WELCOME

1
 ADVISORY COMMITTEE

Prof. Dr. M.N.

Waghmare
D I Nominee

Dr.M.B.Bhujabal Prof.S.M.Acharya
Member (Secretary Member)

Prof. M.C.Jadhav. Prof.O.R.Thorat

(Agri.Business
(S.M.S.) Management)

Prof. V.N.Jadhav Prof.K.M.Chavan

(A.B.S) 2
(Agri.Science)
 MODULE-1. RAWE

 Name Of The Student: Kishor Baban Bombe

 Reg.No.-ABN2018/005
 Name OF The Village- Pimparkhed
 Name Of The Farmers- Mr. Laxman Kundalik Gaikwad
 Name Of The College- College Of Agriculture Business Management, Narayangaon.
GRAMPANCHAYAT INFORMATION

 Name Of Grampanchayat- Grampanchayat Pimparkhed.

 Address-At/Post-Pimparkhed,Tal-Shirur,Dist-Pune
 Year Of Establishment- 1952
 Members Of Village Council- 11

GENERAL INFORMATION OF HOST FARMER:

Particulars Details
Name of the Host Farmer Mr.Laxman Kundalik Gaikwad
Sex-Male/Female Male
Age-(Years) 60
Education SSC
Total Land Holding 2.80 Ha
Category Of Host Farmer Medium Farmer
Address At/Post-Pimparkhed, Tal-Shirur, Dist-Pune,
Contact No. 9881424532/9850847122
  Exsiting Cropping Pattern (2020-21):

Yield Per Plot

Area Total Gross
Season. Plot No. Crops Variety
(Ha) Income (Rs)
Main(qtl) Bye Product
A Gram Nirmal 0.56 12 0 66,000
Kharif
B Bajara Mahayco-204 0.74 33 5000 77,600
A Jowar Advanta537 0.56 62 10000 1,21,600
Rabi
B Coriander Indori 0.74 32 0 64,000
B Groundnut Vikram 0.74 30 10000 1,60,000
Summer
A Fallow Land
C Banana G-9 0.65 530 0 3,97,500
Perrenial
D Sugarcane 265 0.65 1090 0 2,84,800
Total 4.64 25,000 11,71,500

.
 Map Of Existing Cropping Pattern (2020-21)

Plot A, A-0.56

K-Gram,R-Jowar

BELHA-JEJURI HIGHWAY
Plot-D, A-0.65Ha Plot B, A-0.74Ha

Plot’C’ K-Bajara, R-Coriander, S-Groundnut

Perennial-0.65Ha
Cropping Intensity:

Sr.No Area Particulars Area(Ha)

1 Total Land 2.80
2 Net Cultivated Area 2.60
3 Gross Cropped Area 4.64

Cropping Intensity = (Gross Cropped Area / Net Cultivated Area) * 100

= (4.64/2.60) * 100
= 178.46%

Interpretation: The Cropping Intensity is grater than 100% which shows land that is well utilized
Crop Wise Overhead Cost:

Sr.No. Crops Plot Area Depreciation (Rs) Incidental Interest on Irrigation Land
(Ha) Charges fixed capital Charges (Rs) Revenue
(Rs) (Rs)
1 Gram 0.56 2,891.84 422.41 7560.60 11539.44 14
2 Bajara 0.74 3,821.36 558.18 9990.79 16203.91 18.5
3 Jowar 0.56 2,891.84 422.41 7560.60 12457.17 14
4 Coriander 0.74 3,821.36 558.18 9990.79 18923.11 18.5
5 Groundnut 0.74 3,821.36 558.18 9990.79 16475.83 18.5
6 Banana 0.65 3,356.60 490.30 8775.70 47,997 117
7 Sugarcane 0.65 3,356.60 490.30 8775.70 46,697.4 123.5
Total 4.64 23,960.96 3,499.96 62,644.97 1,70,293.86 324
Crop Wise Input Used By host farmer:

Crop: Bajara Variety: Mahayco-204 Season: Kharif Area: 0.74 Ha

Sr. Item of Cost Unit Quantity Rate/ Value Value % Share
No. Unit (Rs./Plot) (Rs./Ha.) in Cost C3
1. Hired Human Labour
a) Male Days 6 250 1500 2027.03 2.45
b)Female Days 24 150 3600 4864.86 5.88
2. I) Hired Bullock labour Days - - - - -
ii) Owned Bullock labour Days - - - - -
3. i) Hired Machinery Used Hour - - - - -
ii) Owned Machinery Used Hour 6 1125 6750 9121.62 11.02
4. Value of Seed (Purchased & Owned) Kg. 9 103.33 929.27 1255.77 1.51
5. Manure (Both owned and hired) Tons/CL - - - - -
6. Fertilizers
i Straight (Urea) Kg. 100 6 600 810.81 0.98
ii Mixed Kg. - - - - -
iii Complex (10:26:26) Kg. 100 23 2300 3108.10 3.75
iv Water-soluble Kg. - - - - -
v Micronutrient Kg. - - - - -
7. Insecticides
i Pesticides (Tafgor) Lit. 2 750 1500 2027.02 2.45
ii Fungicide Lit. - - - - -
8. Irrigation Charges Rs. 0 0 16203.91 21,897.17 26.46
9. Incidental Charges Rs. 0 0 558.18 754.29 0.91
 Per Hectare Cost of Cultivation:
Crop: Bajara Variety: Mahayco-204 Season: Kharif Area: 0.74 Ha
Sr. Item of Cost Unit Quantity Rate/ Value Value % Share
No. Unit (Rs./Plot) (Rs./Ha.) in Cost C3
1. Hired Human Labour
a) Male Days 6 250 1500 2027.03 2.45
b)Female Days 24 150 3600 4864.86 5.88
2. I) Hired Bullock labour Days - - - - -
ii) Owned Bullock labour Days - - - - -
3. i) Hired Machinery Used Hour - - - - -
ii) Owned Machinery Used Hour 6 1125 6750 9121.62 11.02
4. Value of Seed (Purchased & Owned) Kg. 9 103.33 929.27 1255.77 1.51
5. Manure (Both owned and hired) Tons/CL - - - - -
6. Fertilizers
i Straight (Urea) Kg. 100 6 600 810.81 0.98
ii Mixed Kg. - - - - -
iii Complex (10:26:26) Kg. 100 23 2300 3108.10 3.75
iv Water-soluble Kg. - - - - -
v Micronutrient Kg. - - - - -
7. Insecticides
i Pesticides (Tafgor) Lit. 2 750 1500 2027.02 2.45
ii Fungicide Lit. - - - - -
8. Irrigation Charges Rs. 0 0 16203.91 21,897.17 26.46
9. Incidental Charges Rs. 0 0 558.18 754.29 0.91
10. Land Revenue & Other cesses Rs. 0 0 18.5 25 0.03
11. Depreciation on Implements, Machinery & Rs. 0 0 3,821.36 5164 6.24
Building
12. Miscellaneous expenses Rs. - - - - -
13. Total Working Capital (Total of 1to12) Rs. 0 0 37,781.22 51,055.67 67.71

14. Interest on Working Capital @ Rs. 0 0 2,266.87 3,063.34 3.70

prevailing bank rate for full Crop Period

15. Cost A1 (13+14) Rs. 0 0 40,048.09 54,119.01 65.41

16. Rent Paid for Leased in Land - - - - -
17. Cost A 2 (15+16) Rs. 0 0 40,048.09 54,119.01 65.41
18. Interest on Fixed Capital Excluding Rs. 0 0 990.79 1138.90 1.37
land(10% on Fixed Investment)

19. Amortization Value in Case of Fruit Crops Rs. - - - - -

20. Cost B1 (15+18+19) Rs. 0 0 41,038.88 55,457.91 67.03
21. Rental Value of land (1/6th of gross Return Rs. 0 0 12,914.83 17,452.47 21.09
– Land Revenue)

22. Cost B2 (16+20+21) Rs. 0 0 53.953.71 72910.38 88.13

23. Imputed Value of Family Labour Rs.
a)Male 5 250 1250
b)Feamle 3 150 450
Total 1700 2297 2.77
24. Cost C1 (20+23) Rs. - - 42,738.88 57,754.91 69.81
25. Cost C2 (22+23) Rs. - - 55,653.71 75,207.38 90.90

26. Managerial Allowance (10% of cost C2) - - 5565.37 7520.73 9.09

27. Cost C3 (25+26) i.e. Total Cost Rs. - - 61,219.08 82,728.11 100

YIELD:
Crop: Bajara Variety: Mahayco-204 Season: Kharif Area: 0.74 Ha

Sr. Item of Yield Unit Quantity Rate/ Unit Value Value

No. (Rs./Plot) (Rs./Ha.)
1. Main Product Q 33 2200 72,600 98,108.10
2. By Product Q 1000 5 5000 6756.75
Gross Income 77,600 1,04,864.85
Per Hectare Estimated Income Measures:

Sr.No Income Measures Formula Value/Per Ha. (Rs) Total (Rs)

1 Farm Business income (F.B.I) Gross income - Cost A1 104864.85 – 54119.01 50,745.84

2 Owned Farm business income Gross income – Cost A2 104864.85 – 54119.01 50,745.84

3 Family Labours Income Gross income – Cost B2 104864.85 – 72910.38 31,954.47

4 Net Income(N.I) Gross income – Cost C3 104864.85 – 82728.11 22,136.74

5 Farm Investment income FBI – Imputed value of family 50,745.84 – 2297 48,448.84
labour
6 Intensive income(I.I) Net income+Rental value of (22,136.74+17,452.47) 40,728.11
land+Interest on fixed capital. + 1138.90

7 Benefit Cost Ratio(B.C.R) Gross Income/Cost C3 104864.84/82728.11 1.26

8 Per quintal cost of cultivation (Cost C3-Value of by (82728.11 – 1,726.62

product)/Yield(in qtl) 6756.75)/44
9 Per Hectare cost of cultivation (Cost C3-Value of by (82728.11 – 75,971.36
product)/Plot Area 6756.750/1
 Crop Wise Input Used By Host Farmer:

Crop: Sugarcane Variety: 265 Season: Perennial Area: 0.65 Ha

Sr. Item of Cost Unit Quantity Rate/ Value Value % Share

No. Unit (Rs./Plot) (Rs./Ha.) in Cost C3
1. Hired Human Labour
a) Male Days 12 250 3000 4615.38 1.66
b)Female Days 20 150 3000 4615.38 1.66
2 i) Hired Machinery Used Hour - - - - -
ii) Owned Machinery Used Hour 8 800 6400 9846.15 3.54
3. Value of Seed (Purchased & Owned) Bundles. 130 90 11,700 18,000 6.47
4. Manure (Both owned and hired) Tons/CL - - - - -
5. Fertilizers
I Straight Kg.
i) Urea Kg. 300 6 1800 2769.23 0.99
ii) Potash Kg. 200 16 3200 4923.07 1.77
Ii Complex Kg.
i) 18:46:46 Kg. 200 25 5000 7692.30 2.76
ii) 10:26:26 Kg. 200 25 5000 7692.30 2.76
V Micronutrient Kg. - - - - -
i) Zinc Kg. 10 40 400 615.38 0.22
ii) Ferrous Kg. 10 30 300 461.53 0.16
6. Insecticides
i Fungicide Lit. 2 300 600 923.07 0.33
 ii) Weedicides
i) Sencor Kg. 1.2 1250 1500 2307.69 0.83
ii) 2-4-D Lit. 3 330 990 1523.07 0.54
iii) Altrazine Kg. 2 300 600 923.07 0.33
7. Irrigation Charges Rs. - - 46,697.4 71,842.15 25.85
8. Incidental Charges Rs. - - 490.30 754.30 0.27
Per Hectare Cost Of Cultivation:

Crop: Sugarcane Variety: 265 Season: Perrenial Area: 0.65 Ha

Sr. Item of Cost Unit Quantity Rate/ Value Value % Share
No. Unit (Rs./Plot) (Rs./Ha.) in Cost C3
1. Hired Human Labour
a) Male Days 12 250 3000 4615.38 1.66
b)Female Days 20 150 3000 4615.38 1.66
2 i) Hired Machinery Used Hour - - - - -
ii) Owned Machinery Used Hour 8 800 6400 9846.15 3.54
3. Value of Seed (Purchased & Owned) Bundles. 130 90 11,700 18,000 6.47
4. Manure (Both owned and hired) Tons/CL - - - - -
5. Fertilizers
I Straight Kg.
i) Urea Kg. 300 6 1800 2769.23 0.99
ii) Potash Kg. 200 16 3200 4923.07 1.77
Ii Complex Kg.
i) 18:46:46 Kg. 200 25 5000 7692.30 2.76
ii) 10:26:26 Kg. 200 25 5000 7692.30 2.76
V Micronutrient Kg. - - - - -
i) Zinc Kg. 10 40 400 615.38 0.22
ii) Ferrous Kg. 10 30 300 461.53 0.16
6. Insecticides
i Fungicide Lit. 2 300 600 923.07 0.33
 ii) Weedicides
i) Sencor Kg. 1.2 1250 1500 2307.69 0.83
ii) 2-4-D Lit. 3 330 990 1523.07 0.54
iii) Altrazine Kg. 2 300 600 923.07 0.33
7. Irrigation Charges Rs. - - 46,697.4 71,842.15 25.85
8. Incidental Charges Rs. - - 490.30 754.30 0.27
10. Land Revenue & Other cesses Rs. 123.5 190 0.06
11. Depreciation on Implements, Machinery & Rs. 3356.60 5164 1.85
Building
12. Miscellaneous expenses Rs. - - - - -
13. Total Working Capital (Total of 1to12) Rs. 94,157.8 1,44,858.07 52.13

14. Interest on Working Capital @ Rs. 11,298.93 17,382.96 6.25

prevailing bank rate for full Crop Period

15. Cost A1 (13+14) Rs. 1,05,456.73 1,62,241.03 58.39

16. Rent Paid for Leased in Land - - - - -
17. Cost A 2 (15+16) Rs. 1,05,456.73 1,62,241.04 58.39
18. Interest on Fixed Capital Excluding Rs. 8775.70 13,501.07 4.85
land(10% on Fixed Investment)

19. Amortization Value in Case of Fruit Crops Rs. - - - - -

20. Cost B1 (15+18+19) Rs. 1,14,232.43 1,75,742.1 63.25
21. Rental Value of land (1/6th of gross Return Rs. 47,343.16 72,835.63 26.21
– Land Revenue)

22. Cost B2 (16+20+21) Rs. 1,61,575.59 2,48,577.73 89.46

23. Imputed Value of Family Labour Rs.
a)Male 8 250 2000
b)Feamle 4 150 600
Total 2600 4000 1.43
24. Cost C1 (20+23) Rs. - - 1,16,832.43 1,79,742.1 64.69
25. Cost C2 (22+23) Rs. - - 1,64,175.59 2,52,577.73 90.90

26. Managerial Allowance (10% of cost C2) - - 16417.55 25257.77 9.09

27. Cost C3 (25+26) i.e. Total Cost Rs. - - 1,80,593.14 2,77,835.5 100

YIELD:
Crop: Sugarcane Variety: 265 Season: Perennail Area: 0.65 Ha
Sr. Item of Yield Unit Quantity Rate/ Unit Value Value
No. (Rs./Plot) (Rs./Ha.)
1. Main Product Ton 109 2612 2,84,800 4,38,153.84
2. By Product -
Gross Income 2,84,800 4,38,153.84
Per Hectare Estimated Income Measure:

Sr.No Income Measures Formula Value/Per Ha. (Rs) Total (Rs)

1 Farm Business income (F.B.I) Gross income - Cost A1 4,38,153.84 – 2,75,912.81

1,62,241.03
2 Owned Farm business income Gross income – Cost A2 4,38,153.84 – 2,75,912.81
1,62,241.03
3 Family Labours Income Gross income – Cost B2 4,38,153.84 – 1,89,576.11
2,48,577.73
4 Net Income(N.I) Gross income – Cost C3 4,38,153.84 – 1,60,318.34
2,77,835.5
5 Farm Investment income FBI – Imputed value of family 2,75,912.81 - 4000 2,71,912.81
labour
6 Intensive income(I.I) Net income+Rental value of 1,60,318.34+72,835.63 2,46,655.04
land+Interest on fixed capital. +13,501.07

7 Benefit Cost Ratio(B.C.R) Gross Income/Cost C3 4,38,153.84/2,77,835.5 1.57

8 Per quintal cost of cultivation (Cost C3-Value of by (2,77,835.5 – 00)/1090 254.89

product)/Yield(in qtl)
9 Per Hectare cost of cultivation (Cost C3-Value of by 2,77,835.5/1 2,77,835.5
product)/Plot Area
*Existing Cropping Pattern(2020-21):

Yield Per Plot

Area Total Gross Income
Season. Plot No. Crops Variety
(Ha) (Rs)
Main(qtl) Bye Product
A Gram Nirmal 0.56 12 0 66,000
Kharif
B Bajara Mahayco-204 0.74 33 5000 77,600
A Jowar Advanta537 0.56 62 10000 1,21,600
Rabi
B Coriander Indori 0.74 32 0 64,000
B Groundnut Vikram 0.74 30 10000 1,60,000
Summer
A Fallow Land
C Banana G-9 0.65 530 0 3,97,500
Perrenial
D Sugarcane 265 0.65 1090 0 2,84,800
Total 4.64 25,000 11,71,500

*Optimum Farm Plan:

Yield Per Plot
Area Total Gross Income
Season. Plot No. Crops Variety
(Ha) (Rs)
Main(qtl) Bye Product

A Maize Sugar-75 0.56 45 0 1,10,000

Kharif
B Bajara Mahayco-204 0.74 33 5000 77,600
A Jowar Advanta537 0.56 62 10000 1,21,600
Rabi
B Cabbage Green Challenger 0.74 35 0 85,000
A Groundnut Vikram 0.74 30 10000 1,60,000
Summer
B Fallow Land
A Banana G-9 0.65 530 0 3,97,500
Perrenial
B Sugarcane 265 0.65 1090 0 2,84,800
Total 4.64 25,000 12,36,500
.

Disposal of Farm Commodity:

Sr.N Commodities Variety Yeild(Qtl) Market Mode of

o. Transportation
1 Red Gram Nirmal 12 APMC,Manchar Roadway
2 Bajara Mahyco-204 33 APMC,Manchar Roadway
3 Jowar Advanta537 62 APMC,Manchar Roadway
4 Coriander Indori 32 APMC,Manchar Roadway
5 Groundnut Vikram 30 APMC,Manchar Roadway
6 Banana G-9 530 Roadway
7 Sugarcane 265 1090 Bhimashankar Sugar Roadway
Factory
1)Commodity
. Name: Jowar
Marketing Channels:
Farmer/Producer Commision Agent Retailer Consumer.
In Case of Marketing of Jowar , Farmer sold 62qt. Jowar to commission agent @Rs .1800/qt.
Then Commision Agent sold 62qt. of jowar to retailer @Rs. 1900/qt.And Retailer sold 62qt. of jowar to
consumer @Rs.2400/qt

Marketing Cost:
 .
Sr.No. Particulars Rate/Unit Qty. Ammount(Rs)
Cost Incurred by Farmer:
1 Loading Cost 7/qt 62 434
2 Transportation Cost 50/qt 62 3100
3 Weighing Cost 100/Vehicle 1 100
4 Unloading Cost 3/qt 62 186
5 Handling Cost 4/Bag 124 496
Sub Total 4316
Cost Incurred by Commission Agent:
1 Polythene Bags 7/Bag 124 868
2 Storage Cost 4/Qt 62 248
Sub Total: 1116
Cost Incurred By Retailer:
1 Transportation Cost 20/Qt 62 1240
2 Loading & Unloading Cost 10/Qt 62 620
3 Grading & Cleaning Cost 15/Qt 62 930
4 Repackaging Cost 10/Qt 62 620
 Calculation:
A. Net price received by farmer=Selling price –Cost incurred by farmer
= 111600-4316
Net price received by farmer =107284
B. Total Marketing Cost =Cost Incurred by farmer+ Cost incurred by Commison Agent+Cost incurred by Retailer
=4316+1116+3410
=8842
C. Total Market Margin:
i)Market Margin of Commission Agent=Selling price –(Purchased price+Cost incurred)
=117800 –(111600+1116)
= Rs. 5084
ii)Market Margin Of Retailer=Selling price –(Purchased Price+Cost Incurred)
=148800 –(117800+3410)
=Rs.27590
Total Market Margin= Market Margin of Commission agent+ Marker margin of retailer
=5084+27590 = Rs. 32674

2) Commodity Name: Banana

Marketing Channel:

1) Framer/Producer Comission agent Retailer Consumer

In case of marketing of Banana, Farmer sold 530qt. of Banana to Commission agent @Rs.397500 and Retailer sold 530qt.of Banana
to Retailer @Rs.477000 and Retailer sold 530qt. of Banana to consumer @Rs.5,30,000
Marketing Cost:

Sr.No. Particulars Rate/Unit Qty. Ammount(Rs)

Cost Incurred by Farmer:

1 Weighing Cost 150/Vehicle 1 150
Sub Total 150
Cost Incurred by Commission Agent:
1 Loading Cost 200/Labour 4 800
2 Transportation Cost 30 530 15900
3 Unloading Cost 150 4 600
4 Storage & Ripening Cost 18/Q 530 9540
5 Packaging cost 10 530 5300
6 Supply To Retailer 4/Q 530 2120
7 Miscellaneous Charges - 500 500
Sub Total: 34,760
Cost Incurred By Retailer:
1 Hamal Charges 3 530 1590
2 Packaging Cost 5 530 2650
Sub Total: 4240

Calculation:

A. Net Price received by Farmer =Selling price – Cost Incurred By Farmer

=397500 – 150

=Rs.397350

B. Total Marketing Cost=Cost incurred by Farmer +Cost incurred by commission agent+ Cost incurred by retailer.

=150+34760+4240

=Rs.39150
 C. Total Market Margin:
i)Market margin of Commission Agent=Selling price –(Purchased price+Cost incurred)
=477000-(397500+34760)
=Rs.44740
ii)Market margin Of Reatailer=Selling price –(Purchased price+Cost incurred)
=530000-(477000+4240)
=Rs.48760.
Total Market Margin= Market Margin of Commission agent+ Marker margin of retailer
=44740+48760
=Rs.93500

*Price Spread of Jowar:

Sr.No. Particulars Amount(Rs) Producer Share in Consumer

Ruppes(%)
1 Net Price Received by farmer 107284 72.09
2 Total marketing cost 8842 5.94
3 Total Marketing Margin 32674 21.95
4 Price paid by consumer 148800 100

*Price Spread of Banana:

Sr.No. Particulars Amount(Rs) Producer Share in Consumer

Ruppes(%)

1 Net Price Received by farmer 397350 74.97

2 Total marketing cost 39150 7.38
3 Total Marketing Margin 94500 17.64
4 Price paid by consumer 530000 100
 *SWOT ANALYSIS*

1)Strengths of Farmer:
3.Opportunities of Farmer:
1.Avalibality of transportation services.
1.Exporting Perrenial crops like banana.
2.Good knowledge and skill about farming.
2.Increase production with the timely operations.
3.Good soil profile for crops production.
3.Opportunity to establish storage structure.
4.Good family support
5.Basic capital for crop production is available

4)Threats Of Farmer:
2.Weaknesses of Farmer: 1.Less price.
1.Lack of Management.
2.Climatic changes.
2.Unavailability of new tevhnology.
3.Shortage of seeds.
3.High cost of production.
4.Not getting the right price.
4.Unavailabilty of proper capital for investment.
5.Spread of diseases.
5.High transportation Cost.
6.Damage crops due to strong winds.
 Expereince Gained

• This Programme helps to get experience about production of different agricultural crops
• This Programme helps to get practical knowledge.
• It helps to understand different activites peformed on field.
• Got knowledge about different management practices used by farmer to increase production.
• It hepl to gain knowledge about marketing commodity and different marketing channels.
• It also helps to undersatnd problems faced by farmer, weakness of farmer, Strenght of farmer.

Photo Gallery

Host Farmer Banana Sugarcane

 Module-II

Student Project Work (SPW)

 Project Title: A case study on Milk production and Management Practices Of Cows at Khandage Dairy
Farm.

 Name of the Owner: Mr.Avdhut Khushal Khandage

 Name of the Unit: Khandage dairy farm

Objectives Of Selected Enterprises:

 To study Management Practices followed in Dairy Farm.
 To study Economics feasibility of Dairy Farm.
 To study the SWOT Analysis of Dairy Farm.
 To study the various problem faced and to give suggestions to overcome the problems

1
 INTRODUCTION
 India has been the largest milk producing country of the world.
 Agriculture is the backbone of indian economy. About 65% of the indian population is depends on agriculture.
 Dairy farming is a agriculture enterprise for long term production of milk . Dairy farming is a income source for
small ,marginal farmers.
 In India dairy sector is growing fast. Since agriculture is seasonal there is possibility of finding employment through
the year for many persons through dairy farming
 The state of Uttar Pradesh produced the highest amount of milk in India at about 30.5 million metric ton

Present Sceanario Of Dairy Sector:

1. India ranks 1st in the milk production in world

2. The total milk production in world is nearly 906 million metric tonnes in 2020.
3. India Accounts 40.41% of the world production of milk.
4. Per capita availability of milk is around 406 gms per person per day.
 Importance of Dairy Enterprises:
 The dairy sector can play an important role providing jobs for rural communities.
 Dairy production and processing provide employment.
 Dairy has become an important secondary source of income for millions of rural families.
 Dairy business is best supplementary business & Demand of milk is increasing day by day.
 By product of dairy get high income.
 Dairy is provide nutritional value to the human being.
 Dairy products as an important food source providing energy, high quality protein and several key minerals
and vitamins.
World Milk Production:
Sr.No. Country Milk Production
Million tone % Share
1 India 176.27 34.38
2 United states of America 97.76 19.07
3 Pakistan 44.29 8.64
4 China 34.87 6.80
5 Brazil 33.74 6.58

Highest Milk Producing States in India:

Sr. No. Name of State/UT Production (MT)
1 Uttar Pradesh 30,519
2 Rajasthan 23,668
3 Madhya Pradesh 15,911
4 Andhra Pradesh 15,044
5 Gujarat 14,493
6 Punjab 12,599
7 Maharashtra 11,655
8 Haryana 10,726
Source: Basic animal husbandary Statistics
Survey of Selection of Unit:
Sr.No. Owner Name Unit Name No.of Cows Address

1 Mr. Kantaram Takalkar Sarvadnya Dairy Farm 19 A/P Pimparkhed

2 Mr. Avdhut Khandage Khandage Dairy 26 A/P Devgaon

Farm
3 Mr. Amol Dhome Dhome Dairy Farm 20 A/P Pimparkhed

4 Mr. Aditya Bhujbal Krishna Dairy Farm 21 A/P Chandoh

5 Mr. Sagar Bombe Bombe Dairy Farm 15 A/P Pimparkhed

From The Above I am selected Khandage dairy farm

 1 Name of selected unit Khandage Dairy Farm

2 Address of selected unit A/p Devgaon, Tal-Ambegaon,

GENERAL Dist-Pune.
INFORMATION: 3 Name of owner Avdhut Khushal Khandage
4 Type of dairy barn Open Shed Dairy Barn
5 Area coverd by dairy barn 4.5 R
6 Area coverd by fodder production 0.5 Ha
7 Various fodder cultivated by owner Maize and Elephant Grass
8 Parameters of cattle shed ( shading space , drainage gutter, manager).
Owner
a. Shading Space 100×45/ Sq feet
b. Water Tank 2
c. Drainage Gutter 15x10sq Feet
9 Total no of animals 26
a. Milking Cow 15
b. Pregnant Cow 3
c. Dry Cow 5
d. Calf 1
e. Heifer 2
32
11. Concentrate used Wheat Bran(Bhusa), Cotton Seed Cake
12. Breed Of Cow- H.F (Holstein Friesian)
13 Total Milk Production Per Day Rs.250 Lit/Day

14 Manure Production Per Year 36 Trolly

15 Price Of Manure per Trolly 4000/Trolly

16 Labour Requirement 2

17 Wages Of Labour 15000/Month

18 Dry Fodder Jowar Dry Fodder

19 Detail of veterinary

a. Name Of Doctor : Dr. Ghodekar

b. Number of visit : 3 visit/Month

c. Charges : Rs.500/visit

20 Price of milk / liter : Rs.24/lit

21 Capital investement : Rs. 15 Lakh

 Daily Routine:
Sr.No. Activity Time
Morning
1 Work start bringing cow in shed for Milking. 5 AM
2 Give concentrated fodder to animals before milking. 5.30 AM
3 Milking of cows. 6 AM
4 Transporting the Milk 8.30 AM
5 Cleaning of shed 9.30 AM
6 Give water to cows 10.30 AM
7 Give fodder to animals and chopping the fodder. 11 AM
12.30 – 4 PM (Rest the cows)
8 Give Fodder to animals 4 PM
9 Give Water to cows 5 PM
10 Give concentrated Fodder to cows before Milking 6 PM
11 Milking of cows. 7 PM
12 Transporting milk to dairy 8.30 PM
13 Cleaning of shed and milk cans and Work end 9.30 PM
Resource Use Management In Dairy Farm :
a)Site of Dairy Farm : 1 Unit Name Khandage Dairy Farm
2 Address A/P-Devgaon
Tal-Ambegaon
Dist- Pune
3 Location It near to the Devgaon Village.
b) Availability of Land-
Area- 4.5 R
Type of soil- Brown soil
Surface – Clean and leveled
Soil is well Structured so it allowed to good drainage.

c) Water Availability-
Supply of fresh and clean water is available at dairy farm.
Water is supplied from well.
Required water is 30-40 lit/animal/day
d)Capital-
Fixed capital involves shed, machines and equipment.
Variable cost involves payments, rewards, electricity bill, fodder cost, veterinary aids etc.

e) Man Power-
There are 2 workers.
Monthly payment of labour is Rs.7500/labour.

f) Fodder Management-
The green fodder Maize and Elephant Grass.
The concentrate like Cotton seed Cake , Wheat bran ( Bhusa), are purchased.
g) Machinery and Equipment’s-
Sr. no. Particulars Quantity
1 Chaff cutter 1
2 Disel Engine 1
3 Milk Machine 1
4 Sickle 4
5 Buckets 4
6 Milk can 5 (50 Lit)
7 Brooms 2
8 Tub 10
9 Motor pump 1 HP 1
10 Water Tank 1
h) Electricity supply-
The electricity Supply for the dairy is the domestic electricity from M.S.E.B
Electricity Charges for Dairy farm: Rs.1,000/month

i) Veterinary Aids-
The private veterinary doctor visits the dairy farm.
He charges a fee is Rs.350
Doctor visits a Dairy Farm 1 times in a week.
Sr. No. Name of Disease Age at first dose Booster dose Subsequent dose
1 Foot and Mouth Disease (FMD) 4 months and above 1 month after first dose Six monthly

2 Hemorrhagic 6 months and above - Annually in endemic areas.

Septicemia (HS)
5 Theileriosis 3 months of age and above - Once in a lifetime.
Only
required for crossbred and
exotic cattle.
6 Anthrax 4 months and above - Annually in endemic areas.
7 IBR (Infectious 3 months and above 1 month after first dose Six monthly
Bovine Rhinotracheitis) (vaccine presently not
produced in
India)
8 Rabies (Post bite therapy only) Immediately after suspected bite. 4th day 7,14,28 and 90
(optional) days after first
dose.
 Human Resource Management

Planning Acquisition Monitoring Payments Rewards

1. Planning: Planning of labors is done as per the work type.

2. Acquisition: For cutting of sugarcane, collection of buffalo dung, they are hiring male labours on
monthly
wage basis.
3. Monitoring: The monitoring is mainly carried out by the owner of the farm or by the family member
in absences of owner.
4. Payments: For hired human labours monthly wages are given. For Rs.7500/Month.
5. Rewards: For hired labours, on festivals they give cloths and sweets. And some time offered bonus as
a reward.
 Inventory Management
 Raw Material Inventory-
 Work-In-Processing Inventory-
 Finished Product-

Sr.No. Inventory Quantity Price

A Raw Material
1 Dry Fodder 5 Tone
2 Green Fodder 11 Tone
3 Concentrate 35 bags 1000/Bag
B. Work-in-process
1 Milking Cattles 15
2 Heifers 2
3 Pregnant cows 3
4 Labours 2
C Finished Products
1 Milk 250 lit/day
2 FYM 4 trolly 4000/trolly
3 Calf 1
Supply Chain Management :

Procurement Production Distribution

Management Management Management

Raw Material Khandage dairy farm Milk

Dairy
Green Fodder Milk Pirsaheb dairy
(Maize and elephant (250 lit) @Awsari
grass)
Dry Fodder
(Jowar)
Concentrate
(Bhusa ,Pend from
dairy)
Quality Management :

 Health of Cattles
 Milker self-cleanliness
 Cleaning of shed
 Cleaning of Cattles
 Clean milk production
 Cleaning of utensils
 Time between milking is 12 hrs.
 Sanitary & hygienic condition maintained.
 Timely vaccination is done.
 Regular supervision of cattle's is done.
 The equipment's (Buckets & cans) are cleaned properly.
 Feeding concentrate before milking.
 Herd Composition:
Month No. of animal No. of animal Herd
Sold Added Composition
April 1 0 26
May 0 0 26
June 0 2 28
July 1 0 27
August 0 3 30
September 1 0 29
October 2 0 27
November 0 3 30
December 0 0 30
January 1 0 29
February 0 1 30
March 0 0 30
Total 6 9 342
Herd Replacement Cost:

Difference between the Animal Sold & Added = 9 – 6 = 3

Average Herd Size = Herd Composition
12

Average Herd Size = 342/12

= 28.5

= 10.52%

Total Value of Average Herd Size - 23 Cow , 1Calf, 2 Heifer.

1 Cow -Rs.60,000/-, 1 Calf -Rs.10,000/-, 1 Heifer 15000/-.

Cost of Cow’s = Rs. 13,80,000,./-, Cost of Calf = Rs.10,000/-, Cost of Heifer = 30,000/-.

Herd Replacement Cost = 14,20,000X 10.52

100
= Rs.1,49,384/-
% Share of Milking Cows (57.69%)= Rs. 86,179.62/-
 Capital Investment
Total Annual Fixed Cost :
Sr.no Total Annual Fixed Cost Amount % Share of Milking
(Rs.) Cows(Rs.) 57.69%

1 Rental value of land @10% 33,750 19,470.37

2 Depreciation 51,225 29,551.70

3 Interest on Fixed 1,80,684 1,04,236.59

Capital@14%
4 Herd Replacement Cost 1,49,384 86,179.62

Total Fixed Cost 4,15,043 2,39,438.28

Fixed Cost Per Lit . = 415043

90000

= Rs 4.61/-

% Share of Milking Cow(57.69) = 2.65

 Total Annual Variable Cost :
Sr. no Particulars Cost % Share of Milking
(Rs.) Cows(57.69)Rs.

1 Total Fodder Cost 10,13,868 5,84,900.44

2 Labor Cost 1,80,000 1,03,842
3 Veterinary Charges 30,000 17,307
4 Fuel Cost 12,000 6,922.8
5 Other Miscellaneous Cost 15,400 8,884.26
Total Variable Cost 12,51,268 7,21,856.50
Interest Rate on Variable Cost@10% 1,25,126.8 72,185.65

Total Annual Variable Cost 13,76,394.8 7,94,042.16

Variable Cost Per Lit. = 13,76,394.8

90,000
= Rs. 15.29/-
% Share of Milking Cows (54%) = 794042.16
90000
= Rs. 8.82/-
Total Annual Cost Of Production
Total Annual Fixed Cost + Total Annual Variable Cost

= 4,15,043 + 13,76,394.8

= Rs. 17,91,437.8/-

Total Annual Cost Of Production = 17,91,437.8

% Share of Milking Cows (57.69%) =Rs. 10,33,480.46

Cost of Production per liter :- Total Cost of Production

Total Production in Liter

= 17,91,437.8
90,000

Cost of Production per Lit = Rs. 19.90/-

% Share of Milking Cows (56.52%) = Rs.11.48/-.

 Gross Income :
Sr.No Particulars Quantity Rate Amount(Rs.)
1 Income through selling of milk 90,000 24 21,60,000
2 Income through selling of Cow Dung 36 4000 1,44,000
(Manure)
3 Income through selling of Calf() 6 10,000 60,000
Total 23,64,000

 Net Profit = Gross Income – Total Cost per

Annuam
= 23,64,000 – 17,91,437.8
= Rs.5,72,562.2

Net Profit = Rs. 5,72,562.2

Cash Flow Statement :
Sr.No. Year 1st Year 2nd Year 3rd Year 4th Year 5th Year

1
Initial Investment 12,90,600 - - - -

2
Total Fixed Cost 4,15,043 4,15,043 4,15,043 4,15,043 4,15,043

3
Total Variable Cost 13,76,394.8 14,45,214.54 15,17,475.26 15,93,349.02 16,73,016.47

4 30,82,037.8
Total Cost 18,60,257.54 19,32,518.26 20,08,392.02 20,88,059.47

5
Gross Income 23,64,000 24,82,200 26,06,310 27,36,625.5 28,73,456.77

6 -
Net Income 6,21,942.46 6,73,791.74 7,28,233.48 7,85,397.3
7,18,037.8
Net Present Worth (NPW) :
Net Present Worth = Net Income x Discount Factor

Year Cost (Rs.) Gross Income Net Income Discount Factor Net Present
(Rs.) (Rs.) (14%) Worth (Rs.)
1 -
30,82,037.8 23,64,000 0.87719298 -6,29,857.71
7,18,037.8
2 18,60,257.54 24,82,200 6,21,942.46 0.76946753 4,78,564.52
3 19,32,518.26 26,06,310 6,73,791.74 0.67497152 4,54,790.23
4 20,08,392.02 27,36,625.5 7,28,233.48 0.59208028 4,31,172.68
5 20,88,059.47 28,73,456.77 7,85,397.3 0.51936866 4,07,910.74
Total 11,42,580.46

 Interpretation = NPW is positive so project is financially

feasible.
Benefit Cost Ratio (BCR) :
Year Cost (Rs.) Gross Income Discount Factor Present Worth of Present Worth Of
(Rs.) (14%) Cost (Rs.) Gross Return
(Rs.)
1 30,82,037.8 23,64,000 0.87719298 27,03,541.92 20,73,684.20
2 18,60,257.54 24,82,200 0.76946753 14,31,407.77 19,09,972.30
3 19,32,518.26 26,06,310 0.67497152 13,04,394.78 17,59,185.02
4 20,08,392.02 27,36,625.5 0.59208028 11,89,129.30 16,20,301.99
5 20,88,059.47 28,73,456.77 0.51936866 10,84,472.64 14,92,383.39
Total 77,12,946.41 88,55,526.9

BENEFIT COST RATIO = Present Worth of gross return / Present Worth of cost
= 88,55,526.9 / 77,12,946.41
= 1.14
 Interpretation = BCR is grater than one , project is financially
feasible.
Internal Rate Of Return (IRR) :
Year Cost (Rs.) Gross Net Income Discount Net Present Discount ,
Income/Retu (Rs.) Factor Worth (Rs.) Factor
rns (Rs.) (14%) (18%)
1 -
0.84745763 -6,08,506.61
30,82,037.8 23,64,000 0.87719298 -6,29,857.71
7,18,037.8
2 18,60,257.54 24,82,200 6,21,942.46 0.76946753 4,78,564.52 0.71818443 4,46,669.39
3 19,32,518.26 26,06,310 6,73,791.74 0.67497152 4,54,790.23 0.60863087 4,10,090.45
4 20,08,392.02 27,36,625.5 7,28,233.48 0.59208028 4,31,172.68 0.51578888 3,75,614.73
5 20,88,059.47 28,73,456.77 7,85,397.3 0.51936866 4,07,910.74 0.43710922 3,43,304.40
Total 11,42,580.46 9,67,172.36

IRR= Lower Discount Rate + Diff. Between Two discount rate x {NPW at lower discount / Absolute Diff. Between
NPW at Two Discount Rate}
IRR = 14+4×{11,42,580.46/(11,42,580.46-9,67,172.36)}
IRR = 14+4×11,42,580.46/1,75,408.1
IRR = 14+(4×6.51)
IRR = 14 + 26.04
IRR = 40.04
Interpretation : IIR is greater than market interest rate so project is financially feasible.
Profitability Index
Year Cost (Rs.) Gross Income Net Income (Rs.) Discount Factor Net Present
(Rs.) (14%) Worth (Rs.)
1 30,82,037.8 23,64,000 -7,18,037.8 0.87719298 -6,29,857.71
2 18,60,257.54 24,82,200 6,21,942.46 0.76946753 4,78,564.52
3 19,32,518.26 26,06,310 6,73,791.74 0.67497152 4,54,790.23
4 20,08,392.02 27,36,625.5 7,28,233.48 0.59208028 4,31,172.68
5 20,88,059.47 28,73,456.77 7,85,397.3 0.51936866 4,07,910.74
Total 11,42,580.46

Profitability Index = Total NPW of Cash flow / Initial Investment

Profitability Index = 11,42,580.46 / 12,90,600

Profitability Index = 0.88

 Interpretation – Profitability Index is 0.88 which indicates 0.88 times Net Profit over Initial
Investment.
 Payback Period :
Year Cost (Rs.) Gross Income (Rs.) Net Income (Rs.)
1 30,82,037.8 23,64,000 -7,18,037.8
2 18,60,257.54 24,82,200 6,21,942.46
3 19,32,518.26 26,06,310 6,73,791.74
4 20,08,392.02 27,36,625.5 7,28,233.48
5 20,88,059.47 28,73,456.77 7,85,397.3
Total 20,91,327.18

Average Net Income = 20,91,327.18 / 5

= Rs. 4,18,265.43

Payback Period = Initial Investment / Annual Net cash Revenue

= 12,90,600 / 4,18,265.43
= 3.08
= 3.08+1
= 4.08 Years
 Interpretation : After 4 years 0 Months and 8 days Dairy Farm Project will cover the initial investment.
 Break Even Point

V Variable Cost Per Unit = Rs.15.29

Fixed Cost = Rs. 4,15,043

Break Even Point = F / P-V

= 4,15,043 / 24 – 15.29
= 4,15,043 / 8.71
= 47,651.32 Lit.

Break Even Point in Rupee =

= 4,15,043 / 1- (15.29/24)

= 4,15,043/ 0.37

= Rs. 11,21,737.83
A) Liquidity Ratio:
Current Ratio = = 1.71%
Interpretation: Current assets are more than current liabilities by 1.71 times so ,which indicates positives net present
worth of unit.

b) Profitability Ratio -
Net Profit Margin = = = 24.22%
Interpretation:-Profitability ratio of 24.22 % indicates that profit margin of the business unit under study which is
satisfactory for production business.

c) Activity Ratio / Turnover Ratio

Fixed Assets Turnover Ratio =
Net Sale = Gross Income – Net Fixed Assets
Net Fixed Assets = Fixed Assets – Depreciation
= 4,15,043 -51,225
 = 3,63,818
Net Sale = 23,64,000 – 3,63,818
= 20,00,182
Fixed Assets Turn Over Ratio =
= 5.49%
Interpretation- Net Sales are 5.49 times more than Net fixed Assets, therefore it indicates efficient utilization of
fixed assets.

d) Working capital Turnover Ratio

=
=
= 1.45%
Interpretation – Net Sales are 1.45 times more than Working Capital, therefore it indicates efficient
utilization of working capital
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 :-The fresh and organic milk is Produce and It sends to dairy.
2. Price:- Milk Is sold at the dairy as dairy rate 24 Rs/lit. Price depends On FAT and SNF
 Payment Of The Milk Are Release 3 Time In The Month.
3. Place: The milk is Directly Sold to Dairy Unit i.e Pirsaheb Dairy.
4. Promotion: No Promotion Activities are Carried Out by Khandage dairy farm
Marketing Channel:-

Khandage Dairy Farm

Pirsaheb Dairy

Processor

Retailer

Consumer
 SWOT Analysis :
Strengths: Weakness:
1. Owner has good knowledge and experience. 1. Unavailability of milk store house in the farm.
2. High Production and Quality Of milk. 2. Lack of schemes with dairy development department.
3. Regular income to farmer. 3. Poor condition of roads for transportation.
4. The Barn activities is done on time. 4. Fluctuation in milk rate.

Opportunities:- Threats:-
1. Sale milk directly to Consumer. 1. Viral Diseases.
2. To start the packaging unit. 2. Increasing temperature reduces milk production.
3. Dung can used for preparation of vermicompost. 3. Middlemen still control a very large proportion of
milk procurement.

59
Problems & Suggestions :

 Problems :
1. Animal Viral Infection.
2. Insufficient storage to store the fodder.

 Suggestions :

1. To make Good infrastructure and clean , hygienic housing system for better health of animals.
2. Make Separate Room/Shed for storage of Fodder.
 Finding :
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 :

 Dairy farm requires large capital investment in the form of livestock, machinery and buildings,

which will cause large annual fixed costs.

 The NPW is positive hence the Khandage dairy farm project is feasible.

 BCR is greater than 1 so Khandage dairy farm project is financially feasible.

 Payback period for Khandage dairy farm is 4 years.

 IRR is also more than the market interest rate therefore farm project is economically feasible.

 IRR of Khandage dairy farm is 40.04 %

 Experience Gained :
1)About Resource Management : I got Experience that how to supply water and management of fooder.

2)About Supply Chain Management: I got knowledge about how to purchase fodder in minimum price

3) About Quality Management: I got experience when animals and the workers are clean and hygenic
then the quality of milk also increases.

4) About Human Resource Management: I got experience that the dairy farm is totally depends on
labours.

5)About Finacial Management: I got experience that how can use all funds properly to satisfy all
requirements.
 Photo Gallery :

Watering Feeding

Owner

Transportation of Milk Milking Raks

Thank You.