PROJECT REPORT OF A LARGE-SCALE CROSSBRED COW DAIRY FARM

PREPARED BY
Dr. Vivek M. Patil
Associate Professor & Head
Livestock Research & Information Centre (Deoni), Bidar
Karnataka Veterinary, Animal & Fisheries Sciences University
http://sites.google.com/site/viveklpm/

A Overview
Name of the Proprietor VINODKUMAR JAGDALE
Address Pune
Unit size 30
Project Cost (Rs.) 4,290,000
Bank Loan (Rs.) 3,217,500
Margin Money (Rs.) 1,072,500
Repayment period (years) 5
Loan rate of interest (%) 12

B Techno-Economic Parameters
Cost of each cow (Rs.) 80,000
Average daily milk yield of each cow (lit) 20
Sale price of milk (Rs./lit) 27
Irrigated land required for fodder production (acres) 6.00
Cost of construction of cow sheds (Rs/sq.ft.) 400
Cost of construction of young stock sheds (Rs/sq.ft.) 250
Cost of construction of store rooms (Rs/sq.ft.) 200
Cost of production/purchase of green fodder (Rs/kg) 0.50
Cost of production/purchase of dry fodder (Rs/kg) 4.00
Cost of concentrate feed (Rs/kg) 18.00
Cost of veterinary aid per animal per year (Rs.) 1000
Cost of electricity and water per animal per year (Rs.) 1000
Rate of livestock insurance premium (%) 5
Annual wages of each farm labourer (Rs.) 120,000
Sale price of empty livestock feed gunny bags (Rs.) 10.00
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 15 4500 975 4500 975 4500 975 4500 975 4500 975
Second Batch 15 2700 0 4500 975 4500 975 4500 975 4500 975
Total (days) 7200 975 9000 1950 9000 1950 9000 1950 9000 1950

D Feed and Fodder

Daily
Year 1 Year 2 Year 3 Year 4 Year 5
Requirement
Rate/kg in milk dry in milk dry in milk dry in milk dry in milk dry in milk dry
Green fodder 0.50 38.00 40.00 136,800 19,500 171,000 39,000 171,000 39,000 171,000 39,000 171,000 39,000
Dry fodder 4.00 3.00 4.00 86,400 15,600 108,000 31,200 108,000 31,200 108,000 31,200 108,000 31,200
Concentrates 18.00 8.67 2.00 1,123,200 35,100 1,404,000 70,200 1,404,000 70,200 1,404,000 70,200 1,404,000 70,200
Total (Rs) 1,346,400 70,200 1,683,000 140,400 1,683,000 140,400 1,683,000 140,400 1,683,000 140,400

E Investment Cost
SpecificationsPhy. units Unit cost Total
Cost of animals 30 80,000 2,400,000
Construction of cow shed sq. ft. 2400 400 960,000
Construction of young stock sheds sq. ft. 1200 250 300,000
Construction of stores/misc rooms sq. ft. 300 200 60,000
Cost of milking equipment 1 set 300,000 300,000
Cost of liquid milk storage equipment 1 set 75,000 75,000
Cost of fodder cutting equipment 1 set 60,000 60,000
Cost of standby power supply 1 set 45,000 45,000
Cost of misc. equipment 1 set 30 1,000 30,000
Initial fodder cultivation cost acres 6 5,000 30,000
Misc. expenses 30 1,000 30,000
Total 4,290,000

F Cash Flow Analysis Years

 I II III IV V
1 Costs
a) Capital cost 4,290,000
b) Recurring cost
Feeding during lactation period 1,346,400 1,683,000 1,683,000 1,683,000 1,683,000
Feeding during dry period 70,200 140,400 140,400 140,400 140,400
Veterinary aid 30,000 30,000 30,000 30,000 30,000
Cost of electricity & water 30,000 30,000 30,000 30,000 30,000
Insurance 120,000 120,000 120,000 120,000 120,000
Labour wages 480,000 480,000 480,000 480,000 480,000
Total 6,366,600 2,483,400 2,483,400 2,483,400 2,483,400

2 Benefits
Sale of milk 3,888,000 4,860,000 4,860,000 4,860,000 4,860,000
Sale of gunny bags 12,870 16,380 16,380 16,380 16,380
Depreciated value of buildings 0 0 0 0 990,000
Depreciated value of equipments 0 0 0 0 255,000
Closing stock value 0 0 0 0 1,200,000
Total 3,900,870 4,876,380 4,876,380 4,876,380 7,321,380

3 DF @ 15% 0.87 0.76 0.66 0.57 0.50

4 Discounted Costs @ 15% 5,536,174 1,877,807 1,632,876 1,419,892 1,234,689 11,701,438
5 Discounted Benefits @ 15% 3,392,061 3,687,244 3,206,299 2,788,086 3,640,020 16,713,710
6 NPW @ 15% 5,012,272
7 BCR @ 15% 1.43
8 DF @ 50% 0.67 0.44 0.30 0.20 0.13
9 Net Benefits -2,465,730 2,392,980 2,392,980 2,392,980 4,837,980
10 Discounted Net Benefits @ 50% -1,643,820 1,063,547 709,031 472,687 637,100 1,238,545
11 IRR 97%

G Repayment Schedule
Equated
Gross
Year Income Expenses Annual Net Surplus
Surplus Installment
I 3,900,870 2,076,600 1,824,270 875,160 949,110
II 4,876,380 2,483,400 2,392,980 875,160 1,517,820
III 4,876,380 2,483,400 2,392,980 875,160 1,517,820
IV 4,876,380 2,483,400 2,392,980 875,160 1,517,820
V 4,876,380 2,483,400 2,392,980 875,160 1,517,820

Capital Recovery Factor 0.27

Date : 1/1/2018 15:56:17

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 at dr.vivekmpatil@gmail.com or your
nearest Veterinarian.