Dairy farm project 2 cows
Project report 2 cows
crossbred cow dairy project, Indigenous cow dairy farm
Dairy farming is a profitable business. It provides an excellent opportunity for self employment
for unemployed youth. It is also an important source of income generation to small/marginal
farmers and agricultural labourers. India is the largest milk producer of the world. The demand
of milk & milk product is increasing rapidly There is immense scope of dairy farming in our
country. The increasing cost of feed ingredients and its seasonal variability can be reduced by
undertaking fodder cultivation.
Government subsidy available for these types of project– Back ended capital subsidy 25% for
general category (33.33% for SC/ST beneficiaries) is available under government of India
schemeDairy Entrepreneurship Development Scheme (DEDS.). Subsidy ceiling is Rs30,000/ for
general category & Rs40.000 for ST/SC category for dairy farm with two animals.
Farmer from Odisha can avail back ended capital subsidy 25% for general category (33.33%
for SC/ST beneficiaries) under government of Odisha scheme PROMOTION OF DAIRY
ENTREPRENEURSHIP (PDE).Subsidy ceiling is Rs25,000/ for general category & Rs33333 for
ST/SC category for dairy farm with two animals for PDE scheme.
Odisha farmer can avail subsidy either under scheme PDE or DEDS.
Avail Bank loan and subsidy– In order to avail bank loan & subsidy under DEDS/PDE the
entrepreneur/farmers are advised to contact local animal husbandry/veterinary officer. Animal
resources development department is the facilitator deportment for above schemes.
Before starting a dairy farm the entrepreneurs/ farmers are advised to undergo training on dairy
farming. They can contact Local Animal Husbandry Department staffs/Veterinary
College/agriculture University etc. for the purpose. They should also visit progressive dairy
farmers and government/ agricultural university dairy farms in the locality. They must check the
following points before starting a dairy farm.
1. Availability of good quality dairy breed cows in nearby livestock market
2. Nearness of the Farm to Veterinary Hospital, Artificial Insemination Center/livestock Aid
Centers, MPCS
3. Marketing facility of milk and milk product in the locality
4.Availability of concentrates ,fodder & medicine in that locality.
This project report is based on following assumption:
1.Freshly calved indigenous dairy breed/ crossbred cows like RedSindhi/ Sahiwal/ Gir/ Rathi/
Crossbred cows in 1st or 2nd lactation will be purchased in two batches of two animals each at
an interval of 5 to 6 months.
2.Availability of 0.5 acre of irrigated land is prerequisite for the project
3.Cost of labour has not been taken into consideration since full time labour is not required for
the small unit. Family labour will be utilized for maintance of the dairy farm.
4.Fodder cultivation considered in 0.5 acre land ,Two crops considered per year.
5.Cow dung produced will be utilized as Manure for fodder cultivation.
6.Cost of rearing calves is not considered as it will be nullified by their sale value
7.In case of death cow new cow will be purchased from insurance claim money
8.The scheme is workable on the above guidelines if run by the dairy farmer on scientific lines.
Housing for cows
Floor –Pucca, smooth strong concrete cemented, impervious to moisture ,and have slope 1 in 60
towards gutter. Plinth should be 2ft. higher than ground.
Walls-3ft. high lengthwise brick wall on sides, End wall should be solid made of bricks.
Roof– 14-16ft. high at the center and 8ft. high 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, or tile.thatched roof can replace asbestos in low cost housing
ITEMS LENGTH IN METER
MANGER 0.6M
STANDING PLACE 1.5M
GUTTER 0.4M
FEEDING PASSAGE 1.2M
MILKING PLACE 1.2M
. Techno economic parameter
Indigenous
Milch
Type of Animal
breed/crossbred
/ CB Jersey Cow
No. of Animals 2
Cost of Animal (Rs./animal) 30000/cow
Average Milk Yield (litre/day) 10
Floor space (sqft) per adult animal 40
Floor space (sqft) per calf 20
Cost of construction per sqft (Rs.) 250
Cost of equipment per animal (Rs.) 1000
Cost of fodder cultivation (Rs./acre/season) 5000
Insurance premium (% per annum) 5
Veterinary aid/animal/ year (Rs.) 1000
Cost of concentrate feed (Rs./kg) 16
Cost of dry fodder (Rs./kg) 1
Rate of interest (%) 12
Repayment period (years) 6
Selling price of milk (Rs./kg) 27
Sale price of gunny bags (Rs. per bag) 10
Lactation days 280
Dry days 150
DAILY FEEDING AND COST CHART FOR DAIRY COWS
During lactation
COST/KG During dry period
FEEDING period
Item
STUFF Quantity Quantity Cost
Rs. Cost (Rs.)
(kg) (kg) (Rs.)
Concentrate
1 16 4.5 72 1.5 24
feed
Home
2 Green fodder 1 20 Home grown 15
grown
3 Dry fodder 4 4 11 5 10
4 Total 28.5 83 21.5 34
Lactation chart/Dry chart
Sr.No Particulars Years
I II III IV V Vi
i) Lactation Days
a) First batch 250 280 250 210 210 250
b) Second batch 180 210 210 210 210 210
Total 430 490 460 420 420 460
ii) Dry Days
a) First batch 110 80 110 150 150 110
b) Second batch – 150 150 150 150 150
Total 110 230 260 300 300 260
CASH FLOW ANALYSIS.
Item Particulars Project period
1 2 3 4 5 6
dairy farm
Feeding during lactation
period vide yearly
project
35690 40670 38180 34860 34860 38180
lactation days and feed
cost as per chart
report 2
Feeding during dry
period vide dry days and
cows page
3740 7820 8840 10200 10200 8840
feed cost as per feed
chart enclosed
2
Medicine vaccine
Economics of dairy2000farming2000
with 2 indigenous
2000 dairy breed/
2000 2000 crossbred/cows
2000
veterinary aid
Project cost Cost. In Rs.
Insurance @5% of
3000 3000 3000 3000 3000 3000
animal 1cost /year
Capital cost
2 Cow shed for 2 cows 40sq.ft/cow @250/sqft 20000
Cost of fodder
3
cultivation Calf pen for 210000 10000
calves 20 10000
sq.ft./calf 10000 10000 10000
@250/sq.ft. 10000
Cost of 2 CB cows with minimum average 10 liter milk
other miscellaneous
1000 1000 1000 1000 1000 1000
expenditure yield /day @30000/cow (as per govt. norm @ 3000/ liter of 60000
4
milk yield/cow)
Total 55430 64490 63020 61060 61060 63020
5 Cost of transportation @2500/cow 2000
INCOME
Sale of6milkCost of one chaff cutter hand operated 10000
7 Cost
@Rs.27/liter duringof dairy appliances @ 1000/cow 2000
Total
lactation days with 116100 132300 124200 113400 113400 124200 104000
averageRecurring
milk yieldcost
/10 to be capitalized
liter/day Cost of feed for first batch of one cows for one month as per
a 2490
Sale of gunnyfeed chart 420
bags 460 450 420 420 440
ManurebwillCost of insurance 2 animals @5% of animal cost
be utilized 3000
in own cfarmCost of fodder cultivation in 0.5 acres of land for first session 5000
Value ofd closing
Cost stock
of medicine
of vaccine, electricity for the first cow 1000
2cows(Depreciation
e on
Contingency 24000
4510
animal fcost @10%/year)
Total recurring expenditure 16000
Value ofg building
TOTAL PROJECT COST 120000
(Depreciation
h on
Margin money 10% of project cost 12000
12000
building@10%/year)
i Bank loan 90% of project cost 108000
Value of equipment
Calculation of BCR & IRR
1 2 3 4 51200 6
(Depreciation on
Capital Costs
equipment @15%/year) 104000
Recurring
Total income 116520 132760 124650
55430 64490 63020 113820 61060 113820 61060
161840 63020
Cost
Gross profit 61090 68270 61630 52760 52760 98820
Total Costs 159430 64490 63020 61060 61060 63020
Benefit 116520 132760 124650 113820 113820 161840
Net Benefit -42910 68270 61630 52760 52760 98820
Sl no Financial indicators Estimated value Preferred value
1. PW costs @ 15%DF 321349.31
2. PW benifits @ 15%DF 475300.28
3. Net Present Worth (NPW 153950.97 Should be+ve
4. Benefit Cost Ratio(BCR) 1.479:1 >1
5. Internal Rate of return (IRR) 47.65 >15%
6. Debt Service Coverage Ratio 2.45 >1.5
Bank loan 108000 grace period 6 months Loan amount at the end of grace period
=108000+6480=114480
S.No Monthly Installment Interest Principal Balance
0 114480
1 2238 1145 1093 113387
2 2238 1134 1104 112282
3 2238 1123 1115 111167
4 2238 1112 1126 110041
5 2238 1100 1138 108903
6 2238 1089 1149 107754
7 2238 1078 1161 106593
8 2238 1066 1172 105421
9 2238 1054 1184 104237
10 2238 1042 1196 103042
11 2238 1030 1208 101834
12 2238 1018 1220 100614
13 2238 1006 1232 99382
14 2238 994 1244 98138
15 2238 981 1257 96881
16 2238 969 1269 95612
17 2238 956 1282 94330
18 2238 943 1295 93035
19 2238 930 1308 91727
20 2238 917 1321 90406
21 2238 904 1334 89072
22 2238 891 1347 87725
23 2238 877 1361 86364
24 2238 864 1374 84990
25 2238 850 1388 83602
26 2238 836 1402 82199
27 2238 822 1416 80783
28 2238 808 1430 79353
29 2238 794 1445 77908
30 2238 779 1459 76449
31 2238 764 1474 74976
32 2238 750 1488 73488
33 2238 735 1503 71984
34 2238 720 1518 70466
35 2238 705 1533 68933
36 2238 689 1549 67384
37 2238 674 1564 65820
38 2238 658 1580 64240
39 2238 642 1596 62644
40 2238 626 1612 61032
41 2238 610 1628 59404
42 2238 594 1644 57760
43 2238 578 1661 56100
44 2238 561 1677 54423
45 2238 544 1694 52729
46 2238 527 1711 51018
47 2238 510 1728 49290
48 2238 493 1745 47545
49 2238 475 1763 45782
50 2238 458 1780 44002
51 2238 440 1798 42204
52 2238 422 1816 40388
53 2238 404 1834 38554
54 2238 386 1853 36701
55 2238 367 1871 34830
56 2238 348 1890 32940
57 2238 329 1909 31031
58 2238 310 1928 29104
59 2238 291 1947 27157
60 2238 272 1967 25190
61 2238 252 1986 23204
62 2238 232 2006 21198
63 2238 212 2026 19172
64 2238 192 2046 17125
65 2238 171 2067 15058
66 2238 151 2088 12971
67 2238 130 2108 10862
68 2238 109 2129 8733
69 2238 87 2151 6582
70 2238 66 2172 4410
71 2238 44 2194 2216
72 2238 22 2216 0
