Detailed Project Report on dairy farming (jersey cows) to produce milk

Today, India is 'The Oyster' of the global dairy industry. It offers opportunities galore to entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest growing markets for milk and milk products. A bagful of 'pearls' awaits the international dairy processor in India. The Indian dairy industry is rapidly growing, trying to keep pace with the galloping progress around the world. As he expands his overseas operations to India many profitable options await him. He may transfer technology, sign joint ventures or use India as a sourcing center for regional exports. The liberalization of the Indian economy beckons to MNC's and foreign investors alike.

India’s dairy sector is expected to triple its production in the next 10 years in view of expanding potential for export to Europe and the West. Moreover with WTO regulations expected to come into force in coming years all the developed countries which are among big exporters today would have to withdraw the support and subsidy to their domestic milk products sector. Also India today is the lowest cost producer of per litre of milk in the world, at 27 cents, compared with the U.S' 63 cents, and Japan’s $2.8 dollars. Also to take advantage of this lowest cost of milk production and increasing production in the country multinational companies are planning to expand their activities here. Some of these milk producers have already obtained quality standard certificates from the authorities. This will help them in marketing their products in foreign countries in processed form.

The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs.43,500 crores by year 2005. This growth is going to come from the greater emphasis on the processed foods sector and also by increase in the conversion of milk into milk products. By 2005, the value of Indian dairy produce is expected to be Rs 10,00,000 million. Presently the market is valued at around Rs7,00,000mn

Background

India with 134mn cows and 125mn buffaloes, has the largest population of cattle in the world. Total cattle population in the country as on October'00 stood at 313mn. More than fifty percent of the buffaloes and twenty percent of the cattle in the world are found in India and most of these are milch cows and milch buffaloes.

Indian dairy sector contributes the large share in agricultural gross domestic products. Presently there are around 70,000 village dairy cooperatives across the country. The co-operative societies are federated into 170 district milk producers unions, which is turn has 22-state cooperative dairy federation. Milk production gives employment to more than 72mn dairy farmers. In terms of total production, India is the leading producer of milk in the world followed by USA. The milk production in 1999-00 is estimated at 78mn MT as compared to 74.5mn MT in the previous year. This production is expected to increase to 81mn MT by 2000-01. Of this total produce of 78mn cows' milk constitute 36mn MT while rest is from other cattle.

While world milk production declined by 2 per cent in the last three years, according to FAO estimates, Indian production has increased by 4 per cent. The milk production in India accounts for more than 13% of the total world output and 57% of total Asia's production. The top five milk producing nations in the world are India ,USA, Russia, Germany and France.

Although milk production has grown at a fast pace during the last three decades (courtesy: Operation Flood), milk yield per animal is very low. The main reasons for the low yield are

•     Lack of use of scientific practices in milching.
•     Inadequate availability of fodder in all seasons.
•     Unavailability of veterinary health services.

                   Milk Yield comparison:

   Country                                                              Milk Yield (Kgs per year)

    USA                                                                              7002
    UK                                                                                 5417
    Canada                                                                        5348
    New Zealand                                                              2976
    Pakistan                                                                      1052
    India                                                                               795
  World (Average)                                                          2021

Source: Export prospects for agro-based industries, World Trade Centre, Mumbai.

MARKET SURVEY CUM DETAILED TECHNO
ECONOMIC FEASIBILITY REPORT covers
 

1. Introduction
2. Uses and Applications
3. Properties
4. Market Survey with future aspects
5. Present Manufacturers
6. Detailed Process of Manufacture
7. Formulations
8. B.I.S. Specifications
9. Process Flow Sheet Diagram, Plant Layout,
10. Cost Economics with Profitability Analysis
11. Capacity
12. Land & Building Requirements with Rates
13. List & Details of Plant and Machinery with their Costs
14. Raw Materials Details/List and Costs
15. Power & Water Requirements
16. Labour/Staff Requirements
17. Utilities and Overheads
18. Total Capital Investment
19. Turnover
20. Cost of Production
21. Break Even Point
22. Profitability
23. Land Man Ratio
24. Suppliers of Plant & Machineries and Raw Materials
25. Cash Flow Statement
26. Repayment Schedule
27. Interest Chart
28. Depreciation Chart
29. Projected Balance Sheet for 5 Years etc

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