Today, let us discuss the Dairy Buffalo Project Report for 10 Animals along with income, cost of 10 dairy buffaloes unit.
Type of Animals Planned for Dairy: Buffaloes.
No of dairy Buffaloes or Unit size: 10.
The system of Rearing: Semi-intensive.
Breed of animals assumed: Any good dairy buffalo.
Cost of dairy Buffalo which includes transportation charges plus insurance premium: 50,000 (for 8-liter milk/day capacity, in case of more milk yield, you should be spending more on animals, some breeds will costing up to 2 lakhs as well).
Expected milk yield per animal: 8 liters/day.
Milk selling price at the farm gate: Rs. 30 Rs per 1 liter. (The price of the milk depends on fat content of milk).
The sale of manure/dung /animal/year: Rs. 1000.
Culled value per animal at the end of 5th lactation: Rs. 10,000.
Veterinary management including vaccinations/buffalo/year: Rs. 2000.
The rate of interest(%) assumed In case of a loan: 12%.
The residual value of shed and equipment to be taken(yes/no): No.
Repayment loan period: 3 years.
Net surplus towards repayment: 80%.
| Lactation Period of Animals | Dry Period of Animals | ||
| Quantity in (Kg) | Cost (Rs) | Quantity in (Kg) | Cost (Rs) |
| 1) Concentrate feed Rs.10/Kg) | |||
Working capital: Rs.10,000.
Total Cost: Rs.6,80,000 (Six lakhs eighty thousands).
Now we should get into total lactation period of animal based on an inter-calving period of 400 days (Out of 400 days, 250 days lactation, and 150 are dry days).
Usually, during the first year lactation days are little less compared to the subsequent year.
For 10 animals, you can expect 2,150 lactation days (on average 215 days/animal), and dry days of 575 for all 10 animals.
Now let us calculate the projected profits from 10 dairy buffalos project from the sale of milk and manure.
Assuming that the 1 liter of milk is sold at the rate Rs. 30 and each buffalo gives 8 liters per day (morning and evening).
So per day gross income from 1 animal is : 8 x 30 = Rs. 240.
For total of 215 lactation days (in 1 year) : 215 x 240 = Rs. 51,600.
For 10 animals per with 215 lactation days each in year: 10 x Rs.51,600 = 5,16,000 (Five lakhs sixteen thousands). (This come will increase when lactation days are more and decrease if the lactation days are less).
By Sale of Animal manure per year is about: Rs.20,000.
So, the total grass income during the first year is about: Rs.5,16,000 + Rs.20,000 = Rs. 5,26,000 (Five lakhs twenty six thousands).
Now let us calculate the first year expenditure (Don’t consider the fixed costs like shed construction and other fixed and one-time expenses).
Concentrated feed: Rs. 150,000.
Dry Fodder = Rs. 50,000.
Veterinary management charges = Rs. 20,000.
Green fodder cultivation for 1 acre: Rs. 10,000 .
So, the total expenditure for the first year: Rs. 2,30,000 (Two lakhs twenty thousand).
Net Profit during first year: Total grass income during the first year – Total expenditure of first year = Rs. 5,26,000 – Rs. 2,30,000 = Rs. 2,96,000.
So, net profit from 10 dairy buffalo unit during the first year is about: Rs. 2,96,000 (Two lakhs ninety-six thousand).
You can expect a little more profit from next year as lactation days may increase.
Remember, we did not calculate bank loan interest and repayment.
Note: All the figures mentioned in the dairy buffalo project report are taken on an average, these will change time to time, area to area and also depends on the breed of animal and its milking quality.
Milk has excellent demand across the globe.
Dairy farming will provide income for poor people in rural areas.
Many will get the local employment and dairy has an excellent contribution to the state and national economy.
Dairy farming doesn’t need any marketing skills, many people can buy fresh milk at the farm gate or milk collection center people will come and collect from your farm.
Dairy farming business does not pollute the location and maintains eco-friendly nature.
Dairy farms get subsidies and loans. For more information, contact Animal husbandry department in your area.
Many people are successful in commercial dairy farming business.
Finally, If you dedicate your time and hard work in the dairy farm business, you can be one of the profitable dairy farm owners.
Dairy farm setup costs more than any other livestock. It needs a more initial investment.
Dairy farming requires labor on a permanent basis and seasonal basis.
Owner monitoring is a must, as you cannot trust a third person especially in this business.
Daily cleaning of animals and shed area should be carried out.
You should protect animals from thieves and other predators.
It requires a lot of efforts to take care of newly born claves.
you must have good knowledge of animal reproductive cycle.
Feed management should be accurate.
you will fail in dairy farming, in the case where you just invest and run around.
You must have proper dairy management knowledge.
Read: Goat Farming Project Report .
