17
Dairy Farm Entrepreneurship Feasibility Study on Dairy Farm in Kheda District of Gujarat ________________________________________________________________ Dr. Govind Dave Principal/Dean of Indukaka Ipcowala Institute of Management (I 2 IM) Faculty of Management Studies (FMS) CHARUSAT Mr. Rajesh Sadhawani Assistant Professor of Indukaka Ipcowala Institute of Management (I 2 IM) Patel Harsh Student of Indukaka Ipcowala Institute of Management (I 2 IM) _____________________________________________________________________ Abstract India is largest producer and consumer of milk in the world. Total milk production in India is about 135 million tonne per year and growing with the rate of 3.3% while consumption level is growing with 5.0%, this represent the high demand-supply gape which further expected to increase as demand for milk is projected to be 181mt by 2020 (India Vision 2020). Gujarat roughly produces 8% of total production across India. The main objective of the study is to carry out feasibility study of dairy farming in Kheda district of Gujarat, where secondary data are collected from national dairy development board and from other government websites. The study is based on the SWOT analysis, trend analysis, scenario analysis and graphical presentation. The research paper also focuses on cost-benefit analysis, limitation and constraints, technological changes in dairy farms. The study is limited to Kheda district of Gujarat only. Key words: Dairy Farming, Dairy entrepreneurship, Cost-benefit analysis and Technology in dairy farming. INTRODUCTION: Dairying is an important source of subsidiary income to small/marginal farmers and agricultural laborers. Is the largest producer of milk producing more than 135 million tons of milk per annum. The consistent rise in the milk production in the country. India's milk production increased from 21.2 million tonnes in 1968-69 to 135 million tonnes in 2015.

Feasibility Study on Dairy Farm in Kheda District of Gujarat

Embed Size (px)

Citation preview

Page 1: Feasibility Study on Dairy Farm in Kheda District of Gujarat

Dairy Farm Entrepreneurship

Feasibility Study on Dairy Farm in Kheda District of Gujarat

________________________________________________________________

Dr. Govind Dave

Principal/Dean of Indukaka Ipcowala Institute of Management (I2IM)

Faculty of Management Studies (FMS) CHARUSAT

Mr. Rajesh Sadhawani

Assistant Professor of Indukaka Ipcowala Institute of Management (I2IM)

Patel Harsh

Student of Indukaka Ipcowala Institute of Management (I2IM)

_____________________________________________________________________

Abstract

India is largest producer and consumer of milk in the world. Total milk production in India is

about 135 million tonne per year and growing with the rate of 3.3% while consumption level

is growing with 5.0%, this represent the high demand-supply gape which further expected to

increase as demand for milk is projected to be 181mt by 2020 (India Vision 2020). Gujarat

roughly produces 8% of total production across India. The main objective of the study is to

carry out feasibility study of dairy farming in Kheda district of Gujarat, where secondary data

are collected from national dairy development board and from other government websites.

The study is based on the SWOT analysis, trend analysis, scenario analysis and graphical

presentation. The research paper also focuses on cost-benefit analysis, limitation and

constraints, technological changes in dairy farms. The study is limited to Kheda district of

Gujarat only.

Key words: Dairy Farming, Dairy entrepreneurship, Cost-benefit analysis and Technology

in dairy farming.

INTRODUCTION:

Dairying is an important source of subsidiary income to small/marginal farmers and

agricultural laborers. Is the largest producer of milk producing more than 135 million tons of

milk per annum. The consistent rise in the milk production in the country. India's milk

production increased from 21.2 million tonnes in 1968-69 to 135 million tonnes in 2015.

Page 2: Feasibility Study on Dairy Farm in Kheda District of Gujarat

India is the World largest producer of milk in the world with 135 billion liters of milk

produced annually based on 70 million animals according to various estimates in year 2015.

Animal husbandry and dairying activities play an important role in national economy and in

socio-economic development of the country. Across the country, dairy is concentrated in the

north-western states where the climate is more temperate. The top five states Gujarat, UP,

Punjab, Rajasthan, Andhra Pradesh - account for more than half of current production (2014).

This shows the growth in milk production across states. The fact that off the total milk

produced in the country approximately 42 % is cow milk must be remembered.

Gujarat is a land of opportunity for those who are looking for new and expanding markets.

Growth prospects in the dairy sector are very bright. growing with the rate of 3.3% while

consumption level is growing with 5.0%, this represent the high demand-supply gape which

further expected to increase as demand for milk is projected to be 181mt by 2020 (India

Vision 2020). Gujarat roughly produces 8% of total production across India1. There for this is

big gap in milk production. This is opportunity for stating new dairy farm in Gujarat on

commercial base.

JEREMY D. FOLTZ, J. Maintaining farms rather than increasing the incentives for farms

to get bigger. As a policy instrument for increasing or maintaining cow numbers, price floors

such as the Dairy Compact can be more cost effective than pure subsidies in an industry with

price volatility and sunk costs because they operate both on the average price and the

variance. The importance of non-price variables in both the farm size and exit equations

suggests that price policy alone will not maintain dairy farming in an increasingly suburban

state such as Connecticut. However, policies such as the PDR program that lower pressures to

develop land, the price of land, and rural town growth rates were also not shown to be

effective. Since this work only measured one of the many possible land based policies, the

effect of such land based policies relative to output price policies represents an important

avenue for future research.

N. Rangasamy and J.P. Dhaka The marketing of milk and milk products by dairy plants of

co-operative and private sectors in Tamil Nadu high. In this Report all the data are related to

toned milk, standardized milk, full cream milk, flavored milk, butter and ghee from the

selected co-operative and private dairy plants of the Coimbatore district for the financial year

2001-2002. In this report they found that the marketing cost for toned milk is same in both

the dairy plants , whereas it is higher for standardized milk, full cream milk and flavored milk

in the co-operative dairy plant. The Production cost has been found less in the cooperative

plant for products like butter and ghee. All the dairy products earn more marketing margins in

the private than co-operative dairy plant, except for toned milk .The marketing efficiency of

cooperative dairy plant for all dairy products has been observed relatively less than that of

private dairy plant, except toned milk .In this study suggested development of co-operative

dairy industry in a sustainable manner, the co-operative dairy plants should formulate long-

term vision and strategy. In this study they observed that value addition in dairy products

should be done without compromising the quality and consumer-oriented market research

and development should be accorded greater attention.

Dr ML Kamboj, Senior Scientist at the NDRI Said Good quality feeding, genetics

appropriate to the local conditions and favourable levels of animal care are leading to good

health and welfare. This in turn delivers levels of productivity nearly six times higher than the

1 Milk Production by States National Dairy Development Board

Page 3: Feasibility Study on Dairy Farm in Kheda District of Gujarat

current national average. Healthy, long-lived cows save on the cost of replacement and

expensive veterinary treatments and guarantee a stable milk supply. Training and regular

updating of dairy management knowledge is crucial in maintaining the dairy cattle’s health,

welfare and longevity, and ultimately the success of the dairy enterprise. Manure is recycled

and used on the land reducing the need for artificial fertilizers and excess manure in used as a

source of additional revenue. The farm uses several by-products from agriculture, ensuring a

good use of local resources. This also contributes positively to food security by transforming

biomass that is otherwise unusable by humans into milk. The final destination and the welfare

of male dairy calves is a challenging issue that needs to be addressed by the entire dairy

industry in collaboration with all interested stakeholders.

Anjani Kumar, Steven J. Staal and Dhiraj K. Singh this study has shown that in spite of

growing presence of modern milk supply chains in the Indian milk market, the traditional

milk supply chain is still dominant. Its dominance is even more pronounced in less-developed

states like Bihar. However, it is apparent that the traditional chain is being replaced with the

commercialization of dairying. The structure of milk marketing in Punjab is a clear pointer to

this conclusion. Upstream segments of the milk marketing chain in India have evolved

significantly, yet there is no clear and conclusive evidence that this is directly moving down

to the farm gate. However, the modern milk supply chain appears to be inclusive and the

resource poor dairy farmers (landless, small, marginal) are not excluded from the modern

milk supply chain. The traceability and food safety issues may further consolidate the

position of modern milk supply chains and the existence of the traditional chain would be

increasingly challenged. Further expansion of the modern milk supply chains by and large is

dependent on the development of milk collection infrastructural facilities at the doorstep,

incentive pricing and rewards for quality produce.

Capital cost

1 Housing of cow

Housing of cow is on dry, properly raised shed. this shed is not under water-logging, marshy

and heavy rainfall areas. The walls of the sheds should be 1.5 to 2 meters high and the walls

should be plastered to make them damp proof. sheds roof should be 3-4 meters high and the

cattle shed should be well ventilated. The floor should be pucca/hard, even non-slippery

impervious, well sloped (3 cm per meter) and properly drained to remain dry and clean,

Provide 0.25 meter broad, pucca drain at the rear of the standing space. A standing space of

2 x 1.05 meter for each cow is needed. And 5-10 sq. meter loaf space for each cow is needed.

For summer fan and ventilation are use in shade and cool drinking water is also needed. In

winter keep cow indoor during night and rain time and Provide individual bedding daily.

Sanitary is most important for cow there for Maintain sanitary condition around shed. Cow

Drain urine into collection pits and then to the field through irrigation channels. All dung and

urine dispose properly. A gobar gas plant will be an ideal way. Where gobar gas plant is not

constructed, convert the dung along with bedding material and other farm wastes into

compost. Give adequate space for the animals. Electricity is most important part of the shed

and water is important for cow there for 24 hour water supply is needed in shed

Page 4: Feasibility Study on Dairy Farm in Kheda District of Gujarat

1 Cost of construction of cow sheds Total 1600 sq. ft. of sheds is in up and in this aria 400 Rs per sq. ft. is cost of construction there for

640000 Rs is total construction of cow sheds

1600 sq. ft x 400 Rs = 640000 Rs

2 Cost of construction of young stock sheds Total 800 sq. ft. of sheds is in up and in this aria 250 Rs per sq. ft. is cost of construction there for

200000 Rs is total construction of young stock sheds

800 sq. ft x 250 Rs = 40000 Rs

3 Cost of construction of store rooms

For 20 cow 200 sq. ft. of store rooms is in up and in this aria 200 Rs per sq. ft. is cost of construction

there for 40000 Rs is total construction of store rooms.

200 sq. ft x 200 Rs = 40000 Rs

2 Selection Cow In India many types of cow are finding. The cows of milch breeds are high milk yields. The

examples of Indian milch breeds are shahiwal, Red Sindhi, Gir and Deoni The milk

production of milk breeds is on the average more than 1600 kg per lactation. And The cows

in Dual Purpose breeds are average milk yielder. Their milk production per lactation is 500

kg to 900 kg. The example of this group is Ongole, Hariana, Kankrej, Tharparker, Krishna

valley, Rathi and Goalo Mewathi.but this types of cow are not high milk yielders because in

India maximum 5 to 6 kg milk yields per day.In comparison of Frisians/ Holsteins, Jerseys,

Guernseys, Dairy Swiss ove cow breeds are nothing in milk production because this cow

milk production capacity is higher than Indian breeds. This cow breeds are given 15 to20 kg

milk in day. There for in India for the commercial use this types of cow are use.in Gujarat

Friesians/Holsteins and Jerseys cow breeds are use.

Jersey

Jersey breed was developed from the island of jersey in the English Channel off the coast of

France. The color in Jerseys may vary from a very light gray or mouse color to a very dark

fawn or a shade that is almost black. The females are commonly darker about the hips and

about the head and shoulders than on the body. Age at first calving is 26 to 30 months and

Inter calving is 13 to 14 months. Jersey cow give 5000 to 8000 kg Milk in year. Dairy milk

yield is found to be 20 liter in day. Whereas cross bred jersey, cow gives 8 to 10 liter per day.

Page 5: Feasibility Study on Dairy Farm in Kheda District of Gujarat

In India this breed has acclimatized well especially in the hot and humid areas like Gujarat.

Holstein Friesian

Holstein Friesian breed is originated in Holland. Holsteins are large, stylish animals with

color patterns of black and white or red and white. Holstein heifers can be bred at 15 months

of age, when they weigh about 350 to400 kg. It is desirable to have Holstein females calve

for the first time between 24 and 27 months of age. Milk yield 7200-9000 kg. This is by far

the best diary breed among exotic cattle regarding milk yield. On an average it gives 25 liter

of milk per day,

whereas a cross breed H.F. cow gives 10 15 liter per day. It can perform well in coastal and

delta areas.

How To Purchase cow

Lactation Chart cows are purchased in 2 batches at an interval of 5-6 months because cow give milk for 300

days in one year and if all cow are purchase at one time then 60 days we have on milk and

cost is high there for you can’t maintain your income and expenses there for you purchase

cow in 2 batches at an interval then you can maintain all process of farm

3 Cost of milking equipment

Generally milking machine is in one set but if you have more then ten cow then you need to

puraches two set milking machine in two set machine you can process with tow cow. One set

machine cost is around 25000 and two set milking machine set cost is around 50000.

Page 6: Feasibility Study on Dairy Farm in Kheda District of Gujarat

4 Cost of liquid milk storage equipment is among 1000 Rs per One set and four cow

one set was needed. There for 5000 Rs was total for 20 cow.

5 Cost of fodder cutting equipment is among 10000 Rs per set and 10 cow one set

was needed. There for 20000 Rs was total for 20 cow.

6 Cost of standby power supply is among 300 Rs per month. There for it was 3600 Rs

per year.

7 Cost of misc. equipment is among 500 Rs per year for one cow. There for it was

10000 Rs per year.

8 Initial fodder cultivation cost is among 3000 Rs per acres. There for it was 12000 Rs

per year.

9 Misc. expenses is among 500 Rs per cow. There for it was 10000 Rs per year.

Recurring cost

1 Feeding during lactation period

2 Feeding during dry period

3 Veterinary aid is among 1000 Rs percow. There for it was 20000 Rs peryear.

4 Cost of electricity & water is among 1000 Rs percow. There for it was 20000 Rs

peryear.

Page 7: Feasibility Study on Dairy Farm in Kheda District of Gujarat

5 Insurance is among 4% of price of cow. There for it was 1600 Rs percow and for 20 cow

is was 32000 Rs.

6 Labour wages This work whit out possible if you do all work of dairy farm and For 20 cow two labors or

two family members are in up for complete this work. If you hire labors then you pay 6000

Rs per labors there for two labors it was 12000 Rs per month and 144000 Rs for one year

3 Cost of Fodder

Cost of production/purchase of green fodder

Cost of production/purchase of dry fodder

Cost of concentrate feed

In Market concentrate selling in gunny and generally it is pack in 70 kg. Amul produce this feed in kheda

regain. Today price of 70 kg of pack in 950 Rs. There for per kg 13.50 Rest is cost and in milk day 6 kg of

concentrate for one cow and for 20 cow it was 120 kg and cost of this feed is 1620 Rest in day. And in dry

day 1 kg of concentrate use for one cow there for is was 6 kg per day and it’s cost is 270 Rs total cost of

concentrate was approximately 502200.

Income

Sale of milk

Sales of milk is main income of farm and it was 30 Rs perlitter and Average number of milk

percow is 15 litter per day and one cow give 300 day in one lactation period. There for it was

2700000 Rs of 20 cows in one year.

Sale of gunny or bag

concentrate feed is purchase in 70 kg bag and empty bag sales in 35 Rs perbag and total

number of bag in year is 870. There for it was of 30600 Rs peryear.

Depreciated value of buildings

After five year building depreciated value is 660000.

Page 8: Feasibility Study on Dairy Farm in Kheda District of Gujarat

cow dung in Trailers

cow dung is one income sours and per cow it was 1.5 Trailers. There for it was 50 trailers in

one year of 20 cow and seling price of one trailers is 1200 Rs. There for total income was

60000 Rs.

Depreciated value of equipments

After five year Equipment depreciated value is only 20000.

Closing stock value

After five year closing stock value is only 400000 Rs.

Two Units

No Perticular For 10 cow For 20 cow

1 Bank Loan (Rs) 672,825 1,342,950

2 Milk day (days) 2400 4800

3 Feed and Fodder (Rs) 319013 638025

4 Investment Cost (Rs) 897100 1790600

5 Costs (Rs) 1324113 2644625

6 Benefits (Rs) 1121815 2243631

7 Profit After Tax (Rs) 492955 986721

In both unit Break Even point is same because all expenses are variable types

cost

Break Even point

Total Cost =Total Revenue

Year Total Cost Total Revenue P A Interest &

Installment

1 2,644,625 2,243,631 897019

2 1,042,050 2,790,594 1134313

3 1,042,050 2,790,594 1051373

4 1,042,050 2,790,594 974139

5 1,042,050 3,870,594 1572853

1790600

Break Even Point is 685 days for both units.

Page 9: Feasibility Study on Dairy Farm in Kheda District of Gujarat

Dairy Model Project for Twenty Animal Units (Cows)

A

Harsh A Patel

kapadawanj

20

1,790,600

1,342,950

447,650

5

10.00%

B

40,000

15

30

4

400

250

200

1

2

13.5

1000

1000

4.00%

72,000

2

35

1200

50

Number of labourer

Sale price of empty livestock feed gunny bags (Rs.)

cow dung(per Trailers)

dung Tralers in year

Unit size

Project Cost (Rs.)

Bank Loan (Rs.)

Annual wages of each farm labourer (Rs.)

Sale price of milk (Rs./lit)

Irrigated land required for fodder production (acres)

Cost of construction of cow sheds (Rs/sq.ft.)

Cost of construction of young stock sheds (Rs/sq.ft.)

Cost of construction of store rooms (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 (%)

Cost of each cow (Rs.)

Overview

Name of the Proprietor

Address

Average daily milk yield of each cow (lit)

Margin Money (Rs.)

Repayment period (years)

Loan rate of interest (%)

Techno-Economic Parameters

Page 10: Feasibility Study on Dairy Farm in Kheda District of Gujarat

C Lactation Chart

(cows are purchased in 2 batches at an interval of 5-6 months)

One cow in Milk day 300

One cow in Dry day 65

Year 1 Year 2 Year 3 Year 4 Year 5

No. of animals in milk dry in milk dry in milk dry in milk dry in milk dry

First Batch 10 3000 650 3000 650 3000 650 3000 650 3000 650

Second Batch 10 1800 0 3000 650 3000 650 3000 650 3000 650

4800 650 6000 1300 6000 1300 6000 1300 6000 1300Total (days)

D

Rate/kg in milk dry in milk dry in milk dry in milk dry in milk dry in milk dry

Green fodder 1 35 30 168000 19500 210000 39000 210000 39000 210000 39000 210000 39000

Dry fodder 2 4.5 7.5 43200 9750 54000 19500 54000 19500 54000 19500 54000 19500

Concentrates 13.5 6 1 388800 8775 486000 17550 486000 17550 486000 17550 486000 17550

600000 38025 750000 76050 750000 76050 750000 76050 750000 76050Total (Rs)

Feed and Fodder

Daily Requirement Year 1 Year 2 Year 3 Year 4 Year 5

E Investment Cost

SpecificationsPhy. units Unit cost Total

20 40000 800000

sq. ft. 1600 400 640000

sq. ft. 800 250 200000

sq. ft. 200 200 40000

1 set 1 50000 50000

1 set 5 1000 5000

1 set 2 10000 20000

1 set 12 300 3600

1 set 20 500 10000

acres 4 3000 12000

20 500 10000

Total 1790600

Cost of fodder cutting equipment

Cost of liquid milk storage equipment

Cost of milking equipment

Construction of stores/misc rooms

Construction of young stock sheds

Construction of cow shed

Misc. expenses

Initial fodder cultivation cost

Cost of misc. equipment

Cost of standby power supply

Cost of animals

Page 11: Feasibility Study on Dairy Farm in Kheda District of Gujarat

F Cash Flow Analysis Years

I II III IV V

1 Costs

a) 1790600

b)

600000 750000 750000 750000 750000

38025 76050 76050 76050 76050

20000 20000 20000 20000 20000

20000 20000 20000 20000 20000

32000 32000 32000 32000 32000

144000 144000 144000 144000 144000

Total 2644625 1042050 1042050 1042050 1042050

Capital cost

Recurring cost

Feeding during lactation period

Feeding during dry period

Veterinary aid(1000 Rs per cow)

Cost of electricity & water(1000 Rs per cow)

Insurance(4 %)

Labour wages(72000 Rs Per Labour)(2 Labour)

2 Benefits

Sale of milk 2160000 2700000 2700000 2700000 2700000

Sale of gunny bags(35 Rs pur gunny) 23630.56 30594.44 30594.44 30594.44 30594.44

0 0 0 0 660000

60000 60000 60000 60000 60000

Depreciated value of equipments 0 0 0 0 20000

0 0 0 0 400000

Total 2243631 2790594 2790594 2790594 3870594

Depreciated value of buildings

cow dung in Trailers(50)

Closing stock value

G Repayment Schedule

Year Income Expenses

Loan

Outstanding

Gross

Surplus Interest Principal

Total

Repayment Surplus

1 2243631 854025 1342950 1389606 134295 268590 402885 986720.6

2 2790594 1042050 1074360 1748544 107436 268590 376026 1372518

3 2790594 1042050 805770 1748544 80577 268590 349167 1399377

4 2790594 1042050 537180 1748544 53718 268590 322308 1426236

5 3870594 1042050 268590 2828544 26859 268590 295449 2533095

Page 12: Feasibility Study on Dairy Farm in Kheda District of Gujarat

BEP

BEP

1790600 Rs at 1 year and 10 months and 15 days.

0

1000000

2000000

3000000

4000000

5000000

6000000

1 2 3 4 5

Income

Year

1790600

Page 13: Feasibility Study on Dairy Farm in Kheda District of Gujarat

DAIRY MODEL PROJECT FOR TEN ANIMAL UNITS (Cows)

A

Harsh A Patel

kapadawanj

10

897,100

672,825

224,275

5

10.00%

B

40,000

15

30

2

400

250

200

1

2

13.5

1000

1000

4.00%

72,000

1

35

1200

25

Average daily milk yield of each cow (lit)

Margin Money (Rs.)

Repayment period (years)

Loan rate of interest (%)

Techno-Economic Parameters

Overview

Name of the Proprietor

Address

Unit size

Project Cost (Rs.)

Bank Loan (Rs.)

Annual wages of each farm labourer (Rs.)

Sale price of milk (Rs./lit)

Irrigated land required for fodder production (acres)

Cost of construction of cow sheds (Rs/sq.ft.)

Cost of construction of young stock sheds (Rs/sq.ft.)

Cost of construction of store rooms (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 (%)

Cost of each cow (Rs.)

Number of labourer

Sale price of empty livestock feed gunny bags (Rs.)

cow dung(per Trailers)

dung Tralers in year

Page 14: Feasibility Study on Dairy Farm in Kheda District of Gujarat

C Lactation Chart

300

65

in milk dry in milk dry in milk dry in milk dry in milk dry

First Batch 1500 325 1500 325 1500 325 1500 325 1500 325

Second Batch 900 0 1500 325 1500 325 1500 325 1500 325

2400 325 3000 650 3000 650 3000 650 3000 650

(cows are purchased in 2 batches at an interval of 5-6 months)

Total (days)

Year 1 Year 2 Year 3 Year 4 Year 5

No. of animals

5

5

One cow in Milk day

One cow in Dry day

D

Daily Requirement

Rate/kg in milk dry in milk dry in milk dry in milk dry in milk dry in milk dry

Green fodder 1 35 30 84000 9750 105000 19500 105000 19500 105000 19500 105000 19500

Dry fodder 2 4.5 7.5 21600 4875 27000 9750 27000 9750 27000 9750 27000 9750

Concentrates 13.5 6 1 194400 4387.5 243000 8775 243000 8775 243000 8775 243000 8775

300000 19012.5 375000 38025 375000 38025 375000 38025 375000 38025

Feed and Fodder

Total (Rs)

Year 1 Year 2 Year 3 Year 4 Year 5

Page 15: Feasibility Study on Dairy Farm in Kheda District of Gujarat

E Investment Cost

SpecificationsPhy. units Unit cost Total

10 40000 400000

sq. ft. 800 400 320000

sq. ft. 400 250 100000

sq. ft. 100 200 20000

1 set 0.5 50000 25000

1 set 2.5 1000 2500

1 set 1 10000 10000

1 set 12 300 3600

1 set 10 500 5000

acres 2 3000 6000

10 500 5000

Total 897100

Cost of fodder cutting equipment

Cost of standby power supply

Cost of misc. equipment

Initial fodder cultivation cost

Misc. expenses

Cost of animals

Construction of cow shed

Construction of young stock sheds

Construction of stores/misc rooms

Cost of milking equipment

Cost of liquid milk storage equipment

F Cash Flow Analysis Years

I II III IV V

1 Costs

a) 897100

b)

300000 375000 375000 375000 375000

19012.5 38025 38025 38025 38025

10000 10000 10000 10000 10000

10000 10000 10000 10000 10000

16000 16000 16000 16000 16000

72000 72000 72000 72000 72000

Total 1324113 521025 521025 521025 521025

Cost of electricity & water(1000 Rs per cow)

Insurance(4 %)

Labour wages(72000 Rs Per Labour)(2 Labour)

Capital cost

Recurring cost

Feeding during lactation period

Feeding during dry period

Veterinary aid(1000 Rs per cow)

2 Benefits

1080000 1350000 1350000 1350000 1350000

11815.28 15297.22 15297.22 15297.22 15297.22

0 0 0 0 330000

30000 30000 30000 30000 30000

0 0 0 0 10000

0 0 0 0 400000

Total 1121815 1395297 1395297 1395297 2135297

Sale of milk

Sale of gunny bags(35 Rs pur gunny)

Depreciated value of buildings

cow dung in Trailers(50)

Depreciated value of equipments

Closing stock value

Page 16: Feasibility Study on Dairy Farm in Kheda District of Gujarat

BEP

BEP

897100 Rs at 1 year and 10 months and 15 days.

G

Year Income Expenses

Loan

Outstanding

Gross

Surplus Interest Principal

Total

Repayment Surplus

1 1121815 427013 672825 694803 67283 134565 201848 492955

2 1395297 521025 538260 874272 53826 134565 188391 685881

3 1395297 521025 403695 874272 40370 134565 174935 699338

4 1395297 521025 269130 874272 26913 134565 161478 712794

5 2135297 521025 134565 1614272 13457 134565 148022 1466251

Repayment schedule

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

1 2 3 4 5

Income

Year

897100

1.88

Page 17: Feasibility Study on Dairy Farm in Kheda District of Gujarat

REFERENCES:-

1. ENTRY, EXIT, AND FARM SIZE: ASSESSING AN EXPERIMENT IN DAIRY

PRICE POLICY JEREMY D. FOLTZ

2. Feasibility Analysis of adairy Farm, by Charles K Thompson

3. A case study of high welfare milk production in India

4. Marketing Efficiency of Dairy Products for Co-operative and Private Dairy Plants in

Tamil Nadu — A Comperative Analysis N. Rangasamy* and J.P. Dhaka

5. Division of Dairy Economics, Statistics and Management, National Dairy Research

Institute, Karnal-132 001, Haryana

6. National Dairy Research Institute, Indian Council of Agricultural Research, Karnal-

132001(Haryana) India

7. Smallholder Dairy Farmers’ Access to Modern Milk Marketing Chains in India

Anjani Kumar*, Steven J. Staal and Dhiraj K. Singh aNational Centre for

Agricultural Economics and Policy Research, Pusa, New Delhi - 110 012

bInternational Livestock Research Institute, NASC Complex, New Delhi - 110 012

8. Pregnancy Established Using Ovum-Pick-up-IVF in Sahiwal Cattle Dr. A. S.

Bawa, Director, DFRL, Mysor and Dr. A.K. Srivastava, Director NDRI releasing the

course compendium during Inaugural Function.

9. National Dairy Development Board Types fof cow Livestock:: Cattle:: BreedAnimal

Husbandry

10. A Study of Role of NABARD in Agriculture and Dairy Development of India

Kuldip Singh* & Deepak Bhatia**

11. Income Generation Potential of Rural Dairy Enterprise: A Study in Azamgarh

District, Uttar Pradesh ©© 2008 The Icfai University Press. All Rights Reserved.

Kaushlendra Vikram Mishra* and Shirin Mahalati**

12. Anjani Kumar, Steven J. Staal and Dhiraj K. Singh, National Centre for Agricultural

Economics and Policy Research, Pusa, New Delhi - 110 012 ,International Livestock

Research Institute, NASC Complex, New Delhi - 110 012