business plan for dairy farm (30 animals final11
TRANSCRIPT
Business Plan for Dairy Farm (30 Animals)
By: Syed Masood Ali
Project Definition
• Build up a Small level Dairy farm to produce and sale Fresh milk without any kind of Adulteration in cost effective and scientific way to maximize profit.
Market Feasibility• Fresh Milk demand is growing day by day and always is
higher than supply, So business entry is not restricted to create demand or to go for price war.
YearAnnual Production
(Million Liters)Annual Consumption
(Million Liters)
08-09 35,495 36,361
2009-10 37,669 38,188
Source: Ministry of Livestock and Dairy Development
Market Entry Timing
• The demand of milk in summer is high as compared to winter. That’s why the animals in
• summer are sold at a bit higher prices as compared to winter. So the proposed business
• can be started before the onset of summer season
Proposed Capacity
• Initial herd size will be of 30 animals, which is economical to justify the overhead cost.
• Herd mix will be with ratio of 3:2 for buffaloes and cows with second Lactation (Calving) to get maximum profit.
• Buffaloes (NiliRavi / Kandi) 18 Heads• Cows (Crossbred / Local) 12 Heads
Project Investment• The total cost of project is Rs. 5,251,000
Description TotalCattle (30) 3,000,000 Construction 1,456,100 Equipments 416,000 Total Capital Cost (Rs) 4,872,100
Fodder 2 Months 164,094 Operational Exp. 2 Months 143,000 Working Capital (Rs) 307,094
Total Investment (Rs) 5,179,194
Infrastructure CostDescription Sq.ft Rate/Sq.ft Total Cost
Shed for Cows /Buffalos 2,400 300 720,000
Open Paddock for Cows / Buffalos 2,400 15 36,000
Shed for Calves 540 300 162,000
Open Paddock for Calves 540 15 8,100
Stores for fodder, concentrate & machine room 300 300 90,000
Office, Servant Room, Wash room 400 500 200,000
Silage Bunker 1600 150 240,000
Total 1,456,100
Machinery & Equipments Description Qty Price Total
Chopper 1 25,000 25,000
Water pump 1 32,000 32,000
Calf Feeder 5 1,800 9,000
Freezer 2 35,000 70,000
Waist Trolley, Cart, Utensils & other Tools 1 180,000
Computer, Printer, wiring and other equipments 1 100,000
Total 416,000
Fodder Cost
Description Monthly
Green Fodder 18,597
Dry 22,950
Concentrate 40,500
Total 82,047
Man Power Requirement
Description Qty Salary Total
Supervisor 1 1,5000 15,000
Labor 3 7,000 21,000
Food 4 2,500 10,000
Total Salary 46,000
Operational Expenses
Description Total
Electricity 15,000
misc. Exp 10,500
Total Operational Expenses 25,500
Land Requirement
• Total 5 Acer Land will be leased @ Rs.15,000 / Acer Annually costing total Rs. 75,000
• One Acer will be required for Cattle shed, Store, Office and living room for workers.
• 04 Acer will be used for cultivating Fodder.
Fodder ProductionDescription Maize Sorghum S.S hybrid Berseem Lucerne Oats
Land preparation 1,876 1,948 1,948 1,750 1,750 1,500
Seed & Sowing 2,400 1,376 4,000 2,500 2,500 2,500
Fertilizer 3,500 3,500 10,000 5,000 5,000 4,500
Irrigation 1,500 1,500 2,000 2,200 1,500 1,000
Land Revenue 3,500 3,500 9,000 12,500 12,500 3,750
Harvesting/Transport
3,750 3,500 7,000 6,000 7,500 6,000
Total expenditure 16,526 15,324 33,948 29,950 30,750 19,250
Yield(Kilos) 38,462 38,341 76,923 49,279 49,880 55,288
Price/kg(Rs) 0.43 0.40 0.44 0.61 0.62 0.35
Source: Livestock & Dairy Development Department, Lahore & FAO Statistical Databases
Production
Description Avg. Daily Milk
Lactation Days Qty Total Production
Cow 12 300 12 3,551
Buffalo 8 300 18 3,551Total Production (liters) 7,101
Monthly Milk Production
Yearly Claves Production
Total Calves Mortality Rate Death Qty Total Calves for Sale
30 20% 6 24
Revenue
Total Milk for sale Average Price Total Sale7,101 42 298,258
Milk Revenue
Claves RevenueCalves for sale Avg. Rate Yearly Monthly
22 9,000 198,000 16,500
Total Monthly Revenue 314,758
Profit & LossRevenue
Milk Sale 298,258 Calves Sale 16,500
Total Revenue 314,758
COGSFodder 82,047Medicine 1,950Land Lease 6,250
Total COGS 90,247
GROSS Profit 224,511 71%
Indirect ExpenseSalary 46,000Operational Exp. 25,500
Total Indirect Expenses 71,500
Net Profit 153,011 49%
Accounts Summary
Description AmountInvestment 5,179,194
Net Profit (Yearly) 1,837,384
ROI 35%
Payback Period 2.8
Net Profit (Monthly) 153,115
Revenue per cattle 5,103