Capital and Land Requirements | Animal Husbandry & Veterinary Science Optional for UPSC PDF Download

Establishing a 100-Animal Dairy Farm

Farm Composition

• Size and Products:
  • Capital and land requirements vary based on farm size and products.
  • Focus on a common medium-sized farm with 100 animals.
• Mixed Cow-Buffalo Farm:
  • Consider a mix of 50% cows and 50% bull-less buffaloes.
  • Preferably use high-fat milk-producing buffaloes like Medium-sized Banni.
• Total Farm Strength:
  • Aim for a total of 200 animals, including calves.

Land and Fodder

• Land Requirement:
  • Allocate 20 hectares for buildings and fodder cultivation.
  • Divide land into 10 hectares for irrigated crops and 9 hectares for rain-fed crops.
  • Reserve 1 hectare for cattle byres and dairy structures.
• Fodder Production:
  • Expect approximately 1000 tons of green fodder and 300 tons of dry fodder per year.
  • Cultivate crops like maize, legumes, and guinea grass.
• Land Selection:
  • Opt for undeveloped land away from towns, possibly adjoining forests.
  • Consider leasing the land for an annual value of Rs. 50,000 to reduce initial capital.

Water Source

• Borewells and Open Well:
  • Install two borewells costing Rs. 45,000 each.
  • Construct an open well with an expenditure of Rs. 55,000.
• Total Water Expenditure:
  • Allocate Rs. 1.5 lakh for providing water to the farm.

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Equipment and Machinery

• Fencing:
  • Fence the entire farm at a cost of Rs. 50,000 to protect fodder crops.
• Farm Machinery:
  • Acquire a tractor with harvester, trailer, plough, cultivator, and barrow.
  • Include a diesel van for transportation.
  • A chaff-cutter and other necessary equipment are essential.
  • The total cost for machinery and equipment is Rs. 4.5 lakh.

Other Essentials

• Milk Preservation: Install an Incamel cooler for preserving milk before marketing, costing Rs. 60,000.

Leasing Option

• Consideration: 
  • Leasing undeveloped land can be cost-effective, reducing the initial capital requirement.
  • Annual lease value estimated at Rs. 50,000.

Expenditure Breakdown for Establishing and Operating the Dairy Farm

Non-recurring Expenditure

• Fencing:
  • Cost: Rs. 50,000
• Borewells, Open Wells, Overhead Tank, and Pipeline:
  • Cost: Rs. 1,50,000
• Electrification:
  • Cost: Rs. 50,000
• Cattle Yard Building:
  • Cost: Rs. 3,00,000
• Plant and Machinery:
  • Cost: Rs. 4,00,000
• Total Non-recurring Expenditure:
  • Rs. 15,50,000

Livestock Cost

• Cost of 50 Crossbred Cows and 50 Buffaloes:
  • Rs. 6,000 per animal
  • Total: Rs. 6,00,000

Recurring Expenditure (Annual): Other Charges

• Lease Value of Land:
  • Rs. 50,000
• Diesel Oil:
  • Rs. 50,000
• Electricity:
  • Rs. 50,000
• Fertilisers:
  • Rs. 80,000
• Seeds and Seedlings:
  • Rs. 1,50,000
• Medicines, Vaccines, Semen, Insurance, etc.:
  • Rs. 50,000
• Concentrate Feed (for high yielders only):
  • Rs. 3,00,000
• Total Other Charges (1st Year):
  • Rs. 7,30,000
• Total Other Charges (2nd Year):
  • Rs. 8,50,000
• Total Other Charges (3rd Year):
  • Rs. 10,00,000

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Staff Pay

• Manager (Vet): 
  • Rs. 7,000 per month
• Assistant Manager (Agri):
  • Rs. 6,000 per month
• Fieldman (Vet):
  • Rs. 2,000 per month
• Fieldman (Agri):
  • Rs. 1,500 per month
• Milk Recorder:
  • Rs. 1,600 per month
• Tractor Driver:
  • Rs. 2,000 per month
• Store Keeper:
  • Rs. 1,500 per month
• Pump Operator:
  • Rs. 1,500 per month
• Attenders (Dairy):
  • Rs. 800 per month
• Milkmen:
  • Rs. 1,000 per month
• Total Staff Pay per Year:
  • Rs. 56,000 (1st Year)

Note:

• Concentrate feed costs increase in the 2nd and 3rd years.
• For 2nd and 3rd years, other charges total Rs. 8,50,000 and Rs. 10,00,000, respectively.

Staff Pay (Per Year) 

• Agricultural Attendants (2):
  • Rs. 800 per month
  • Total: Rs. 19,200
• Call Boys:
  • Rs. 500 per month
  • Total: Rs. 12,000
• Watchman (2):
  • Rs. 1,200 per month
  • Total: Rs. 28,800
• Casual Labour (Male - 10):
  • Rs. 60 per day
  • Total: Rs. 2,19,000
• Casual Labour (Female - 10):
  • Rs. 50 per day
  • Total: Rs. 1,72,500
• Honorarium for Dairy Adviser:
  • Rs. 24,000
• Fees for Veterinary Doctor:
  • Rs. 24,000
• Travelling Allowance for Staff:
  • Rs. 20,000
• Total Staff Pay per Year:
  • Rs. 8,29,900
• Loan Interest:
  • Interest on the loan of Rs. 20,00,000 at 12% per annum:
  • Rs. 2,40,000

Recurring Expenditure (Annual): 

1st year

• Total Expenditure: Rs. 19,20,000

2nd year

• Total Expenditure: Rs. 21,42,890

3rd year

• Total Expenditure: Rs. 23,96,199

Note: A 10% annual increase in feed costs during the 2nd and 3rd years due to the rise in the number of high-yielders.

Anticipated Income

• Cows:
  • 1st Year: 40 cows, 8 liters/day, 300 days/year, Rs. 10/liter
  • 2nd Year: 45 cows, 8 liters/day, 300 days/year, Rs. 10/liter
  • 3rd Year: 60 cows, 8 liters/day, 300 days/year, Rs. 10/liter
• Buffaloes:
  • 1st Year: 40 buffaloes, 6 liters/day, 300 days/year, Rs. 12/liter
  • 2nd Year: 45 buffaloes, 6 liters/day, 300 days/year, Rs. 13/liter
  • 3rd Year: 60 buffaloes, 6 liters/day, 300 days/year, Rs. 13/liter

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Appreciation in Calf Value

• Male Calves:
  • Rs. 50,000 (1st Year), Rs. 80,000 (2nd Year), Rs. 1,00,000 (3rd Year)
• Female Calves:
  • Rs. 1,00,000 (1st Year), Rs. 2,00,000 (2nd Year), Rs. 4,00,000 (3rd Year)
• Total Receipts:
  • 1st Year: Rs. 18,74,000
  • 2nd Year: Rs. 23,32,000
  • 3rd Year: Rs. 30,20,000
• Total Expenditure:
  • 1st Year: Rs. 19,29,900
  • 2nd Year: Rs. 21,42,890
  • 3rd Year: Rs. 23,95,179
• Net Income for 3 Years:
  • Rs. 8,58,031

Summary

• Total Receipts (3 Years): Rs. 73,26,000
• Total Expenditure (3 Years): Rs. 64,67,960
• Net Profit (3 Years): Rs. 8,58,031

Economics of a 25-Cow Dairy Farm

Non-Recurring Expenditure:

• Cost of 25 crossbred cows (Jersey crosses): Rs. 6,000 per cow
• 25 cattle sheds (thatched): Rs. 1,000 per shed
• Gobar gas plant
• Milking pails, Milk cans, Buckets: Rs. 2,500

Total Non-Recurring Expenditure: Rs. 1,85,000

• Fixed Costs:
  • Depreciation of sheds (5%)
  • Depreciation on milk utensils (10%)
  • Interest on investment (15%)
  • Insurance for the animals

Total Fixed Costs: Rs. 39,250

Recurring Expenditure

• Lease value of land: Rs. 10,000
• Insemination charges: Rs. 20 per insemination for 25 cows
• Veterinary aid and medicines: Rs. 24,000
• Feeding cost of milch animals: Rs. 2,19,000
• Labour cost: Rs. 24,000
• Feeding calves: Rs. 73,000
• Miscellaneous expenditure: Rs. 10,000

Total Recurring Expenditure: Rs. 4,09,700

Receipts

• Cost of milk sold: Rs. 7,50,000
• Appreciation in the value of calves grown: Rs. 30,000
• Cost of manure sold: Rs. 18,750
• Cost of empty gunny bags sold: Rs. 3,000

Total Income: Rs. 8,01,750
Total Expenditure: Rs. 4,08,750
Net Profit: Rs. 3,92,000
Profit per annum per cow: Rs. 15,080
Profit per month per cow: Rs. 1,307

Conclusion

Dairy farming, whether on a larger or smaller scale, is proven to be profitable. The income generated, even in a 25-cow farm, surpasses the expenses, making it a worthwhile and lucrative venture for farmers.