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Homeorganic-farmingA buffalo dairy farm Project Report: Costs and Profits

A buffalo dairy farm Project Report: Costs and Profits

Buffalo Dairy Farm: Agricultural labourers and small/marginal farmers rely heavily on dairy farming for their livelihoods. Animal manure is another good source of organic matter for increasing soil fertility and crop yields. Gobar Gas from the waste is used as fuel for domestic objects and for drawing water from the well. Feeding the animals with surplus fodder and farming byproducts is a valuable use of surplus raw materials. Most buffalo farms and transportation operations are powered by bullocks. Agricultural work is mostly seasonal, so buffalo dairy farming provides employment throughout the year for many people. Throughout the year, the dairy is also employed. It is small and marginal farmers as well as landless workers who benefit most from dairy businesses.

Dairy Farm Project Report

 

The livestock population of India is the largest in the world, and the country is thriving. The country is home to 57.3% of the world’s buffalo population and 14.7% of its cattle population. It is therefore possible to significantly increase milk production through Murrah buffalo farming. We will give you all the buffalo farming tips in this buffalo farming project report. A buffalo farm can be started with its help.

Financial Assistance from Banks for Buffalo Farming

 

Buffalo Farming
Buffalo Farming

In the case of dairy projects with large outlays, detailed project reports must be prepared. A capital asset item could be the purchase of dairy animals, construction of sheds, or equipment purchase. The initial feeding cost is capitalised and loaned as a term loan. A loan can be taken out for the cost of land improvement, digging, fencing of wells, commissioning of diesel engines/pump sets, servants’ quarters, godowns, electricity connections, transport vehicles, milk processing facilities, etc.

 

Bank Loan Application for Buffalo Farming Project

 

A beneficiary can prepare a buffalo farm project report after consulting with local technical personnel at the State Animal Husbandry Department, DRDA, Dairy Co-operative Society/Union/ Federation/commercial dairy farmers. Ideally, beneficiaries should also visit dairy farms in the area and discuss the profitability of dairy farming with government/agricultural university/military dairy farms. Experience in the buffalo farming business and good practical training are highly desirable. Dairy cooperative societies, if present in villages, would provide all necessary support, particularly for marketing fluid milk. Dairy farms should be located near veterinary clinics, artificial insemination centers, and such societies.

Read more : Agriculture related article.

A Dairy Farm Project Report provides details

 

A dairy farm project report should include the following technical, financial, and managerial information.

1. Technical Needs for Buffalo Business Plan

 

Technical Needs for Buffalo Business Plan
Technical Needs for Buffalo Business Plan

  • Land & land development (including location, proximity, area, suitability of the site for the road, site maps, etc.)

  • Proposed capacity / No. of milch animals

  • Civil structures (Sheds, office quarters, storeroom, milk room, staff room etc.)

  • Equipment, Machinery and Plant (Chaff cutter, Feed grinder and mixer, Milking pails/milk cans, Silo pit, Milking machine, Biogas plant, Equipment for manufacture of products, Bulk coolers, Truck/van)

  • Housing Type of housing (age range – Adults, calves (no more than 1 year old), and heifers (1-3 years old)

  • Animals (Source of purchase, Proposed species, Proposed breed, Place of purchase, Distance, Cost of buffalo)

  • Production parameters (Milk yield (Ltrs. per day), Order of lactation, Conception rate, Lactation days, Dry days, Mortality(%) – Adults, Youngstock)

  • Breeding Facilities (Capacities, Availability of semen, Staffing, Source, Expenditures per animal/year)

  • Feeding (Source of fodder and feed – Dry fodder, Green fodder, Concentrates. Fodder crop rotations- Summer, Kharif, Rabi. Fodder cultivation expenses, costs and Requirement)

  • Veterinary Aid Source (Services available, Location-Distance (km), Facilities available, If own arrangements are made, Employed a stockman/veterinary doctor/consultant, Periodicity of visits, The cost of one animal per year)

  • Water (the source, availability, quality, cleaning and fodder production, the type of structure, the design, and the cost)

  • Electricity (Source, connected load, approval from SEB, problems with power outages, generator arrangements)

  • Marketing of other products (Age, price expected, place of sale, Manure qty./animal, price per unit (Rs.), Empty gunny bags-number, cost per bag (Rs.)

  • Marketing of milk (Source of sales, Distance (km. ), Price Realized – (Rs. per liter), Place of Disposal, Basis of Payment, Periodicity of Payment

2. Financial Needs to Start a Buffalo Dairy Farm

 

  • Financial viability (Net Present Value, Internal Rate of Return, Benefit-Cost Ratio)

  • The financial position of the borrowers (income tax, debt equity ratio and other tax obligations paid up to date, profitability ratios, current audit)

  • Lending Terms (Rate of Interest, Nature of Security, Repayment Period, Grace Period)

3. Managerial Overview in Buffalo Farming India


 ( A ) Borrower’s profile:

 

  • Individuals/cooperative societies/corporations/partnerships/companies/others

  • The proposed capability for handling business

  • Experience in the proposed activity

  • Soundness of the financial system

  • Qualifications specific to a particular field

dequacy of managerial/technical staff

(B) Others:

 

  • Financial institution’s name

  • Providing training facilities for buffalo farmers

  • State and federal government support is available

  • If there are any regulatory approvals, etc.

4. Appraisal of the Project Report for a Dairy Farm

You should present the scheme to your nearest bank branch. The bank’s officer can assist in preparing the plan or completing the prescribed application form. Afterward, the bank will assess the scheme’s technical feasibility and financial viability.

5. Sanction and Disbursement of Bank Loan

 

The bank approves the scheme after ensuring its financial viability and technical feasibility. A loan is disbursed in kind in 2 to 3 stages in exchange for the creation of specific assets, such as the building of a buffalo shed, the purchase of equipment and machinery, the purchase of animals, and the initial purchase of feeds/fodders. The bank follows up constantly on the end-use of the funds.

6. Dairy Farm Project Report: General Lending Terms


Outlay:
Depending on the local circumstances, the unit size, and the elements included in the project, the cost of the scheme will vary. The outlay can be calculated based on prevailing market prices.

Margin Money: Between 10 and 25% of the loan amount is the margin, depending on the class of the borrower.

Interest Rate for an ultimate borrower: It is up to the banks to decide the interest rates within the general guidelines. The interest rate assumed for the model projects is 12 % p.a. for calculating their economic viability and bankability.

Security:  Security will be as per RBI guidelines issued from time to time.

Loan repayment period: A scheme’s repayment period is determined by its gross surplus. Loans are repaid in convenient monthly or quarterly installments, usually within five to seven years.

Insurance: Depending on the circumstances, either annual policies or long term policies may be taken out to protect the animals and capital assets.

7. Economics of Dairy Farming

 

DairyFarming
DairyFarming

The following is a model buffalo farming project for dairy farming in India with 10 buffalo. The cost of inputs and outputs, as well as field parameters, are shown here. The first thing we should do is look at buffalo farming information.

( A ). The cost of buffalo farming in India
Cost of buffaloes 5,00,000
Cost of transportation 10,000
Animal shed’s construction 60,000
Calf shed’s construction 24,000
Chaff cutter and

Equipment’s cost

60,000
Total 6,54,000
 
 
(B).The Techno-Economic Parameters in the Dairy Farm Project Report
Type of Animal Graded Murrah Buffalo
No. of Animals 10
No. of animals/batch 5
Murrah buffalo price (Rs./animal) 50,000
Transportation Cost/Animal 1,000
Cost of culled animal 5,000
Average Milk Yield (litre/day) 10
Cost of construction per sqft (Rs.) 120
Floor space (sqft) per adult animal 50
Floor space (sqft) per calf 20
Cost of chaff cutter (power-operated) (Rs.) 50,000
Cost of equipment per animal (Rs.) 1,000
Veterinary aid/animal/ year (Rs.) 1,000
Insurance premium (% per annum) 5
Concentrate feed quantity in one bag(kgs.) 50
Cost of green fodder (Rs./kg) 1
Cost of concentrate feed (Rs./kg) 12
Cost of dry fodder (Rs./kg) 2
Salary of labourer per month (Rs.) 4,500
No. of labourers 1
Electricity cost and water/animal/year (Rs.) 150
The selling price of milk/litre (Rs./litre) 26
The sale price of gunny bags (Rs.per bag) 10
Margin (%) 25
Rate of interest (%) 12
Repayment period (years) 5
Lactation days 270
Dry days 150
 
(C) Indian Buffalo Dairy Farming Feeding Schedule
Type of

feed

Lactation Dry
Price (Rs.) Qty. (kg) Cost Per Day (Rs.) Qty. (kg) Cost Per Day (Rs.)
Concentrate

Feed

12 5 60 2 24
Green Fodder 1 25 25 20 20
Dry Fodder 2 4 8 5 10
Total  93 54
 

ii) Total Concentrate Feed Consumed (Kgs.)

Year Lactation Dry Total No. of Gunny Bags
Year 1 8,250 300 8,550 171
Year 2 11,250 2,700 13,950 279
Year 3 11,250 2,700 13,950 279
Year 4 12,000 2,400 14,400 288
Year 5 12,000 2,400 14,400 288

iii) Dairy Farm / Animal Project Report Lactation Chart

 

Year I Batch II Batch
Lactation days Dry days Lactation

days

Dry days
I 240 30 90 0
II 240 120 210 150
III 210 150 240 120
IV 210 150 270 90
V 210 150 270 90

 

(D). An analysis of the economics of the Murrah Buffaloes Dairy Farm Project
Particulars Years
1st 2nd 3rd 4th 5th
Sale of Milk 4,29,000 5,85,000 5,85,000 5,85,000 6,24,000
Sale of Gunny bags 1,710 2,790 2,790 2,880 2,880
Total 4,30,710 5,87,790 5,87,790 5,87,880 6,26,880
Cost of feeding during

lactation

1,53,450 2,09,250 2,09,250 2,23,200 2,23,200
Cost of feeding during dry

period

8,100 72,900 72,900 64,800 64,800
Veterinary aid and breeding

charges

10,000 10,000 10,000 10,000 10,000
Labour charges 54,000 54,000 54,000 54,000 54,000
Electricity and misc. charges 1,500 1,500 1,500 1,500 1,500
Insurance charges 25,000 25,000 25,000 25,000 25,000
Total 2,52,050 3,72,650 3,72,650 3,78,500 3,78,500
Surplus  1,78,660 2,15,140 2,15,140 2,09,380 2,48,380
 
( E ). An analysis of the Buffalo Dairy Farm Project’s BCR and IRR
1st 2nd 3rd 4th 5th
Capital

Costs

6,54,000
Recurring

Cost

2,52,050 3,72,650 3,72,650 3,78,500 3,78,500
Total

Costs

9,06,050 3,72,650 3,72,650 3,78,500 3,78,500
Buffalo Farming Profit 4,30,710 5,87,790 5,87,790 5,87,880 6,26,880
Net

Buffalo Farming Profit 

-4,75,340 2,15,140 2,15,140 2,09,380 2,48,380
 

Profit margin calculation in dairy farming business = Total Earnings  – Total Cost = 8,60,560 – 4,75,340 = 3,85,220

Total Earnings of 5 years = 2,15,140 + 2,15,140 + 2,15,140 + 2,15,140 = 8,60,560

Note: There may be changes to the information provided over time, as it is provided for educational purposes only.

Bhumika

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