Dairy Buffalo Project Report for 10 Animals

Model Dairy Buffalo Project Report for 10 Animals

Today, let us discuss the Dairy Buffalo Project Report for 10 Animals along with income, cost of 10 dairy buffaloes unit.

Technical/Financial Assumptions and Prerequisites for dairy buffalo project report:

Components Involved In this model dairy buffalo project report

Type of Animals Planned for Dairy: Buffaloes.

No of dairy Buffaloes or Unit size: 10.

The system of Rearing: Semi-intensive.

Breed of animals assumed: Any good dairy buffalo.

Cost of dairy Buffalo which includes transportation charges plus insurance premium: 50,000 (for 8-liter milk/day capacity, in case of more milk yield, you should be spending more on animals, some breeds will costing up to  2 lakhs as well).

Expected milk yield per animal: 8 liters/day.

Milk selling price at the farm gate:  Rs. 30 Rs per 1 liter. (The price of the milk depends on fat content of milk).

The sale of manure/dung /animal/year: Rs. 1000.

Culled value per animal at the end of 5th lactation: Rs. 10,000.

Veterinary management including vaccinations/buffalo/year: Rs. 2000.

The rate of interest(%) assumed In case of a loan: 12%.

The residual value of shed and equipment to be taken(yes/no): No.

Repayment loan period: 3 years.

Net surplus towards repayment: 80%.

Feeding Schedule of Dairy Animals:

	Lactation Period of Animals		Dry Period of Animals
	Quantity in (Kg)	Cost (Rs)	Quantity in (Kg)	Cost (Rs)
1) Concentrate feed  Rs.10/Kg)
a) For milk	4	40	0	0
b) For Maintenance plus pregnancy stage	1	10	1.5	15
Green Fodder	20	0  (Cost is shown in cultivation)	20	0 (Cost is shown in cultivation)
Dry Fodder	5	15	5	15

Now, let us calculate the CAPITAL cost

• Cost of Crossbred Cows including transport cost and Insurance premium for 10 animals: 10 x 50,000 plus 50, 000 insurance and transport=  5,50,000 (Five lakhs fifty thousand).
• Dairy house/shed for buffaloes @ 40 square feet/animal @ Rs. 200 for square feet: 10 x 40 x 200 = Rs. 80,000.
• Required equipment cost: Rs. 30,000.
• Cost of green fodder cultivation in 1-acre area: Rs. 10,000.

Working capital: Rs.10,000.

Total Cost: Rs.6,80,000 (Six lakhs eighty thousands).

Read: Sheep Breeding Project Report.

The following norms are applied in case of dairy unit setup

• Total Project Cost: Rs. 6,80,000 (Six lakhs eighty thousand).
• Margin Money (Borrower): 20% of total project cost = Rs. 1,60,000 (One lakh sixty thousand).
• Bank Loan amount: Rs. 6,80,000 – Rs. 1,60,000 = Rs. 5,20,000 (Five lakhs twenty thousand).

Now we should get into total lactation period of animal based on an inter-calving period of 400 days (Out of 400 days, 250 days lactation, and 150 are dry days).

Usually, during the first year lactation days are little less compared to the subsequent year.

For 10 animals, you can expect 2,150 lactation days (on average 215  days/animal), and dry days of  575  for all 10 animals.

Now let us calculate the projected profits from 10 dairy buffalos project from the sale of milk and manure.

Assuming that the 1 liter of milk is sold at the rate Rs. 30 and each buffalo gives 8 liters per day (morning and evening).

So per day gross income from 1 animal is : 8 x 30 =  Rs. 240.

For total of 215 lactation days (in 1 year) : 215 x 240 =  Rs. 51,600.

For 10 animals per with 215 lactation days each in year: 10 x Rs.51,600  = 5,16,000 (Five lakhs sixteen thousands). (This come will increase when lactation days are more and decrease if the lactation days are less).

By Sale of Animal manure per year is about: Rs.20,000.

So, the total grass income during the first year is about: Rs.5,16,000 + Rs.20,000 = Rs. 5,26,000 (Five lakhs twenty six thousands).

Now let us calculate the first year expenditure (Don’t consider the fixed costs like shed construction and other fixed and one-time expenses).

Concentrated feed: Rs. 150,000.

Dry Fodder = Rs. 50,000.

Veterinary management charges = Rs. 20,000.

Green fodder cultivation for 1 acre: Rs. 10,000 .

So, the total expenditure for the first year: Rs. 2,30,000 (Two lakhs twenty thousand).

Net Profit during first year:  Total grass income during the first year – Total expenditure of first year =  Rs. 5,26,000 – Rs. 2,30,000 =  Rs. 2,96,000.

So, net profit from 10 dairy buffalo unit during the first year is about: Rs. 2,96,000 (Two lakhs ninety-six thousand).

You can expect a little more profit from next year as lactation days may increase.

Remember, we did not calculate bank loan interest and repayment.

Note: All the figures mentioned in the dairy buffalo project report are taken on an average, these will change time to time, area to area and also depends on the breed of animal and its milking quality.

Dairy Farming Advantages:

Milk has excellent demand across the globe.

Dairy farming will provide income for poor people in rural areas.

Many will get the local employment and dairy has an excellent contribution to the state and national economy.

Dairy farming doesn’t need any marketing skills, many people can buy fresh milk at the farm gate or milk collection center people will come and collect from your farm.

Dairy farming business does not pollute the location and maintains eco-friendly nature.

Dairy farms get subsidies and loans. For more information, contact Animal husbandry department in your area.

Many people are successful in commercial dairy farming business.

Finally, If you dedicate your time and hard work in the dairy farm business, you can be one of the profitable dairy farm owners.

Disadvantages of Dairy Farming:

Dairy farm setup costs more than any other livestock. It needs a more initial investment.

Dairy farming requires labor on a permanent basis and seasonal basis.

Owner monitoring is a must, as you cannot trust a third person especially in this business.

Daily cleaning of animals and shed area should be carried out.

You should protect animals from thieves and other predators.

It requires a lot of efforts to take care of newly born claves.

you must have good knowledge of animal reproductive cycle.

Feed management should be accurate.

you will fail in dairy farming, in the case where you just invest and run around.

You must have proper dairy management knowledge.

Dairy farming tips for beginners:

• Before starting a dairy farm business, estimate all the expenses.
• Analyze any dairy buffalo project report.
• Attend any dairy farming training courses.
• Research should be done on good dairy breeds for good milk yield which is suitable for your region.
• Visit local or any famous dairy farming to get an idea of problems. Concentrate on dairy problems rather on profits.
• Prepare a proper dairy farm business plan to execute.
• Record keeping is very important in any dairy business.
• Make sure, you hire labor who are aware of dairy cattle.
• Secure your dairy shed and surroundings with mesh chain or fencing wire.
• Provide clean water and clean feed all the time.
• The shed should be constructed in such a way that, the animals get good cross ventilation all the time.
• Never set up your farm close to forest or far away from the towns. it will be helpful if you have good transportation facility.
• Hire a good veterinary doctor to monitor the animals on a weekly basis.
• Isolate sick cattle from healthy ones until they get treated.
• Vaccinations should be carried out as per schedule by any veterinary professional.
• Pregnant cattle, lactation animals and newly born calves should be given more priority in terms of feed and health checkups.
• Not only green fodder, but dry fodder is also very important along with concentrate feed.
• Any diseased cattle should be buried far away from the farm site.
• You should constantly monitor animal move and behavior for any abnormal conditions.

Read: Goat Farming Project Report.

Last Updated: March 24, 2019