PROJECT REPORT ON

DAIRY FARMING (BUFFALO)

Chandrapur Krishi Pashu Bikash Farm

YEAR- 2023-24

SUBMITTED BY:
Chandrapur Krishi Pashu Bikash Farm

Mobile No: 9855024305

E-Mail: harshitbhai17@gmail.com

SUBMITTED TO:

Nic Asia Bank Ltd.

Chandranighapur Branch

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 \

CONTENTS

SN PARTICULARS Page No.

Chapter-I HIGHLIGHTS OF THE PROJECT REPORT
A About the Promoter 1
B Project Profile 1
Chapter-II PROJECT DESCRIPTION 2
Chapter-III MARKET POTENTIAL 4
Chapter-IV EXTENSION ACTIVITIES 5
Chapter-V SWOT ANALYSIS 6
Chapter-VI ECONOMICS OF THE PROJECT
A Basis & Presumptions 7
B Total Cost of Project 8
C Means of Finance 9
D Working Capital 9
E Projected Profitability 12
F Income Expenditure Statement 12
G Financial Analysis 12
H Cash Flow 13
I Balance Sheet 13
J Term Loan Repayment 14

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 CHAPTER -_I

HIGHLIGHTS OF THE PROJECT REPORT

PARTICULARS ABOUT THE PROMOTERS

1. Name Lalbati Devi
Chandrapur-4, Rautahat
2. Address
3. Contact Number 9855024305
5. Educational
Qualification SLC
6. Project Location Chandrapur-4, Rautahat
7. Constitution Proprietorship Firm
8. Product Milk and Manure
9. Experience 3 Years
10. Project Name Chandrapur Krishi Pashu
Bikash Farm
12. Bank Name Nic Asia Bank Ltd.
13. Bank Branch Chandranigahpur Branch

B. PROJECT PROFILE (FINANCIAL)

PARAMETERS VALUES
1.Breed Murra
2.Unit Size 15
3.Product Milk, Mannure
4.Cost of the Project 1943630
5.Bank Loan 1457723
6.Margin Money 485908
7.Financial Indicators
BCR at 15% DF 1.621
NPW 15% DF(Rs.) 2,016,653
IRR (%)
DSCR 2.61
8.Interest Rate (% per annum) 12 12.5
9.Repayment 5
years 5 Year

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 CHAPTER – II

PROJECT DESCRIPTION

Animal husbandry and agriculture are Supplementary Factor of each other because we
get dug to animal and After that we make manure by dug, which important for our
crops and filed gives us forage which is important for our animal. Animal husbandry
and agriculture both are synergistically involved and are the important source of
income and employment in rural areas. Among them, dairying provides security to
farmers, especially when agriculture fails. Dairy farming is essential to millions of
poor households across the country not only as a source of income but also as a major
source of protein, supplementary nutrition, Introduction of improved technologies,
availability of compounded feed are the fertilizer, fuel and a store of wealth. My Firm
is located in Chandrapur-4, Rautahat .

Project Location:
Chandrapur Krishi Pashu Bikash Farm is located Chandrapur-4, Rautahat. It is 1 Km
away from main road where market and transportation facility are easily available.
Feed & Fodder:

(1) Feed is available in nearby market place.

(2) Green fodder will be cultivated in own farms and dry fodder will also be
processed in own farm

(3) About 2/3 parts from dry +green roughages and 1/3 part of total dry matter need
should be fulfilled with concentrate mixture.

(4) If green fodder is in practice of feeding the animal, concentrate mixture should
have 11-12 % protein. If there is no green fodder then at least 18% protein must be in
the concentrate mixture.

(5) Type of feed should be changed gradually otherwise it will provide adverse effect
on the digestion system of the animal.

(6) Dry and green fodder should be offered just after feeding the concentrate mixture.

(7) Animal should be allowed to drink fresh and clean water twice a day.

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 (8) Animal should be offered clean, tasty, digestible, nutritious and cheap feed.

(9) 40 -50 gm Sodium chloride and 2%mineral mixture should be given/day/animal.

(10) Breeding bull should be provided 20-30% additional ration above to maintenance
need.

(11) For growth, milk production and pregnancy, extra ration in the form of
concentrate mixture should be offered.

(12) 1 kg concentrate mixture for production of each 3 kg milk in case of cattle and
each 2 1/2 kg milk in Buffalo should be given per day.

(13) Above 6 months of pregnancy, 1 kg and 1 ½ kg concentrate mixture per day

should be given to Buffalo and Buffalo, respectively.

(14) At least 5 kg green fodder per day must be included in the feeding of milch
animal otherwise milk production will be decreased. While feeding the animal, one
should behave lovely.

Electricity:

Supply of electricity on my farm is available.

Labour:

Labor is available on my farm, who is honest and regular.

Veterinary Aid:

Veterinary hospital Insemination Center/Livestock AID center is available 2 km Away from

my farm.

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 CHAPTER – III

MARKET POTENTIAL

Market is near from my farm it is about 1 Km. Milk is one of the widely and
extensively used items in Indian cuisine throughout country. India has the privilege to
be the largest producer of liquid milk but still there is a gap between demand and
supply

The country production of milk is one hundred and twelve million ton and there is
increase of production of milk in the country at the rate of 3.5 million ton per year but
it is not enough to meet the demand in the country of milk which is increasing at the
rate of six million ton per year. So this is massive gap of demand and supply of milk.

With milk product exports forming around 5 per cent of India's total milk production,
and domestic demand for dairy products remaining strong, there is the demand-supply
gap. The demand for milk and value-added dairy products in the domestic market has
been growing at over 6 to 8 per cent per annum because of increasing income, rising
aspirations, and consequent growth in per capita milk consumption.

The demand for milk more than doubled on the religious occasion like Dashain, Tihar
and chhath and other major festivals also

Milk can be sold to milk cooperative societies as well as entrepreneur can develop his
network of consumers. Milk can be sold in the immediate market directly to
customers, hotels, hospitals, sweet makers etc. Hotels and some general customers
(can be around 30%) prefer pure Buffalo milk where as hospitals, sanitariums prefer
Buffalo’s milk. One can reach buy back agreement with either district milk union or
with private milk marketing company.

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 Chapter- IV

EXTENSION ACTIVITIES

1. Starting a dairy farming business requires planning and preparation. Before starting
a dairy farm the entrepreneurs/ farmers are generally advised to undergo training.
They can contact Local Animal Husbandry Department staffs/Veterinary
College/agriculture university etc. for the purpose. However availability of training
facilities & resources are inadequate. Hence I will provide training on dairy farming
to farmers both onsite and off-site.
2. During training program special thrust on fodder cultivation will be given as well as
guidance regarding ingredients in a ration, herd health (medications and
vaccinations used) & kind of records to be kept in the farm will be also given.
3. For the farmers of nearby locality, visits will be arranged on my farm & they will be
educated on scientific lines regarding various aspects of cattle management,
manufacture of milk products, co-operation management etc. It will help them to
improve their knowledge and skill regarding scientific dairy practices so as to
enable them to adopt the same.
4. Consultancy will be provided for setting up of units to manufacturing and marketing
of indigenous milk products.
5. In order to motivate the dairy farmers to grow improved varieties of fodder and to
educate them about cultural practices, I will arrange fodder demonstrations on
farmers’ field.
6. I will motivate and encourage dairy farmers to keep high-yielding crossbred
animals.
7. I will take Initiatives to strengthen linkages between State Departments, Dairy
Development agencies, NGO’s and farmers.
8. For farmers who have decided to avail loan from bank for Dairy farming, assistance
will be provided to prepare their bankable project report.
9. For the marketing milk & milk products, farmers will be provided necessary support
& guidance.
10. Visits of dairy farmers will be arranged to dairy exhibitions with the prime objective
of exposing them the technological innovations.
11. Nowadays internet has become important tool to get latest information. There are
various websites available on dairy farm which provides useful content. This
information will be shared to farmers.
12. Necessary assistance will be given to farmers for setting up model cattle sheds and
dairy farm units.
13. I will organize field visits of dairy farmers to progressive farmers & research
stations which will motivate them to adapt good husbandry practices.

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 Chapter –V

SWOT ANALYSIS

Strengths:
• Buffalo is India’s milking machine, accounting for more than half of the
country’s milk production.
• Urbanization, burgeoning population, raise in per capita income and change
in food habits which leads to increased consumption of milk.
• Whitening property of Buffalo milk makes it more suitable for manufacture
of some dairy products and its acceptance as fluid milk is high.
• Provide regular income to the farmer.
• Provide employment to rural population mainly women.
• Dairy farming helps directly in increasing crop production by making
available draught power, manure and cash income on day- today basis.
• Additional income improves the quality of life in rural areas.
• Favorable Government policies for development of livestock sector.
Opportunities:
• Cost of milk production in India is low.
• Scope exists for higher milk yield through better use of crop residues and
other feeds Upgrading cattle.
• Improving availability of animal health care facilities Improving availability
of animal health care facilities.
• Better returns because of increased awareness in consumers about quality.
• Good scope exists for value-added products like desserts, puddings, custards,
sauces, mousse, stirred yogurt, nectars and sherbets.
• Latest packaging technology can help retain nutritive value of packaged
products and extend their shelf-life.
Weakness
• Feed availability to cattle throughout the year is not adequate.
• Frequent disease outbreaks.
• Lower productivity of Animals.
• Labour shortage and high wage rate in dairy farming.
• Limited investment or delay in the availability of funds in setting up or
expansion of milk procurement.
• Poor infrastructure in many areas for transporting rurally-produced milk to
major processing centers.
Threats
• Natural calamities like floods, drought, diseases that can affect feed to
cattle/cattle population.
• Seasonal fluctuations in milk production.
• Dwindling fodder resources

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 CHAPTER-VI

ECONOMICS OF THE PROJECT

ECONOMICS OF THE PROJECT

A. BASIS & PRESUMPTIONS
PARTICULARS UNIT QUANTITY
I. Techno-economic parameters
Rate of Interest % 1

Own Contribution (Margin Money) % 2

Floor space (sqft) per adult animal SqFt 6

Floor Space (sqft) per calf SqFt 2

Inter-Calving period(Lactation days 300+ Dry days 100) Days 4

Freshly calved animals in 1st and 2nd lactation are purchased in two
batches at an interval of 5 to 6 months
Concentrate feed requirement Qnt./day/Animal 4
Green fodder requirement Qnt./day/Animal 2

Dry fodder requirement Qnt./day/Animal 3

Space require for labour quarter, store room Sqft 3

No. of semiskilled labour required Nos. 1

No. Animal Nos. 1

Repayment Period Year 5

II. Expenditure norms
Site Deveopment Rs./sqft 2
Cost of Buffalo including transportation Rs./animal 7

Cost of concstrucation of shed per sq.ft 2

Cost of concentrate feed Rs./Kg 2

Cost of green fodder Rs./Kg. 5

Cost of dry fodder Rs/kg. 3
Rate of construction of labour quarter, store room per sq.ft 3

Cost of chaff cutter (power operated) Rs. 1

Cost of electric motor Rs. 1

Cost of semiskilled labour Rs./Annum 6

Cost of Veterinary aids Rs/animal/annum 1

Cost of elctricity and water Rs/animal/anuum 1

% of purchase
Insurance cost 5
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II. Income norms
Milk yield per Buffalo Liters/Day 8
Selling price of milk Rs./Liter 4

Production of manure Tonn/Year/Buffalo 4

Cost of manure Rs./Tonn 1

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B. TOTAL COST OF PROJECT
PARTICULARS UNIT UNIT RATE QUANTITY AMOUNT
I. Capital Cost
1. Building & Animal
Land OWN
Site Development sqft 2.00 2000 4,000
Purchase of Buffalo including transportation Nos 70000 15 1,050,000
Shelter Shed for adult animal sqft 250.00 1500 375,000
Shed for adult calves sqft 250.00 500 125,000
Store Room labour quarter sqft 300.00 300 90,000
Sub-Total-A 1,644,000
2. Machinary & Equipments
Chopper machine Nos. 10000 1 10,000
Electronic motor Nos. 10000 1 10,000
Weighing Machine 1 10000 1 10,000
Other Equipments & Utensils Ls. 20000 Ls. 20,000
Sub-Total-B 50,000
3. Misc. Fixed Assets
Office furniture(tables,chairs,recks) Ls. 10,000 - 10,000
Office electrification Ls. 10,000 - 10,000
Name board/ Wall Painting Ls. 5,000 - 5,000
Sub-Total-C 25,000
Total (A+B+C) 1,719,000
4. Contingency @ 5% - - - 85,950
Total Capital Cost-D 1,804,950
5. Prelimanary & Pre-operative Expenses
Market Survey & Project Report Preparation Ls. 10000 - 10,000
Publicity & Travelling Expenses Ls. 10000 10,000
Sub-Total-E 20,000
TOTAL CAPITAL COST 1,824,950
II. Working Capital
100 % of First Year Requirement 118,680

Total Project Cost 1,943,630

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C. MEANS OF FINANCE

Particulars Unit Unit Rate Amount Rs.

Term Loan % 75% 1457723
Own Contribution % 25% 485908
Total 1943630

D. Working Capital Requirements

Unit
Particulars Unit Rate Qty. I Year II Years III Year IV Year V Year
Cost of Consumables
Cost of Concentrate feed
for 26 Animal Kg 20 - 360000 360000 360000 360000 360000
Cost of fodder
Cultivatiion(3 Season in a
year) Acre 15000 2 30000 30000 30000 30000 30000
Insurance for the first
batch animal ( First Year 8
Animal and 1 Animal
second year onward) Nos 1500 8 12000 12000 12000 12000 12000
Stationary & Others /mnt 100 12 720 840 960 1080 1200
Cost of Utilities
Electricity & telephone 1500 12 10800 12600 14400 16200 18000
Travels & POL expenses /mnt 2000 12 14400 16800 19200 21600 24000
Cost of Manpower
Semiskilled Workers /mnt 6000 12 43200 50400 57600 64800 72000
Overhead Expenses
Marketing Expenses /mnt 500 12 3600 4200 4800 5400 6000
Total Working Capital
Cost 474720 486840 498960 511080 523200

E. PROJECT PROFITABILITY
E.(1)Lactation Chart
I
PARTICULARS YEAR II YEAR III YEAR IV YEAR V YEAR
Lactation Days
First Batch (8 Animal) 2250 2250 2250 2250 2250
Second Batch (7 Animal) 2250 2250 2250 2250 2250
Total-Lactation Days 4500 4500 4500 4500 4500
Dry Days
First Batch (8Animal) 750 750 750 750 750
Second Batch (7 Animal) 750 750 750 750 750
Total-Dry Days 1500 1500 1500 1500 1500

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E(2) FEEDING SCHEDULE
Feeding Schedule per day
Feeding Stuff Cost/Kg. Lactation Period Dry Period Total
Quantity Amount Quantity Amount Quantity A
Rs. Kg. Rs. Kg. Rs. Kg. R
1. Concentrate Feed 20 4.00 80.00 0.00 0.00 4.00
2. Green Fodder 5 20.00 100.00 20.00 100.00 40.00
3. Dry Fodder 3 3.00 9.00 3.00 9.00 6.00
27.00 189.00 23.00 109.00 50.00

Feeding schedule for 20 Animal Cost/Kg. Lactation Period Dry Period Total
Quantity Amount Quantity Amount Quantity A
Concentrated Feed Rs. Kg. Rs. Kg. Rs. Kg. R
I Year 20 18000 360000 0 0 18000
II Year 20 18000 360000 0 0 18000
III Year 20 18000 360000 0 0 18000
IV Year 20 18000 360000 0 0 18000
V Year 20 18000 360000 0 0 18000
Grand Total 90000 1800000 0 0 90000

Feeding schedule for 16 Animal Cost/Kg. Lactation Period Dry Period Total
Quantity Amount Quantity Amount Quantity A
Green Fodder Rs. Kg. Rs. Kg. Rs. Kg. R
I Year 5 90000 450000 30000 150000 120000
II Year 5 90000 450000 30000 150000 120000
III Year 5 90000 450000 30000 150000 120000
IV Year 5 90000 450000 30000 150000 120000
V Year 5 90000 450000 30000 150000 120000
Grand Total 450000 2250000 150000 750000 600000

Feeding schedule for 16 Animal Cost/Kg. Lactation Period Dry Period Total
Quantity Amount Quantity Amount Quantity A
Dry Fodder Rs. Kg. Rs. Kg. Rs. Kg. R
I Year 3 13500 40500 4500 13500 18000
II Year 3 13500 40500 4500 13500 18000
III Year 3 13500 40500 4500 13500 18000
IV Year 3 13500 40500 4500 13500 18000
V Year 3 13500 40500 4500 13500 18000
Grand Total 67500 202500 22500 67500 90000

Feeding Stuff Cost/Kg. Lactation Period Dry Period Total

Quantity Amount Quantity Amount Quantity A
Rs. Kg. Rs. Kg. Rs. Kg. R
1. Concentrate Feed 20.0 90000 1800000 0 0 90000
2. Green Fodder 5.0 450000 2250000 150000 750000 600000
3. Dry Fodder 3.0 67500 202500 22500 67500 90000
607500 4252500 172500 817500 780000

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Feeding schedule for 16 Cost/
Animal Kg. Lactation Period Dry Period Total
Quantity Amount Quantity Amount Quantity Amount
Dry Fodder Rs. Kg. Rs. Kg. Rs. Kg. Rs.
I Year 5 18720 93600 2535 12675 21255 106275
II Year 5 16380 81900 12090 60450 28470 142350
III Year 5 16380 81900 9750 48750 26130 130650
IV Year 5 16380 81900 12090 60450 28470 142350
V Year 5 16380 81900 9750 48750 26130 130650
Grand Total 84240 421200 46215 231075 130455 652275

Cost/K
Feeding Stuff g. Lactation Period Dry Period Total
Quantity Amount Quantity Amount Quantity Amount
Rs. Kg. Rs. Kg. Rs. Kg. Rs.
1. Concentrate
Feed 20.0 98280 1965600 0 0 98280 1965600
2. Green Fodder 2.5 561600 1404000 308100 770250 869700 2174250
3. Dry Fodder 5.0 84240 421200 46215 231075 130455 652275
744120 3790800 354315 1001325 1098435 4792125

E(3). Projected Profitability

I. Projection of Income
Particulars I Year II Years III Year IV Year V Year
Sale of Milk (@ 8 Ltr per Animal and Rs. 40.00 per) 1440000 1440000 1440000 1440000 1440000
Sale of Manure 90000 90000 90000 90000 90000
Total 1530000 1530000 1530000 1530000 1530000
Sundary Debitors (Credit Period allow 30Days) 45900 45900 45900 45900 45900
Collecton From Customers 1484100 1484100 1484100 1484100 1484100

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F. Income Expenditure Statement
Particulars I Year II Years III Year IV Year V Year
Income 1530000 1530000 1530000 1530000 1530000
Operational Cost 474720 486840 498960 511080 523200
Surplus Income 1055280 1043160 1031040 1018920 1006800
Less interest on term loan 182215 145772 109329 72886 36443
Depreciation for Misc. fixed assests@15% 99750 84788 72069 61259 52070
Amortization of priliminary preoperative expenses 4000 4000 4000 4000 4000
Profit before Tax 769315 808600.3 845641.4 880774.9 914286.8
Tax @ 0% 0 0 0 0 0
Profit after Tax 769315 808600 845641 880775 914287
Net Income Available(7+4) 1055280 1043160 1031040 1018920 1006800

G. FINANCIAL ANALYSIS
SN Particulars I Year II Years III Year IV Year V Year TOTAL
1 Capital Cost 1,824,950
2 Recurring Cost 474720 486840 498960 511080 523200
Total Cost 2,299,670 486,840 498,960 511,080 523,200
3 Benefits 1530000 1530000 1530000 1530000 1530000
Depreciated value of
4 misc. fixed assets@ 15% 273743
5 TOTAL BENEFIT 1530000 1530000 1530000 1530000 1803742.5
6 NET BENEFIT -769,670 1,043,160 1,031,040 1,018,920 1,280,543
Discounting Factor @
15% 0.87 0.76 0.66 0.57 0.50
NPV Cost @15% DF 1999713 368121 328074 292212 260123 3248243
NPV Benefits @ 15%DF 1330435 1156900 1006000 874782 896779 5264896
NPW @15%DF 2016653
BCR @15% DF 1.620844

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H. CASH FLOW STATEMET
SN Particulars I Year II Years III Year IV Year
A. CASH INFLOW
Profit 769315 808600 845641 880775
Term Loan 1457723 0 0 0
Own Contribution 485908 0 0 0
Depriciation 99750 84788 72069 61259
Amortization expense 4000 4000 4000 4000
Tax 0 0 0 0
Interest on Bank Loan 182215 145772 109329 72886
TOTAL (A) 2998910 1043160 1031040 1018920
B. CASH OUTFLOW
Capital Cost 1,824,950
Interest on Bank Loan 182215 145772 109329 72886
Income Tax 0 0 0 0
Term Loan Repayments 291545 291545 291545 291545
increasr in debtor 45900 0 0 0

Total (B) 2,344,610 437,317 400,874 364,431

C. SUMMARY
Opening Cash'& Bank Balance 0 654,300 1,260,143 1,890,310
Add: Surplus/ Deficit 654,300 605,843 630,166 654,489
Closing Cash & Bank Balance 654,300 1,260,143 1,890,310 2,544,799

I. BALANCE SHEET
SN Particulars I Year II Years III Year IV Year V Year
A. Assets
1 Fixed Assets 565,250 480,463 408,393 347,134 295,064
Livestock 1,050,000 1,050,000 1,050,000 1,050,000 1,050,000
2 Current Assets
Cash and Bank Balance 654,300 1,260,143 1,890,310 2,544,799 3,223,612
Sundry Debitors 45900 45900 45900 45900 45900
Preliminary & Preoperative
Expenses 16,000 12,000 8,000 4,000 0
Deposit for Building 4,000 4,000 4,000 4,000 4,000
Contingency 85,950 85,950 85,950 85,950 85,950
TOTAL(A) 2,421,400 2,938,456 3,492,553 4,081,783 4,704,526
B. LIABILITIES
1 Capital Balance 0 1255222 2063822 2909464 3790239
Addtions 485908
Net Profit for the Year 769315 808600 845641 880775 914287
Closing Balance 1255222 2063822 2909464 3790239 4704526
2 Secured Loans 1166178 874634 583089 291545 0

TOTAL(B) 2,421,400 2,938,456 3,492,553 4,081,783 4,704,526

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J. TERM LOAN
REPAYMENTS

Rate of Interest - % per annum 12.5

Opening Balance of Term Loan 1457723

Gross Total Net

YEAR Loan Outstanding Surplus Principal Interest Repayment Surplus DSCR
I 1457723 1055280 291545 182215 473760 581520 2.23
II 1166178 1043160 291545 145772 437317 605843 2.39
III 874634 1031040 291545 109329 400874 630166 2.57
IV 583089 1018920 291545 72886 364431 654489 2.80
V 291545 1006800 291545 36443 327988 678812 3.07
Average DSCR = 2.61

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