DAIRY UNIT COST OF REARING TWO CROSSBRED COWS (AV.

DAIRY MILK YIELD-6 LITRES/COW)

(Amount in Rs.)

A.

CAPITAL COST
1. Cost of 2 cows with calves at foot in early stages of 1st or 2nd lactation @ Rs.10,000/- each 2. Housing 3. Transportation cost per unit 4. Equipment - A 20,000.00 4,000.00 2,000.00 500.00 TOTAL 26,500.00

B.

RECURRING COST
1. cost of concentrate feed @ 4 kg. Per day per cost for 30 days @ Rs.6.30 per kg. 2. Insurance @ 5% of the cost of cows 3. Miscellaneous (Medicine, electricity, dry fodder etc.) TOTAL - B 756.00 1,000.00 200.00 1,756.00

TOTAL - A + B UNIT COST BANK LOAN (90%)

28,256.00 28,300.00 25,500.00

ASSUMPTIONS
A. Technical parameters 1. Crossbred (Jersey/H.F.) cows are purchased with calves at foot in early stages of 1st or 2nd lactation at an interval of 5 6 months. 2. a) Peak daily milk yield (litres) : 9 b) Average daily milk yield (litres) : 6 3. Feeding schedule During lactation (in kgs.) a. Green fodder b. Dry fodder c. Conc. Mixture 20 3 4 (Rs. per day) During Cost of feeding Cost of feeding dry period during during dry (in kgs.) lactation period 20 4 1 10.00 3.90 25.20 39.10 10.00 5.20 6.30 21.50

4. Lactation and dry days : 1st yr. Lactation days Dry days 420 120 2nd yr. 510 210 3rd yr. 510 210 4th yr. 510 210 5th yr. 510 210

5. Gunny bags available for sale (No.): 1st yr. 16 2nd yr. 20 3rd yr. 20 4th yr. 20 5th yr. 20

B. Financial parameters 1. Cost of green fodder (Rs. per kg.) 2. Cost of dry fodder (Rs. per kg.) 3. Cost of conc. Mix. (Rs. per kg.) 4. Medicines, vaccines & breeding expenses (Rs.per cow per year) 5. Insurance of cows ( per year) 6. Sale price of milk (Rs. per litre) 7. Sale price of gunny bags (Rs.) 8. Value of manure (Rs. per cost per year) expenses (Rs. per cow per year)

0.50 1.30 6.30 200 5% 11.00 10.00 400.00

ECONOMICS OF A 2 C.B. COW UNIT (6 LITRES PER DAY)

(Amount in Rs.) INCOME 1. Sale of milk 2. sale of gunny bags 3. Sale of manure TOTAL 1st yr. 27720 160 600 28480 2nd yr. 33660 200 800 34660 3rd yr. 33660 200 800 34660 4th yr. 33660 200 800 34660 5th yr. 33660 200 800 34660

EXPENDITURE 1. Cost of feeding a. during lactation b. during dry period 2. Medicines, vaccines and breeding expenses 3. Insurance of cows TOTAL GROSS SURPLUS

1st yr. 16422 2580 300 1000 20302 8178

2nd yr. 19941 4515 400 1000 25856 8804

3rd yr. 19941 4515 400 1000 25856 8804

4th yr. 19941 4515 400 1000 25856 8804

5th yr. 19941 4515 400 1000 25856 8804

FINANCIAL ANALYSIS
1st yr. 26500 20302 46802 28480 -18322 2nd yr. -25856 25856 34660 8804 3rd yr. -25856 25856 34660 8804 4th yr. -25856 25856 34660 8804 5th yr. -25856 25856 34660 8804

Capital cost Recurring cost Total cost BENEFIT NET BENEFIT

NPW @ 15% D.F. BCR @ 15% D.F. IRR

...

5925 (+) 1.06 : 1.00 32.43%

REPAYMENT PERIOD : 5 YEARS WITHOUT GRACE PERIOD

(SOURCE - NABARD)

DAIRY UNIT COST OF REARING TWO CROSSBRED COWS (AV. DAILY MILK YIELD 8 LITRES / COW)
(Amount in Rs.)

A.

CAPITAL COST
1. Cost of 2 cows with calves at foot in early stages 1st or 2nd lactation @ Rs.15,000/- each 2. Housing 3. Transportation cost per unit 4. Equipment @ Rs.250/- per cow TOTAL A 30,000.00 4,000.00 2,000.00 500.00 36,500.00

B.

RECURRING COST
1. Cost of concentrate feed @ 5 kg. Per day per cow for 1st cow for 30 days @ Rs.6.30 per kg. 2. Insurance @ 5% of the cost of cows 3. Miscellaneous (Medicine, electricity, dry fodder etc.) TOTAL - B 945.00 1,500.00 200.00 2,645.00

TOTAL - A + B UNIT COST BANK LOAN (90%)

39,145.00 39,150.00 35,200.00

ASSUMPTIONS
A. Technical parameters 1. Crossbred (Jersey/H.F.) cows are purchased with calves at foot in early stages of 1st or 2nd lactation at an interval of 5 6 months. 2. a) Peak daily milk yield (litres) : 13 b) Average daily milk yield (litres) : 8 3. Feeding schedule During lactation (in kgs.) a. Green fodder b. Dry fodder c. Conc. Mixture 20 3 4 (Rs. per day) During Cost of feeding Cost of feeding dry period during during dry (in kgs.) lactation period 20 4 1 10.00 3.90 31.50 45.40 10.00 5.20 6.30 21.50

4. Lactation and dry days (for 2 animals): 1st yr. Lactation days Dry days 420 120 2nd yr. 510 210 3rd yr. 510 210 4th yr. 510 210 5th yr. 510 210

5. Gunny bags available for sale : 1st yr. 22 B. Financial parameters 1. 2. 3. 4. 5. 6. 7. 8. Cost of green fodder (Rs. per kg.) Cost of dry fodder (Rs. per kg.) Cost of conc. Mix. (Rs. per kg.) Medicines, vaccines & breeding expenses (Rs.per cow per year) Insurance of cows ( per year) Sale price of milk (Rs. per litre) Sale price of gunny bags (Rs.) Value of manure (Rs. per cost per year) expenses (Rs. per cow per year) 0.50 1.30 6.30 200 5% 11.00 10.00 400.00 2nd yr. 28 3rd yr. 28 4th yr. 28 5th yr. 28

ECONOMICS OF A 2 C.B. COW UNIT (8 LITRES PER DAY)

(Amount in Rs.) INCOME 1. Sale of milk 2. Sale of gunny bags 3. Sale of manure TOTAL 1st yr. 36960 220 600 37780 2nd yr. 44880 280 800 45960 3rd yr. 44880 280 800 45960 4th yr. 44880 280 800 45960 5th yr. 44880 280 800 45960

EXPENDITURE 1. Cost of feeding a. during lactation b. during dry period 2. Medicines, vaccines and breeding expenses 3. Insurance of cows TOTAL GROSS SURPLUS

1st yr. 19068 2580 300 1500 23448 14332

2nd yr. 23154 4515 400 1500 29569 16391

3rd yr. 23154 4515 400 1500 29569 16391

4th yr. 23154 4515 400 1500 29569 16391

5th yr. 23154 4515 400 1500 29569 16391

FINANCIAL ANALYSIS
Capital cost Recurring cost 1st yr. 36500 23448 2nd yr. -29569 3rd yr. -29569 4th yr. -29569 5th yr. -29569

Total cost
BENEFIT NET BENEFIT

59948 37780 -22168

29569 45960 16391

29569 45960 16391 ...

29569 45960 16391

29569 45960 16391

NPW @ 15% D.F. BCR @ 15% D.F. IRR

21416 (+) 1.17 : 1.00 >50 %

REPAYMENT PERIOD : 5 YEARS WITHOUT GRACE PERIOD

(SOURCE - NABARD)