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Corrected Feasibility Report For 40 Dairy Cattles in BahIawalpur Region ...

The feasibility report analyzes the costs and profits of establishing a dairy farm with 40 dairy cattle in Bahawalpur Region. It estimates total fixed costs of Rs. 6.14 million and recurring annual costs of Rs. 6.62 million in the first year. Total income in the first year is estimated at Rs. 12.96 million, yielding an annual profit of Rs. 199,200. Profits are projected to increase each year along with milk prices, reaching Rs. 7.75 million in the third year. Over three years, total income would be Rs. 21.19 million with additional asset value of leftover animals at Rs. 6 million.

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Dr Anais Asim
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209 views4 pages

Corrected Feasibility Report For 40 Dairy Cattles in BahIawalpur Region ...

The feasibility report analyzes the costs and profits of establishing a dairy farm with 40 dairy cattle in Bahawalpur Region. It estimates total fixed costs of Rs. 6.14 million and recurring annual costs of Rs. 6.62 million in the first year. Total income in the first year is estimated at Rs. 12.96 million, yielding an annual profit of Rs. 199,200. Profits are projected to increase each year along with milk prices, reaching Rs. 7.75 million in the third year. Over three years, total income would be Rs. 21.19 million with additional asset value of leftover animals at Rs. 6 million.

Uploaded by

Dr Anais Asim
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Feasibility Report for 40 Dairy Cattles in Bahawalpur Region:-

(Based on their Price in 2017)

Designed By:
Rana Tauqeer Babar (DVM final year student Fvs.BZU)

Under supervision of:


Dr. Asim Faraz
Assistant Professor Fvs BZU
Ph.D LM

An investor Mr. Mazhar Abbas Wants to establish a Dairy Farm on a plot having length 210’ and
with 90’.

Here is a feasibility report:-

Design of Shed:-

1. Office: 10*10’
2. Store: 20*10’
3. Watchman: 10*10’
4. Labour: 10*10’
1. Fixed Costs:
 Construction Expenditure:
For One Cow Area Require = 128 sq.ft
For 40 Cow Area Require =128*40
=5120 sq.ft
Cost for 1 Sq.ft =150 Rupees
Total cost for 40 cows =150*5120
=768,000 Rupees
 Animal Purchase:
1 cow of almost 14-16 litter milk will be available in 130,000 to 150,000 rupees
than we have to bought 40 milking cows.
Cost for 40 cows =130,000*40
=5,200,000 Rupees
One Bull for cart =50,000 Rupees
 Tools & Machinery Purchase:
Wooden Cart =20,000 Rupees
Water Pump =25,000 Rupees
Chopper =30,000 Rupees
Small Equipments =5,000 Rupees
Pitter Engine =45,000 Rupees
Total fixed Cost:
=6,143,000 Rupees
 Recurring/ Running Expenditure:-
Fodder:
One large animal require almost 50kg green fodder & its cost is about 4 rupees
per kg. So for the whole year cost of the fodder is
One Animal require fodder/day =50*4
=200 Rupees
40 animals require fodder for 365 days = 200*40*365
=2,920,000 Rupees
Feed Expenses:
For one animal require 5 kg Vanda for 15 litter milk. Per kg price of Vanda is 35
rupees. So for 40 animals price of Vanda will be
=5*35*40*365
=2,555,000 Rupees
Wheat straw (toori) Expenses:
Wheat straw cost 8 rupees/kg. It’s require 6 kg per animal per day. So for 40
animals for 365 days of the year wheat cost near about 700800 rupees.
Labour:
3 labor is requires in =30000 Rupees
For 12 months =360,000 Rupees
Electricity:
5000/month so for 12 month=60,000 Rupees
Medication:
25,000 Rupees
Total Running Expenses= 6,620,800 Rupees
Income:-
If 40 cows give milk in an average of 15 litter/cow/day. The price of 1 litter milk
is 70 rupees average.
Daily milk production =40*15
=600 litter

Price for one litter milk =55 Rupees

For 600 litter price is =33000 Rupees

So for the one year milk sale is =33000*365

=12045000 Rupees

30 calves sale after one year each is of 30000 Rupees average=30*30000

=900,000 Rupees

Sale of feces 1500 Rupees/month so for 1 year=1500*12

=18000 Rupees
Total Income:

Total income of first year =12,963,000 Rupees

Total Expenses of Farm for first year=12,763,800 Rupees

Profit of first year = total income – total Expenses

=16,248,000 – 12,763,800

=199,200 Rupees

Annual Expenditure for 1st, 2nd and 3rd year

Detail 1st Year 2nd Year 3rd year


Cost of feed and 6,175,800 6,596,800 7,116,800
Fodder
Labor 360,000 370,000 380,000
Electricity 60,000 65,000 70,000
Medication 25,000 30,000 35,000
Total 6,620,800 7,061,800 7,601,800
st nd
 Annual Income For 1 , 2 , 3rd year

Detail 1st year ( Rs.55 /Ltr) 2nd year ( Rs.65 /Ltr) 3rd year ( Rs.65 /Ltr)
Sale of milk 12,045,000 13,140,000 14,235,000
Sale of animals 900,000 1,000,000 1,100,000
Sale of feces 18,000 18,000 18,000
Total 12,963,000 14,158,000 15,353,000

Profit of each year=total income – total expenses

Detail 1st year 2nd year 3rd year


Profit 6,342,200 7,096,200 7,751,200
So

Total income in 3 years = 21,189,600 Rupees

Value of left over animals the end of 3 years =6,000,000

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