APPRAISAL OF COMMERCIAL DAIRY UNIT

FARM MODEL OF DAIRY UNIT OF 6 BUFFALOES

TECHNO-FINANCIAL ASSUMPTIONS

Components:Type Of Animal
No of animals
Cost of animal( including transportation and insurance) (Rs/-)
Average milk yield (liters/day)
Selling price of milk/lit (Rs/-)
Sale of manure/animal/year (Rs/-)
Culled value/ animal at the end of fifth lactation (Rs/-)
Veterinary aid /animal/year
Rate of interest (%)
Residual value of shed and equipment to be taken(yes/no)
Repayment period(years)
% Of net surplus towards repayment

Buffaloes
6
35,000
8
21
500
10,000
500
12
N0
3
80

Feeding Schedule:Lactation Period

Quantity (Kg)
Cost
i.Concentrate Feed (Rs.10/Kg)
For milk (1 kg/3 litre)
For Maintenance+preg.
ii. Green Fodder
iii. Dry Fodder (Rs.3/Kg)

4
1
20
5

40
10
0
15

Dry Period &

Quantity (Kg)
Cost
0
1.5
20
5

Particulars
A. Capital Cost
Cost of Crossbred Cows including transport cost & Insurance cost (6 animals; Rs.
30,000 each)
Shed for adult animals (40 sq.ft/animal; Rs. 80/sq.ft)
Equipment cost
Cost for fodder cultivation(for 1 acre)
B. Working capital
Cost of Feeding first animal for one month
Total

0
15
0
15
Cost (Rs.)
2,10,000
28,800
10,000
7,500
7,200
2,63,500

Based on the Norms the funding for dairy unit was as follows (Rs)
Total Project Cost
2,63,500
Margin Money (Borrower/company)
43,500
Bank Loan
2,20,000

Year

I
II
III
IV
V

Based on an inter-calving period of 400 days (250 lactation days + 150 dry days),
the lactation chart for the animal farm is given below.
I Batch
II Batch
Total
Lactation days
Dry days
Lactation
Dry days
Lactation
Dry days
days
days
750
345
540
0
1290
345
840
255
645
450
1575
615
795
300
645
450
1440
750
645
450
645
450
1290
900
645
450
795
300
1440
750

Projected Profitability:Particulars
Income:
By sale of Milk
By sale of Manure
Total
Expenditure:
concentrated feed
Dry Fodder
On Veterinary Aid
Total
Net Income

I year

II year

III year

IV year

V year

2,16,720
2,250
2,18,970

2,49,480
3,000
2,52,480

2,41,920
3,000
2,44,920

2,16,720
3,000
2,19,720

2,41,920
3,000
2,44,920

60,750
24,525
2,250
87,525
1,31,445

81,300
32,850
3,000
1,17,150
1,35,330

79,500
32,850
3,000
1,15,350
1,29,570

73,500
32,850
3,000
1,09,350
1,10,370

79,500
32,850
3,000
1,15,350
1,29,570

Financial Analysis:Particulars
Cost:
Capital Cost
Recurring cost
Total Cost
Benefits
Residual value
Total Benefit
Net Benefit
Discount Factor at 15 %
BCR
NPV
IRR

I year

II year

III year

IV year

V year

2,63,500
87,525
3,51,025
2,18,970

1,17,150
1,17,150
2,52,480

1,15,350
1,15,350
2,44,920

1,09,350
1,09,350
2,19,720

2,18,970
-1,32,055
0.87

2,52,480
1,35,330
0.76

2,44,920
1,29,570
0.66
1.42: 1
2,30,047
>50% (94.52 %)

2,19,720
1,10,370
0.57

1,15,350
1,15,350
2,44,920
60,000
3,04,920
1,89,570
0.50

Repayment Period:Year
1
2
3
4
5

Loan
Outstanding
2,20,000
1,54,389
78,184
0
0

Interest
(12%)
26,400
18,527
9,382
0
0

Net
Profit
1,31,445
1,35,330
1,29,570
1,10,370
1,89,570

Repayment
of Principal
65,612
76,204
78,184
0
0

Total
Repayment
92,012
94,731
87,566
0
0

Net
Surplus
39,434
40,599
42,004
1,10,370
1,89,570