PROJECT REPORT OF A LARGE-SCALE CROSSBRED COW DAIRY FARMPREPARED BYDr. Vivek M. PatilAssistant ProfessorDepartment of Livestock Production Management, Veterinary College, BidarKarnataka Veterinary, Animal & Fisheries Sciences Universityhttp://sites.google.com/site/viveklpm/A OverviewName of the Proprietor vishnukumar thirumalAddress coimbatoreUnit size 30Project Cost (Rs.) 3,048,000Bank Loan (Rs.) 2,286,000Margin Money (Rs.) 762,000Repayment period (years) 5Loan rate of interest (%) 12B Techno-Economic ParametersCost of each cow (Rs.) 40,000Average daily milk yield of each cow (lit) 10Sale price of milk (Rs./lit) 30Irrigated land required for fodder production (acres) 6.00Cost of construction of cow sheds (Rs/sq.ft.) 400Cost of construction of young stock sheds (Rs/sq.ft.) 250Cost of construction of store rooms (Rs/sq.ft.) 200Cost of production/purchase of green fodder (Rs/kg) 0.40Cost of production/purchase of dry fodder (Rs/kg) 3.00Cost of concentrate feed (Rs/kg) 14.00Cost of veterinary aid per animal per year (Rs.) 1000Cost of electricity and water per animal per year (Rs.) 1000Rate of livestock insurance premium (%) 4Annual wages of each farm labourer (Rs.) 36,000Sale price of empty livestock feed gunny bags (Rs.) 8.00Expenditure on rearing of calves will be offset by the income realized fromtheir sale.Heifers will be retained on the farm as replacement stock.Farmyard manure shall be used for fertilizing the fodder plots.C Lactation Chart(cows are purchased in 2 batches at an interval of 5-6 months)Year 1 Year 2 Year 3 Year 4 Year 5No. ofanimalsin milk dry in milk dry in milk dry in milk dry in milk dryFirst Batch 15 4500 975 4500 975 4500 975 4500 975 4500 975Second Batch 15 2700 0 4500 975 4500 975 4500 975 4500 975Total (days) 7200 975 9000 1950 9000 1950 9000 1950 9000 1950D Feed and FodderDailyRequirementYear 1 Year 2 Year 3 Year 4 Year 5Rate/kg in milk dry in milk dry in milk dry in milk dry in milk dry in milk dryGreen fodder 0.40 30.00 25.00 86,400 9,750 108,000 19,500 108,000 19,500 108,000 19,500 108,000 19,500Dry fodder 3.00 4.00 7.00 86,400 20,475 108,000 40,950 108,000 40,950 108,000 40,950 108,000 40,950Concentrates 14.00 4.33 1.00 436,800 13,650 546,000 27,300 546,000 27,300 546,000 27,300 546,000 27,300Total (Rs) 609,600 43,875 762,000 87,750 762,000 87,750 762,000 87,750 762,000 87,750E Investment CostSpecifications Phy. units Unit cost TotalCost of animals 30 40,000 1,200,000Construction of cow shed sq. ft. 2400 400 960,000Construction of young stock sheds sq. ft. 1200 250 300,000Construction of stores/misc rooms sq. ft. 300 200 60,000Cost of milking equipment 1 set 300,000 300,000Cost of liquid milk storage equipment 1 set 75,000 75,000Cost of fodder cutting equipment 1 set 60,000 60,000Cost of standby power supply 1 set 45,000 45,000Cost of misc. equipment 1 set 30 500 15,000Initial fodder cultivation cost acres 6 3,000 18,000Misc. expenses 30 500 15,000Total 3,048,000F Cash Flow Analysis YearsI II III IV V1 Costsa) Capital cost 3,048,000b) Recurring costFeeding during lactation period 609,600 762,000 762,000 762,000 762,000Feeding during dry period 43,875 87,750 87,750 87,750 87,750Veterinary aid 30,000 30,000 30,000 30,000 30,000Cost of electricity & water 30,000 30,000 30,000 30,000 30,000Insurance 48,000 48,000 48,000 48,000 48,000Labour wages 144,000 144,000 144,000 144,000 144,000Total 3,953,475 1,101,750 1,101,750 1,101,750 1,101,7502 BenefitsSale of milk 2,160,000 2,700,000 2,700,000 2,700,000 2,700,000Sale of gunny bags 5,148 6,552 6,552 6,552 6,552Depreciated value of buildings 0 0 0 0 990,000Depreciated value of equipments 0 0 0 0 247,500Closing stock value 0 0 0 0 600,000Total 2,165,148 2,706,552 2,706,552 2,706,552 4,544,0523 DF @ 10% 0.91 0.83 0.75 0.68 0.624 Discounted Costs @ 10% 3,594,068 910,537 827,761 752,510 684,100 6,768,9775 Discounted Benefits @ 10% 1,968,316 2,236,820 2,033,473 1,848,611 2,821,499 10,908,7196 NPW @ 10% 4,139,7427 BCR @ 10% 1.618 DF @ 50% 0.67 0.44 0.30 0.20 0.139 Net Benefits -1,788,327 1,604,802 1,604,802 1,604,802 3,442,30210 Discounted Net Benefits @ 50% -1,192,218 713,245 475,497 316,998 453,307 766,82911 IRR 90%G Repayment ScheduleYear Income ExpensesGrossSurplusEquatedAnnualInstallmentNet SurplusI 2,165,148 905,475 1,259,673 621,792 637,881II 2,706,552 1,101,750 1,604,802 621,792 983,010III 2,706,552 1,101,750 1,604,802 621,792 983,010IV 2,706,552 1,101,750 1,604,802 621,792 983,010V 2,706,552 1,101,750 1,604,802 621,792 983,010Capital Recovery Factor 0.27Date : 5/5/2015 20:16:08Note :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 at dr.vivekmpatil@gmail.comor your nearest Veterinarian.