Dairy Farm - 15 Cows [Rs. 5.98 million]

Dairy Farm - 15 Cows [Rs. 5.98 million]
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21 August 2019
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This pre-feasibility is about setting up a dairy farm in which cows are kept primarily for milk production in semi-conventional open shed housing system with modern machine milk collection system and cow comfort through ventilators and water sprinklers. The cows are fed nutritionally balanced Total Mixed Ration (TMR) at 3% of live body weight. Breeding plan would be implemented through Artificial Insemination method to gain optimum milk yields in lactation cycle of average 300 days. Successful dairy farming would involve recommended best husbandry practices for housing, breeding, feeding, watering, disease control and hygienic production of milk on farm.

A dairy farm with 15 cows, preferably jersey or crossbred cows, needs a total investment estimated at Rs. 5.98 million out of which the capital cost of the project is Rs.5.60 million with working capital of Rs. 0.38 million. It is assumed that starting from 15 cows in first year of project, dairy herd would be increased to approximately 70 cows by implementing its own heifer management program till 10th year of business, keeping 2% mortality rate and 15%culling for adult cows.

The Internal Rate of Return (IRR), payback period and Net Present Value (NPV) of the project are estimated to be 39%, 3.76 years and Rs. 22.32 million respectively. The farm will provide employment opportunity to 03 individuals. The legal status of the project is proposed as sole proprietorship.

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