PROJECT REPORT FOR ESTABLISHING A DAIRY FARM WITH 10 COW UNIT
INTRODUCTION
Compared to other agricultural enterprises, as self-employment venture dairying has unique peculiarities due to its high rate of return and low gestation period. Per capita milk availability in Kerala is 228gms\day and the nutritional requirement is 280g/day. So there is immense potential for establishing dairy farms in the state.
OBJECTIVE
The entrepreneur who has enough experience in dairying would like to start a dairy farm by introducing milch cow unit of 10 animals with the provision to expand to 20 Cow unit. By this they can utilize the surplus fodder available for efficient and economic farming.
Thrissur
Area available-60 Cents of land.
4.5 Acres of land are available for fodder cultivation.
BUILDING
Sites for sheds will be selected suitably at an elevated area of the land after filling with enough quantity of soil. It has to accommodate 10 milch cows and calves. A separate enclosure at one end will be provided for the calves and a storeroom at the other end. The roof can be of C.G.I sheets on iron truss on the concrete floor.
ANIMALS
10 Crossbred milch cows having average yield of 10 litres at an estimated value of 15,000/- each will be purchased. All available precautions will be taken in selecting genuine high yielding crossbred cows.
FODDER PRODUCTION
Work on clearing, leveling contouring and demarcating the plots of suitable size and development of irrigation will be completed before fodder cultivation.
Fodder crops like maize and Jowar, grasses like Napier, Co3, Congo signal and guinea and legumes like cowpea, subabul and stylo will be grown. Adequate fodder availability will be ensured through proper fodder production and preservation.
FEEDING
Calves will be weaned at birth and male calves will be disposed off immediately. The feeding schedule for the calves is as per package of practice recommendations. Heifers will be fed with good quality grass leguminous mixture ad libitum till one year.
Cows will be fed with 30-40kg of green fodder or equivalent quantity of hay silage. The dry animals will be fed with 1.5kg of concentrate. Cows in milk will receive concentrate mixture on the basis of their production. For initial four litres of milk production no concentrates will be allotted. For every kilogram of milk above that 400g concentrate mixture will be given.

VETERINARY AID &BREEDING
Frozen semen available at the Veterinary Dispensary, Thanikkudam will be used for insemination. Veterinary Dispensary is only one Km away from the farm site.

S.S.I. REGISTRATION
The project can be registered with the Department of Industries as a Small Scale Industry.
MARKETING FACILITIES
Available. Intend to market milk locally as fresh fluid milk.
NON-RECURRING EXPENDITURE
Land owned by the beneficiary will be utilized and its cost is not taken into consideration. Similarly existing available facilities are also fully exploited to avoid escalation of capital expenditure further.

MAGNITUDE AND SOURCE OF FUNDS
25 percent each of the capital outlay will form the margin to be invested by the farmer and the remaining 75%will be covered by a Bank Term loan.
Non-recurring expenditure
Item Cost -Rs
Land Own
Cost for land leveling 40000
Buildings- Cow shed of 60 sq m &calf pen of 8sq.m @ Rs 1400 per sq.m with the provision to house 20 milch cows (anticipating expansion potential) 95200
Cost of Construction of a store room cum laborer Quarters of 200 Sq feet @ Rs 200 per Sq ft 40000
Cost of water tank and 1.5HP pump set 18000
Cost of 10 milch cows @ Rs 15000 per cow 150000
Cost of milking and watering utensils 4000
Cost of wheel barrows 3000
Spade and shovel 1000
Miscellaneous 4000
Total 355200.00
Magnitude and source of funds raised
SOURCE PERCENTAGE AMOUNT
Margin (own resources) 25% 109700.00
Loan from bank 75% 329100.00
Total 100 438800.00

Milch cow days

YEAR LACTATION DAYS DRY DAYS
1 2240 480
· 80%of animals will be in milk at any time.
· Average production is10 litres/day/animal.
Yearly feed cost
Milch cows-96000.00Dry stock-30000Calves- 24000.00Total-150000.00
· For first 4kg of milk production no concentrate is given
· For every additional one kg of milk 400gm concentrate is given. Hence each animal will get 2.4kg concentrate per day.
· Cost of concentrate is Rs 8/kg.
· Dry animals are provided with 1.5 kg of concentrate considering that they are pregnant.
· All animals are provided with 30 kg of roughage daily. Cost of production of fodder 20 paise /kg.
· Male calves will be sold after first week.
· 2 male and 2 female calves per year.
· Feeding cost of calves up to one year is Rs 3000/calf.
· Laborers required is one along with family labour @Rs 2000 per month- 24000.00
Total recurring expenditure-
1. Feeding 150000
2. Wages 24000
3. Interest on capital 42000
4. Water & Electricity 6000
5. Veterinary expenses &A I 9000
6. Insurance 9000
7. Depreciation 10000
Total 250000

Total capital expenditure =Non-recurring expenditure +Recurring expenditure for two months+ Interest on capital.
Capital investment= 355200+ 41600+ 42000= 438800.00









Gross income
Item Total cost per year

1. Sale of milk 518500
2. Sale of calves 20000
3. Sale of manure directly/veg/garden manure packets- 90000
4. Sale of gunny bags 6000
TOTAL 634500.00
· Price of milk is Rs 17 per litre
· Cost of female at one year of age @Rs 3000
· Cost of male calves @Rs 350/
· 20 kg of dung is expected from each animal. Of this 10 kg is used for fodder production and the rest sold @Rs.0.5/kg., cost of garden/Vegetable manure @ Rs 4 Per Kg
· Cost of gunny bag Rs. 20/

Cost-income statement

Item Total Cost per year
Gross income 634500.00
Less
Total variable cost 438800.00
Profit 195700.00
Profit per month 16308 .00
· Depreciation is estimated using straight-line method with an assumption that expected life of building is 15 years.
· For equipments and machinery 10- 15% depreciation is accounted per year.
· Scientific feeding, management and disease control aspects should be followed to optimize profit margin.