PROJECT REPORT OF A LARGE-SCALE BUFFALO 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 (%)

VIJAY
malkapur
50
8,080,000
6,464,000
1,616,000
5
12

Techno-Economic Parameters
Cost of each Murrah buffalo (Rs.)
Average daily milk yield of each buffalo (lit)
Sale price of milk (Rs./lit)
Irrigated land required for fodder production (acres)
Cost of construction of buffalo 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
(buffaloes are purchased in 2 batches at an interval of 5-6 months)
Year 1
No. of
animals
First Batch
25
Second Batch
25

in milk

Total (days)

7500
4500
12000

Year 2
dry
3000
0
3000

in milk

Year 3
dry

7500
7500
15000

in milk

Year 4
dry

3000
3000
6000

7500
7500
15000

dry
67,200
108,000
168,000
343,200

in milk

Year 5
dry

3000
3000
6000

7500
7500
15000

in milk
210,000
225,000
1,428,000
1,863,000

dry
67,200
108,000
168,000
343,200

in milk
210,000
225,000
1,428,000
1,863,000

Specifications Phy. units

50
sq. ft.
4000
sq. ft.
2000
sq. ft.
500
1 set
1 set
1 set
1 set
50
1 set
acres
10
50

Unit cost
100,000
400
250
200
500,000
125,000
100,000
75,000
500
3,000
500
Total

Total
5,000,000
1,600,000
500,000
100,000
500,000
125,000
100,000
75,000
25,000
30,000
25,000
8,080,000

in milk

3000
3000
6000

7500
7500
15000

dry
67,200
108,000
168,000
343,200

in milk
210,000
225,000
1,428,000
1,863,000

dry
3000
3000
6000

Feed and Fodder

Rate/kg
Green fodder 0.40
Dry fodder 3.00
Concentrates 14.00

100,000
12
35
10.00
400
250
200
0.40
3.00
14.00
1000
1000
4
60,000
8.00

Daily
Requirement
in milk
dry
35.00
28.00
5.00
6.00
6.80
2.00
Total (Rs)

Year 1

Year 2

in milk
dry
in milk
168,000 33,600 210,000
180,000 54,000 225,000
1,142,400 84,000 1,428,000
1,490,400 171,600 1,863,000

Year 3

Year 4

Investment Cost
Cost of animals
Construction of buffalo 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
67,200
108,000
168,000
343,200

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

IV

1,490,400
171,600
50,000
50,000
200,000
420,000
Total 10,462,000

1,863,000
343,200
50,000
50,000
200,000
420,000
2,926,200

1,863,000
343,200
50,000
50,000
200,000
420,000
2,926,200

1,863,000
343,200
50,000
50,000
200,000
420,000
2,926,200

5,040,000
14,016
0
0
0
5,054,016

6,300,000
18,240
0
0
0
6,318,240

6,300,000
18,240
0
0
0
6,318,240

6,300,000
6,300,000
18,240
18,240
0
1,650,000
0
412,500
0
2,500,000
6,318,240 10,880,740

0.91
9,510,909
4,594,560
7,691,432
1.43
0.67
-5,407,984
-3,605,323
61%

0.83
2,418,347
5,221,686

0.75
2,198,497
4,746,987

0.68
1,998,634
4,315,443

0.62
1,816,940 17,943,328
6,756,083 25,634,760

0.44
3,392,040
1,507,573

0.30
3,392,040
1,005,049

0.20
3,392,040
670,033

0.13
7,954,540
1,047,511

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

Years
III

8,080,000

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

II

1,863,000
343,200
50,000
50,000
200,000
420,000
2,926,200

624,844

Repayment Schedule
Year
I
II
III
IV
V
Capital Recovery Factor

Income
5,054,016
6,318,240
6,318,240
6,318,240
6,318,240

Expenses
2,382,000
2,926,200
2,926,200
2,926,200
2,926,200

Gross
Surplus
2,672,016
3,392,040
3,392,040
3,392,040
3,392,040

Equated
Annual
Installment

1,758,208
1,758,208
1,758,208
1,758,208
1,758,208

0.27

Date : 9/6/2014 19:15:30

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.

Net Surplus
913,808
1,633,832
1,633,832
1,633,832
1,633,832