Dairy farming activities

Dairy Farming Activities
Science Centres: Freshwater and Estuaries, TeKūwaha
Dairy farms operate to maximise milk production.

Milk production
Dairy farms are either seasonal (spring-autumn) or town supply (year round) operations. Expansion of the dairy
industry over the last 20-30 years is largely due to the rapid conversion of dry stock and forestry land to dairying as
well as the intensification of farming methods that has led to an increase in stocking rates (cows per hectare).

During the milking season, cows are usually milked twice a day. During milking, animal waste (dairy effluent) that
accumulates in the milking shed and yard is washed down with high pressure hoses and collected in oxidation ponds.
This effluent may also contain other elements, such as spilled milk, soil, animal feed, detergents, and other chemicals
(i.e., residue from animal health products such as drenches and antibiotics). Dairy effluent contains organic and
inorganic nutrients (especially nitrogen and phosphorous) and contaminants (e.g., pathogens and sediment ), which
all have the potential to impact on water quality and mahingakai if not disposed of correctly.
Dairy effluent cannot be discharged to water directly and needs to be disposed of either by:
1. Settling effluent in an oxidation pond, then spreading onto land.

2. Irrigating dairy shed effluent directly onto land.

Soil and pasture management
The greatest on-farm contribution of nutrients and pathogens into waterways comes from animal faecal matter and
urine. Animals with open access to waterways or that cross streams are especially likely to increase nutrients and
pathogens into a stream. During times of heavy rain, waste can wash into waterways via surface runoff from
paddocks or tracks and roads. Waterways become especially prone to increased nutrients from faecal matter and
fertilisers when there are no fences or riparian vegetation, which exclude stock from waterways and absorb excess
nutrients in the runoff.
Increasing the number of cows per hectare (overstocking) to maximise production may have detrimental effects on
soil structure (compaction, pugging, and trampling damage), drainage, and productivity, especially when soils are
prone to flooding and erosion around waterways, which increases runoff of sediment and associated nutrients. When
applying fertilisers, a nutrient budget may be used to calculate the impact of nutrient use and flows within a farm (as
fertiliser, effluent, supplements, or transfer by animals). The type of fertilisers used and the grasses and crops grown
will also influence overall productivity and environmental impacts.
The application of herbicides to control weeds (ragwort, thistles, and gorse) is common on all farms (dairy, dry stock,
or arable). Excess spray residue accumulates and binds to sediment particles which may end up in waterways via

runoff or by directly spraying around waterways. The toxicity of these chemical contaminants depends on the type
and quantity that are applied.

Water take (irrigation and abstraction)
Some farms rely on water take or abstraction for irrigation of pasture and crops. Irrigation systems may be permanent
or semi-permanent, including pop-up systems, fixed above ground, drip and micro systems, and pivot or laterally
moving machines.
Irrigated water should be applied to match the needs of the pasture and crops grown, otherwise any excess will be
lost to groundwater. Irrigation may increase the risk of fertiliser runoff or nutrient leaching which can lead to the
subsequent contamination of stream water, in particular nitrate leaching. However, the most damaging effect
of irrigation can be taking too much water and not leaving enough for mahingakai habitat. Pesticides and herbicides
in waterways are often also associated with cropping or horticultural activity.

Farm management and animal health
Keeping good records enables well-informed decisions to be made during the year. Time of calving, shearing,
addressing and preventing animal health issues, proper hygiene around sheds, waste disposal, and disease control
all contribute to and reduce environmental risks.

'Hot spots' that are likely to contain concentrations of chemicals and effluent, and therefore require careful
consideration/control measures, include:

Chemical spray storage sheds.
Chemical spray equipment wash down areas.
Bulk fuel storage.
Uncontrolled dumping or land filling of chemical containers or other waste products.
Offal pits for animal carcasses and farm waste.
Silage pits.
Animals crossing streams.
Runoff of faecal matter from tracks and roads into streams.
Dipping and drenching yards.

DAIRY FARMING FOR SMALL FARMER

1. Why do Dairy Farming ?

1.1 Dairying is an important source of subsidiary income to small/marginal
farmers and agricultural labourers. The manure from animals provides a good
source of organic matter for improving soil fertility and crop yields. The gober
gas from the dung is used as fuel for domestic purposes as also for running
engines for drawing water from well. The surplus fodder and agricultural by-
products are gainfully utilised for feeding the animals. Almost all draught
power for farm operations and transportation is supplied by bullocks. Since
agriculture is mostly seasonal, there is a possibility of finding employment
throughout the year for many persons through dairy farming. Thus, dairy also
provides employment throughout the year. The main beneficiaries of dairy
programmes are small/marginal farmers and landless labourers. A farmer can
earn a gross surplus of about Rs. 12,000 per year from a unit consisting of 2
milking buffaloes. The capital investment required for purchase of 2 buffaloes
is Rs. 18,223/-. Even after paying a sum of Rs. 4294/- per annum towards
repayment of the loan and interest the farmer can earn a net surplus of Rs.
6000 - 9000/- approximately per year. (For details see model scheme
enclosed). Even more profits can be earned depending upon the breed of
animal, managerial skills and marketing potential.

1.2 According to World Bank estimates about 75 per cent of India's 940 million
people are in 5.87 million villages, cultivating over 145 million hectares of
cropland. Average farm size is about 1.66 hectares. Among 70 million rural
households, 42 per cent operate upto 2 hectares and 37 per cent are landless
households. These landless and small farmers have in their possession 53
per cent of the animals and produce 51 per cent of the milk. Thus,
small/marginal farmers and land less agricultural labourers play a very
important role in milk production of the country. Dairy farming can also be
taken up as a main occupation around big urban centres where the demand
for milk is high.

2. Scope for Dairy Farming and its National Importance.

2.1 The total milk production in the country for the year 2001-02 was
estimated at 84.6 million metric tonnes. At this production, the per capita
availability was to be 226 grams per day against the minimum requirement of
250 grams per day as recommended by ICMR. Thus, there is a tremendous
scope/potential for increasing the milk production. The population of breeding
cows and buffaloes in milk over 3 years of age was 62.6 million and 42.4
million, respectively (1992 census)

2.2 Central and State Governments are giving considerable financial
assistance for creating infrastructure facilities for milk production. The nineth
plan outlay on Animal Husbandry and Dairying was Rs. 2345 crores.

3. Financial Assistance Available from Banks/NABARD for Dairy
Farming.

3.1 NABARD is an apex institution for all matters relating to policy, planning
and operation in the field of agricultural credit. It serves as an apex refinancing
agency for the institutions providing investment and production credit. It
promotes development through formulation and appraisal of projects through
a well organised Technical Services Department at the Head Office and
Technical Cells at each of the Regional Offices.

3.2 Loan from banks with refinance facility from NABARD is available for
starting dairy farming. For obtaining bank loan, the farmers should apply to the
nearest branch of a commercial or co-operative Bank in their area in the
prescribed application form which is available in the branches of financing
banks. The Technical Officer attached to or the Manager of the bank can
help/give guidance to the farmers in preparing the project report to obtain
bank loan.

3.3 For dairy schemes with very large outlays, detailed reports will have to be
prepared. The items of finance would include capital asset items such as
purchase of milch animals, construction of sheds, purchase of equipments
etc. The feeding cost during the initial period of one/two months is capitalised
and given as term loan. Facilities such as cost of land development, fencing,
digging of well, commissioning of diesel engine/pumpset, electricity
connections, essential servants' quarters, godown, transport vehicle, milk
processing facilities etc. can be considered for loan. Cost of land is not
considered for loan. However, if land is purchased for setting up a dairy farm,
its cost can be treated as party's margin upto 10% of the total cost of project.

4. Scheme Formulation for bank loan.

4.1 A Scheme can be prepared by a beneficiary after consulting local
technical persons of State animal husbandry department, DRDA, SLPP etc.,
dairy co-operative society/union/federation/commercial dairy farmers. If
possible, the beneficiaries should also visit progressive dairy farmers and
government/military/agricultural university dairy farm in the vicinity and
discuss the profitability of dairy farming. A good practical training and

experience in dairy farming will be highly desirable. The dairy co-operative
societies established in the villages as a result of efforts by the Dairy
Development Department of State Government and National Dairy
Development Board would provide all supporting facilities particularly
marketing of fluid milk. Nearness of dairy farm to such a society, veterinary aid
centre, artificial insemination centre should be ensured. There is a good
demand for milk, if the dairy farm is located near urban centre.

4.2 The scheme should include information on land, livestock markets,
availability of water, feeds, fodders, veterinary aid, breeding facilities,
marketing aspects, training facilities, experience of the farmer and the type of
assistance available from State Government, dairy society/union/federation.

4.3 The scheme should also include information on the number of and types
of animals to be purchased, their breeds, production performance, cost and
other relevant input and output costs with their description. Based on this, the
total cost of the project, margin money to be provided by the beneficiary,
requirement of bank loan, estimated annual expenditure, income, profit and
loss statement, repayment period, etc. can be worked out and shown in the
Project report. A format developed for formulation of dairy development
schemes is given as Annexure I.

5. Scrutiny of Schemes by banks.

The scheme so formulated should be submitted to the nearest branch of bank.
The bank's officers can assist in preparation of the scheme for filling in the
prescribed application form. The bank will then examine the scheme for its
technical feasibility and economic viability.

(A) Technical Feasibility - this would briefly include -

1. Nearness of the selected area to veterinary, breeding and milk
collection centre and the financing bank's branch.
2. Availability of good quality animals in nearby livestock market. The
distribution of important breeds of cattle and buffaloes
are given in Annexure II. The reproductive and productive
performance of cattle and buffalo breeds is given in AnnexureIII.
3. Availability of training facilities.
4. Availability of good grazing ground/lands.
5. Green/dry fodder, concentrate feed, medicines etc.

6. Availability of veterinary aid/breeding centres and milk marketing
facilities near the scheme area.

(B) Economic Viability - this would briefly include -

1. Unit Cost - The average unit cost of dairy animals for some of the
States is given in Annexure IV.
2. Input cost for feeds and fodders, veterinary aid, breeding of animals,
insurance, labour and other overheads.
3. Output costs i.e. sale price of milk, manure, gunny bags, male/female
calves, other miscellaneous items etc.
4. Income-expenditure statement and annual gross surplus.
5. Cash flow analysis.
6. Repayment schedule (i.e. repayment of principal loan amount and
interest).

Other documents such as loan application forms, security aspects, margin
money requirements etc. are also examined. A field visit to the scheme area is
undertaken for conducting a techno-economic feasibility study for appraisal of
the scheme. Model economics for a two animal unit and mini dairy unit with
ten buffaloes are given in Annexure V and VI.

6. Sanction of Bank Loan and its Disbursement.

After ensuring technical feasibility and economic viability, the scheme is
sanctioned by the bank. The loan is disbursed in kind in 2 to 3 stages against
creation of specific assets such as construction of sheds, purchase of
equipments and machinery, purchase of animals and recurring cost on
purchase of feeds/fodders for the initial period of one/two months. The end
use of the fund is verified and constant follow-up is done by the bank.

7. Lending terms - General

7.1 Unit Cost

Each Regional Office (RO) of NABARD has constituted a State Level Unit
Cost Committee under the Chairmanship of RO-in-charges and with the
members from developmental agencies, commercial banks and cooperative
banks to review the unit cost of various investments once in six months. The
same is circulated among the banks for their guidance. These costs are only

indicative in nature and banks are free to finance any amount depending upon
the availability of assets.

7.2 Margin Money

NABARD had defined farmers into three different categories and where
subsidy is not available the minimum down payment as shown below is
collected from the beneficiaries.

Sr.No. Category of Farmer Level of predevelopment Beneficiary's
return to resources Contribution
(a) Small Farmers Upto Rs.11000 5%
(b) Medium Farmers Rs.11001 - Rs.19250 10%
(c) Large Farmers Above Rs. 19251 15%`

7.3 Interest Rate

As per the RBI guidelines the present rate of interest to the ultimate
beneficiary financed by various agencies are as under :
No. Loan Amount CB's and RRB's SLDB/SCB
(a) Upto and inclusive of 12% As determined by
Rs.25000 SCB/SLDB subject to
minimum 12%
(b) Over Rs. 25000 and 13.5% -do-
uptoRs. 2 lakhs
(c) Over Rs. 2.0 lakhs As determined by the -do-
banks

7.4 Security

Security will be as per NABARD/RBI guidelines issued from time to time.

7.5 Repayment Period of Loan

Repayment period depends upon the gross surplus in the scheme. The loans
will be repaid in suitable monthly/quarterly instalments usually within a period
of about 5 years. In case of commercial schemes it may be extended upto 6-7
years depending on cash flow analysis.

7.6 Insurance

The animals may be insured annually or on long term master policy, where
ever it is applicable. The present rate of insurance premium for scheme and
non scheme animals are 2.25% and 4.0% respectively.

8. Package of Common Management Practices Recommended for Dairy

Farmers
Modern and well established scientific principles, practices and skills should
be used to obtain maximum economic benefits from dairy farming. Some of
the major norms and recommended practices are as follows :

I. Housing:
1. Construct shed on dry, properly raised ground.
2. Avoid water-logging, marshy and heavy rainfall areas.
3. The walls of the sheds should be 1.5 to 2 meters high.
4. The walls should be plastered to make them damp proof.
5. The roof should be 3-4 metres high.
6. The cattle shed should be well ventilated.
7. The floor should be pucca/hard, even non-slippery impervious, well
sloped (3 cm per metre) and properly drained to
remain dry and clean.
8. Provide 0.25 metre broad, pucca drain at the rear of the standing
space.
9. A standing space of 2 x 1.05 metre for each animal is needed.
10. The manger space should be 1.05 metre with front height of 0.5 metre
and depth of 0.25 metre.
11. The corners in mangers, troughs, drains and walls should be rounded
for easy cleaning.
12. Provide 5-10 sq. metre loaf space for each animal.
13. Provide proper shade and cool drinking water in summer.
14. In winter keep animals indoor during night and rain.
15. Provide individual bedding daily.
16. Maintain sanitary condition around shed.
17. Control external parasites (ticks, flies etc.) by spraying the pens, sheds
with Malathion or Copper sulphate solution.
18. Drain urine into collection pits and then to the field through irrigation
channels.

19. Dispose of dung and urine properly. A gobar gas plant will be an ideal
way. Where gobar gas plant is not constructed,
convert the dung alongwith bedding material and other farm
wastes into compost.
20. Give adequate space for the animals. (The housing space requirement
of crossbred cattle in various
categories/age-groups is given in Annexure-VII).

II. Selection of Animal :
1. Immediately after release of the loan purchase the stock from a reliable
breeder or from nearest livestock market.
2. Select healthy, high yielding animals with the help of bank's technical
officer, veterinary/animal husbandry officer of State
government/ ZillaParishad, etc.
3. Purchase freshly calved animals in their second/third lactation.
4. Before purchasing, ascertain actual milk yield by milking the animal
three times consecutively.
5. Identify the newly purchased animal by giving suitable identification
mark (ear tagging or tattooing).
6. Vaccinate the newly purchased animal against disease.
7. Keep the newly purchased animal under observation for a period of
about two weeks and then mix with the general
herd.
8. Purchase a minimum economical unit of two milch animals.
9. Purchase the second animal/second batch after 5-6 months from the
purchase of first animal.
10. As buffaloes are seasonal calvers purchase them during July to
February.
11. As far as possible purchase the second animal when the first animal is
in its late stage of lactation and is about to
become dry, thereby maintaining continuity in milk production vis-a-
vis income. This will ensure availability of adequate
funds for maintaining the dry animals.
12. Follow judicious culling and replacement of animals in a herd.
13. Cull the old animals after 6-7 lactations.

III. Feeding of Milch Animals
1. Feed the animals with best feeds and fodders. (Feeding schedule is
given in Anneuxre VIII).
2. Give adequate green fodder in the ration.
3. As far as possible, grow green fodder on your land wherever available.

4. Cut the fodder at the right stage of their growth.
5. Chaff roughage before feeding.
6. Crush the grains and concentrates.
7. The oil cakes should be flaky and crumbly.
8. Moisten the concentrate mixture before feeding.
9. Provide adequate vitamins and minerals. Provide salt licks besides
addition of mineral mixture to the concentrate ration.
10. Provide adequate and clean water.
11. Give adequate exercise to the animals. Buffaloes should be taken for
wallowing daily. In case this is not possible sprinkle
sufficient water more particularly during summer months.
12. To estimate the daily feed requirement remember that the animals
consume about 2.5 to 3.0 percent of their body weight on dry
matter basis.

IV. Milking of Animals
1. Milk the animals two to three times a day.
2. Milk at fixed times.
3. Milk in one sitting within eight minutes.
4. As far as possible, milking should be done by the same person
regularly.
5. Milk the animal in a clean place.
6. Wash the udder and teat with antiseptic lotions/luke-warm water and
dry before milking.
7. Milker should be free from any contagious diseases and should wash
his hands with antiseptic lotion before each milking.
8. Milking should be done with full hands, quickly and completely followed
by stripping.
9. Sick cows/buffaloes should be milked at the end to prevent spread of
infection.

V. Protection against Diseases

1. Be on the alert for signs of illness such as reduced feed intake, fever,
abnormal discharge or unusual behaviour.
2. Consult the nearest veterinary aid centre for help if illness is
suspected.
3. Protect the animals against common diseases.
4. In case of outbreak of contagious disease, immediately segregate the
sick, in-contact and the healthy animals and take necessary

disease control measures. (Vaccination schedule is given in
Annexure IX).
5. Conduct periodic tests for Brucellosis, Tuberculosis, Johne's disease,
Mastitis etc.
6. Deworm the animals regularly.
7. Examine the faeces of adult animals to detect eggs of internal
parasites and treat the animals with suitable drugs.
8. Wash the animals from time to time to promote sanitation.

VI. Breeding Care

1. Observe the animal closely and keep specific record of its coming in
heat, duration of heat, insemination, conception and calving.
2. Breed the animals in time.
3. The onset of oestrus will be within 60 to 80 days after calving.
4. Timely breeding will help achieving conception within 2 to 3 months of
calving.
5. Breed the animals when it is in peak heat period (i.e. 12 to 24 hours of
heat).
6. Use high quality semen preferably frozen semen of proven sires/bulls.

VII. Care during Pregnancy

Give special attention to pregnant cows two months before calving by
providing adequate space, feed, water etc.

VIII. Marketing of Milk

1. Marketing milk immediately after it is drawn keeping the time between
production and marketing of the milk to the minimum.
2. Use clean utensils and handle milk in hygienic way.
3. Wash milk pails/cans/utensils thoroughly with detergent and finally
rinse with chloride solution.
4. Avoid too much agitation of milk during transit.
5. Transport the milk during cool hours of the day.

IX. Care of Calves

1. Take care of new born calf.
2. Treat/disinfect the navel cord with tincutre of iodine as soon as it is cut
with a sharp knife.

3. Feed colostrum to calf.
4. Assist the calf to suckle if it is too weak to suckle on its own within 30
minutes of calving.
5. In case it is desired to wean the calf immediately after birth, then feed
the colostrum in bucket.
6. Keep the calf separately from birth till two months of age in a dry clean
and well ventilated place.
7. Protect the calves against extreme weather conditions, particularly
during the first two months.
8. Group the calves according to their size.
9. Vaccinate calves.
10. Dehorn the calves around 4 to 5 days of age for easy management
when they grow.
11. Dispose of extra calves not to be reared/maintained for any specific
purpose as early as possible, particularly the male calves.
12. The female calves should be properly reared.

Annexure I

FORMAT FOR SUBMISSION OF SCHEMES

1. GENERAL

i) Name of the sponsoring bank
ii) Address of the controlling ofice sponsoring the scheme
iii) Nature and objectives of the proposed scheme
iv) Details of proposed investments
S.No Investment No. Of units

(a)
(b)
(c)
v) Specification of the scheme area (Name of District & Block/s)

S.No. District Block

vi) Names of the financing bank's branches:

S.No. Name of the Branch/District

(a)
(b)
(c)
vii) Status of beneficiary/ies:
(indidivual/Partnership/Company/Corporation/Co-operative Society /
Others)
viii) In case of area based schemes, coverage of borrowers in weaker
sections (landless labourers, small, medium & large farmers as per
NABARD's norms, SC/ST, etc.)
ix) Details of borrowers profile (Not applicable to area based schemes)
(a) Capability
(b) Experience
(c) Financial Soundness
(d) Technical/Other special Qualificaitons
(e) Technical/Managerial Staff and adequacy thereof

2. TECHNICAL ASPECTS :

a) Location, Land and Land Development :
i) Location details of the project
ii) Total Area of land and its cost
iii) Site map
iv) Particulars of land development, fencing, gates, etc.

b) Civil Structures :
Detailed cost estimates along with measurements of vaious civil structure
- Sheds
- Store room
- Milk room
- Quarters, etc.

c) Equipment/Plant and Machinery :

i) Chaff cutter
ii) Silo pit
iii) Milking machine
iv) Feed grinder and mixer

v) Milking pails/milk cans
vi) Biogas plant
vii) Bulk coolers
viii)Equipment for manufacture of products
ix) Truck/van (price quotations for the above equipments)

d) Housing :

i) Type of housing
ii) Area requirement
- Adults
- Heifers (1-3 years)
- Calves (less than 1 year)

e) Animals :

i) Proposed species
ii) Proposed breed
iii) Source of purchase
iv) Place of purchase
v) Distance (kms.)
vi) Cost of animal (Rs.)

f) Production parameters :

i) Order of lactation
ii) Milk yield (ltrs. per day)
iii) Lactation days
iv) Dry days
v) Conception rate
vi) Mortality(%)
- Adults
- Young stock

g) Herd projection (with all assumptions) :

h) Feeding :

i) Source of fodder and feed - Green fodder
- Dry fodder
- Concentrates

ii) Fodder crop rotations
- Kharif
- Rabi
- Summer
iii) Fodder cultivation expenses
iv) Requirement and costs :

Quantity required (kg./day)
Cost(Rs. / Kg) Lactation Dry Period Young Stock
Green Fodder
Dry Fodder
Concentrates

i) Breeding Facilities :

i) Source :
ii) Location :
iii) Distance (km.) :
iv) Availability of semen :
v) Availability of staff :
vi) Expenditure per animal/year

j) Veterinary Aid :

i) Source
ii) Location
iii) Distance (km.)
iv) Availability of staff
v) Types of facilities available
vi) If own arrangements are made -
a) Employed a veterinary doctor/stockman/consultant
b) Periodicity of visit
c) Amount paid/visit (Rs.)
vii)Expenditure per animal per year (Rs.)

k) Electricity :

i) Source
ii) Approval from SEB
iii) Connected load

iv) Problems of power failure
v) Arrangements for generator

l) Water :

i) Source
ii) Quality of water
iii) Abvailability of sufficient quantity for drinking, cleaning nad fodder
production
iv) If investment has to be made, type of strucutre, design and cost

m) Marketing of milk :

i) Source of sales
ii) Place of disposal
iii) Distance (km.)
iv) Pricerealised - (Rs. per liter of milk)
v) Basis of payment
vi) Periodicity of payment

n) Marketing of other products :

i) Animal - age
- place of sale
- price expected
ii) Manure - Qty./animal
Price/unit (Rs.)
iii) Empty gunny bags
- Number
- Cost/bag (Rs.)

o) Beneficiary's experience :

p) Comments on technical feasibility :

q) Government restrictions, if any :

3. FINANCIAL ASPECTS :

i) Unit Cost :
Sr.No Name of the Physical units Unit cost with Whether

Investment and component wise approved by
specification break-up (Rs.) state level unit
cost committee
Total

Ii) Down payment/margin/subsidy(Indicate source & extent of subsidy):
iii) Year-wise physical & financial programme :
Year Invest- Physical Unit Total Margin/ Bank Refinance
loan
1 Ment Units Cost Outlay Subsidy Assistance
(Rs.)
2 3 (Rs.) (Rs.) (Rs.) (Rs.)
7
4 5 6 8
Total
Iv) Financial viability (comment on the cash flow projection on a farm
model/unit
and enclose the same.)
Particulars :
a) Internal Rate of Return (IRR) :
b) Benefit Cost Ratio (BCR) :
c) Net Present Worth (NPW) :
v) Financial position of the borrowers (to be furnished in case of
corporate bodies/partnership firms)
a) Profitability Ratio :
i) GP Ratio
ii) NP Ratio
b) Debt Equity Ratio :
c) Whether Income Tax & other tax obligations are paid uptodate :
d) Whether audit is upto date (enclose copies of audited financial statements
for the last three years)
vi) Lending Terms :
i) Rate of Interest :
ii) Grace Period :
iii) Repayment Period :
iv) Nature of Security :
v) Availability of Government guarantee wherever necessary :

4. INFRASTRUCTURAL FACILITIES :

a) Availability of technical staff with bank/implementing
authority for monitoring
b) Details of -
i) technical guidance
ii) training facilities
iii) Govt support/extention support
c) Tie-up arrangements with marketing agencies for loan recovery
d) Insurance -
- Type of policy
- Periodicity
- Rate of premium
e) Whether any subsidy is available, if so amount per unit
f) Arrangements for supply of green fodder and cattle feed

ANNEXURE II

Cattle and Buffalo Breeds Important Characteristics/Description

Sr.No Name Habitat/Main Breeding Assembling Areas of Remark
. Breed State Tract Centres demand s
Districts
1 2 3 4 5 6 7
A) CATTLE (INDIGENOU
S)
1 Amrithmah Erstwhile Mysore Tumkur and Erstwhile Karnataka and Draught
al State now part of Chitradurg Mysore State adjoining area breed
Karnataka

2 Dangi Maharashtra and Ahmednagar, Weekly Rocky ghat Draught
Gujarat Khandesh, markets in areas with breed
Raigad, Nasik, Ahmednagar, heavy rainfall
Thane, Surat Nasik, Thane
and West
Khandesh
district

3 Denoi Andhra Pradesh Medak, Weekly cattle Bidar and Draught
Karnataka and Nizambad, markets, Jatras adjoining purposse
Maharashtra Mahboobnaga and fairs in districts breed
r, Adilabad Bidar and
Gulbarga, adjoining
Bidar, districts
Osmanabad,
Nanded

4 Gir Gir Hills and Junagarh, _ Gujarat, Dairy

forest of South Also Rajasthan, purpose
Kathiawar maintained by Maharashtra breed
NDRI,
Bangalore

5 Hallikar Karnataka Tumkur, Dodbalapur, Dharwar, Draught
Hassan & Chickballapur, North Kanara, breed
Mysore Harikar, Bellary (KT)
Devargudda, Anantur&Chitt
Chikkuvalli, ur (A.P.),
Karuvalli, Coimbatore
Chittavadgi North Arcot,
(T.N.) North Salem (T.M.)
Arcot (T.N.)
Hindupur,
Somaghatta,
Anantpur (A.P.)

6 Hariana Haryana and Rohtak, Cattle fairs at Throughout Dual
Delhi, Punjab, Hissar, Jehazgarh, the country purpose
Rajasthan Gurgaon, Mahim and breed
Karnal, Bhadurgarh
Patiala, (Rohtak dist.)
Sangrur, Hansi&Bhiwani
Jaipur, (Hissar dist.)
Jodhpur,
Alwar,
Bharatpur
Western
districts

7 Kangayam Tamil Nadu Coimbatore Avanashi, Southern Draught
Tirppur, Districts of breed
Kannauram, Tamil Nadu
Madurai
Athicombu

8 Kankrej Gujarat Ahmedabad, Ahmedabad, Rajasthan,
Banaskantha Radhanpur Maharashtra

9 Khillari Maharashtra Solapur, Southern Draught
Kolhapur, Districts of breed
Satara Maharashtra
and adjoining
districts of
Andhra
Pradesh and
Karnataka

10 Krishna Maharashtra, Watersheds of Ichalkaranji
Valley Andhra Pradesh, Krishna and (Kolhapur),
Karnataka adjoining Chincahli
areas of A.P. (Gulbarga)
and KT

11 Malvi Madhya Pradesh Guna, Vidisha, Agar (Shajapur) Draught

RaisenSehora Singaj (Nimar) purpose
, Ujjain, Sehore&Ashta
Indore, (Sehore)
Dewas,
Gwalior,
Shivpuri,
Mandsaur,
Jhabus&Dhar

Rajasthan Jhalwar and Karimnagar
Kotah (A.P.)

12 Nagori or Rajasthan Jodhpur NagaurParbats Rajasthan, Draught
Nagauri &Nagaur ar (Nagpur), Haryana, Uttar purpose
Balotra Pradesh
(Barmer),
Puskar (Ajmer),
Hissar, Hansi
(Haryana State)

13 Ongole Andhra Pradesh Ongole, Available in - Dual
Guntur, Ongole tract of Purpose
Narasaraopet, Andhra
Bapatla and Pradesh
Nellore

14 Rathi Rajasthan Alwar, Alwar, Rewari - -
Bharatpur, (Gurgaon),
Jaipur Pushkar - Dairy
(Ajmer) breed

15 Sahiwal Punjab, Haryana, Sahiwal Jullundar, - Dairy
Delhi, U.P., (erstwhile Gurdaspur, breed
Bihar, M.P., W.B. Montgomery) Amritsar,
Kapurthala,
Ferozepur
(Punjab), NDRI,
Karnal, Hissar,
AnhoraDurg
(M.P),
Lucknow,
Meerut, Bihar,
W.B.

16 Red Sindhi Pakisatan All - - - Dairy
parts of India breed

17 Siri Sikkim, Bhutan Darjeeling Hill Darjeeling - Dual
Tract (Brought by purpose
dealers)

18 Tharparkar Pakisatn (sind) Umarkot, Balotra - Dairy
Naukot, (Jodhpur), breed
DhoroNaroCh Puskar (Ajmer),
or Gujarat State

B) CATTLE (EXOTIC)

1 Brown Switzerland - India, - Dairy breed
Swiss Pakisatan&
other Asian
countries

2 Holstein Holland Province of Through out - Dairy breed
Friesian North Holland the country
and West (crossbreds)
Friesland

3 Jersy British Isles Island of Crossbreds - Dairy breed
Jersey available in all
states/U.Ts

B) BUFFALOES

1 Bhadawari Uttar Bah Tehsil in Agra Local markets - Dairy Breed
Pradesh, Adjoining areas of in Breeding
Madhya Gwalior areas (Agra,
Pradesh Kanpur,
Etawah,
Jalaun, Jhansi)

2 Jaffarabadi Gujarat Kathiawar and Honreli Breeding areas - Dairy breed
of Saurashtra

3 Mehsani Gujarat Mehsana, Banaskantha, Ahmedabad, - Dairy breed
Sabarkantha tract in Mehsana and
Gujarat other places of
breeding

4 Murrah Haryana, Rohtak, Hissar, Karnal, Rohtak, - Dairy Breed
Uttar Jind, Gurgaon, Western Bahadurgarh,
Pradesh, parts of Uttar Pradesh Delhi,
Punjab Nabha and Patiala Jahanzgarh,
Mahim, Hissar,
Bhiwani,
Hansi, Rewari,
Ferozpur,
Jirka, Nangloi,
Narela

5 Nagpuri Maharashtra, Wardha, Nagpur Vidarbha area - Dual
Andhra Yeotmal, Adilabad, and of Maharashtra purpose
Pradesh adjoining parts and breed
Adilabaddistrict
of A.P.

6 Nili Ravi Punjab Ferozepur Ferozpur - Dairy breed
(MontogomeryPakisatan) District of
Punjab

7 Surti Gujarat Kheda, Vadodara Through out - Dairy breed
Gujarat
(Charottar tract)

ANNEXURE - III
Reproductive and Productive Parameters (Traits) in Indian Cattle and Buffaloes

Sr.No Name of the Age at Calving Lactation Lactation Dry Milk
breed first interval yield length period yield
calving kg/day
(months) (kg.) (days) (days) during
(months) lactat-

ion
1 2 3 4 5 6 7 8
i) Cattle
a) Indian
breeds
1 Dangi 54 17 600 300 210 2.0
2 Deogir 48 15 1,500 300 150 5.0
3 Deoni 53 14 810 270 150 3.0
4 Gir 48 16 1,350 270 210 5.0
5 Gaolao 46 16 600 300 180 2.0
6 Hallikar 46 20 600 300 300 2.0
7 Hariana 58 13 1,200 240 150 5.0
8 Kangayam 44 16 600 240 240 2.5
9 Kankrej 48 17 1,800 360 150 5.0
10 Khilari 52 16 240 240 240 1.0
11 Ongole 40 19 630 210 360 3.0
12 Rathi 40 19 1,815 330 240 5.5
13 Red Sindhi 42 14 1,620 270 150 6.0
14 Sahiwal 40 14 1,620 270 150 6.0
15 Tharparkar 50 14 1,620 270 150 6.0

16 Umblachery 46 17 360 240 270 1.5
17 Non-descript 60 19 405 270 300 1.5

B) Crossbred Cattle (BosindicusFxBostaurus M)

1 HxF 34 14 2,970 330 90 9.0
2 H x BS 29 15 2,805 330 120 8.5
3 HxJ 33 13 2,850 300 90 9.5
4 GxJ 25 13 2,640 330 60 8.0
5 GxF 25 13 2,160 270 120 8.0
6 RS x F 29 12 2,295 270 90 8.5
7 RS x RD 28 12 2,160 270 90 8.0
8 RS x J 29 12 1,500 300 90 5.0
9 RxJ 32 12 2,700 300 60 9.0
10 TxF 33 13 2,550 300 90 8.5
11 SxF 33 14 2,400 300 120 8.0

C) Buffaloes

1 Bhadawari 50 15 1,080 270 180 4.0
2 Murrah 42 16 1,800 300 180 6.0
3 Nili-Ravi 54 16 1,950 300 180 6.5
4 Surti 44 16 1,765 330 150 5.5
5 Mehsani 50 14 1,620 270 150 6.0
6 Jaffarabadi 50 14 1,620 270 150 6.0
7 Pandharpuri 56 14 1,350 270 150 5.0
8 Marathwadi 50 14 1,015 270 150 3.5
9 Nagpuri 50 14 1,350 270 150 5.0
10 Dharwari 50 14 1,350 270 150 5.0
11 Non-descript 50 16 540 270 210 2.0

Key : H = Hariana S = Sahiwal RS = Red Sindhi

G = Gir T = Tharparkar L = Non-descript

R = Rathi F = Friesian BS = Brown Swiss

RD = Red dane J = Jersey

Annexure - IV

Unit cost of cows and buffaloes Approved
by NABARD in some of the major States in India

Sr.N State Cows Buffaloes
o
Unit Breed Yield Unit Breed Yiel
Cost cost d
(Rs.) (litre (Rs.) (litre
s/ s /
day)
day)

1 2 3 4 5 6 7 8
1 Andhra 6,000 Crossbred 6 7,500 Graded 6
Pradesh Murrah
7500 Crossbred 8 1000 8
0 Graded
9500 Crossbred 10 Murrah -
-
2 Assam 10,00 Crossbred 7 8,500 Graded 7
0 Murrah
3 Bihar 13,00 Crossbred 10 9,000 Graded 7-8
0 Murrah
6,000 Indigenous 5-6 7,000 Local 5-6
(improved)
4 Gujarat i) 14,00 Jersey X 8-9 i) 13,50 Surti 5.5
0 0
ii) 16,00 H.F.X 9- ii) 13,00 Mehsani 6
0 10 0
iii 14,00 Jaffarabadi 6

) 0
5 Karnataka i) 7,300 Crossbred 6 i) 6,600 Graded 5
Surti
ii) 9,700 Crossbred 8 ii) 7,800 Graded 6
Murrah
iii 10,90 Crossbred 9 iii) 9,000 Pandarpuri 7
) 0
iv 12,10 Crossbred 10 iv) 11,00 Pure 8
) 0 0 Mehsani
6 Madhya i) 9,500 Jersey X i) 7,000 Graded 6
Pradesh Murrah
ii) 6,500 Gir/Tharparkr/Sah 8 ii) 8,250 Graded 7
iwal Murrah
7 iii) 6,000 Nagpuri 5
7 Maharashtra i) 11,20 Crossbred 6 i) 7,000 GMB/Mehs 7
0 ani
ii) 14,00 Crossbred 10 ii) 8,000 GMB/Mehs 8
0 ani
iii 8,400 Tharparkar/ 6-7 iii 6,000 Surti/ 6
) Gir/Hariana )
Jaffarbadi
to iv 7,000 Nagpuri/ 7
) Dharwari
9,500 v) 5,000 Pandharpur 5
i
vi 6,000 6
)
8 West Bengal i) 9,500 Crossbred 6 - - -
ii) 12,00 Crossbred 8 - - -
0
9 Orissa i) 6,000 Crossbred 6 6,300 Graded 6
Murrah
ii) 7,000 -do- 7
iii 8,000 -do- 8

)
10 Punjab/Hary i) 2,700 Indigenous 5
ana
ii) 7,950 Crossbred(J) 9 i) 7,450 Murrah 7
8,900 -do-(HF) 10 ii) 6,500 Graded 6
Murrah
11 Rajasthan i) 10,40 -do- 8 11,20 Graded 7
0 0 Murrah
ii) 11,70 -do- 9 9,000 Surti 6
0
iii 13,00 -do- 10
) 0
12 Uttar 10,00 Crossbred 10 11,00 Graded 8
Pradesh 0 0 Murrah
13 Kerala 6,000 Crossbred 6 7,200 Graded 6-
Murrah
6.5
8,000 Crossbred 8
14 Himachal 6,600 Crossbred 8 9,000 Graded 6
Murrah
15 Tamil Nadu 8,250 Crossbred 6 9,800 Graded 6
Murrah

Annexure V

Economics of two animal unit (buffaloes)

Project at a Glance
1 Unit Size : 2 Animals
2 Breed : Graded Murrah
3 State : Karnataka
4 Unit Cost (Rs.) : 18,223
5 Bank Loan (Rs.) : 15,400
6 Margin Money (Rs.) : 2,823

7 Repayment period : 5
8 Interest rate (%) : 12
9 BCR at 15% DF : 1.50:1
10 NPW at 15% DF (Rs.) : 29,187
11 IRR(%) : >50%

MODEL PROJECT FOR TWO ANIMAL UNIT(BUFFALOES)

A INVESTMENT COST

Sr.No. Items Specifications Phy units Unit Cost Total Cost

(Rs. /Unit) (Rs.)
1 Cost of animals 2 8,200 16,400
2 Insurance 2 689 1,378
3 Conc. Feed (4.5 135 Kg 1 3.3 446
kg/day/animal for
30 days)
4 Total cost 18,223
5 Margin money Say Rs. 2,733
(15% of total cost)
2723
6 Bank laon (85% of Say Rs. 15490
total cost)
15500

B TECHNO ECONOMIC PARAMETERS

i) No.ofmilch animals 2
ii) Cost of milch animals 8,200
iii) Lactation period (days) 280
iv) Dry period (days) 150
v) Milk yield (lts./day) 7
vi) Sale price of milk (Rs./lt) 7.75

vii) Sale of manure/animal/year (Rs.) 300
viii) Insurance premium for five years 8.4
(%)
ix) Veterinary aid/animal/year (Rs.) 150
x) Labour (Rs.) Family labour
xi) Cost of electricity & water 100
(Rs./animal)
xii) Interest rate (%) 12
xiii Repayment period (years) 5
xiv) Income from sale of gunny bags 100

20 bags/tonne @ Rs. 5/bag
xv) Feeding schedule

S.No. Type of fodder/feed Price (Rs./kg) (Quantity in kg/day)

Lactation Dry

Period Period
a) Green fodder 0.2 25 25
b) Dry fodder 0.5 55
c) Concentrate 3.3 4.5 1

xvi) Animals will be purchased in two
batches at an interval of 5 - 6 months

xvii) It is assumed that the expenditure on calf
rearing will nullify the sale value of calf / hiefer.

xviii) Closing stock value (Rs. per animal) 4100

C LACTATION CHART

Sr.No Particulars Years
I II III IV V
i) Lactation Days

a) First batch 250 280 250 210 210
b) Second batch 180 210 210 210 210
Total 430 490 460 420 420

ii) Dry Days
a) First batch 110 80 110 150 150
b) Second batch - 150 150 150 150
Total 110 230 260 300 300

Annexure - V (Contd.)

D CASH FLOW ANALYSIS

Sr.No. Particulars Years
I II III IV V
I Costs:
1 Capital cost* 17,777
2 Recurring cost
a) Feeding during
lactation period
Green fodder 2,150 2,450 2,300 2,100 2,100
Dry fodder 1,075 1,225 1,150 1,050 1,050
Concentrate 6,386 7,277 6,831 6,237 6,237
Total 9,611 10,952 10,281 9,387 9,387
b) Feeding during dry
period
Green fodder 550 1,150 1,300 1,500 1,500
Dry fodder 275 575 575 750 750
Concentrate 363 759 858 990 990
Total 1,188 2,484 2,733 3,240 3,240

c) Veterinary aid & 225 300 300 300 300
breeding cover
d) Cost of electricity & 150 200 200 200 200
water
Total 28,951 13,936 13,514 13,127 13,127
II BENEFITS
a) Sale of milk 23,328 26,583 24,955 22,785 22,785
b) Sale of Gunny bags 205 232 218 200 200
c) Sale of manure 450 600 600 600 600
d) Closing stock value 8,200
Total 23,982 27,414 25,773 23,585 31,785
III DF @15% 0.870 0.756 0.658 0.572 0.497
IV DISCOUNTED 25,175 10,537 8,886 7,505 6,526 58,630
COSTS AT 15%
V DISCOUNTED 20,854 20,729 16,946 13,485 15,803 87,817
BENEFITS AT 15%
VI NPW @ 15% 29,187
VII BCR @ 15% 1.50:1
VIII DF @ 50% 0.667 0.444 0.296 0.198 0.132
IX NET BENEFITS -4,969 13,479 12,259 10,458 18,658
X DISCOUNTED NET -3,313 5,990 3,632 2,066 2,457 10,833
BENEFITS AT 50%
XI IRR >50%

* excluding the capitalised expenditure on concentrated feed

E REPAYMENT SCHEDULE

Bank Loan (Rs) - 15500

Interest Rate (%) - 12

Capital recovery factor - 0.277

Year Income Expenses Gross Equated Net surplus
surplus annual
instalment
I 23,982 10,728 13,254 4,294 8,961
II 27,414 13,936 13,479 4,294 9,185
III 25,773 13,514 12,259 4,294 7,966
IV 23,585 13,127 10,458 4,294 6,165
V 23,585 13,127 10,458 4,294 6,165

Annexure VI

Economics of a mini DAIRY unit
TEN ANIMAL UNIT ( BUFFALOES)

PROJECT AT A GLANCE

1 Unit size : 10 animals
2 Breed : Graded Murrah
3 State : Karnataka
4 Unit cost (Rs) : 155,030
5 Bank loan (Rs) : 131,700
6 Margin money (Rs) : 23,330
7 Repayment period (yrs) : 5
8 Interest rate (%) : 13.5
9 BCR at 15% DF : 1.53:1
10 NPW at 15% DF(Rs) : 154,403
11 IRR (%) : >50

MODEL PROJECT FOR TEN ANIMAL UNIT (BUFFALOES)

A INVESTMENT COST

S.No. Items Specifications Phy.units Unit Cost Total Cost
(Rs./unit) (Rs.)
1 Cost of animals 10 8,200 8,200
2 Transportation cost 10 300 3,000
of animals
3 Cost of construction Sq.ft. 650 55 35,750
of shed
4 Cost of Store cum Sq.ft. 200 100 20,000
office
5 Equipments (chaff 10 500 5,000
cutter, milking pails,
cans, technicians
6 Insurance 10 328 3,280
7 Fodder raising 2 3,000 6,000
expenses @
Rs.3000/acre
8 Total cost 155,030
9 Margin money Say 23255

(15% of total cost) 23330
10 Bank loan (85% of Say 131776
total cost)
131700

ANNEXURE VI (contd)
B TECHNO ECONOMIC PARAMETERS

i Animals will be purchased in two batches at an
interval of 5-6 months
ii Second/Third lactation animals within 30 days of
calving will be purchased in first year
iii No. of acres of irrigated land for fodder 2
production considered in the project. Green
fodder will be produced on the farm. Fodder
production expenses is considered in the cash
flow analysis. During first year only two seasons
are considered.

iv In the first year the fodder production expenses 3,000
are capitalised for one season (Rs. per acre per
season) and manure is utilised for fodder
production
v It is assumed that the expenditure on calf
rearing will nullify the income realised from its
sale. However, the heifer will be retained on the
farm and the old animals will be sold out.
vi No. of milch animals 10
vii Cost of milch animals 8,200
viii Transportation cost (Rs. per milch animal 300
including followers)
ix Civil structures:
a) Shed (sft. per milch animal) 65

b) Store and office (sft) 200
x Cost of construction 55

a) Shed (Rs. per sft) 100

b) Store and office
xi Cost of equipment (Rs per milch animals) 500
xii Lactation period (days) 280
xiii Dry period (days) 150
xiv Milk yield (lts/day) 7
xv Sale price of milk (Rs/lt) 7.75
xvi Income from sale of gunny bags (20 bags/tonne 100
@ Rs.5/bag)
xvii Expenditure on dry fodder for dry and lactation 5
period requirement (kg/day)
0.5
Cost (Rs/kg)
xviii Expenditure on concentrates 4.5

a) Requirement (kg/day) 1

Lactation period 3.3

Dry period

b) Cost (Rs/kg)
xix Veterinary aid/animal/year (Rs) 150
xx Labour (Rs./month) 900
xxi Insurance premium (%) 4
xxii Cost of electricity, water & other overheads 200
(Rs/animal)
xxiii Depreciation(%) 5

a) Sheds 10

b) Equipment
xxiv Value of closing stock 4,100
xxv Interest rate(%) 13.5
xxvi Repayment period (years) 5

ANNEXURE VI (Contd.)

C. Lactation Chart

S.No Particulars I II Years IV V

III
I Lactation
Days
a) First batch 1,250 1,400 1,250 1,050 1,050
b) Second batch 900 1,050 1,050 1,050 1,050
Total 2,150 2,450 2,300 2,100 2,100
II Dry days
a) First batch 550 400 550 750 750
Second batch - 750 750 750 750

Total 550 1,150 1,300 1,500 1,500

D CASH FLOW ANALYSIS

Sr.No Particulars I II Year IV IV

III
I Costs
1 Capital cost* 145,750
2 Recurring cost
a) Green fodder 12,000 18,000 18,000 18,000 18,000
raising expenses
b) Feeding during
lactation period
Dry fodder 5,375 6,125 5,750 5,250 5,250
Concentrate 31,928 36,383 34,155 31,185 31,185
Total 37,303 42,508 39,905 36,435 36,435
c) Feeding during
dry period
Dry Fodder 1,375 2,875 3,250 3,750 3,750
Concentrate 1,815 3,795 4,290 4,950 4,950
Total 3,190 6,670 7,540 8,700 8,700
d) Veterinary aid & 1,125 1,500 1,500 1,500 1,500
breeding cover
e) Cost of electricity 1,500 2,000 2,000 2,000 2,000
& water
f) Insurance 3,280 3,280 3,280 3,280 3,280
g) Labour cost 10,800 10,800 10,800 10,800 10,800
Total 188,868 52,678 50,945 49,503 48,635
II BENEFITS
a) Sale of milk 116,637 132,912 124,775 113,925 113,925
b) Sale of Gunny 1,023 1,218 1,165 1,095 1,095

bags
c) Depreciated - 26,813
value of sheds
d) Depreciated 2,500
value of
equipments
e) Closing stock 41,000
value
Total 117,660 134,130 125,940 115,020 185,333
III DF @ 15% 0.87 0.76 0.66 0.57 0.50
IV DISCOUNTED 164,233 39,832 33,497 28,303 24,180 290,045
COSTS AT 15%
V DISCOUNTED 102,313 101,422 82,808 65,763 92,143 444,448
BENEFITS AT
15%
VI NPW @ 15% 154,403
VII BCR @ 15% 1.53:1
VIII DF @ 50% 0.667 0.444 0.296 0.198 0.132
IX NET BENEFITS -71,208 81,453 74,995 65,518 136,698
X DISCOUNTED 47,472 36,201 22,221 12,942 18,001 41,893
NET BENEFITS
AT 50%
XI IRR >50

* excludes the capitalised cost for fodder raising for three months and
insurance for one year

E REPAYMENT SCHEDULE:

Bank Loan (Rs) - 131700

Interest rate(%) - 13.5

Capital recovery factor - 0.287

(inRs.)

Year Income Expenses Gross Equated Net surplus
surplus annual
installment
I 117,660 33,838 83,823 37,798 46,025
II 134,130 52,678 81,453 37,798 43,655
III 125,940 50,945 74,995 37,798 47,197
IV 115,020 49,503 65,518 37,798 27,720
V 115,020 48,635 66,385 37,798 28,587

Annexure - VII

Housing Space Requirements for Crossbred cattle

Age-group Manger Space (mtr.) Standing or covered Open
area (sq.mtr.) Space(sq.mtr.)
4-6 months 0.2-0.3 0.8-1.0 3.0-4.0
6-12 months 0.3-0.4 1.2-1.6 5.0-6.0
1-2 years 0.4-0.5 1.6-1.8 6.0-8.0
Cows 0.8-1.0 1.8-2.0 11.0-12.0
Pregnant cows 1.0-1.2 8.5-10.0 15.0-20.0
Bulls* 1.0-1.2 9.0-11.0 20.0-22.0

*To be housed individually

Annexure - VIII

Feeding Schedules for Dairy Animals

(Quantity in Kgs.)

S.No. Type of animal Feeding Green Dry Fodder Concentrate
during Fodder
1 2 3 4 5 6
(A) CROSSBRED COW

a) 6 to 7 litres milk per day Lactation days 20 to 25 5 to 6 3.0 to 3.5

Dry days 15 to 20 6 to 7 0.5 to 1.0
b) 8 to 10 litres milk per Lactation days 25 to 30 4 to 5 4.0 to 4.5
day
Dry days 20 to 25 6 to 7 0.5 to 1.0
(B) BUFFALOES
a) Murrah (7 to 8 litres Lactation days 25 to 30 4 to 5 3.5 to 4.0
milk per day)
Dry days 20 to 25 5 to 6 0.5 to 1.0
b) Mehasana (6 to 7 litres Lactation days 15 to 20 4 to 5 3.0 to 3.5
milk per day) Dry days
10 to 15 5 to 6 0.5 to 1.0
c) Surti (5 to 6 litrs milk Lactation days 10 to 15 4 to 5 2.5 to 3.0
per day)
Dry days 5 to 10 5 to 6 0.5 to 1.0

Annexure - IX

Programme for vaccination of farm animals against contagious diseases

Sr. Name of disease Type of vaccine Type of Duration Remarks
vaccinatio of
No n immunit
. y
1 2 3 4 5 6
1 Anthrax (Gorhi) Spore vaccine Once in an One -
year season
premonsoo
n
vaccination
2 Black Quarter (Sujab) Killed vaccine - do - - do - -
3 HaemorrhagicSepticaemi Ocladjuvant - do - - do - -
a (Galghotu) vaccine
4 Brucellosis (Contagious Cotton strain 19 At about 6 3 or 4 To be
abortion) (live bacteria) months of calvings done only
age in infected
herds

5 Foot and Mouth disease Polyvalent tissue At about 6 One After
(Muhkhar) culture vaccine months of season vaccinatio
age with n repeat
booster vaccinatio
dose 4 n every
months year in
later Oct./Nov.
6 Rinderpest (Mata) Lapinisedavianise At about 6 Life long It is better
d vaccine for months of to repeat
exotic and age after 3 to
crossbred catte, 4 years
caprinised
vaccine for zebu
cattle.

. Introduction
Dairying is an important source of subsidiary income to small/marginal farmers and agricultural labourers. The
manure from animals provides a good source of organic matter for improving soil fertility and crop yields. The gobar
gas from the dung is used as fuel for domestic purposes as also for running engines for drawing water from well. The
surplus fodder and agricultural by-products are gainfully utilised for feeding the animals. Almost all draught power for
farm operations and transportation is supplied by bullocks. Since agriculture is mostly seasonal, there is a possibility
of finding employment throughout the year for many persons through dairy farming. Thus, dairy also provides
employment throughout the year. The main beneficiaries of dairy programmes are small/marginal farmers and
landless labourers.

2. Scope for Dairy Farming and its National Importance.
The total milk production in the country for the year 2008-09 was estimated at 108.5 million metric tonnes and the
demand is expected to be 180 million tonnes by 2020. To achieve this demand annual growth rate in milk production
has to be increased from the present 2.5 % to 5% . Thus, there is a tremendous scope/potential for increasing the
milk production through profitable dairy farming.

3.Financial Assistance Available from Banks/NABARD for Dairy Farming.

3.1. Loan from banks with refinance facility from NABARD is available for starting dairy farming.
For obtaining bank loan, the farmers should apply to the nearest branch of a commercial bank, regional rural bank or
co-operative bank in their area in the prescribed application form which is available in the branches of financing
banks.

3.2. For dairy schemes with very large outlays, detailed project reports will have to be prepared.
The items of finance would include capital asset items such as purchase of milch animals, construction of sheds,
purchase of equipments etc. The feeding cost during the initial period of one/two months is capitalised and given as
term loan. Cost towards land development, fencing, digging of well, commissioning of diesel engine/pumpset,
electricity connections, essential servants' quarters, godown, transport vehicle, milk processing facilities etc. can be
considered for loan. Cost of land is not considered for loan.

4.Scheme Formulation for bank loan

4.1 A Scheme can be prepared by a beneficiary after consulting local technical persons of State Animal
Husbandry Department, DRDA, Dairy Co-operative Society / Union / Federation / commercial dairy farmers. If
possible, the beneficiaries should also visit progressive dairy farms and government / military / agricultural university
dairy farms in the vicinity and discuss the profitability of dairy farming. A good practical training and experience in
dairy farming will be highly desirable. The dairy co-operative societies, if existing in the villages would provide all
supporting facilities particularly for marketing of fluid milk. Nearness of dairy farm to such a society, veterinary aid
centre, artificial insemination centre should be ensured. There is a good demand for milk, if the dairy farm is located
near urban centre.

4.2 The scheme should include information on land, livestock markets,availability of water, feeds, fodder,
veterinary aid, breeding facilities, marketing aspects, training facilities, experience of the farmer and the type of
assistance available from State Government, dairy society/union/federation.

4.3 The scheme should also include information on the number and types of animals to be purchased, their
breed, production performance, cost and other relevant input and output costs with their description. Based
on this, the total cost of the project, margin money to be provided by the beneficiary, requirement of bank loan,
estimated annual expenditure, income, profit and loss statement, repayment period, etc. can be worked out and
shown in the Project report. A format developed for formulation of project report for a dairy farm is given as Annexure
I.

5.Scrutiny of Schemes by banks.
The scheme so formulated should be submitted to the nearest branch of the bank. The bank's officer can assist in
preparation of the scheme or filling in the prescribed application form. The bank will then examine the scheme for its
technical feasibility and economic viability.

(A) Technical Feasibility - this would briefly include -
1. Nearness of the selected area to veterinary, breeding and milk collection centre and the financing bank's branch.
2. Availability of good quality animals in nearby livestock market
3. Availability of training facilities.
4.Availability of good grazing ground/lands.
5.Availability of Green/dry fodder, concentrate feed, medicines etc.
6.Availability of veterinary aid / breeding centres and milk marketing facilities near the scheme area.

(B) Economic Viability - this would briefly include -
1. Unit Cost
2. Input cost for feed and fodder, veterinary aid, breeding of animals, insurance, labour and other overheads.
3.Output costs i.e. sale price of milk, manure, gunny bags, male/female calves, other miscellaneous items etc.
4.Income-expenditure statement and annual gross surplus.
5.Cash flow analysis.
6. Repayment schedule (i.e. repayment of principal loan amount and interest).
Other documents such as loan application form, security aspects, margin money requirements etc. are also
examined. A field visit to the scheme area is undertaken for conducting a techno-economic feasibility study for
appraisal of the scheme.

6.Sanction of Bank Loan and its Disbursement.
After ensuring technical feasibility and economic viability, the scheme is sanctioned by the bank. The loan is
disbursed in kind in 2 to 3 stages against creation of specific assets such as construction of sheds, purchase of
equipments and machinery, purchase of animals and recurring cost on purchase of feeds/fodders for the initial period
of one/two months. The end use of the funds is verified and constant follow-up is done by the bank.

7.Lending terms - General

7.1Outlay
Outlay of the project depends on the local conditions, unit size and the components included in the project. Prevailing
market prices may be considered to arrive at the outlay.

7.2 Margin Money:
Margin depends on the category of the borrowers and range from 5 to 25%.

7.3 Interest Rate for ultimate borrower :
Banks are free to decide the rates of interest within the overall guidelines. However, for working out the financial
viability and bankability of the model projects we have assumed the rate of interest as 12 % p.a.

7.4 Security
Security will be as per NABARD/RBI guidelines issued from time to time.

7.5 Repayment period of loan
Repayment period depends upon the gross surplus in the scheme. The loan will be repaid in suitable
monthly/quarterly instalments usually within a period of five to seven years.

7.6Insurance
The animals and capital assets may be insured annually or on long term master policy, where ever it is applicable.
A model project with 10 buffaloes is given as Annexure II. This is indicative and the applicable input and output costs
as also the parameters observed at the field level may be incorporated.

Annexure I

FORMAT FOR PROJECT REPORT PREPARATION - DAIRY FARM

1. GENERAL
i) Nature and objectives of the proposed scheme
ii) Details of proposed investments
iii) Specification of the project area
iv) Name of the financing bank branch
v) Status of beneficiary:
(individual/Partnership/Company/Corporation/Co-operative Society / Others)
vi) Details of borrowers profile
(a) Capability
(b) Experience
(c) Financial Soundness
(d) Technical/Other special Qualifications
(e) Technical/Managerial Staff and adequacy thereof

2. TECHNICAL ASPECTS :
a) Location, Land and Land Development :
i) Location details of the project
ii) Total Area of land and its cost
iii) Site map
iv) Particulars of land development, fencing, gates, etc.

b) Civil Structures :
Detailed cost estimates along with measurements of various civil structures
- Sheds
- Store room
- Milk room
- Quarters, etc.

c) Equipment/Plant and Machinery :
i) Chaff cutter
ii) Silo pit
iii) Milking machine
iv) Feed grinder and mixer
v) Milking pails/milk cans
vi) Biogas plant
vii) Bulk coolers
viii)Equipment for manufacture of products
ix) Truck/van (price quotations for the above equipments)

d) Housing :
i) Type of housing
ii) Area requirement
- Adults
- Heifers (1-3 years)
- Calves (less than 1 year)

e) Animals :
i) Proposed species
ii) Proposed breed
iii) Source of purchase
iv) Place of purchase
v) Distance (km.)

vi) Cost of animal (Rs.)

f) Production parameters :
i) Order of lactation
ii) Milk yield (ltrs. per day)
iii) Lactation days
iv) Dry days
v) Conception rate
vi) Mortality(%)
- Adults
- Young stock

g) Herd projection (with all assumptions) :

h) Feeding :
i) Source of fodder and feed - Green fodder
- Dry fodder
- Concentrates
ii) Fodder crop rotations
- Kharif
- Rabi
- Summer
iii) Fodder cultivation expenses
iv) Requirement and costs :

Quantity required (kg./day)

Cost(Rs. / Kg) Lactation Dry Period Young Stock
Green Fodder
Dry Fodder
Concentrates

i) Breeding Facilities :
i) Source :
ii) Location :
iii) Distance (km.) :
iv) Availability of semen :
v) Availability of staff :
vi) Expenditure per animal/year

j) Veterinary Aid :
i) Source
ii) Location
iii) Distance (km.)
iv) Availability of labour and other staff
v) Types of facilities available
vi) If own arrangements are made -
a) Employed a veterinary doctor/stockman/consultant
b) Periodicity of visit
c) Amount paid/visit (Rs.)
vii)Expenditure per animal per year (Rs.)

k) Electricity :
i) Source
ii) Approval from SEB
iii) Connected load
iv) Problems of power failure
v) Arrangements for generator

l) Water :
i) Source

ii) Quality of water
iii) Availability of sufficient quantity for drinking, cleaning and fodder production
iv) If investment has to be made, type of structure, design and cost

m) Marketing of milk :
i) Source of sales
ii) Place of disposal
iii) Distance (km.)
iv) Price realised - (Rs. per liter of milk)
v) Basis of payment
vi) Periodicity of payment

n) Marketing of other products :
i) Animal - age
- place of sale
- price expected
ii) Manure - Qty./animal
Price/unit (Rs.)
iii) Empty gunny bags
- Number
- Cost/bag (Rs.)

o) Beneficiary's experience :

p) Comments on technical feasibility :

q) Government restrictions, if any :

3. FINANCIAL ASPECTS :

i) Project Cost

Sr. Item Physical Unit and Specification Cost (Rs.)
No.
Capital Costs

Total Capital Costs(A)
Recurring Costs

Total Recurring Costs (B)
Total Project Cost (A+B)

ii) Down payment/margin/subsidy (Indicate source & extent of subsidy):

iii) Financial viability (comment on the cash flow projection on a farm model/unit and enclose the same.)
Particulars :
a) Internal Rate of Return (IRR) :
b) Benefit Cost Ratio (BCR) :
c) Net Present Worth (NPW) :

iv) Financial position of the borrowers (to be furnished in case of corporate bodies/partnership firms)
a) Profitability Ratio :
i) GP Ratio
ii) NP Ratio
b) Debt Equity Ratio :
c) Whether Income Tax & other tax obligations are paid upto date :

d) Whether audit is upto date (enclose copies of audited financial statements for the last three years)

v) Lending Terms :
i) Rate of Interest :
ii) Grace Period :
iii) Repayment Period :
iv) Nature of Security :
v) Availability of Government guarantee wherever necessary :

4. INFRASTRUCTURAL FACILITIES :
a) Availability of technical staff with bank/implementing authority for monitoring
b) Details of -
i) technical guidance
ii) training facilities
iii) Govt. support /extension support
c) Tie-up arrangements with marketing agencies for loan recovery
d) Insurance -
- Type of policy
- Periodicity
- Rate of premium
e) Whether any subsidy is available, if so amount per unit
f) Arrangements for supply of green fodder and cattle feed

Model Unit Cost and Economics of a 10 Buffalo Unit

A. Project Cost Rs.
Cost of milch animals including transportation cost : 330000
Cost of construction of shed for adult animals : 60000
Cost of construction of shed for calves : 20000
Cost of chaff cutter : 50000
Cost of equipment : 10000
Capital cost : 470000
Cost of concentrate feed for first batch for first month : 4800
Cost of fodder cultivation in 2 acres : 9000
Insurance of first batch of milch animals : 16000
Recurring cost : 29800
Total cost : 499800
or say : 500000
Margin (15%) : 75000
Bank Loan : 425000

B. Techno economic parameters

Type of Animal : Graded Murrah Buffalo
No. of Animals : 10
Cost of Animal (Rs./animal) : 32000
Transportation Cost/Animal : 1000
Average Milk Yield (litre/day) : 8
Floor space (sqft) per adult animal : 60
Floor space (sqft) per calf : 20
Cost of construction per sqft (Rs.) : 100
Cost of chaff cutter (power operated) (Rs.) : 50000

Cost of equipment per animal (Rs.) : 1000
Cost of fodder cultivation (Rs./acre/season) : 4500
Insurance premium (% per annum) : 5
Veterinary aid/animal/ year (Rs.) : 250
Cost of concentrate feed (Rs./kg) : 8
Cost of dry fodder (Rs./kg) : 1.50
No. of labourers : 1
Salary of labourer per month (Rs.) : 3000
Cost of electricity and water/animal/year (Rs.) : 150
Margin (%) : 15
Rate of interest (%) : 12
Repayment period (years) : 7
Selling price of milk/litre (Rs./kg) : 16.50
Sale price of gunny bags (Rs. per bag) : 10
Lactation days : 270
Dry days : 150

Freshly calved animals in 1st or 2nd lactation are purchased in two batches of five animals each at an
interval of 5 to 6 months.
Cost of rearing calves not considered as it will be nullified by their sale value or retention value.
Fodder cultivation considered in two acres and working capital for one crop / season considered. Two crops
considered per year.

Manure utilised for fodder cultivation.

Feeding Schedule Per Day

Lactation Dry
Price (Rs.) Qty. (kg) Cost Per Day Qty. (kg) Cost Per Day
(Rs.) (Rs.)
Concentrate Feed 8.00 4 32.00 1 8.00
Green Fodder Home grown 25 0.00 20 0.00
Dry Fodder 1.50 4 6.00 5 7.50
Total 38.00 15.50

Lactation Chart

Years 1 2 3 4 5 6 7
Lactation Days 2100 2425 2425 2425 2200 2425 2425
Dry Days 625 1225 1225 1425 1450 1225 1075
Gunny Bags available for sale 171 208 208 196 195 200 195

C. Economics

Particulars Years
1 2 3 4 5 6 7
Sale of Milk 277200 320100 320100 293700 290400 320100 320100
Sale of Gunny bags 1710 2080 2080 1960 1950 2000 1950
Total 278910 322180 322180 295660 292350 322100 322050

Cost of feeding during lactation 79800 92150 92150 84550 83600 92150 92150
Cost of feeding during dry period 9690 18990 18990 22090 22480 18990 16660
Cost of fodder cultivation 18000 18000 18000 18000 18000 18000 18000
Veterinary aid and breeding charges 2500 2500 2500 2500 2500 2500 2500
Labour charges 36000 36000 36000 36000 36000 36000 36000
Electricity and misc. charges 750 1500 1500 1500 1500 1500 1500
Insurance charges 16000 16000 16000 16000 16000 16000 16000
Total 162740 185140 185140 180640 180080 185140 182810
Surplus 145970 137040 137040 115020 112270 136960 139240

D. Calculation of BCR and IRR

1 2 3 4 5 6 7
Capital Costs 470000
Recurring Cost 162740 185140 185140 180640 180080 185140 182810
Total Costs 632740 185140 185140 180640 180080 185140 182810
Benefit 278910 322180 322180 295660 292350 322100 322050
Net Benefit -353830 137040 137040 115020 112270 136960 139240

PW Costs @ 15% 1153513
PW Benefits @ 15% 1272701
NPW 119187.8
B.C. Ratio 1.10 : 1
I.R.R. (%) 28.66

E. Repayment schedule

Year Loan Outstanding Gross Surplus Interest Principal Total Repayment Surplus
1 425000 145970 51000 51200 102200 43770
2 373800 137040 44856 51044 95900 41140
3 322756 137040 38731 57169 95900 41140
4 265587 115020 31870 48630 80500 34520
5 216957 112270 26035 52565 78600 33670
6 164392 136960 19727 76173 95900 41060
7 88219 139240 10586 88219 98805 40435

Introduction, Background, Planning and Housing
Gordon King, Department of Animal &
Poultry Science, University of Guelph

Perhaps 11,000 or 12,000 years ago humans
first domesticated small ruminants as a
convenient means of meeting immediate
needs for food and eventually with additional
contributions toward clothing and transport.
Exploitation of animals for dairy purposes
was a much later innovation. Mammalian
females usually produce only sufficient milk
for their own offspring and resist actively
whenever others attempt to obtain some.
Somewhere back in antiquity farmers found
they could obtain small amounts of milk
from lactating females after natural suckling stimulated the "milk-let-down" reflex.
Animal domestication and selection progressed to the point where the sight, smell and
sound of the young animal was sufficient to initiate this reflex in a few and later in
more females. Throughout most of human history, however, dairy products remained
rare and expensive, available only during very limited seasons of the year as a
secondary output from dual-purpose animals.

We now know that the "milk-let-down"
reflex is a conditioned response that
farmers have exploited since at least the
time of the Sumarian
culture (circa 3,000 BCE). Over a
considerable period and through a
process of gradual adaptation and
selection, more females were conditioned
to let-down milk in response to a variety

of auditory sounds and tactile sensations, eventually even in the absence of their
young. Thus, we now have breeds of cattle, buffalo, goats and sheep in which the let-
down reflex requires only the mildest environmental stimuli. This behavioral change
occurred in conjunction with selection for greater production so dairy breeds now
yield much more milk than would be necessary for nutrition of their offspring. Dairy
products eventually became a staple food in many cultures, providing opportunity for
an additional livestock commodity and the future development of specialized
production systems.

The major breeds of dairy cattle found on specialized dairy farms throughout much of
the world are Ayrshire, Brown Swiss, Gurnsey, Jersey and Holstein, with the latter
predominating in many regions. Background information on these and many other
breeds is available from the Department of Animal Science at Oklahoma State
University.

World Milk Production, 1996

Metric tonnes x 106

Cow milk 472

Buffalo milk 51

Goat milk 10

Sheep milk 7.5

Camel milk 1.3

Very small quantities from mares & yaks.
FAOSTAT Database, 1996.

General Management Planning For Dairy Herds
As pointed out in the section covering Animals and Environments, all living organisms
receive and can respond to stimuli. Anything other than the very mildest of stimuli
results in responses in the recipient animal. In most instances even a mild stimulus

produces stress and provokes a physiological response. Animals usually adapt to
almost all stress and maintain internal body conditions within normal ranges. High
milk production, like world class athletic performance, demands near maximum
function from all body systems. Such intense activity would undoubtedly be
somewhat stressful. However, human competitors seem to derive more gratification
than suffering from their exertions. Certainly, human attitudes and responses should
not be directly translated into animal terms but we have no factual basis to equate
high performance by any livestock with discomfort or abuse. Perhaps an appropriate
goal for both athletic trainers and individuals supervising high producing animals
would be to devise programs that prevent stress from becoming distress. On dairy
farms this implies appropriate housing, feeding, milking, mating and disease
prevention procedures.

A large proportion of the production depressing problems encountered in dairy herds
result from management deficiencies. Many of these can be avoided through sound
planning and conscientious attention to detail but this will not happen if just left to
chance. The initial step in planning a new or reorganizing an existing livestock
enterprise should be the establishment of a production goal that is set high enough to
provide challenge, but low enough to be achievable. Whenever herds produce for
commercial markets, this goal should represent the projected value of output that
would be sufficient to exceed all predicted fixed and variable operating costs likely to
be incurred through operation of the unit and to provide a reasonable profit. Once this
is decided herd operators should consult with their veterinarians and other advisors to
devise an entire series of specific objectives, covering each step in the production
process, that must be attained to have reasonable expectations of meeting the output
goal. These should include projected age at first calving, average productivity for
females in various age groups, acceptable somatic cell counts, desirable reproductive
performance and the replacement rate. Other more specific objectives might be to
keep the percentage of females with clinical or subclinical mastitis, prolonged
postpartum acyclicity, reproductive problems, dystocia or other clinical diseases
below a reasonable number. Through this process a series of acceptable minimum
standards can be described for each phase of the operation. These represent the best
current estimates of where output returns will be affected so they may no longer cover
input costs, indicating corrective actions are necessary.

The adoption of a positive animal identification method and a simple but
comprehensive recording system are important components of the planning exercise.
Current resources must be examined to determine if these are adequate or require
additional supplementation to provide a reasonable expectation of reaching the output

goal. Existing stock must be of sufficient quantity and quality to produce the
anticipated yield or replacements must be procured. The physical facility should also
be assessed to determine if this is sufficient in its present form or if modifications are
needed to allow efficient production. Attention must be given to available labor,
deciding whether the current staff are qualified and adequate.

Once the resources have been evaluated and judged acceptable in their existing or
modified form, a specific operating system can be formulated. Attention must be paid
to all aspects of animal related activities such as selection, feeding, mating, parturition
and disease prevention. The nutrition program should cover both the quantity and
quality of feed for animals of various ages and production stages in conjunction with
regular monitoring through condition scoring. Procedures for disease prevention,
sanitation and monitoring udder health, estrous detection, mating, fertility monitoring,
pregnancy checking and parturition must be detailed with specific responsibilities
assigned to individuals who are held accountable for performance. A series of
meaningful but achievable production-related bonuses provide excellent incentives to
motivate both managers and animal attendants to do their best at all times

A Generalized Dairy Production Sequence

A complete dairy production sequence involves a number of stages including:
i) heifers growing to reach sexual maturity
ii) mating and conception to initiate pregnancy
iii) progression through gestation
iv) parturition which initiates lactation

v) the actual lactation during which the cow is remated
vi) a dry period to prepare for the
next lactation

The main goal of any dairy herd is to
produce milk as conveniently and
economically as possible. Since the
bovine gestation period is nine
months long and cows require a
postpartum recovery period of
several months before initiating
another pregnancy, it is convenient to
plan around a yearly calving interval.
Ideally, cows would lactate for about
ten months followed by a two month
dry period, as illustrated in the accompanying figure. They should be remated
successfully during the first third of lactation, progress through another gestation and
calve again to initiate another lactation. However, even with reasonable management,
a substantial number of animals fail to conceive as anticipated so calving intervals
exceed twelve months. Failure to achieve a twelve month calving interval is not
disastrous since almost all improved dairy cows produce reasonable quantities of milk
for longer than ten months. Thus, although daily yields are considerably below peak
amounts, they still return something over feed and maintenance costs. The actual
calving interval for most herds with reasonable standards of management will usually
range between 12.5 and 15 mo. Once the interval extends beyond this duration, most
cows in the herd spend too much time in the lower portions of the lactation curve
where the margin over feed costs is minimal or even negative. Also, in such instances,
the average milk and offspring production per day of herd life is lower.

Dairy farmers seek consistently for methods to improve production efficiency (milk
per unit of feed or per hectare of land cultivated) since, with high efficiency, the
nutrients used for maintenance constitute a smaller proportion of the total intake. This
requires close attention to the composition of diet for each production group, plus the
method and frequency of feeding. Various procedures exist which are reported to
enhance milk production (see following table). Each must be evaluated for
convenience, cost effectiveness and effect on animals and animal attendants before
any are adopted.

Production Enhancing Procedure % increase in yield

Proper prestimulation (40 - 60") 5 - 10

Stripping 6-9

Three times milking 12 - 20

Four times milking 15 - 25

Extended lighting 5 - 10

rbST 5 - 20

Rumensin 5 - 10

Dairy producers should establish an operational plan for each phase that, if exercised
properly, provides a reasonable chance of achieving the production goals. This
involves:

1. assigning specific responsibilities to individuals for each key area and insuring
the people understand their duties and that they will be held accountable for
performance.
2. formulating a set of minimally acceptable standards
3. initiating a performance monitoring system
4. deciding how frequently the performance will be evaluated
5. generating a mechanism for initiating corrective action as necessary

Suggestions for minimally acceptable standards (herd goals):
Production:

sufficient size and maturity to breed by 15 mo of age
first calving, 24 - 25.5 mo of age
standards for each lactation age (individual preferences)
breeding and replacement policies (individual preferences)

Milking:

routine (must match facility)
drying off procedure (individual preferences)
sampling for somatic-cell-counts (< 200,000)

Health: - work with DVM with particular attention to

sanitation
vaccinations
routine examinations
udder health
mortality, birth to first calving < 5%
cow mortality < 2%

Reproduction:

mean interval to first AI, < 75 days
estrus detection rate, 55 to 90 days, > 75% of eligible cows
return detection rate, 15 to 30 days post mating, > 75%
pregnancy rate to first AI, 50%
services per pregnancy, < 2
calving interval, < 14 mo
days open, < 135

View a typical life history for a dairy cow.

Housing for Dairy Cattle
The only absolutely essential inputs
necessary for dairying are a lactating
female and some sort of container to hold
her milk. In practice, however, the
requirements are almost always
substantially more elaborate.

Some climates allow almost totally pasture
based dairying with little or no need for
shelter. In semi-arid, tropical regions it is
only necessary to provide protection from
severe solar radiation or, occasionally,

from flooding during rainy seasons. In contrast, most of Canada, like many other
temperate climate regions, experiences severe winter cold. Thus, dairy cattle may be
allowed to graze on pasture during late spring, summer and part of the fall, but are
then confined during the colder months. Although this mixture of grazing and
confinement is still common, some herds are confined totally throughout the entire
year.

Because natural conditions seldom maintain cattle within their comfort
zones throughout all seasons of the year., shelters are usually necessary to protect
animals from inclement weather. Appropriate confinement facilities protect both the
animals and animal attendants from temperature extremes and potentially hazardous
conditions. To accomplish this all animal holding units should provide for supervision
and ease of handling during at all times, including feeding, milking, breeding,
parturition and health protection activities. In addition, any confinement facility must
be constructed and operated to meet the legal requirements for preservation of product
quality and to ensure that animals are always treated humanely.

The current economic conditions in many regions compel livestock producers to
reduce production expenses wherever possible. Since conventional dairy
barnsrepresent substantial fixed cost for there initial construction, for carrying charges
and for depreciation, dairy operators who intend to replace existing or add additional
facilities seek for less expensive alternatives. In temperate climate regions most new
constructions are now modified pole, arched steel or fabric covered enclosures rather
than the traditional barn with extensive feed storage and handling space built above a
heavily reinforced livestock stable. Confinement housing can be in tie stall
barns where neck chains or collars restrain each cow in her own space for most or all
of the day and night. Alternately, cows might be housed in free stall barns or loose
housing units where animals can move about in the passage or exercise areas and
enter into comfort stalls or resting areas whenever they choose.

Advantages and Disadvantages of Tie Stall Housing
Advantages Disadvantages

cleaner cows tying and untying difficulties

individual attention for all animals reduced opportunity for exercise

readily mechanized labor intensive if not mechanized

comfortable for most chores stooping to milk

economical and practical, particularly for smaller less opportunity for choice, more criticism from
herds animal welfare groups

Advantages and Disadvantages of Free Stall Housing
Advantages Disadvantages

economical operating costs expensive construction costs

readily mechanized less individual attention

animals exercised regularly more competition

some flexibility in organizing different dirtier cows if improperly designed or operated
management-feeding groups

Most livestock constraint facilities are built for the convenience of human operators
rather than for the benefit of animals under their care. Free-stall housing for dairy
cattle can be an exception, allowing the animal occupants choice to move freely
between resting, feeding and watering areas. Particular consideration must be given to
the milking area; footing; manger and watering space; stall construction, size and
bedding material; manure handling and facilities for moving animals. Attention to
proper design, construction and daily operation should provide a minimal stress
environment for healthy, clean and productive cows. Check out the Dairy
Management Factsheet from the University of Alberta for additional ideas on free-
stall design and bedding.

Additional housing, either combined with or separated from the primary facility for
keeping the milking cows, is necessary for females at calving time, for young calves
(either indoor or outdoor), for growing heifers and for dry cows. Again these units
must be suited to the climatic conditions prevalent in the region so they protect
animals from extremes of both heat and cold.

Special precautions must be afforded to very young calves since they do not yet have
functional rumens so do not generate the large amounts of body hear from
fermentation that are typical of older ruminants. Thus, some form of specialized
housing is necessary to protect them from severe cold or drafts. Various indoor and
outdoor systems are available.

Regardless of the age or production stage, the principal objective of all housing should
be the comfort or well-being of the animals. Comfort affects directly the feed intake,
fertility, longevity, health and production of each animal. Farmers who neglect
animals or fail to provide housing conditions that satisfy sound animal welfare
considerations cannot operate effectively and should find some other employment.

Click here to obtain more information on feeding, health and reproduction in dairy
herds.

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