1. PROJECT REPORT OF A SMALL-SCALE BUFFALO DAIRY FARM
PREPARED BY
Dr. Vivek M. Patil
Assistant Professor
Department of Livestock Production Management, Veterinary College, Bidar
Karnataka Veterinary, Animal & Fisheries Sciences University
http://sites.google.com/site/viveklpm/
A Overview
Name of the Proprietor Ajay Balyan
Address Naguar
Unit size 20
Project Cost (Rs.) 1,348,000
Bank Loan (Rs.) 1,078,400
Margin Money (Rs.) 269,600
Repayment period (years) 0
Loan rate of interest (%) 12
B Techno-Economic Parameters
Cost of each Murrah buffalo (Rs.) 50,000
Average daily milk yield of each buffalo (lit) 20
Sale price of milk (Rs./lit) 30
Irrigated land required for fodder production (acres) 4.00
Covered area required for each animal under loose housing including
80
storage area (sq.ft.)
Cost of construction of livestock shed and store room (Rs/sq.ft.) 200
Cost of production/purchase of green fodder (Rs/kg) 0.40
Cost of production/purchase of dry fodder (Rs/kg) 3.00
Cost of concentrate feed (Rs/kg) 14.00
Cost of veterinary aid per animal per year (Rs.) 500
Cost of electricity and water per animal per year (Rs.) 200
Rate of livestock insurance premium (%) 4
Annual wages of each farm labourer (Rs.) 8,000
Sale price of empty livestock feed gunny bags (Rs.) 8.00
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.
C Lactation Chart
(buffaloes are purchased in 2 batches at an interval of 5-6 months)
Year 1 Year 2 Year 3 Year 4 Year 5
No. of
in milk dry in milk dry in milk dry in milk dry in milk dry
animals
First Batch 10 3000 650 3000 650 2550 1100 2450 1200 2450 1200
Second Batch 10 1800 0 2450 1200 2450 1200 2450 1200 2850 800
Total (days) 4800 650 5450 1850 5000 2300 4900 2400 5300 2000
D Feed and Fodder
Daily
Year 1 Year 2 Year 3 Year 4 Year 5
Requirement
Rate/kg in milk dry in milk dry in milk dry in milk dry in milk dry in milk dry
Green fodder 0.40 32.50 27.50 62,400 7,150 70,850 20,350 70,850 20,350 70,850 20,350 70,850 20,350
Dry fodder 3.00 5.50 5.50 79,200 10,725 89,925 30,525 89,925 30,525 89,925 30,525 89,925 30,525
Concentrates 14.00 5.50 1.50 369,600 13,650 419,650 38,850 419,650 38,850 419,650 38,850 419,650 38,850
Total (Rs) 511,200 31,525 580,425 89,725 580,425 89,725 580,425 89,725 580,425 89,725
E Investment Cost
SpecificationsPhy. units Unit cost Total
Cost of animals 20 50,000 1,000,000
Construction of buffalo shed and storage area sq. ft. 1600 200 320,000
Equipment (chains, ropes, baskets, milk pails, manual chaff cutter etc.) 20 500 10,000
Initial fodder cultivation cost acres 4 3,000 12,000
Misc. expenses 20 300 6,000
Total 1,348,000
F Cash Flow Analysis Years

2. I II III IV V
1 Costs
a) Capital cost 1,348,000
b) Recurring cost
Feeding during lactation period 511,200 580,425 580,425 580,425 580,425
Feeding during dry period 31,525 89,725 89,725 89,725 89,725
Veterinary aid 10,000 10,000 10,000 10,000 10,000
Cost of electricity & water 4,000 4,000 4,000 4,000 4,000
Insurance 40,000 40,000 40,000 40,000 40,000
Labour wages 32,000 32,000 32,000 32,000 32,000
Total 1,976,725 756,150 756,150 756,150 756,150
2 Benefits
Sale of milk 2,880,000 3,270,000 3,000,000 2,940,000 3,180,000
Sale of gunny bags 4,380 5,240 4,952 4,888 5,144
Depreciated value of buildings 0 0 0 0 240,000
Depreciated value of equipments 0 0 0 0 5,000
Closing stock value 0 0 0 0 500,000
Total 2,884,380 3,275,240 3,004,952 2,944,888 3,930,144
3 DF @ 10% 0.91 0.83 0.75 0.68 0.62
4 Discounted Costs @ 10% 1,797,023 624,917 568,107 516,461 469,510 3,976,017
5 Discounted Benefits @ 10% 2,622,164 2,706,810 2,257,665 2,011,398 2,440,310 12,038,347
6 NPW @ 10% 8,062,330
7 BCR @ 10% 3.03
8 DF @ 50% 0.67 0.44 0.30 0.20 0.13
9 Net Benefits 907,655 2,519,090 2,248,802 2,188,738 3,173,994
10 Discounted Net Benefits @ 50% 605,103 1,119,596 666,312 432,343 417,975 3,241,328
11 IRR #NUM!
G Repayment Schedule
Equated
Gross Net
Year Income Expenses Annual
Surplus Installment Surplus
I 2,884,380 628,725 2,255,655 #DIV/0! #DIV/0!
II 3,275,240 756,150 2,519,090 #DIV/0! #DIV/0!
III 3,004,952 756,150 2,248,802 #DIV/0! #DIV/0!
IV 2,944,888 756,150 2,188,738 #DIV/0! #DIV/0!
V 3,185,144 756,150 2,428,994 #DIV/0! #DIV/0!
Capital Recovery Factor #DIV/0!
Date : 6/13/2012 17:29:36
Note :
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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.