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Feasibility Report 
for Cow Farm 
Prepared By:  
Name: Muhammad Azeem Asghar
Mob: 03326782029
Address: Chak No. 270/R‐B Tehsile and District Faisalabad
Email: azeemasghar26@gmail.com
• Milk is a cashable commodity.
• Dairy market in world provides huge potential for milk 
value added products.
• In Pakistan, Dairy sector remains informal and
disorganized resulting in fewer profits for the farmers 
and gap in supply and demand.
Prepared By:  Muhammad Azeem Asghar
Introduction to dairy
1
∗ Background knowledge and related experience
∗ Selection of dairy breed
∗ Selection of good dairy animals with excellent body 
condition
∗ Housing should be dry, comfortable and airy
∗ Feeding
∗ Watering
∗ Breeding
∗ Disease management
∗ Selection of good productive animals and culling of 
uneconomical animal.
∗ Record keeping for milk production, calving, vaccination
Basic concepts/requirements
Prepared By:  Muhammad Azeem Asghar
2
∗ A dairy farm with a herd of 10 animals needs a total 
investment estimated at Rs.2428400 out of which the 
capital cost of the project is Rs. 1862400 for animal 
purchase and building construction.
∗ We have capital of Rs. 126000 in hand in the form of 
animal and building .
∗ Running Cost is 566000 per year and avg. 47000 per 
month which will be drawn through daily milk sale so 
we have required 602400 only.
∗ The project is expected to achieve revenue of Rs. 
1623750 in the first year.
Feasibility for 10 dairy animals
Prepared By:  Muhammad Azeem Asghar
3
∗ The proposed model involves 10 animals to achieve 
milk and calves.
∗ Milk will be primarily sold to bulk buyers at
∗ the rate of Rs.75 per liter with an annual price 
increase of 10%. However, the farm will also offer sale 
to domestic individual consumers.
∗ The dairy farm will have the capacity to produce 
18250 liters of milk per annum and 5 calves of 
Rs.45000 per head.
Feasibility for 10 dairy animals
Prepared By:  Muhammad Azeem Asghar
4
Project Cost
Project Cost
Following operational requirements have been identified for the 
proposed business
1. Capital Cost
Capital Cost included
• Building/ Infrastructure
• Cows and Calves
• Machinery and Equipment 
2. Running Cost
Running Cost included
• Agriculture land Rent
• Building Depreciation Cost
• Human Resource
• Vaccination /Medication
• Feeding Cost
Prepared By:  Muhammad Azeem Asghar
5
Capital Investment for the Project
Capital Investment  Amount (Rs) Inhand Required
Building/ Infrastructure 700000 700000
Cows and Calves (5+5) 1000000 400000 600000
Machinery and Equipment  162400 160000 2,400
Total Capital Cost  1,862,400 1,260,000 602,400
Capital Investment for the Project
Total Capital Required 1862400
Inhand Capital in the form 
of Cattles and infrastuctor
1260000
Capital Required in Cash 602400
Prepared By:  Muhammad Azeem Asghar
6
Machinery and Equipment
Description  Unit rate (Rs.)  Quantity  Cost (Rs) Available Required
Bull cart  80,000 1 80,000 80,000
Calf Feeder 1200 2 2,400 2,400
Water Pump  10,000 1 10,000 10,000
Freezer  30,000 1 30,000 30,000
Chaff cutter  40,000 1 40,000 40,000
162,400 160,000 2,400Total
Machinery and Equipment
Prepared By:  Muhammad Azeem Asghar
7
Running cost
Category Decription
Cost per year 
in Rupees
Agriculture land Rent
Agriculture land required for 10 animals is 
abovt 3 acre and per acre rent is 
approximately 30,000=3X3000
90,000
Building Depreciation 
Cost
Building Cost which is about 5% of total 
Building cost
50,000
Human Resource
Per Month Cost for 1 labourer is 15000 and 
12X15000
180000
Vaccination 
/Medication
Per animal cost for 1 year is 3000 and for 10 
is 30000
30000
Feeding cost for 5 Cows (448X365) 163520
Feeding  Claves (146X365) 53290
566,810
Feeding Cost
Total Cost Per Year
Prepared By:  Muhammad Azeem Asghar
8
Feeding Requirements for COW & 
Calves
Description Kg per Animal per day Rs. Per Kg Amount per Animal per day
Forage 40 4 160
Silage 25 6 150
Concentrate 4.62 30 138
448
Description Kg per Animal per day Rs. Per Kg Amount per Animal per day
Forage 14 4 56
Silage 10 6 60
Concentrate 1 30 30
146
Feeding Requirements for 1 COW
Total
Feeding Requirements for 1 Claves
Total
Prepared By:  Muhammad Azeem Asghar 9
Revenue Generation /Income
Description Units Annual Production Rate(Rs/Unit)
Annual 
Revenue (Rs)
Milk Sales Litters 10*5*365=18250 75 1368750
Calf Sales 5 45000 225000
FYM Trolley 10 3000 30000
1623750Total Income per year
Prepared By:  Muhammad Azeem Asghar
10
Conclusion
Description Amount in Rs.
Total Capital Required 1862400
Inhand Capital in the form of Cattles and infrastructure 1260000
Capital Required in Cash 602400
Total Running Cost Per Year 566000
Total Income per year 1623750
Avg. Income per Month 135312.5
Prepared By:  Muhammad Azeem Asghar
11

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