PROJECT BRIEF

Dairy production is an all-inclusive activity, related to animal care, reproduction, feeding, and management. It is defined as all those aspects and activities relating to raising of dairy animals during their various phases of life to get wholesome milk. The proposed project is to promote agriculture sector and plays a vital role in the national economy. The role of livestock in the rural economy may be assessed by the fact that more then 70% of the total rural population is engaged in livestock farming.The main product of the dairy farm will be milk which will be sold on daily basis. The initial total investment is of Rs 1,275,000.00. The Project can be completed in 03 months. The best quality of cow is Holes-tine and its gives 16 ltrs milk per day.The market is readily accessible.Four persons will be employed at the farm, while more jobs will be created indirectly with the farm. 1.2 FINANCIAL SUMMARY Sales Rs ................... per annum Gross Profit Margin .................% Net Profit Margin before tax .....% Internal Rate of Return .............% Foreign collaboration sought sole or Joint Venture Loan Market access Sub contracting Buy back arrangement Equipment purchase

Management expertise Technical expertise Marketing expertise Technology transfer Joint R&D Other :2. PROJECT RATIONALE Dairy farming is an agro-based project, which comprises of two aspects: dairy production and dairy technology. Dairy production is an all-inclusive activity, related to dairy animal care, reproduction, feeding, and management and is defined as all those aspects and activities relating to raising of dairy animals during their various phases of life to get wholesome milk. Dairy technology relates to all aspects of processing milk to convert it into various products. This conversion of milk into product is practicable only if it is economically viable. Dairy animals, mainly buffaloes and cows are purchased from the animal markets . Dairy animals are fed on protein sources (concentrate) along with plenty of green fodder. Animals are milked twice a day i.e. morning and evening. The milk is sold at the farm or may be directly sold in the market. The milk price varies according to its quality and the season. Buffalo milk is sold at Rs 50- per liter at the farm gate and Cow milk is sold at Rs 70-75 per liter at the farm. The demand and supply both have shown increasing trend over the last decade. The demand for good quality milk is high. The table below shows this trend. 3. MARKET OPPORTUNITY The consumption of milk is very high . The daily milk intake of kathmandu valley only is 4lac liter approximately. for milk increases during summers as the consumption of lassi rises due to hot weather. Different value added products like yogurt, ice cream,Ghee,butter and cheese are also prepared from the raw milk. The processed milk quality and market share has increased considerably provides numerous opportunities to the dairy farm investor to benefit from it. 4. BUSINESS PLAN The good quality lactating adult animals will be purchased; their milk giving ability will be optimized by giving them quality feed and taking proper care.The profitability of the project will be maximized by selling both to the end consumers as well as to the wholesalers. 4.1 PRODUCT SALES The product for sales are given for ready reference as well the expected sales at full capacity is also worked out in the table below. Milk Total no. of Cows No.of Days in Year Sale Price of developed progeny Cow Rs. 80,000 Rs. 20,000 16 10 Ltrs/day 10 cows 365 Days

Female calf (cow) older then one year

Sale Price/Culled cow Rs. 30,000 Sale Price/Low yielder cow Sale Price/Male calf Sales at 100% Animal Holestine cow Production of milk/days Liter of milk animal per day Sale price per liter amt 16 Ltrs Sale male calves (M) Total 1 75*16 = 1,200.00 10000 11200 Rs.16,000 Rs. 4,000-5,000 Rs.

4.2 RAW MATERIALS The main material required at farm are cattle feed, Dry & Green roughage, water and medicines. The cost of feed are detailed below. Daily Feed Requirements Animal Daily Green Fodder Dry Roughage Concentrate Total Requirement (kg) 40.00 5.00 3.18 Cost/kg 0.10 2.00 10.00 Amount 4.00 10.00 31.78 45.78

4.3 PRODUCTION PROCESS Dairy animals, mainly buffaloes and cows are purchased from the animal markets. Dairy animals are fed on protein sources (concentrate) along with plenty of green fodder. Animals are milked twice a day i.e. morning and evening. The milk is sold at the farm . The milk price varies according to its quality and the season.

4.4 DISTRIBUTION CHANNELS It is suggested that milk will be sold on farm door through contractors or people around that area or may be pasteurized at farm by the farmer and then deliver it to the near by city. Following are some of the target clients for a dairy farmer. 1. Local people 2. Milk collection companies 3. Contractors 4.5 HUMAN RESOURCE REQUIRMENT One farm manager and three workers are required at the farm, their salaries are ..... 5. PROJECT FINANCIALS 5.1 OPERATIONAL DATA The dairy farm will house 10 animals in the first year, however if expansion is required the total number will be increased . 5.2 FIXED COST The initial investment in terms of capital cost is Rs 1,275,000.00 and includes the items detailed below. ASSETS Building/Infrastructure Machinery & equipment Animal Cost (10 Cows 80,000) Total Capital Cost 5.3 WORKING CAPITAL The investment in the initial working capital is of Raw material inventory Upfront land lease rental Cash Working Capital Requirement 5.4 OVERHEAD COSTS In the first year following overhead cost are estimated. Admin and Selling Salaries Misc Expenses Land lease Rent Expenses Office expenses Professional fees (legal, consultants, etc.) Total Cost(Rs) 350,000.00 125000.00 800,000.00 1,275,000 Rs 300,000.00 00.00 20,000.00 80,000 00.00

372,000.00 43,000.00 20,000.00 7,440.00 80,000.00

..............................................................................................................thank you .................................... ..................................................................................................................................................................

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PROJECT OF FARM HOUSE

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Contents:
Introduction Executive Summary Analysis of competitor Description of Business Production Plan Operational Plan Marketing Plan Organizational Plan Risk Assessment Financial Plan Annexure

Dairy production is an all-inclusive activity, related to animal care, reproduction, feeding, and management. It is defined as all those aspects and activities relating to rising of dairy animals during their various phases of life to get wholesome milk. The proposed project is to promote agriculture sector and plays a vital role in the national economy. The role of livestock in the rural economy may be assessed by the fact that more then 70% of the total rural population is engaged in livestock farming .The main product of the dairy farm will be milk which will be sold on daily basis. NATURE OF BUSINESS Its a profit oriented Business. FINANCIAL SUMMARY Sales Gross Profit Margin Net Profit Margin before tax Rs 4,088,000.00 per annum 30 % 20 %

Foreign collaboration sought sole Loan Market access Sub contracting Buy back arrangement Equipment purchase Management expertise Technical expertise Marketing expertise Technology transfer Joint R&D Other :AMOUNT OF INVESTMENT The initial total investment is of Rs 3,000,000.00. The Project can be completed in 03 months. The best quality of cow is Holes-tine and its gives 16 liters milk per day. The market is readily accessible. Four persons will be employed at the farm, while more jobs will be created indirectly with the farm.

STATEMENT OF CONFIDENTIALITY OF REPORT: This report is confidential and is the property of the entire farm House. EXECUTIVE SUMMARY: Dairy production is an all-inclusive activity, related to animal care, reproduction, feeding, And management. It is defined as all those aspects and activities relating to rising of dairy Animals during their various phases of life to get wholesome milk. NATURE OF COMPANY Its a sole business and the name of the owner is ...................................................................................... Its a profit base organization.

According to our assumptions and the rates of different things required like equipment, building and cows for the farm house we need Rs. Thirty lakhs. From our side we want to invest 10 % of the total amount. For that purpose we provide to mortgage land for the guarantee to the bank.

ANALYSIS OF COMPETITOR: In private or public sector there is no single farm house in that location. our standard & caliber. So, no direct competitor is there but some indirect competitor has established their Home base cow farm. We segment our market on Income bases: 1. Home Delivery 2. Quality based By giving Home Delivery packages we can also satisfy the customer. DESCRIPTION OF BUSINESS SERVICE PROVIDED: We provide all pure and livestock product to our value added customer . SIZE OF BUSINESS: Our farmhouse is basically belonging from medium size business. CONSTRUCTION : We purchased land and Building on farmhouse is nearly to complete. LOCATION Dadhikot Bhaktapur SIZE OF AREA: Nearly by 10 Ropani EQUIPMENT:

When any business is going to be practically implement office equipment is essential for routine work established discipline and identifications of specific designations. The most interesting thing is that our equipment is quite different from other . After the description of all list now we explain some other, which will be compulsory for further farm . For this purpose, fist of all we describe finance and the equipment needed for this.

SERVICES We provide complete pure products to our customer.

SIZE OF BUSINESS: Our farm house is basically belonging from medium size business. Situated in Dadhikot Bhaktapur , location are in small in size and have not developed . the capacity of our farm house is started through 10 cows. We purchased land and construction on farm house is nearly to complete. PRODUCT SALES The product for sales are given for ready reference as well the expected sales at full capacity is also worked out in the table below. Milk Total no. of Cows No.of Days in Year Total 16 10 Ltrs/day 10 cows 300 Days 160ltrs 300 days = 48000.00

SALES PRICE OF DEVELOPED PROGENCY Cow Female calf (cow) older then one year Sale Price/Culled cow Sale Price/Low yielder cow Sale Price/Male calf Sales at Total CATOGERY OF ANIMALS Holestine cow Production of milk/days Liter of milk animal per day Sale price per liter amt 16 trs Rs 75 16ltrs 10 cows = Rs. 1,2000.00/day 300 Days *3600000/ammam Sale male calves (M) 10000 Total 3610000.00 MARKETING PLAN: Here we describe market conditions and strategies related to services. How it will bePriced and promoted. Being the entrepreneur our main focus is profitability but also target is how to serve our client in constructive manner. Therefore our marketing goals will be the blend of both factors. Provide all possible facilities to our customer in their own area. Rs. 80,000.00 Rs. 20,000.00 Rs. 30,000.00 Rs.16,000.00 Rs. 4,000-5,000 100% 150,000.00

SITUATIONAL ANALYSIS Our city environment is very much supportive for the farmhouse. Through environmental analysis we came to know there is no direct competitor here. DEFINE TARGET MARKET Our target market is Kathmandu Valley, STRENGTHS .New idea which will be highly acceptable in the market. We are the trend setters. Our relationships with suppliers are strong enough that offer credit arr angements, flexibility & response to special product requirements. Our commitment is quality to customers. We not only satisfy the customers but also build relationship with them. Competitive advantage of first to enter in the market. WEAKNES Access to capital. Cash flow continues to be unpredictable. All the weaknesses of a company are not the weaknesses; actually they are the opportunities for improvement in the companys functions. So by properly arability the opportunities, they would become you strengths. OPPORTUNITIES Growing market with a significant percentage of our target market. Increase in opportunities beyond the target area We expand our business by targeting

DEVELOP GOALS AND OBJECTIVES GOALS To expand the business. OBJECTIVES: To earn maximum profit To provide incremental value to our customers. Maintain a positive and steady growth of 15% each year. Maintain a gross margin of 25%. MARKETING STRATEGIES Increased awareness & image Our first strategy is about the awareness of our farmhouse. We will increase the awareness among the customers through proper advertising.

MARKETING MIX 1. Product 2. Place 3. Price

4. Promotion 5. People 1.Product Yogurt, ice-cream, Ghee, Butter and Cheese. 2. Place We believe that place is not just about distribution it is about convenience too. If the services are not available where and when people need, it will create a lot of problems for customers. The physical place which we have chosen of our farmhouse Dadhikot Bhaktapur. 3. Price Milk Ghee Curd Cheese Butter 70/ltr 400/ltr 70/ltr 500/kg 650/kg

4. Promotion We will promote our Services through different types of promotions like: Advertising Public relations We need Rs fifty thousand for promotion. Advertising Medias: We have decided to use almost all types of advertising media because we are the new entrants in the market. So, we have to aware and educate people to come with us and their children to get a better Dairy Products with us. Circulate Hand outs Through Cable TV because it has made a major source of advertisement

5. People: We are targeting the child and adult.

IMPLEMENTING THE MARKET PLAN After all above procedure accepted we will implement this marketing plan.

EVALUATING THE MARKET PALN: After implementing if we feel any deficiency in the plan then we evaluate it and again implement it till the desire out come not satisfy us. But its very difficult to again make a market plan till startup. ORGANIZATION PLAN:

Initial finance needed 3,000,000.00( Thirty lacs only) MARKET FORECAST: We operate our business in huge level, targeting the Kathmandu valley here providing all types of milk product. MARKET OPPORTUNITY The consumption of milk is very high . The daily milk intake of kathmandu valley only, is 4lac liter approximately . for milk increases during summers as the consumption of lassi rises due to hot weather. Different value added products like yogurt, ice cream,Ghee,Butter and cheese are also prepared from the raw milk. The processed milk quality and market share has increased considerably provides numerous opportunities to the dairy farm investor to benefit from it. We segment our market on Income bases: AUTHORITY OR CONTROL From of ownership. ROLE AND RESPONSIBILITIES OF MEMBERS. The description about the responsibilities of all the members of the organization including owners and the designers. Each and every member will be responsible to perform their duty according to the specifications. ASSESSMENT RISK We are going to start a farm house in Kathmandu valley at Bhaktapur District. According to our research there is very much needed for standard dairy farm. So In future our business is 100% successful and the chance to failure is zero percent. HIGH COST : We operating our business at very much cost where as our competitor are operating at low cost. Customer can easily offer their products , so this is our one and only weakness. FINANCIAL PLAN There is no such typical financial plan. As, we are making the feasibility report there fore; we have decided to include the prices of different equipment and 1st time salary needed for a farm. Initial finance needed. For 30 lakhs. 200,000.00 (from owner) 2,800,000.00 (from bank )

BUSINESS PLAN The good quality lactating adult animals will be purchased; their milk giving ability will be optimized by giving them quality feed and taking proper care. Selling both to the end consumers as well as to the wholesalers will maximize the profitability of the project.

RAW MATERIALS The main material required at farm are cattle feed, Dry & Green roughage, water and medicines. The cost of feed are detailed below. Daily Feed Requirements Animal Daily Green Fodder Dry Roughage Concentrate Total Requirement (kg) 40.00 5.00 3.18 Cost/kg 0.10 2.00 10.00 Amount 4.00 10.00 31.78 45.78

PRODUCTION PROCESS Dairy animals, mainly cows are purchased from the animal markets. Dairy animals are fed on protein sources (concentrate) along with plenty of green fodder. Animals are milked twice a day i.e. morning and evening. The milk is sold at the farm . The milk price varies according to its quality and the season. DISTRIBUTION CHANNELS It is suggested that milk will be sold on farm door through contractors or people around that area or may be pasteurized at farm by the farmer and then deliver it to the near by city. Following are some of the target clients for a dairy farmer. 1. Local people 2. Milk collection companies 3. Contractors HUMAN RESOURCE REQUIRMENT One farm manager and three workers are required at the farm, their salaries are, Manager 10,000 12 = Rs. 120,000.00 Workers 6000/person 3 workers 12months = Rs.216,000

PROJECT FINANCIALS OPERATIONAL DATA The dairy farm will house 10 cows in the first year, however if expansion is required the Total number will be increased.

FIXED COST The initial investment in terms of capital cost is Rs 1,275,000.00 and includes the items detailed below. ASSETS Building/Infrastructure Machinery & equipment Animal Cost (10 Cows 92,000) Total Capital Cost WORKING CAPITAL The investment in the initial working capital is of Raw material inventory Total Cost(Rs) 1475,000.00 350,000.00 920,000.00 2745,000.00

Rs 300,000.00 00.00

Upfront land lease rental Cash Working Capital Requirement OVERHEAD COSTS/Years In the first year following overhead cost are estimated. Admin and Selling Salaries Misc Expenses Land lease Rent Expenses Office expenses Professional fees (legal, consultants, etc.) Total

20,000.00 80,000 00.00

372,000.00 43,000.00 600,000.00 7,440.00 80,000.00 1,030,440.00

After the description of export list now we explain some other equipment which will be compulsory for further functioning. Computer Table Chair Total 15,000.00 8,000.00 5000.00 28,000.00

Rs.

Finally, there is a very much need for a standardize dairy farm in Kathmandu valley, That provides all the facilities for the milk products. So in future our business is100% successful and the chance of failure is Zero percent (0%). The involvement of risk in our business is zero percent . the above cost is the final version of our farm so no worry about the given cost .we start the farm from 25lakhs Shortly, we are launching big project within 3yrs.outside the valley so it is positive to increase our business. Thank you.