexure-IB
S. Particulars Unit Physical Targets Uni Financial Targets (Rs lakh)
No t
cos
t
(Rs)
1st 2nd 3rd 4th 5th 1st 2nd 3rd 4th 5th Total
Yea Year Year Year Year Yea Year Yea Year Year
r r r
Fixed Cost-B
1 Manager No 1 40000 4.8 4.8 4.8 0 9. 24
/ 6
mont
h
2 Cow No 10 5 15000 18 18 27 2 27 11
handlers/wor / 7 7
kers mont
h
3 Chowkidar No 2 15000 3.6 9 9 9 9 39.6
/
mont
h
Total 26. 31. 40. 36 45. 180.
4 8 8 6 6

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 Breed multiplication farm
Estimated Operating Cost &
Income
Annexure-II

S. No Particul Financial (Rs lakh)

ars 1st Year 2nd Year 3rd Year 4th Year 5th Year Total

Expenditure
1 Total Variable Cost A 218.035 328.494375 362.833 362.8338 362.8338 1635.03
8
2 Fixed Cost B 26.4 31.8 40.8 36 45.6 180.6
3 Depreciation cost C @ 8% 34.8 34.8 34.8 34.8 34.8 174
per year

Total A+B +C 279.235 395.094 438.433 433.633 443.2338 1989.63

8
Income
1 Income from sale of milk @ 360 360 360 360 360 1800
Rs 50/kg

2 Income from sale of 150 150 150 450

breeding stock @ Rs 1 lakh
per animal @ 150 animals

3 Sale of organic manure Rs 21.9 21.9 21.9 21.9 21.9 21.9

2 per kg; 10 kg manure
per cow per day

Total income 381.9 381.9 531.9 531.9 531.9 2359.5

Surplus/Deficit 102.66 -13.194 93.4662 98.26 88.66 369.87

(Note: Applicant needs to incorporate payment of income taxes figures for five years)

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 Loan Repayment schedule (considering rate of interest of the bank 10 %): Principal = 1.91 cr.; Interest = 10 %; Tenure = 5
years

Principal Interest Total Payment

Year Balance
(A) (B) (A + B)
2024 30,99,321 17,70,502 48,69,823 1,60,00,679
2025 34,23,861 14,45,962 48,69,823 1,25,76,818
2026 37,82,383 10,87,439 48,69,823 87,94,435
2027 41,78,448 6,91,374 48,69,823 46,15,987
2028 46,15,987 2,53,836 48,69,823 -
Total 1,91,00,000 52,49,113 2,43,49,115

Expected Cash Flow

Annexure-III

S. No Particul Financial (Rs

ars lakh)
1st Year 2nd Year 3rd Year 4th Year 5th Year Total
1 Total non-
recurring 425 0 0 0 0 425
expenditure
2 Total recurring 26.4 31.8 40.8 36 45.6 180.6
expenditure on
manpower
3 Total recurring on 218.035 328.49438 362.834 362.834 362.834 1635.03
management of animals
Total 669.435 360.29437 403.633 398.833 408.433 2240.63
5 8 8 8 1

Note: The applicant may use the same template, provided the rate of interest figures for the loan have been checked
with their concerned banks. The applicant may plan for an exact amount of Rs. 400 lakh.

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Guidelines for preparing project Document

A project proposal to establish a Breed Multiplication Farm for -----

Breed with 200/50 adult cows/buffaloes at --- --.(to be fiiled by beneficiary)

(For the entrepreneurs in NER & Hilly states, are eligible for
establishment of breeder farm for 50 cows /buffalo; rest of the states
are eligible for 200 cows/buffaloes)

Introduction:
[Should contain purpose of establishing farm, the location proposed, the
breeds proposed
(Gir/Sahiwal/Red Sindhi/Rathi/Haryana/Tharparkar/Crossbred
Jersey/Crossbred HF/Murrah/Mehsana/Nilli Ravi/Jaffarabadi)

Farmers are allowed to maintain exotic/CB cattles, but they have to use IVF
ET technique to produce indigenous heifers only. They have to include
breeding charges of IVF ET technique.

Dairying till date had been supplementary source of income to the farmers.
With increasing population trend, frequent climate changes affecting
productivity of agricultural produce, less opportunities in other industries in
rural areas etc. has prompted many young farmers and entrepreneurs to take
up dairy business in rural and semiurban areas. The scope for dairying has
increased due to both increased population and increased income level
leading to higher disposable income. This has led to increased demand for
milk and dairy products in our country and all over the world.

Dairy business is environmentally successful if taken in scientific manner.

Animal productivity affects sustainability and profitability of a dairy farm. In
our country, there are many aspiring young farmers willing to take up dairy
as a specialized profession. However, there are two main obstacle in this
aspect. One is required technical knowhow for dairy farming and second one
is availability of quality animals for dairy farmers.

Page 14 of
Please 14 mention your area specific issues or other points you think
also
are important for supporting your initiatives.

To tackle the issue of supply of quality animals I/we propose to establish a

dairy farm with 200/50 adult dairy cows of ____________ breed at ___________
(land location).

Introduction of farmer

The farmer or the firm have to provide complete information on himself or

his firm here Name of the applicant :_____________________(to be fiiled by
beneficiary)
Current occupation/current business and area of work: …………….. (to
be fiiled by beneficiary)

Details of past experience of farm operations especially dairy farm

operations/details on present arrangement with veterinary consultant
or any such firm if any:

Purpose of establishment of the farm:

 Please mention motivation that led you to decide to start a breed

multiplication farm/ why you wish to establish this farm.
 Specifically describe gaps (availability of quality animals/training for
farmers and entrepreneurs/supply of quality milk/milk products) that
you wish to bridge by establishing this farm in your area.

Information on already available infrastructure:

 Please describe current land holding, current dairy farm

infrastructure, milk processing and marketing arrangements etc.
 Also describe current viability of the farm. You may put some
photographs for existing infrastructure.

Information on proposed farm

Please mention how you wish to establish and build the infrastructure on
the proposed farm.
1. Proposed Breed and number of animals planned to be reared on the
farm. Rationale for choosing particular breed.
2. Source of animal procurement
3. Number and type of cattle sheds planned
4. Expected milk production and number of calves to be produced
every year
5. Availability of water and related arrangements in the area and on
the farm
Page 15 of 14 for production and procurement of feed and fodder
6. Plan
7. Arrangement for consultancy and veterinary aid
8. Plan for dung management
9. Plan for energy requirement (electricity and hot water supply)
10. Expected expenditure and income on the farm
11. Mode of reproduction to be employed on the farm (IVF ET/Sexed
Sorted Semen)
12. Committed number of bull calves produced and heifers (90 in case
of cattle and 70 in buffaloes & 20 in case of NER & Hilly states)
supplied to farmers from the farm.
Information on source of funding and required amount of subsidy based
on scheme provisions:
Means of finance

Please provide detailed statement on farm operation based on excel

working.
Income and expenditure at the farm.

Income: income from sale of milk, sale of male and female calves, sale of
manures and gunny bags.

Expenditure include all the expenses towards:

 Feed and fodder and concentrates along with rates,
 Milk chilling charges,
 Breeding and medicine charges,
 Salary of farm managers along with skilled labour,
 Rate of interest, loan repayment schedule,
 Payment of income tax,
 Depreciation of assets figures.

Please provide details of estimates of capital investment requirement for next

five years for various aspects:
(Applicable for Rs. 400 lakh project outlay: Tentative)
Particular Year Year Year Year 4 Year Total
1 2 3 5
Civil 184
infrastructure
Equipment 16
Animal purchase 200
Total Capital 400
funds
required
Funds to be met Rs.
from
Page 16 of 14 40 to
own resources Rs.
Minimum 10 % to 150
maximum up to Lakh
37.5 % of the
project cost)
Funds to be Rs.
sourced 50 to
from bank loan Rs.
(12.5 % to 40 % of 160
the project cost) lakh
Subsidy amount Rs.
eligible (limited 200
to Rs. 200 lakh) lakh
Considering the requirement for supply of ---- , I/we request DAHD to
consider our proposal and grant a subsidy amount of Rs. ---. We assure that
we will supply annually, ---- heifers till next 4 years or till --- 2026, to the
interested farmers on cost basis. We also assure to abide by terms and
conditions under which the proposed Breed Multiplication Farm will be
funded under Rashtriya Gokul Mission.

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