Dairy Farming in India – Project Cost at a Glance and Banking Norms

To help you understand the economics of dairy farming, I have prepared a summary of the project cost including essential items of investment to maximize the income from the dairy farm with the latest information to my knowledge. The costs indicated below are for a sample project only.

The breeds of the milch animal considered in this cost estimate are graded Murrah buffaloes, Murrah buffaloes, and cross breed cows with an average yield of 10 liters milk per day per animal (LMPDA) for 300 days of lactation cycle & 100 days of dry period.

Project Cost



Banking norms



Financial Analysis Results

Based on the lactation chart, the cash flow has been prepared and the financial analysis of the project was done which revealed the following:

NPV at 15% D.F. Rs.48686/-
BCR at 15% D.F 1:1.23
IRR 32.50%
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