PROJECT REPORT OF A LARGE-SCALE CROSSBRED COW DAIRY FARM

Dr. Vivek M. Patil

Department of Livestock Production Management,
Karnataka Veterinary, Animal & Fisheries Sciences University

Overview
Name of the Proprietor
Address
Unit size
Project Cost (Rs.)
Bank Loan (Rs.)
Margin Money (Rs.)
Repayment period (years)
Loan rate of interest (%)

MAHESH KARKI
AHMEDABAD
500
85,800,000
68,640,000
17,160,000
5
15

Techno-Economic Parameters
Cost of each cow (Rs.)
Average daily milk yield of each cow (lit)
Sale price of milk (Rs./lit)
Irrigated land required for fodder production (acres)
Cost of construction of cow 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
(cows are purchased in 2 batches at an interval of 5-6 months)
Year 1
No. of
animals
First Batch
250
Second Batch
250

in milk

Total (days)

75000
45000
120000

Year 2
dry
16250
0
16250

in milk

Year 3
dry

75000
75000
150000

16250
16250
32500

in milk

Year 4
dry

75000
75000
150000

16250
16250
32500

in milk

Year 5
dry

75000
75000
150000

16250
16250
32500

in milk
75000
75000
150000

dry
16250
16250
32500

Feed and Fodder

Daily
Requirement
Rate/kg in milk
dry
Green fodder 0.40
45.00
45.00
Dry fodder 3.00
3.00
4.00
Concentrates 14.00
10.83
2.50
Total (Rs)

110,000
25
30
100.00
400
250
200
0.40
3.00
14.00
1000
1000
4
10,000
8.00

Year 1

Year 2

in milk
dry
in milk
2,160,000 292,500 2,700,000
1,080,000 195,000 1,350,000
18,200,000 568,750 22,750,000
21,440,000 1,056,25026,800,000

Year 3

Year 4

dry
in milk
585,000
2,700,000
390,000
1,350,000
1,137,500 22,750,000
2,112,500 26,800,000

dry
in milk
585,000
2,700,000
390,000
1,350,000
1,137,500 22,750,000
2,112,500 26,800,000

Specifications Phy. units

500
sq. ft.
40000
sq. ft.
20000
sq. ft.
5000
1 set
1 set
1 set
1 set
500
1 set
acres
100
500

Unit cost
Total
110,000 55,000,000
400 16,000,000
250
5,000,000
200
1,000,000
5,000,000
5,000,000
1,250,000
1,250,000
1,000,000
1,000,000
750,000
750,000
500
250,000
3,000
300,000
500
250,000
Total 85,800,000

Investment Cost
Cost of animals
Construction of cow 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
in milk
dry
585,000
2,700,000
585,000
390,000
1,350,000
390,000
1,137,500 22,750,000 1,137,500
2,112,500 26,800,000 2,112,500

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

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

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

II

Years
III

IV

85,800,000
21,440,000 26,800,000 26,800,000 26,800,000 26,800,000
1,056,250
2,112,500
2,112,500
2,112,500
2,112,500
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
2,200,000
2,200,000
2,200,000
2,200,000
2,200,000
630,000
630,000
630,000
630,000
630,000
Total 112,126,250 32,742,500 32,742,500 32,742,500 32,742,500

90,000,000 112,500,000 112,500,000 112,500,000 112,500,000

214,500
273,000
273,000
273,000
273,000
0
0
0
0 16,500,000
0
0
0
0
4,125,000
0
0
0
0 27,500,000
Total 90,214,500 112,773,000 112,773,000 112,773,000 160,898,000
0.91
101,932,955
82,013,182
240,585,626
2.23
0.67
-21,911,750
-14,607,833
366%

0.83
0.75
0.68
0.62
27,059,917 24,599,925 22,363,568 20,330,516 196,286,881
93,200,826 84,728,024 77,025,476 99,904,999 436,872,508

0.44
0.30
0.20
0.13
80,030,500 80,030,500 80,030,500 128,155,500
35,569,111 23,712,741 15,808,494 16,876,444 77,358,957

Repayment Schedule

Capital Recovery Factor

Year

Income

Expenses

Gross
Surplus

I
II
III
IV
V

90,214,500
112,773,000
112,773,000
112,773,000
112,773,000

26,326,250
32,742,500
32,742,500
32,742,500
32,742,500

63,888,250
80,030,500
80,030,500
80,030,500
80,030,500

Equated
Annual
Installment

19,905,600
19,905,600
19,905,600
19,905,600
19,905,600

0.29

Date : 10/12/2012 22:20:32

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
43,982,650
60,124,900
60,124,900
60,124,900
60,124,900