100cows Project Withtext for Learning

7/30/2019 100cows Project Withtext for Learning

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PROJECT REPORTOFCOW DAIRY PROJECT FOR MILK PRODUCTION

Submitted by


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CONTENTSPART- A PARTICULARS PAGE NO1. PREFACE, INTRODUCTION AND PROJECT DETAIL 32. PROJECT AT GLANCE 4

3. SHED DIMENSIONS ,AREA REQUIREMENTS AND STRUCTURE COSTS 54. COST OF PROJECT AND ADVANCES REQUIRED FROM BANK 65 STATEMENT OF LIVESTOCK PROJECTIONS 76 ASSUMPTIONS FOR TECHNICAL PARAMETERS AND COSTS 87 MILK PRODUCTION PROJECTIONS 98 EXPECTED SALE PRO CEEDS STATEMENT 99 EXPECTED OPERATIONAL EXPENDITURE STATEMENT &PROJECTED BALANCE SHEET

CASH FLOW STATEMENT 1010 STATEMENT OF PROFIT AND LOSS,RETURN ON CAPITAL INVEST&BENEFIT :COST 1111 LOAN DISBURSEMENT AND PAYMENT SCHEDULE 1112 CASH BALANCE AFTER DEBT SERVICE STATEMENT 1113 COST OF MILK PRODUCTION STATEMENT 12 REQUIREMENTS OF FEED FODDER

AND LAND FOR FODDER CULTIVATION 13

PART- B

Detail of Project Animals Production & Management 14-25

Annexure-A - Sheds/HousingAnnexure-B - Farm machinnary


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1 PREFACE, INTRODUCTION AND PROJECT DETAIL

World milk production has doubled in the last few decades. India is the largest milk producing country in the world. But even then, there ishuge gap in demand and supply of milk in most parts of our country. The present low level of per capita availability of milk with the higher growth ofpopulation clearly indicates the ever-increasing need as well as demand of fresh milk in the country as whole. Further, most of the milk comes fromtraditional dairy farms and individual farmers without giving much consideration for the quality of milk. The existing ways of supply milk toconsumers, are

i) collecting the raw milk from particular milk shed area to supply to the city consumer as such .ii) the milk is brought to the big capacity milk processing plant situated near the city, it is processed and distributed iin the city where the plant is

located.Plants of such capacity require continuous supply of milk from existing small rural livestock units.With modernisation and urbanisation the rural

milk supply to these plants are likely to s uffer both in terms of quantity and quality. Enormous scope exists for modern dairry farming for producingquality milk for meeting increasing demand of urban population.

The last few years have also witnessed a consistent increase in the organized production of milk .Over time cow rearing has shifted from thebackyard to commercial farms and largebusiness enterprises. Apart from dairy farms growth in the traditional bastions, it is also gaining a footholdin other regions of the world where cattle rearing was always a traditional activity. The immense popularity of cow milk has ensured growth in dairycattle industry. However for this species to perform optimally under the pressure of intensive production systems and having focus on the desiredhigher output, it is highly desireable to have scientific management with some degree of mechanisation . Cattle farminng in india, although potentiallyexcellent milk production, still languish in obscure conditions of poor nutrition, breeding, management and welfare under traditional system andcertainly performe excellent when scientifically managed.

Keeping all these points in view, it has been proposed to establish a commercial dairy farm (100cattle and followers), producing about 1000 Lt.Milk/day, initialy the milk will be sold as such to bulk buyer and later on after processing and packaging in the near by areas.Feasibility of the venture of the proposed Mini Dairy mainly depends on the effective production and procurement of low cost quality feedProposal for setting up the cattle dairy farm has been taken by conducting necessary surveys confirming the regular availability of good quality rawmilk at reasonable price and market where the finished products can be distributed with reasonable profit. Care full studies regarding the milkproduction, feed/fodder availability and market situation indicates that the proposal is technically and economically feasible the proposed areaaround Karnal (Village Naru Kheri)


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buffalo farming.

During the course of research on this project, I was assisted and encouraged by many

individuals and organizations. I owe my gratitude to them all. In particular, I would like to

thank Dr Ole Lind, DeLaval, Tumba, Sweden, Prof. Kerstin Svennersten-Sjauna and Ms

Josephina Nordstrom, SLU, Sweden and Prof. Rupert M. Bruckmaier, University of Bern,

Switzerland. A special thanks also to Mr. Hemant Ogale, M.D. DeLaval India for his strong

support for improving dairy buffalo production in India.C. Santosh Thomas

Preface

DeLaval

RESULTS AT GLANCE:

Year-1 Year-2 Year-3 Year-4 Year-5 AV.

1)ESTIMATED CAPITAL REQUIRED (Rs) 19,738,452 or rupees 197385 per animal unit a) Owners Capital (Rs) 6513689

b) Loan Amount (Rs) 13224763

2a) RETURN ON CAPITAL INVEST. (%) (Excluding gain in animals) 22.05 9.70 15.06 23.18 24.48 18.89

2b) RETURN ON CAPITAL INVEST. (%) (considering animal gains +/_ ) 17.13 9.37 16.61 22.98 23.83 17.98

3) BC RATIO 1.57 1.24 1.35 1.54 1.54 1.45

4) COST OF MILK PRODUCTION (Rs)with out considering gain in animal units 20.50 27.66 28.32 25.58 26.67 25.75

5) COST OF MILK PRODUCTION (Rs) with considering gain in animal units 23.13 27.89 27.30 25.70 27.05 26.21

3.Dairy Management2 PROJECT AT GLANCE:

PROPOSED LOCATION OF PROJECT:Village ------------------

NAME&ADDRESS OF ENTERPRENIOUR: -----------------------------S/O------------------

INTRODUCTION:

---------------------------having newly established company/organisation with its farm land at village------, Dist ------l, state----- The organisation has this proposalfor establishing a commercial dairy buffalo farm , initialy procouring best available breed of lactating cows advance pregnant cows ,and to manage themscientifically using latest techno-economically feasible techniques,to produce about 1000 lt.milk/day .Initialy the raw milk will be sold to bulk milkpurchaser/local market and subsequently after pasteurisation and packing.Technical programme:The proposed dairy farm will have100 cows and followers. Animals will breed using artificial insemination techniques . Non productive and surplus animals willbe disposed of at the earliest. The farm will keep only high yielding cows above break even production levels.The farm will ensure minimum possibleintercalving period and will manage feeding using least cost feed formulation techniques. The project will be impemented with minimum gestation period andwill be managed by the above address enterpreniours using services of hired manager and experienced consultants.Funds Requirements:The progect requires investment of Rs1,97,38,452 (both investments and recurring costs).The cost return projections of the projecthas been worked as 4-5 years. The margin money will be 33%and rest of the funds will be borrowed from the bank loan amount 13224763 . A portion of

the fund to meet the depriciation on building and equipment @10% will be kept aside each year to create a depriciation fund.Back ground of the promoters of the project: Directors of the project Mr ------------------------- is qualified ,experinced and have basic knowledge andtraining in the field of dairy farming.persons and are experinced managers of other established buiseness.Schedule of impementation:The enterpreneour has already procoured the land and livestock will be procoured after the complition of animals shed .Animals will be purchased in2-3lots.The complition of shed will require 2-3 months and animal procouremetf another 2-3 months.


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3 SHED DIMENSIONS , AREA REQUIREMENTS AND STRUCTURES COST:

Size of the Dairy Unit ( cow) 100

a)Sheds breadth calculation

Feeding manger(ft) 2.5

Standing place(ft) 5.6

feeding alley for fodder trolley(ft)in center 10animalsitting place in breadth(ft) one side 12.5

height(ft) 20

height at eves(ft) 12

open space/side(ft)kachha(covered only in c.b cows ) 30

shed bredth excluding acrylic covered kaccha place 51.2

shed breadth inclding tractor space(ft)including open space 111.2

b)length calculation

number of animals/row 50Space width/animal (ft) 2.5

No of water troughs/side 0

T. water trough length (@5ft) 0

total space at entry and end(ft) 0

Total length (ft) 125

Area of one shed and Number of sheds and thire cost calculations:

CoveredArea /shed(sq.ft) excluding kaccha acry lic covered area 6400 `

CoveredArea /animal(sq.ft) 64

Area open(sq.ft) 7500

total area/shed (sq ft) 13900

total area/animal (sq ft) 139Rate/Sq ft covered area with fittings 600

Rate /sq feed acrylic sheet covered kaccha area 250

Cost covered area(Rs) 3840000

Cost Open area(Rs) 1875000

Total cost/shed (Crore) 0.5715

Av.Total number of animal unit 100.0

Number of sheds required 1.00

Total Cost of sheds and paved open area(Crore Rs) 0.57

Cost of other structures(stores,offices ,chilling unit shed etc /roads) @20%(Crore) 0.114

Total Cost of structure(shed+paved open area) and roads(Crores) 0.69


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4 COST OF PROJECT AND ADVANCES REQUIRED FROM BANK

Cost of sheds +open paved area+roads+other structures i.e office,store 0.69

Cost of machinary(milking,feeding,cleaning etc)@60%of shed +structures cost(crore) 0.4115

Cost of livestock(crore)cowsand 1 bulls(one teaser ) 0.7575

Other costs(consultancy,one month working capital etc) 0.119

Total costs(crore) 1.97

Market price ofcow considered on per liter average daily yield (Rs) 5000

Estimated cost/cow (Rs) 75000

Estimated Housing +Equipments cost (Rs), 10972800

Estimated capital Investment /cow unit (Rs) 197385

Estimated total capital (Rs)Detail given below 19738452

Rate Of Interest 12

Margin money (%) 33

Owners Capital 6513689

Term Loan from bank (Rs) = 13224763


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5) STATEMENT OF LIVESTOCK PROJECTIONSLIVESTOCK PROJECTIONS:

Initial live stock Year-1 Year-2 Year-3 Year-4 Year-5 AV.Total lactating cow units at the start 100 95.1 95.1 101.8 99.4 98.3

bull and teaser bull purchased 0 0 0 0 0 0.0

cow purchased for replacement(advance preg) 0 4.9 4.9 0.0 2.4 2.5

Total preg/conceivable cow 100.0 100.0 100.0 101.8 101.8 100.7Total heifer at the start of year 0.0 0.0 21.0 16.8 16.0 10.7

Total Growing calf(above 1Year) 0.0 23.3 18.6 17.7 17.7 15.4

Total female young calf brought/born of year 50.0 40.0 38.0 38.0 40.7 41.4

initial Total animal units at start (including calf born) 115.0 112.0 111.4 113.2 114.0 100.7

mortality detailTotal lactating cow mortality(No) 3.0 3.0 3.0 3.1 3.1 3.0

Total heifer mortality(No) 0.0 0.0 0.6 0.5 0.5 0.3

Total Growing calfmortality(No} 0.0 1.2 0.9 0.9 0.9 0.8

Total young calf mortality(No) 3.5 2.8 2.7 2.7 2.9 2.9

Total mortality(adult unit) 4.1 4.4 4.9 4.8 4.8 4.6

stock after mortalityTotal lactating cow less mortality 97.0 97.0 97.0 98.7 98.7 97.7

Total lactating heifers less mortality 0.0 0.0 20.4 16.3 15.5 10.4

Total growing calves(above 1 year) mortality 0.0 22.1 17.7 16.8 16.8 14.7

Total female calves less mortality 46.5 37.2 35.4 35.4 37.9 38.5

total stock less mortality 111.0 119.2 136.8 134.0 134.0 127.0

stock culled&Soldlactating cow 1.9 1.9 14.6 14.8 14.8 9.6

heifer 0.0 0.0 1.0 0.8 0.8 0.5

Growing female calves(above1 year) 0.0 1.1 0.9 0.8 0.8 0.7

female calf 23.3 18.6 17.7 17.7 18.9 19.2Total femqale unit culled 8.9 8.1 21.3 21.3 21.7 16.3

na s oc a e en o yearlactating cow 95.1 95.1 82.5 83.9 83.9 88.1

heifer 0.0 0.0 19.3 15.5 14.7 9.9

Growing calf (above1 year) 0.0 21.0 16.8 16.0 16.0 13.9

calf 23.3 18.6 17.7 17.7 18.9 19.2

Toal animal units at the end of year 102.0 111.1 115.5 112.7 112.3 110.7

a n n an ma unanimal unit at the end of year 102.0 111.1 115.5 112.7 112.3 110.7

Gain in animal unit -13.0 -0.9 4.1 -0.5 -1.7 10.0

value of gain animal unit -972375 -65133 305726 -38918 -128615 -179863


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6 ASSUMPTIONS FOR TECHNICAL PARAMETERS AND COSTS :

Year-1 Year-2 Year-3 Year-4 Year-5 AV.

Annual Increase in Feed Cost, Milk Selling prices & wages % 5.00 5.00 5.00 5.00 10.00

Milk Selling Price (Rs)/Lit. (av) : 30.00 30.00 31.50 33.08 34.73 36.47 33.15

Purchase price of Green Fodder (Rs)/KG: 0.90 0.95 0.99 1.04 1.09 0.99

Purchase price of Straw (Rs)/KG: 3.00 3.15 3.31 3.47 3.65 3.32

Purchase price of Concentrate (Rs)/KG: 14.00 14.70 15.44 16.21 17.02 15.47

Contractual labor Wages /cow unit/year 7000 7000 7350 7718 8103 8509 7735.88

Number of manager/supervisor hired@1 per/100A.unit 1 1 1 1 1 1

Supervisors salary / annum (with annual increase) 360000 360000 378000 396900 416745 437582

Total Supervisors salary / annum 367326 420077 458354 469564 491341 515908

PRODUCTION PARAMETERS CONSIDERED AND LIVESTOCK STRENGTH

Average daily milk yield of cow purchased 15.00Increase in Milk Production Over Previous Year in % 3 3 3 3 3.00

pregnancy (Act.conception rate)% 80% 80% 80% 80% 80% 80.00%

inter calving period months 14.00 14.00 14.00 14.00 14.00 14.00

mortality adult 3.0% 3.0% 3.0% 3.0% 3.0% 3.00%Mortality heifer% 3.0% 3.0% 3.0% 3.0% 3.0% 3.00%

Mortality growing calf%(above 1 year) 5.0% 5.0% 5.0% 5.0% 5.0% 5.00%

Mortalityyoung calf% 7.0% 7.0% 7.0% 7.0% 7.0% 7.00%

Culling rate adult cow 2.0% 2.0% 15.0% 15.0% 15.0% 9.80%

culling rate heifer 5.0% 5.0% 5.0% 5.0% 5.0% 5.00%

culling rate growing calf (above 1 year) 5.0% 5.0% 5.0% 5.0% 5.0% 5.00%

culling rate calf 50.0% 50.0% 50.0% 50.0% 50.0% 50.00%

one young calf equal to adult 0.30 0.30 0.30 0.30 0.30

one growing calf(above 12 month) 0.50 0.50 0.50 0.50 0.50One heifer/cow 1 1 1 1 1


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7) MILK PRODUCTION PROJECTIONS Year-1 Year-2 Year-3 Year-4 Year-5 AV.

Total number of expected lactations/year* 85.7 65.2 65.2 69.8 68.2 71

Expected Milk yield/Lactation 4500 4635 4774 4917 5065 4778

Total milk production (lit) 385714 302128 311192 343206 345186 337485

Minus milk for feeding calves (lit)(300Lt/f.calf,60 lit m.calf,av 180 lit) 15429 11733 11733 12563 12268 12745

Milk available for sale (lit) 370286 290395 299459 330643 332918 324740

Daily availability of milk for sale 1014 796 820 906 912 890

8) EXECTED SALE PROCEEDS STATEMENT Unit Cost (Rs.) Year-1 Year-2 Year-3 Year-4 Year-5

I) Milk sale(rs) 11108571 9147434 9904592 11482817 12139919

Male calf sold(1-2month) @RS250/- 250 12500 10000 9506 9506 10179

Animal unit sold (culled)at 75% of purchase cost 56250 501469 454061 1198900 1200841 1219689

Insurance Claim of mortality (75% of B.Value) 56,250 168750 168750 168750 171764 171764

cow dung/animal unit 1500 153053 166697 173225 169011 168428

iii) Total Sales(Rs) 11944343 9946942 11454973 13033939 13709978


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9)EXPECTED OPERATIONAL EXPENDITURE STATEMENT &PROJECTED BALANCE SHEET

Ist year Unit Cost (Rs.)

Year-1 Year-2 Year-3 Year-4 Year-5

G. Fodder cost @ 30kg/animal unit 0.9 1005555 1095202 1138090 1110405 1106573

Straw @ 3Kg/animal unit 3 335185 383321 418248 428477 448349

Concentrate for milk production @ 2.50Kg/Lit 14 2160000 1776512 1921297 2224903 2349623

Concentrate maintenance @1.5Kg/ani. unit 14 782098 894415 975912 999781 1046147

Cost of newcow for replacement 0 370500 370500 0 179601

Medicines & AI etc. 3000 306105 333395 346451 338023 336856

Rent/leasing cost for land for Shed etc /A.unit. 400 40814 44453 46193 45070 44914

Contractual labor Wages /cow unit/year 7000 714245 816817 891244 913042 955385

Salary of supervisor/annum 360000 367326 420077 458354 469564 491341

Insurance premium buffaloes only 5 375000 356475 356475 381697 372717

Electricity charges@ 2000 /animal unit/year 2500 255088 277829 288709 281686 280713

Other misc. charges@1200/animal unit 1500 153053 166697 173225 169011 168428

(a) Total operating cost 6494468 6935691 7384700 7361659 7780647

Operating surplus (Total sale - Operational cost) 5449875 3011250 4070273 5672280 5929332

(b) Dep. On shed machinery & Equipments 10 1097280 1097280 1097280 1097280 1097280

Total Exp. (a+b) 7591748 8032971 8481980 8458939 8877927


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10)STATEMENT OF PROFIT AND LOSSRETURN ON CAPITAL INVEST.( %)&BENEFIT COST STATEMENTYear-1 Year-2 Year-3 Year-4 Year-5

NET PROFIT 4352595 1913970 2972993 4575000 4832052

10) RETURN ON CAPITAL INVEST.( %)&BENEFIT COST STATEMENT 22.05 9.70 15.06 23.18 24.48

G) B)RETURN ON CAPITAL INVEST.( %)including ani.gain 17.13 9.37 16.61 22.98 23.83

H) BC RATIO 1.57 1.24 1.35 1.54 1.54

11)LOAN DISBURSEMENT AND PAYMENT SCHEDULE

YEAR Loan Interest Installment Total

1 13224763 1586972 2644953 4231924

2 10579811 1269577 2644953 3914530

3 7934858 952183 2644953 3597136

4 5289905 634789 2644953 3279741

5 2644953 317394 2644953 2962347

6 0 0 0 0

12) CASH BALANCE AFTER DEBT SERVICE STATEMENT

YEAR

Open.Surplus Payments Cash balance

1 5449875 4231924 1217950

2 3011250 3914530 -903280 To be covered from first years cash balance

3 4070273 3597136 473137

4 5672280 3279741 2392539

5 5929332 2962347 2966985


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13)COST OF MILK PRODUCTION STATEMENT


Ia) COST OF MILK PRODUCTION (Rs)with animal gain 20.5 27.7 28.3 25.6 26.7

Ib) COST OF MILK PRODUCTION (Rs) 23.13 27.89 27.30 25.70 27.05

milk selling price 30.00 31.50 33.08 34.73 36.47


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14)REQUIREMENTS OF FEED FODDER AND LAND FOR FODDER CULTIVATION


concentrate required annualy(ton)* 210.1 181.7 187.7 199.0 199.6

green fodder required annualy(ton) 1117.3 1158.9 1147.0 1065.8 1011.5

wheat straw required annualy(tons) 111.7 121.7 126.5 123.4 123.0

average concentrate(kg) /animal unit 5.64 4.48 4.45 4.84 4.87

average green fodder(kg)/animal/unit 30.00 28.57 27.21 25.92 24.68average straw(Kg) /animal unit 3.00 3.00 3.00 3.00 3.00*Normally concentrateformulae has 1/3 grains,1/3 oilcakes and 1/3 industrial by products

all oil cakes(tons) 70.0 60.6 62.6 66.3 66.5

mustard cake(3/4 of all cakes)tons 52.5 45.4 46.9 49.7 49.9

mustard cake for 3 months(Tons) 17.5 15.1 15.6 16.6 16.6

FINANCE REQUIRED FOR FEEDING


Fi nance for concentrate re quired annu aly(Rs) 29 42098 26709 26 289721 0 3224 684 33 95769

Fi nance for gre en fodder required annu aly(Rs) 10 05555 10952 02 113809 0 1110 405 11 06573

Finance for wheat straw required annualy(Rs) 335185 383321 418248 428477 448349

Total 4,282,838 4,149,448 4,453,548 4,763,566 4,950,691

% of total operational cost 65.95 59.83 60.31 64.71 63.63

land required for fodder growing(acre)

Land productivity/annum(qt) considered 750.00

Accordingly calculated land required for fodder(acres) 15 15 15 14 13

%of required fodder grown 75% 75% 75% 75% 75%

Accordingly land required for fodder growing(acre) 11.17 11.59 11.47 10.66 10.12

Total fodder to be purcased(ton)/year 279 290 287 266 253

if silage feeding its level 50% 50% 50% 50% 50%Green fodder replaced for silage (tons) 140 145 143 133 126

Additional fodder for si lage making loses (15%) 21 22 22 20 19

Total fodder to be purcased for silage(ton)/year 161 167 165 153 145

Total fodder for feeding (purchased)(ton) 140 145 143 133 126


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PART - B

DETAIL OF PROJECT ANIMALS PRODUCTION & MANAGEMENT TO BE FOLLOWED IN THIS PROJECT1. BREED SELECTIONS AND JUDGING

Breed selection and judging of dairy animal is one of the important factors that can influence profitability of a dairy enterprise. Therefore, propercare will be taken while selecting and judging cow for a new dairy Holstein friesian croddbred cows from haryana & punjab state will be selected.Management will ensure that instead of buying average type of cow only crossbred cows of holstein friesian breeds having potential to produce notless than 4599lit./lactation shall be purchased at a reasonable price.i) Only freshly calved cow within one month of calving preferably with female calves will be prefered. cow in 1st to 3rd lactation preferably will beconsidered for purchase.ii) Before finalising purchase deal, Management will ensure that the animal has potential to yield 4500 lit/lactation. This can be worked out byusing suitable conclusion factor or Actual recording of two days yield .iii) Since physical appearance (conformations and dairy character) of the animals referred as type are closely related with milk production, thereforecow, with good dairy type fulfilling other requirement will only be preferred.iv) History Sheet: Health records (including history of vaccinations) and general health of the herd from which the cow comes (if possible) will be

taken cared, while purchasing animals.Pedigree is the record of the cow ancestor and can serve valuable basis for selection and will be considered.However, except at well organized farms, Govt. farms, Military farms, no other farm keep such record in India in a reliable way .2. TRANSPORTATION AND MANAGEMENT OF NEWLY ARRIVED COW2.1Transportation

In order to transport cattle to the dairy project site after their purchase in a safe and fit condition without any economic loss, following procedurewill be followed:Animals will be transported by truck .Animals will be insured for the transit.2.2Management of newly arrived cow

The staff at the site of the project will be well informed and prepared to receive the new animals at the farm. Proper planning, plus adequate

equipment and supplied will facilitate the management of these newly arrived .cowNormally cattle on their arrival are:i) Hungry and thirstyii) Experiencing a diet changeiii) TiredThey need to be:i) Wateredii) Fediii) Vaccinatediv) Dewormedv) Groomedvi) Identification mark given

vii) Treated (if they are sick)viii) Given vitaminsix) During quarantine period, keep in separate shed, away from main dairy units.

3. HOUSING AND EQUIPMENTS


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2. Quick procurement and disposal.8)ElectricityEnough and continuous supply1. Run machines with less noise,

economic9)OthersBanking, postal communication, school shopping centres in near vicinity

1. Welfare of employees.2. Safer transactions and better

communication links.Space Requirement:Covered and open space required per animal depends mainly on the age, and on the size of the animal. However bulls and down-calvers (cow nearingparturition) require more space due to obvious reasons. Another important aspect to be taken care of in animal houses is the provisions of correctlength and size of Mangers and water tanks so that all animals can have access to feed and water always. Sufficient open and covered space isessential in loose housing system for proper up-keep of the animals without undue competition and fighting. The size of standing space will beplanned as per the size of various categories of the animals and as per recomendations.1)Soil

a)KindSandy loam1. Keep surrounding clean and dry by

proper drainage.2. Avoid crack near foundation.b)TypeFertile1. Higher yield of fodder.2. Spare unfertile land for buildings.c)ConditionNeither too dry not too moist1. Hygiene.2. Longer life of building.2) ElevationHigher than surroundings1. Effective drainage.2. Clean surrounding.3. Avoid foul odor.3)TopographySome what leveled

1. Less cost of filling soil.4)SunlightExposure of floor to sunlight1. Removes Dampness.2. Check germ growths.3. Benefits animal.


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5)Protection from windNo direct draft of hot and cold wind currents1. To prevent sudden fluctuation in

Temp. and check heat/cold stresseson animals.

2. Avoid contamination of milk.6)Durability

Longer life and service view1. Better look.2. Low maintenance cost.7)AccessibilityNear to main road1. Minimize cost of transport.2. Quick procurement and disposal.8)ElectricityEnough and continuous supply1. Run machines with less noise,

economical.

9)OthersBanking, postal communication, school shopping centres in near vicinity1. Welfare of employees.2. Safer transactions and better

communication links.Optimum range of important climatic elements for dairy buffalo is given as under:Temperature : 13-250CHumidity : 60-70%Solar radiation : Medium level (as like in spring season)Wind velocity : 5-8 km/hrIn the above climatic condition animal can stay comfortably without any environmental stress and they produce maximum. So the aims of housingare to provide the conducive environment for better growth, reproduction and production performance.Detail housing plan and equipment are shown in the annexures1 &24. FEEDING AND FODDER PRODUCTION

For running the dairy project in profit, it will be important to keep the feeding cost minimum by proper planning of feeding programmes. Properplanning of fodder production and feeding schedule for different categories of dairy animals, are very important to run the project in profit.Fodder Production: Management will ensure that the land earmarked for the fodder production must produce more than 700 qtls. fodder/acreannually using:i) High yielding fodder crops seed.ii) Preferring multi-cut varieties than single cut.iii) Preferring growing of combination of leguminous and non-leguminous crops.

iv) Ensilaging surplus fodder for scarcity period.Management will ensure that project workers associated with fodder production remains in touch with i) total agriculture universities/fodderproduction department/department of agronomy, ii) Indian Grassland and Fodder Research Institute, Jhansi, iii) Incharge, Fodder Farm, National DairyResearch Institute, Karnal.4.1 Feeding Dairy Cattle

Feed costs are about 50 to 60 ercent of the total cost of roducin milk. Cows need to be fed balanced rations to ive the most rofitable level of


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production. Milk production of the individual cows is limited by heredity. Differences in milk production among cows of same breed are due to about25 percent heredity and 75 percent environment. Feeding has the most influence and proper feeding and care allows the cow to produce closer to herpotential ability.

Feeding programme with the consultation of a animal nutritionist will be worked out periodically, keeping in view the local casts & availabilities forthe different categories of dairy animal for any dairy project. For high pedigree calves following feeding programme will be also tried:

Periodical deworming will be carried for calves for proper utilization of nutrients.

Composition of Calf Starter:For preparing calf starters, least cost feed formulation techniques using Linear programming on computer will be used. A typical composition of a

calf starter to be used is given below. However, availability of ingredients, cost of ingredients, cost of other alternative ingredients (at the time of itsactual use) will decide exact composition of the calf starter.

A typical calf starter:

Maize - 42%Ground nut cake - 28%Wheat bran - 20%Skim milk powder/ fishmeal - 7%

Mineral mixture (ISI mark) - 3%Nutritive values DCP - 19.29%TDN - 72.20

It is expected daily gain of such calves will be about 600 gm/day.

Feeding growing and lactating dairy animals: Feeding programme for these categories of animals will be worked out keeping in view local availablefeed &fodders etc. and there cost with consultation of animal nutritionist.Water Requirements:

Table: Drinking Water Requirement for Cattle/buffalo( Litre/day*)Calves : 10Young stock, average:25 (8 12/100 kg body weight)Heifers:35 45

Dry dairy buffalo:40 60Milking buffalo:5O 100*There may be sufficient variations depending upon the season of the year and the prevailing temperature and humidity parameters.

5 REPRODUCTION AND BREEDING POLICY5.1ReproductionA good management must manage following points of reproductive failure and therefore it will be taken cared:i) The general physical condition of the animal has an effect on its ability to reproduce. An animal, which is too fat or too thin, may not becomepregnant when bred. Proper nutrition and exercise will help to prevent this problem. Animal in poor physical conditions may have trouble giving birth.ii) There are several infections, which affect the reproductive organs of the animals. Some may prevent pregnancy and other may cause abortion.Infection of the uterus or general poor health of the animal may cause difficulty in giving birth.

iii) The secretion of hormones affects the sexual behaviour of animals when these hormones are not properly secreted. The animal may not be ableto reproduce. Some times, it is necessary to treat the animal with hormones to overcome this problem.iv) A Cyst is a swelling containing a fluid or semi-solid substance. Cyst may occur in the reproductive organs and cause breeding problems. Somecysts can be removed by surgery or treated with hormones but all cysts cannot be treated.

Failure to detect animal in heat and proper insemination with proper semen is one of the major reasons of poor conception under Indian condition.v) Not all female animals become re nant when bred. The reason for this re roductive failure are not alwa s known.


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5.2 Breeding PolicyAt the proposed farm, these murraha buffaoes will be mated with the frozen semen of superior murraha bulls , which have high pedigree and/or

progeny index while selecting the semen care will be taken to avoid inbreeding in the herd.6. CARE OF NEW BORN CALF

Success of dairy project also depends upon fast rearing to a breedable age and with a minimum mortality. Mortality of calves (0-1month) will be

kept below 7 percent by proper following of package of practices and feeding schedule as suggested below:Package of practices for calves:

Age/ days Treatment Preventive against

1 Colostrum 2-2.5lt/day To built immunity1 Use of antibiotics and nutrional formula as suggested by local vetrenarian Calf scours1 Sealing navel vessel Navel ill2 Vitamin A concentrate 1 ml vitablend or other simmillar supplement Night blindness5 Piperazine adipate1 g/4 g live wt. Ascariasis6-11 Piperazine adipate1 g/4 g live wt. Ascariasis6-11 Suitable antibiotic for coccidiosis prevention Coccidiosis

Besides above practices, use mineral supplement vitamin supplements like TM-5 or Aurofac daily, Rovimix in oil once a week (10,000 I.U. ofVitamin A) will be followed. Healthy calves with higher growth rate and low mortality rate are essential for higher profit from a dairy project.Following important management points will be considered to achieve above objective:i) Cleaning of the new born calf. Cutting the extra naval cord with sterile blade, dipping the naval cord in 7% iodine solution, sealing it properly.Feeding colostrum within 1 hr, this will built immunity and is highly nutritions and laxative.ii) In young calves Supplementation of Vit. A, D and E will be used.iii) Marking of the calf for permanent identification before it is removed from its dam will be carried. Date of birth, sire and dam will be recorded.iv) Weaning the calf, and use of a nipple pail to feed the calf or teach the calf to drink from a pail will be practiced.v) All feeding equipment will be kept clean and sterile. Feeding equipment will be Washed and sanitized. Cleaning the equipments after eachfeeding will be followed.

vi) Feeding programme package of practices as suggested earlier will be followed.vii) Tattooing for permanent number will be carried within 1-2 days.viii) Dehorning the calf with electric dehorner within 7-14 days of age will be carried.ix) Removing of extra teat, if any, will be carried when calf will be 1-2 month of age.x) Surplus animals will be disposed at the earliest.7. DAIRY HERD HEALTH AND INSURANCE7.1 Dairy Herd Health

Management will ensure that an overall plan for maintaining the health of the dairy herd is developed and executed using the services of theveterinarian associated with the project.

a) A planned programme of regular vaccination and bred testing is carried out.b) Health records of all animals in the herd will be maintained.c) Follow a planned programme for mastitis control. Mastitis is one of the major cause of economic losses in crossbred (Holstein crosses) dairy herdsin India.d) Accurate reproductive records will be kept. Regular examination of cows with breeding or calving problems will be carried.


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e) A planned programme of calf health care will be followedf) A planned programme of vaccination will be followed.g) To control and prophylaxis against external and internal parasites necessary measures will be taken.To reduce health problems the following management practices will be followed:

Proper feeding of the herd.Proper housing, cleaning, sanitation & equipments facilities.Using clean and dry bedding.Replacing/culling properly.Isolatingof sick animals.

7.2 InsuranceIn India, four subsidiaries of G.I.C. of India are carrying the business of cattle insurance. There is an agreement between these subsidiaries of GIC

in respect of cattle insurance business and is observed by them with regard to rates, terms and conditions prescribed in the agreement. Therefore,any of the four Insurance Companies will be approached for insuring dairy cattle.i) Transit insurance cover for all newly purchased animal and to be transported to project site must be taken.ii) All milch cows will be got insured.iii) Replacement stock (Good heifers with higher EPA) will also be considered for taking insurance cover. Normally 4-6% (gross) is the premium rate ofinsurance for dairies having more than 100 animals.iv) There is some 15% discount for long term policies of 3 years. Management may consider this type of policies for replacement stock.8. MANAGEMENT OF DRY COW

Dry cow are those, which are not producing milk. Most cows need a dry period between lactations. Very after management neglects theseanimals, which may cause decrease in the profit in due course of time. Therefore, management of this dairy project will ensure that propermanagement of these categories of dairy project animals is carried. Following points will be considered.i) The average length of pregnancy for dairy cow is 280 days (a seven-day variation in gestation is considered normal). The cow should be dry for45-60 days. The date to begin dry period is calculated back from projected date of calving.ii) Conditioning for the dry period is done during last few weeks of lactation. Research shows that body fat is replaced most efficiently during latelactation than during the dry period. cow should not be too fat or too thin at the end of the lactation. Adjusting the grain-to-roughage ratio cancontrol weight. Give thin cow a higher percent of grain (concentrate) and fat cows less grain.iii) proper procedure will be followed to dry off the cow to avoid udder problems. Following suggested method will be followed:a) Milk the cow every other day for several days.

b) Do not feed concentrate/grain, reduce water and forage intake for one or two days. After the feed has been reduced for the recommended time,stop milking the cow. Routine treatment for mastitis a drying off is recommended. Treat the cow for mastitis at the last milking. Watch the udder forabnormal swelling for two or three weeks after drying off.

iv)Separate dry fcowrom the milking herd. They may be grouped with the bred heifers. Allow dry cows to get plenty of exercise.v) Do not overfed or underfed, feed mainly good quality roughages and recommended concentrate. Limit body gain to no more than 45 kg from latelactation to the next calving. When dry cow get too fat, there are more problem with ketosis, depressed appetite milk fever, displaced abomasum.Cows that are too fat have problem at calving time.vi) Research shows that it pays to treat dry cow for internal parasite. Ask Veterinarian for this treatment programme.vii) During last few days of the dry period, watch the cow closely for sign of calving. Ensure safe delivery in a calving-pen. Calving-pen floor shouldnot be slippery and should have proper bed of dry straw. Ensure that after birth is expelled within 48 hours after calving. If it is not farm veterinarianmust help.

viii) After calving watch the cow for signs of milk fever, ketosis, or other health problem. Provide fresh water and hay/soft roughages/wheat branafter calving. It takes several days to get a cow and bull feed after calving. Gradually increase concentrate feeding.

9. RAISING DAIRY COWS FOR REPLACEMENT

In any dairy project, necessary importance must be given to raise dairy cows for replacement for milking herd. From 15-20% of the average


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milking herd should be replaced every year.REPLACEMENTS need is to be selected from those animals with the highest potential for milk production.Following advantages are expected by raising dairy cow for replacement:i) Less cost than buying replacements.ii) Greater control of genetic improvement.iii) Less chance of bringing disease in to the herd.iv) Use of labour and facilities (fixed facilities) which might otherwise not be used.v) Increase income by sale of extra calves.

vi) Personal satisfaction from herd improvement.10. CULLING OF UNDESIRABLE ANIMALS

Culling is permanently removing cows from the herd. Culling is necessary improve performance of the herd thereby improving returns every years.The most common reasons for culling are low milk production, reproduction problems, diseases, udder problems etc. In a well managed farm, out ofthe total animal culled for reason, other than milk production will be low, thereby giving a chance to cull low producing animals, replaced by highproducing animals. This can improve milk production level of the herd every year. However, if more and more animals with reasons other than milkproduction are culled out of the fixed culling percentage, this leaves no chance to cull lower producers and to no chance to improve the herd milkproduction (See Table below). This concept will be followed for this dairy project:

Reasons PercentLow production 32.5Reproductive problems 26.6Mastitis 10.4Disease 7.7Teat or udder injury 7.2Poor udder confirmation 5.0Accidents and injury 4.0Poor feet and legs 2.0Other poor conformations 1.2Hard to milk or leaks milk 1.9Poor disposition 0.8

Other miscellaneous reasons 0.7

It is proposed that following categories of animals will be culled at the earliest suitable opportunity to minimize the losses and to improve milkproduction level of the herd:i) Those with the lowest estimated relative producing ability.ii) First calf heifers producing 30 percent or more below herd average.iii) Other cows producing 20 percent or more below herd average.iv) Sell all the calves/heifers from buffaloes that are low producers (bottom 15 to 20 percent of the herd).v) Those that are still not bred 150 days after calving.vi) Those that have repeated health problems.

vii) Those with poor udders and/or feet and leg problems.viii) Nervous and/or hard to handle lows.When animals will be culled in this project:

It is important to decide that when during the lactation period a given cow is to be culled. An analysis of production and financial records willshow an economic break-even point for the herd. Both variable and fixed costs are included in finding break even. The break even point to thatproduction level at which the costs of producing 100 kg milk equal the price received for that milk.


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Further, the cost, availability and estimated productivity of replacement cow will be considered while deciding cow for cull. The number ofcows, which can be handled by the facilities on the farm, must also be considered. If the facilities can handle more cows than are available asreplacement than the break even point should be calculated on variable lists. The total fixed costs remain the same, regardless of how many cowsare in the herd.11. DAIRY RECORDS

Estimates, guesses and beliefs cannot be used satisfactorily in the management of modern dairy farm enterprise. Facts and Figures help inefficient management of a farm. Record keeping is essential for evaluated the performance and for taking remedial actions to maximise profits.Application of computer has very crucial role in dairy record management and shall be utilised in this project.It is expected following records will be maintained at a dairy unit .i) Date of birth and pedigree information (at least parents and preferably grand parents also of the animals.ii) Records on growth.iii) Reproduction records (oestrus, breeding, pregnancy diagnosis and calving).iv) Milk production records (daily).v) Health and veterinary record (vaccination).vi) Therapy of diseases and disorders.vii) Feeding items records (daily consumption of green fodder, straw and concentrate) estimated values.viii) Periodic test of milk fat, SNF, quality.

ix) History sheet.x) Besides above records, following records are also to be maintained:Complete farm business records (purchase of feed, seed, fodder, fertilizers, veterinary medicines, irrigation implements, electricity and fuel expenses,sale of milk, animals, skin, manure, labour wages etc.).

Format of such records are available with Agricultural Universities, Dairy Research Institute or can be developed at the farm as per requirement.Records will be used for following purposes:i) In making decision about culling of animals.ii) In reducing feed cost.iii) In proper utilization of land and labour.iv) Comparing performance with standard values.v) Proper breeding of herd.

vi) Proper claiming from insurance companies.12. MILKING MANAGEMENT

It is proposed to follow following milking practices for the dairy animals of the proposed dairy farm :i) Newly purchased buffaloes will be initially milked with hand until the animals are made familiar with machine milking.ii) For hand milking full hand method will be applied.iii) A regular routine of milking will be followed. Dairy cows respond with higher production when milked regularly at about same times each day.Milking interval will be about equal. The day time interval can be somewhat shorter than the night interval. Three time milking will be practiced (6-20% more milk over two time milking is expected.

iv)Warm water (in winter otherwise fresh water) containing sanitizing agent such as chlorine or iodine for washing udders and (single serving)

disposable paper (if economy permits) otherwise clean dry towels will be used for cleaning, before milking. Strip cup will be used for watchingabnormal milk if in any quarter. Milking will be carried with clean hands.v) Usually cows milk out for 3-6 minutess after stimulating letdown. Milker must milk cow quickly emptying the udder completely for maximum milkproduction. Complete emptying of udder will be ensured to prevent mastitis.vi) Before using machine milking, milker will acquire proper training to avoid injury to the udder.vii) It will be ensured that after milking teats are properly sanitized in a sanitizing solution containing chlorine, iodine etc.


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viii) Healthy cows will be milked first and cows with udder problems at last.Quality milk production

It will be ensured that high quality milk with following qualities is produced:i) Free from dirt and other sediment.ii) Low bacteria count.iii) No chemical contamination.iv) Low somatic cell.v) No water.vi) Has good flavour.

Management of this dairy project is expected to follow the following practices to provide high quality milk for selling at premium price:High standard of cleanliness of cows, sheds, milking equipments.Keeping cows healthy, free from mastitis.Proper cooling and quick disposal of milk.13. LABOUR MANAGEMENT

Dairy farming being a labour intensive enterprise in India requires proper management to improve profits. Expenditure on labour cost is second tothe cost of feed in annual cost of keeping a cow. To reduce this expenditure, management of this project will ensure:

i) Proper planning of animal housing units.ii) Proper grouping of different buildings of the dairy enterprise.iii) Selection of proper equipment, durable and give trouble free service.iv) Proper training and demonstration will be given about the expected task assigned to the labour.v) Care will be taken for the welfare of the labour and incentives will be given to improve efficiency of labour.vi)Where so ever possible casual labour will be used.

vii) Work from labour will be taken as per labour acts.Following Kind of Labour will be selected for Dairy Farm:i) Honest and hard working.ii) Punctual and swift in action.iii) Prepared to work at odd hours of night.

iv) Pay attention and has love for animals.14. SAFETY AT FARM

Dairy Farming can become dangerous and risky if proper safety measures are not used. Besides loss of human loss, there can be financialliabilities on the management as per different laws of the constitution. Studies have shown in farm accidents either farm machinery is involved oranimals confined in a building. Farm machinery accidents cause generally fatal injuries, whereas injuries from animals are not as bad as injuries frommachinery, causing loss of money, time, productivity of the farm.

To avoid injury, people who work with farm machinery and farm animals must be careful and practice good safety habits. Since management isrequired by law to provide safe and healthy work place for their employers, therefore, it is in the interest of the management to inform workers aboutsafety practices.Types and kind of injuries at a Dairy Farm:

Injuries from animalsusually occur when they kick or step on people or push them against hard surface such as side of a pen. People may beinjured falling when working with cows.Human and Environmental Factors Relating to Safety:i) Human error is usually a major factor in the cause of accidents. Being tired, not paying attention and using poor judgement are frequent cause ofaccidents that involves animals.


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i i Peop e younger t an 25 an o er t an 60 ave more acci ents on t e arm t an peop e etween 25 to 60.iii) There can be a risky environment involved in livestock operations. These include slippery floors, manure pit, silo, chaff cutter machinery andlivestock confinement building. Necessary protective measures will be adopted for such working environments.

Chemical Safety:Come chemicals like pesticides etc. that are used in dairy farming can be dangerous. All workers will be instructed to follow safe practices relating

to use of these chemicals.Storing Chemicals:

Farm chemicals such as pesticides etc. will be stored in a safe place with proper label and warning.First-Aid Kits:

First-aid kits containing the proper medical supplies will be kept at farm.Fire Safety:

Fire can be one of the most serious hazards on dairy farm. Fires are usually caused by carelessness. Most fire starts with electrical equipments orcigarette, matchsticks. To prevent fire following measures will be taken:

Fuels, straw etc. will be stored in a safe way.Smoking will be prohibited near such buildings.

All electrical wires and equipment will be kept in good conditions.When planning new building, these will be spaced at least 50 feet from each others.Fire extinguishers will be Located near doorways, in all buildings. These will be Inspected regularly to make sure that they are fully charged.Water outlets and hoses will be Provided around the building.Following points of Safety Practices with Dairy Livestock will be followed:Planning ahead when working with animals in or enclosed space to provide way out.Use of proper equipment while handling livestock.It will be ensured that only those with enough strength and experience do livestock handling.No work with animal when tired.Knowing the animal behaviour.Be careful when leading animals and handle lead lines properly.

15. POLLUTION AND ENVIRONMENTAL CONTROLS

Management of this dairy project will ensure that animal wastes, chemical waste, dead animals, odors, noise from machinery do not harm theenvironment and will abide by the laws concerned with environmental pollution. To control pollution and environment following measures will betaken:Handling Dairy Livestock Waste:

Objective of handling livestock waste is to control odors, flies and rodents etc. Normally, a dairy cow of 500 kg weight is expected to produce 18kg manures daily (.098 kg N/day, .0163 kg P/day, 0.635 K/day) (87% moisture) 0.66 ft3, or annually 6.8 tone of manure. Manure is valuable as afertilizer. With the increasing cost of chemical fertilizer and increasing awareness about the benefits of natural fertilizers, the animal manure hasbecome more valuable. It is expected that manure will be properly converted into compost and utilized or sold. This will avoid pollution and willincrease the profits also.Disposal of Dead Animals:i) Dead animals if any will be disposed within 24 hours after death. This will be done in such a way that no hazard is created.ii) Disease may spread from dead animals to people to other animals. Always treat dead animals as though. They are diseased. Truck trolly/bullockcart used to haul dead animals will be disinfected after use. The vehicle will be leak proof and preferably covered.


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sposa s e urr a s e w e ar away rom e o er u ngs, pu c roa s an pu c proper es. w e g enoug , ere s ou avegood drainage, away from sources of water i.e. well, hand pumps etc.16.USE OF EMERGING TECHNOLOGIES

It is important for the management of any enterprise to keep itself well informed about the latest development in the concerned fields, particularlywith the emerging technologies. Emerging technologies are normally expected to influence the profitability of an enterprise. For the survival of anyenterprise and to sell a product at competitive rates, it is very important to keep itself embrace with the latest research developments activities in therelevant fields. Some of the emerging technologies in dairy farming are listed below around when an opportunity arises to use/try the proventechnologies, it will be availed/tried on small scale and after suitable modification (if required) these will be adopted at this farm also.i) Embryo Transfer Technique (ETT): Over the past 20 years, the role of embryo transfer technique (ETT) has grown from that of being research toolto becoming an economically important component of dairy industry. Prior to ETT, a cow was limited to produce 8-10 calves over its productive lifetime, but through ETT non-surgical procedures on donor dam could produce from 10-30 calves per year. The ETT has made possible the availability offrozen embryo developed from superior parents. In India, the technology is available at NDRI and NDDB. Commercial exploitation has been initiatedby these organisations.ii) Use of protected proteins in the ration of high yielding dairy cows. To economic ration of high producing and for proper utilization of nutrients thistechnology will be used while formulating rations. Information is available at NDRI and NDDB.iii) Ammoniation of straws to increase its nutritive value. This technology improves the nutritive value of poor quality roughages and has potential toeconomize feeding of straws. Information on this technology is available at NDRI, Karnal and will be utilised.

iv) Least cost feed formulations using computer. Different programmes are available to reduce feed formulation cost information available at NDRIand NDDB.

Management of this dairy project is expected to remain in touch with R&D organisations in India and abroad for updating its technologies fromtime to time.17. MARKETING MILK AND DAIRY ANIMALS

A Dairy Enterprise produces milk/dairy animals to sell at a profit. Careful management can help reduce the cost of producing the milk/livestock. Aknowledge of marketing structure for milk/livestock can help the enterprise to make wise management decisions.

Management will consider following factors/strategies in marketing milk/livestock:i) Different markets for milk/livestock available.

ii) Price structure and regulation of milk marketing.iii) Price, supply and demand trends for milk production.iv) Cost of milk production, selling price in different seasons.v) Impact of advertising and potential of selling farm produce, farm pack milkThe management will identify itself as producer of high quality milk/dairy animals to sell its products at prime price.

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Annexure-A Sheds/Housing (extendable to500 cows)


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Annexure-B -

Annexure-BA Equipment

1 Milking system 55000

2 Bulk Milk Cooler 50000

3 Water Troghs 10000

4 Barn Stalling and equipments 0

5 Mixer wagon/tractor trolley For Feed Dispensing in sheds / 300000

6 Manure Handling Equipments 20000

7 Miscellaneous Testing Equipments 10000

8 Vehicles, Delivery Van etc. 0

8 Farm Equipmet- Chaff Cutter, Cutter etc 50000

9 Power Supply equipments 25000

10 Lab equipments 15000

11 DG Set 1 100000

Slurry Pump 0

Manure seperator 0Cross channel Scraper 0

Total equipment cost 635000

B Other utilities

Water tank, 100000

Electrical Cabling & Wiring 75000

Plumbing 50000

Internal fittings - fan, tubes, etc 100000

Total cost of utilities 325000

C total Contruction cost(shed ,roads etc) 6858000

Total above 7818000

Miscl cost (structure /machinary )etc 4345452

TotalCost of machinary,utilities,construction of shed etc12163452

Farm machinnary

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100cows Project Withtext for Learning