Final project old
Download as DOC, PDF4 likes2,228 views
1. The document outlines a business plan for a dairy farm called Voice Farm. It includes details about the proprietor, qualifications, experience, objectives, executive summary, introduction, marketing mix, SWOT analysis, financial plan with projected expenses, assets/liabilities, cash flow, profit/loss statements, and projected profit/loss for the next 3 years. 2. The key aspects of the plan are establishing a dairy farm with 30 cows to sell quality milk and provide employment. Financial projections estimate annual sales of Rs. 20-30 lakhs with net annual profits of around Rs. 6-7 lakhs over the first 3 years as more cows are acquired. 3. The business aims to
Final project old
- 1. BUSINESS PLAN BUSINESS: Dairy Farming NAME OF THE FARM: VOICE: Email -id: Proprietor
- 2. NAME : Ashish Kumar Sex : Male DOB : 07 July 1992 Home : Danapur Patna 801503 Voice : 9504603272, 8409399411 Email-id : ashish.love96@gmail.com Qualification: B.B.A.(Graduation) B.S. College M. U.(Bihar) Patna 2010-til it Intermediate R.P.S. college B.E.I.C. Patna 2009 10th Baldev inter school B.S.E.B DANAPUR 2007 Experience • Work as Customer care executive for two month in call to connect India pvt ltd. Objective Establishment of small dairy farm. Providing employment for at least 7-10 people. To reduce milk crises. Awareness' for organized dairy farm.
- 3. Executive Summary Why do Dairy Farming? 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 gober gas from the dung is used as fuel for domestic purposes as also for running engines for drawing water from well. The surplus fodder and agricultural by-products are gainfully utilized 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 beneficiaries of dairy programmers 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
- 4. surplus of Rs. 6000 - 9000/- approximately per year. (For details see model scheme enclosed). Even more profits can be earned depending upon the breed of animal, managerial skills and marketing potential. 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 up to 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 centers where the demand for milk is high. Scope for Dairy Farming and its National Importance The total milk production in the country for the year 2001-02 was estimated at 84.6 million metric tonnes. At this production, the per capita availability was to be 226 grams per day against the minimum requirement of 250 grams per day as recommended by ICMR. Thus, there is a tremendous scope/potential for increasing the milk production. The population of breeding cows and buffaloes in milk over 3 years of age was 62.6 million and 42.4 million, respectively (1992 census) Central and State Governments are giving considerable financial assistance for creating infrastructure facilities for milk production. The ninth plan outlay on Animal Husbandry and Dairying was Rs. 2345 crores. Introduction Description of the Business: The farm is into the business of selling quality cow milk. The Vision: Our Farm is committed to provide quality and unadulterated milk to our customers. Business Organization: The form of organizational structure chosen is sole proprietorship, as the capital required is not very high and the entire range of business activities can be efficiently handled by a single person. Growth Trends in This Business: The market for cow milk is always growing constantly. India's annual milk production has more than tripled in the last 30 years, rising from 21 million tons to 80 million tons in 2001.
- 5. Targeted Market and Customers: Our customer would be the co-operative milk society in the town. Licenses: License is not mandatory for dairy farming. Insurance: Each cow will be insured with “Cattle and livestock insurance” with a premium of Rs. ----per annum (as per norms). Secondly employee of farm will be also insured with health insurance and other if needed, so they would be free from fear of disease. Marketing Mix Marketing mix is the primary responsibility of marketing. By offering the product with the right combination of the four Ps marketers can improve their results and marketing effectiveness.
- 6. Place The location of plant is in Maner. Its land is 3 kattha. Advantages of location of Plant (Maner) are below:- • Fodder Farm is 1km far only. • Maner is Proprietor’s home town and having his goodwill in this area from last 5decade. Therefore support of people will be always with the RNSpam dairy farm. • Well constructed road connected to national highway with 2 way (approx 1km away) with two way. • Well draining system is available. • Well established market is nearby, carrying all facilities. • Veterinary hospital facilities are near by. ****Farm is 1 bigaha to cultivating green fodder in home village hulasitola**** Product The farm is into the business of selling quality cow milk. Our farm will milk and sell it in market. This product is highly demanded in the market due to scarcity of good quality of
- 7. milk. Our customer would be the co-operative milk society in the town and consumer will be local people of Patna district. Production parameter of RNSpam 1. Order of location - one year 2. Milk yield - 15 liters / day 3. lactation day - 365 to 450 days 4. Dry days - 120 to 150 days Price The price of milk is growing rapidly so there is no matter of good price of milk. Recently average price of milk in Patna market is Rs 15 to Rs 30 in society (Sudha, Raj, & natural etc) and retail(individual people) respectively. So the standard price that is assumed by the company is Rs.15. Promotion Personal selling of milk will be done to sell the product. No need to perform other promotional activity for our product. SWOT Analysis of business Strength
- 8. Proprietor is having PGDM (MBA) degree. Own land and farm of Proprietor Market is not going to ruin. Higher demand of Milk. Income from the day, first Utilization of wastes (Gaumutra, Goabar) Weakness High maintenance Opportunity Less competition High revenue Threat Communicable Disease Uncertainty of productivity FINANCIAL PLAN
- 9. Start up Working Capital / month Sl. Particular Physical unit & Specification Cost (in Rs) No. 1. Man power see in technical aspect para / section 16,500 2. Doctor + Medicine 5,000 + 5,000 10,000 3. Fodder + All required Rs.100 * 30Cows /day 90,000 4. Green fodder Farming in own farm 1350 5. Diesel Transportation + Generator 20,000 6. Electric bill 1,000 7. Stationary 500 8. Miscellaneous Charges 3,000 Total Start-up Expenses / month 1,42,350 Projected Start -Up Expenses Fixed Cost Sl. No. Particular Physical unit & Specification Cost (in Rs)
- 10. 1. Shed 1 2,00,000 2. Cow (30unit * Rs30,000) 9,00,000 3. Cost of transporting of Cows From purchased town 1,00,000 4. Pick up van 1 3,00,000 5. Milk Cain’s 6 15,000 6. Milking Machine 1 20,000 7. Chaff cutter 1 5,200 8. Milk containers (Balti) 10 3,000 9. Nad 30 20,000 10. Feed grinder & Mixer 1 25,000 11. Weighing machine 1 10,000 12. Driver for 3 months 7,500 13. Skilled & unskilled staff for 3 months 27,000 14. Manager for 3 months 15,000 15. Veterinary Doctor + Medicine for 3 months 30.000 16. Feed and fodder for 3 months 2,74,050 17. Electric Connection 3 KVA) 10,000 18. Generator 1 61,500 19. Tube lights + Fans + wiring 20 + 15 + as per required 25,000 20. Pump set (including pipe) 2 (Plant + farming) 50,000+65,000 21. Furniture 20,000 22. Others 1,00,000 Total Start-up Expenses (A) 22,82,750
- 11. Start-Up – Assets & liabilities Assets Particular Amount (Rs) Cash Required 2,50,000 Long-term Assets (land, live stock, etc….) 5,00,000 Total Assets 7,50,000 Total Requirements (Total Start-up Expenses (A) 30,32,750 + total asset) Liabilities Liabilities Amount (Rs) Capital Prashant Nirala (30,32,750) Start-up (Start-up Expenses = 22,82,750) 7,50,000 Total Capital 7,50,000 Sale Forecast
- 12. 1. Income from Milk = Rs. 20, 25,000 (a) Milk per day - 30cows * 15lits = 450 lits (b) Rate of Milk - @Rs.15 / Lits (c) Daily Income from milk - Rs. 6,750 (d) 300 days income from milk - Rs. 20,25,000 **Selling in society**
- 13. Projected cash flow statement Particulars Amount (Rs) Cash Received Cash from Operations Sales Rs. 20,25,000 Cash Receivables 1,25,000 Total Cash Received (A) 19,00,000 Expenditure Expenditure from Operation Cash Spending 2,00,000 Bill Payment 50,000 Total Cash Spend (B) 2,50,000 Net cash flow (A-B) 16,50,000 Cash Balance (16,50,000+2,50,000) 19,00,000 Profit & Loss A/C
- 14. Income Particulars Amounts in (Rs.) Sales 20,25,000 Total Sales (a) 20,25,000 Expense / yearly Sl. No. Particular Physical unit & Specification Cost (in Rs) 1. Payroll See in Technical aspect para / section 1,98,000 2. Medicine 5,000/month 60,000 3. Fodder + All required Rs.80 * 30Cows /day * 365 days 8,76,000 4. Insurance 5% of each cow’s cost 45,000 5. Diesel Transportation + Generator 1,00,000 6. Electric bill 500 / month 6,000 7. Stationary 250/month 3,000 8. Miscellaneous Charges Purchasing + Welcome 50,000 Total Expenses (b) 13,38,000 Profit Before Interest and Taxes (a-b) = “20,25,000 - 13,38,000” 6,87,000 Interest Expense - Taxes Incurred _ Net Profit 6,87,000 Projected Balance Sheet Assets …
- 15. Current Assets Amount(Rs) Cash Balance 19,00,000 Accounts Receivable 1,25,000 Total Current Assets = 20,25,000 Long-term Assets Long-term Assets (land & live stock) 5,00,000 Accumulated Depreciation (20,000) Total Long-term Assets = 4,80,000 Total Assets 25,05,000 Liabilities… Particulars Amount (Rs) Current Liabilities Accounts Payable 20,000 Sundry creditors 1,24,000 Total Current Liabilities = 1,44,000 Capital 30,32,750 Start up expenses (22,82,750) Earnings 6,87,000 Total Capital = 14,37,000 Total Liabilities and Capital = 15,81,000 Profit & Loss A/C for next 3 years 1. First year Profit & Loss A/C Snapshot
- 16. • Total no. of cow 30 units Sale Forecast 1. Income from Milk = Rs. 20, 25,000 a) Milk per day - 30cows * 15lits = 450 lits b) Rate of Milk - @Rs.15 / Lits c) Daily Income from milk - Rs. 6,750 d) 300 days income from milk - Rs. 20,25,000 **Selling in society** Expense / yearly Sl. No. Particular Physical unit & Specification Cost (in Rs) 1. Payroll See in Technical aspect para / section 1,98,000 2. Medicine 5,000/month 60,000 3. Fodder + All required Rs.80 * 30Cows /day * 365 days 8,76,000 4. Insurance 5% of each cow’s cost 45,000 5. Diesel Transportation + Generator 1,00,000 6. Electric bill 500 / month 6,000 7. Stationary 250/month 3,000 8. Miscellaneous Charges Purchasing + Welcome 50,000 Total Expenses (b) 13,38,000 Profit Before Interest and Taxes (a-b) = “20,25,000 - 13,38,000” 6,87,000 Interest Expense - Taxes Incurred _ Net Profit 6,87,000 2. Second year Profit & Loss A/C Snapshot • Purchasing of 15 Cow in next batch • Total no. of cow 45 units • Incrimination of one skilled employee
- 17. Sale Forecast 1. Income from Milk = Rs. 30, 37,500 a) Milk per day - 45 cows * 15lits = 675 lits b) Rate of Milk - @Rs.15 / Lits c) Daily Income from milk - Rs. 10125 / day d) 300 days Income from milk - Rs. 30,37,500 **Selling in society** Expense / yearly Sl. No. Particular Physical unit & Specification Cost (in Rs) 1. Payroll (6 employee) See in Technical aspect para / section 2,34,000 2. Medicine 7500 / month 90,000 3. Fodder + All required Rs.80 * 45Cows /day * 365 days 13,14,000 4. Insurance 5% of each cow’s cost 67,500 5. Diesel Transportation + Generator 1,00,000 6. Electric bill 600 / month 7,200 7. Stationary 250/month 3,000 8. Miscellaneous Charges Purchasing + Welcome 60,000 Total Expenses (b) 18,75,700 Profit Before Interest and Taxes (a-b) = “30,37,500 - 18,75,700” 11,61,800 Interest Expense - Taxes Incurred _ Net Profit 11,61,800 3. Third year Profit & Loss A/C Snapshot • Purchasing of 25 Cow in next batch • Total no. of 100cow units 1st year + 2nd year + 3rd year = Total 60 units + 15 units + 25 units = 100 units
- 18. • Incrimination of two skilled & two Unskilled employee Sale Forecast 1. Income from Milk = Rs. 30, 37,500 a) Milk per day - 100 cows * 15lits = 1500 Lits b) Rate of Milk - @Rs.15 / Lits c) Daily Income from milk - Rs. 22,500/ day d) 300 days Income from milk - Rs. 67,50,000 **Selling in society** Expense / yearly Sl. No. Particular Physical unit & Specification Cost (in Rs) 1. Payroll (10 employee) See in Technical aspect para / section 3,78,000 2. Medicine 16,666 / month 2,00,000 3. Fodder + All required Rs.80 * 100Cows / day * 365 days 29,20,000 4. Insurance 5% of each cow’s cost 1,50,000 5. Diesel Transportation + Generator 1,50,000 6. Electric bill 1,000 / month 1,20,000 7. Stationary 500 / month 6,000 8. Miscellaneous Charges Purchasing + Welcome 4,00,000 Total Expenses (b) 43,24,000 Profit Before Interest and Taxes (a-b) = “67,50,000 - 43,24,000” 24,26,000 Interest Expense - Taxes Incurred _ Net Profit 24,26,000 1. First year Profit = Rs 6, 87,000 2. Second year Profit = Rs 11, 61,800 3. Third year Profit = Rs 24, 26,000 4. fourth year plan = check out below future plan 5. fifth year plan = check out below future plan
- 19. Future plan of RNSpam dairy farm In time span of 1 year, RNSpam dairy farm will be well established to move properly in milk production, Cow management, etc. In second and third year Rnspam dairy farm will extend its arms in both direction vertically by opening outlets nearby such as Maner, Bihta, Danapur, etc to sell Ghee, Butter, Peda, lassi etc as well as horizontally by opening Collection centre also parallels as per requirement for our product. In fourth to fifth year, The goal of RNSpam is to reach on such a position that it can be RNSpam Pvt. Ltd. TECHNICAL ASPECTS Managerial Staff Sl. No. Post of Employee unit Payment /month 1. Veterinary Doctor 1 5,000 2. Driver 1 2,500 3. Skilled & unskilled 1 3,000 *
- 20. Housing: 1. Construction of shed on dry, properly raised ground. 2. Avoiding of water-logging, marshy and heavy rainfall areas. 3. The walls of the sheds would be 1.5 to 2 meters high. 4. The walls would be plastered to make them damp proof. 5. The roof would be 3-4 meters high. 6. The cattle shed would be well ventilated. 7. The floor would be pucca/hard, even non-slippery impervious, well sloped (3 cm per meter) and properly drained to remain dry and clean. 8. Providing 0.25 meter broad, pucca drain at the rear of the standing space. 9. A standing space of 2 x 1.05 meter for each animal is designed. 10. The manger space would be 1.05 meter with front height of 0.5 meter and depth of 0.25 meter. 11. The corners in mangers, troughs, drains and walls would be rounded for easy cleaning. 12. Provide 5-10 sq. meter loaf space for each animal. 13. Providing proper shade and cool drinking water in summer. 14. In winter & raining, Animals will be kept indoor during night and rain. 15. Controlling of external parasites (ticks, flies etc.) by spraying the pens, sheds with Malathion or Copper sulphate solution. 18. Draining of urine into collection pits and then to the field through irrigation channels. 19. Disposal of dung and urine properly. A gobar gas plant will be added further. 20. finally giving an healthy and adequate space for the animals. ****Housing Space Requirements for Crossbred cattle Annexure I **** Electricity 1. Source of electric Connection - BSEB 2. Approval of Connection cost - Rs. 5,000 3. Connection Load - 3 KVA 4. Problems of power failure - 8 hours 5. Arrangements for generator – Rs.61500 (Honda-EXK2800S)
- 21. Water (farming & plant) 1. Source - Ground water 2. Quality of water - Drinkable / Good 3. Investment (2units) - Rs. 50,000 + 65,000 4. Structure - Boring 5. Design - Submersible Motor(plant) + diesel engine(farm) 6. Availability of sufficient quantity for drinking, cleaning nad, fodder production, as well as cultivation. Milking of Animals 1. Milk of the animals two times a day. 2. Milking at fixed times. 3. Milking in one sitting within eight minutes. 4. Milking would be done by the same person regularly in a clean place. 5. Washing of the udder and teat with antiseptic lotions/ luke -warm water and dry before milking. 7. Milk will be free from any contagious diseases and should wash his hands with antiseptic lotion before each milking. 8. Sick cows will be milked at the end to prevent spread of infection. Selection of Animal 1. Proposed species - Jersey, Sahiwal 2. Source of purchase - West Bengal, Haryana , Panjab 3. Cost of animals - Rs. 30 (average) 4. Purchasing freshly calved animals in their second/third lactation.
- 22. 5. Before purchasing, ascertain actual milk yield by milking the animal three times consecutively. 6. Identification of the newly purchased animal by giving suitable identification mark (ear tagging or tattooing). 7. Vaccination for the newly purchased animal against disease. 8. Firstly, Newly purchased animal would be under observation for a period of about two weeks and then mix with the general herd. 9. Purchasing of the second animal/second batch after 5-6 months from the purchase of first batch of animal. 10. As cow are seasonal calvers purchase them during July to February. 11. As far as possible purchasing of the second batch animal when the first animal is in its late stage of lactation and is about to become dry, thereby maintaining continuity in milk production vis-à-vis income. This will ensure availability of adequate funds for maintaining the dry animals. Breeding Care 1. Observation of the animal closely and keeping specific record of its coming in heat, duration of heat, insemination, conception and calving. 2. Source semen - Artificial insemination 3. Location - At dairy farm only 4. Expenditure - Rs. 500 / yrs 5. Breeding of the animals when it is in peak heat period (i.e. 12 to 24 hours of heat). Care during Pregnancy Special attention will be provided to pregnant cows two months before calving by providing adequate space, feed, water etc. Feeding of Milch Animals 1. Feeding the animals with best feeds and fodders. That may be in such a combination 2. Quantity required (kg./day)
- 23. Cost(Rs. / Kg) Lactation period Dry Period Young Stock Green Fodder Rs. 3 7kg 4kg 2kg Dry Fodder Rs. 2 10kg 8kg 4kg Concentrates Rs. 20 3kg 2kg 1kg 3. Green fodder will be grown on my own farm itself for this purpose all facility will be arranged by own like Boring and own land are also available. 4. The oil cakes would be flaky and crumbly. 5. Moisten of the concentrate mixture before feeding. 6. Providing adequate vitamins and minerals including salt licks besides addition of mineral mixture to the concentrate ration. . Providing adequate and clean water by own pump-set. 7. Arrangement of adequate exercise to the animals. Cows would be taken for wallowing. In case if this is not possible sprinkle sufficient water more particularly during summer months. 8. To estimate the daily feed, the animals should consume about 2.5 to 3.0 percent of their body weight on dry matter basis. **** Feeding schedule is given in Annexure III**** Protection against Diseases / Veterinary Aid 1. Always alert for signs of illness such as reduced feed intake, fever, abnormal discharge or unusual behavior by permanent veterinary Doctor.
- 24. 2. Always a veterinary doctor will be with team for help if illness is suspected. 3. Protection of the animals against common diseases. 5. Periodic tests would be arranged for Brucellosis, Tuberculosis, Johne's disease, Mastitis etc. 6. Deworm the animals regularly. ****Vaccination schedule is given in Annexure II**** Marketing of Milk 1. Source of sales - Co-Operative milk society 2. Place of disposal - Raj dairy Pvt. Ltd. 3. Distance (km.) - 2 km 4. Price realised - Rs. 15 / lit 5. Basis of payment - Cash / cheque 6. Periodicity of payment - Weekly 7. Marketing of milk immediately after it is drawn keeping the time between production and marketing of the milk to the minimum. 8. Washing of milk cans thoroughly with detergent and finally rinse with chloride solution to handle milk in hygienic way. 9. Transporting of the milk during cool hours of the day. Care of Calves 1. Feeding colostrums to calf. 2. Assisting the calf to suckle if it is too weak to suckle on its own within 30 minutes of calving.
- 25. 3. Keeping the calf separately from birth till two months of age in a dry clean and well ventilated place. 7. Protecting the calves against extreme weather conditions, particularly during the first two months. 8. Group the calves according to their size. 9. Vaccinate calves. Equipment/Plant and Machinery : i) Chaff cutter iii) Milking machine iv) Feed grinder and mixer v) Milking pails/milk cans
- 26. Annexure I
- 27. Housing Space Requirements for Crossbred cattle Age-group Manger Space Standing or covered Open (mtr.) area (sq.mtr.) Space(sq.mtr.) 4-6 months 0.2-0.3 0.8-1.0 3.0-4.0 6-12 months 0.3-0.4 1.2-1.6 5.0-6.0 1-2 years 0.4-0.5 1.6-1.8 6.0-8.0 Cows 0.8-1.0 1.8-2.0 11.0-12.0 Pregnant cows 1.0-1.2 8.5-10.0 15.0-20.0 Bulls* 1.0-1.2 9.0-11.0 20.0-22.0 Annexure II Programme for vaccination of farm animals against contagious diseases Sr. Name of Type of Type of Duration of Remarks disease vaccine vaccination immunity No. 1 2 3 4 5 6 1 Anthrax (Gorhi) Spore vaccine Once in an One season - year premonsoon vaccination 2 Black Quarter Killed vaccine - do - - do - - (Sujab) 3 Haemorrhagic Ocladjuvant - do - - do - - Septicaemia vaccine (Galghotu) 4 Brucellosis Cotton strain 19 At about 6 3 or 4 To be done (Contagious (live bacteria) months of calvings only in abortion) age infected herds 5 Foot and Mouth Polyvalent At about 6 One season After disease tissue culture months of vaccination (Muhkhar) vaccine age with repeat booster dose vaccination
- 28. 4 months every year in later Oct./Nov. 6 Rinderpest Lapinised At about 6 Life long It is better to (Mata) avianised months of repeat after 3 vaccine for age to 4 years exotic and crossbred catte, caprinised vaccine for zebu cattle. Annexure III Feeding Schedules for Dairy Animals (Quantity in Kgs.) S.No. Type of animal Feeding Green Dry Fodder Concentrate during Fodder 1 2 3 4 5 6 (A) CROSSBRED COW a) 6 to 7 litres milk per Lactation days 20 to 25 5 to 6 3.0 to 3.5 day Dry days 15 to 20 6 to 7 0.5 to 1.0 b) 8 to 10 litres milk per Lactation days 25 to 30 4 to 5 4.0 to 4.5 day Dry days 20 to 25 6 to 7 0.5 to 1.0