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Pakistan's 1st Online Dairy Farming Guide

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Contents

Introduction

Breeds

Selection of Animals

Farm Building

Management

Record Keeping

Sanitation & Hygiene

Nutrition

Reproduction

Breeding

Health

Body Condition Scoring

Milk Quality

Feasibility

Terminologies

Directory

Picture Gallery

 

Dairy Farm Feasibility

  Disclaimer 

The purpose and scope of this document is to provide a guideline for the establishment of a 100 milking animal dairy farm. The material included in this document is based on information and data gathered from various sources and certain assumptions. While due care and diligence has been applied in compiling this document, the information contained may vary due to any changes in any of the concerned factors like from person to person, system to system, area to area, and actual results may differ from the presented information.
 

  General 

This Feasibility is for the establishment of 100 Animals Dairy Farm in which no. of milking animals will be remained constant throughout the period. Financial plan of feasibility is based on 10 years.
 

  Summary 
 

Initial cost of the project

Rs. 57.80 M

Initial working capital

Rs. 5.0 M

2nd Year Capital Cost (purchase of 26 milking animals)

Rs. 7.80 M

Total Project Cost

Rs. 70.6 M

Projected Gross Revenues (Milk Sales, Animal Culling & Calf Sales)

Year 1

Rs. 31.60 M

Year 2

Rs. 34.96 M

Year 3

Rs. 45.52 M

Year 4

Rs. 45.26 M

Year 5

Rs. 42.89 M

Year 6

Rs. 41.86 M

Year 7

Rs. 41.76 M

Year 8

Rs. 41.49 M

Year 9

Rs. 41.58 M

Year 10

Rs. 41.67 M

Projected Net Profit before Taxes

Year 1

Rs.   8.54 M

Year 2

Rs.   8.06 M

Year 3

Rs. 17.70 M

Year 4

Rs. 17.95 M

Year 5

Rs. 15.92 M

Year 6

Rs. 14.98 M

Year 7

Rs. 14.89 M

Year 8

Rs. 14.64 M

Year 9

Rs. 14.72 M

Year 10

Rs. 14.81 M

Payback Period

5-6 Years

 
  Herd Composition 

No. of Milking Animals on farm will be remained constant i.e. 100. In herd considerations, animals are taken as units and working is based on these units. Assumptions regarding animal units are as follows:

Animals Unit - Calculations

No.

Adult Animal (lactating & dry pregnant)

1.0

Pregnant Heifer

0.75

Heifer Un-joined

0.50

Calf < 1 Year

0.25

                                                        Herd composition for ten years is given below:

Particulars

Unit Ratio

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

Milking Animals

100%

100

100

100

100

100

100

100

100

100

100

Dry Animals

100%

19

21

20

18

18

18

18

18

18

Pregnant Heifer

75%

-  

 21

24

22

 21

21

21

21

21

21

Heifers

50%

  -  

32

36

34

32

31

31

31

31

31

Female Calf (up to 1 Year)

25%

54

62

57

54

53

53

53

53

53

53

Total Animal Heads

154

233

239

230

 224

223

223

223

223

223

Equivalent Animal Units

113

166

172

167

163

163

162

162

162

162

                                                           Some assumptions about the herd are as follows:
 

   

 

Birth & Mortality Rate

%

Birth Female (Sex Semen Usage)

70

Birth Male

30

Mortality new born

5

Mortality Heifer > 1 Year

3

Mortality adults (Milking & Dry)

2

 

Sales Price - Culled Animals

Rs.

Dead Animal Carcass

500

Culled Animal - Heifer > 1 Year

50,000

Culled Animal - Adult Cow / Milking Cow

85,000

 

Sale Price - Normal Animals

Rs.

Male Calf

15,000

Milking Cow

200,000

 

Particulars related to Milk Production

Year 1

Year 2

Year 3

Year 4

Year 5

Cow Lactation (Litres)

6,000

6,700

7,300

7,300

7,300

Inter-calving Period (Days)

395

395

395

395

395


 

  Capital Cost / Initial Investment Break-up 
 

Investment in

Qty

Unit Cost (Rs)

Total Cost (Rs)

Purchase of Animals – 1st year

100

300,000

30,000,000

Purchase of animals for herd upgradation - 2nd Year

26

300,000

7,800,000

Land for Farm Construction

3 Acres

1,500,000

4,500,000

Construction of Milking Animals Shed

1

4,212,000

4,212,000

Construction of other Animals Shed

1

1,410,000

1,410,000

Other Farm Constructions & Installations

1

6,015,027

6,015,027

Dairy Equipment & Machinery

1

5,430,000

5,430,000

Agricultural Equipment & Machinery

1

3,250,000

3,250,000

Dairy Farm Office & Staff Residences

1

1,800,000

1,800,000

Staff Vehicles

1

1,140,000

1,140,000

Initial Working Capital

5,000,000

Total (Rs)

7,055,7027

Detail of Construction and Installations:

  • Construction of Milking Animals Shed includes 120 x 84 = 10080 Sq. feet covered area for 100 animals with free stalls, shed cooling, sprinklers etc.

  • Construction of other Animals Shed is for dry animals, heifers and calves.

  • Other Farm Constructions and Installations include:
     

Components

Qty

Total Cost (Rs M)

Milking Parlour Area Construction

6.02

Generator – 40KVA

1

Weighing scale for  vehicles

1

Weighing scale of animals

1

Silage Bunker

3

Calf Cages

25

Water turbine

2

Water storage tank

2

Boundary Walls

 -

Store Rooms (Feed, Implements & Diesel, Pesticides & Fertilizers)

3

Electric Work

 -

Cattle Crush

1

Detail of Dairy Equipment & Machinery:

Equipment &Machinery

Qty

Total Cost (Rs M)

Tractor + Trolley (for feeding & manure remover)

1

5.43

Milking Line

1

Milk Cooling Tank - 2.2 Tons

1

LN Containers

1

Veterinary Kit

1

Miscellaneous (Farm small equipment & tools)

1

Detail of Agricultural Equipment & Machinery:

Equipment &Machinery

Qty

Total Cost (Rs M)

Tractor + Trolley

1

3.25

Disk Plough

1

Rotavator

1

Lazer Leveller

1

Maize Harvestor - Single row

1

Agriculture Loader (front end loader)

1

Tube well (10 HP motor)

1

Miscellaneous Agri Assets

1


Detail of Dairy Farm Office & Staff Residences:

Components

Qty

Total Cost (Rs M)

Farm Staff Residence / Office

1

1.80

Furniture & Fixture (incl. Computers, Printers, etc)

1

Bathrooms for Labour

2

Kitchen (with small equipment)

1

Miscellaneous

1

Detail of Staff Vehicles:

Vehicles

Qty

Total Cost (Rs M)

Vehicle for Farm Manager - Suzuki Cultus

1

1.14

Motorcycles for Supervisors

2

  

 
  Human Resource 
 

Type

Number

Monthly Salary/ Person (Rs)

Total Monthly Salary (Rs)

Farm Manager - Dairy & Agri Operations

1

75,000

75,000

Supervisor

1

45,000

45,000

Farm Accountant & Admin

1

45,000

45,000

Asst. Accountant & Admin

1

20,000

20,000

Labour for Animal Feeding & Milking

5

9,000

45,000

Labour for Agriculture

4

9,000

36,000

Tractor Drivers / Helpers

2

12,000

24,000

Watchman & Office Boy

2

10,500

21,000

Total

17

 

311,000


  Projected Running Cost 

Feeding Cost:

 

Health & Breeding Cost:

  

    Fixed and General Costs:

Total Cost:

 

  Projected Farm Income 
 

 

Projected Profit & Loss
 

Particulars

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

Total Running Cost (Rs)

23,058,216

26,897,149

27,829,548

27,311,654

26,970,949

26,880,530

26,864,181

26,857,514

26,858,202

26,859,385

Total Annual Farm Revenues (Rs)

31,597,499

34,959,852

45,525,350

45,261,685

42,888,235

41,863,047

41,756,285

41,494,948

41,581,740

41,671,468

Farm Net Income

8,539,283

8,062,703

17,695,802

17,950,031

15,917,286

14,982,517

14,892,104

14,637,434

14,723,538

14,812,083

 

Critical Success Factors
Profitable Dairy Business moves around the management. Dairying gives huge profit if it is well managed while mismanagement leads to huge loss as well. So, the implementation of the project should be under the supervision of a professionally skilled person. A competent farm manager or consultant is never expensive. A skilled professional should be hired for establishing and running a profitable dairy farm. Along with others, following factors play a key role:

      Nutritional Management:
Feeding cost is the major share of farm expenditures which influences the milk production as well as the farm profitability. Nutritional requirements of animals are fulfilled by fodder , concentrates (wanda) and some supplements like mineral mixtures. For excellent nutrition management of farm, fodder should be preserved in the form of silage. It not only brings down the feeding cost but also ensures the availability of fodder throughout the year, hence lowers the overall production cost. For 100 animals, almost 37 acres of land is required for fodder production.

      Animal Comfort:
Milk production is directly related to cow comfort which is dependent upon various factors mainly the shed designs, cooling system, bedding, floors, yards structure etc. Well ventilated sheds with floors and drains to be hygienic are very important. The covered and open areas should be according to the standards. Cooling system is the most important factor in this regard as high temperature leads to the heat stress to the milking animals and results in less production. The cooling system lowers down the temperature which increases feed intake, cow comfort and as result there is the increase in milk production.

      Free Access to Water:
Fresh and clean drinking water should be available to animals for 24 hours.

      Animal Breeding:
The future of the farm depends upon the animal breeding. Breeding practices should be well managed so as to follow the principle "calf every year".

 

 

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