MINI DAIRY MODEL PROJECT FOR TEN ANIMAL UNITS (BUFFALOES) PROJECT AT A GLANCE

1 2 3 4 5 6 7 8 9 10 11 Unit size Breed State Unit cost (Rs) Bank loan (Rs) Margin money (Rs) Repayment period (yrs) Interest rate (%) BCR at 15% DF NPW at 15% DF(Rs) IRR (%) : : : : : : : : : : : 10 animals Graded Murrah Andhra Pradesh 155,030 131,700 23,330 5 13.5 1.53:1 154,403 >50

A INVESTMENT COST
S.No. 1 2 3 4 5 Items Cost of animals Transportation cost of animals Cost of construction of shed Cost of Store cum office Equipments (chaff cutter, milking pails, cans, technicians Insurance Fodder raising expenses @ Rs.3000/acre Total cost Margin money (15% of total cost) 10 Bank loan (85% of total cost) Say Say Sq.ft. Sq.ft. Specifications Phy.units 10 10 650 200 10 Unit Cost (Rs./unit) 8,200 300 55 100 500 Total Cost (Rs.) 8,200 3,000 35,750 20,000 5,000

6 7 8 9

10 2

328 3,000

3,280 6,000 155,030 23255 23330 131776 131700

Alliance Agro Farms: Pamidi padu village, Vinjamore Road, Atmakur (M), Nellore, A.P, INDIA.
M.No-+91 9963657777, e.mail-info@allianceagro.com, web:http://allianceagro.com

B TECHNO ECONOMIC PARAMETERS

i ii iii Animals will be purchased in two batches at an interval of 5-6 months Second/Third lactation animals within 30 days of calving will be purchased in first year No. of acres of irrigated land for fodder production considered in 2 the project. Green fodder will be produced on the farm. Fodder production expenses is considered in the cash flow analysis. During first year only two seasons are considered. In the first year the fodder production expenses are capitalised 3,000 for one season (Rs. per acre per season) and manure is utilised for fodder production It is assumed that the expenditure on calf rearing will nullify the income realised from its sale. However, the heifer will be retained on the farm and the old animals will be sold out. No. of milch animals Cost of milch animals Transportation cost (Rs. per milch animal including followers) Civil structures: a) Shed (sft. per milch animal) b) Store and office (sft) x Cost of construction a) Shed (Rs. per sft) b) Store and office xi xii xiii xiv xv xvi xvii Cost of equipment (Rs per milch animals) Lactation period (days) Dry period (days) Milk yield (lts/day) Sale price of milk (Rs/lt) Income from sale of gunny bags (20 bags/tonne @ Rs.5/bag) Expenditure on dry fodder for dry and lactation period requirement (kg/day) Cost (Rs/kg) xviii Expenditure on concentrates a) Requirement (kg/day) Lactation period Dry period b) Cost (Rs/kg) 4.5 1 3.3 500 280 150 7 7.75 100 5 0.5 65 200 55 100 10 8,200 300

iv

vi vii viii ix

Alliance Agro Farms: Pamidi padu village, Vinjamore Road, Atmakur (M), Nellore, A.P, INDIA.
M.No-+91 9963657777, e.mail-info@allianceagro.com, web:http://allianceagro.com

xix xx xxi xxii xxiii

Veterinary aid/animal/year (Rs) Labour (Rs./month) Insurance premium (%) Cost of electricity, water & other overheads (Rs/animal) Depreciation(%) a) Sheds b) Equipment

150 900 4 200 5 10

xxiv xxv xxvi

Value of closing stock Interest rate(%) Repayment period (years)

4,100 13.5 5

C. Lactation Chart
S.No Particulars I II Years III I a) b) II a) Lactation Days First batch Second batch Total Dry days First batch Second batch Total 550 550 400 750 1,150 550 750 1,300 750 750 1,500 750 750 1,500 1,250 900 2,150 1,400 1,050 2,450 1,250 1,050 2,300 1,050 1,050 2,100 1,050 1,050 2,100 IV V

D CASH FLOW ANALYSIS

Sr.No Particulars I II Year III I 1 2 a) b) Costs Capital cost* Recurring cost Green fodder raising expenses Feeding during lactation period Dry fodder Concentrate Total c) Feeding during dry period Dry Fodder Concentrate Total 1,375 1,815 3,190 2,875 3,795 6,670 3,250 4,290 7,540 3,750 4,950 8,700 3,750 4,950 8,700 5,375 31,928 37,303 6,125 36,383 42,508 5,750 34,155 39,905 5,250 31,185 36,435 5,250 31,185 36,435 12,000 18,000 18,000 18,000 18,000 145,750 IV IV

Alliance Agro Farms: Pamidi padu village, Vinjamore Road, Atmakur (M), Nellore, A.P, INDIA.
M.No-+91 9963657777, e.mail-info@allianceagro.com, web:http://allianceagro.com

d) e) f) g) II a) b) c) d) e) III IV V VI VII VIII IX X XI

Veterinary aid & breeding cover Cost of electricity & water Insurance Labour cost Total BENEFITS Sale of milk Sale of Gunny bags Depreciated value of sheds Depreciated value of equipments Closing stock value Total DF @ 15%

1,125 1,500 3,280 10,800 188,868 116,637 1,023 -

1,500 2,000 3,280 10,800 52,678 132,912 1,218

1,500 2,000 3,280 10,800 50,945 124,775 1,165

1,500 2,000 3,280 10,800 49,503 113,925 1,095

1,500 2,000 3,280 10,800 48,635 113,925 1,095 26,813 2,500 41,000

117,660 0.87

134,130 0.76 39,832 101,422

125,940 0.66 33,497 82,808

115,020 0.57 28,303 65,763

185,333 0.50 24,180 92,143 290,045 444,448

DISCOUNTED COSTS 164,233 AT 15% DISCOUNTED BENEFITS AT 15% NPW @ 15% BCR @ 15% DF @ 50% NET BENEFITS DISCOUNTED NET BENEFITS AT 50% IRR 102,313 154,403 1.53:1 0.667 -71,208 47,472 >50

0.444 81,453 36,201

0.296 74,995 22,221

0.198 65,518 12,942

0.132 136,698 18,001 41,893

* excludes the capitalised cost for fodder raising for three months and insurance for one year E REPAYMENT SCHEDULE: Bank Loan (Rs) - 131700 Interest rate(%) - 13.5 Capital recovery factor - 0.287 Year I II III IV V Income 117,660 134,130 125,940 115,020 115,020 Expenses 33,838 52,678 50,945 49,503 48,635 Gross surplus 83,823 81,453 74,995 65,518 66,385 Equated annual installment 37,798 37,798 37,798 37,798 37,798 Net surplus 46,025 43,655 47,197 27,720 28,587

Alliance Agro Farms: Pamidi padu village, Vinjamore Road, Atmakur (M), Nellore, A.P, INDIA.
M.No-+91 9963657777, e.mail-info@allianceagro.com, web:http://allianceagro.com

Housing Space Requirements for Crossbred cattle

Age-group 4-6 months 6-12 months 1-2 years Cows Pregnant cows Bulls* *To be housed individually Manger Space (mtr.) 0.2-0.3 0.3-0.4 0.4-0.5 0.8-1.0 1.0-1.2 1.0-1.2 Standing or covered area (sq.mtr.) 0.8-1.0 1.2-1.6 1.6-1.8 1.8-2.0 8.5-10.0 9.0-11.0 Open Space(sq.mtr.) 3.0-4.0 5.0-6.0 6.0-8.0 11.0-12.0 15.0-20.0 20.0-22.0

Feeding Schedules for Dairy Animals

(Quantity in Kgs.) S.No. 1 (A) a) Type of animal 2 CROSSBRED COW 6 to 7 litres milk per day Lactation days Dry days b) 8 to 10 litres milk per day Lactation days Dry days (B) a) BUFFALOES Murrah (7 to 8 litres milk per day) Lactation days Dry days b) Mehasana (6 to 7 litres milk per Lactation days Dry day) days Surti (5 to 6 litrs milk per day) Lactation days Dry days 25 to 30 20 to 25 15 to 20 10 to 15 c) 10 to 15 5 to 10 4 to 5 5 to 6 4 to 5 5 to 6 4 to 5 5 to 6 3.5 to 4.0 0.5 to 1.0 3.0 to 3.5 0.5 to 1.0 2.5 to 3.0 0.5 to 1.0 20 to 25 15 to 20 25 to 30 20 to 25 5 to 6 6 to 7 4 to 5 6 to 7 3.0 to 3.5 0.5 to 1.0 4.0 to 4.5 0.5 to 1.0 Feeding during 3 Green Fodder 4 Dry Fodder 5 Concentrate 6

Alliance Agro Farms: Pamidi padu village, Vinjamore Road, Atmakur (M), Nellore, A.P, INDIA.
M.No-+91 9963657777, e.mail-info@allianceagro.com, web:http://allianceagro.com

Programme for vaccination of farm animals against contagious diseases

Sr. No. 1 1 2 Anthrax (Gorhi) 3 Spore vaccine 4 Once in an year premonsoon vaccination - do - do 5 One season 6 Name of disease Type of vaccine Type of vaccination Duration of immunity Remarks

2 3 4 5

Black Quarter (Sujab)

Killed vaccine

- do - do -

To be done only in infected herds After vaccination repeat vaccination every year in Oct./Nov. It is better to repeat after 3 to 4 years

Haemorrhagic Ocladjuvant vaccine Septicaemia (Galghotu) Brucellosis (Contagious Cotton strain 19 (live abortion) bacteria) Foot and Mouth disease Polyvalent tissue (Muhkhar) culture vaccine

At about 6 months 3 or 4 calvings of age At about 6 months One season of age with booster dose 4 months later

Rinderpest (Mata)

Lapinised avianised At about 6 months Life long vaccine for exotic and of age crossbred catte, caprinised vaccine for zebu cattle.

Note: The above mentioned is only a model project report. For more accurate figures do contact us.

SUPPLIER OF TOTAL SOLUTION FOR THE FARMING INDUSTRY.

Alliance Agro Farms: Pamidi padu village, Vinjamore Road, Atmakur (M), Nellore, A.P, INDIA.
M.No-+91 9963657777, e.mail-info@allianceagro.com, web:http://allianceagro.com