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    Dairy Farming 1

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    Anonymous E7DMoI
    This document provides information on starting a dairy farming business in India. Some key points: - India has a large dairy industry, engaging over 70 million producers and accounting for 21% of agriculture. Dairy offers opportunities for entrepreneurs. - India is the world's second largest milk producer. The market for milk and milk products is growing steadily. - A model dairy farm project would include 20 buffaloes, sheds, equipment, and produce an estimated 28,000 liters annually. The total project cost is Rs. 461,700. - Financial projections estimate a net annual profit of Rs. 103,587, with a 23% profit on sales and 22% return on investment. The

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    © All Rights Reserved
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    Dairy Farming 1

    Uploaded by

    Anonymous E7DMoI
    58 views3 pages
    This document provides information on starting a dairy farming business in India. Some key points: - India has a large dairy industry, engaging over 70 million producers and accounting for 21% of agriculture. Dairy offers opportunities for entrepreneurs. - India is the world's second largest milk producer. The market for milk and milk products is growing steadily. - A model dairy farm project would include 20 buffaloes, sheds, equipment, and produce an estimated 28,000 liters annually. The total project cost is Rs. 461,700. - Financial projections estimate a net annual profit of Rs. 103,587, with a 23% profit on sales and 22% return on investment. The

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    Dairy Farming

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    This document provides information on starting a dairy farming business in India. Some key points: - India has a large dairy industry, engaging over 70 million producers and accounting for 21% of agriculture. Dairy offers opportunities for entrepreneurs. - India is the world's second largest milk producer. The market for milk and milk products is growing steadily. - A model dairy farm project would include 20 buffaloes, sheds, equipment, and produce an estimated 28,000 liters annually. The total project cost is Rs. 461,700. - Financial projections estimate a net annual profit of Rs. 103,587, with a 23% profit on sales and 22% return on investment. The

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    58 views3 pages

    Dairy Farming 1

    Uploaded by

    Anonymous E7DMoI
    This document provides information on starting a dairy farming business in India. Some key points: - India has a large dairy industry, engaging over 70 million producers and accounting for 21% of agriculture. Dairy offers opportunities for entrepreneurs. - India is the world's second largest milk producer. The market for milk and milk products is growing steadily. - A model dairy farm project would include 20 buffaloes, sheds, equipment, and produce an estimated 28,000 liters annually. The total project cost is Rs. 461,700. - Financial projections estimate a net annual profit of Rs. 103,587, with a 23% profit on sales and 22% return on investment. The

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    NSIC

    Project Profiles

    DAIRY FARMING
    1. INTRODUCTION
    India derives nearly 33% of the gross Domestic population from agriculture and has
    66% of economically active population,engaged in agriculture. The share of livestock
    product is estimated at 21% of total agriculture sector. The fact that dairing could
    play a more constructive role in promoting rural welfare and reducing poverty is
    increasly being recognised . Milk production alone involves more than 70 million
    producers, each raising one or two cows/ buffaloes primarily for milk production .
    The domesticated water buffalo is one of the gentlest of all farm animals ,hence it can
    be breeded easily. The dairy sector offers a good opportunity to entrepreneurs in
    India. India is a land of opportunity for those who are looking for new and expanding
    markets.Growth propsects in the dairy sector are very bright.

    2. MARKET
    Dairy development in India has been acknowledged the world over as one of modern
    India"s most sucessful development programme. India is the second largest milk
    producing country with anticipated production of about 78 million tons during 19992000. The production of milk products stoood at 3.07 lakh tonnes in 1999-2000.
    Production ofmilk powder including infant milk food has risen to 2.25 lakh tons in
    1999-2000, whereas that of malted food is at 65000 tons. Off late market for milk
    products is showing a steady increase.

    3. MANUFACTURING PROCESS
    Modern and well established scientific principles ,practices and skills should be used
    to obtain maximum economic benefits from dairy farming. Some of the major norms
    and recomondationtions are: Care full selection of animals, feeding of animals,milking
    of animals

    4. PRODUCTION CAPACITY PER ANNUM


    Capacity
    Selling Price

    Rs.

    28000 Ltrs per


    annum
    16 Per kg

    5. PROJECT COST/CAPITAL INVESTMENT


    S.No

    1
    2
    3

    Description

    Preliminary & Preoperative Expns


    Fixed Capital
    Working Capital for
    Total Project Cost

    Amount Rs.

    month(s)

    1500
    440000
    20200
    461700

    NSIC

    Project Profiles

    6. MEANS OF FINANCE
    S.No

    1
    2
    3

    Description

    Promoter Contribution
    Subsidy /Soft Loan
    Term Loan
    Total

    %age

    Amount Rs.

    15%
    20%
    65%

    69255
    92340
    300105
    461700

    7. FINANCIAL ASPECTS
    A. FIXED CAPITAL
    i. Land and Buildings

    Rented

    1500 per month

    ii. Machinery and Equipment


    S.No

    1
    2
    3

    Description

    Buffellows
    Shed
    Milk testing machine
    Total

    Qty.

    Nos
    Lum

    20
    1
    1

    Rate

    Amount Rs.

    20000
    20000
    20000

    400000
    20000
    20000
    440000

    B. WORKING CAPITAL
    i. Salaries & Wages (per month)
    S.No

    1
    2
    3

    Description

    Nos.

    Supervisor/Entrepreneur
    Skilled
    Unskilled
    Total

    1
    1
    2

    Sal/mon. Amount Rs.

    2500
    2000
    1200

    2500
    2000
    2400
    6900

    ii. Raw Material (per month)


    S.No

    Description

    Feed

    Unit

    Qty.

    Kgs

    2200

    Rate

    Amount Rs.

    Total

    8800
    8800

    iii. Utilities (per month)


    S.No

    1
    2

    Description

    Power
    Water

    Unit

    LS
    LS
    Total

    Amount Rs.

    500
    500
    1000

    iv. Other Expenses (per month)


    S.No

    1
    2
    3

    Description

    Postage & Stationery Expenses


    Transportation Expenses
    Miscellaneous Expenses
    Total

    Amount Rs.

    500
    1000
    500
    2000

    NSIC

    Project Profiles

    v. Total Working Capital (per month)


    S.No

    1
    2
    3
    4
    5

    Description

    Amount Rs.

    Rent
    Salaries and Wages
    Raw Material
    Utilities
    Other Expenses
    Total

    1500
    6900
    8800
    1000
    2000
    20200

    8. COST OF PRODUCTION (PER ANNUM)


    S.No

    1
    2
    3

    Description

    Total Working Capital


    Depreciation
    Interest
    Total

    Amount Rs.

    @
    @

    242400
    66000
    36013
    344413

    15%
    12%

    9. TURNOVER (PER YEAR)


    S.No

    Description

    Unit

    Qty.

    Ltrs per annum28000

    Rate Rs. Amount Rs.

    16

    Total

    448000
    448000

    10. FIXED COST (PER YEAR)


    S.No

    1
    2
    3
    4
    5

    Description

    Depreciation
    Interest
    Rent
    Salaries & Wages
    @
    Other Expenses incl. Utilities @
    Total

    Amount Rs.

    66000
    36013
    18000
    33120
    14400
    167533

    40%
    40%

    11. PROFIT ANALYSIS & RATIOS


    1
    2
    3
    4

    Net Profit
    Percentage of Profit on Sales
    Percentage of Return on Investment
    Break Even Point

    Rs.

    103587
    23%
    22%
    62%

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