22

SECTION 22
Project Proposal on Dairy Farm
1. Background
1.1 Name of farmer
Name:Municipality/Village: Ward No.:District: Contact No.:E-mail:
1.2 Scale of operation
5 Jersey Cross-Bred Cows
1.3 Land
Dry land:Wet land:
1.4 Road access
Farm road passes along the farm. The ................... highway is at a distance ofabout ................... km/meters
(Maximum).
1.5 Water
Source: Pipe/well/Tap etc.
1.6 Market perspective
Local market price of milk is Rs. ................... /- per liter, butter ................... /- perkg and cheese ................... per
kg.
1.7 Funding
The project proposal is developed for seeking nancial support from commercial
banks. The project is an 8 year project. In 8 years the loan amount along with
interest at 4% shall be liquidated. It is proposed to repay the loan on xed
straight line mode and pay Rs. 1,00,000 (one lakh) annually, until the loan is fullyliquidated.

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By nature dairy enterprise is front end capital intensive requiring high initialcapital investment. The turnover
period is long as it has long gestation period andthe risk of disease outbreak is high.
This project is af rmed to be viable only with Commercial Bank (CB) support
lending credit at 4% which otherwise not viable if it has to seek loan at commercialinterest rates of 13%.
2. Objectives
2.1 Generate income from sale of milk and milk products, and live animals to supportfamily livelihood.
2.2 To have pro table alternative employment option for children and promote micro
dairy farming among fellow farmers and rural youths.2.3 To generate Bio-gas and have sustainable supply of
energy for cooking such that
rewood collection from forest is no longer necessary.
2.4 To promote
organic farming among fellow farmers. The plentiful manure produced shall improve the productivity of other crops a
ndenable to practice organic farming.
3. SWOT analysis
Strong policy support of the Government extended through DLS for Dairy projects
is primary source of motivation. The Government has been providing credit at lowest possible interest rate of
4%. The demand of milk and milk products has always been highand ever increasing. The market is
readily available, the price is high and entrepreneurialskills is adequate.Besides, the adequate family labour,
land to grow pasture, standing fodder tree in the farm,crop residues to feed the cows, farm road passing through
and nearness to the highway arethe strengths of this enterprise.The initial front end capital investment is high.
The shelf of milk is low and the enterprisehas long gestation period. These are the strong weaknesses of
the enterprises, which deermost entrepreneurs.Cheap import from India and the possibility of disease outbreaks
and death of the cows, non-availability and high cost of replacement stocks are the threat to the enterprise.
Suddenchange in the policy support is also a potent threat.
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SWOT
analysisS t r e n g
t h W e a k n
e s s
•
Financial support of CB at 4% interest.
•
Availability of land, labour, fodder,crop residues and water
•
High demand and good price for milkand milk products
•
Good level of entrepreneurial skills
•
High initial capital investment
•
Long production/turnover period
•
Short shelf life of milk
•
Require large area of land
O p p o r t u n i
t i e s T h r e a
t s
•
Strong government policy support
•
High demand and ready market
•
Good scope for product diversi cation
•
Expansion of enterprise creating jobsat home.
•
Socially acceptable enterprise
•
Diseases outbreaks
•
Cheap import from India
•
Sudden change in policy support.
•
Replacement stock not readilyavailable and the cost is high.Keeping in view the above considerations, dairy
enterprise require high level of animalhusbandry and management skills.
4. PEST analysis
The Political, Economical, Social and Technical (PEST) analysis af rms high demand
of milk and milk products, availability of the technology available, there is strong policysupport of the
Government and it is socially acceptable enterprise.
P a r a m e t e r s I m p l i c a t i o n f o r o r g a
n i z a t i o n / b u s i n e s s Political
National policiesImprove rural livelihood and well beingPoverty reductionJob creationImport substitution of
dairy products
Economic
D e m a n d
H i g h S
u p p l y
L o w M a r k
e t p r i c e s G o o
d M a r k e t t r e n d I
n c r e a s i n g C a p i t a l i n v e s t m e n
t R e q u i r e s h i g h i n i t i a l c a p i t a l i n v e s t m e n t c o
s t
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Social
S o c i a l s t i g m a S o c i a l l y j u s t a s i t d
o e s n o t i n v o l v e s l a u g h t e r i n g
Technological
T e c h n o l o g y A v a
i l a b l e E q u i p m e
n t s A v a i l a b l e E n
t r e p r e n e u r i a l s k i l l A d e q u a t e Dair
y enterprise is capital intensive. It is expensive to start and it takes long turn over timeto generate income and
pay back the loan for establishment.Dairy enterprise deals with live animals vulnerable to disease outbreak and
the riskof animals being succumbed to diseases is high. Because it requires land for fodder production, the
scope of expansion is limited. Also the marketable products; the milk andmilk products are highly perishable
and have short shelf life.However, with the strong government policy support, high level of entrepreneurial
skillsand commitment of the entrepreneurs shall take care of all the weakness and threats of thisenterprise.
5. Technical Plan
5.1 Structure and Equipment
•
Structures
The structures will
include:1. Main shed (26 ft x 16.5 ft)2. Dung peat (20 ft L x 5ft B x 4ft H)3. Feed store (8ft x 6 ft)4. Calf Pan (6
ft x 5 ft)5. Water Tank (1000 liter tank and stand)6. Biogas plant (Standard size)7. Fencing (30 ft x 30 ft wire mesh fe
ncing)The sketch map of the structure is provided in Figure -1.Total wall height of main shed shall be 12 ft. At
8 ft height, a wooden ceiling will bemade. The 4 ft tall ceiling space will be used for keeping silage and hay.
The total wallheight for feed store (8 ft x 6 ft) and calf shed (5 ft x 4 ft) shall be only 8 ft. The dung peat will be
made of stone concrete masonry. The urine will be collected in urine pit. The
Biogas plant will be built under guidance of the District Livestock Service Of ce (DLSO).
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8 ftFEEDING PASSAGE6 ft2.5 ft1000 LWaterTank2 ft5 ft4 ft1 ftStore2.5 ftApproach Path(2 ft W)Bio-gasPlantDung
Pit (20 ft L x 5 ft B x 4 ft H)PASSAGEDRAINSTANDINGSPACEFEEDINGMANGER Calf shed8.5 ft x 6 ft
Figure 1 - Sketch map of cow shed for 5 cows
•
Equipment
The following necessarily required dairy equipments shall be purchased:1. Chaff cutter 1 no.2.
Milk Cans (5, 10, 20 and 40 lit. cap.) 1 set4. Cream Separator cum Butter Churner 1 no.5. Deep Freezer (65-
125 liter) 1 no.
5.2 Parent stock and Herd dynamic
The Jersey cross bred cows having up to 75 % exotic blood inheritance giving 16L milk/day, preferably in 1
st
to 2
nd
lactations shall be procured. Three in milking and two dry pregnant cows (70:30 ratios) shall be procured
to ensure continuous production of milkyear round.The female progeny born will serve as the replacement stock
to replace aging and/or low performing cows. The male progeny born will be reared for 15-18 months and sold
off.
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P a r a m e t e r s % Y e a r
1 Y e a r 2 Y e a r 3 Y e a
r 4 Y e a r 5
T o t a l
A d u l
t U n i
t 5 5 5 6
6 A d u l t
m o r t a l i t
y 0 0 . 0 0 . 0
0 . 0 0 0 . 0
C u l
l i n
g - -
- -
1 1
C l o s i
n g B a
l a n c e
5 5 5 5 5
C a l
v i n
g 7 5
4 4 4
4 4 0 -
1 y r .
m o r t
a l i t y
5 0 0 0 0
0 1 t o
3 y r .
m o r t a l
i t y 0 0 0
0 0 0 F e
m a l e
c a l
f 5 0 2
2 2 2 2
M a l
e c
a l f
5 0 2
2 2 2
2
5.3 Feeding5.3.1 Dry matter requirement
The Dry Matter (DM) requirement will be met with a combination of concentrated feedand the green fodder
from pastures, fodder trees and forest, crop residues, silage and hay.
•
A cow on an average weighing 300 kg live body weight will be considered as oneAdult Unit (1 AU).
•
In a day, DM equivalent to 2.5% live weight of the cow shall be fed.
•
To 1 AU weighing 300 kg, 7.5 kg DM shall be fed in a day.
•
100 kg green fodder in growth stage shall be considered equivalent to 20 kg DM
and in owering or later stage shall be considered equivalent to 25 kg.
•
About 80 % of DM requirement will be met with green fodder (50 %), silage(20%) and hay/straw (10%). The
balance 20% will be met from concentrate.
5.3.2 Fodder production
Pasture shall be established and fodder trees shall be planted in own registered
land. Hybrid Napier and Guinea grass among tall grasses and Desmodium and Setaria among shortgrasses shall
be grown. Among fodder trees fast growing local species shall be planted. Tothe extent possible 0.5 acre of
land/animal will be allocated for fodder production.Hay making and fodder enrichment such as ensiling silage,
feed blocking will be done. Theexcess green fodder during summer shall be converted into hay or silage and
stocked forlean season.The silage making in plastic-bag will be done. It has comparative advantage over silo-
pit,for small scale farming (micro-farm). It involves less cost, less labor intensive and moreconvenient
technique.
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A minimum of 4 MT of silage shall be conserved which will be adequate to feed 5 cows @6kg
silage/animal/day for a period of four months. The fodder grasses will be grown in dryland and fodder trees of
recommended and/or local species will be planted in and aroundfarm boundaries including wetland boundaries.
5.3.3 Feed concentrates
Cows will be fed with concentrates following the recommended feeding regimes
recommendedbytheDLSO.Speci crationincludingcalfstarter,maintenancerequirement,
gestation and production rations shall be fed. In case the concentrates are either tooexpensive or inconvenience
to get, a home-made general ration of following combinationin 100 kg shall be
made:1. Crushed maize 42 kg2. Wheat/ Rice bran (Dhuto) 35 kg3. Oil Cakes (Pina) 20 kg4. Mineral mixture 2
kg5. Salt 1 kg Total 100 kgAnything additional of extra to needed to be added shall be done as per the advice of
theDLSO.
5.3.4 Feeding regimes
When 40 kg "nutritive" green fodder is fed to an Adult Unit (AU) in a day, it will meet thefeeding requirement.
However, 1 kg concentrate per day shall be fed for good health of thecows. Fodder grasses like Guinea or
Napier with a minimum of 6 % crude protein on drymatter basis is considered adequate as maintenance ration.
Grass-legume mixed fodder isconsidered adequate to maintain milk production of up to 3-4 kg.Generally an
Adult Unit (AU) weighing 300 kg body weight shall be fed 7.5 kg DMand 3 kg concentrate, including
maintenance and production/pregnancy allowance. As aguideline the following feeding regime shall be
followed:
Feeding regimes for Milking Cows
S.N.MilkProductionTimeGreen Fodder(kg)Dry Fodder(kg)Concentrate(kg)
1.6-7 liters milk per
dayL a c t a t i o n d a y
s 2 0 - 2 5 5 - 6 3 . 0 -
3 . 5 D r y d a y s
1 5 - 2 0 6 -
7 0 . 5 - 1 . 0 2.8-10 liters milk per
dayL a c t a t i o n d a y
s 2 5 - 3 0 4 - 5 4 . 0 -
4 . 5 D r y d a y s
2 0 - 2 5 6 -
7 0 . 5 - 1 . 0
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Feeding regime during summer and winter months for different category of
CowsCategoryS u m m e r F e e d i n g R e g i m e W i n t e r F
e e d i n g R e g i m e ConcentrateMixture (kgGreenFodder (kg)ConcentrateMixture
(kg)GreenFodder (kg)Dry Fodder(kg)
D r y C o
w s - 2 5 -
3 0 1 . 2 5
5 . 0 5 -
6 M i l k i n g 1 k g f o r e v e r y 2.5-3.0 kg ofmilk 301.25 +
1 kg forevery 2.5 - 3.0kg of
milk 5 . 0 5 -
6 P r e g n a n t P r o d u c t i o n Allowance + 1to 1.5 kg from6th month
of pregnancy25 - 30Maintenance + production + 1to 1.5 kg from6th month
of pregnancy5 . 0 5 -
6
Feeding regime for calves up to 6 monthsAge of calf Approx. bodyweight (kg)Quantity ofmilk
(kg)Quantity of calfstarter (g)Green Fodder(kg)
4 d a y s t o 4 w
e e k s 2 5 2 . 5 S m a l
l q t y . S m a l l q t
y . 4 -
6 w e e k s 3 0
3 . 0 5 0 -
1 0 0 S m a l l
q t y . 6 -
8 w e e k s 3 5 2
. 5 1 0 0 -
2 5 0 S m a l l q
t y . 8 -
1 0 w e e k s 4 0
2 . 0 2 5 0 -
3 5 0 S m a l l q
t y . 1 0 -
1 2 w e e k s
4 5 1 . 5 3 5 0
- 5 0 0 1 -
0 1 2 -
1 6 w e e k
s 5 5 -
5 0 0 -
7 5 0 1 -
2 1 6 -
2 0 w e e k
s 6 5 -
7 5 0 -
1 0 0 0 2 -
3 2 0 -
2 4 w e e k s
7 5 - 1 0 0 0 -
1 5 0 0 3 - 5 Also the
following points shall be kept in mind in feeding the cows:1. Maintain optimum ratio of roughage and
concentrate (Generally 60:40
ratio).2. Feed concentrate individually according to production requirements.3. Good quality roughage saves
concentrates. Approximately 20 kg of grasses fodderor 6-8 kg legume fodder can replace 1 kg of concentrate
mixture in terms of proteincontent.4.
1 kg straw can replace 4-5 kg of grass on dry matter basis. In this case the de ciency
of protein and other nutrients should be compensated by a suitable concentratemixture.
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5. Feed concentrate mixture at or preferably before milking – half in the morning andthe other half in the
evening.6. Feed roughage three times a day:
morning, afternoon and evening.7. Abrupt change in the feed should be avoided.8. Tender green fodder should
be wilted or mixed with straw before feeding. Legumefodders, particularly at young and tender stage must be
mixed with straw or othergrasses to prevent the occurrence of bloat and indigestion.9. Feed store must be
dry and well ventilated to prevent development of moulds andtoxins in the feed that may cause poisoning.
5.4 Health care
Many animal-health related problems shall be avoided by the same measures that enhance production. The
following norms shall be practiced to ensure good health of the herd:
Bio-security
Bio-security measures including fencing to restrict access by visitors, dogs and otheranimals will be followed
to prevent incidence of diseases. The farm will have foot batch/foot dip at the entry point.
Hygiene
The shed shall be regularly cleaned and disinfected. Cleaning shall be done beforedisinfection. The cows shall
be fed balanced feed and provide clean drinking water.
Quarantine
The sick animals shall be quarantined. This means sick animals shall be kept away fromthe rest during their
illness. The newly purchased cows shall not be allowed to mix withthe herd for about six weeks.
Vaccination
Timely vaccination against known diseases like foot and mouth shall be done as advised by the DLSO.Timely
vaccination, de-worming and detection of heat, reproduction monitoring such as pregnancy diagnosis, mastitis
prevention and control and care of hoof shall be ensured toenhance farm productivity.
5.5 Breeding
Arti cial Insemination (AI) services from nearest AI out-reach station will be availed forgood quality
progenies. Cattle Identi cation Number with plastic ear tags will be usedfor animal identi cation. Individual
cattle register shall be maintained. Besides the cattle
register, following records also be kept:
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•
Daily milk production and sale records
•
Concentrate purchase and feeding record
•
Farm herd book (for all categories of animals)
•
Monthly expenditure and income statementsA complete breeding and herd health records shall be maintained
through maintenance ofherd record books.
5.6 Organic wastes
The dung pits as indicated in the structure will be constructed. The fresh cow dung will be used for Bio-gas
production. The Bio-gas will add to the income of the farm by savingexpenditure in the energy required for
cooking. The slurry coming out of the Bio-gas plantand the organic waste shall be used for making Farm Yard Manure
(FYM).
6. Marketing plan
6.1 Existing market
Milk collection center (Private/DDC) is located in less than 2 km distance. The processing plant purchase
fresh milk at Rs. 50 per liter.
6.2 Alternative strategy
Depending on the pro tability and in case the plant is not operating, it is proposed tomake butter and cheese. If
fresh milk cannot be sold or pro table to sell as fresh, it will be
processed into butter and cheese.The butter and cheese will be stocked hygienically for which a deep freeze
shall be purchased and supply butter and cheese in bulk to market.To create volume, milk from neighbors will
be purchased. Efforts shall be made to createProducers Group.
7.

Implementation schedule
The project will be implemented cautiously in a planned manner. The implementation will be staggered.
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A c t i v i t i e s Y r -
1 Y r - 2 Y r -
3 Y r - 4 Y r - 5
Construct sheds & store, fencing, bio-gas,water tank Develop Fodder Purchase 2 CowsPurchase 3
CowsPurchase Deep freezePurchase cream separator cum butter churner Sale 2 young heifer/bull every
year Replace 1 milking cow every year Pay Loan @ Rs.100,000 per year Fodder development will take time. It
needs at least one growing season of 6 months. Forthis reason the purchase of cows shall be staggered.
The rst 2 cows will be purchased in 2
nd
quarter of 1
st
year after the structures are ready.They will be fed with crop residues and fodder already available in the farm along
with the purchased feed concentrates.The last 3 cows will be purchased in the 4
th
quarter of 1
st
year, when enough fodder, haysand silage are stocked, experience in managing cross bred Jersey cows, particularly
interms feeding and health, is gained and record keeping is learnt as well as other associatedfactors are better
understood.
8.

Human resource plan

The manager is literate and able to keep farm record and ensure hygiene and sanitation.Two family members
fully engaged in farming will be used for operating the enterprise. No additional workers are needed or hired.
9.

Financial plan
9.1 Initial investment cost
The initial investment cost of the project is Rs.
14,72,000.00
, which includes:5 Cows Rs.
400,000.00
Structure: Rs.
755,000.00
Equipment: Rs.
192,000.00
Establishment: Rs.
125,000.00
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The Cost Break-up of Initial Investment Cost is:
S.N.P a r t i c u l a r s Q u a n
t i t y Approx.Rs/UnitTotal Amount(Rs)I. Cows
1 C o s t
o f C o w
s 5 8 0 , 0
0 0
400,000.00II. Structure
1Cost of cow shed, calf shed,
store andd u n g p
i t 1 5 7 5 ,
0 0 0 5 7 5 ,
0 0 0 . 0 0 2
F e n c i n
g 1 5 0 , 0
0 0 5 0 , 0
0 0 . 0 0 3 W a t e
r t a n k : 1 0 0 0 L C a p & c
o n c s t a n d 1 6 0 , 0 0 0 6 0 , 0 0 0
. 0 0 4 B i o -
g a s p l a n
t 1 7 0 , 0 0 0
7 0 , 0 0 0 . 0
0
S u b -
T o t a l
7 5 5 , 0
0 0 . 0 0 III.
Equipment
1 . C h a f f
C u t t e r 1 2
0 0 0 0 2 0 , 0
0 0 . 0 0 2 . M i l k C a n s
( 5 , 1 0 , 2 0 a n d 4 0 l i t . c a p e t c .
. ) 1 s e t 3 0 0 0 0 3 0 , 0 0 0 . 0 0 3 . C r e a m
S e p a r a t o r c u m B u t t e r
C h u r n e r 1 5 2 0 0 0 5 2 , 0 0 0 . 0 0
4 . D e e p F r e e z e r / R e f r i g e r
a t o r ( 2 5 0 l i t e r ) 1 9 0 0 0 0 9 0
, 0 0 0 . 0 0
S u b -
T o t a l
1 9 2 , 0
0 0 . 0 0
T o t a l C a p
i t a l C o s t
1 3 , 4 7 , 0 0 0
. 0 0 IV. Establishment Cost
1 I n s u r a n c e ( 2 0 % o f
c o s t o f C o w s ) 5 1 6 , 0
0 0 8 0 , 0 0 0 . 0 0 2 T r
a n s p o r t
C o s t 5 5 , 0
0 0 2 5 , 0 0 0
. 0 0 3 F e e d i n g c o s t d
u r i n g q u a r a n t i n e p e r i o d
5 2 , 0 0 0 1 0 , 0 0 0 . 0 0 4 L a b o u
r c o s t f o r f o d d e r d e
v e l o p m e n t 2 0 5 0 0 1 0 , 0 0
0 . 0 0
S u b -
T o t a l
1 2 5 , 0
0 0 . 0 0
T o t a l P r o
j e c t C o s t
1 4 , 7 2 , 0 0 0
. 0 0
Assumption: The seeds/ plants and fertilizers for establishing fodder bank shall be provided by the DLSO free
of cost.
9.2 Proft and Loss Account
The pro t and loss account/annual income statement is worked out for 8 years till the loan
amount is fully liquidated.
The assumptions considered in determining the pro t and loss account includes:
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1. 4 Cows out of ve will be in milking stage at all times.
2. Average milk production per cow is 16L/day3. 4 Cows shall give milk for 300 days a year @ of 16L milk/da
y.4. The milk price is Rs. 50.00 per liter.5. On average 3 kg concentrate/AU/day shall be fed.6. The feed is price
d at Rs. 40/kg.7. Labour cost is accounted at Rs. 10,000/month/person x 2.8. 2 young animals are sold annually
from Year 3 @ of Rs. 40,000/animal.9. 1 Cow will be sold annually @ 50,000 from Year 410. Saving from Bio-
gas: Rs. 20,000/year from Year-210. Sale of Manure Rs. 15,000/year in Yr - 1 & Rs. 37,500/year from Yr -
2.11. Depreciation of Structures @ 10 % spread over a period of 20 years.12. Depreciation of equipment @ 10
% spread over a period of 10 years.
13 In ation - not accounted.
14. Salary of Manager - not accounted.15. Mortality: not accounted
Cost Beneft Analysis
ICostS.N.P a r t i c u l a r s Y e a r 1 Y e a r 2 Y e a
r 3 Y e a r 4 Y e a r 5 Y e a r 6 Y e a r 7 Y e
a r 8
1 R e p a y m e n t of
Loan 1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0
0 0 1 0 0 0 0 0 2 D e p r e c i a t i o n of
Structure 7 5 , 5 0 0 6 7 , 9 5 0 6 1 , 1 5 5 5 5 0 3 9 . 5 4 9 5 3 5 . 5 4 4 , 5 8 2 4 0
1 2 4 3 6 , 1 1 1 3 D e p r e c i a t i o n of
Equipment 1 9 2 0 0 1 7 2 8 0 1 5 5 5 2 1 3 9 9 7 1 2 5 9 7 1 1 3
3 7 1 0 2 0 4 9 1 8 3 4 I n t e r e s t o n Loan 5 8 8 8 0 5 6 5 2 5 5 4 2
6 4 5 2 0 9 3 5 0 0 0 9 4 8 0 0 9 4 6 0 8 8 4 4 2 4 5 5 Concent
r a t e Feed 9 8 5 5 0 2 1 9 0 0 0 2 1 9 0 0 0 2 1 9 0 0 0 2 1 9 0 0 0 2 1 9 0 0 0 2 1 9
0 0 0 2 1 9 0 0 0 6 A n i m a l attendant 2 4 0 , 0 0 0 2 4 0 0 0 0 2 4 0 0 0 0 2 4 0 0 0 0 2
4 0 0 0 0 2 4 0 0 0 0 2 4 0 0 0 0 2 4 0 0 0 0 7 F o d d e r Development 100008
Miscellaneous
5 0 0 0 5 2 0 0 5 4 0 8 5 6 2 5 5 8 4 9 6
0 8 3 6 3 2 6 6 5 7 9
A T o t a l C o s t 6 0 7 1 3 0 7 0 5 9 5 5 6 9 7 3 7 9 6 8 5 7 5
4 . 5 6 7 6 9 9 0 . 5 6 6 9 0 1 1 6 6 1 7 4 2 6 5 5 1 1 8
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IIIncomeS.N.P a r t i c u l a r s Y e a r 1 Y e a r 2 Y e
a r 3 Y e a r 4 Y e a r 5 Y e a r 6 Y e a r 7 Y
e a r 8
1 S a l e o f f r e s h milk 4 8 0 , 0 0 0 9 6 0 , 0 0 0 9 6 0 , 0 0 0 9 6 0 , 0 0 0 9 6 0 , 0 0 0 9 6 0 , 0 0 0
960,000
9 6 0 , 0 0 0 2 S a l e o f o l d cows 0 0 5 0 , 0 0 0 5 0 0
0 0 5 0 0 0 0 5 0 0 0 0 5 0 0 0 0 3 Sale o
f young
stock 0 0 8 0 0 0 0 8 0 0 0 0 8 0 0 0 0 8 0 0 0 0
8 0 0 0 0 8 0 0 0 0 4 S a l e o f manure 1 5 0 0 0 3 7 5 0 0 3
7 5 0 0 3 7 5 0 0 3 7 5 0 0 3 7 5 0 0 3 7 5 0 0 3 7 5 0 0 5 B
i o -
G a s 8 0 0 0 2 0 0 0 0 2 0 0 0 0 2 0 0 0 0 2 0 0 0 0
2 0 0 0 0 2 0 0 0 0 2 0 0 0 0
B T o t a l I n c o m e 5 0 3 , 0 0 0 1 0 1 7 5 0 0 1 0 9 7 5 0 0 1 1 4 7 5 0 0 1 1 4 7
5 0 0 1 1 4 7 5 0 0 1 1 4 7 5 0 0 1 1 4 7 5 0 0
III
Proft/Loss
(B-A)-
1 0 4 1 3 0 3 1 1 5 4 5 4 0 0 1 2 1 4 6 1 7 4 5 . 5 4 7 0 5 0 9 . 5 4 7 8 4
8 9 4 8 5 7 5 8 4 9 2 3 8 2

10. Loan payment schedule

It is proposed to pay Rs. 100,000.00 (One hundred thousands) only, per year. Paying theloan at the rate of Rs.
100,000.00 per year the loan amount including interest shall beliquidated in 8 years. During the 8 years loan
liquidation period Rs. 410,113.00 will be paid as interest charged at 4% per annum.
11. Government clearance
i. National Environment Commission (NEC)
The cow dung is a major source of the Methane (CH
4
), which is a potent GreenHouse Gas (GHG). To mitigate the emission of the Methane (CH
4
) gas into theatmosphere, the Bio-gas plant is integrated to this enterprise. The Bio-gas plantwill enable to make
use of Methane Gas for cooking purpose instead of letting itto the atmosphere for damaging the Ozone Layer
causing global Warming andclimate change.
ii. National Land Commission (NLC)
The enterprise will be executed entirely on registered private land.
iii. Forest clearance
The nearest forest boundary is more than a kilometer away. No debris shall be burnt. All debris will be
converted into compost. There will no felling of bushesor trees.
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Project Proposal on Dairy Farm

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Jibachha’s Handbook of Animal Husbandry
iv. Livestock Rules and Regulation
The enterprise will comply with Livestock Rules and Regulation and every activitywill be executed as per the
advice of the Department of Livestock.
12. Monitoring and Evaluation
District Livestock Service Of ce (DLSO) will be the advisor as well as oversight agency
to monitor the operation and management of the enterprise. DLSO will be welcomed to
monitor the enterprise as the sole nancer of the enterprise. To the monitoring team all the
records shall be made available and feedback will be sought and comply with all necessaryrecommendations.
13. Conclusion
High initial capital investment, long turnover period and risk of outbreak of diseases makedairy a daunting
enterprise for poor farmers. Unlike other enterprises, like poultry, itrequires land for fodder production which
makes unfeasible for farmers with small landholding. Nonetheless, with
strong government support, entrepreneurial skill and increasing demand
and price of milk and milk product the project is expected to succeed. The bene ts of dairyfarming are
multiple. The dif culties faced in the short run yields sustained income for
the family in the long run providing opportunity for young children getting employed athome itself.The dairy
farming will enable to have Bio-gas for cooking which will alleviate the drudgery
of collecting rewood and cooking food in rewood. Besides it will enable to practice
organic farming.The total loan amount of Rs.
14,72,000.00
is expected to be paid back by 8th year of
the project. In fourth year the enterprise will achieve the breakeven point when the capitalinvestment cost along
with interest will be paid back.Dairy is a socially appropriate enterprise and with the strong government policy
supportas it is now, it has good scope for more farmers of district to take similar enterprise which
would alleviate rural poverty, create job, reduce dependence on forest for rewood and
enable practicing organic farming.The entrepreneur shall put utmost effort to promote Micro Dairy Farm,
organic farmingand adoption of Bio-gas in the district. Initiatives will be taken to promote ProducersGroup in
the district which will encompass organic vegetables production and poultry production besides milk and milk
products (Source: Pradhan, 2015).