Project Report On Dairy Farm 1k5z6b

PROJECT REPORT ON PROCESS OF DAIRY PRODUCTS

FARM ANAVARAM VILLAGE, BADIGI MANDAL VIZIANAGARAM DIST

OFFICE D NO 11-8-39 DASAPALLA HILLS FLAT NO 302,VISAKHAPATNAM

EXECUTIVE SUMMARY OF THE PROJECT PROFILE

6.

1. Name of the unit.

: ROHINI DAIRY FARM

2. Location of the Farm.

:

3. Line of activity.

:

Dairy Farming (Production of Milk)

4. Constitution.

:

Proprietary.

5. Sector.

:

Agriculture.

6. Name of the Promoter.

:

Mr SURESH

Anavaram Village, Badigi Mandal, VZM Dist

Project Cost & Means of Finance

(Rs in lacs) Particulars Land

Amount Own

Sheds construction

60.96

Animals & other expenses

80.00

Working capital

16.00 156.96

Particulars Capital Term Loan

Working capital loan

Amount 44.96 100.00

12.00 156.96

INTRODUCTION Milk production assumes second priority after rice cultivation in India agriculture. The village economy is incomplete for marginal farmers if they lack one or two bovine animals.

The fact the about 75% population of India is

engaged in agricultural activities has put the organized milk production on prime priorities of Government and other organizations. In this context operation flood and consequent thresh-hold of white revolution has come through the CoOperative pattern of milk production management. Consequently more than 5 million farmers are today organized into about 0.5 lacks of village milk CoOperatives and the turnover of Dairy sector has reached to Rs. 30.00 crore per annum.

The milk production in Indian set up is largely a source of supplementary income to the farmers who product milk basically for self consumption and may spare the surplus for the market.

The problem of Dairy industry the Indian

context are unique in the sense that through India for probably the largest bovine population in the world yet it Indian Dairy has been the low

intensity dairying based on poor yielding cattle fed on crop and labour intensive management. However, with the efforts of different agencies in various states, the development of Co-Operative system in the sector which has tried to integrate both technology of milk production and its subsequent marketing had led to steady growth of five percent per annum. Since the cost of production per litre of milk has been found to have inverse relationship with the productivity, the aim of Co-Operative movement in India has been no upgrade the productivity along with the efficient marketing management so that a fruitful source and sink relationship is maintained to benefit of marginal farmers.

SCOPE OF THE PROJECT The project envisages for Dairy form. The cost of the project is estimated at Rs. 156.96 lakhs the installed capacity of the plant is 360 litres on 300 days working. The capacity utilization is assumed to be at 70% in 1 st year, 80% in 2nd year and 90% in 3rd year onwards.

SECTOR AND CONSTITUTIONS: A Farm by name and style Rohini Dairy Farm is a proprietor concern, the main object of the farm is to Milk from Buffalos. The Farm comes under Agricultural sector and does not require any registration.

PROMOTERS BACKGROUND : Sri Suresh, S/o., aged years is residing at Visakhapatnam dist. He is the sole proprietor of the firm. He is well versed in cultivations. His family are having good back ground in Cultivation and Animal Husbandry. The promoter has worked in similar farm for three years and got good experience in the animal farm. He has got knowledge in the raring of the Buffalos and the marketing of Buffalos milk and its by-products. With this experience he can manage the farm in a profitable manner. He is an income tax assesse. He owns property worth of Rs 70 lakhs.

MARKETING PROTENTIAL In India, every one demands milk, but doe not get it. The production of milk is mainly a rural activity. Its output varies from region to region. The modernization of dairying has had its impact in all levels from the production of milk in rural areas to its handling, transportation, processing and retailing to other urban consumer. With the increasing demand of milk production in the country, the surplus milk needs to be converted to long self life production. Operation flood project has emerged as a highly successful and a very promising pro gramme of Indo Eec Co-Operation in the last 20 years. The promoter has got tie-up with City milk for supply of the milk in bulk. The promoter will sell all the milk produced in the farm to the said Dairy daily.

DAIRY PROCESSING:

Originally, milking and processing took place on the dairy farm itself. Later, cream was separated from the milk by machine on the farm, and transported to a factory to be made into butter. The skim milk was fed to pigs. This allowed for the high cost of transport (taking the smallest volume high-value product), primitive trucks and the poor quality of roads. Only farms close to factories could afford to take whole milk, which was essential for cheesemaking in industrial quantities, to them. Originally milk was originally distributed in 'pails', a lidded bucket with a handle. These proved impractical for transport by road or rail, and so the milk churn was introduced, based on the tall conical shape of the butter churn. Later large railway containers, such as the British Railway Milk Tank Wagon were introduced, enabling the transport of larger quantities of milk, and over longer distances. The development of refrigeration and better road transport, in the late 1950s, has meant that most farmers milk their cows and only temporarily store the milk

in large refrigerated bulk tanks, from where it is later transported by truck to central processing facilities. In many European countries, particularly the United Kingdom, milk is then delivered direct to customers' homes by a milk float. Milking machines

The milking machine extracts milk from all teats. Milking machines are used to harvest milk from cows when manual milking becomes inefficient or labour-intensive. One early model was patented in 1907. [10] The milking unit is the portion of a milking machine for removing milk from an udder. It is made up of a claw, four teatcups, (Shells and rubber liners) long milk tube, long pulsation tube, and a pulsator. The claw is an assembly that connects the short pulse tubes and short milk tubes from the teatcups to the long pulse tube and long milk tube. (Cluster assembly) Claws are commonly made of stainless steel or plastic or both. Teatcups are composed of a rigid outer shell (stainless steel or plastic) that holds a soft inner liner or inflation. Transparent sections in the shell may allow viewing of liner collapse and milk flow. The annular space between the shell and liner is called the pulse chamber. Milking machines work in a way that is different from hand milking or calf suckling. Continuous vacuum is applied inside the soft liner to massage milk from the teat by creating a pressure difference across the teat canal (or opening at the end of the teat). Vacuum also helps keep the machine attached to the cow. The vacuum applied to the teat causes congestion of teat tissues (accumulation of blood and other fluids). Atmospheric air is itted into the pulsation chamber about once per second (the pulsation rate) to allow the liner to collapse around the end of teat and relieve congestion in the teat tissue. The ratio of the time that the liner is open (milking phase) and closed (rest phase) is called the pulsation ratio. The four streams of milk from the teatcups are usually combined in the claw and transported to the milkline, or the collection bucket (usually sized to the output of one cow) in a single milk hose. Milk is then transported (manually in buckets) or with a combination of airflow and mechanical pump to a central

storage vat or bulk tank. Milk is refrigerated on the farm in most countries either by ing through a heat-exchanger or in the bulk tank, or both. The photo to the right shows a bucket milking system with the stainless steel bucket visible on the far side of the cow. The two rigid stainless steel teatcup shells applied to the front two quarters of the udder are visible. The top of the flexible liner is visible at the top of the shells as are the short milk tubes and short pulsation tubes extending from the bottom of the shells to the claw. The bottom of the claw is transparent to allow observation of milk flow. When milking is completed the vacuum to the milking unit is shut off and the teatcups are removed. Milking machines keep the milk enclosed and safe from external contamination. The interior 'milk ' surfaces of the machine are kept clean by a manual or automated washing procedures implemented after milking is completed. Milk surfaces must comply with regulations requiring food-grade materials (typically stainless steel and special plastics and rubber compounds) and are easily cleaned. Most milking machines are powered by electricity but, in case of electrical failure, there can be an alternative means of motive power, often an internal combustion engine, for the vacuum and milk pumps. Milking shed layouts

Milking parlour at Pardes Hanna Agricultural High School, Israel Bail-style sheds This type of milking facility was the first development, after open-paddock milking, for many farmers. The building was a long, narrow, lean-to shed that was open along one long side. The cows were held in a yard at the open side and when they were about to be milked they were positioned in one of the bails (stalls). Usually the cows were restrained in the bail with a breech chain and a rope to restrain the outer back leg. The cow could not move about excessively and the milker could expect not to be kicked or trampled while sitting on a (three-legged) stool and milking into a bucket. When each cow was finished she backed out into the yard again. The UK bail, initially developed by Wiltshire dairy farmer Arthur Hosier, was a six standing mobile shed with steps that the cow

mounted, so the herdsman didn't have to bend so low. The milking equipment was much as today, a vacuum from a pump, pulsators, a claw-piece with pipes leading to the four shells and liners that stimulate and suck the milk from the teat. The milk went into churns, via a cooler. As herd sizes increased a door was set into the front of each bail so that when the milking was done for any cow the milker could, after undoing the leg-rope and with a remote link, open the door and allow her to exit to the pasture. The door was closed, the next cow walked into the bail and was secured. When milking machines were introduced bails were set in pairs so that a cow was being milked in one paired bail while the other could be prepared for milking. When one was finished the machine's cups are swapped to the other cow. This is the same as for Swingover Milking Parlours as described below except that the cups are loaded on the udder from the side. As herd numbers increased it was easier to double-up the cup-sets and milk both cows simultaneously than to increase the number of bails. About 50 cows an hour can be milked in a shed with 8 bails by one person. Using the same teat cups for successive cows has the danger of transmitting infection, mastitis, from one cow to another. Some farmers have devised their own ways to disinfect the clusters between cows. Herringbone milking parlours In herringbone milking sheds, or parlours, cows enter, in single file, and line up almost perpendicular to the central aisle of the milking parlour on both sides of a central pit in which the milker works (you can visualise a fishbone with the ribs representing the cows and the spine being the milker's working area; the cows face outward). After washing the udder and teats the cups of the milking machine are applied to the cows, from the rear of their hind legs, on both sides of the working area. Large herringbone sheds can milk up to 600 cows efficiently with two people. Swingover milking Parlours Swingover parlours are the same as herringbone parlours except they have only one set of milking cups to be shared between the two rows of cows, as one side is being milked the cows on the other side are moved out and replaced with unmilked ones. The advantage of this system is that it is less costly to equip, however it operates at slightly better than half-speed and one would not normally try to milk more than about 100 cows with one person.

80-stand rotary dairy that is fully computerised and records milk production Rotary milking sheds Rotary milking sheds (also known as Rotary milking parlor) consist of a turntable with about 12 to 100 individual stalls for cows around the outer edge. A "good" rotary will be operated with 24–32 (~48–50+) stalls by one (two) milkers. The turntable is turned by an electric-motor drive at a rate that one turn is the time for a cow to be milked completely. As an empty stall es the entrance a cow steps on, facing the centre, and rotates with the turntable. The next cow moves into the next vacant stall and so on. The operator, or milker, cleans the teats, attaches the cups and does any other feeding or whatever husbanding operations that are necessary. Cows are milked as the platform rotates. The milker, or an automatic device, removes the milking machine cups and the cow backs out and leaves at an exit just before the entrance. The rotary system is capable of milking very large herds—over a thousand cows. Automatic milking sheds Automatic milking or 'robotic milking' sheds can be seen in Australia, New Zealand, the U.S., Canada, and many European countries. Current automatic milking sheds use the voluntary milking (VM) method. These allow the cows to voluntarily present themselves for milking at any time of the day or night, although repeat visits may be limited by the farmer through computer software. A robot arm is used to clean teats and apply milking equipment, while automated gates direct cow traffic, eliminating the need for the farmer to be present during the process. The entire process is computer controlled. [11] Supplementary accessories in sheds Farmers soon realised that a milking shed was a good place to feed cows supplementary foods that overcame local dietary deficiencies or added to the cows' wellbeing and production. Each bail might have a box into which such feed is delivered as the cow arrives so that she is eating while being milked. A computer can read the eartag of each animal to ration the correct individual supplement. A close alternative is to use 'out-of-parlour-feeders', stalls that respond to a transponder around the cow's neck that is programmed to provide

each cow with a supplementary feed, the quantity dependent on her production, stage in lactation, and the benefits of the main ration The holding yard at the entrance of the shed is important as a means of keeping cows moving into the shed. Most yards have a powered gate that ensures that the cows are kept close to the shed. Water is a vital commodity on a dairy farm: cows drink about 20 gallons (80 litres) a day, sheds need water to cool and clean them. Pumps and reservoirs are common at milking facilities. Water can be warmed by heat transfer with milk. Temporary milk storage Milk coming from the cow is transported to a nearby storage vessel by the airflow leaking around the cups on the cow or by a special "air inlet" (5-10 l/min free air) in the claw. From there it is pumped by a mechanical pump and cooled by a heat exchanger. The milk is then stored in a large vat, or bulk tank, which is usually refrigerated until collection for processing.

Dairy Development Programs: Benefits and Risks for Smallholders The Case of Andhra Pradesh, India Andhra Pradesh is one of the agriculturally most advanced states in India but still has high levels of rural poverty. Mixed crop-livestock farming is the predominant farming system practiced by over 80 percent of rural households in the state. Bovines for about 40 percent of the livestock population and milk is one of the most important products of cattle and buffalo enterprises, contributing over half of the value of total livestock output of the state. Andhra Pradesh’s milk is produced by 5 million dairy farmers, most of which own less than 2 hectares and 1 to 4 dairy animals. Although milk production has shown remarkable growth in Andhra Pradesh over the past decade, the potential role of dairy farming as a means to improve household incomes and create rural employment is far from being fully exploited. For the dairy sector to play a more prominent role in rural development there is an urgent need to devise dairy development programs that are affordable for and have significant impacts on the key production and financial parameters of the predominantly small farms that are typical for the region.

Current Situation of Dairy Farmers in Andhra Pradesh Incomes of dairy households range from 1,000 to 4,000 US$ per year. The share of off-farm income is relatively high for small farms (80 percent) and decreases with increasing size of farm holding. This clearly indicates that poor, often landless farm households are mostly part-time farmers. Total returns (cash and quantifiable non-cash benefits) per 100 kg milk range from 18 to 27 US$. Farmers however incur total costs of 16 to 38 US$ per 100 kg milk, when family labour (imputed at local wage rates), land and capital are included. This means that only a minority of farms make an entrepreneurial profit. On the other hand, if family labour is excluded from the calculation, all farms achieve a net dairy income of 5 to 10 US$ per 100 kg milk. Due to the lack of better alternative uses of their production factors, these returns to dairy production are sufficient for these small farms to keep operating. Returns to labour are inversely correlated to the cost of milk production. While large farms (10 to 15 animals) achieve returns to labour that are much higher than the local agricultural wage rate, on the smaller farms returns to labour are around half of the local wage rate. Observed variation in performance of smallholder dairy farms, however, indicates that there is significant potential to improve livestock productivity in these production systems by improving breeding, feeding and herd management, thereby increasing the economic viability of the dairy enterprise. At the farm level, initiatives that provide incentives to farmers to keep more productive animals without compromising their ability to work offfarm will be a necessary precondition to enhance dairy development in the region. This will entail devising dairy development strategies that are labour-saving, require little investment and are of low risk. Ex-Ante Assessment of Dairy Development Programs Although large dairy farms represent a profitable enterprise in Andhra Pradesh, the vast majority of smaller farms are economically unattractive and would disappear as soon as farmers have better alternatives. This

critical situation of small-scale farms persists in spite of numerous dairy development activities long in existence in the state. Therefore, the farmlevel impact of over 40 potential dairy development interventions covering feeding, breeding, animal health and milk marketing on a typical 3-buffalo farm was assessed through an iterative process that combined detailed household and farm simulation with expert and farmers’ opinions and . Several of the most promising interventions were combined to a ‘Dairy Development Ladder’ to assess whether the dairy competitiveness of small farms can be brought up to that of the larger farms. The assessment paid particular attention to the risks associated with each of the programs by introducing stochastic variables into the simulations, and thus also provided estimates of probabilities of the programs leading to specified results. Likely Program Impacts on Dairy Income The ex-ante assessments reveal that most interventions indeed raise dairy income and returns to labour, decrease the cost of milk production and increase the likelihood of achieving selected thresholds for the above parameters, thereby reducing the risk inherent in dairy farming. For example, improved animal feeding is likely to increase the return to dairy labour by an impressive 145 percent, lifting it above the regional wage level for unskilled labour, while reducing the risk of falling below the current level of returns from 0.45 to around 0.15. This implies that whichever family member stays on the dairy farm, (s)he is likely to obtain a higher notional wage than the family working off-farm. With such an attractive outcome the question of why not more farmers are adopting better animal feeding practices arises. The ex-ante assessment of the ‘Dairy Development Ladder’ shows that smallholder dairy farms have the potential to become competitive milk producers, reduce the risk inherent in farming and substantially improve household income. As a consequence of the sequence of interventions the farm develops in a gradual manner, which should present a realistic development path, as it draws on regional expertise and builds on local cases of competitive milk producers.

The Importance of Risk and Diversification Several factors may be the reason for the low adoption of dairy improvement programs: (a) the low overall impact on household income; (b) the risk associated with specialization in dairy and (c) the higher requirement for working capital. The dairy enterprise contributes 0.13 US$ or 16 percent to the daily per capita household income. Consequently, even the most promising dairy interventions are only expected to increase per capita household income by 27 percent, whilst they require substantial changes in farm management. Genetic improvement of their dairy animals was provided by farmers as an example of how they would have to stop grazing in public land and replace paddy, their main staple food, with green fodder, while still producing for a very unreliable market (milk vendors) or for a nonremunerative milk price (from the cooperative), a risk they do not consider worth taking. Farmers participating in this study were not only highly risk averse but they were also reluctant to make optimistic assumptions about ‘framework’ conditions for dairying such as more or better access to water, working capital, health services and a remunerative and reliable milk price. Smallholder farmers universally agreed that without the above conditions in place to diminish or eliminate their risk in adopting new technologies, they would not subscribe to the main dairy development programs on offer, in spite of their obvious potential benefits. Implications for Dairy Development Programs It is well-known that resource-poor farmers are, by necessity, risk avoiders. Therefore, dairy development programs must simultaneously improve the financial performance as well as the risk profile of the targeted farms. Dairy development programs are not normally conceived to comprehensively address a wide range of factors, which however determine their adoption and success. Undoubtedly, it is questionable whether it would make practical sense for any one program to tackle all of the identified issues, but a promising approach could be to forge strategic

partnerships among existing programs which are likely to have strong complementary effects. The need for one program to partner and build on another is evident in the ‘Dairy Development Ladder’. The results indicate that, gradually effective partnerships, among various programs and with the farming community, can effectively lift small dairy producers out of poverty through a competitive dairy farming business, which provides not only an excellent wage level under local conditions, but which is also well-positioned against international competition in a global economy.

Dairy Entrepreneurship Development Scheme Dairy Entrepreneurship Development Scheme is a Government of India sponsored scheme to provide financial to entrepreneurs to start dairy and allied business. This scheme has come into effect from 1stSeptember, 2010. Objectives To promote setting up of modern dairy farms for the production of clean milk, To encourage heifer calf rearing thereby conserve good breeding stock, To bring structural changes in the unorganized sector so that initial processing of milk can be taken up at the village level itself, To bring about up gradation of quality and traditional technology to handle milk on a commercial scale, To generate self-employment and provide infrastructure for unorganized sector. Activities covered and indicative unit costs:

Small dairy farms: Cross bred cows, Indigenous descript breeds and Graded buffaloes (up to 10 animals): Rs.5 lakh, Vermi-compost (with milch animals unit): Rs 20,000/Heifer calf rearing- upto 20 calves - Rs 4.80 lakh Purchase of milking machines/ milk testers/ bulk milk coolers (upto 2000 liter capacity)- Rs.18 lakh Indigenous milk products manufacturing units- upto Rs.12 lakh Dairy product transport facilities and cold chain - Rs. 24 lakh Cold storage for milk/ milk products: Rs. 30 lakh Private veterinary clinic: Rs.2.4 lakh - Mobile Units, Rs.1.80 lakh Stationary Units Dairy parlour: Rs 56,000/Eligibility to get loan Any Farmers, individual entrepreneurs, NGOs, companies, groups of unorganized and organized sector etc. Scheme funding/ Pattern of Investment Entrepreneur’s Contribution:10% of total outlay- minimum Back ended capital subsidy:25% (33.33% for SC/ST beneficiaries) of total outlay, subject to a ceiling Cold storage for milk/milk products: Rs.30 lakh. Bank’s share: Balance portion- Minimum 40%.

Implementing Institutions: Department of Animal Husbandry Dairying and Fisheries, Government of India is the focal department for the scheme. NABARD is implementing this scheme through Commercial Banks, State Cooperative Banks, SLDBs Regional Rural Banks and other agencies eligible for refinance from NABARD.

PROJECT COST & MEANS OF FINANCE (Rs in lacs) Particulars Land

Amount Own

Sheds construction

60.96

Animals & other expenses

80.00

Working capital

16.00

Particulars

Amount

Capital Term Loan

42.96 102.00

Working capital loan

156.96

12.00 156.96

DETAILS OF INDIVIDUAL HEADS OF PROJECT COST Land : The promoter is proposing to start the Farm in his own land 4.00 acres and for the dairy and to cultivate the green grass on them at Anavaram Village, Badigi Mandal, Vizianagaram (Dist). The location is sufficient for proposed and future requirement unit and is very ideal for the farm. Shed Construction : On the above said land, the firm will construct buildings including sanitation and water supply. The estimated civil works is below. S.NO PARTICULARS 1

Cattle shed to house 100 yielding buffaloes @ 180 sq.ft. Per animal with asbestos roof 9000 sq.ft. @ Rs. 800/- sq.ft

2

Calf cum Heifer shed to house Buffalos @ 25 sq.ft per animal with Asbestos roof 320 sq.ft @ Rs. 600/sq.ft

AMOUNT 36,00,000

96,000

4

Store room-400 sq.ft @ Rs. 800/sq.ft

1,60,000

5

Labour shed-1600 sq.ft ( 400 sq.ft x 8) @ Rs. 800/sq.ft

6,40,000

6

Cost of Electrification

1,00,000

7

Compound wall and fencing

5,00,000

8

Bore well with motor & Over head Tank. and hose pipe (4.nos)

4,00,000

9

Cost of small equipments like chains, measuring vessels , buckets, Cutter

6,00,000

Total

60,96,000

Cost of Animals and Equipments

1

Cost of 100 graded buffaloes @ 60,000 lactation age yielding 10 liter/day including transportation

2

Insurance @4% per animal.

3

Milking Machine.

80,000

4

Chaff Cutter machine

10,000

5

Milk Cans

80,000

6

Chilling plant

60,00,000 2,40,000

16,00,000 TOTAL

80,10,000

Working capital for 3 months Insurance charges Labour charges Cost of concentrate Feed Cost of green fodder Cost dry fodder Veterinary Aid Eleectrical charges Mise Expenses

4,50,000 50,000 3,50,000 2,50,000 1,75,000 3,00,000 20,000 20,000 16,15,000

DETAILS OF INDIVIDUAL HEADS OF MEANS OF FINANCE Share Capital : The share capital of the promoter is Rs. 42.96 lakhs. The promoter contribution works out 25% of the project cost. Term Loan : The farm desires to avail term loan of Rs. 102.00 lakhs, to meet part cost of the project of Rs. 156.96 lakhs which works out 64.98% of the project. The term loan will be paid in 28 quarterly installations with holiday of six months.

UTILITES AND SERVICES Water : The total water requirement of the unit is 6000 litres per day for watering/refilling of husks sanitation and domestic for which required bore-well and water supply is also provided in the project. Power : The total power requirement by the unit is 5 HP which comes under L.T. Connection.

TRANSPORTATION : The location is well connected by Road (Dist). It is about 20 Kms from Vizianagaram So there is no problem for transport the raw materials as well as well as Milk. MAN-POWER: The Firm will employ 12 both skilled and unskilled workers. All the persons will requite locally.

TECHNICAL FEASIBILITY FOR 100-GRADED MILCH ANIMAL PROJECT Dairy farming is on of the most important source of income for urban, semi-urban and rural areas. This is because of very high demand for milk and milk products. The composition of milk is as follows. Species

Fat %

Protein %

Lactose %

Ash %

Jersey cow Buffalo

5.5 7.4

3.9 3.8

4.9 4.9

0.70 0.78

Total % 15.0 16.8

Solids

The total milk production in the country for the year 2001-02 was estimated at 82.6 million metric tones. At this production, the per capital availability was to be 226 grams per day against the minimum requirement of 250 grams per day as recommended by ICMR. Thus, there is a tremendous scope/potential for increasing the milk production. The population of breeding cows and buffaloes in milk over 3 years of age was 62.6 million and 42.4 million, respectively (199 census The per capita availability of milk at present is 216 gms/day as against the minimum requirement of 250 gms/day as recommended by Indian council of medical research. A recent survey conducted by Visakha Dairy and Dolphin Dairy has revealed that there is demand for fifteen lack liters per day in Visakhapatnam city alone, whereas the availability of milk is only 9 lack liters.. Further, the demand is increasing day -by-day on of large-scale urbanization and increasing population. situated 20 km from Visakhapatnam and 25 kms from Vizianagaram ,.. So there is no problem for marketing of milk.

1.

Land : Land is available for construction of shed and also for grazing of animals. Land is well connected to road Electricity: Electricity connection is available on the site of farm.

2. 3.

Water Facility: Water is available in ample amount for routine work and for irrigation of land.

4.

Labour: Labour is available on chief rate through out the year itself in the village.

5.

Construction of Shed: For Construction of shed high and well-drained land is available. The site is away from wother logging area and also nearer to road.

6.

House Keeping Management: For housing of animal tail to tail system is used. The shed constructed like this manner-The wall of shed should be 5 feet high. The roof should be 10-12 feet high. A floor area of 25 sq.ft per calf and 60 sq.ft per buffalo is provided 2 feet broad drain at the rare of standing. The floor is pucca and non slippery by using grits. The asbestos roof should be used.

7.

Breed of animals: A. Buffalo-Graded with 10 liter milk/day Very good animal with a minimum Potentiality of 10 liters per day (for Buffaloes)) and which are in second lactation be purchased under expert guidance of Veterinary Doctor and Bank Officer.

. 

Feeding Management: Feed can be grown on farm itself with a 7 acre irrigated land.

The following feed will be used a) Dry fodder: Chaffed Jower dry fodder (Kutti) b) Green Fodder; the green grown on own land of 6 acres. The following crops grown Hybrid Napier-N B2 Luceme-Selection No.9 S.S.C. 9 Multi Cut jowar African Maize SOO_Subabul trees on the bunds and other uncultivable land. c) Concentrate Mixture: Proposed Dairy Provide concentrate mixtures. 5kg. Concentrates like crucial grains, De Oiled Cakes, Beans, Ground Nut Cake,

Cotton Cake prepared. The concentrates mixture thoroughly in Kutti and given to animal with a gap of 3-4 hours daily. 

Breeding of Animal: The Productive efficiency of next generation depends on breeding practices so careful breeding practices being used by Artificial insemination Method. Dairy animal came to heat at an interval of 17 to 24 days with an avg. of 21 days. The duration of estrous ranges between knows about the heat symptoms and they daily inspect animal at early mornings and late evening hours. Veterinary facility available for A.I. Accurate Records of maintenance of health variations, date of service and pregnancy conformation made by qualified Veterinary Doctor.

10. In Alamanda primary Veterinary aid clinic is functioning, the unit visited by veterinary in case of emergency cases like Dystokia, Retention of Placenta, Anoestrous, repeat breeding cases, for A.I the borrower know the importance of vaccination. All vaccination programmed, deforming made by borrower know the importance of vaccination. All vaccination programmed, de worming made by borrower under suggestions of the experts. The main objective is to maintain wet, ration of 75:25 11. Health Care: The proposed dairy unit is having telephone facility for immediately reporting to veterinarian in case of emergency. All the routine medicine like Skin ointments, Tincture of Iodine, turpentine oil, cotton, Antibiotic, Allergy drugs kept at the farm. All vaccination pro gramme for Foot and mouth Disease, Black quarter, Hemorregic Septisemial etc. Undertaken regularly and skin test for T.B. And Brucellosis must be undertaken under expert guidance of veterinary doctor. 12. General Management Practices: The animal and cattle shed thoroughly cleaned every day morning and evening, with disinfectants. The manure disposal will be kept away from shed. Proper feeding daily 3 times and before milking animal washed with water and also used potassium per magnate for cleaning under. Hand Milking is done. 

Milking: Machine milking system used. Milking is done, twice daily i.e. Morning evening.

14. Marketing of Milk: Alamand Village situated 30 Km from visakhapatnam, 25 kms from Vizianagaram. So there is no problem for marketing of milk. 15.

Identification of Animal:

For Identification of animal ear tagging method used. 16. Insurance: All animal insurance is done @ 4% cost of animal. It may change from time to time. 17. General: 5 acres of irrigated land is available with promoters for raising fodder grass and fodder trees. The entrepreneurs are having family history of rearing of dairy animals since generations. Facility like water, electricity and transport are available at the proposed farm site. The entrepreneur also gained experience in marketing dairy and dairy products.

Project at Glance 1 2 3 4 5 6 7 8 9 10 11

Unit Size Breed Name of Borrower Location of Farm Margin Money (Rs) Bank Loan (Rs) Interest rate (%) Repayment period

100Animals 100 Graded Buffalo Suresh Dairy Farm 44,96,000 100,00,00 7 years including 6 month gestation period Once in a month by the Branch 2.10 >50%

Inspection BCR at 15% DF IRR (%)

Feed and Fodder Requirements of animals per day Lactating buffaloes Dry buffaloes Particulars

Green Fodder 60 Kg 40 Kg

Dry Fodder 08 Kg 12 Kg

Rate Rs. / KG Milking CBC Dry Cows Kg Kg Cost Cost

Green Fodder Dry Fodder

3.00

Concentrates

12.00

08 12 08 48

Total Rs./day

12 18 04 24 6

0

42

Concentrates 08 Kg 04Kg

Expenditure Cost Total Expenditure Cost of feeding dry fodder during lactating days Cost of Feeding dry fodder during dry period Cost of feeding concentrates during lactating days Cost of feeding concentrates during dry period Veterinary aid &breeding cover @ Rs. 300/animal Cost of Labour 6 labour/day @ Rs.100/day Cost of electricity &water Miscellaneous 

I 4.04

II 5.16

III 4.14

IV 4.96

V 4.96

VI 4.93

0.52

1.40

1.40

1.40

1.40

1.40

0.68

0.90

0.70

0.82

0.82

0.82

0.20

0.20

0.20

0.20

0.20

0.20

0.60

0.60

0.60

0.60

0.60

0.60

3.60

3.60

3.60

3.60

3.60

3.60

0.24

0.24

0.24

0.24

0.24

0.24

1.20

1.20

1.20

1.20

1.20

1.20

Total Expenditure 11.08 13.30 12.08 13.02 milk sold at a price of Rs.18.00/liter ( Yield 12 liter/day)

Sr.No

Particulars

a) b)

Location Days 60 buffaloes

I

II

Years III

13,500

17,250

13,800

Income Statement Particulars I II Milk 58.32 58.32 Sale of Gunny bag@ Rs. 0.20 0.20 6/bag Sale of manure @ Rs.500/ 0.30 0.30 animal Total Income 58.82 58.82 NOTE: The calves and heifers were not included

13.02

13.02

IV

V

VI

16,500

16,500

16,500

(Value in lacs.) III 58.32 0.20

IV 58.32 0.20

V 58.32 0.20

VI 58.32 0.20

0.30

0.30

0.30

0.30

58.82

58.82

58.82 58.82 in the income

Gross Profit Total 58.82 Income Total 11.08 Expenditur e Gross Profit 47.74

58.82

58.82

58.82

58.82 13.02

58.82

13.30

12.08

13.02

45.52

46.74

45.80

47.74

45.52

46.74

45.80

45.80

45.80

13.37 2.00 1.20

12.83 2.00 1.20

10.69 2.00 1.20

8.55 2.00 1.20

6.41 2.00 1.20

4.27 2.00 1.20

26.10 5.07

20.49 9.00

16.19 16.66

12.88 21.17

10.33 25.86

8.35 29.98

45.80

13.02 45.80

Net Profit Gross profit Bank interest Insurance Expenses Depreciatio n Net Profit

REPAYMENT SCHEDULE Capital Investment (Rs.)-

Rs 156.96 Lacs

Borrower Margin (Rs.)-

Rs 44.96 Lacs

Bank Loan (Rs.)-

Rs 100.00 Lacs

Interest Rate (%)Average DSCR=

Rs %

The following technical aspects to be taken care ofAll concerned to the following aspects must pay special Attention for: Shed must be constructed on a high and well-drained land. A separate shed for, buffaloes and calf must be constructed. A suitable arrangement should be made with the Veterinary Doctor consultants to ensure health of animals and in case of emergency. It is proposed that cow yielding 12 liters and liters of milk every day should buy from market having good pedigree record or buy animals after 2-3 days after calving yielding that much of milk. The purchased animals should be in 2nd or 3rd lactation. Bank may consider sanctioning of additional working capital to the unit in the event of the unit running successfully and want to increase the number of animals for more milk production.

RECOMMENDATIONS  

The scheme as described above is considered to be technically feasible and economically viable. Hence, it is recommended for sanction of the scheme on the lines of the lending and other norms as suggested in the scheme and as per bank's other usual systems and procedures.

The applicant is credit worthy and trust worthy is having experience in this field . The applicant is offering collateral security 1.22 acrs and residential building market value will be around Rs 60.00 lacs per acr, Keeping in view of the above, technical and finance perimeters, tie past dealing of the co obligant and the value of the security offer, we recomend for sanction of term loan of Rs 57.00 lacs, repayable in 22 quaterly instilments with six months

TECHNO ECONOMIC PARAMETERS ii)

Cost of milch animals

buffaloes @ Rs.40,000

Iii)

Lactation period (days)

buffaloes -270 days

iv)

Dry period (days)

buffaloes -90 days

v)

Milk yield (its./day)

buffaloes -12 lit/day

vi)

Sale price of milk (Rs./Lt)

buffaloes Rs. 20.00/lit

vii) viii)

Sale of manure/animal/year (Rs.) Insurance for five years (%) Veterinary aid/animal/year (Rs.) Labour (Rs) Cost of electricity &water (Rs./animal) Interest rate (%) Repayment period (years)

500 5%

ix) x) xi) xii) xiii) xiv) xv) Sr.No.

Income from sale of gunny bags 10 bags/tonne @ gunny bag Feeding schedule Type of fodder/feed

11.25 6 years including 6 month gestation period 100

Price (Rs./kg)

a) b)

Green fodder Dry fodder

4.00

c)

Concentrate

12.00

Total

1000 6 labour per day @100/day 1000/month

(Quantity in kg/day) Lactation Period/ Dry Period Cultivated on own land 4kg x 1.00=04 6kgx1.00=06 4kgx5.00=20 2kg x5.00=10 Rs.24.00