Detailed Project Report for Establishment of Dairy Farm of 10 Desi Cows

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Introduction

Dairying is an important source of subsidiary financial gain to small/marginal farmers and agricultural labourers. In addition to milk and milk products, the manure from animal’s supplies organic matter for improving soil fertility and crop yields. The surplus fodder and agricultural by-products are gainfully used for feeding the animals. Since agriculture is usually seasonal, there is a clear chance for finding employment throughout the year for several persons through dairying.

Scope for Dairy Farming

India possess the largest livestock population in the world. It accounts for about 57.3% of the world’s buffalo population and 14.7% of the cattle population. The total milk production in the country is over 200 million ton per annum at the end of the Eleventh Plan (2019-20) and the demand is expected to be 220 million ton by 2025. To attain this demand annual growth rate in milk production has to be increased from the present 2.5% to 5%. The Annual growth rate for milk production is naerly 6% in 2019-20. Thus, there is an incredible scope/potential for increasing the milk production through profitable dairy farming.

National Importance and DESI Breeds Conservation

India is home to large diversified cattle genetic resources, having more than 190.9 million cattle and so far forty three registered desi cattle breeds. These breeds are specially adapted to different agro-climatic conditions and their genetic diversity is well established due to the process of domestication over the centuries. There is decrease of 4.10% in cattle population and 3.14% in cattle genetic resources of India as compared to the later livestock census. The crossbred population has been increased by 20.18% during the period of last census while population of desi cattle has been decreased by 8.94% during the same duration. The reasons for depletion of breeds includes crossbreeding with exotic breeds, economically less viable, loosing utility, reduction in herd size and the large scale mechanization of agricultural operation. The native breeds need to be conserved for genetic insurance in future, scientific study, as a part of our ecosystem, cultural and ethical requirements and for energy sources in future. The indigenous breeds of cattle posses various unique characteristics such as the presence of unique genetic variation in HSP70 gene family, carry a ‘thermometer gene’ and presence of A2 allelic variant in cow milk, which makes them well adapted to the tropical climate.

The conservation includes the preservation along with up-gradation (improvement) of the genetic potential and management of a breed for use in future. The effective management of indigenous cattle resources includes identification, characterization, evaluation, documentation and conservation. The future strategy should be to combine genetic improvement and conservation.

The demands for food products derived from animal are rapidly increasing around the growing population of world with more of consumer specified demands i.e., hygiene and quality. However, conservation of desi cows is also much important instead commercial food products manufacturing.  Hence new scientific farming systems which yield more production and profits with sustainability have to be practiced

Indigenous milch Breeds

  1. Gir
  • This breed is called as Bhadawari, Desan, Gujarati, Kathiawari, Sorthi, and Surati.
  • Originated in Gir forests of South Kathiawar in Gujarat also found in Maharashtra and adjacent Rajasthan.
  • Basic colours of skin are white with dark red or chocolate-brown patches or sometimes black or purely red.
  • Horns are peculiarly curved, giving a ‘half moon’ appearance.
  • Milk yield ranges from 1600-1800 kgs per lactation.
  • This breed is known for its hardiness and disease resistance.
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Photograph by- Harvinder Chandigarh, Sahiwal, CC BY-SA 4.0
  1. Sahiwal
  • Originated in Montgomery region of undivided India.
  • This breed otherwise known as Lola (loose skin), Lambi Bar, Montgomery, Multani.
  • Best indigenous dairy breed.
  • Reddish dun or pale red in colour, sometimes flashed with white patches.
  • Heavy breed with symmetrical body having loose skin.
  • The average milk yield of this breed is between 1400 and 2500 kgs per lactation.
  1. Kankrej
  • It is otherwise called as Wadad or Waged, Wadhiar.
  • Originated from Southeast Rann of Kutch of Gujarat and adjoining Rajasthan.
  • The horns are lyre-shaped.
  • Colour of the animal varies from silver-grey to iron-grey or steel black.
  • The gait of Kankrej is peculiar called as 1 ¼ paces (sawai chal).
  • Kankrej is valued for fast, powerful, draught cattle. Useful in ploughing and carting.
  • The cows are good milkers, yielding about 1400 kgs per lactation.

Production Technology

  1. Project Location

Desi cow breeds farm will be setup where conservation of desi cows is going on.

  1. Housing

At Low cost galvanized iron sheet roof housing will be constructed by establishing iron pillars. Floor and side walls will be made of concrete material. Average floor space for Cow – 55 sq.ft and Calf- 20 sq.ft.

  1. Feed and Fodder cultivation

Fertile land with assured irrigation facilities is available so that fodder crops could be successfully raised and abundant good quality green fodders will be made available for animal feeding throughout the year.

  1. Water

Good quality fresh water for animal drinking and for the cleaning, washing etc. is available.

  1. Labour

Honest, economic and regular supplies of labours are available.

  1. Veterinary Aid

Experienced Veterinary doctor is working the organization which has proposed project.

  1. Market potential

Milk Consumption Pattern in India: Liquid milk 46%, Ghee 28%, Butter 6.5%, Curd 7%, Khoa 5.5%, Milk Powder 3.6%, Cheese 2% and other products 1.6%.

Majority of the Indian Population consume milk. Purchasing power of the people is on the rise and there is a distinct shift in consumption patterns and desi ghee is now becoming almost an essential part of the diet as it is derived from A2 milk and people are getting attracted towards desi animals products. Availability of desi ghee is less than the demand. It requires smaller investments and is not as risky a business proposition as compared to milk where it is highly perishable and need to reach market daily. Sale of desi ghee is never a problem for the above mentioned reasons. The demand for desi milk and ghee is increasing faster. Hence it becomes obvious to supply what is needed in the market.

  1. Export Potential

The scope for exports too is huge, however for selling desi ghee abroad one has to adhere to strict phyto-sanitary conditions and standards of the respective nations.

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Conclusion

With the above details provided the proposed desi cow dairy unit is technically feasible and financially viable.

Project Report for Establishment Dairy farm of 10 Desi Cows

I. Capital Cost

A. Shed Construction

SN. Particulars Unit

(sq. ft)

Rate (Rs.) Area

(sq. ft)

Total (Rs.)
1. 10 Cows@ 65 sq. ft/Cow 1 400 650 2,60,000
2. Calves Shed

5 Calves @20 sq.ft/calf

1 400 100 40,000
3. Pregnant Cow Shed

2 Pregnant Cows @ 75 sq.ft/cow

1 400 150 60,000
4. Milking Parlour

2 Milking Cows @ 60 sq. ft/cow

1 400 120 48,000
Total 1020 4,08,000

B. Cow Purchase

SN. Particulars Unit Rate (Rs.) Quantity (Nos) Total (Rs.)
1. Gir Cows 1 65,000 4 2,60,000
2. Kankrej Cows 1 65,000 4 2,60,000
3. Sahiwal Cows 1 65,000 2 1,30,000
4. Transportation 1 18,000 10 1,80,000
Total 8,30,000

C. Equipments

SN. Particulars Rate

(Rs.)

Quantity (Nos) Total

(Rs.)

1. 10 Cows @ Rs.1000/- for each cow 1000 10 10000
2. Rubber Mat 1000 10 10000
3. Butter Making Machine 30000 1 30000
4. Ghee Boiler 5000 1 5000
Total 55,000

D. FSSAI Registration and Marketing Licensing

SN. Particulars Total (Rs.)
1. FSSAI Registration 3,000
2. FSSAI Licensing Charges 3,000
Total 6,000

Total Capital Cost (A+B+C+D) = Rs.12, 99,000

II. Herd Projection (No. of livestock increase projection)

Years 1 2 3 4 5 6
Cow 10 10 10 15 18 22
Heifer 3 6 3 6 7
Female Calves 4 4 4 7 8
Male Calves 4 4 4 7 8

III. Recurring Cost

SN. Particulars Unit Rate (Rs.) Quantity (Nos) Total (Rs.)
1. Fodder 10 Cows @25 Kg/Cow Ton 0.3 100 30,000
2. Dry Fodder 10 Cows

(@ 5 Kg/Cow)

Kg 5 50 18,250
3. Concentrate
Lactation 300 days

10 Cows @4 Kg/Cow

Kg 23 12,000 2,76,000
Dry Period 65 days

10 Cows @1.5 Kg/Cow

Kg

 

23 975 22,425
Total Feeding Cost 3,46,675
4. Insurance of animal cost

@ 4.5% – 2.5%

(Premium – KMF Subsidy)

1,300

 

10 13000
5. Veterinary Expenses 1000 10 10000
6. Water 10000
7. Electricity 10000
8. Labour Shift wise 9,000 2 2,16,000
9. Marketing Charges

(Glass jar + label + transportation)

50 700 35,000
10. Advertising charges 3000 1 3000
Total Recurring Cost 6,43,675

Abstract

Capital cost: Rs. 12, 99,000   

Recurring cost: Rs. 6, 43,675

Total: Rs. 19, 42,675

IV. Economics

SN Particulars Quantity Unit (Rs.) Ist Year

Total (Rs.)

IInd Year

Total (Rs.)

IIIrd Year

Total (Rs.)

A. Income    
1. Sale of Ghee

(1,700 Ltrs milk/cow/lactation)

680 Kg 1400 9,52,000 9,52,000 9,52,000
2. Sale of Manure

(1 ton/cow/year)

10 8 80,000 80,000 80,000
3. Sale of Gomutra (100 L/Cow/Yr) 10 20 20,000 20,000 20,000
Total-A 10,52,000 10,52,000 10,52,000
B. Expenditure    
1. Feeding cost 3,46,675 3,46,675 3,46,675
2. Insurance 13,000 13,000 13,000
3. Veterinary Expenses 10,000 10,000 10,000
4. Water 10,000 10,000 10,000
5. Electricity 10,000 10,000 10,000
6. Labour 2,16,000 2,16,000 2,16,000
7. Marketing charges (Glass jar + label + transportation) 35,000 35,000 35,000
8. FSSAI renewal charges 3,000 3,000 3,000
Total-B 6,43,675 6,43,675 6,43,675
Gross Profit (A-B) 4,08,325 4,08,325 4,08,325
SN Particulars IV Year V Year
Qty(Kg) Unit (Rs.) Total (Rs.) Qty(Kg) Unit (Rs.) Total (Rs.)
A. Income
1. Sale of Ghee

1,700 Lts milk/cow/lactation

1,020 1,600 16,32,000 1,224 1,600 19,58,400
2. Sale of Manure

(1 ton/cow/year)

15 8 1,20,000 18 8 1,44,000
3. Sale of Gomutra

(100 Ltr/Cow/Year)

15 20 30,000 18 20 36,000
Total-A 17,82,000      
B. Expenditure
1. Feeding cost 5,19,000 6,24,015
2. Insurance 19,500 23,400
3. Veterinary Expenses 15,000 18,000
4. Water 10,000 10,000
5. Electricity 10,000 10,000
6. Labour 2,40,000 2,40,000
7. Marketing charges (Glass jar + label + transportation) 52,500 62,500
8. FSSAI renewal charges 3,000 3,000
Total-B 8,69,000     9,88,215
Gross Profit (A-B) 9,13,000      11,50,185    

V. Net Profit

SN. Particulars       Years ( Rs.)
1 2 3 4 5
1. Gross Profit 4,08,325 4,08,325 4,08,325 9,13,000 11,50,185
2. Interest @ 8% 1,55,414 1,24,331 93,249 62,167 31,083
3. Repayment 3,88,535 3,88,535 3,88,535 3,88,535 3,88,535
Net Profit (1-(2+3)) -1,35,624 -1,04,541 -73,249 4,62,298 7,30,567

VI. Repayment Schedule in ( Rs.)

Year Loan Amount Installment Interest @ 8% p.a.
I 19, 42,675 3,88,535 1,55,414
II 15,54,140 3,88,535 1,24,331
III 11,65,605 3,88,535 93,249
IV 7,77,070 3,88,535 62,167
V 3,88,535 3,88,535 31,083
Total 19, 42,675 4,66,244

VII. Sensitivity Test in ( Rs.)

  Profit Loss
Year Actual 10% 20% 10% 20% 50%
I 4,08,325 4,49,157 4,89,990 3,67,492 3,26,660 2,04,162
II 4,08,325 4,49,157 4,89,990 3,67,492 3,26,660 2,04,162
III 4,08,325 4,49,157 4,89,990 3,67,492 3,26,660 2,04,162
IV 9,13,000 10,04,300 10,95,600 8,21,700 7,30,400 4,56,500
V 11,50,185 12,65,204 13,80,222 10,35,167 9,20,148 5,75,092
Total 32,88,160 36,16,977 39,45,792 29,59,345 26,30,528 16,44,080

VIII. Stock clearance if we want to close the running project

Particulars Numbers Rate Total amount
Total cows 22 @ 50,000 11,00,000
Heifers 7 @ 40,000 2,80,000
Infrastructure (50%) 2,31,500
Total 16,11,500

IX. Model Layout for Construction of Shed Head to Head Method

Head to Head Method Cow Shed

dairy farm

 Modifications will be according to our locality needs such as manger and walking space.

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4 Comments

  1. Sir, my name is Anurag Mishra, I am doing dairy work for a long time, now I want to increase it and make it bigger, I have also done diploma from NDRI Karnal as experience but can’t do any bank loan.

  2. Dear Dr Rakshit Raj
    Congratulations to you for very good informative model project with all required information. This would help the students for learning how to make a project. If you share your paper, I would like to share with my students.
    Thanks & regards

  3. Very good Information.. complete knowledge to start a dairy farm. Thank you Doctor and epashupalan for such article..🙏🙏🙏

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