Model Project - Dairy Farming

DAIRY HUSBANDARY1. INTRODUCTION1.1 Commercial Cow, Buffalo and goat rearing has been an income generating activity for the villagers in India. Dairy husbandry with a scientific approach provides efficiency and remunerative self employment. Women are empowered to manage the programmes without affecting their household activities. Dairying is an important source of subsidiary income to small/marginal farmers and agricultural labourers. The manure from animals provides a good source of organic matter for improving soil fertility and crop yields. The surplus fodder and agricultural by-products are gainfully utilised for feeding the animals. Almost all draught power for farm operations and transportation is supplied by bullocks. Since agriculture is mostly seasonal, there is a possibility of finding employment throughout the year for many persons through dairy farming. Thus, dairy also provides employment throughout the year. The main eficiaries of dairy programmes are small/marginal farmers and landless labourers. A farmer can earn a gross surplus of about Rs. 12,000 per year from a unit consisting of 2 milking buffaloes. The capital investment required for purchase of 2 buffaloes is Rs. 18,223/-. Even after paying a sum of Rs. 4294/per annum towards repayment of the loan and interest the farmer can earn a net surplus of Rs. 6000 9000/- approximately per year. Even more profits can be earned depending upon the breed of animal, managerial skills and marketing potential. Dairy farming is a safe business for the following reasons: y y y y y y y It is eco-friendly and does not cause environmental pollution as compared to other industries. Requirement of skilled labour is relatively less. Dairy product market is active round the year. Minimum investment on inventory. (No need to to stock raw materials in huge quantities.) Entire establishment can be shifted to a new location (if need arises e.g. Fire, Floods etc.) One can insure animals. Less energy requirement. Biogas plant fed with cow dung can supply maximum energy to meet farms day to day requirement. Decomposed slurry of such plant can also be effectively used as organic manure.

ScopeThis project aims at testing the compatibility of the villagers of the area towards commercial cow, buffalo and goat rearing . Promotion of fodder production and organized milk collection and marketing to increase the profitability. From Milk , other milk products like curds , cottage cheese , khoa , sweets can also be produced. Business Objectives y y y y y y Women Empowerment through livestock development, all the activities of projects to be managed by women. To promote production of superior quality, high yielding cattle and buffaloes. Help farmers to adopt new improved technologies with greater efficiency. To promote Fodder development and Organic farming. Centralized milk production , collection and marketing to increase the profiltibility. Documenting the experience and suggesting a bankable model for dairy production suitable for the area.

Mode of Implementation: HELPO Foundation will implement the project in the villages. The main focus of the project will be an initial survey of the villages to identify the clusters , assigning 12-15 villages for each.. Preferably the farmer women members of a functioning Self Help Group (SHG) and other interested women have been clubbed to form the Gramin Udyog Gats . The interested women farmers for this activity have been identified from the villages already owning cattle. A special orientation or a workshop to be conducted for imparting them with technical knowledge on feeding balanced meal, timely vaccination against diseases , deworming , fodder production , and proper management of livestock by decreasing the herd size etc shall be be provided by The HELPO staff appointed for this Project. They will be responsible for time-to-time training and follow-ups. A workshop shall be organized for bankers and other district and block officials for sharing the experience and giving a bankable model to the scheme.

3.

BACKGROUND According to World Bank estimates about 75 per cent of India's 940 million people are in 5.87 million villages, cultivating over 145 million hectares of cropland. Average farm size is about 1.66 hectares. Among 70 million rural households, 42 per cent operate upto 2 hectares and 37 per cent are landless households. These landless and small farmers have in their possession 53 per cent of the animals and produce 51 per cent of the milk. Thus, small/marginal farmers and land less agricultural labourers play a very important role in milk production of the country. Dairy farming can also be taken up as a main occupation around big urban centres where the demand for milk is high.

3.2

Geographical Data Taluka Baramati Phaltan Haveli Purandar

Area and Population

Climate

Villages 15 15 15 15

Table-1: Taluka-wise Dairy Husbandary Activity 4.1 Taluka : Baramati Sr No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Village Malegoan Bu Malegaon Khu Pahunewadi Yelewasti Khandaj Ghadgewadi Sangvi Shiravali Kambleswar Pandare Pavaimala Pingalewasti Malwadi Late Zargadwadi SHG Members 20 15 10 25 30 15 25 10 15 30 15 15 10 12 25 Women Out of SHGS 15 10 10 25 35 15 30 10 10 25 10 10 5 5 15 Total Members 35 25 20 50 65 30 55 20 25 55 25 25 15 17 35

4.2Taluka : Haveli Sr No 1 2 3 4 5 Village Gujarwadi Bhilarwadi Ambegaon Khadakwasla Donje SHG Members 10 8 10 25 10 Women Out of SHGS 15 8 6 25 5 Total Members 25 16 16 50 15

6 7 8 9 10 11 12 13 14 15

Kirkitwadi Matalwadi Sangrun Kondhave-Dhavde Uttamnagar Shivane Nahre Gohre Bu Nanded Mandvi

2 2 10 11 1 15 10 20 20 10

2 2 5 1 1 5 5 10 10 10

4 4 15 12 2 20 15 30 30 20

4.3Taluka : Purandar Sr No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Village Garade Jeur Mandki Kumbharvalan Kodit Bhivri Parinche Veer Ekhatpur-Munjvadi Vaghapur Pisarve Naygaon Dive Zendewadi Ambodi SHG Members 25 16 22 15 22 10 25 15 10 15 20 15 20 10 12 Women Out of SHGS 15 20 15 9 20 8 20 9 10 10 15 12 20 15 9 Total Members 40 36 37 24 42 18 45 24 20 25 35 27 40 25 21

4.4Taluka : Phaltan Sr No 1 2 3 4 Village Padegaon Shindemala Koregaon Kapadgaon SHG Members 25 10 15 16 Women Out of SHGS 15 9 9 15 Total Members 40 19 24 31

5 6 7 8 9 10 11 12 13 14 15

Taradgaon Saswad Aradgaon Tambve Salpe Murum Khamgaon Hol Pimpalwadi Suravdi Dombalwadi

20 15 16 16 10 16 20 13 25 15 8

19 8 10 9 10 9 15 15 10 9 7

39 23 26 25 20 25 25 28 35 24 15

Organizational Structure

Project Cordinator

Supervisor for all 4 talukas

Baramati SHG Business Gat Project Assistant

Haveli SHG Business Gat Project Assistant

Purandar SHG Business Gat Project Assistant

Phaltan SHG Business Gat Project Assistant

Staffing Pattern Sr No 1 2 3 4 5 Prosposed Designation Project Co-ordinator for 4 talukas Assistant Project Co-ordinator for each Taluka Vetenary Trainer Cum Assistant Vetenary Trainees X 2 for each Talukas Finance Officer ,Accountant Nos 1 4 1 8 1 Salary

Pointers for starting a Dairy Farm

y y y y y y y

How safe is the dairy business? Starting the Dairy farm... Selecting the animal (Cows v/s Buffaloes) Various Breeds Infrastructure and Manpower requirements Sample Project Report How safe is the Dairy Business?

Dairy farming is a safe business for the following reasons: y y y y y y y It is eco-friendly and does not cause environmental pollution as compared to other industries. Requirement of skilled labour is relatively less. Dairy product market is active round the year. Minimum investment on inventory. (No need to to stock raw materials in huge quantities.) Entire establishment can be shifted to a new location (if need arises e.g. Fire, Floods etc.) One can insure animals. Less energy requirement. Biogas plant fed with cow dung can supply maximum energy to meet farms day to day requirement. Decomposed slurry of such plant can also be effectively used as organic manure.

Opportunities for training . y BAIF INDIA has taken the initiative to train HELPO farmers in Dairy Husbandary

Selecting the animal to farm with - Cows v/s. Buffaloes Cows /Buffaloes Good quality cows are available in the market and it cost around Rs.1200 to Rs.1500 per liter of milk production per day. (e.g. Cost of a cow producing 10 liter of Milk per day will be between Rs.12,000 to Rs.15,000). If proper care is given, cows breed regularly giving one calf every 13-14 month interval. They are more docile and can be handled easily. Good milk yielding cross breeds (Holstein and Jersey crosses) has well adapted to Indian climate. The fat percentage of cow's milk varies from 3-5.5% and is lower then Buffaloes. In India, we have good buffalo breeds like Murrah and Mehsana, which are suitable for commercial dairy farm. Buffalo milk has more demand for making butter and butter oil (Ghee), as fat percentage in milk is higher then cow. Buffalo milk is also preferred for making tea, a welcoming drink in common Indian household.

Buffaloes can be maintained on more fibrous crop residues, hence scope for reducing feed cost. Buffaloes largely mature late and give birth to calves at 16 to 18 months interval. Male calves fetch little value. Buffaloes need cooling facility e.g. Wallowing tank or showers / foggers with fan. A suggestion to help you in deciding the animal to farm with: Middle class health-conscious Indian families prefer low fat milk for consumption as liquid milk. We suggest you to go for a commercial farm of mixed type. (Cross breed, cows and buffaloes kept in separate rows under one shed). Conduct a thorough study of the immediate market where you are planning to market your milk You can mix milk from both type of animals and sold as per need of the market. Hotels and some general customers (can be around 30%) prefer pure buffalo milk. Hospitals, sanitariums prefer cow's milk.

y y y y y

What are the various breeds? What is the economic life of animals? Popular buffalo milch breeds are Murrah, Surti, Mehasani, Jaffrabadi, and Nali - Ravi and Badhawari. The indigenous milch breeds of cattle are Gir, Sahiwal, Red Sindhi and Tharparkar. The exotic breeds of cattle are Holstein Friesian, Jersey and Brown Swiss. Economic life of buffaloes is 5-6 lactation and that of Crossbreed cows is 6-7 lactation.

The minimum economic size to go with? Under Indian condition a commercial dairy farm should consist of minimum 20 animals (10 cows, 10 buffaloes) this strength can easily go up to 100 animals in proportion of 50:50 or 40:60. After this however, you need to review your strength and market potential before you chose to go for expansion. A glance at the Infrastructure and Manpower requirements The space required per animal should be 40 sq.ft in shed and 80sq.ft open space. Besides, you will also need: y y y y y One room 10'' x 10'' for keeping implements. One room 10''x 12'' for milk storage Office cum living room of suitable size. Water tank capable of storing minimum 2000 liters Bore well with capacity to fill water tank in 1 hr

Total land requirement for a unit of 20 animals can be sited as 3000 sq.ft. There should be space for expansion. Ideal space requirement for 100 animals is 13,000 to 15,000 sq.ft (120" x 125''). For 20 animals initially, you can make contractual arrangements for getting an assured supply of 300 kgs. of Lucerne and 400 kgs. of maize fodder per day. However, in long run, as the strength of you farm will go up to 100 animals, It is advisable that you should go for a lease land of 15 to 20 acres with irrigation facility to cultivate green fodder for your animals. (One acre of green fodder cultivation for every five animals is required as a thumb rule.) The economics of whole dairy animal management depends upon its economic feeding. By making fodder's like Lucerne or Berseem available for your animals you can reduced cost on feeding concentrate feed. The strength of labourers in your farm can vary with number of animals usually the thumb rule is one labour for every 10 animals on milk or 20 dry animals or 20 young stock.

Performance Monitoring in a Dairy Farm Some Points: y y y y y y y y y y y Minimum 30% of animals in production should be of first lactation. First lactation animals should produce at lease 70% of Milk in the farm in any given time. Individual cows should have at least 280 days lactation period. Minimum 60% of the cows in the herd should breed within 60-90 days after previous calving. Cows breeding after 140 days or more should not be in any case more than 5 %. There should not be a single death due to contagious diseases. Calf mortality up to 6 months of age should not be more than 5% per year. Non functional teat should not be more then 1% of the total ( Total teats = Number of cows x 4 ) Total cost on feed should not exceed 70% of net income through sale of milk. At any given time, Seventy percent (70%) of animals should be in milk where as 20% should be dry pregnant and 10% should be dry empty. On any given day , average days in milk ( of all animals in milk ) should be 150 to 160 days : On any day , count the number of days ( respect to each animal) in milk from date of calving and take the average for all the animals in milk ) Sixty percent (60 %) of the animals should breed upon first insemination (A I) it self.

y

Some Tips: Every year try to improve the daily average milk yield by 15 to 20% ( Achievable only through good management ) Use semen of those bulls which can give progenies with at least 1.5 times of potential of milk production than your herd average, but in any case it should not have the capability of giving progenies with more than twice the potential of milk production. ( e.g. if your herd average is 3000 liters per lactation , use bulls having potential of giving progenies with 4500 to 5500 liter herd average NOT bulls having potential of producing progenies giving 6500 liters or above ) Give incentive to the labors for correct detection of heat (estrous), Good growth rate of calves, feed and fodder saved etc. Cull non-profitable animal e.g. Animals with breeding problem, Animals producing not up to the average. Every year cull 20-30% of animals from the herd and replace them from own grown young stock. Do not cull animals if you do not get better replacement. A regular breeder can be retained even if it is producing 20% less then herd average. If animals are required to be purchased for replacement : Purchase them from within 20 25 kms area.

Know their Sire Take utmost care that they are health Hygienic Milk Production: Focus On Qualiity Have definite schedule within the herd for daily milking and always stick to it. Clean the byre at least half an hour before milking. Milking pots or cans should be thoroughly clean and dry. Ensure that such pots are round in shape and without any joints Wash the udder with lukewarm water, in which you can add few crystals of potassium permanganate. ( Amount sufficient to change the color ) Massage (light) the udder while washing. Ensure that person entrusted with the job of milking is aware of importance of personal hygiene: clean hand and trimmed nails are must. Dry the udder with clean cloth from the tip of the teat upward. Always ensure that milking is performed with full hand method (Not with folded thumb), quickly, completely and comfortably (Animal should feel comfortable). Milking should be by gentle squeezing of teats NOT by dragging or giving jerks to teats. Complete the process from washing to Milking within 8 minutes. After milking dip the teats in disinfectant solutions e.g. 1% Instaclean Solution Some Tips: Always milk animals in calm and quite atmosphere . Animals that have recently calved and animals giving more milk should be milked first then the animals giving less milk or in the last phase of lactation. Animals with diseases or with mastitis should be milked separately at the end. Animals giving up to 10 liters of milk should be milked twice a day. The frequency needs to be increased to thrice in case of production ranging from 12-15 liters. Employ two persons for simultaneous milking in case the production is more then 16 liter per day. Milk from animals with medication in teat (s) should not be mixed with other milk. Milk should be strained through muslin cloth (Four layers) or through thin nylon mesh. Cool the milk (by putting ice around the milk can) and transport it to the retail center or collection center of the cooperative society as early as possible.

Ensure that, water used in cleaning of utensils is clean and free from contamination. Milk is a good media for growth of microorganism. A single contamination may render it unfit for human consumption. Low quality affects shelf life of the milk besides there may be change in flavor, taste, or nutrient composition.

Quality production ensures profitability as you can get premium price for quality milk besides you can also create good will amongst your customers. (Enhanced brand image)

Government of India through its various nodal agencies is trying its best not only to increase milk production in the country but also to crate awareness for quality control at various levels of production. Note that only quality can make us a world leader in Milk production. This is also essential for survival of the domestic industry in the light of changing market scenario. Vaccination of Livestock: The things that you should know Ensure that vaccinator carries the vaccines in a proper way Foot and Mouth disease vaccine is to be brought under the cover of ice but NOT frozen as frozen vaccine are useless. It is also true when you purchase vaccines from a medicine shop. Vaccine for diseases like HS (Haemorrhagic Septicemia), B Q (Black Quarters) is not necessarily to be carried in ice but they are to be carried in a well-protected (from sun) box and are to be kept in cool and dry place. Ensure that separate needle is used for each animal, duly sterilized in boiling water ( Not just hot water) Any vaccine needs to be used before the company marked expire date. Employ a reliable person to check and note name of the vaccine and batch number. Inquire about the proper dose of the vaccine and ensure that the same is given as per instruction. In case where vaccine needs to be administered under skin (sub cutenious) ensure that the administrator pulls the skin before pushing the needle as simple stabbing does not ensure that vaccine will go under skin Animals receiving vaccination may show allergic reaction within few minutes to few hours (2 min to 6 hours). Ensure that, your vaccinator is prepared to face such situation. E.g. easy availability of anti histaminic drugs. Do not allow vaccinator to use the needle from ground unless it is sterilized again. Always vaccinate your animals preferably after evening milking, during cool hours of the day.

It is necessary that you should protect all animals in the herd not only the selected ones. Follow a schedule of vaccination unless there is a need of emergency vaccination in the face of an outbreak.

PRACTICAL PROFITABLE DAIRY UNIT TO BEGIN WITH

(3 Cows and 2 Buffaloes)ASSUMPTIONS

1. y y y y 2. y y y y

Cows: Production level: 3000 lits. Per lactation Cost : Rs.15,000/ each Period between successive calving : 14 months Pure milk sold @ Rs.10 per lit

Buffaloes: Production Level: 2400 lit. Cost : Rs.20,000/ each Period between successive calving : 16 months Pure milk sold at Rs.14 per lit

3. Feed Cost: Dry fodder @ Rs.1.50 per Kg , Green fodder @ 0.70 per Kg , Concentrate @ Rs.8.00 per Kg 4. Feeding: Dry fodder @ 5 Kg / day; Green Fodder @ 20 Kg /day; Concentrate @2 Kg /day (Maintenance ration, needs to be adjusted with production, general thumb rule for Cow: Milk production / 3 Buffalo: Milk production / 2.5); Mineral Mix @ 30 gms per day (Rs.50 per Kg.) 5. Insurance: Crossbred cow @ Rs.800 per animal per year; Buffaloes @ Rs.600 per animal per year. 6. Depreciation: @ 20% year for animals ; 10% per year for Equipment ; 20% per year for building 7. Veterinary Care: @ Rs.200 per animal per year. 8. Labor ( Mostly family) : @ Rs.5000/ year for 5 animals 9. Interest: @ 15% 10.Cost of Construction: @ Rs.70 per sq. ft; Cow shed and Store cost Rs.5000 per animal.

A) CAPITAL INVESTMENT

CROSS BRED COWS

BUFFALOES

3 numbers Cost of Animals Buildings EquipmentTOTAL

2 numbers Rs.40,000 Rs.10,000 Rs.2,000 Rs.52,000

Rs.45,000 Rs.15,000 Rs.3,000 Rs.63,000

CAPITAL INVESTMENT GRAND TOTAL: Rs.1, 15,000/

B) FIXED EXPENSES

CROSS BRED COWS 3 numbers Interest on Capital @15% Depreciation of Livestock @20% per year Depreciation on Building @10% per year Depreciation on equipment @ 10% per yearRs.9,450/

BUFFALOES 2 numbers Rs.7,800/

Rs.9,000/

Rs.8,000/

Rs.1,500/

Rs.1,000/

Rs.300/

Rs.200/

Insurance Rs.2,400 TOTAL Rs.22,650/ TOTAL FIXED GRAND TOTAL: Rs.39, 950/

Rs.1,200/ Rs.17,300/

C) RECURRING EXPENSES

CROSS BRED COWS 3 numbers Green fodder @20kg /day Cost 0.70 / kg Dry fodder @ 5kg/day Cost1.50/kg Cost of Concentrate ( Maintenance feeding) Cost Rs.8 per Kg Labor Veterinary care @Rs.200per animal /year Misc. Expenses Rs.500/animal TOTAL RECURRINGRs.15,330/

BUFFALOES 2 numbersRs.10,220/

Rs.8,212.50

Rs.5,475/

Rs.17,520/

Rs.11,680/

Rs.3,000/ Rs.600/

Rs.2,000/ Rs.400/

Rs.1,500/

Rs.1,000/

Rs.46,162.50/

Rs.30,775/

TOTAL RECURRING GRAND TOTAL = Rs.76,937.50/

TOTAL EXPENSES ( B + C ): Rs.1,16,887.50

D) INCOME

1. Sale of Milk :

CROSS BRED COWS Total Milk Produced Fed to calves Total Milk Sold 9000 Lits. 300 Lits. 8700 Lits

BUFFALOES 4800 Lits. 265 Lits 4535 Lits

Milk Sold as Pure Milk

@ 60% ( 5220 Lits) Rs.52,200 @40% ( 3480 Lits) 3175 Lits)

@30% (1360 Lits.) Rs.19,040 @ 70% (

Milk Sold as Mixed Milk @ Rs.12 / lit

Total: 6655 Lit. TOTAL INCOME FROM MILK Rs. (52,200 1,51,100/ +

Amount : Rs.79,860/ + 79,860 ) = Rs.

19,040

2. Sale of Calves

CROSS BRED COWS Calves available for sale Amount 2 Female + 1 male Rs.900/ calve)

BUFFALOES 1 Male + 1 Female

(@Rs.300/ Rs.600/ ( @Rs.200 for male Rs.400 for female)

TOTAL INCOME FROM SALE OF CALVES

Rs.1,300/ ( Rupees Thirteen hundred only)

3. Sale of Manure @ Rs.500/ animal / year

CROSS BRED COWS

BUFFALOES

Rs.1,500

Rs.1,000

TOTAL INCOME FROM SALE OF MANURE : Rs.2,500/ ( Rupees two thousand five hundred only)

TOTAL INCOME

Rs.(1,51,100 +1,300 + 2,500) = Rs.1, 54, 900

PROFIT

NET INCOME TOTAL EXPENSES (Fixed + Recurring)

Rs.38, 012.50 (Rupees thirty eight thousand twelve and fifty paisa)

Profit per animal: /year Rs.7, 602.40/ Profit per animal /month: Rs. 633.50/

Annexure I FORMAT FOR SUBMISSION OF SCHEMES 1. GENERAL i) Name of the sponsoring bank ii) Address of the controlling office sponsoring the scheme iii) Nature and objectives of the proposed scheme iv) Details of proposed investments S.No (a) (b) (c) v) Specification of the scheme area (Name of District & Block/s) S.No. District Block Investment No. Of units

vi) Names of the financing bank's branches: S.No. (a) (b) (c) vii) Status of beneficiary/ies: (indidivual/Partnership/Company/Corporation/Co-operative Society / Others) viii) In case of area based schemes, coverage of borrowers in weaker sections (landless labourers, small, medium & large farmers as per NABARD's norms, SC/ST, etc.) ix) Details of borrowers profile (Not applicable to area based schemes) (a) Capability (b) Experience (c) Financial Soundness (d) Technical/Other special Qualificaitons (e) Technical/Managerial Staff and adequacy thereof Name of the Branch/District

2. TECHNICAL ASPECTS : a) Location, Land and Land Development : i) Location details of the project ii) Total Area of land and its cost iii) Site map iv) Particulars of land development, fencing, gates, etc. b) Civil Structures : Detailed cost estimates along with measurements of various civil structure - Sheds - Store room - Milk room - Quarters, etc. c) Equipment/Plant and Machinery : i) Chaff cutter ii) Silo pit iii) Milking machine iv) Feed grinder and mixer v) Milking pails/milk cans vi) Biogas plant vii) Bulk coolers viii)Equipment for manufacture of products ix) Truck/van (price quotations for the above equipments) d) Housing : i) Type of housing ii) Area requirement - Adults

- Heifers (1-3 years) - Calves (less than 1 year) e) Animals : i) Proposed species ii) Proposed breed iii) Source of purchase iv) Place of purchase v) Distance (kms.) vi) Cost of animal (Rs.) f) Production parameters : i) Order of lactation ii) Milk yield (ltrs. per day) iii) Lactation days iv) Dry days v) Conception rate vi) Mortality(%) - Adults - Young stock g) Herd projection (with all assumptions) :

h) Feeding : i) Source of fodder and feed - Green fodder - Dry fodder - Concentrates ii) Fodder crop rotations - Kharif - Rabi - Summer iii) Fodder cultivation expenses iv) Requirement and costs : Quantity required (kg./day) Cost(Rs. / Kg) Green Fodder Dry Fodder Concentrates i) Breeding Facilities : i) Source : ii) Location : iii) Distance (km.) : iv) Availability of semen : v) Availability of staff : vi) Expenditure per animal/year j) Veterinary Aid : i) Source ii) Location iii) Distance (km.) Lactation Dry Period Young Stock

iv) Availability of staff v) Types of facilities available vi) If own arrangements are made a) Employed a veterinary doctor/stockman/consultant b) Periodicity of visit c) Amount paid/visit (Rs.) vii)Expenditure per animal per year (Rs.) k) Electricity : i) Source ii) Approval from SEB iii) Connected load iv) Problems of power failure v) Arrangements for generator l) Water : i) Source ii) Quality of water iii) Abvailability of sufficient quantity for drinking, cleaning nad fodder production iv) If investment has to be made, type of strucutre, design and cost m) Marketing of milk : i) Source of sales ii) Place of disposal iii) Distance (km.) iv) Price realised - (Rs. per liter of milk) v) Basis of payment vi) Periodicity of paymen n) Marketing of other products :

i) Animal - age - place of sale - price expected ii) Manure - Qty./animal Price/unit (Rs.) iii) Empty gunny bags - Number - Cost/bag (Rs.) o) Beneficiary's experience : p) Comments on technical feasibility : q) Government restrictions, if any : 3. FINANCIAL ASPECTS : i) Unit Cost : Sr.No Name of the Investment Total Physical units and specification Unit cost with component wise break-up (Rs.) Whether approved by state level unit cost committee

Ii) Down payment/margin/subsidy(Indicate source & extent of subsidy): iii) Year-wise physical & financial programme : Year 1 InvestMent 2 Physical Units 3 Unit Cost (Rs.) 4 Total Iv) Financial viability (comment on the cash flow projection on a farm model/unit and enclose the same.) Particulars : a) Internal Rate of Return (IRR) : Total Outlay (Rs.) 5 Margin/ Subsidy (Rs.) (Rs.) 7 6 8 (Rs.) Bank loan Refinance Assistance

b) Benefit Cost Ratio (BCR) : c) Net Present Worth (NPW) : v) Financial position of the borrowers (to be furnished in case of corporate bodies/partnership firms) a) Profitability Ratio : i) GP Ratio ii) NP Ratio b) Debt Equity Ratio : c) Whether Income Tax & other tax obligations are paid upto date : d) Whether audit is upto date (enclose copies of audited financial statements for the last three years) vi) Lending Terms : i) Rate of Interest : ii) Grace Period : iii) Repayment Period : iv) Nature of Security : v) Availability of Government guarantee wherever necessary : 4. INFRASTRUCTURAL FACILITIES : a) Availability of technical staff with bank/implementing authority for monitoring b) Details of i) technical guidance ii) training facilities iii) Govt support/extention support c) Tie-up arrangements with marketing agencies for loan recovery d) Insurance - Type of policy - Periodicity - Rate of premium

e) Whether any subsidy is available, if so amount per unit f) Arrangements for supply of green fodder and cattle feed

ANNEXURE II Cattle and Buffalo Breeds Important Characteristics/DescriptionSr. No. 1 A) 1 Name Breed 2 CATTLE Amrith mahal Dangi Habitat/Main State 3 (INDIGENOUS) Erstwhile Mysore State now part of Karnataka Maharashtra and Gujarat Tumkur and Chitradurg Ahmednagar, Khandesh, Raigad, Nasik, Thane, Surat Erstwhile Mysore State Weekly markets in Ahmednagar, Nasik, Thane and West Khandesh district Karnataka and adjoining area Draught breed Breeding Tract Districts 4 Assembling Centres 5 Areas of demand Remarks 6 7

2

Rocky ghat areas Draught breed with heavy rainfall

3

Denoi

Andhra Pradesh Karnataka and Maharashtra

Medak, Nizambad, Mahboobnagar, Adilabad Gulbarga, Bidar, Osmanabad, Nanded Junagarh, Also maintained by NDRI, Bangalore Tumkur, Hassan & Mysore

Weekly cattle Bidar and markets, Jatras and adjoining districts fairs in Bidar and adjoining districts _ Gujarat, Rajasthan, Maharashtra

Draught purposse breed

4

Gir

Gir Hills and forest of South Kathiawar Karnataka

Dairy purpose breed

5

Hallikar

Dodbalapur, Chickballapur, Harikar, Devargudda, Chikkuvalli, Karuvalli, Chittavadgi (T.N.) North Arcot (T.N.) Hindupur, Somaghatta, Anantpur (A.P.)

Dharwar, North Draught breed Kanara, Bellary (KT) Anantur & Chittur (A.P.), Coimbatore North Arcot, Salem (T.M.)

6

Hariana

Haryana and Delhi, Punjab, Rajasthan

Rohtak, Hissar, Gurgaon, Karnal, Patiala, Sangrur, Jaipur, Jodhpur, Alwar, Bharatpur Western districts Coimbatore

Cattle fairs at Throughout the Jehazgarh, Mahim country and Bhadurgarh (Rohtak dist.) Hansi & Bhiwani (Hissar dist.)

Dual purpose breed

7

Kangayam

Tamil Nadu

Avanashi, Tirppur, Southern Districts Draught breed Kannauram, of Tamil Nadu Madurai Athicombu

8 9

Kankrej Khillari

Gujarat Maharashtra

Ahmedabad, Banaskantha Solapur, Kolhapur, Satara

Ahmedabad, Radhanpur Southern Districts of Maharashtra and adjoining districts of Andhra Pradesh and Karnataka

Rajasthan, Maharashtra Draught breed

10

Krishna Valley Maharashtra, Andhra Pradesh, Karnataka

Watersheds of Ichalkaranji Krishna and adjoining (Kolhapur), areas of A.P. and KT Chincahli (Gulbarga) Guna, Vidisha, Raisen Sehora, Ujjain, Indore, Dewas, Gwalior, Shivpuri, Mandsaur, Jhabus & Dhar Jhalwar and Kotah Jodhpur & Nagaur Agar (Shajapur) Singaj (Nimar) Sehore & Ashta (Sehore) Karimnagar (A.P.) Nagaur Parbatsar (Nagpur), Balotra (Barmer), Puskar (Ajmer), Hissar, Hansi (Haryana State) Rajasthan, Haryana, Uttar Pradesh Draught purpose Draught purpose

11

Malvi

Madhya Pradesh

Rajasthan 12 Nagori or Nagauri Rajasthan

13

Ongole

Andhra Pradesh

Ongole, Guntur, Available in Ongole Narasaraopet, Bapatla tract of Andhra and Nellore Pradesh Alwar, Bharatpur, Jaipur Sahiwal (erstwhile Montgomery) Alwar, Rewari (Gurgaon), Pushkar (Ajmer) Jullundar, Gurdaspur, Amritsar, Kapurthala, Ferozepur (Punjab), NDRI, Karnal, Hissar, Anhora Durg (M.P), Lucknow, Meerut, Bihar, W.B. -

Dual Purpose

14

Rathi

Rajasthan

Dairy breed Dairy breed

15

Sahiwal

Punjab, Haryana, Delhi, U.P., Bihar, M.P., W.B.

16 17 18

Red Sindhi Siri Tharparkar

Pakisatan All parts of India Sikkim, Bhutan Pakisatn (sind)

Darjeeling Hill Tract Umarkot, Naukot, Dhoro Naro Chor

Dairy breed Dual purpose Dairy breed

Darjeeling (Brought by dealers) Balotra (Jodhpur), Puskar (Ajmer), Gujarat State -

B) CATTLE (EXOTIC) B) CATTLE (EXOTIC) 1 Brown Swiss Switzerland India, Pakisatan & other Asian countries Dairy breed

2

Holstein Friesian Jersy

Holland

Province of North Through out the Holland and country West Friesland (crossbreds) Island of Jersey Crossbreds available in all states/U.Ts

-

Dairy breed

3

British Isles

-

Dairy breed

B) BUFFALOES ANNEXURE - III Reproductive and Productive Parameters (Traits) in Indian Cattle and Buffaloes Sr.No Name of the breed Age at first calving (months) Calving interval (months) Lactation yield (kg.) Lactation length (days) Dry period (days) Milk yield kg/day during lactation 1 i) a) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 2 Cattle Indian breeds Dangi Deogir Deoni Gir Gaolao Hallikar Hariana Kangayam Kankrej Khilari Ongole Rathi Red Sindhi Sahiwal Tharparkar Umblachery Non-descript 54 48 53 48 46 46 58 44 48 52 40 40 42 40 50 46 60 17 15 14 16 16 20 13 16 17 16 19 19 14 14 14 17 19 600 1,500 810 1,350 600 600 1,200 600 1,800 240 630 1,815 1,620 1,620 1,620 360 405 300 300 270 270 300 300 240 240 360 240 210 330 270 270 270 240 270 210 150 150 210 180 300 150 240 150 240 360 240 150 150 150 270 300 2.0 5.0 3.0 5.0 2.0 2.0 5.0 2.5 5.0 1.0 3.0 5.5 6.0 6.0 6.0 1.5 1.5 3 4 5 6 7 8

B) Crossbred Cattle (Bos indicus Fx Bostaurus M) 1 2 3 4 5 6 7 8 9 10 11 HxF H x BS HxJ GxJ GxF RS x F RS x RD RS x J RxJ TxF SxF 34 29 33 25 25 29 28 29 32 33 33 14 15 13 13 13 12 12 12 12 13 14 2,970 2,805 2,850 2,640 2,160 2,295 2,160 1,500 2,700 2,550 2,400 330 330 300 330 270 270 270 300 300 300 300 90 120 90 60 120 90 90 90 60 90 120 9.0 8.5 9.5 8.0 8.0 8.5 8.0 5.0 9.0 8.5 8.0

C) Buffaloes 1 2 3 4 5 6 7 8 9 10 11 Bhadawari Murrah Nili-Ravi Surti Mehsani Jaffarabadi Pandharpuri Marathwadi Nagpuri Dharwari Non-descript 50 42 54 44 50 50 56 50 50 50 50 15 16 16 16 14 14 14 14 14 14 16 1,080 1,800 1,950 1,765 1,620 1,620 1,350 1,015 1,350 1,350 540 270 300 300 330 270 270 270 270 270 270 270 180 180 180 150 150 150 150 150 150 150 210 4.0 6.0 6.5 5.5 6.0 6.0 5.0 3.5 5.0 5.0 2.0

Key : H = Hariana S = Sahiwal RS = Red Sindhi G = Gir T = Tharparkar L = Non-descript R = Rathi F = Friesian BS = Brown Swiss

RD = Red dane J = Jersey Annexure - IV Unit cost of cows and buffaloes Approved by NABARD in some of the major States in India Annexure V Economics of two animal unit (buffaloes) Project at a Glance 1 2 3 4 5 6 7 8 9 10 11 Unit Size Breed State Unit Cost (Rs.) Bank Loan (Rs.) Margin Money (Rs.) Repayment period Interest rate (%) BCR at 15% DF NPW at 15% DF (Rs.) IRR(%) : : : : : : : : : : : 2 Animals Graded Murrah Karnataka 18,223 15,400 2,823 5 12 1.50:1 29,187 >50%

MODEL PROJECT FOR TWO ANIMAL UNIT(BUFFALOES) A INVESTMENT COST Sr.No. Items Specifications Phy units Unit Cost (Rs. /Unit) 1 2 3 4 5 Cost of animals Insurance Conc. Feed (4.5 135 Kg kg/day/animal for 30 days) Total cost Margin money (15% of total cost) Bank laon (85% of total cost) Say Rs. 2 2 1 8,200 689 3.3 Total Cost (Rs.) 16,400 1,378 446 18,223 2,733 2723 6 Say Rs. 15490 15500 B TECHNO ECONOMIC PARAMETERS i) ii) iii) iv) v) vi) vii) viii) ix) x) xi) xii) xiii xiv) No.of milch animals Cost of milch animals Lactation period (days) Dry period (days) Milk yield (lts./day) Sale price of milk (Rs./lt) Sale of manure/animal/year (Rs.) Insurance premium for five years (%) Veterinary aid/animal/year (Rs.) Labour (Rs.) Cost of electricity & water (Rs./animal) Interest rate (%) Repayment period (years) Income from sale of gunny bags 20 bags/tonne @ Rs. 5/bag xv) S.No. Feeding schedule Type of fodder/feed Price (Rs./kg) (Quantity in kg/day) Lactation Dry Period Period a) b) c) Green fodder Dry fodder Concentrate 0.2 0.5 3.3 25 25 55 4.5 1 2 8,200 280 150 7 7.75 300 8.4 150 Family labour 100 12 5 100

xvi) Animals will be purchased in two batches at an interval of 5 - 6 months xvii) It is assumed that the expenditure on calf rearing will nullify the sale value of calf / hiefer. xviii) Closing stock value (Rs. per animal) 4100 C LACTATION CHART Sr.No i) a) b) Particulars I Lactation Days First batch Second batch Total ii) a) b) Dry Days First batch Second batch Total 110 110 80 150 230 110 150 260 150 150 300 150 150 300 250 180 430 280 210 490 250 210 460 210 210 420 210 210 420 II Years III IV V

Annexure - V (Contd.) D CASH FLOW ANALYSIS Sr.No. I 1 2 a) Particulars I Costs: Capital cost* Recurring cost Feeding during lactation period Green fodder Dry fodder Concentrate Total b) Feeding during dry period Green fodder 550 1,150 1,300 1,500 1,500 2,150 1,075 6,386 9,611 2,450 1,225 7,277 10,952 2,300 1,150 6,831 10,281 2,100 1,050 6,237 9,387 2,100 1,050 6,237 9,387 17,777 II Years III IV V

Dry fodder Concentrate Total c) d) II a) b) c) d) III IV V VI VII VIII IX X XI Veterinary aid & breeding cover Cost of electricity & water Total BENEFITS Sale of milk Sale of Gunny bags Sale of manure Closing stock value Total DF @15%

275 363 1,188 225 150 28,951 23,328 205 450 23,982 0.870

575 759 2,484 300 200 13,936 26,583 232 600 27,414 0.756 10,537 20,729

575 858 2,733 300 200 13,514 24,955 218 600 25,773 0.658 8,886 16,946

750 990 3,240 300 200 13,127 22,785 200 600 23,585 0.572 7,505 13,485

750 990 3,240 300 200 13,127 22,785 200 600 8,200 31,785 0.497 6,526 15,803 58,630 87,817

DISCOUNTED COSTS AT 25,175 15% DISCOUNTED BENEFITS 20,854 AT 15% NPW @ 15% BCR @ 15% DF @ 50% NET BENEFITS DISCOUNTED NET BENEFITS AT 50% IRR 29,187 1.50:1 0.667 -4,969 -3,313 >50%

0.444 13,479 5,990

0.296 12,259 3,632

0.198 10,458 2,066

0.132 18,658 2,457 10,833

* excluding the capitalised expenditure on concentrated feed E REPAYMENT SCHEDULE Bank Loan (Rs) - 15500 Interest Rate (%) - 12 Capital recovery factor - 0.277 Year I II III IV V Income 23,982 27,414 25,773 23,585 23,585 Expenses 10,728 13,936 13,514 13,127 13,127 Gross surplus 13,254 13,479 12,259 10,458 10,458 Equated annual instalment 4,294 4,294 4,294 4,294 4,294 Net surplus 8,961 9,185 7,966 6,165 6,165

Annexure VI Economics of a mini DAIRY unit TEN ANIMAL UNIT ( BUFFALOES)

PROJECT AT A GLANCE 1 2 3 4 5 6 7 8 9 10 11 Unit size Breed State Unit cost (Rs) Bank loan (Rs) Margin money (Rs) Repayment period (yrs) Interest rate (%) BCR at 15% DF NPW at 15% DF(Rs) IRR (%) : : : : : : : : : : : 10 animals Graded Murrah Karnataka 155,030 131,700 23,330 5 13.5 1.53:1 154,403 >50

MODEL PROJECT FOR TEN ANIMAL UNIT (BUFFALOES) A INVESTMENT COST S.No. 1 2 3 Items Cost of animals Transportation cost of animals Cost of construction of shed Sq.ft. Specifications Phy.units 10 10 650 Unit Cost (Rs./unit) 8,200 300 55 Total Cost (Rs.) 8,200 3,000 35,750

4 5

Cost of Store cum office Equipments (chaff cutter, milking pails, cans, technicians Insurance Fodder raising expenses @ Rs.3000/acre Total cost Margin money (15% of total cost)

Sq.ft.

200 10

100 500

20,000 5,000

6 7 8 9

10 2

328 3,000

3,280 6,000 155,030

Say

23255 23330

10

Bank loan (85% of total cost)

Say

131776 131700

ANNEXURE VI (contd) B TECHNO ECONOMIC PARAMETERS i ii iii Animals will be purchased in two batches at an interval of 5-6 months Second/Third lactation animals within 30 days of calving will be purchased in first year No. of acres of irrigated land for fodder production considered in 2 the project. Green fodder will be produced on the farm. Fodder production expenses is considered in the cash flow analysis. During first year only two seasons are considered. In the first year the fodder production expenses are capitalised 3,000 for one season (Rs. per acre per season) and manure is utilised for fodder production It is assumed that the expenditure on calf rearing will nullify the income realised from its sale. However, the heifer will be retained on the farm and the old animals will be sold out. No. of milch animals Cost of milch animals Transportation cost (Rs. per milch animal including followers) Civil structures: a) Shed (sft. per milch animal) b) Store and office (sft) x Cost of construction a) Shed (Rs. per sft) b) Store and office xi xii xiii xiv xv xvi Cost of equipment (Rs per milch animals) Lactation period (days) Dry period (days) Milk yield (lts/day) Sale price of milk (Rs/lt) Income from sale of gunny bags (20 bags/tonne @ Rs.5/bag) 500 280 150 7 7.75 100 65 200 55 100 10 8,200 300

iv

v

vi vii viii ix

xvii

Expenditure on dry fodder for dry and lactation period requirement (kg/day) Cost (Rs/kg)

5 0.5

xviii

Expenditure on concentrates a) Requirement (kg/day) Lactation period Dry period b) Cost (Rs/kg)

4.5 1 3.3

xix xx xxi xxii xxiii

Veterinary aid/animal/year (Rs) Labour (Rs./month) Insurance premium (%) Cost of electricity, water & other overheads (Rs/animal) Depreciation(%) a) Sheds b) Equipment

150 900 4 200 5 10

xxiv xxv xxvi

Value of closing stock Interest rate(%) Repayment period (years)

4,100 13.5 5

ANNEXURE VI (Contd.) C. Lactation Chart S.No Particulars I II Years III I a) b) II a) Lactation Days First batch Second batch Total Dry days First batch Second batch Total D CASH FLOW ANALYSIS Sr.No Particulars I II Year III I 1 Costs Capital cost* 145,750 IV IV 550 550 400 750 1,150 550 750 1,300 750 750 1,500 750 750 1,500 1,250 900 2,150 1,400 1,050 2,450 1,250 1,050 2,300 1,050 1,050 2,100 1,050 1,050 2,100 IV V

2 a) b)

Recurring cost Green fodder raising expenses Feeding during lactation period Dry fodder Concentrate Total 5,375 31,928 37,303 6,125 36,383 42,508 5,750 34,155 39,905 5,250 31,185 36,435 5,250 31,185 36,435 12,000 18,000 18,000 18,000 18,000

c)

Feeding during dry period Dry Fodder Concentrate Total 1,375 1,815 3,190 1,125 1,500 3,280 10,800 188,868 116,637 1,023 2,875 3,795 6,670 1,500 2,000 3,280 10,800 52,678 132,912 1,218 3,250 4,290 7,540 1,500 2,000 3,280 10,800 50,945 124,775 1,165 3,750 4,950 8,700 1,500 2,000 3,280 10,800 49,503 113,925 1,095 3,750 4,950 8,700 1,500 2,000 3,280 10,800 48,635 113,925 1,095 26,813 2,500 41,000 117,660 0.87 134,130 0.76 39,832 101,422 125,940 0.66 33,497 82,808 115,020 0.57 28,303 65,763 185,333 0.50 24,180 92,143 290,045 444,448

d) e) f) g) II a) b) c) d) e) III IV V VI VII VIII IX X XI

Veterinary aid & breeding cover Cost of electricity & water Insurance Labour cost Total BENEFITS Sale of milk Sale of Gunny bags Depreciated value of sheds Depreciated value of equipments Closing stock value Total DF @ 15%

DISCOUNTED COSTS 164,233 AT 15% DISCOUNTED BENEFITS AT 15% NPW @ 15% BCR @ 15% DF @ 50% NET BENEFITS DISCOUNTED NET BENEFITS AT 50% IRR 102,313 154,403 1.53:1 0.667 -71,208 47,472 >50

0.444 81,453 36,201

0.296 74,995 22,221

0.198 65,518 12,942

0.132 136,698 18,001 41,893

* excludes the capitalised cost for fodder raising for three months and insurance for one year E REPAYMENT SCHEDULE: Bank Loan (Rs) - 131700

Interest rate(%) - 13.5 Capital recovery factor - 0.287 (in Rs.) Year I II III IV V Income 117,660 134,130 125,940 115,020 115,020 Expenses 33,838 52,678 50,945 49,503 48,635 Gross surplus 83,823 81,453 74,995 65,518 66,385 Equated annual installment 37,798 37,798 37,798 37,798 37,798 Net surplus 46,025 43,655 47,197 27,720 28,587

Annexure - VII Housing Space Requirements for Crossbred cattle Age-group 4-6 months 6-12 months 1-2 years Cows Pregnant cows Bulls* *To be housed individually Annexure - VIII Feeding Schedules for Dairy Animals (Quantity in Kgs.) S.No. 1 (A) a) Type of animal 2 CROSSBRED COW 6 to 7 litres milk per day Lactation days Dry days b) 8 to 10 litres milk per day Lactation days Dry days (B) a) BUFFALOES Murrah (7 to 8 litres milk per day) Lactation days 25 to 30 4 to 5 3.5 to 4.0 20 to 25 15 to 20 25 to 30 20 to 25 5 to 6 6 to 7 4 to 5 6 to 7 3.0 to 3.5 0.5 to 1.0 4.0 to 4.5 0.5 to 1.0 Feeding during 3 Green Fodder 4 Dry Fodder 5 Concentrate 6 Manger Space (mtr.) 0.2-0.3 0.3-0.4 0.4-0.5 0.8-1.0 1.0-1.2 1.0-1.2 Standing or covered area (sq.mtr.) 0.8-1.0 1.2-1.6 1.6-1.8 1.8-2.0 8.5-10.0 9.0-11.0 Open Space(sq.mtr.) 3.0-4.0 5.0-6.0 6.0-8.0 11.0-12.0 15.0-20.0 20.0-22.0

Dry days b) Mehasana (6 to 7 litres milk per Lactation days Dry day) days Surti (5 to 6 litrs milk per day) Lactation days Dry days

20 to 25 15 to 20 10 to 15

5 to 6 4 to 5 5 to 6 4 to 5 5 to 6

0.5 to 1.0 3.0 to 3.5 0.5 to 1.0 2.5 to 3.0 0.5 to 1.0

c)

10 to 15 5 to 10

Annexure - IX Programme for vaccination of farm animals against contagious diseases Sr. No. 1 1 2 Anthrax (Gorhi) 3 Spore vaccine 4 Once in an year premonsoon vaccination - do - do 5 One season 6 Name of disease Type of vaccine Type of vaccination Duration of immunity Remarks

2 3 4 5

Black Quarter (Sujab)

Killed vaccine

- do - do -

To be done only in infected herds After vaccination repeat vaccination every year in Oct./Nov. It is better to repeat after 3 to 4 years

Haemorrhagic Ocladjuvant vaccine Septicaemia (Galghotu) Brucellosis (Contagious Cotton strain 19 (live abortion) bacteria) Foot and Mouth disease Polyvalent tissue (Muhkhar) culture vaccine

At about 6 months 3 or 4 calvings of age At about 6 months One season of age with booster dose 4 months later

6

Rinderpest (Mata)

Lapinised avianised At about 6 months Life long vaccine for exotic and of age crossbred catte, caprinised vaccine for zebu cattle.

Risk Factors Limitations and Constraints: y y y Breeding of animals and getting expected milk yield is a biological phenomenon, which depends upon various factors. Dairy farming besides good planning requires hardworking, reliable and alert manager. In India, usually persons from the family take the responsibility. Inadequate management of feeding ,heard health and lack of quality control in various stage of production can cause major loss affecting the profitability of the entire venture. If proper management practice of livestock is not conducted like balanced diet feeding , medical care and hygiene , the livestock may suffer from diseases like brucellosis , mastitis , If good quality livestock is not produced , the Farmers will not be able to aquire a good market for meat and milk.

y

y

Financial Institutions/Bankers y y NABARD STATE BANK OF INDIA

Conclusion and Outcome Women are empowered since the entire project is to be managed by them. Greater yielding cattle breeding with the application of scientific methods will increase the profitability. It will also provide nutritional support to women and children, since they will have milk production in their own household.