PROJECT REPORT OF A LARGE-SCALE CROSSBRED COW DAIRY FARM

PREPARED BY

Dr. Vivek M. Patil

Assistant Professor
Department of Livestock Production Management, Veterinary College, Bidar
Karnataka Veterinary, Animal & Fisheries Sciences University
http://sites.google.com/site/viveklpm/

Overview
Name of the Proprietor
Address
Unit size
Project Cost (Rs.)
Bank Loan (Rs.)
Margin Money (Rs.)
Repayment period (years)
Loan rate of interest (%)

Shaik Jilan
kadiri
80
8,128,000
0
0
3
0

Techno-Economic Parameters
Cost of each cow (Rs.)
Average daily milk yield of each cow (lit)
Sale price of milk (Rs./lit)
Irrigated land required for fodder production (acres)
Cost of construction of cow sheds (Rs/sq.ft.)
Cost of construction of young stock sheds (Rs/sq.ft.)
Cost of construction of store rooms (Rs/sq.ft.)
Cost of production/purchase of green fodder (Rs/kg)
Cost of production/purchase of dry fodder (Rs/kg)
Cost of concentrate feed (Rs/kg)
Cost of veterinary aid per animal per year (Rs.)
Cost of electricity and water per animal per year (Rs.)
Rate of livestock insurance premium (%)
Annual wages of each farm labourer (Rs.)
Sale price of empty livestock feed gunny bags (Rs.)
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.

Lactation Chart
(cows are purchased in 2 batches at an interval of 5-6 months)
Year 1
No. of
animals
First Batch
40
Second Batch
40

in milk

Total (days)

40,000
15
40
16.00
400
250
200
0.40
3.00
14.00
1000
1000
4
20,000
8.00

12000
7200
19200

Year 2
dry
2600
0
2600

in milk
12000
12000
24000

in milk

Year 4
dry

2600
2600
5200

12000
12000
24000

dry
62,400
117,000
72,800
252,200

in milk

Year 5
dry

2600
2600
5200

12000
12000
24000

in milk
336,000
324,000
2,016,000
2,676,000

dry
62,400
117,000
72,800
252,200

in milk
336,000
324,000
2,016,000
2,676,000

Specifications Phy. units

80
sq. ft.
6400
sq. ft.
3200
sq. ft.
800
1 set
1 set
1 set
1 set
80
1 set
acres
16
80

Unit cost
40,000
400
250
200
800,000
200,000
160,000
120,000
500
3,000
500
Total

Total
3,200,000
2,560,000
800,000
160,000
800,000
200,000
160,000
120,000
40,000
48,000
40,000
8,128,000

in milk

2600
2600
5200

12000
12000
24000

dry
62,400
117,000
72,800
252,200

in milk
336,000
324,000
2,016,000
2,676,000

dry
2600
2600
5200

Feed and Fodder

Daily
Year 1
Year 2
Requirement
in milk
dry
in milk
Rate/kg in milk
dry
Green fodder 0.40
35.00
30.00
268,800 31,200
336,000
Dry fodder 3.00
4.50
7.50
259,200 58,500
324,000
Concentrates 14.00
6.00
1.00
1,612,800 36,400 2,016,000
Total (Rs) 2,140,800 126,100 2,676,000

Year 3
dry

Year 3

Year 4

Investment Cost
Cost of animals
Construction of cow shed
Construction of young stock sheds
Construction of stores/misc rooms
Cost of milking equipment
Cost of liquid milk storage equipment
Cost of fodder cutting equipment
Cost of standby power supply
Cost of misc. equipment
Initial fodder cultivation cost
Misc. expenses

Year 5
dry
62,400
117,000
72,800
252,200

Cash Flow Analysis

I
1 Costs
a) Capital cost
b) Recurring cost
Feeding during lactation period
Feeding during dry period
Veterinary aid
Cost of electricity & water
Insurance
Labour wages

2 Benefits
Sale of milk
Sale of gunny bags
Depreciated value of buildings
Depreciated value of equipments
Closing stock value

3
4
5
6
7
8
9
10
11

DF @ 10%
Discounted Costs @ 10%
Discounted Benefits @ 10%
NPW @ 10%
BCR @ 10%
DF @ 50%
Net Benefits
Discounted Net Benefits @ 50%
IRR

II

Years
III

IV

8,128,000
2,140,800
126,100
80,000
80,000
128,000
200,000
Total 10,882,900

2,676,000
252,200
80,000
80,000
128,000
200,000
3,416,200

2,676,000
252,200
80,000
80,000
128,000
200,000
3,416,200

2,676,000
252,200
80,000
80,000
128,000
200,000
3,416,200

2,676,000
252,200
80,000
80,000
128,000
200,000
3,416,200

11,520,000 14,400,000 14,400,000 14,400,000 14,400,000

18,848
23,872
23,872
23,872
23,872
0
0
0
0
2,640,000
0
0
0
0
660,000
0
0
0
0
1,600,000
Total 11,538,848 14,423,872 14,423,872 14,423,872 19,323,872
0.91
0.83
0.75
0.68
0.62
9,893,545
2,823,306
2,566,642
2,333,311
2,121,191 19,737,995
10,489,862 11,920,555 10,836,869
9,851,699 11,998,604 55,097,589
35,359,594
2.79
0.67
0.44
0.30
0.20
0.13
655,948 11,007,672 11,007,672 11,007,672 15,907,672
437,299
4,892,299
3,261,532
2,174,355
2,094,837 12,860,322
#NUM!

Repayment Schedule

Capital Recovery Factor

Year

Income

I
II
III
IV
V

11,538,848
14,423,872
14,423,872
14,423,872
14,423,872

Expenses
2,754,900
3,416,200
3,416,200
3,416,200
3,416,200

Gross
Surplus
8,783,948
11,007,672
11,007,672
11,007,672
11,007,672

Equated
Annual
Installment

Net Surplus
0
0
0
0
0

0.00

Date : 11/26/2013 10:36:19

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 Veterinarian.

8,783,948
11,007,672
11,007,672
11,007,672
11,007,672