ESTABLISHING A DAIRY FARM
Introduction
Dairy farm is a class of agricultural, or an animal husbandry enterprise, for long-term production of milk, usually from dairy cows but also from goats and sheep, which may be either processed on-site or transported to a dairy factory for processing and eventual retail sale. It is a lucrative Business which can fetch big profits due to the increasing and ready market for Dairy products.
Production Capacity
The production capacity is based on the quality and number of animals raised on the farm. However, for 5 Friesian Cows, 100ltrs of milk will be produced as each Dairy Animal is capable of producing 20 Litres of milk per day.
Scale of Investment, Capital Investment
Requirements and
Equipment
This project will be operated locally on small scale, i.e. 5 Friesian Cows operated on 5 acres of land. The Fixed Capital Investment required to start this project is approximately US$ 5,646.
Market Analysis
There is a high demand for dairy products in urban Centres of Uganda especially in schools, hospitals, households, and Dairy processing industry. However, they may also be exported. The best example of a well-established Dairy Farm is Sameer Agric and Livestock Farm, and other farmers spread across the country.
Project Costs
1. Capital Investment in US$
|
Item |
Units |
Qty |
Unit |
Amount $ |
|
Land |
Acres |
5 |
10,000 |
50,000 |
|
Cows |
No. |
5 |
600 |
3,000 |
|
Field Van |
No. |
1 |
6,000 |
6,000 |
|
Milk Cans |
No. |
5 |
50 |
250 |
|
Milk Filters |
No. |
2 |
10 |
20 |
|
Clamps |
No. |
2 |
20 |
40 |
|
Barns & Shelters |
No. |
2 |
500 |
1,000 |
|
Spraying Pump |
No. |
1 |
25 |
25 |
|
Injectors |
No. |
2 |
8 |
15 |
|
Spades & Pangas |
No. |
4 |
2 |
6 |
|
Weighing Scale |
No. |
1 |
100 |
100 |
|
Water Basins |
No. |
5 |
10 |
50 |
|
Harmer |
No. |
1 |
4 |
4 |
|
Wheel Barrows |
No. |
2 |
30 |
60 |
|
Hand Hoe & Rake |
No. |
2 |
2 |
4 |
|
Thermometer |
No. |
1 |
10 |
10 |
|
Milk Cups |
No. |
5 |
5 |
25 |
|
Water Tanks |
No. |
2 |
100 |
200 |
|
Feeding Troughs |
No. |
5 |
10 |
50 |
|
Total Amount |
60,859 |
2. Operating Costs in USS
|
Item |
units |
Unit costs |
Qty/day |
Prod cost/day |
Prod cost/month |
Prod cost/year |
|
Direct costs |
|
|
|
|
|
|
|
Feeds |
Kgs |
0.75 |
500 |
375 |
11,250 |
135,000 |
|
Drugs |
M/gs |
20 |
5 |
100 |
3,000 |
36,000 |
|
Calcium/ |
Kgs |
0.5 |
10 |
5 |
150 |
1,800 |
|
Water |
Litres |
0.0025 |
600 |
1.5 |
45 |
540 |
|
Sub total |
482 |
14,445 |
173,340 |
|||
|
General Costs (Over heads) |
||||||
|
Labour |
300 |
3,600 |
||||
|
Repair & Maintenance |
200 |
2,400 |
||||
|
Ropes |
10 |
120 |
||||
|
Fuel |
400 |
4,800 |
||||
|
Depreciation(Asset write off) Expenses |
163.73 |
1,965 |
||||
|
Sub - total |
1,074 |
12,885 |
||||
|
Total Operating Costs |
15,519 |
186,225 |
3. Project Product Costs & Price Structure in US$
|
Item |
Qty/day |
Qty/yr |
Unit |
Prod |
Unit |
T/rev |
|
Milk |
3000 |
936,000 |
0.2 |
186,225 |
0.4 |
374,400 |
4. Profitability Analysis in US$
|
Item |
Per |
Per |
Per Year |
|
Revenue |
1,200 |
31,200 |
374,400 |
|
Less: Production & Operating Costs |
482 |
15,519 |
186,225 |
|
Profit |
719 |
15,681 |
188,175 |