PROJECT REPORT

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Cost of rearing calves not considered as it will be repealed by their sale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

Techno economic parameters
Bred of buffalo Murrah
No. of Animals 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
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) 5
Veterinary aid/animal/ year (Rs.) 1000
Cost of concentrate feed (Rs./kg) 12
Cost of dry fodder (Rs./kg) 1
Rate of interest (%) 12
Repayment period (years) 6
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) Cost (Rs.)
Quantity
(kg)
Cost (Rs.)
i Concentrate feed 12 6.5 78 1 12
ii Green fodder 1 25 Home
grown
20 Home
grown
iii Dry fodder 2 6 12 5 10
Total 90 22

feeding chart
Lactation chart/Dry chart
Sr.No Particulars Years
I II III IV V Vi vii
i) Lactation
Days
10500 12125 12125 12125 11000 12125 12125
ii) Dry Days 3125 6125 6125 7125 7250 6125 5375





Project cost and bank loan Cost. In Rs.
1. Capital cost
2. Covered area for 50 Buffaloes @
30sq.ft/bufalo@200/sqft
300000
3. Covered area 50calves 15 sq.ft./calf @200/sq.ft. 150000
4. Cost of construction of boundary & manger for open space 250000
5. Cost of construction store room 200 sq.ft @250 per sq.ft 50000
6. 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
2750000
8. Cost of generator set 80000
9. Cost of milking machine with accessories & installation
charge
430000
10. Cost of dairy appliance @Rs.1000/Buffalo 50000
11. Cost of bulk cooler of 500 liter capacity 270000
12. Cost of bore well with pump set 70000
13. Electrification 30000
14. Cost of over head tank & pipe line 70000
15. Cost of chaff cutter 90000
Total 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 68750
3. Cost of fodder cultivation in 10 acres of land for one
session

50000
4. Cost of medicine vaccine, electricity for the first month for
first month
10000
5. Contingency 11250
6. Total recurring expenditure
207500


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 2 3 4 5 6
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
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 2 3 4 5 6
Capital
Costs
4652500
Recurring
Cost
1541250 1753500 1753500 1775500 1677000 1753500
Total Costs 6193750 1753500 1753500 1775500 1677000 1753500
Benefit 3794270 4381980 4381980 4382180 3975750 5915980
Net Benefit -2399480 2628480 2628480 2606680 2298750 4162480

PW Costs @ 15% 10471721.91
PW Benefits @ 15% 16533943.58

NPW 6062221.67

B.C. Ratio 1.578:1
I.R.R. (%) >25%
Repayment schedule
Year Loan
Outstanding
Gross
Surplus
Interest Principal Total
Repayment
Surplus
1 3645000 2253020 437400 445000 882400 1370620
2 3200000 2628480 384000 600000 984000 1644480
3 2600000 2628480 312000 700000 1012000 1616480
4 1900000 2628480 228000 800000 1028000 1600480
5 1100000 2298750 132000 600000 732000 1566750
6 500000 4162480 60000 500000 560000 3602480
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.