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10/15/13

DAIRY FARM (BUFFALO) PROJECT REPORT FOR BANK LOAN - Animal Husbandry

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DAIRY FARM (BUFFALO) PROJECT REPORT FOR BANK LOAN


PROJECT REPORT FOR DAIRY FARM WITH FIFTY M URRAH BUFFALOES
Buffalo farming is a profitable business & has good potential for employment generation . India has 57% of world buffalo population. Buffalo milk contributes 57% of total milk production. Buffaloes have several advantages over crossbred cows as farm animal. 1-They are well adopted to agro-climatic condition of our country 2-They are more disease resistant in comparison to crossbred cows. (less incidence of milk fever & mastitis in buffaloes) 3-They can thrive well on crop residue 5-Buffalo milk contains more butter fat for which the price of buffalo milk is more.

This project report is based on 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 Cost of rearing calves not considered as it will be repealed by their sale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.

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. A photograph of loose housing buffalo dairy farm is given below

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DAIRY FARM (BUFFALO) PROJECT REPORT FOR BANK LOAN - Animal Husbandry

Murrah Buffalo farm NDRI Karnal OPEN YARD HOUSING

Techno-economic parameters
. Techno economic parameters

Bred of buffalo
No. of Animals

Murrah

50

Cost of Animal (Rs./animal) including transportation

55000

Average Milk Yield (litre/day)

15 liter

Covered Floor space per adult animal(sq.ft)

30

Open space per adult animal(sq.ft)

100

Menger length/animal in inches

25

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DAIRY FARM (BUFFALO) PROJECT REPORT FOR BANK LOAN - Animal Husbandry

Covered Floor space per young stock (sq.ft)

15

Open space per young stock (sq.ft)

50

Menger per young stock in inches

15

Construction cost of office & floor in sq.ft

250

Cost of construction per sqft (Rs)

200

Cost of milking machine with accessories

430000

Cost of other equipment per animal (Rs.)

1000

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

5000

Insurance premium (% per annum)

Veterinary aid/animal/ year (Rs.)

1000

Cost of concentrate feed (Rs./kg)

12

Cost of dry fodder (Rs./kg)

Rate of interest (%)

12

Repayment period (years)

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

24

Sale price of gunny bags (Rs. per bag)

10

Lactation days

270

Dry days

150

DAILY FEEDING AND COST CHART FOR DAIRY BUFFALOES Item FEEDING STUFF COST/KG Rs. During lactation period During dry period

Quantity (kg)
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Cost (Rs.)

Quantity (kg)

Cost (Rs.)
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DAIRY FARM (BUFFALO) PROJECT REPORT FOR BANK LOAN - Animal Husbandry

Concentrate feed Green fodder

12

6.5

78

12

ii

25

Home grown 12

20

Home grown 10

iii

Dry fodder

Total

90

22

feeding chart

Lactation chart/Dry chart


Sr.No Particulars I i) Lactation Days Dry Days 10500 II 12125 Years III 12125 IV 12125 V 11000 Vi 12125 vii 12125

ii)

3125

6125

6125

7125

7250

6125

5375

Project cost and bank loan

Cost. In Rs.

1. 2.

Capital cost Covered area for 30sq.ft/bufalo@200/sqft Covered area @200/sq.ft. 50 Buffaloes @ 300000

3.

50calves

15

sq.ft./calf

150000

4.

Cost of construction of boundary & manger for open space Cost of construction store room 200 sq.ft @250 per sq.ft

250000

5.

50000

6.
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DAIRY FARM (BUFFALO) PROJECT REPORT FOR BANK LOAN - Animal Husbandry

Cost of construction of office cum marketing room 250 sq ft @250 per sq.ft

62500

7.

Cost of 50 Murrah Buffaloes with minimum average 15 liter milk yield /day @55000/buffaloes including transportation Cost of generator set Cost of milking machine with accessories & installation charge Cost of dairy appliance @Rs.1000/Buffalo Cost of bulk cooler of 500 liter capacity Cost of bore well with pump set Electrification Cost of over head tank & pipe line Cost of chaff cutter Total

2750000

8. 9.

80000 430000

10. 11. 12. 13. 14. 15.

50000 270000 70000 30000 70000 90000 4652500

Recurring cost to be capitalized

1.

Cost of feed for first batch of 2 5 buffaloes for one month as per feed chart

67500

2.

Cost of insurance 25 animals @5% of animal cost Cost of fodder cultivation in 10 acres of land for one session

68750

3.

50000

4.

Cost of medicine vaccine, electricity for the first month for first month Contingency Total recurring expenditure

10000

5. 6.

11250

207500

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DAIRY FARM (BUFFALO) PROJECT REPORT FOR BANK LOAN - Animal Husbandry

7.

TOTAL PROJECT COST

4860000

8.

Margin money (no margin money up to one lakh finance as per RBI guideline)

1215000

9.

Bank loan 100% of project cost

3645000

Item

Particulars

Project period

1 1.

Feeding during lactation period vide yearly lactation days and feed cost as per chart

945000

1091250

1091250

1091250

990000

1091250

2.

Feeding during dry period vide dry days and feed cost as per feed chart enclosed

68750

134750

134750

156750

159500

134750

3.

Medicine vaccine veterinary aid

50000

50000

50000

50000

50000

50000

4.

Insurance @5% of animal cost /year

137500

137500

137500

137500

137500

137500

5.

Cost of fodder cultivation

100000

100000

100000

100000

100000

100000

6.

Labour charge

180000

180000

180000

180000

180000

180000

7.

Electricity & other misc. expenses

60000

60000

60000

60000

60000

60000

8.

Total

1541250

1753500

1753500

1775500

1677000

1753500

INCOME

I.

Sale of milk @Rs.24/liter during lactation days with average milk yield 15 lit /buffalo/day

3780000

4365000

4365000

4365000

3960000

4365000

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DAIRY FARM (BUFFALO) PROJECT REPORT FOR BANK LOAN - Animal Husbandry

II.

Sale of gunny bags

III.

Manure will be utilized in own farm

14270

16980

16980

17180

15750

16980

IV.

Value of closing stock of 50 buffaloes (Depreciation on animal cost @10%/year)

1100000

V.

Value of building (Depreciation on building@10%/year)

325000

VI.

Value of equipments (Depreciation on equipments @15%/year)

109000

VII.

Total income

3794270

4381980

4381980

4382180

3975750

5915980

VIII.

Gross profit

2253020

2628480

2628480

2606680

2298750

4162480

Calculation of BCR and IRR 1 Capital Costs Recurring Cost Total Costs Benefit Net Benefit 4652500 2 3 4 5 6

1541250

1753500

1753500

1775500

1677000

1753500

6193750

1753500

1753500

1775500

1677000

1753500

3794270 -2399480

4381980 2628480

4381980 2628480

4382180 2606680

3975750 2298750

5915980 4162480

PW Costs @ 15%

10471721.91

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DAIRY FARM (BUFFALO) PROJECT REPORT FOR BANK LOAN - Animal Husbandry

PW Benefits @ 15%

16533943.58

NPW

6062221.67

B.C. Ratio I.R.R. (%)

1.578:1 >25%

Repayment schedule Year Loan Outstanding 3645000 3200000 2600000 1900000 1100000 500000 Gross Surplus Interest Principal Total Repayment 882400 984000 1012000 1028000 732000 560000 Surplus

1 2 3 4 5 6

2253020 2628480

437400 384000 312000 228000 132000 60000

445000 600000 700000 800000 600000 500000

1370620 1644480 1616480 1600480 1566750 3602480

2628480

2628480

2298750 4162480

Before entering in to 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 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.

Subpages (1): COMPOSITE FARMING FORUM (NEW)

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