During Establishment of a Farm:

Composition of a 100 cows dairy herd: 60-65 numbers of Cows in Milk and 35-40 numbers of
Dry Cows.

During 1st year of farming :

Male Calves under 1 year 31

Female calves under 1 year 31

( N.B: Loss of calves have been taken into consideration)

During 2nd year of farming:

Male calves under 1 year 31

Female calves under 1 year 31
Male calves under 2 year 30
Female calves under 2 year 30
Selling price of 30 male calves @ Tk 30,000= 30,000 x 30 9,00000

During 3rd year of farming:

Male calves under 1 year 31

Female calves under 1 year 31
Male calves under 2 year 30
Female calves under 2 year 30
Selling price of 30 male calves @ Tk 30,000 = 30,000 x 30 9,00000
Heifer under 3 years 30
Replacing 20 Heifer cows and selling price of rest 10 heifers @ Tk 35,000= 3,50,000
35,000×10
Cull Cows:Selling Price 20 culled cows @ Tk 35,000 = 35,000 x 20 7,00000
Total Income from surplus Livestock during 3rd year of farming= ( 9,00000 + 28,50,000
9,00000+ 3,50,000+ 7,00000)
During 4th year of farming: Same as shown in 3rd year of farming.

A. Fixed cost:

1. Land : 1.8 Acre for establishing Farm. We assume that we have land.
2. Livestock: 100 Shahiwal cross breed @ 80,000= 80,000 x 100 80,00000
3. Building :
a) Building cost for 65 cows ; 45 sq.ft per cow total 2925 sq.ft @ 600/sq.ft (2925 17,55,000
x 600)
b) Stanchion burn per cow 5000 for 65 cows ( 65 x 5000 ) 3,25,000
c) Baby calf shed for 100 calves-30sq./calf-total 3000 sq.ft @Tk 300/sq.ft 9,00000
(3000×300)
d) Heifer shed for 30 heifer 30 sq.ft/Heifer total 900 sq.ft @ Tk 400 (900×400) 3,60,000
e) Maternity shed for 5 cows (23’ x 8’ ) = 184 sq.ft @ Tk 750 1,38,000
f) Isolation Box ( 30’ x 8 ‘ ) = 240 sq.ft @ Tk 550 1,32,000
g) Feed storage and mixing room: (23’ x 15’) = 345 sq. ft @ Tk 650 2, 24,000
h) Office room: (30’ x 25’) = 750 sq.ft @ Tk 700 5,25,000
Total Building cost 43, 59,000
4. Utensils, Equipments, machineries @ furniture
a) Dairy Utensils 20,000
b) Others instruments 10,000
c) Vehicles 12,00000
d) Motor 12,000
e) Furniture 18,000
f) Others 10,000
g) Deep Tube well 4,00000
Total 16,70,000
TOTAL FIXED COST: ( 80,00000 + 43,59,000 + 16,70,000) 1,40,29,000

B. Recurring Expenditure:

1. Feed Cost:
a) Concentrate feed :
Assume, average milk production 12 litter, lactation period 285 days. For 65 22,23,000
milking cows concentrate feed requires 65 x 6kg /cow= 390 kg @ Tk 20 /
kgconcentrate feed cost for milking cows =( 390 x 285 x 20)
For 35 Dry cows 2 kg concentrate / day for 365 days @ 20 / kg Feed( 35 x 365 5,11,000
x 2 x 20)
For 70 calf per day 1 kg Feed @ Tk 20 / Kg for 365 days=( 70 x 365 x 20) 5, 11,000
Total concentrate Feed Cost = ( 22,23,000 + 5,11,000 + 5,11,000) 32,45,000
b) Green Grass:
For milking cow 15 kg green grass / Day/Cow for 285 days @ Tk .80/ Kg( 65 2,22, 300
x 15 x 285 x .80)
For 35 Dry Cows 10 kg green grass/ day/ cows for 365 days @ Tk .80/ kg( 35 x 1,02,200 .
10 x 365 x .80)
For 70 calf 3 kg green grass/ day/ Calf for 365 days @ Tk .80/Kg( 70 x 3 x 365 61,320
x .80)
Total Green Grass cost = (2,22,300 + 1,02,200 + 61,320) 3,85,820
c) Fibrous Feed or Straw 2,00,000
Total Feed Cost =( 32,45,000 + 3,85,820 + 2,00,000) 38,30,820
2. Personnel Cost:
a) 5 Labor Tk 5000 / month for 14 month = (5 x 5000 x 14) 3, 50,000
b) 1 Manager Tk 15,000 / month for 14 month= (15,000 x 14) 2, 10,000
Total 5, 60,000
3. Depreciation Cost:
For Building (2%) 87,180
For Equipments ( 10%) 1,67,000
Total 2, 54,180
4. Bank Interest on invested capital (1, 40, 29,000 ) @ 12% / year 16, 83,480
5. Medicine, Vaccine, Sanitation Cost 50,000
6. Electricity Bill 3500
7. Maintenance cost 10,000
8. Miscellaneous cost 30,000
TOTAL RECURRING COST 64, 21,980

Income From the Farm:

Income:
First Year income :
a) Gross Income: From Fluid milk = 65 x 285 x 12 litter x 50 Tk 1, 11,15,000
b) From cow dung and others selling 1,00,000
Total gross income during 1st year 1, 12,15,000
Net income / profit during 1st year of farming = (Total Gross income – total 47, 93, 0 20
recurring cost) =1, 12, 15,000 – 64, 21,980 TK
Second Year Income:
a) Gross Income: From Fluid milk = 65 x 285 x 12 litter x 50 Tk 1, 11,15,000
b) From surplus livestock 9, 00,000
c) From cow dung and others selling 1, 00,000
Total gross income during 2nd year 1, 21,15,000
Net income / profit during 2nd year of farming = (Total Gross income – Total 56, 93, 0 20
recurring Cost = 1, 21, 15,000 – 64, 21,980
Third Year Income:
a) Gross Income: From Fluid milk 65 x 285 x 12 litter x 50 1, 11,15,000
b) From surplus livestock 9, 00,000
c) From selling heifer 3, 50,000
d) From Culled cows 7, 00,000
e) From cow dung and others selling 1, 00,000
Total gross income during 3rd year 1, 31,65,000
Net income / profit during 3rd year of farming (Total Gross income – Total 67, 43, 0 20
recurring cost 1, 31, 65,000 – 64, 21,980
During 4th year of farming net Income: Same as shown in 3rd year