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Project Proposal On Dairy Farm
Project Proposal On Dairy Farm
22
Project Proposal on Dairy Farm
1. Background
1.1 Name of farmer
Name:
Municipality/Village: Ward
No.:
District:
Contact No.:
E-mail:
1.2 Scale of operation
5 Jersey Cross-Bred Cows
1.3 Land
Dry land:
Wet land:
1.4 Road access
Farm road passes along the farm. The ................... highway is at a
distance of
about ................... km/meters (Maximum).
1.5 Water
Source: Pipe/well/Tap etc.
1.6 Market perspective
Local market price of milk is Rs. ................... /- per liter, butter
................... /- per
kg and cheese ................... per kg.
1.7 Funding
The project proposal is developed for seeking financial support from
commercial
banks. The project is an 8 year project. In 8 years the loan amount along with
interest at 4% shall be liquidated. It is proposed to repay the loan on fixed
straight line mode and pay Rs. 1,00,000 (one lakh) annually, until the loan is
fully
liquidated.
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22 | Project Proposal on Dairy Farm
2. Objectives
2.1 Generate income from sale of milk and milk products, and live animals
to support
family livelihood.
2.2 To have profitable alternative employment option for children and
promote micro
dairy farming among fellow farmers and rural youths.
2.3 To generate Bio-gas and have sustainable supply of energy for cooking
such that
firewood collection from forest is no longer necessary.
2.4 To promote organic farming among fellow farmers.
The plentiful manure produced shall improve the productivity of other crops
and
enable to practice organic farming.
3. SWOT analysis
Strong policy support of the Government extended through DLS for Dairy projects is
primary source of motivation. The Government has been providing credit at lowest
possible interest rate of 4%. The demand of milk and milk products has always been
high
and ever increasing. The market is readily available, the price is high and
entrepreneurial
skills is adequate.
Besides, the adequate family labour, land to grow pasture, standing fodder tree in
the farm,
crop residues to feed the cows, farm road passing through and nearness to the
highway are
the strengths of this enterprise.
The initial front end capital investment is high. The shelf of milk is low and the
enterprise
has long gestation period. These are the strong weaknesses of the enterprises,
which deer
most entrepreneurs.
Cheap import from India and the possibility of disease outbreaks and death of the
cows, non-
availability and high cost of replacement stocks are the threat to the
enterprise. Sudden
change in the policy support is also a potent threat.
SWOT analysis
Strength Weakness
• Financial support of CB at 4% interest. • High initial capital
investment
• Availability of land, labour, fodder, • Long
production/turnover period
crop residues and water • Short shelf life of milk
• High demand and good price for milk • Require large area of land
and milk products
• Good level of entrepreneurial skills
Opportunities Threats
• Strong government policy support • Diseases outbreaks
• High demand and ready market • Cheap import from India
• Good scope for product diversification • Sudden change in policy
support.
• Expansion of enterprise creating jobs • Replacement stock not
readily
at home. available and the cost is
high.
• Socially acceptable enterprise
Keeping in view the above considerations, dairy enterprise require high level of
animal
husbandry and management skills.
4. PEST analysis
The Political, Economical, Social and Technical (PEST) analysis affirms high demand
of milk and milk products, availability of the technology available, there is
strong policy
support of the Government and it is socially acceptable enterprise.
Parameters Implication for organization/business
Political
National policies Improve rural livelihood and well being
Poverty reduction
Job creation
Import substitution of dairy products
Economic
Demand High
Supply Low
Market prices Good
Market trend Increasing
Capital investment Requires high initial capital investment cost
Social
Social stigma Socially just as it does not involve
slaughtering
Technological
Technology Available
Equipments Available
Entrepreneurial skill Adequate
5. Technical Plan
5.1 Structure and Equipment
• Structures
The structures will include:
1. Main shed (26 ft x 16.5 ft)
2. Dung peat (20 ft L x 5ft B x 4ft H)
3. Feed store (8ft x 6 ft)
4. Calf Pan (6ft x 5 ft)
5. Water Tank (1000 liter tank and stand)
6. Biogas plant (Standard size)
7. Fencing (30 ft x 30 ft wire mesh fencing)
The sketch map of the structure is provided in Figure -1.
Total wall height of main shed shall be 12 ft. At 8 ft height, a wooden ceiling
will be
made. The 4 ft tall ceiling space will be used for keeping silage and hay. The
total wall
height for feed store (8 ft x 6 ft) and calf shed (5 ft x 4 ft) shall be only 8
ft. The dung
peat will be made of stone concrete masonry. The urine will be collected in urine
pit. The
Biogas plant will be built under guidance of the District Livestock Service Office
(DLSO).
1000 L
8 ft
Water Tank
FEEDING PASSAGE
6 ft
2.5 ft
Store FEEDING
MANGER
2 ft
STANDING
SPACE
5 ft
Calf shed
8.5 ft x 6 ft
4 ft
DRAIN 1 ft
PASSAGE
Approach Path
2.5 ft
(2 ft W)
• Equipment
The following necessarily required dairy equipments shall be
purchased:
1. Chaff cutter 1
no.
2. Milk Cans (5, 10, 20 and 40 lit. cap.) 1 set
4. Cream Separator cum Butter Churner 1
no.
5. Deep Freezer (65-125 liter) 1 no.
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22 | Project Proposal on Dairy Farm
Calving 75 4 4 4 4
4
0-1 yr. mortality 5 0 0 0 0
0
1 to 3 yr. mortality 0 0 0 0 0
0
Female calf 50 2 2 2 2
2
Male calf 50 2 2 2 2
2
5.3 Feeding
5.3.1 Dry matter requirement
The Dry Matter (DM) requirement will be met with a combination of concentrated
feed
and the green fodder from pastures, fodder trees and forest, crop residues, silage
and hay.
• A cow on an average weighing 300 kg live body weight will be
considered as one
Adult Unit (1 AU).
• In a day, DM equivalent to 2.5% live weight of the cow shall be fed.
• To 1 AU weighing 300 kg, 7.5 kg DM shall be fed in a day.
• 100 kg green fodder in growth stage shall be considered equivalent to
20 kg DM
and in flowering or later stage shall be considered equivalent to 25 kg.
• About 80 % of DM requirement will be met with green fodder (50 %),
silage
(20%) and hay/straw (10%). The balance 20% will be met from concentrate.
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Feeding regime during summer and winter months for different category of Cows
Summer Feeding Regime Winter Feeding Regime
Category Concentrate Green Concentrate Green Dry
Fodder
Mixture (kg Fodder (kg) Mixture (kg) Fodder (kg)
(kg)
Dry Cows - 25-30 1.25 5.0
5-6
Milking 1 kg for every 1.25 + 1 kg for
2.5-3.0 kg of 30 every 2.5 - 3.0 5.0
5-6
milk kg of milk
Pregnant Production Maintenance +
Allowance + 1 production + 1
to 1.5 kg from 25 - 30 to 1.5 kg from 5.0
5-6
6th month of 6th month of
pregnancy pregnancy
Also the following points shall be kept in mind in feeding the cows:
1. Maintain optimum ratio of roughage and concentrate (Generally 60:40
ratio).
2. Feed concentrate individually according to production requirements.
3. Good quality roughage saves concentrates. Approximately 20 kg of
grasses fodder
or 6-8 kg legume fodder can replace 1 kg of concentrate mixture in terms
of protein
content.
4. 1 kg straw can replace 4-5 kg of grass on dry matter basis. In this
case the deficiency
of protein and other nutrients should be compensated by a suitable
concentrate
mixture.
1208 Jibachha’s Handbook of Animal Husbandry
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22 | Project Proposal on Dairy Farm
5.5 Breeding
Artificial Insemination (AI) services from nearest AI out-reach station will be
availed for
good quality progenies. Cattle Identification Number with plastic ear tags will be
used
for animal identification. Individual cattle register shall be maintained. Besides
the cattle
register, following records also be kept:
6. Marketing plan
6.1 Existing market
Milk collection center (Private/DDC) is located in less than 2 km distance. The
processing
plant purchase fresh milk at Rs. 50 per liter.
7. Implementation schedule
The project will be implemented cautiously in a planned manner. The
implementation will
be staggered.
Activities Yr -1 Yr -2 Yr -3
Yr -4 Yr -5
Construct sheds & store, fencing, bio-gas,
water tank
Develop Fodder
Purchase 2 Cows
Purchase 3 Cows
Purchase Deep freeze
Purchase cream separator cum butter churner
Sale 2 young heifer/bull every year
Replace 1 milking cow every year
Pay Loan @ Rs.100,000 per year
Fodder development will take time. It needs at least one growing season of 6
months. For
this reason the purchase of cows shall be staggered.
The first 2 cows will be purchased in 2nd quarter of 1st year after the structures
are ready.
They will be fed with crop residues and fodder already available in the farm along
with the
purchased feed concentrates.
The last 3 cows will be purchased in the 4th quarter of 1st year, when enough
fodder, hays
and silage are stocked, experience in managing cross bred Jersey cows, particularly
in
terms feeding and health, is gained and record keeping is learnt as well as other
associated
factors are better understood.
9. Financial plan
9.1 Initial investment cost
The initial investment cost of the project is Rs. 14,72,000.00, which includes:
5 Cows Rs. 400,000.00
Structure: Rs. 755,000.00
Equipment: Rs. 192,000.00
Establishment: Rs. 125,000.00
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22 | Project Proposal on Dairy Farm
II Income
S.
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Year 8
N.
1 Sale of fresh
480,000 960,000 960,000 960,000 960,000 960,000 960,000
960,000
milk
2 Sale of old
0 0 50,000 50000 50000 50000
50000
cows
3 Sale of
0 0 80000 80000 80000 80000 80000
80000
young stock
4 Sale of
15000 37500 37500 37500 37500 37500 37500
37500
manure
5 Bio-Gas 8000 20000 20000 20000 20000 20000 20000
20000
B Total Income 503,000 1017500 1097500 1147500 1147500 1147500 1147500 1147500
III Profit/Loss
-104130 311545 400121 461745.5 470509.5 478489 485758 492382
(B-A)
13. Conclusion
High initial capital investment, long turnover period and risk of outbreak of
diseases make
dairy a daunting enterprise for poor farmers. Unlike other enterprises, like
poultry, it
requires land for fodder production which makes unfeasible for farmers with small
land
holding.
Nonetheless, with strong government support, entrepreneurial skill and increasing
demand
and price of milk and milk product the project is expected to succeed. The benefits
of dairy
farming are multiple. The difficulties faced in the short run yields sustained
income for
the family in the long run providing opportunity for young children getting
employed at
home itself.
The dairy farming will enable to have Bio-gas for cooking which will alleviate the
drudgery
of collecting firewood and cooking food in firewood. Besides it will enable to
practice
organic farming.
The total loan amount of Rs. 14,72,000.00 is expected to be paid back by 8th year
of the
project. In fourth year the enterprise will achieve the breakeven point when the
capital
investment cost along with interest will be paid back.
Dairy is a socially appropriate enterprise and with the strong government policy
support
as it is now, it has good scope for more farmers of district to take similar
enterprise which
would alleviate rural poverty, create job, reduce dependence on forest for firewood
and
enable practicing organic farming.
The entrepreneur shall put utmost effort to promote Micro Dairy Farm, organic
farming
and adoption of Bio-gas in the district. Initiatives will be taken to promote
Producers
Group in the district which will encompass organic vegetables production and
poultry
production besides milk and milk products (Source: Pradhan, 2015).