This project report provides a detailed examination of dairy production processes, aiming to identify areas for optimization and efficiency enhancement. Through thorough analysis and data collection, the report offers insights into various aspects of dairy farming, including herd management, feed composition, milking techniques, and waste management. Additionally, recommendations are provided to improve overall productivity and sustainability in dairy operations.

1. Student Project Work (SPW)
1
 Name of the student: Kishor Baban Bombe.
 Reg.No: ABN/2018/005.
 Project Title: A case study on Milk production and Management Practices Of Cows at Khandage
Dairy Farm.
WELCOME
Module-II

2. ADVISORY COMITTEE
Dr.M.B.Bhujbal
(Member)
Dr.M.N.Waghmare
(DI-Nominee)
Prof.S.M.Acharya
(Co-ordinator)
Prof.O.R.Thorat
SMS
Prof.V
.N.Jadhav
(ABS)

3. 1.INTRODUCTION
Rank State Production(milliontonnes)
1 India 196.18
2 US 99.16
3 Pakistan 47.30
4 Brazil 35.17
5 China 32.67
 India has been the largest milk producing country of the world.
 Agriculture is the backbone of indian economy. About 65% of the indian population is depends on agriculture.
 The milk production of India has grown from 17 million tons in 1951 to 176.27million in the year 2019-20.
 In India dairy sector is growing fast. Since agriculture is seasonal there is possibility of finding employment through
the year for many persons through dairy farming
 The state of Uttar Pradesh produced the highest amount of milk in India at about 30.5 million metric tons.
 The total milk production in the country amounted to about 187 million metric tons .
 Top five milk production country(Million tones)

4. Milk Production in India
Sr. No. Name of State/UT Production (MT)
1 Uttar Pradesh 30,519
2 Rajasthan 23,668
3 Madhya Pradesh 15,911
4 Andhra Pradesh 15,044
5 Gujarat 14,493
6 Punjab 12,599
7 Maharashtra 11,655
8 Haryana 10,726
Year Production (Million Tones) Per Capita Availability ( gms/day)
2012-13 132.4 299
2013-14 137.7 307
2014-15 146.3 322
2015-16 155.5 337
2016-17 165.4 355
2017-18 176.3 375
2018-19 187 394
2019-20 198.4
407
Highest Milk Producing States In India

5. Importance Of Dairy Industry :
 The dairy sector can play an important role providing jobs for ruralcommunities.
 Dairy production and processing provide employment.
 Dairy has become an important secondary source of income for millions of ruralfamilies.
 Dairy business is best supplementary business & Demand of milk is increasing day byday.
 By product of dairy get high income.
 Dairy is provide nutritional value to the humanbeing.
 Dairy products as an important food source providing energy, high quality protein and several keyminerals
and vitamins.

6. Objectives :
1. To study Management Practices followed in Dairy Farm.
2. To study Economics feasibility of Dairy Farm.
3. To study the SWOT Analysis of DairyFarm.
4. To study the various problem faced and to give suggestions to overcome the problems.

7. Sr.No. Owner Name Unit Name No.of Cows Address
1 Mr. Kantaram Takalkar Sarvadnya Dairy Farm 19 A/P Pimparkhed
2 Mr. Avdhut Khandage Khandage Dairy
Farm
26 A/P Devgaon
3 Mr. Amol Dhome Dhome Dairy Farm 20 A/P Pimparkhed
4 Mr. Aditya Bhujbal Krishna Dairy Farm 21 A/P Chandoh
5 Mr. Sagar Bombe Bombe Dairy Farm 15 A/P Pimparkhed
Survey of Selection of Unit

8. Selection Of Unit :
1. Dairy Industry is the most profitable business helping in gaining maximum returns out of it.
2. Agriculture is the backbone of Indian economy maximum national income to the country is
from the agriculture sector and dairy sector is related to the agriculture.
3. Dairy sector doesn’t require maximum investment ultimately resulting in maximum profit.
4. Not more skilled labours are required for the dairy maintenance.
5. Dairy sector is the long term business which can be carried out for a longer period.
6. To study about the actual cost actual cost of production, the net profit that can be obtained
from the dairy and the various ratios regarding the cost for the dairy.
7. To gain the knowledge about sources of funds, government subsidy, and the actual loan
required for the setting up of dairy farm.
8. To study the do’s and don’ts of the dairy business.
9. To study the actual maintenance of the dairy barn

9. Collection Of Data :
A)Primary Data-
 Information is collected by studying the selected unit.
 To survey the local farmer.
 To survey from milk collection center and checking the prices of raw milk.
 To survey the cooperatives dairy.
B) Secondary Data-
 The information has collected from various sources viz ;
 Newspaper, journal, books, report etc.
 Secondary data is useful for getting statistical figure for study.Internet, Website etc.

10. GENERAL
INFORMATION:
10
1 Name of selected unit Khandage Dairy Farm
2 Address of selected unit A/p Devgaon, Tal-Ambegaon,
Dist-Pune.
3 Name of owner Avdhut Khushal Khandage
4 Type of dairy barn Open Shed Dairy Barn
5 Area coverd by dairy barn 4.5 R
6 Area coverd by fodder production 0.5 Ha
7 Various fodder cultivated by owner Maize and Elephant Grass
8 Parameters of cattle shed ( shading space , drainage gutter, manager).
a. Shading Space 100×45/ Sq feet
b. Water Tank 2
c. Drainage Gutter 15x10sq Feet
9 Total no of animals 26
a. Milking Cow 15
b. Pregnant Cow 3
c. Dry Cow 5
d. Calf 1
e. Heifer 2
Owner

11. 11. Concentrate used Wheat Bran(Bhusa), Cotton Seed Cake
12. Breed Of Cow- H.F (Holstein Friesian)
13. Daily activities schedule
Morning
5 AM Work Start Bringing Cow, In shed for milking
5.30 AM Giving Concentrated Fodder To Animal Before Miking
6 AM Milking Of Cow.
8.30 AM Transporting The Milk To The Dairy Collection
9:30 AM Cleaning Of Shed
10:30 AM Give Water to Cows.
11 AM Give Fodder to Animal and Chopping Fodder
12:30 - 4 PM Rest the cows in Open Shed
Evening
4 PM Give Fodder to Animals.
5 PM Give Water To Cows.
6 PM Give Concentrated Fodder to Cows Before Milking.
7 PM Milking of Cows.
8.30 PM Transporting The Milk to the Dairy

12. 9 PM Cleaning Of Shed and Milk Cans and Work End.
15 Total Milk Production Per Day Rs.250 Lit/Day
16 Manure Production Per Year 36 Trolly
17 Price Of Manure per Trolly 4000/Trolly
18 Labour Requirement 2
19 Wages Of Labour 15000/Month
20 Dry Fodder Jowar Dry Fodder
21 Detail of veterinary
a. Name Of Doctor : Dr. Ghodekar
b. Number of visit : 3 visit/Month
c. Charges : Rs.500/visit
20 Price of milk / liter : Rs.24/lit
21 Capital investement : Rs. 15 Lakh

13.  Map :

14. Resource Use Management In Dairy Farm :
a)Site of Dairy Farm :
b)Availability of Land-
Area- 4.5 R
Type of soil- Brown soil
Surface – Clean and leveled
Soil is well Structured so it allowed to good drainage.
c)WaterAvailability-
Supply of fresh and clean water is available at dairy farm.
Water is supplied from well.
Required water is 30-40 lit/animal/day
1 Unit Name Khandage Dairy Farm
2 Address A/P-Devgaon
Tal-Ambegaon
Dist- Pune
3 Location It near to the Devgaon Village.

15. d)Capital-
Fixed capital involves shed, machines and equipment.
Variable cost involves payments, rewards, electricity bill, fodder cost, veterinary aids etc.
e)Man Power-
There are 2 workers.
Monthly payment of labour is Rs.7500/labour.
f)Fodder Management-
The green fodder Maize and Elephant Grass.
The concentrate like Cotton seed Cake , Wheat bran ( Bhusa), are purchased.
g)Machinery and Equipment’s-
Sr. no. Particulars Quantity
1 Chaff cutter 1
2 Disel Engine 1
3 Milk Machine 1
4 Sickle 4
5 Buckets 4
6 Milk can 5 (50 Lit)
7 Brooms 2
8 Tub 10
9 Motor pump 1 HP 1
10 Water Tank 1

16. h) Electricity supply-
The electricity Supply for the dairy is the domestic electricity from M.S.E.B
Electricity Charges for Dairy farm: Rs.1,000/month
i) VeterinaryAids-
The private veterinary doctor visits the dairy farm.
He charges a fee is Rs.500
Doctor visits a Dairy Farm 1 times in a week.
Sr. No. Name of Disease Age at first dose Booster dose Subsequent dose
1 Foot and Mouth Disease (FMD) 4 months and above 1 month after first dose Six monthly
2 Hemorrhagic
Septicemia (HS)
6 months and above - Annually in endemic areas.
3 Black Quarter (BQ) 6 months and above - Annually in endemic areas.
4 Brucellosis 4-8 months of age
(Only female calves)
- Once in a lifetime
5 Theileriosis 3 months of age and above - Once in a lifetime. Only
required for crossbred and
exotic cattle.
6 Anthrax 4 months and above - Annually in endemic areas.
7 IBR (Infectious Bovine
Rhinotracheitis)
3 months and above 1 month after first dose Six monthly (vaccine
presently not produced in
India)
8 Rabies (Post bite therapy only) Immediately after suspected bite. 4th day 7,14,28 and 90 (optional)
days after first dose.

17. Human Resource Management
1. Planning: Planning of labors is done as per the worktype.
2. Acquisition: For cutting of sugarcane, collection of Cow dung, they are hiring male labours onmonthly
wage basis.
3. Monitoring: The monitoring is mainly carried out by the owner of the farm or by the family member in
absences of owner.
4. Payments: For hired human labours monthly wages are given. ForRs.7500/Month.
5. Rewards: For hired labours, on festivals they give cloths and sweets. And some time offered bonusas a
reward.
Inventory Management
 Raw Material Inventory-
Raw material inventory include stock of green fodder like sugarcane dry fodder and concentrateslike
cotton seed cake, wheat bran.
 Work-In-Processing Inventory-
Work-In-Process inventory includes milking cows, pregnant cows,labours.
 Finished Product-
Finished product includes milk, manure, calf’s. Milk is main finished product of the dairy farm. Manure is
the by-product of the dairy farm.

18.  Procurement Management :
Raw material needed for milk production and different equipment’s are procured. In general all required
green fodder like sugarcane are purchased. Also dry fodder is purchased. Concentrates like, Cotton Seed
cake, wheat bhussa and cattle feed are purchased from wholesalebasis.
 Production Management :
For increasing the milk production timely feeding, watering and proper care of animals should be taken.All
required green fodder, dry fodder and concentrates are given timely. They have the convectional housing
system. So there is time to time supply of water and feed to cattle’s. 2 times feeding and water supply in a
day.
 Distribution Management :
After the production of milk, it is filled in the cans which have capacity of 40 liters each can. For
maintaining the quality of milk and prevent the contamination, cans are sterilized or cleaned by hot
water.Then it is sold direct to the consumer and also sold to private dairy.
Supply Chain Management :

19.  Health of Cattles
 Milker self-cleanliness
 Cleaning of shed
 Cleaning of Cattles
 Clean milk production
 Cleaning of utensils
 Time between milking is 12 hrs.
 Sanitary & hygienic condition maintained.
 Timely vaccination is done.
 Regular supervision of cattle's is done.
 The equipment's (Buckets & cans) are cleaned properly.
 Feeding concentrate before milking.
Quality Management :

20. Month No. of animal
Sold
No. of animal
Added
Herd
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
Herd Composition:

21. Herd Replacement Cost:
Difference between the Animal Sold & Added = 9 – 6 = 3
Average Herd Size = Herd Composition
12
Average Herd Size = 342/12
= 28.5
Herd Replacement Rate =
Diff. Bet. Animal sold & 𝑎𝑑𝑑𝑒𝑑
Average Herd Size
× 100
3
28.5
× 100 = 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 (57.69%)= Rs. 86,179.62/-

22. Total Annual Fixed Cost :
Sr.no Total Annual Fixed Cost Amount
(Rs.)
% Share of Milking
Cows(Rs.) 57.69%
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
Capital Investment
Fixed Cost Per Lit . = 415043
90000
= Rs 4.61/-
% Share of Milking Cow(57.69) = 2.65

23. Total Annual Variable Cost :
Sr. no Particulars Cost
(Rs.)
% Share of Milking
Cows(57.69)Rs.
1 Total Fodder Cost 10,13,868 5,84,900.44
2 Labor Cost 1,80,000 1,03,842
3 Veterinary Charges 30,000 17,307
4 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
Variable Cost Per Lit. = 13,76,394.8
90,000
= Rs. 15.29/-
% Share of Milking Cows (54%) = 794042.16
90000
= Rs. 8.82/-

24. 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/-.

25. Gross Income :
Sr.No Particulars Quantity Rate Amount(Rs.)
1 Income through selling of milk 90,000 24 21,60,000
2 Income through selling of Cow Dung
(Manure)
36 4000 1,44,000
3 Income through selling of Calf() 6 10,000 60,000
Total 23,64,000
Net Profit = Gross Income – Total Cost perAnnuam
= 23,64,000 – 17,91,437.8
= Rs.5,72,562.2
Net Profit = Rs. 5,72,562.2

26. Cash Flow Statement :
Sr.No. Year 1st Year 2nd Year 3rd Year 4th Year 5th Year
1
Initial Investment 12,90,600 - - - -
2
Total Fixed Cost 4,15,043 4,15,043 4,15,043 4,15,043 4,15,043
3
Total Variable Cost 13,76,394.8 14,45,214.54 15,17,475.26 15,93,349.02 16,73,016.47
4
Total Cost 30,82,037.8 18,60,257.54 19,32,518.26 20,08,392.02 20,88,059.47
5
Gross Income 23,64,000 24,82,200 26,06,310 27,36,625.5 28,73,456.77
6
Net Income
-
7,18,037.8
6,21,942.46 6,73,791.74 7,28,233.48 7,85,397.3

27. Net Present Worth (NPW) :
Year Cost (Rs.) Gross Income
(Rs.)
Net Income
(Rs.)
Discount Factor
(14%)
Net Present
Worth (Rs.)
1
30,82,037.8 23,64,000
-
7,18,037.8
0.87719298 -6,29,857.71
2 18,60,257.54 24,82,200 6,21,942.46 0.76946753 4,78,564.52
3 19,32,518.26 26,06,310 6,73,791.74 0.67497152 4,54,790.23
4 20,08,392.02 27,36,625.5 7,28,233.48 0.59208028 4,31,172.68
5 20,88,059.47 28,73,456.77 7,85,397.3 0.51936866 4,07,910.74
Total 11,42,580.46
 Interpretation = NPW is positive so project is financiallyfeasible.
Net Present Worth = Net Income x Discount Factor

28. Benefit Cost Ratio (BCR) :
Year Cost (Rs.) Gross Income
(Rs.)
Discount Factor
(14%)
Present Worth of
Cost (Rs.)
Present Worth Of
Gross Return
(Rs.)
1 30,82,037.8 23,64,000 0.87719298 27,03,541.92 20,73,684.20
2 18,60,257.54 24,82,200 0.76946753 14,31,407.77 19,09,972.30
3 19,32,518.26 26,06,310 0.67497152 13,04,394.78 17,59,185.02
4 20,08,392.02 27,36,625.5 0.59208028 11,89,129.30 16,20,301.99
5 20,88,059.47 28,73,456.77 0.51936866 10,84,472.64 14,92,383.39
Total 77,12,946.41 88,55,526.9
BENEFIT COST RATIO = Present Worth of gross return / Present Worth of cost
= 88,55,526.9 / 77,12,946.41
= 1.14 %
 Interpretation = BCR is grater than one , project is financiallyfeasible.

29. Internal Rate Of Return (IRR) :
Interpretation : IIR is greater than market interest rate so project is financially feasible.
Year Cost (Rs.) Gross
Income/Retu
rns (Rs.)
Net Income
(Rs.)
Discount
Factor
(14%)
Net Present
Worth (Rs.)
Discount
Factor
(18%)
,
1
30,82,037.8 23,64,000
-
7,18,037.8
0.87719298 -6,29,857.71
0.84745763 -6,08,506.61
2 18,60,257.54 24,82,200 6,21,942.46 0.76946753 4,78,564.52 0.71818443 4,46,669.39
3 19,32,518.26 26,06,310 6,73,791.74 0.67497152 4,54,790.23 0.60863087 4,10,090.45
4 20,08,392.02 27,36,625.5 7,28,233.48 0.59208028 4,31,172.68 0.51578888 3,75,614.73
5 20,88,059.47 28,73,456.77 7,85,397.3 0.51936866 4,07,910.74 0.43710922 3,43,304.40
Total 11,42,580.46 9,67,172.36
IRR= Lower Discount Rate + Diff. Between Two discount rate x {NPW at lower discount / Absolute Diff. Between
NPW at Two Discount Rate}
IRR = 14+4×{11,42,580.46/(11,42,580.46-9,67,172.36)}
IRR = 14+4×11,42,580.46/1,75,408.1
IRR = 14+(4×6.51)
IRR = 14 + 26.04
IRR = 40.04

30. Profitability Index
Year Cost (Rs.) Gross Income
(Rs.)
Net Income (Rs.) Discount Factor
(14%)
Net Present
Worth (Rs.)
1 30,82,037.8 23,64,000 -7,18,037.8 0.87719298 -6,29,857.71
2 18,60,257.54 24,82,200 6,21,942.46 0.76946753 4,78,564.52
3 19,32,518.26 26,06,310 6,73,791.74 0.67497152 4,54,790.23
4 20,08,392.02 27,36,625.5 7,28,233.48 0.59208028 4,31,172.68
5 20,88,059.47 28,73,456.77 7,85,397.3 0.51936866 4,07,910.74
Total 11,42,580.46
Profitability Index = Total NPW of Cash flow / Initial Investment
Profitability Index = 11,42,580.46 / 12,90,600
Profitability Index = 0.88
Interpretation – Profitability Index is 0.88 which indicates 0.88 times Net Profit over Initial
Investment.

31. Payback Period :
Year Cost (Rs.) Gross Income (Rs.) Net Income (Rs.)
1 30,82,037.8 23,64,000 -7,18,037.8
2 18,60,257.54 24,82,200 6,21,942.46
3 19,32,518.26 26,06,310 6,73,791.74
4 20,08,392.02 27,36,625.5 7,28,233.48
5 20,88,059.47 28,73,456.77 7,85,397.3
Total 20,91,327.18
Average Net Income = 20,91,327.18 / 5
= Rs. 4,18,265.43
Payback Period = Initial Investment / Annual Net cash Revenue
= 12,90,600 / 4,18,265.43
= 3.08
= 3.08+1
= 4.08 Years
Interpretation : After 4 years 0 Months and 8 days Dairy Farm Project will cover the initialinvestment.

32. Break Even Point
V Variable Cost Per Unit = Rs.15.29
Fixed Cost = Rs. 4,15,043
Break Even Point = F / P-V
= 4,15,043 / 24 – 15.29
= 4,15,043 / 8.71
= 47,651.32 Lit.
Break Even Point in Rupee =
𝐅𝐢𝐱𝐞𝐝 𝐂𝐨𝐬𝐭
𝟏 −(𝐕𝐚𝐫𝐢𝐚𝐛𝐥𝐞 𝐜𝐨𝐬𝐭 𝐩𝐞𝐫 𝐋𝐢𝐭𝐞𝐫/𝐒𝐞𝐥𝐥𝐢𝐧𝐠𝐩𝐫𝐢𝐜𝐞
= 4,15,043 / 1- (15.29/24)
= 4,15,043/ 0.37
= Rs. 11,21,737.83

33. A) Liquidity Ratio:
Current Ratio =
Current assets
Current liabilities
=
23,64,000
13,76,394.8
= 1.71%
Interpretation: Current assets are more than current liabilities by 1.71 times so ,which indicates positives net present
worth of unit.
b) Profitability Ratio -
Net Profit Margin =
Net Profit
Net Sale
× 100 =
5,72,562.2
23,64,000
× 100 = 24.22%
Interpretation:-Profitability ratio of 24.22 % indicates that profit margin of the business unit under study which is
satisfactory for production business.
c) Activity Ratio / Turnover Ratio
Fixed Assets Turnover Ratio =
Net Sales
Net Fixed Assets
Net Sale = Gross Income – Net Fixed Assets
Net Fixed Assets = Fixed Assets – Depreciation
= 4,15,043 -51,225

34. = 3,63,818
Net Sale = 23,64,000 – 3,63,818
= 20,00,182
Fixed Assets Turn Over Ratio =
20,00,182
3,63,818
= 5.49%
Interpretation- Net Sales are 5.49 times more than Net fixed Assets, therefore it indicates efficient utilization of
fixed assets.
d) Working capital Turnover Ratio
=
Net Sales
Working Capital
=
20,00,182
13,76,394.8
= 1.45%
Interpretation – Net Sales are 1.45 times more than Working Capital, therefore it indicates efficient utilization of
working capital

35. Marketing Management :
Marketing Functions:
1.Storage: Milk can’t be store for long time.it is highly perishable So It Is Directly To Dairy Unit On Time.
2.Transportation- Milk is Transported through Tempo to the dairy farm
3.Weighing-Quantity of milk received is verified at the dairy farm.
4.Quality control-For quality control milk different Machine are been Used i.e Lactoscan , Sterror .To Check
The Accurate Quality of milk And this process Is Done Regularly.
4 P’s Of Marketing:-
1. Product :-The fresh and organic milk is Produce and It sends to dairy.
2. Price:- Milk Is sold at the dairy as dairy rate 24 Rs/lit. Price depends On FAT and SNF
 Payment Of The Milk Are Release 3 Time In The Month.
3. Place: The milk is Directly Sold to Dairy Unit i.e Pirsaheb Dairy.
4. Promotion: No Promotion Activities are Carried Out by Khandage dairy farm

36. Marketing Channel:-
Khandage Dairy Farm
Pirsaheb Dairy
Processor
Retailer
Consumer

37. SWOT Analysis:
37
Strengths:
1. Owner has good knowledge and experience.
2. The Continuous Water Supply is available.
3. Financial position is strong strength of enterprise.
4. The Barn activities is done on time.
Weakness:
1. Unavailability of milk store house in the farm.
2. Concentrate required being purchased.
3. Labours availability problems
4. Irregular electricity supply.
Opportunities:-
1. To increasing the production of milk.
2. To Produce by products.
3. Increase the number of cows.
4. To start the bio-gas project.
Threats:-
1. Viral Diseases.
2. Increasing temperature reduces milk production.
3. Increasing Prices of concentrated Fodder.
4. Increase in number of wild animals in farm area.

38. Problems & Suggestions :
Problems :
1. Labours are not easily available.
2. There is no shed for storage of fodder.
3. Irregular electricity supply.
 Suggestions :
1. Give bonus and Gifts to labours on occasion.
2. Buy an inverter for electricity.
3. Build shed for storage of fodder.

39. Finding :
Particulars Cost
Annual Fixed Cost (Rs) Rs. 4,15,043
Annual Variable Cost (Rs.) Rs. 13,76,394.8
Total Annual Cost of Production (Rs) Rs. 17,91,437.8
Fixed Cost per liter (Rs) Rs. 24
Variable Cost per liter (Rs) Rs. 15.29
Cost of production per liter (Rs) Rs. 19.90
Gross Income (Rs) Rs. 23,64,000
Benefit Cost Ratio 1.14%
Net Present Worth Rs. 11,42,580.46
Internal Rate of Return 40.04
Break Even point (Rs) Rs. 11,21,737.83
Break Even Point (Unit) 47,651.32 Lit.
Profitability Index 0.88
Profitability Ratio 24.22%
Liquidity Ratio 1.71%
Fixed capital Turnover Ratio 5.49%
Working Capital Turnover Ratio 1.45%
Payback Period 4.08 Years

40. Conclusion :
 Dairy farm requires large capital investment in the form of livestock, machinery and buildings,
which will cause large annual fixed costs.
 The NPW is positive hence the Khandage dairy farm project is feasible.
 BCR is greater than 1 so Khandage dairy farm project is financially feasible.
 Payback period for Khandage dairy farm is 4 years.
 IRR is also more than the market interest rate therefore farm project is economically feasible.
 IRR of Khandage dairy farm is 40.04 %

41. Experience Gained :
1)About Resource Management : I got Experience that how to supply water and management of fooder.
2)About Supply Chain Management: I got knowledge about how to purchase fodder in minimum price
3)About Quality Management: I got experience when animals and the workers are clean and hygenic then the quality of
milk also increases.
4)About Human Resource Management: I got experience that the dairy farm is totally depends on labours.
5)About Finacial Management: I got experience that how can use all funds properly to satisfy all requirements.

42. Photo Gallery :

43. Thank You.