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Dairy Farming

Dairy Farming

Discuss Dairy Farming within the Miscellaneous Project Reports forums, part of the Resolve Your Query - Get Help and discuss Projects category; Dairy Farming 1. Why do Dairy Farming ?1.1 Dairying is an important source of subsidiary income to small/marginal farmers and ...

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Dairy Farming

1. Why do Dairy Farming ?1.1 Dairying is an important source of subsidiary income to small/marginal farmers and agricultural labourers. The manure from animals provides a good source of organic matter for improving soil fertility and crop yields. The gober gas from the dung is used as fuel for domestic purposes as also for running engines for drawing water from well. The surplus fodder and agricultural by-products are gainfully utilised for feeding the animals. Almost all draught power for farm operations and transportation is supplied by bullocks. Since agriculture is mostly seasonal, there is a possibility of finding employment throughout the year for many persons through dairy farming. Thus, dairy also provides employment throughout the year. The main beneficiaries of dairy programmes are small/marginal farmers and landless labourers. A farmer can earn a gross surplus of about Rs. 12,000 per year from a unit consisting of 2 milking buffaloes. The capital investment required for purchase of 2 buffaloes is Rs. 18,223/-. Even after paying a sum of Rs. 4294/- per annum towards repayment of the loan and interest the farmer can earn a net surplus of Rs. 6000 - 9000/- approximately per year. (For details see model scheme enclosed). Even more profits can be earned depending upon the breed of animal, managerial skills and marketing potential.1.2 According to World Bank estimates about 75 per cent of India's 940 million people are in 5.87 million villages, cultivating over 145 million hectares of cropland. Average farm size is about 1.66 hectares. Among 70 million rural households, 42 per cent operate upto 2 hectares and 37 per cent are landless households. These landless and small farmers have in their possession 53 per cent of the animals and produce 51 per cent of the milk. Thus, small/marginal farmers and land less agricultural labourers play a very important role in milk production of the country. Dairy farming can also be taken up as a main occupation around big urban centres where the demand for milk is high.2. Scope for Dairy Farming and its National Importance.2.1 The total milk production in the country for the year 2001-02 was estimated at 84.6 million metric tonnes. At this production, the per capita availability was to be 226 grams per day against the minimum requirement of 250 grams per day as recommended by ICMR. Thus, there is a tremendous scope/potential for increasing the milk production. The population of breeding cows and buffaloes in milk over 3 years of age was 62.6 million and 42.4 million, respectively (1992 census)2.2 Central and State Governments are giving considerable financial assistance for creating infrastructure facilities for milk production. The nineth plan outlay on Animal Husbandry and Dairying was Rs. 2345 crores.3. Financial Assistance Available from Banks/NABARD for Dairy Farming.3.1 NABARD is an apex institution for all matters relating to policy, planning and operation in the field of agricultural credit. It serves as an apex refinancing agency for the institutions providing investment and production credit. It promotes development through formulation and appraisal of projects through a well organised Technical Services Department at the Head Office and Technical Cells at each of the Regional Offices.3.2 Loan from banks with refinance facility from NABARD is available for starting dairy farming. For obtaining bank loan, the farmers should apply to the nearest branch of a commercial or co-operative Bank in their area in the prescribed application form which is available in the branches of financing banks. The Technical Officer attached to or the Manager of the bank can help/give guidance to the farmers in preparing the project report to obtain bank loan.3.3 For dairy schemes with very large outlays, detailed reports will have to be prepared. The items of finance would include capital asset items such as purchase of milch animals, construction of sheds, purchase of equipments etc. The feeding cost during the initial period of one/two months is capitalised and given as term loan. Facilities such as cost of land development, fencing, digging of well, commissioning of diesel engine/pumpset, electricity connections, essential servants' quarters, godown, transport vehicle, milk processing facilities etc. can be considered for loan. Cost of land is not considered for loan. However, if land is purchased for setting up a dairy farm, its cost can be treated as party's margin upto 10% of the total cost of project.4. Scheme Formulation for bank loan.4.1 A Scheme can be prepared by a beneficiary after consulting local technical persons of State animal husbandry department, DRDA, SLPP etc., dairy co-operative society/union/federation/commercial dairy farmers. If possible, the beneficiaries should also visit progressive dairy farmers and government/military/agricultural university dairy farm in the vicinity and discuss the profitability of dairy farming. A good practical training and experience in dairy farming will be highly desirable. The dairy co-operative societies established in the villages as a result of efforts by the Dairy Development Department of State Government and National Dairy Development Board would provide all supporting facilities particularly marketing of fluid milk. Nearness of dairy farm to such a society, veterinary aid centre, artificial insemination centre should be ensured. There is a good demand for milk, if the dairy farm is located near urban centre.4.2 The scheme should include information on land, livestock markets, availability of water, feeds, fodders, veterinary aid, breeding facilities, marketing aspects, training facilities, experience of the farmer and the type of assistance available from State Government, dairy society/union/federation.4.3 The scheme should also include information on the number of and types of animals to be purchased, their breeds, production performance, cost and other relevant input and output costs with their description. Based on this, the total cost of the project, margin money to be provided by the beneficiary, requirement of bank loan, estimated annual expenditure, income, profit and loss statement, repayment period, etc. can be worked out and shown in the Project report. A format developed for formulation of dairy development schemes is given as Annexure I.

5. Scrutiny of Schemes by banks.The scheme so formulated should be submitted to the nearest branch of bank. The bank's officers can assist in preparation of the scheme for filling in the prescribed application form. The bank will then examine the scheme for its technical feasibility and economic viability.(A) Technical Feasibility - this would briefly include -1. Nearness of the selected area to veterinary, breeding and milk collection centre and the financing bank's branch.2. Availability of good quality animals in nearby livestock market. The distribution of important breeds of cattle and buffaloes are given in Annexure II. The reproductive and productive performance of cattle and buffalo breeds is given in AnnexureIII.3. Availability of training facilities.4.Availability of good grazing ground/lands.5.Green/dry fodder, concentrate feed, medicines etc.6.Availability of veterinary aid/breeding centres and milk marketing facilities near the scheme area. (B) Economic Viability - this would briefly include - 1. Unit Cost - The average unit cost of dairy animals for some of the States is given in Annexure IV. 2. Input cost for feeds and fodders, veterinary aid, breeding of animals, insurance, labour and other overheads. 3.Output costs i.e. sale price of milk, manure, gunny bags, male/female calves, other miscellaneous items etc. 4.Income-expenditure statement and annual gross surplus. 5.Cash flow analysis. 6. Repayment schedule (i.e. repayment of principal loan amount and interest). Other documents such as loan application forms, security aspects, margin money requirements etc. are also examined. A field visit to the scheme area is undertaken for conducting a techno-economic feasibility study for appraisal of the scheme. Model economics for a two animal unit and mini dairy unit with ten buffaloes are given in Annexure V and VI. 6. Sanction of Bank Loan and its Disbursement.After ensuring technical feasibility and economic viability, the scheme is sanctioned by the bank. The loan is disbursed in kind in 2 to 3 stages against creation of specific assets such as construction of sheds, purchase of equipments and machinery, purchase of animals and recurring cost on purchase of feeds/fodders for the initial period of one/two months. The end use of the fund is verified and constant follow-up is done by the bank.7. Lending terms - General7.1 Unit CostEach Regional Office (RO) of NABARD has constituted a State Level Unit Cost Committee under the Chairmanship of RO-in-charges and with the members from developmental agencies, commercial banks and cooperative banks to review the unit cost of various investments once in six months. The same is circulated among the banks for their guidance. These costs are only indicative in nature and banks are free to finance any amount depending upon the availability of assets.7.2 Margin MoneyNABARD had defined farmers into three different categories and where subsidy is not available the minimum down payment as shown below is collected from the beneficiaries.

Sr.No. Category of Farmer Level of predevelopment return to resources Beneficiary's Contribution
(a) Small Farmers Upto Rs.11000 5%
(b) Medium Farmers Rs.11001 - Rs.19250 10%
(c) Large Farmers Above Rs. 19251 15%`
7.3 Interest RateAs per the RBI guidelines the present rate of interest to the ultimate beneficiary financed by various agencies are as under :

No. Loan Amount CB's and RRB's SLDB/SCB
(a) Upto and inclusive of Rs.25000 12% As determined by SCB/SLDB subject to minimum 12%
(b) Over Rs. 25000 and upto Rs. 2 lakhs 13.5% -do-
(c) Over Rs. 2.0 lakhs As determined by the banks -do-
7.4 SecuritySecurity will be as per NABARD/RBI guidelines issued from time to time.7.5 Repayment Period of LoanRepayment period depends upon the gross surplus in the scheme. The loans will be repaid in suitable monthly/quarterly instalments usually within a period of about 5 years. In case of commercial schemes it may be extended upto 6-7 years depending on cash flow analysis.

7.6 InsuranceThe animals may be insured annually or on long term master policy, where ever it is applicable. The present rate of insurance premium for scheme and non scheme animals are 2.25% and 4.0% respectively.8. Package of Common Management Practices Recommended for DairyFarmersModern and well established scientific principles, practices and skills should be used to obtain maximum economic benefits from dairy farming. Some of the major norms and recommended practices are as follows :I. Housing:1. Construct shed on dry, properly raised ground. 2. Avoid water-logging, marshy and heavy rainfall areas. 3. The walls of the sheds should be 1.5 to 2 meters high. 4. The walls should be plastered to make them damp proof. 5. The roof should be 3-4 metres high. 6. The cattle shed should be well ventilated. 7. The floor should be pucca/hard, even non-slippery impervious, well sloped (3 cm per metre) and properly drained to remain dry and clean. 8. Provide 0.25 metre broad, pucca drain at the rear of the standing space. 9. A standing space of 2 x 1.05 metre for each animal is needed. 10. The manger space should be 1.05 metre with front height of 0.5 metre and depth of 0.25 metre. 11. The corners in mangers, troughs, drains and walls should be rounded for easy cleaning. 12. Provide 5-10 sq. metre loaf space for each animal. 13.Provide proper shade and cool drinking water in summer. 14.In winter keep animals indoor during night and rain. 15. Provide individual bedding daily. 16. Maintain sanitary condition around shed. 17.Control external parasites (ticks, flies etc.) by spraying the pens, sheds with Malathion or Copper sulphate solution. 18. Drain urine into collection pits and then to the field through irrigation channels. 19.Dispose of dung and urine properly. A gobar gas plant will be an ideal way. Where gobar gas plant is not constructed, convert the dung alongwith bedding material and other farm wastes into compost. 20.Give adequate space for the animals. (The housing space requirement of crossbred cattle in various categories/age-groups is given in Annexure-VII). II. Selection of Animal : 1. Immediately after release of the loan purchase the stock from a reliable breeder or from nearest livestock market. 2.Select healthy, high yielding animals with the help of bank's technical officer, veterinary/animal husbandry officer of State government/ Zilla Parishad, etc. 3. Purchase freshly calved animals in their second/third lactation. 4. Before purchasing, ascertain actual milk yield by milking the animal three times consecutively. 5.Identify the newly purchased animal by giving suitable identification mark (ear tagging or tattooing). 6.Vaccinate the newly purchased animal against disease. 7. Keep the newly purchased animal under observation for a period of about two weeks and then mix with the general herd. 8. Purchase a minimum economical unit of two milch animals. 9. Purchase the second animal/second batch after 5-6 months from the purchase of first animal. 10.As buffaloes are seasonal calvers purchase them during July to February. 11. As far as possible purchase the second animal when the first animal is in its late stage of lactation and is about to become dry, thereby maintaining continuity in milk production vis-a-vis income. This will ensure availability of adequate funds for maintaining the dry animals. 12.Follow judicious culling and replacement of animals in a herd. 13.Cull the old animals after 6-7 lactations. III. Feeding of Milch Animals 1 Feed the animals with best feeds and fodders. (Feeding schedule is given in Anneuxre VIII). 2. Give adequate green fodder in the ration. 3. As far as possible, grow green fodder on your land wherever available. 4. Cut the fodder at the right stage of their growth. 5. Chaff roughage before feeding. 6. Crush the grains and concentrates. 7. The oil cakes should be flaky and crumbly. 8. Moisten the concentrate mixture before feeding. 9.Provide adequate vitamins and minerals. Provide salt licks besides addition of mineral mixture to the concentrate ration. 10. Provide adequate and clean water. 11.Give adequate exercise to the animals. Buffaloes should be taken for wallowing daily. In case this is not possible sprinkle sufficient water more particularly during summer months. 12. To estimate the daily feed requirement remember that the animals consume about 2.5 to 3.0 percent of their body weight on dry matter basis. IV. Milking of Animals 1. Milk the animals two to three times a day. 2. Milk at fixed times. 3.Milk in one sitting within eight minutes. 4. As far as possible, milking should be done by the same person regularly. 5. Milk the animal in a clean place. 6. Wash the udder and teat with antiseptic lotions/luke-warm water and dry before milking. 7. Milker should be free from any contagious diseases and should wash his hands with antiseptic lotion before each milking. 8. Milking should be done with full hands, quickly and completely followed by stripping. 9. Sick cows/buffaloes should be milked at the end to prevent spread of infection. V. Protection against Diseases 1.Be on the alert for signs of illness such as reduced feed intake, fever, abnormal discharge or unusual behaviour. 2. Consult the nearest veterinary aid centre for help if illness is suspected. 3.Protect the animals against common diseases. 4.In case of outbreak of contagious disease, immediately segregate the sick, in-contact and the healthy animals and take necessary disease control measures. (Vaccination schedule is given in Annexure IX). 5.Conduct periodic tests for Brucellosis, Tuberculosis, Johne's disease, Mastitis etc. 6.Deworm the animals regularly. 7. Examine the faeces of adult animals to detect eggs of internal parasites and treat the animals with suitable drugs. 8.Wash the animals from time to time to promote sanitation. VI. Breeding Care 1.Observe the animal closely and keep specific record of its coming in heat, duration of heat, insemination, conception and calving. 2. Breed the animals in time. 3. The onset of oestrus will be within 60 to 80 days after calving. 4. Timely breeding will help achieving conception within 2 to 3 months of calving. 5. Breed the animals when it is in peak heat period (i.e. 12 to 24 hours of heat). 6. Use high quality semen preferably frozen semen of proven sires/bulls.

VII. Care during Pregnancy Give special attention to pregnant cows two months before calving by providing adequate space, feed, water etc.VIII. Marketing of Milk1.Marketing milk immediately after it is drawn keeping the time between production and marketing of the milk to the minimum. 2.Use clean utensils and handle milk in hygienic way. 3. Wash milk pails/cans/utensils thoroughly with detergent and finally rinse with chloride solution. 4.Avoid too much agitation of milk during transit. 5.Transport the milk during cool hours of the day. IX. Care of Calves 1. Take care of new born calf. 2.Treat/disinfect the navel cord with tincutre of iodine as soon as it is cut with a sharp knife. 3.Feed colostrum to calf. 4.Assist the calf to suckle if it is too weak to suckle on its own within 30 minutes of calving. 5.In case it is desired to wean the calf immediately after birth, then feed the colostrum in bucket. 6.Keep the calf separately from birth till two months of age in a dry clean and well ventilated place. 7.Protect the calves against extreme weather conditions, particularly during the first two months. 8.Group the calves according to their size. 9.Vaccinate calves. 10. Dehorn the calves around 4 to 5 days of age for easy management when they grow. 11.Dispose of extra calves not to be reared/maintained for any specific purpose as early as possible, particularly the male calves. 12. The female calves should be properly reared. Annexure I FORMAT FOR SUBMISSION OF SCHEMES 1. GENERALi) Name of the sponsoring bankii) Address of the controlling ofice sponsoring the schemeiii) Nature and objectives of the proposed schemeiv) Details of proposed investments

S.No Investment No. Of units

(a)
(b)
(c)
v) Specification of the scheme area (Name of District & Block/s)S.No. District Block

vi) Names of the financing bank's branches:S.No. Name of the Branch/District

(a)
(b)
(c)
vii) Status of beneficiary/ies: (indidivual/Partnership/Company/Corporation/Co-operative Society / Others)viii) In case of area based schemes, coverage of borrowers in weaker sections (landless labourers, small, medium & large farmers as perNABARD's norms, SC/ST, etc.)ix) Details of borrowers profile (Not applicable to area based schemes)(a) Capability(b) Experience(c) Financial Soundness(d) Technical/Other special Qualificaitons(e) Technical/Managerial Staff and adequacy thereof2. TECHNICAL ASPECTS :a) Location, Land and Land Development :i) Location details of the projectii) Total Area of land and its costiii) Site mapiv) Particulars of land development, fencing, gates, etc.b) Civil Structures :Detailed cost estimates along with measurements of vaious civil structure- Sheds- Store room- Milk room- Quarters, etc.c) Equipment/Plant and Machinery :i) Chaff cutterii) Silo pitiii) Milking machineiv) Feed grinder and mixerv) Milking pails/milk cansvi) Biogas plantvii) Bulk coolersviii)Equipment for manufacture of productsix) Truck/van (price quotations for the above equipments)d) Housing :i) Type of housingii) Area requirement- Adults- Heifers (1-3 years)- Calves (less than 1 year)e) Animals :i) Proposed speciesii) Proposed breediii) Source of purchaseiv) Place of purchasev) Distance (kms.)vi) Cost of animal (Rs.)f) Production parameters :i) Order of lactationii) Milk yield (ltrs. per day)iii) Lactation daysiv) Dry daysv) Conception ratevi) Mortality(%) - Adults - Young stockg) Herd projection (with all assumptions) :h) Feeding :i) Source of fodder and feed - Green fodder - Dry fodder - Concentratesii) Fodder crop rotations - Kharif - Rabi - Summeriii) Fodder cultivation expensesiv) Requirement and costs :Quantity required (kg./day)

Cost(Rs. / Kg) Lactation Dry Period Young Stock
Green Fodder
Dry Fodder
Concentrates
i) Breeding Facilities :i) Source :ii) Location :iii) Distance (km.) :iv) Availability of semen :v) Availability of staff :vi) Expenditure per animal/year j) Veterinary Aid :i) Source ii) Location iii) Distance (km.)iv) Availability of staffv) Types of facilities availablevi) If own arrangements are made -a) Employed a veterinary doctor/stockman/consultantb) Periodicity of visitc) Amount paid/visit (Rs.)vii)Expenditure per animal per year (Rs.)k) Electricity :i) Source ii) Approval from SEBiii) Connected loadiv) Problems of power failurev) Arrangements for generatorl) Water :i) Sourceii) Quality of wateriii) Abvailability of sufficient quantity for drinking, cleaning nad fodder productioniv) If investment has to be made, type of strucutre, design and costm) Marketing of milk :i) Source of salesii) Place of disposaliii) Distance (km.)iv) Price realised - (Rs. per liter of milk)v) Basis of paymentvi) Periodicity of paymenn) Marketing of other products :i) Animal - age - place of sale - price expectedii) Manure - Qty./animal Price/unit (Rs.)iii) Empty gunny bags - Number - Cost/bag (Rs.)o) Beneficiary's experience :p) Comments on technical feasibility :q) Government restrictions, if any :3. FINANCIAL ASPECTS :i) Unit Cost :

Sr.No Name of the Investment Physical units and specification Unit cost with component wise break-up (Rs.) Whether approved by state level unit cost committee
Total
Ii) Down payment/margin/subsidy(Indicate source & extent of subsidy):iii) Year-wise physical & financial programme :Year 1 Invest- Ment 2 Physical Units 3 Unit Cost (Rs.) 4 Total Outlay (Rs.) 5 Margin/ Subsidy (Rs.) 6 Bank loan (Rs.) 7 Refinance Assistance (Rs.) 8
Total
Iv) Financial viability (comment on the cash flow projection on a farm model/unit and enclose the same.)Particulars :a) Internal Rate of Return (IRR) :b) Benefit Cost Ratio (BCR) :c) Net Present Worth (NPW) :v) Financial position of the borrowers (to be furnished in case of corporate bodies/partnership firms)a) Profitability Ratio :i) GP Ratio ii) NP Ratiob) Debt Equity Ratio :c) Whether Income Tax & other tax obligations are paid upto date :d) Whether audit is upto date (enclose copies of audited financial statements for the last three years)vi) Lending Terms :i) Rate of Interest :ii) Grace Period :iii) Repayment Period :iv) Nature of Security :v) Availability of Government guarantee wherever necessary :4. INFRASTRUCTURAL FACILITIES :a) Availability of technical staff with bank/implementing authority for monitoringb) Details of -i) technical guidanceii) training facilitiesiii) Govt support/extention supportc) Tie-up arrangements with marketing agencies for loan recoveryd) Insurance -- Type of policy- Periodicity- Rate of premiume) Whether any subsidy is available, if so amount per unitf) Arrangements for supply of green fodder and cattle feedANNEXURE II Cattle and Buffalo Breeds Important Characteristics/Description

Sr.No. NameBreed Habitat/Main State Breeding Tract Districts Assembling Centres Areas of demand Remarks
1 2 3 4 5 6 7
A) CATTLE (INDIGENOUS)
1 Amrithmahal Erstwhile Mysore State now part of Karnataka Tumkur and Chitradurg Erstwhile Mysore State Karnataka and adjoining area Draught breed
2 Dangi Maharashtra and Gujarat Ahmednagar, Khandesh, Raigad, Nasik, Thane, Surat Weekly markets in Ahmednagar, Nasik, Thane and West Khandesh district Rocky ghat areas with heavy rainfall Draught breed
3 Denoi Andhra Pradesh Karnataka and Maharashtra Medak, Nizambad, Mahboobnagar, Adilabad Gulbarga, Bidar, Osmanabad, Nanded Weekly cattle markets, Jatras and fairs in Bidar and adjoining districts Bidar and adjoining districts Draught purposse breed
4 Gir Gir Hills and forest of South Kathiawar Junagarh, Also maintained by NDRI, Bangalore _ Gujarat, Rajasthan, Maharashtra Dairy purpose breed
5 Hallikar Karnataka Tumkur, Hassan & Mysore Dodbalapur, Chickballapur, Harikar, Devargudda, Chikkuvalli, Karuvalli, Chittavadgi (T.N.) North Arcot (T.N.) Hindupur, Somaghatta, Anantpur (A.P.) Dharwar, North Kanara, Bellary (KT) Anantur & Chittur (A.P.), Coimbatore North Arcot, Salem (T.M.) Draught breed
6 Hariana Haryana and Delhi, Punjab, Rajasthan Rohtak, Hissar, Gurgaon, Karnal, Patiala, Sangrur, Jaipur, Jodhpur, Alwar, Bharatpur Western districts Cattle fairs at Jehazgarh, Mahim and Bhadurgarh (Rohtak dist.) Hansi & Bhiwani (Hissar dist.) Throughout the country Dual purpose breed
7 Kangayam Tamil Nadu Coimbatore Avanashi, Tirppur, Kannauram, Madurai Athicombu Southern Districts of Tamil Nadu Draught breed
8 Kankrej Gujarat Ahmedabad, Banaskantha Ahmedabad, Radhanpur Rajasthan, Maharashtra
9 Khillari Maharashtra Solapur, Kolhapur, Satara Southern Districts of Maharashtra and adjoining districts of Andhra Pradesh and Karnataka Draught breed
10 Krishna Valley Maharashtra, Andhra Pradesh, Karnataka Watersheds of Krishna and adjoining areas of A.P. and KT Ichalkaranji (Kolhapur), Chincahli (Gulbarga)
11 Malvi Madhya Pradesh Guna, Vidisha, Raisen Sehora, Ujjain, Indore, Dewas, Gwalior, Shivpuri, Mandsaur, Jhabus & Dhar Agar (Shajapur) Singaj (Nimar) Sehore & Ashta (Sehore) Draught purpose
Rajasthan Jhalwar and Kotah Karimnagar (A.P.)
12 Nagori or Nagauri Rajasthan Jodhpur & Nagaur Nagaur Parbatsar (Nagpur), Balotra (Barmer), Puskar (Ajmer), Hissar, Hansi (Haryana State) Rajasthan, Haryana, Uttar Pradesh Draught purpose
13 Ongole Andhra Pradesh Ongole, Guntur, Narasaraopet, Bapatla and Nellore Available in Ongole tract of Andhra Pradesh - Dual Purpose
14 Rathi Rajasthan Alwar, Bharatpur, Jaipur Alwar, Rewari (Gurgaon), Pushkar (Ajmer) - - - Dairy breed
15 Sahiwal Punjab, Haryana, Delhi, U.P., Bihar, M.P., W.B. Sahiwal (erstwhile Montgomery) Jullundar, Gurdaspur, Amritsar, Kapurthala, Ferozepur (Punjab), NDRI, Karnal, Hissar, Anhora Durg (M.P), Lucknow, Meerut, Bihar, W.B. - Dairy breed
16 Red Sindhi Pakisatan All parts of India - - - Dairy breed
17 Siri Sikkim, Bhutan Darjeeling Hill Tract Darjeeling (Brought by dealers) - Dual purpose
18 Tharparkar Pakisatn (sind) Umarkot, Naukot, Dhoro Naro Chor Balotra (Jodhpur), Puskar (Ajmer), Gujarat State - Dairy breed
B) CATTLE (EXOTIC)

B) CATTLE (EXOTIC) 1 Brown Swiss Switzerland - India, Pakisatan & other Asian countries - Dairy breed
2 Holstein Friesian Holland Province of North Holland and West Friesland Through out the country (crossbreds) - Dairy breed
3 Jersy British Isles Island of Jersey Crossbreds available in all states/U.Ts - Dairy breed
B) BUFFALOES ANNEXURE - III

Reproductive and Productive Parameters (Traits) in Indian Cattle and Buffaloes Sr.No Name of the breed Age at first calving (months) Calving interval (months) Lactation yield (kg.) Lactation length (days) Dry period (days) Milk yield kg/day during lactat- ion
1 2 3 4 5 6 7 8
i) Cattle
a) Indian breeds
1 Dangi 54 17 600 300 210 2.0
2 Deogir 48 15 1,500 300 150 5.0
3 Deoni 53 14 810 270 150 3.0
4 Gir 48 16 1,350 270 210 5.0
5 Gaolao 46 16 600 300 180 2.0
6 Hallikar 46 20 600 300 300 2.0
7 Hariana 58 13 1,200 240 150 5.0
8 Kangayam 44 16 600 240 240 2.5
9 Kankrej 48 17 1,800 360 150 5.0
10 Khilari 52 16 240 240 240 1.0
11 Ongole 40 19 630 210 360 3.0
12 Rathi 40 19 1,815 330 240 5.5
13 Red Sindhi 42 14 1,620 270 150 6.0
14 Sahiwal 40 14 1,620 270 150 6.0
15 Tharparkar 50 14 1,620 270 150 6.0
16 Umblachery 46 17 360 240 270 1.5
17 Non-descript 60 19 405 270 300 1.5
B) Crossbred Cattle (Bos indicus Fx Bostaurus M)

1 H x F 34 14 2,970 330 90 9.0
2 H x BS 29 15 2,805 330 120 8.5
3 H x J 33 13 2,850 300 90 9.5
4 G x J 25 13 2,640 330 60 8.0
5 G x F 25 13 2,160 270 120 8.0
6 RS x F 29 12 2,295 270 90 8.5
7 RS x RD 28 12 2,160 270 90 8.0
8 RS x J 29 12 1,500 300 90 5.0
9 R x J 32 12 2,700 300 60 9.0
10 T x F 33 13 2,550 300 90 8.5
11 S x F 33 14 2,400 300 120 8.0
C) Buffaloes 1 Bhadawari 50 15 1,080 270 180 4.0
2 Murrah 42 16 1,800 300 180 6.0
3 Nili-Ravi 54 16 1,950 300 180 6.5
4 Surti 44 16 1,765 330 150 5.5
5 Mehsani 50 14 1,620 270 150 6.0
6 Jaffarabadi 50 14 1,620 270 150 6.0
7 Pandharpuri 56 14 1,350 270 150 5.0
8 Marathwadi 50 14 1,015 270 150 3.5
9 Nagpuri 50 14 1,350 270 150 5.0
10 Dharwari 50 14 1,350 270 150 5.0
11 Non-descript 50 16 540 270 210 2.0
Key : H = Hariana S = Sahiwal RS = Red Sindhi G = Gir T = Tharparkar L = Non-descript R = Rathi F = Friesian BS = Brown Swiss RD = Red dane J = Jersey Annexure - IV Unit cost of cows and buffaloes Approved by NABARD in some of the major States in India


Annexure VEconomics of two animal unit (buffaloes)Project at a Glance1 Unit Size : 2 Animals
2 Breed : Graded Murrah
3 State : Karnataka
4 Unit Cost (Rs.) : 18,223
5 Bank Loan (Rs.) : 15,400
6 Margin Money (Rs.) : 2,823
7 Repayment period : 5
8 Interest rate (%) : 12
9 BCR at 15% DF : 1.50:1
10 NPW at 15% DF (Rs.) : 29,187
11 IRR(%) : >50%
MODEL PROJECT FOR TWO ANIMAL UNIT(BUFFALOES) A INVESTMENT COST

Sr.No. Items Specifications Phy units Unit Cost (Rs. /Unit) Total Cost (Rs.)
1 Cost of animals 2 8,200 16,400
2 Insurance 2 689 1,378
3 Conc. Feed (4.5 kg/day/animal for 30 days) 135 Kg 1 3.3 446
4 Total cost 18,223
5 Margin money (15% of total cost) Say Rs. 2,733 2723
6 Bank laon (85% of total cost) Say Rs. 15490 15500
B TECHNO ECONOMIC PARAMETERS

i) No.of milch animals 2
ii) Cost of milch animals 8,200
iii) Lactation period (days) 280
iv) Dry period (days) 150
v) Milk yield (lts./day) 7
vi) Sale price of milk (Rs./lt) 7.75
vii) Sale of manure/animal/year (Rs.) 300
viii) Insurance premium for five years (%) 8.4
ix) Veterinary aid/animal/year (Rs.) 150
x) Labour (Rs.) Family labour
xi) Cost of electricity & water (Rs./animal) 100
xii) Interest rate (%) 12
xiii Repayment period (years) 5
xiv) Income from sale of gunny bags 20 bags/tonne @ Rs. 5/bag 100
xv) Feeding schedule


S.No. Type of fodder/feed Price (Rs./kg) (Quantity in kg/day) Lactation Dry Period Period
a) Green fodder 0.2 25 25
b) Dry fodder 0.5 5 5
c) Concentrate 3.3 4.5 1
xvi) Animals will be purchased in two batches at an interval of 5 - 6 months xvii) It is assumed that the expenditure on calf rearing will nullify the sale value of calf / hiefer. xviii) Closing stock value (Rs. per animal) 4100 C LACTATION CHART

Sr.No Particulars Years
I II III IV V
i) Lactation Days
a) First batch 250 280 250 210 210
b) Second batch 180 210 210 210 210
Total 430 490 460 420 420

ii) Dry Days
a) First batch 110 80 110 150 150
b) Second batch - 150 150 150 150
Total 110 230 260 300 300
Annexure - V (Contd.) D CASH FLOW ANALYSIS

Sr.No. Particulars Years
I II III IV V
I Costs:
1 Capital cost* 17,777
2 Recurring cost
a) Feeding during lactation period
Green fodder 2,150 2,450 2,300 2,100 2,100
Dry fodder 1,075 1,225 1,150 1,050 1,050
Concentrate 6,386 7,277 6,831 6,237 6,237
Total 9,611 10,952 10,281 9,387 9,387
b) Feeding during dry period
Green fodder 550 1,150 1,300 1,500 1,500
Dry fodder 275 575 575 750 750
Concentrate 363 759 858 990 990
Total 1,188 2,484 2,733 3,240 3,240
c) Veterinary aid & breeding cover 225 300 300 300 300
d) Cost of electricity & water 150 200 200 200 200
Total 28,951 13,936 13,514 13,127 13,127
II BENEFITS
a) Sale of milk 23,328 26,583 24,955 22,785 22,785
b) Sale of Gunny bags 205 232 218 200 200
c) Sale of manure 450 600 600 600 600
d) Closing stock value 8,200
Total 23,982 27,414 25,773 23,585 31,785
III DF @15% 0.870 0.756 0.658 0.572 0.497
IV DISCOUNTED COSTS AT 15% 25,175 10,537 8,886 7,505 6,526 58,630
V DISCOUNTED BENEFITS AT 15% 20,854 20,729 16,946 13,485 15,803 87,817
VI NPW @ 15% 29,187
VII BCR @ 15% 1.50:1
VIII DF @ 50% 0.667 0.444 0.296 0.198 0.132
IX NET BENEFITS -4,969 13,479 12,259 10,458 18,658
X DISCOUNTED NET BENEFITS AT 50% -3,313 5,990 3,632 2,066 2,457 10,833
XI IRR >50%

* excluding the capitalised expenditure on concentrated feed E REPAYMENT SCHEDULE

Bank Loan (Rs) - 15500 Interest Rate (%) - 12 Capital recovery factor - 0.277 Year Income Expenses Gross surplus Equated annual instalment Net surplus
I 23,982 10,728 13,254 4,294 8,961
II 27,414 13,936 13,479 4,294 9,185
III 25,773 13,514 12,259 4,294 7,966
IV 23,585 13,127 10,458 4,294 6,165
V 23,585 13,127 10,458 4,294 6,165
Annexure VI Economics of a mini DAIRY unitTEN ANIMAL UNIT ( BUFFALOES)

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

A INVESTMENT COST S.No. Items Specifications Phy.units Unit Cost (Rs./unit) Total Cost (Rs.)
1 Cost of animals 10 8,200 8,200
2 Transportation cost of animals 10 300 3,000
3 Cost of construction of shed Sq.ft. 650 55 35,750
4 Cost of Store cum office Sq.ft. 200 100 20,000
5 Equipments (chaff cutter, milking pails, cans, technicians 10 500 5,000
6 Insurance 10 328 3,280
7 Fodder raising expenses @ Rs.3000/acre 2 3,000 6,000
8 Total cost 155,030
9 Margin money (15% of total cost) Say 23255 23330
10 Bank loan (85% of total cost) Say 131776 131700
ANNEXURE VI (contd)

B TECHNO ECONOMIC PARAMETERS i Animals will be purchased in two batches at an interval of 5-6 months
ii Second/Third lactation animals within 30 days of calving will be purchased in first year
iii No. of acres of irrigated land for fodder production considered in 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. 2
iv In the first year the fodder production expenses are capitalised for one season (Rs. per acre per season) and manure is utilised for fodder production 3,000
v 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.
vi No. of milch animals 10
vii Cost of milch animals 8,200
viii Transportation cost (Rs. per milch animal including followers) 300
ix Civil structures:
a) Shed (sft. per milch animal) b) Store and office (sft) 65 200
x Cost of construction a) Shed (Rs. per sft) b) Store and office 55 100
xi Cost of equipment (Rs per milch animals) 500
xii Lactation period (days) 280
xiii Dry period (days) 150
xiv Milk yield (lts/day) 7
xv Sale price of milk (Rs/lt) 7.75
xvi Income from sale of gunny bags (20 bags/tonne @ Rs.5/bag) 100
xvii Expenditure on dry fodder for dry and lactation period requirement (kg/day) Cost (Rs/kg) 5 0.5
xviii Expenditure on concentrates a) Requirement (kg/day) Lactation period Dry period b) Cost (Rs/kg) 4.5 1 3.3
xix Veterinary aid/animal/year (Rs) 150
xx Labour (Rs./month) 900
xxi Insurance premium (%) 4
xxii Cost of electricity, water & other overheads (Rs/animal) 200
xxiii Depreciation(%) a) Sheds b) Equipment 5 10
xxiv Value of closing stock 4,100
xxv Interest rate(%) 13.5
xxvi Repayment period (years) 5
ANNEXURE VI (Contd.)

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

Sr.No Particulars I II Year III IV IV
I Costs
1 Capital cost* 145,750
2 Recurring cost
a) Green fodder raising expenses 12,000 18,000 18,000 18,000 18,000
b) Feeding during lactation period
Dry fodder 5,375 6,125 5,750 5,250 5,250
Concentrate 31,928 36,383 34,155 31,185 31,185
Total 37,303 42,508 39,905 36,435 36,435
c) Feeding during dry period
Dry Fodder 1,375 2,875 3,250 3,750 3,750
Concentrate 1,815 3,795 4,290 4,950 4,950
Total 3,190 6,670 7,540 8,700 8,700
d) Veterinary aid & breeding cover 1,125 1,500 1,500 1,500 1,500
e) Cost of electricity & water 1,500 2,000 2,000 2,000 2,000
f) Insurance 3,280 3,280 3,280 3,280 3,280
g) Labour cost 10,800 10,800 10,800 10,800 10,800
Total 188,868 52,678 50,945 49,503 48,635
II BENEFITS
a) Sale of milk 116,637 132,912 124,775 113,925 113,925
b) Sale of Gunny bags 1,023 1,218 1,165 1,095 1,095
c) Depreciated value of sheds - 26,813
d) Depreciated value of equipments 2,500
e) Closing stock value 41,000
Total 117,660 134,130 125,940 115,020 185,333
III DF @ 15% 0.87 0.76 0.66 0.57 0.50
IV DISCOUNTED COSTS AT 15% 164,233 39,832 33,497 28,303 24,180 290,045
V DISCOUNTED BENEFITS AT 15% 102,313 101,422 82,808 65,763 92,143 444,448
VI NPW @ 15% 154,403
VII BCR @ 15% 1.53:1
VIII DF @ 50% 0.667 0.444 0.296 0.198 0.132
IX NET BENEFITS -71,208 81,453 74,995 65,518 136,698
X DISCOUNTED NET BENEFITS AT 50% 47,472 36,201 22,221 12,942 18,001 41,893
XI IRR >50
* 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 (in Rs.) Year Income Expenses Gross surplus Equated annual installment Net surplus
I 117,660 33,838 83,823 37,798 46,025
II 134,130 52,678 81,453 37,798 43,655
III 125,940 50,945 74,995 37,798 47,197
IV 115,020 49,503 65,518 37,798 27,720
V 115,020 48,635 66,385 37,798 28,587
Annexure - VII

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

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

Programme for vaccination of farm animals against contagious diseases Sr. No. Name of disease Type of vaccine Type of vaccination Duration of immunity Remarks
1 2 3 4 5 6
1 Anthrax (Gorhi) Spore vaccine Once in an year premonsoon vaccination One season -
2 Black Quarter (Sujab) Killed vaccine - do - - do - -
3 Haemorrhagic Septicaemia (Galghotu) Ocladjuvant vaccine - do - - do - -
4 Brucellosis (Contagious abortion) Cotton strain 19 (live bacteria) At about 6 months of age 3 or 4 calvings To be done only in infected herds
5 Foot and Mouth disease (Muhkhar) Polyvalent tissue culture vaccine At about 6 months of age with booster dose 4 months later One season After vaccination repeat vaccination every year in Oct./Nov.
6 Rinderpest (Mata) Lapinised avianised vaccine for exotic and crossbred catte, caprinised vaccine for zebu cattle. At about 6 months of age Life long It is better to repeat after 3 to 4 years
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Re: Dairy Farming
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str82me
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str82me
 
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Re: Dairy Farming - September 14th, 2009

Hi

this was a good & highly education post from you. We are 4 partners planning to setup a dairy project in Lucknow, appreciate if you could guide us on the same. We do not have any prior experiance in this business excepting one partner who has a rural background & some expertice in this.

We are planning to run the project with a min capacity of 10 Buffaloes for the first 2 months which would be managed by a supervisor cum helper (with core expertise) & a dedicated labour on a 3000 sq ft rented plot.

After the inetial two month we plan to move on a bigger plot of land & increase the capacity to 70 Buffaloes.

I expect some noble advice & if possible a project report if you can send me on getpuneetAThotmail.com

Thanking you in anticipation

...PuneetS
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Re: Dairy Farming - June 3rd, 2010

Hi PuneetS,

Any update on your dairy project?
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Abhijeet S
abhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to beholdabhishreshthaa is a splendid one to behold
 
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Re: Dairy Farming - June 8th, 2010

hey friend, i very interesting file related to DAIRY FARMING check it out.....

http://www.nsic.co.in/schemes/docume...%20FARMING.pdf


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