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50 Murrah Buffalo Dairy Farm Project

Report

FIFTY MURRAH BUFFALOES DAIRY FARM

PROJECT REPORT
fifty Murrah Buffaloes Dairy Farm Project Report is based on the following
assumptions:-

Freshly calved Murrah female buffaloes in 1st or 2nd lactation will be purchased in two
batches of twenty-five animals each/batch at an interval of 5 to 6 months.
Availability of 10 acres of land for fodder cultivation is prerequisite for the project,
Dung produced will be utilized as Manure for fodder cultivation.
Cost of rearing calves not considered as it will be repealed by their sale
In case of death of adult animal new buffalo will be purchased from insurance claim money.
Heifers will be used as replacement stocks
The scheme will be successful on the above guidelines if run by the dairy farmer on
scientific lines.
Before entering into dairy business the entrepreneurs are advised to undergo a training on
dairy farming. They can contact Local Animal Husbandry Department staffs/Veterinary
College/agriculture university etc. for the purpose. They should also visit progressive dairy
farmers and government/ agricultural university dairy farm in the locality. They must
check the following points before starting a dairy farm.
1. Availability of good quality Murrah buffaloes in the nearby livestock market
2. Nearness of the Farm to Veterinary Hospital, Artificial Insemination Center/livestock
Aid Centers, MPCS
3. Marketing facility of milk and milk product in the locality
4. Availability of concentrates, fodder& medicine in that locality
5. SUBSIDY AVAILABLE FOR THIS TYPE PROJECT: -Odisha farmer can avail subsidy
for this type project under Mukhya Mantri Krushi Udyoga Yojana (MKUY) (APICOL).
50% subsidy of capital expenditure with the limit of Rs fifteen lakhs is available for 50
animal buffalo dairy farm for ST/SC and general women. 40% subsidy with limit of
twelve lakhs is available for the male of general category for buffalo dairy farm with 50
animals.
6. Housing for buffaloes:-loose housing system (open type) will be adopted for the
farm as it is superior to conventional bran in terms of milk production & growth.
Construction cost is lower & heat detection for buffaloes is easier in this type of housing.
In loose housing system animals are kept loose except milking and at the time of
treatment. Details of floor space requirement (open & covered area)is given in techno-
economic parameters.
7. Lactation days/ dry days and frrf chart is given in link page
Lactation days/ dry days and feed chart

8.

Techno-economic parameters value

9.

Bred of buffalo Murrah

No. of Animals 50

Cost of Animal (Rs./animal) including

75000
transportation

Average Milk Yield (litre/day) 15 liter

Covered Floor space per adult animal(sq.ft) 30

Open space per adult animal(sq.ft) 100

Manger length/animal in inches 25

Covered Floor space per young stock (sq.ft) 15

Open space per young stock (sq.ft) 50

Manger per young stock in inches 15

The construction cost of office & store in sq.ft 400

Cost of construction per sq.ft (Rs) for covered

250
space

Cost of milking machine with accessories 150000

Cost of other equipment per animal (Rs.) 1000

Cost of fodder cultivation (Rs./acre/season) 6000

Insurance premium (% per annum) 5

Veterinary aid/animal/ year (Rs.) 1000

Cost of concentrate feed (Rs./kg) 20

Cost of dry fodder (Rs./kg) 4

Rate of interest (%) 12

Repayment period (years) 6

Selling price of milk/litre (Rs./kg) 35

Sale price of gunny bags (Rs. per bag) 10

Lactation days 270

Dry days 150

 Economics of dairy farming with 50 Murrah buffaloes
10.

Project cost and bank loan Cost. In Rs.

Capital cost

Covered area for 50 Buffaloes @

375000
30sq.ft/bufalo@250/sqft

Covered area 50calves 15 sq.ft./calf

187500
@250/sq.ft.

Cost of construction of boundary &

350000
manger for open space for adult & calves

Cost of construction store room 300 sq.ft

120000
@400 per sq.ft

Cost of construction of office cum

100000
marketing room 250 sq ft @400 per sq.ft

Cost of 50 Murrah Buffaloes with

minimum average 15-liter milkyield /day
3750000
@70000/buffaloes including
transportation

Cost of the generator set 100000

Cost of milking machine with accessories

150000
& installation charge

Cost of dairy appliance

50000
@Rs.1000/Buffalo

Cost of bore well with pump set 100000

Electrification 30000

Cost of over head tank & pipe line 70000

Cost of chaff cutter 90000

 Two silage pit 100000

Total 5572500

The recurring cost to be capitalized

Cost of feed for the first batch of 2 5

123000
buffaloes for one month as per feed chart

Cost of insurance 25 animals @5% of the

93750
animal cost

Cost of fodder cultivation in 10 acres of

60000
land for one session

Cost of medicine vaccine, electricity for

10000
the first month for first month

Labour charge of 4 labourer for one

24000
month

Contingency 16750

Total recurring expenditure 327500

TOTAL PROJECT COST 5900000

Margin money 25% of the project cost 1475000

Bank loan 4425000

CASH FLOW ANALYSIS

11.

Particulars Project period

1 2 3 4 5 6

Feeding during 1763000 200900 188 1722000 1722000 1886000

lactation 0 60
period vide 00
yearly
lactation days
and feed cost
as per chart

Feeding during
dry period vide
69
dry days and
645000 735000 00 630000 630000 690000
feed cost as
00
per feed chart
enclosed

Medicine 50
vaccine 50000 50000 00 50000 50000 50000
veterinary aid 0

Insurance 187
@5% of animal 187500 187500 50 187500 187500 187500
cost /year 0

Cost of fodder
120
cultivation for
120000 120000 00 120000 120000 120000
two seasons
0
per year

28
Labour charge 288000 288000 80 288000 288000 288000
00

32
Total 3053500 3389500 215 2997500 2997500 3221500
00

INCOME

Sale of milk 5643750 6431250 60 5512500 5512500 6037500

@Rs.35/liter 375
during 00
lactation days
with average
milk yield /15
liter/day

Sale of gunny 152

12750 15750 14500 14500 15250
bags 50

Manure will be
utilized in own
farm

Value of
1500000
closing stock

Value of
building 453000
@10%/year)

Value of
equipment

39000
(Depreciation
@15%/year)

60
Total income 5656500 6447000 527 5527000 5527000 8044750
50

28
Gross profit 2603000 3057500 312 2529500 2529500 4823250
50

Calculation of BCR and IRR

1 2 3 4 5 6

Ca 5900000
 pit
al
Cos
ts

Re
cur
rin
3053500 3389500 3221500 2997500 2997500 3221500
g
Cos
t

Tot
al
8953500 3389500 3221500 2997500 2997500 3221500
Cos
ts

Be
nef 5656500 6447000 6052750 5527000 5527000 8044750
it

Net
Be -329700
3057500 2831250 2529500 2529500 4823250
nef 0
it

Calculation of BCR and IRR

12.

1 2 3 4 5 6

Capital
5900000
Costs

Recurring
3053500 3389500 3221500 2997500 2997500 3221500
Cost

Total 8953500 3389500 3221500 2997500 2997500 3221500

 Costs

Benefit 5656500 6447000 6052750 5527000 5527000 8044750

Net
-3297000 3057500 2831250 2529500 2529500 4823250
Benefit

Sl no Financial indicators Estimated value Preferred value

1. PW costs @ 15%DF 17174113.37

2. PW benifits @ 15%DF 23159278.68

3. Net Present Worth (NPW 5985165.31 Should be+ve

4. Benefit Cost Ratio(BCR) 1.348:1 >1

5. Internal Rate of return (IRR) 37.433 >15%

6. Debt Service Coverage Ratio 2.78 >1.5

Loan Repayment schedule for fifty murrah buffalo dairy project:- Repayment of
loan will start after grace period of six months . Total loan repayment period is 6-7 years.
Details of monthly installment, interest payment, principal payment and balance is given
in repayment schedule for 50 murrah buffaloes.
Updated on 3-22019
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