FARM MODEL PROJECT OF DAIRY UNIT OF 10 BUFFALOES

Owner:-

Address: - (Village), (Mandal),

(Dist)

Name of the Bank: -

Scheme: .

TECHNO-FINANCIAL ASSUMPTIONS
Components:-
Type Of Animal Buffaloes
No of animals 10
Cost of animal( including transportation and insurance) (Rs/-) 40,000
Average milk yield (liters/day) 10
Selling price of milk/lit (Rs/-) 30
Sale of manure/animal/year (Rs/-) 1500
Culled value/ animal at the end of fifth lactation (Rs/-) 20,000
Veterinary aid /animal/year 500
Cost of Electricity /Animal/Year 500
Rate of interest (%) 12
Residual value of shed and equipment to be taken(yes/no) N0
Repayment period(years) 5
% Of net surplus towards repayment 25
 Feeding Schedule:-
Lactation Period Dry Period &
Quantity(Kg) Cost Quantity(Kg) Cost
i.Concentrate Feed (Rs.10/Kg)
For milk (1 kg/3 litre) 4 40 0 0
For Maintenance+preg. 1 10 1 10
ii. Green Fodder 25 0 25 0
iii. Dry Fodder(Rs.3/Kg) 5 0 5 0

Particulars Cost (Rs.)

Capital Cost
Cost of Murrah Buffaloes including transport cost & Insurance cost (10animals; 4,00,000
Rs. 40,000 each)
Shed for adult animals (40 sq.ft/animal; Rs. 80/sq.ft) 48,000
Equipment cost 25,000
Total 4,73,000

Based on the Norms the funding for dairy unit was as follows
Total Project Cost 4,73,000

Margin Money (Borrower/company) 47,300

Bank Loan 4,25,700

Based on an inter-calving period of 400 days (250 lact.days + 150 dry days), the
lactation chart for the animal farm is given below.
 Year I Batch II Batch Total
Lactation Dry days Lactation Dry Lactation days Dry days
days days days
I 1250 575 900 0 2150 575
II 1400 425 1075 750 2475 1175
III 1325 500 1075 750 2400 1250
IV 1075 750 1075 750 2150 1500
V 1075 750 1325 500 2400 1250

Projected Profitability:-

Particulars I year II year III year IV year V year

Income:
By sale of Milk 6,45,000 7,42,500 7,20,000 6,45,000 7,20,000

By sale of Manure 11,250 15,000 15,000 15,000 15,000

Sale of Calves 32,000 32,000 32,000 32,000 32,000

Total 6,88,250 7,89,500 7,67,000 6,92,000 7,67,000

Expenditure:
Concentrated feed 1,14,500 1,40,250 1,38,500 1,28,500 1,36,000

On Veterinary Aid 3,750 5,000 5,000 5,000 5,000

Insurance 5,000 5,000 5,000 5,000 5,000
Total 1,23,250 1,50,250 1,48,500 1,38,500 1,46,000

Net Income 5,65,000 6,39,250 6,18,500 5,53,500 6,21,000

 Financial Analysis:-

Particulars I year II year III year IV year V year

Cost:
Capital Cost 4,73,000

Recurring cost 1,23,250 1,50,250 1,48,500 1,38,500 1,46,000

Total Cost 5,96,250 1,50,250 1,48,500 1,38,500 1,46,000

Benefits 6,88,250 7,89,500 7,67,000 6,92,000 7,67,000

Residual value 2,00,000

Total Benefit 6,88,250 7,89,500 7,67,000 6,92,000 9,67,000

Net Benefit 92,000 6,39,250 6,18,500 5,53,500 8,21,000

Discount Factor at 15 % 0.87 0.76 0.66 0.57 0.50

BCR 3: 1
NPV 18,38,759
IRR >90%

Repayment Period:-

Year Loan Interest Net Repayment Total Repayment Net

Outstanding (12%) Profit of Principal Surplus

1 4,25,700 51,084 5,65,000 85,140 1,36,224 4,28,776

2 3,40,560 40,867 6,39,250 85,140 1,26,007 5,13,243

3 2,55,420 30,650 6,18,500 85,140 1,15,790 5,02,710

4 1,70,280 20,434 5,53,500 85,140 1,05,574 4,47,926

5 85,140 10,217 6,21,000 85,140 95,357 5,25,643