PRACTICAL PROFITABLE DAIRY UNIT TO BEGIN WITH
(3 Cows and 2 Buffaloes)
ASSUMPTIONS
1. 2. Cows: Production level: 3000 lits. Per lactation Cost : Rs.15,000/ each Period between successive calving : 14 months Pure milk sold @ Rs.10 per lit (minimal cost)
Buffaloes: Production Level: 2400 lit. Cost : Rs.20,000/ each Period between successive calving : 16 months Pure milk sold at Rs.14 per lit
3. Feed Cost: Dry fodder @ Rs.1.50 per Kg , Green fodder @ 0.70 per Kg , Concentrate @ Rs.8.00 per Kg 4. Feeding: Dry fodder @ 5 Kg / day; Green Fodder @ 20 Kg /day; Concentrate @2 Kg /day (Maintenance ration, needs to be adjusted with production, general thumb rule for Cow: Milk production / 3 Buffalo: Milk production / 2.5); Mineral Mix @ 30 gms per day (Rs.50 per Kg.) 5. Insurance: Crossbred cow @ Rs.800 per animal per year; Buffaloes @ Rs.600 per animal per year. 6. Depreciation: @ 20% year for animals ; 10% per year for Equipment ; 20% per year for building 7. Veterinary Care: @ Rs.200 per animal per year. 8. Labor ( Mostly family) : @ Rs.5000/ year for 5 animals 9. Interest: @ 15% 10. Cost of Construction: @ Rs.70 per sq. ft; Cow shed and Store cost Rs.5000 per animal. A) CAPITAL INVESTMENT CROSS BRED COWS 3 numbers Cost of Animals Rs.45,000 Buildings Rs.15,000 Equipment Rs.3,000 TOTAL Rs.63,000 CAPITAL INVESTMENT GRAND TOTAL: Rs.1, 15,000/ BUFFALOES 2 numbers Rs.40,000 Rs.10,000 Rs.2,000 Rs.52,000
B) FIXED EXPENSES CROSS BRED COWS 3 numbers Rs.9,450/ Rs.9,000/ BUFFALOES 2 numbers Rs.7,800/ Rs.8,000/ Rs.1,000/ Rs.200/ Rs.1,200/ Rs.17,300/
Interest on Capital @15% Depreciation of Livestock @20% per year Depreciation on Building Rs.1,500/ @10% per year Depreciation on equipment Rs.300/ @ 10% per year Insurance Rs.2,400 TOTAL Rs.22,650/ TOTAL FIXED GRAND TOTAL: Rs.39, 950/
C) RECURRING EXPENSES CROSS BRED COWS 3 numbers Rs.15,330/ BUFFALOES 2 numbers Rs.10,220/
Green fodder @20kg /day Cost 0.70 / kg Dry fodder @ 5kg/day Rs.8,212.50 Rs.5,475/ Cost1.50/kg Cost of Concentrate ( Rs.17,520/ Rs.11,680/ Maintenance feeding) Cost Rs.8 per Kg Labor Rs.3,000/ Rs.2,000/ Veterinary care Rs.600/ Rs.400/ @Rs.200per animal /year Misc. Expenses Rs.1,500/ Rs.1,000/ Rs.500/animal TOTAL RECURRING Rs.46,162.50/ Rs.30,775/ TOTAL RECURRING GRAND TOTAL = Rs.76,937.50/
TOTAL EXPENSES ( B + C ): Rs.1,16,887.50
D) INCOME 1. Sale of Milk : CROSS BRED COWS 9000 Lits. 300 Lits. 8700 Lits @ 60% ( 5220 Lits) Rs.52,200 @40% ( 3480 Lits) BUFFALOES 4800 Lits. 265 Lits 4535 Lits @30% (1360 Lits.) Rs.19,040 @ 70% ( 3175 Lits)
Total Milk Produced Fed to calves Total Milk Sold Milk Sold as Pure Milk Milk Sold as Mixed Milk @ Rs.12 / lit TOTAL INCOME FROM MILK 2. Sale of Calves
Total: 6655 Lit. Amount : Rs.79,860/ Rs. (52,200 + 19,040 + 79,860 ) = Rs. 1,51,100/
Calves available for sale Amount TOTAL INCOME FROM SALE OF CALVES
CROSS BRED COWS 2 Female + 1 male Rs.900/ (@Rs.300/ calve)
BUFFALOES 1 Male + 1 Female Rs.600/ ( @Rs.200 for male Rs.400 for female) Rs.1,300/ ( Rupees Thirteen hundred only)
3. Sale of Manure @ Rs.500/ animal / year CROSS BRED COWS BUFFALOES Rs.1,500 Rs.1,000 TOTAL INCOME FROM SALE OF MANURE : Rs.2,500/ ( Rupees two thousand five hundred only)
TOTAL INCOME Rs.(1,51,100 +1,300 + 2,500) = Rs.1, 54, 900
PROFIT
NET INCOME TOTAL EXPENSES (Fixed + Recurring) Rs.38, 012.50 (Rupees thirty eight thousand twelve and fifty paisa) Profit per animal: /year Rs.7, 602.40/ Profit per animal /month: Rs. 633.50/