Project Report for 5 Cows Farm

We are always striving to make our dairy business more profitable. We provide good food and good management for this, but while doing so you have to buy new cows to grow your herd together. Together we raise animals in our herd or buy them from other farmers. You have to take a loan from a bank to buy such animals. At the bank, you have to submit a project report for cow farm on how you are going to do these business.

Dairying is done as a supplementary occupation to agriculture but now many pastoralists are doing it as their main occupation. It is important today to milk in a systematic way. You have to build your shed using the tools available to low-cost technology farmers and you need to spend more money where necessary. In this, it is advisable to spend more for good pedigree animals. It is more important to keep low-yielding animals than low-yielding high yielding animals. I.e. maximum price of animal, margin, interest rate, term of loan, method of loan disbursement etc. These are the things you need for a project report and if you report the project accordingly, the bank will accept such a complete report, otherwise sending it back for correction may cause unnecessary inconvenience to the animal keeper. And these children may be late in disbursing loans.

Initial Expenses

This includes the capital expenditure that we have. This includes the purchase of cows, the cost of raising the cowshed as well as the equipment required for it. The bank gives you a loan based on this amount. Capital costs

Capital costs

• Purchase of Animals: – In this you have to mention the amount required for purchase of animals. This price is determined by NABARD according to the type and breed of the animal and the prices vary according to the market price. This includes the original cost of the animal and insurance. If you want to buy animals over long distances, it is also beneficial for the animal keeper to take out travel insurance
• Cattle erection cost: – This includes the cost of erecting the cowshed. One thing to keep in mind is that you are doing this business by taking out a loan and you want to repay the loan, so you should reduce the cost to the place where you can spend the least. Because when we run our business at a good profit, we can spend a lot on such things. Because this time the money you have is yours and you don’t have to pay interest for it. In addition to the cost of the shed, you need to consider the shed to store the equipment you need to meet the basic needs of your shed.
• In this project report, we can mention the number of different animals such as threshing machine, milking machine, drying utensils, silage system, fodder transport system, fodder storage space, fodder storage space according to the number of our animals in the financial planning project report

Other Expenses: – Includes electricity supply and related expenses, water supply and storage costs as well as some other small expenses.

Capital costs

Technical part

When you are preparing this project report, you are thinking about your animal’s diet, health, milk production, breeding, and dung production.

• Feed Cost: – It mentions how much-wet fodder, dry fodder, animal feed and other food supplements your animals will need for 1 year considering their normal gestation period for the next 5 years, milk production and calving period.
• Health Expenses: – It covers the cost of timely vaccination, deworming, medication, other health care for your animals for 5 years as mentioned above.
• The first milking age of calves in this project is generally 2.5 years. The cost of calves is assumed to be 60% of the total management cost up to this age and according to market valuation, their per calf income is 35,000.
• The cows that we are going to raise will probably be in the first or second calf so that they will stay in your barn longer. Their market value is currently Rs. 80,000 is taken out with insurance.
• The milking capacity of a cow is how much milk a cow gives in one calf and the distance between two calves of a cow determines how much milk is given in a year. In this place, the interval between two calves is generally considered to be one to one and a half years and the average milk production is considered to be 10 liters per day.
• The price of milk is Rs. 30 per liter, green fodder Rs. 2.5 per kg, dry fodder Rs. 3.00 per kg of dung Rs. Rates are considered as 2.00 kg. It would be appropriate to decide the rate considering your situation.

Total cost

• Actual Expenditure: – If we mention the capital expenditure above, this second section includes how much it costs to run the actual herd throughout the year. This includes fodder, animal feed, labor costs, health costs as well as depreciation costs. This cost planning is for the next 5 years

Income

In this table, 5-year planning of the way in which money will come to your dairy business is done.

• Milk:- In general the most important factor is the yield for the milk. The annual average rate is used to determine the yield from the milk. We have good average cow’s milk taken in one yr. This milk production is based on the total distance between two calves and the milk production in one calf. The average annual rate of such milk is used to calculate the total yield of milk.
• Calf rearing:- after that calf yield in many places animal breeders do not raise small calves and try to get only milk yield but you should also keep in mind that if you raise a good pedigree, your income will increase. In this, your calf is usually ready to give milk in two and a half yrs. The price is for two and a half yrs. If you divide it by 2\5, you can find out how much income you get from your calf in one yr.

Manure:- After this, the second source of income

Other income: – We can include other sources of income in our dairy business. Selling animal feed bags. The kind of income we can take into it.

Income:

Debt Repayment

This is mostly a matter of the bank and how much margin money the bank has controlled is often in the range of 10 to 25%. It is also important to consider the interest rate of the bank. The table gives you information on how much you will get in installments, how much interest you will get and how much profit you have leftover from the bank’s principal and interest. The bank decides whether to lend to you based on the cost, investment and profit.

Dr. Shantaram Gaikwad

Assistant General Manager Dairy Development Department
Govind Milk, Phaltan, Dist. Satara