Classification of Herd :-

Sr.No Type Total number % share in

herd
1 Milking cow 15 57.69
2 Pregnant cow 03 11.53
3 Dry Cow 05 19.23
4 Heifers 02 7.70
5 Calf 01 3.85
Total 26 100

Estimation of Cost of production in Khandage Dairy Farm :

Capital Investement :-

A. Fixed Cost

Sr no Particular Number Price/unit Amount % share in

Rs Milking
Cows
57.69%
A Base Stock 8 40,000 3,20,000 1,84,608
B Machinery and Equipement
1 Chaff cutter 1 20,000 20,000 11,538
2 Disel Engine 8 HP 1 14,000 14,000 8,076.6
3 Sickle 4 50 200 115.38
4 Buckets 4 200 800 461.52
5 Milk can 5 2000 10,000 5769
6 Brooms 2 50 100 57.69
7 Tub 10 200 2000 1,153.8
8 Motor pump 1 3500 3500 2,019.15
9 Water Tank 1 15,000 15,000 8,653.5
10 Milk Machine 1 25,000 25,000 14,422.5
C Building and Construction
1 Cost of irrigation structure 80,000 46,152

3 cost of shade 8,00,000 4,61,520

Total 12,90,600 7,44,547.14

a) Interest Rate on Fixed Capital @ 14%

Initial Investment (Fixed Capital) = Rs. 12,90,600/-

Interest Rate @ 14%

14
= 12 , 90,600 × = Rs.1,80,684/-
100

Interest on fixed capital for milking cows (57.69%) =

14
= 1 , 80,684 × = Rs.25,295.76/-
100

b) Land Rent:-
Land = 4.5 R

Market Value of land Rs.30,00,000/Per acre.

=75,000/- per R.

Land Value of land Rs. 75,000×4.5R = 3,37,500/-

Land Rent @10 % of market value.4.5R

= 3,37,500*10/100 = 33,750

% Share of milking cows of rental value (57.69%) = Rs. 19,470.37/-

c) Depreciation On Fixed Assets:

Original Cost of assets - Junk
Amount of depreciation =
v Useful life of
Sr. Particulars Original Cost Useful Rate (%) Junk Value Depreciatio
No of Assets (Rs) Life (Rs) n (Rs)
(Years)
A) Machinary and Equipments
1 Chaff Cutter 20,000 10 10 2000 1800
2 Engine 14,000 5 20 1400 2520
3 Buckets 800 3 10 80 240
4 Milk Cans 10,000 5 20 1000 1800
5 Sickle 200 2 50 20 90
6 Milk Machine 25,000 10 10 2500 2250
7 Brooms 100 2 10 10 45
8 Tub 2000 2 50 200 900
9 Motor Pump 3500 5 20 350 630
10 Water Tank 15,000 10 10 1500 1350
B) Building and Construction
1 Cost of irrigation 80,000 20 5 8000 3600
structure
2 cost of shade 8,00,000 20 5 80,000 36000
Total 9,70,600 51,225

Total Depreciation Cost = 51,225/-

% Share of Milking cows = 29,551.70/-

d) HEARD COMPOSITION OF ANIMAL (2018-2019):

Heard composition of animal:

Month No. of animal No. of animal Herd

Sold Added Composition
April 1 0 26
May 0 0 26
June 0 2 28
July 1 0 27
August 0 3 30
September 1 0 29
October 2 0 27
November 0 3 30
December 0 0 30
January 1 0 29
February 0 1 30
March 0 0 30
Total 6 9 342

Heard Replacement Cost:

Difference between the Animal Sold & Added = 9 – 6 = 3

Averahe Herd Size = Herd Composition

12
342
Average Herd Size =
12
= 28.5
Diff . Bet . Animal sold∧added
Herd Replacement Rate=
Average Herd ¿ × 100¿
3
×100
28.5

= 10.52%

Total Value of Average Herd Size - 23 Cow , 1Calf, 2 Heifer.

1 Cow -Rs.60,000/-, 1 Calf -Rs.10,000/-, 1 Heifer 15000/-.

Cost of Cow’s = Rs. 13,80,000,./-

Cost of Calf = Rs.10,000/-.
Cost of Heifer = 30,000/-.
Herd Replacement Cost = 14,20,000X 10.52

100

= Rs.1,49,384/-

% Share of Milking Cows (56.52%)= Rs. 86,179.62/-

E) Total Annual Fixed Cost:

Sr. Total Annual Fixed Cost Amount(Rs.) % Share of

No. Milking Cows

1 Rental value of land @10 33,750 19,470.37

2 Depreciation 51,225 29,551.70

3 Interest on Fixed Capital @ 14% 1,80,684 1,04,236.59

4 Herd Replacement Cost 1,49,384 86,179.62

Total Fixed Cost 4,15,043 2,39,438.28

Total Annual Fixed Cost = Rs. 4,15,043

(Per Day Milk=250Lit, Per Month Milk =7500 Lit,Annual Milk =90,000)
Fixed Cost Per Lit . = 415043
90000
= Rs 4.61/-
% Share of Milking Cow(57.69) = 2.65
B. Variable Costs

Crop Particular Quantity Price Amount(Rs

per unit )
(Rs)

Seeds (5 kg) 10 500 5000

Grass Fertilizer Urea 1 280 280

10.26.26 1 1,000 1,000

Land preparation Ploughing 1/hr 800 800

Rotavator 1/hr 900 900

Labour Sowing 1 day 1 labour 300 300

Sub total 8,280

Seeds (35 kg) 35 50 1,750

Maize Fertilizer Urea 2 280 560

10.26.26 2 1,000 2,000

Land preparation Ploughing 2/hr 800 1,600

Rotavator 2/hr 900 1800

Labour Sowing 1 day 1 labour 300 300

Watering 10 days 150 1,500

Sub total 9,510

Annual Fodder Cost : Maize + Elephant Grass

= 8280 + 9510
 = Rs 17,790/-

Sugarcane : (Buy From Farmer) 150 tons/ year

= 150 x 2500

= Rs /- 3,75,000

Annual Cost = 17,790 + 3,75,000 = 3,92,790/-

a) Fodder Cost:

Sr. Type of Type of No. Require Daily Annual Cost Total

No. Fodder Animal of ment per Require Requireme per cost(Rs)
Ani day per ment (kg) nt(Kg) (Kg)
mal cow (Kg)
1 Green Milking 15 20 300 1,08,000 0.90 97,200
Fodder cow

Pregnan 3 20 60 21,600 0.90 19,440

t cow

Dry 5 10 50 18,000 0.90 16,200

cow

Heifers 2 7 14 5040 0.90 4536

Calf 1 3 3 1080 0.90 972
Sub 26 60 427 1,53,720 1,38,348
total
2 Dry Milking 15 6 90 32,400 2 64,800
Fodder cow

Pregnan 3 6 18 6480 2 12,960

t cow

Dry 5 4 20 7200 2 14,400

cow
Heifers 2 3 6 2160 2 4,320
Calf 1 2 2 720 2 1440
Sub 26 21 136 48,960 97,920
total
3 Concent Milking 15 5 75 27,000 24 6,48,000
rated cow
 Pregnan 3 5 15 5,400 24 1,29,600
t cow

Sub 18 10 90 32,400 7,77,600

total

Total Annual Fodder Cost -

= Green Fodder + Dry Fodder + Concentrate

= 1,38,348 + 97,920 + 7,77,600

= Rs 10,13,868 /-

% Share of Milking Cows (Rs.) (57.69%) = Rs 5,84,900/-

b) Labour Cost:

LabourCost – Numbers Wages(Monthly) Rs. Annual wages Rs.

Type of Labour

Male 2 15,000 1,80,000

Total 15,000 1,80,000

% Share of Milking Cows (Rs.) (57.69%) = Rs. 1,03,842/-

c) Veterinary Charges:

Sr. No. Particulars Monthly Charges(Rs.) Annual Charges(Rs.)

1 Veterinary Charges 1500 18,000

2 Medicinal Cost 1000 12000

Total Veterinary Charges 2500 30,000/-

 % Share of Milking cow(57.69%) = 17,307/-

d) Annual Fuel Cost:

Sr. No. Particulars Monthly Charges(Rs.) Cost(Rs.)

1 Electricity Bills Barn 700 8,400

Motor Pump 300 3,600

Total Fuel Cost 1000/- 12,000

% Share of Milking Cow(57.69%) = Rs. 6,922.8/-

e) Other Miscellaneous Cost:

Sr. No. Particulars Cost (Rs.)

1 Transportation Cost 14,400

2 Incidental Cost 1,000

Total 15,400/-

% Share of Milking Cow = 8,884.26/-

f) Total Annual Variable Cost:

Sr. No. Particulars Cost (Rs.) %share of milking

Cow (57.69%)
1 Fodder Cost 10,13,868 5,84,900.44
2 Labour Cost 1,80,000 1,03,842
3 Veterinary Charges 30,000 17,307
4 Annual Fuel Cost 12,000 6,922.8
5 Other Miscellaneous Cost 15,400 8,884.26

Total Variable Cost 12,51,268 7,21,856.50

Interest Rate On Variable Cost@ 10% 1,25,126.8 72,185.65
Total Annual Variable Cost 13,76,394.8 7,94,042.16

Total Annual Variable Cost =13,76,394.8

Variable Cost Per Lit. = 13,76,394.8

90,000

= Rs. 15.29/-

% Share of Milking Cows (54%) = 794042.16

90000

= Rs. 8.82/-

Total Annual Cost Of Production

Total Annual Fixed Cost + Total Annual Variable Cost

= 4,15,043 + 13,76,394.8

= Rs. 17,91,437.8/-

Total Annual Cost Of Production = 17,91,437.8

% Share of Milking Cows (57.69%) =Rs. 10,33,480.46

Cost of Production per liter :- Total Cost of Production

Total Production in Liter

= 17,91,437.8
 90,000

Cost of Production per Lit = Rs. 19.90/-

% Share of Milking Cows (56.52%) = Rs.11.48/-.

Income Generated Through Milk

90,000 Lit Milk produced per year out of which

90,000 lit sold @ Rs.24 /lit = Rs. 21,60,000/-

Income Generated Through Cow Dung:

Selling price of Dung is 4,000/trolly

Sr . No No of trolly Amount (Rs)

Weekly 1 4,000
Monthly 4 16,000
Yearly 36 1,44,000

C. Gross Income –

Particulars Quantity Rate Amount(Rs.)

Income through selling of 90,000 24 21,60,000
milk
Income through selling of 36 4000 1,44,000
cow dungs(Manure)
Income through selling of 6 10,000 60,000
Calf
Total 23,64,000

Net Profit = Gross Income – Total Cost per Annuam

= 23,64,000 – 17,91,437.8
= Rs. 5,72,562.2/-

Net Profit = Rs.5,72,562.2/-