PROJECT REPORT OF A SMALL-SCALE BUFFALO DAIRY FARM

PREPARED BY

Dr. Vivek M. Patil

Assistant Professor
Dept. 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
Address
Unit size
Project Cost (Rs.)
Bank Loan (Rs.)
Margin Money (Rs.)
Repayment period (years)
Loan rate of interest (%)

G Kanna Rao
Holagunda
50
2,620,000
2,358,000
262,000
5
10.5

Techno-Economic Parameters
Cost of each Murrah buffalo (Rs.)
Average daily milk yield of each buffalo (lit)
Sale price of milk (Rs./lit)
Irrigated land required for fodder production (acres)
Covered area required for each animal under loose
housing including storage area (sq.ft.)
Cost of construction of livestock shed and store room (Rs/sq.ft.)
Cost of production/purchase of green fodder (Rs/kg)
Cost of production/purchase of dry fodder (Rs/kg)
Cost of concentrate feed (Rs/kg)
Cost of veterinary aid per animal per year (Rs.)
Cost of electricity and water per animal per year (Rs.)
Rate of livestock insurance premium (%)
Annual wages of each farm labourer (Rs.)
Sale price of empty livestock feed gunny bags (Rs.)
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.

35,000
7
30
10.00
80
200
0.20
2.00
13.00
500
200
4
25,000
8.00

Lactation Chart
(buffaloes are purchased in 2 batches at an interval of 5-6
months)
Year 1

First Batch
Second Batch

No. of
animals
25
25

in milk

Total (days)

Feed and Fodder

Green fodder
Dry fodder
Concentrates

Daily Requirement
in milk
dry
25.00
20.00
4.00
5.00
3.80
1.00
Total (Rs)

Year 1
in milk
60,000
96,000
592,800
748,800

1625
0
1625

dry
6,500
16,250
21,125
43,875

in milk
7500
6125
13625

SpecificationsPhy. units
50
sq. ft.
4000

10
50

500

25000

II

3000
30000
300
15000
Total 2,620,000

Years
III

IV

2,620,000

Total

748,800
43,875
25,000
10,000
70,000
250,000
3,767,675

850,200
124,875
25,000
10,000
70,000
250,000
1,330,075

850,200
850,200
850,200
124,875
124,875
124,875
25,000
25,000
25,000
10,000
10,000
10,000
70,000
70,000
70,000
250,000
250,000
250,000
1,330,075 1,330,075 1,330,075

Total

2,520,000
7,556
0
0
0
2,527,556

2,861,250
9,024
0
0
0
2,870,274

2,625,000 2,572,500 2,782,500

8,520
8,408
8,856
0
0
600,000
0
0
12,500
0
0
875,000
2,633,520 2,580,908 4,278,856

0.91
3,425,159
2,297,778

0.83
1,099,236
2,372,127

0.75
0.68
0.62
999,305
908,459
825,872 7,258,031
1,978,603 1,762,795 2,656,833 11,068,136

2 Benefits
Sale of milk
Sale of gunny bags
Depreciated value of buildings
Depreciated value of equipments
Closing stock value

3 DF @ 10%
4 Discounted Costs @ 10%
5 Discounted Benefits @ 10%

Total
1750000
800000

50
acres

Cash Flow Analysis

1 Costs
a) Capital cost
b) Recurring cost
Feeding during lactation period
Feeding during dry period
Veterinary aid
Cost of electricity & water
Insurance
Labour wages

Unit cost
35000
200

Year 3
dry
1625
3000
4625

Year 2
in milk
dry
68,125 18,500
109,000 46,250
673,075 60,125
850,200 124,875

Investment Cost
Cost of animals
Construction of buffalo shed and storage area
Equipments (chains, ropes, spades, baskets, milk
pails, manual chaff cutter etc.)
Initial fodder cultivation cost
Misc. expenses

Rate/kg
0.20
2.00
13.00

7500
4500
12000

Year 2
dry

in milk
6375
6125
12500

Year 4
dry
2750
3000
5750

Year 3
in milk
dry
68,125 18,500
109,000 46,250
673,075 60,125
850,200 124,875

in milk
6125
6125
12250

Year 5
dry
3000
3000
6000

Year 4
in milk
dry
68,125 18,500
109,000 46,250
673,075 60,125
850,200 124,875

in milk
6125
7125
13250

dry
3000
2000
5000

Year 5
in milk
dry
68,125 18,500
109,000 46,250
673,075 60,125
850,200 124,875

6
7
8
9
10
11

NPW @ 10%
BCR @ 10%
DF @ 50%
Net Benefits
Discounted Net Benefits @ 50%
IRR

3,810,105
1.52
0.67
-1,240,119
-826,746
> 50%

0.44
1,540,199
684,533

0.30
0.20
0.13
1,303,445 1,250,833 2,948,781
386,206
247,078
388,317

879,388

Repayment Schedule
Year
I
II
III
IV
V
Capital Recovery Factor

Income
2,527,556
2,870,274
2,633,520
2,580,908
2,791,356

Expenses
1,147,675
1,330,075
1,330,075
1,330,075
1,330,075

Gross
Surplus
1,379,881
1,540,199
1,303,445
1,250,833
1,461,281

Equated
Annual
Installment

620,154
620,154
620,154
620,154
620,154

Net
Surplus
759,727
920,045
683,291
630,679
841,127

0.26

Note :
Data in highlighted cells are outside the parameters of this sheet. Please modify and re-enter the same in the Form.
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 Veterinary Doctor.