Sample Project Report: Dairy Farm

Project Report

Project Report: Small Dairy Farm (10 Crossbreed Cows)


1. Executive Summary

This project proposes to establish a small dairy farm with 10 crossbreed HF/Jersey cows producing approximately 100-120 litres of milk daily. The farm will be located in [Village/Town] with sales to local dairy cooperative and direct retail customers.


2. Project Cost

ItemAmount (₹)
Purchase of 10 crossbreed cows5,00,000
Cattle shed construction2,00,000
Milking equipment50,000
Fodder cutter and storage30,000
Water and drainage system40,000
Transportation (mini-van)1,50,000
Working capital (3 months feed, veterinary)1,00,000
Miscellaneous30,000
Total Project Cost₹10,00,000

3. Means of Finance

SourceAmount (₹)
Own contribution (15%)1,50,000
Bank Term Loan (MUDRA Tarun or agri term loan)8,50,000
Total₹10,00,000

4. Revenue Projections

  • Average milk yield: 10-12 litres/cow/day
  • Total daily production: 100-120 litres
  • Selling price: ₹45-55 per litre
  • Monthly revenue: ₹1,35,000 – ₹1,98,000
  • Monthly expenses (feed, veterinary, labour): ₹70,000 – ₹90,000
  • Net monthly profit: ₹65,000 – ₹1,08,000

  • 5. Subsidy Note

  • The NABARD Dairy Entrepreneurship Development Scheme closed on 1 April 2020, so there is no central back-end subsidy for a unit like this
  • Check your state animal husbandry department for current dairy subsidies
  • Ask the bank about Kisan Credit Card limits for working capital

  • 6. Loan Repayment

  • Effective loan after subsidy: ₹3,50,000 – ₹6,00,000
  • EMI: ₹7,000 – ₹12,000/month
  • Repayment period: 5-7 years with 6-month moratorium
  • Key Takeaways

    • 10-cow dairy unit costs approximately ₹10 lakh, financed mainly by a bank term loan
    • Expected monthly revenue of ₹1.35-1.98 lakh from 100-120 litres daily production
    • The old NABARD DEDS subsidy closed in 2020, so check state schemes instead
    • Break-even within 4-6 months of full production
    • Women, SC and ST applicants get the higher PMEGP subsidy band if the unit qualifies as a manufacturing activity

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