DAIRY FARMING (BUFFALOES)

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The importance of food science and technology for improving the human beings quality of life is highlighted by the rising search for healthy food, with high nutritional value, available and accessible to people. With this, the investigation of alternative food sources has been the subject of extensive researches in the last decades. Buffalo’s milk is promising in this context, since it has a superior nutritional value due to the high levels of fat, protein and minerals (specially calcium and phosphorus), that can be consumed in natura and may be used as raw material for producing diary products, varying in accordance to each regional culture1, 2 savu. Moreover, buffalos are extremely rustic and demonstrate a high adaptation capacity, being able to survive in diverse environments with huge weather variations, relief and vegetation, so growing them is very economically feasible. More than Five percent of the world’s milk comes from Buffaloes. Buffaloes milk is used in much the same way as cow’s milk. It is high in fats and total solid, which gives it a rich flavour. Many people prefer it to cow’s milk and are willing to pay more for it. In India, where in Mumbai area alone an estimated 10,000 new born calves starved to death each year through lack of milk.

More  than  Five  percent of the  world’s  milk  comes  from Buffalloes. Buffalloes milk is used in much the same way as cow’s milk.  It is high in fats and total solid, which gives it a  rich flavour.  Many people prefer it to cow’s milk and are willing  to pay  more  for  it.   In India, where in  Mumbai  area  alone  an estimated  10,000  new  born calves starved to  death  each  year through  lack  of milk.  The demand for Buffallo  milk  in  India (About  60%  of  the milk consumed over 80% in  some  states)  is reflected in the prices paid for a litre of milk; about 130 paisa for  cow’s milk compared with about 200 paisa for  buffallo  milk Twelve  of  the  Eighteen  major  breeds  of  buffallo  are  kept primarily  for  milk production (although male may  be  used  for traction  & all animals are eventually used for meat.). Millions of small and marginal farmers in dairying who own two to three animals and produce an average of 5-7 litres comprise a critical portion of India’s dairy industry. Livestock development in general and dairy development activities in particular are key components of pro-poor development strategies because livestock distribution is much more equitable than land distribution. Thus, changes in the dairying environment have important implications for the smallholder farmers and for poverty reduction.  The buffering capacity, pH and viscosity of buffalo milk are higher than those of cow milk. The fermentation and/or ripening process of buffalo milk is generally slower. Butter made from buffalo milk is harder than that of cow milk due to its higher levels of saturated fatty acids. The  main milk breeds of India & Pakistan are the murrah,  Nile/Ravi,Surti, Mehsana, Nagpure, & Jafarabad.

Each ‘EIRI’ MARKET OVERVIEW CUM DETAILED TECHNO ECONOMIC FEASIBILITY REPORT (Complete Report) tentatively covers
•    Introduction
•    Properties
•    BIS (Bureau of Indian Standard) Specifications & Requirements
•    Uses & Applications
•    Present Indian Market Overview/Position
•    Export & Import Statistics Data
•    Names and Addresses of Existing Units (Present Manufactures)
•    List of Plant & Machineries
•    Miscellaneous Items and Accessories
•    Instruments, Laboratory Equipments and Accessories
•    Electrification, Electric Load and Water
•    Maintenance, Suppliers/Manufacturers of Plant and Machineries
•    Dairy farming method
•    List of Raw Materials
•    Availability of Raw Materials
•    Requirement of Staff & Labour
•    Personnel Management
•    Skilled & Unskilled Labour
•    Requirement of Land Area
•    Built up Area
•    Plant Layout
Along with financial details as under:
•    Summary of Capital Cost of Project
•    Land & Side Development Exp.
•    Buildings
•    Plant & Machineries
•    Misc. Fixed Assets
•    Technical Know how Fees & Exp.
•    Preliminary Expenses
•    Pre-operative Expenses
•    Provision for Contingencies
Below mentioned financial statements (Annexure) will be  for 5 to 10 Years
•    Annexure:: Cost of Project and Means of Finance
•    Annexure:: Output, Profitability and Cash Flow Chart
•    Annexure:: Assessment of Working Capital requirements
•    Annexure:: Sources of Finance
•    Annexure:: Balance Sheets
•    Annexure:: Break-Even Analysis and profitability analysis.
•    Annexure:: Quantitative Details-Output/Sales/Stocks
•    Annexure:: Sales Realisation
•    Annexure:: Raw Material Cost
•    Annexure:: Other Raw Material Cost
•    Annexure:: Packing Material Cost
•    Annexure:: Consumables, Store etc.,
•    Annexure:: Employees Expenses
•    Annexure:: Fuel Expenses
•    Annexure:: Power/Electricity Expenses
•    Annexure:: Repairs & Maintenance Exp.
•    Annexure:: Other Mfg. Expenses
•    Annexure:: Administration Expenses
•    Annexure:: Selling Expenses
•    Annexure:: Depreciation Charges – Profitability
•    Annexure:: Depreciation Charges
•    Annexure:: Interest and Repayment – Term Loans
•    Annexure:: Tax on Profit
•    Annexure:: Assumptions for Profitability workings
•    Annexure:: Assessment of Working Capital

Additional information

Plant Capacity

6250 Ltrs./Day

Land & Building

(Area 15000 sq.mt.) Rs. 9.60 Cr.

Plant & Machinery

Rs. 2.02 Cr.

W.C. for 1 Months

Rs. 45 Lacs

Total Capital Investment

Rs. 14.05 Cr.

Rate of Return

14%

Break Even Point

65%