PROJECT REPORT OF A SMALL-SCALE CROSSBRED COW DAIRY FARM

PREPARED BY
Dr. Vivek M. Patil
Assistant Professor
Dept. of Livestock Production Management, Veterinary College, Bidar
Karnataka Veterinary, Animal & Fisheries Sciences University
http://sites.google.com/site/viveklpm/

A Overview
Name of the Proprietor Deepak Gajare
Address Kalyan
Unit size 20
Project Cost (Rs.) 888,000
Bank Loan (Rs.) 0
Margin Money (Rs.) 0
Repayment period (years) 0
Loan rate of interest (%) 0

B Techno-Economic Parameters
Cost of each cow (Rs.) 27,000
Average daily milk yield of each cow (lit) 8
Sale price of milk (Rs./lit) 33
Irrigated land required for fodder production (acres) 4.00
Covered area required for each animal under loose
80
housing including storage area (sq.ft.)
Cost of construction of livestock shed and store room (Rs/sq.ft.) 200
Cost of production/purchase of green fodder (Rs/kg) 0.20
Cost of production/purchase of dry fodder (Rs/kg) 2.00
Cost of concentrate feed (Rs/kg) 13.00
Cost of veterinary aid per animal per year (Rs.) 500
Cost of electricity and water per animal per year (Rs.) 200
Rate of livestock insurance premium (%) 4
Annual wages of each farm labourer (Rs.) 42,000
Sale price of empty livestock feed gunny bags (Rs.) 8.00
Expenditure on rearing of calves will be offset by the income
realized from their sale.
Heifers will be retained on the farm as replacement stock.
Farmyard manure shall be used for fertilizing the fodder plots.

C Lactation Chart
(cows are purchased in 2 batches at an interval of 5-6 months)
Year 1 Year 2 Year 3 Year 4 Year 5
No. of
in milk dry in milk dry in milk dry in milk dry in milk dry
animals
First Batch 10 3000 650 3000 650 3000 650 3000 650 3000 650
Second Batch 10 1800 0 3000 650 3000 650 3000 650 3000 650
Total (days) 4800 650 6000 1300 6000 1300 6000 1300 6000 1300

D Feed and Fodder Daily Requirement Year 1 Year 2 Year 3 Year 4 Year 5
Rate/kg in milk dry in milk dry in milk dry in milk dry in milk dry in milk dry
Green fodder 0.20 25.00 20.00 24,000 2,600 30,000 5,200 30,000 5,200 30,000 5,200 30,000 5,200
Dry fodder 2.00 4.50 6.50 43,200 8,450 54,000 16,900 54,000 16,900 54,000 16,900 54,000 16,900
Concentrates 13.00 3.67 1.00 228,800 8,450 286,000 16,900 286,000 16,900 286,000 16,900 286,000 16,900
Total (Rs) 296,000 19,500 370,000 39,000 370,000 39,000 370,000 39,000 370,000 39,000

E Investment Cost
SpecificationsPhy. units Unit cost Total
Cost of animals 20 27000 540000
Construction of cow shed and storage area sq. ft. 1600 200 320000
Equipments (chains, ropes, spades, baskets, milk
20 500 10000
pails, manual chaff cutter etc.)
Initial fodder cultivation cost acres 4 3000 12000
Misc. expenses 20 300 6000
Total 888,000

F Cash Flow Analysis Years

I II III IV V
1 Costs
a) Capital cost 888,000
b) Recurring cost
Feeding during lactation period 296,000 370,000 370,000 370,000 370,000
Feeding during dry period 19,500 39,000 39,000 39,000 39,000
Veterinary aid 10,000 10,000 10,000 10,000 10,000
Cost of electricity & water 4,000 4,000 4,000 4,000 4,000
Insurance 21,600 21,600 21,600 21,600 21,600
Labour wages 168,000 168,000 168,000 168,000 168,000
Total 1,407,100 612,600 612,600 612,600 612,600

2 Benefits
Sale of milk 1,267,200 1,584,000 1,584,000 1,584,000 1,584,000
Sale of gunny bags 2,920 3,728 3,728 3,728 3,728
Depreciated value of buildings 0 0 0 0 240,000
Depreciated value of equipments 0 0 0 0 5,000
Closing stock value 0 0 0 0 270,000
Total 1,270,120 1,587,728 1,587,728 1,587,728 2,102,728

3 DF @ 10% 0.91 0.83 0.75 0.68 0.62

4 Discounted Costs @ 10% 1,279,182 506,281 460,255 418,414 380,376 3,044,509
5 Discounted Benefits @ 10% 1,154,655 1,312,172 1,192,884 1,084,440 1,305,629 6,049,778
6 NPW @ 10% 3,005,270
 7 BCR @ 10% 1.99
8 DF @ 50% 0.67 0.44 0.30 0.20 0.13
9 Net Benefits -136,980 975,128 975,128 975,128 1,490,128
10 Discounted Net Benefits @ 50% -91,320 433,390 288,927 192,618 196,231 1,019,846
11 IRR > 50%
712% 442%

G Repayment Schedule
Gross Equated Net
Year Income Expenses Annual
Surplus Installment Surplus
I 1,270,120 519,100 751,020 0 751,020
II 1,587,728 612,600 975,128 0 975,128
III 1,587,728 612,600 975,128 0 975,128
IV 1,587,728 612,600 975,128 0 975,128
V 1,587,728 612,600 975,128 0 975,128

Capital Recovery Factor 0.00

Note :
Data in highlighted cells are outside the parameters of this sheet. Please modify and re-enter the same in the Form.
Disclaimer :
The data provided in the Project Report is for reference purposes and uses standard assumptions. For customized Project Reports please contact the author or your
nearest Veterinary Doctor.