about dairy cows

8/4/2019 About Dairy Cows

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About Dairy Cows

Dairy farming has been part of agriculture for thousands of years. Dairy cows are bred

specifically to produce large quantities of milk.

Dairy cows are required to give birth to one calf per year to continue producing milk. They areusually artificially inseminated within three months of giving birth.

These high milk producing cows are only productive for an average of 3 years, after which theyare culled and the meat is normally used for beef.

Global milk production

There are around 245 million cows producing milk across the world. The European Union is thelargest milk producer and has about 25 million dairy cows. This compares with 10 million in

North America and nearly 6 million in Australia and New Zealand. Milk production is also onthe increase in South-East Asia, including countries not traditionally noted for their milk

consumption, such as China, which now has over 12 million cows producing milk.

Higher milk yield

Over the last fifty years, dairy farming has become more intensive to increase the amount of milk

produced by each cow. Extreme dairy breeds such as the Holstein-Friesian, the breed mostcommon in the UK, Europe and the USA have been bred to produce very high yields of milk.

Around 22 litres per day is typical in the UK. The yield in the US is even higher at up to 30 litres

per day. Milk production per cow has more than doubled in the past 40 years. If they were

producing just enough to feed their calves, as nature intended, this would be about 5 litres a day.

Grazing and housing

In the UK most dairy cows still have access to grazing on pasture for part of the day in summer,

but more cows are being kept indoors for longer, or even all year round. This is known as zero

grazing, and is increasingly used in North America and parts of the UK for large and highyielding herds.

Where they do not have access to pasture, cows are often housed in sheds. Some sheds have

outdoor yards.

Intensive dairy farming results in an increasing number ofwelfare problems for dairy cows.
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Where do cattle come from?

American cattle ranch Compassion in World Farming / Martin Usborne

Cattle were domesticated as long ago as the Neolithic age and have been kept as livestock ever

since for their meat, milk and hides.

Historically there was less distinction between dairy cattle and beef cattle, with the same breeds

used for both milk and meat. However, in the developed world today farmers generally keepeither beef or dairy cattle. Through generations of selection, dairy breeds, such as the Holstein-

Friesian, are bred specifically to produce very high volumes of milk.

The calves of dairy and beef cows are likely to have very different lives. Beef calves are

generally slaughtered for beef after one to two years. Female dairy calves are usually reared on

for milk production. Dairy cows produce some male calves which are generally less suitable forbeef production. Sadly, some of these are either shot at birth or could be exported to low welfare

veal farms outside the UK. Fortunately the number of calves being exported from England,

Scotland and Wales is low currently, but several thousand animals are exported to the continent

each year from Northern Ireland.

Due to co-operation between Compassion in World Farming, the RSPCA and the industrythrough the Calf Stakeholder Forum, more male dairy calves are now reared humanely for beef

and the number of calves being shot at birth has greatly decreased. There is more work to do -80,000 or so are still shot every year.

Beef cattle tend to lead a largely natural life, with many grazing outdoors on grass. Even thoughmany cattle in the UK, Ireland and Northern France are fattened on grass, there is an increasing

trend to fatten cattle indoors across most of Europe. In indoor systems, beef cattle are commonlyhoused on slatted floors in crowded conditions, which increases aggression and can lead to

severe injuries and lameness.


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Dairy Farming in India

chillibreeze writerRadhika Jayadevan

The dairy sector offers a good opportunity for those who arelooking for new and expanding markets. While the farming sector

is more or less stagnant, the dairy sector has seen much activity. Inthe past 15 years, milk production in India has doubled and is now

over 100 million tons a year thus becoming Indias No.1 farm

commodity.

India s milk production is expected to grow at about 3 per cent per

annum. However, due to increasing population, per capita

availability of milk is expected to increase by only about 1.5 percent per annum. For an economy growing at about 8 per cent per

annum, this increase in availability will be grossly inadequate.Production growing at only 3 per cent and consumption growing atmore than double the rate leads to a mismatch between demand

and supply. This creates opportunities for new entrants to this

industry.

Role of cooperatives:

The presence of milk cooperatives all over the country helps to organize the industry and givethis sector a distinct advantage. Cooperatives allow for much easier marketing of the end product

as compared to other businesses. Cooperatives assure the farmer of not only a market for their

product but also take care of logistical issues like transportation and containers. The farmer is

spared these costs as well as the cost of putting up a retail outlet.

Cooperatives allow for stable selling rate which does not change even when they yield is surplus.Payments are guaranteed to milk producers and ensured within a maximum of 30 days.

Cooperatives play an important role by eliminating middlemen and the associated costs.

Role of State and Central Government:There are several financial incentives provided by the governments for setting up infrastructuralfacilities for milk production. The tenth plan outlay for animal husbandry and dairying was Rs.

2500 crores.

The National bank for Agricultural and Rural Development (NABARD) assists farmers with

loans and refinancing facilities for dairy farming. The interest charged ranges between 12% to

13% depending on the amount of loan taken. Loans are to be repaid in monthly installmentsusually within a period of 5 years.

There are several other factors that make dairy a safe sector to venture into. They are:

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The demand for milk and its products is active year round. Demand for Milk is increasingday by day.

Dairy farming does not need skilled labor, thus reducing costs and making availability oflabor easy.

Unlike other agricultural sectors, Dairy is not dependant on rains and production goes onyear round.

Returns on this business are available within a month. Today, virtually no other businessoffers such a short gestation period.

Use of by products provides additional income and increases returns. For example dungcan be used to produce biogas for cooking and even as manure and compost.

Veterinary Aid is available at most of the villages in India. There is no direct competition from the foreign counterparts.

In India, farmers carry on dairy activity secondary to their main agricultural activity. Also,

dairying is carried on in a traditional manner as was being done by past generations. Forexample, the same patterns of feeding and watering are followed as was being done years ago.

Lack of scientific and modern methods, proper training and proper counseling regarding aresome reasons why a dairy might fail. Another reason why a dairy might incur losses is that thefarmer is unaware of the costs incurred and the economics of his day to day business.

Training:Getting some initial professional training would help enhance productivity of the business.

Opportunities for training are available with most of the:

Agricultural/Veterinary Universities of various states Krishi Vigyan Kendras State Department of Animal Husbandry

National level organizations like National Dairy Research Institute (NDRI) Karnal(Haryana) provide training on rearing of dairy animals and manufacture of milk products.

Alternately training facilities are also available in some non-governmental organizationsthat are active in farming sectors.
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Dairy Farming

1. IntroductionDairying 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 dairyfarming. 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 millionmetric 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,
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digging of well, commissioning of diesel engine/pumpset, electricity connections, essential

servants' quarters, godown, transport vehicle, milk processing facilities etc. can be considered forloan. 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 visitprogressive 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. Nearnessof 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, experienceof 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 beprovided 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 asAnnexure I.

5.Scrutiny of Schemes by banks.The scheme so formulated should be submitted to the nearest branch of the bank. The bank'sofficer 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 thefinancing bank's branch.

2. Availability of good quality animals in nearby livestock market

3. Availability of training facilities.
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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 Cost2. 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, othermiscellaneous 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 thefunds is verified and constant follow-up is done by the bank.

7.Lending terms - General

7.1OutlayOutlay 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 ofinterest as 12 % p.a.
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7.4 SecuritySecurity will be as per NABARD/RBI guidelines issued from time to time.

7.5 Repayment period of loanRepayment 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.

7.6InsuranceThe 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 applicableinput 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. GENERALi) Nature and objectives of the proposed schemeii) Details of proposed investments

iii) Specification of the project area

iv) Name of the financing bank branchv) 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 costiii) Site map

iv) Particulars of land development, fencing, gates, etc.
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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 cutterii) Silo pit

iii) Milking machine

iv) Feed grinder and mixer

v) Milking pails/milk cansvi) Biogas plant

vii) Bulk coolersviii)Equipment for manufacture of productsix) 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 speciesii) Proposed breed

iii) Source of purchase

iv) Place of purchasev) 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 ratevi) Mortality(%)
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- Adults

- Young stock

g) Herd projection (with all assumptions) :

h) Feeding :i) Source of fodder and feed - Green fodder

- Dry fodder

- Concentratesii) Fodder crop rotations

- Kharif

- Rabi

- Summeriii) 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) Sourceii) Location

iii) Distance (km.)iv) Availability of labour and other staffv) Types of facilities available

vi) If own arrangements are made -
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a) Employed a veterinary doctor/stockman/consultant

b) Periodicity of visitc) Amount paid/visit (Rs.)

vii)Expenditure per animal per year (Rs.)

k) Electricity :i) Sourceii) Approval from SEB

iii) Connected load

iv) Problems of power failurev) Arrangements for generator

l) Water :i) Source

ii) Quality of wateriii) Availability of sufficient quantity for drinking, cleaning and fodder productioniv) If investment has to be made, type of structure, design and cost

m) Marketing of milk :i) Source of sales

ii) Place of disposaliii) 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 expectedii) Manure - Qty./animal

Price/unit (Rs.)

iii) Empty gunny bags

- Number- Cost/bag (Rs.)

o) Beneficiary's experience :

p) Comments on technical feasibility :
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q) Government restrictions, if any :

3. FINANCIAL ASPECTS :

i) Project Cost

Sr.

No.Item Physical Unit and Specification Cost (Rs.)

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 :
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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 facilitiesiii) Govt. support /extension supportc) 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
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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) : 10Lactation days : 270

Dry days : 150

Freshly calved animals in 1st or 2nd lactation are purchased in two batches of fiveanimals each at an interval of 5 to 6 months.
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Cost of rearing calves not considered as it will be nullified by their sale value or retentionvalue.

Fodder cultivation considered in two acres and working capital for one crop / seasonconsidered. Two crops considered per year.

Manure utilised for fodder cultivation.

Feeding Schedule Per Day

Lactation Dry

Price (Rs.) Qty. (kg) Cost Per Day

(Rs.)

Qty. (kg) Cost Per Day

(Rs.)

Concentrate Feed 8.00 4 32.00 1 8.00

Green Fodder Home grown 25 0.00 20 0.00Dry Fodder 1.50 4 6.00 5 7.50

Total 38.00 15.50

Lactation Chart

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 92150Cost 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

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
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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 410607 88219 139240 10586 88219 98805 40435
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Agricultural Engineering

FARM MACHINERY AND PRIMARY PROCESSING

Introduction

Increase in agricultural production and value addition to the agricultural produce are two

important factors to usher in rural prosperity. While agricultural mechanization improves

production and productivity; post-harvest processing, either primary or final, adds value to theproduce. Agricultural mechanization helps in increasing production, productivity and

profitability in agriculture by achieving timeliness in farm operations, bringing precision in

metering and placement of inputs, reducing available input losses, increasing utilization

efficiency of costly inputs (seed, chemical, fertilizer, irrigation, water etc.), reducing unit cost ofproduce, enhancing profitability and competitiveness in the cost of operation. Agro processing

helps in the conservation of the produce and byproducts from qualitative and quantitative

damages; enables value addition to bring additional income and employment generation to thefarmers through the farm produce. However, these inputs of farm machinery and primary

processing are very capital intensive and majority of our farmers do not get the desired

advantages in view of the shortage of capital with them to acquire these assets. Therefore, an

arrangement to provide custom hiring service facility for these farm and primary processingmachinery to the farmers by engaging unemployed agricultural graduates will go a long way in

meeting the requirements.

Agro Service Centres were tried earlier but many of those units failed in view of the absence of a

regular source of income. Such units, which have a primary processing unit attached to it will

have a regular source of income. These units will also have a better scope for manpower

utilization round the year and better productivity/ income generation per unit of manpowerdeployed. This will give the added incentive to the agricultural graduates to not leave the unit

even if other job opportunities are available.

Importance of farm mechanization and agro- processing

The efficiency of mechanization can be judged from the fact that modern plough is about 200 to

300 % efficient than indigenous plough, efficient machinery helps in increasing productivity by

about 30% besides, enabling the farmers to raise a second crop or multi crop thereby makingIndian agriculture an attractive proposition. It has also transformed the way of life in rural areas

into a commercial one instead of being of a subsistence type. There is a need to double the food

production by 2020. This will call for raising more crops in a year thus limiting the turn around

time. Increased production will require more use of agricultural inputs and protection of cropsfrom biotic and abiotic stresses. This will call for greater engineering inputs which will require

development and introduction of high capacity, precision, reliable and energy efficient

equipment.

Earlier, it was considered that mechanization creates unemployment. The myth has been broken

and it has been observed that, agricultural mechanization besides increasing production and
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productivity, also generates income and employment opportunities. Several studies conducted in

different parts of India have shown that mechanization has helped in increasing production,productivity, generation of income and employment. Punjab, a highly mechanized state, employs

7.0 lakh laborers from adjoining states, out of which 3.5 lakhs are employed on a regular basis

and remaining during the main cropping season.

Total farm power availability has increased from 0.25 kW/ha in 1951 with animate power

contributing 97.4 per cent to 1.15 kW/ha in 1997 with animate sources contributing only 22.7 percent, mechanical sources 43.5 per cent and electrical sources 33.8 per cent. The availability of

draft animals is reducing, thus shortfalls have to be met mostly through electro-mechanical

power sources. The number of land holdings is increasing and holding size has declined from2.30 ha in 1970-71 to 1.57 ha in 1990-91. Small (1 to 2 ha) and marginal (below 1 ha) farms

numbering 78 per cent of the total number of holdings, cultivate only 32.1 per cent of the area;

whereas 20.4 per cent medium farms (2 to10 ha) account for 50.4 per cent of the cultivated area

and 1.7 per cent large farms (above 10 ha) account for 17.5 per cent of the cultivated area.However, it is heartening to note that average emerging land holdings are large enough for

mechanized farming as evidenced in Punjab and Haryana.

As discussed in the earlier paragraphs, one of the major constraints of increasing agricultural

production and productivity is the inadequacy of farm power and machinery with the farmers.

The average farm power availability needs to be increased from the current 1.15 kW/ha to atleast 2 kW/ha to assure timeliness and quality in field operations, undertake heavy field

operations like sub soiling, chiseling, deep ploughing and summer ploughing. Due to reduction

in the size of the holdings, it is difficult for the farmers to hold the machinery on their own. As a

result, the benefits of mechanization have been enjoyed by only a section of the farmers whohave large farm holdings. This problem can be solved by establishing agro service centres as

they will be able to provide the machinery on custom hire basis to these small and medium

farmers as and when it is needed. Increasing production and productivity will not be the onlyanswer for the upliftment of the farming community. Many other supports like storage,

processing and marketing arrangements at remunerative prices are required to enhance the

economic standards of the community. Provision of a primary processing centre for the produce

like rice, wheat, oil seeds, pulses etc. to make products like flakes, flour, dal, edible oil etc., willbe an instant source of value addition for those farmers. This will provide the agro clinics a

regular source of income. Also a large number of farmers suffer due to lack of service and repair

& maintenance facilities for their machinery. There is a need to have such facilities in theagriclinics to bring the services nearer to the farmers. Thus agro service centre with farm

machinery and primary processing provision will be a better solution provider to the farmers

besides creating self employment opportunities for the agricultural graduates and unemployed

youths.

Agriclinics on Farm Machinery & Primary Processing

The importance of Agriclinics on Farm Machinery and Primary Processing has been recognized

and GoI has given emphasis to make it a success. The scheme aims at supporting 5000 venturesannually for individuals or on joint group basis.
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The broad guidelines for bankers and entrepreneurs is given at Annexure I.

It is visualized that an agriclinic set up by an agricultural graduate with facilities to provide

service to the farmers in their production, post harvest primary processing operations and

attending to repair and maintenance works of their machinery and equipment will form the back

bone of the farming community to commercialize their agriculture.

Investment Components

The present model scheme includes almost all the basic equipment necessary for cropproduction, right from tillage upto bringing the produce to farmer's house/ market place. This

will also have a facility to process one or more number of the major agricultural produce grown

in the village/ area to add value for the farmers. There will also be a provision of repair and

maintenance of household goods and agricultural equipment being used in the area. Theinvestment component detailed below gives a general requirement of an agro service centre.

However, depending upon the agro climatic conditions and demand of individual centres,

necessary changes can be incorporated.

1. Tractor, trailer and implementsIn the present model, a 35 hp tractor is considered as it is suited to most of the soils in our

country and is sufficient enough for carrying out maximum of the works. Tractor HP can be

changed if any special operation is envisaged. Tractors perform a large number of operations,both mobile as well as stationary. Therefore, along with tractor, provisions of mould board

plough, trailer, cultivator, cage wheel, disc harrow, seed drill and other accessories are made.

2. Power Tiller/ Small TractorPower tiller is suitable for the paddy cultivation as well as for tilling small fields specially underwet land conditions. Many of the works what a farmer cannot perform with the help of bullocks

and tractors in growing paddy; power tiller can; thus it brings in a new hope to paddy growing

farmers.In the present model, a power tiller is considered, which besides performing tillage andpuddling operations can perform a variety of other stationary and mobile farm operations.

However, when puddling is not important and small distance haulage of smaller quantities

dominate the custom hire requirements a smaller tractor of 9-18 HP can be incorporated insteadof a power tiller. Necessary changes in the outlay can be incorporated accordingly.

3. Pumpset with accessoriesLarge number of farmers suffer due to lack of water during the critical periods of plant growth,

although water source is available. Availability of a portable pump set with the agriclinic will bea boon to such farmers to meet the critical needs.

4. Power thresher
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Quickest collection of clean grains after harvesting is a felt need of all the farmers to avoid post

harvest losses. A multipurpose power thresher matching to the HP of the prime mover isenvisaged under the scheme.

5. WinnowerWinnowing is the operation to separate grains from straw and chaff. A power driven winnower isconsidered under the present scheme.

6. Self Propelled ReaperSelf Propelled Reaper is a machine equipped with a prime mover and is used for harvesting fieldcrops like paddy, wheat, soyabean etc. Under the model, a self propelled reaper is considered.

7. SprayersSprayers are used to spray insecticides and pesticides on the crops for plant protection. Under thescheme, two manually operated and one power operated sprayers are considered.

8. Tools for repairing of machinesVarious tools are necessary for repair and maintenance in the case of failure of any machinery.

Accordingly, a provision is made under this head to have a complete set of tools to meet the day-

to-day repair works.

9. Primary Processing UnitA primary processing facility to process any or more of the farm produce like rice, wheat, pulses,oil seeds etc.; will enhance income generation capacity of the agriclinic, while enhancing the

productivity of the work force. The activity can be selected depending upon the produceavailable in the locality. A financial provision of Rs 0.50 lakh will be adequate to meet the

requirement.

10.Workshop ShedProvision of a workshop shed has been made to keep the machinery, tools etc. and to carryout

day-to-day repair and maintenance works. A shed area of 300 sq. ft is considered adequate to

meet the requirement

11.InsuranceAs the agricultural machinery are capital intensive in nature, an insurance provision is made

against theft, accident etc.

On the basis of the current market prices, the investment cost has been worked out as Rs. 6.82

lakh as detailed at Annexure II. Financial Viability: Thefinancial viability has been worked out
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based on certain assumptions given at Annexure III. The income and expenditure components

are given at Annexure IV. Calculation of NPV, IRR and BCR have been depicted in Annexure V(a), whereas the repayment schedule has been shown in Annexure V (b). The salient features of

the economics of the agri clinic are as follows: Net Present Worth @ 15 % discounting factor =

Rs. 1,80,942.97 ; Benefit Cost Ratio = 1.09 : 1 ; Internal Rate Return = 24%. Average Debt

Service Coverage Ratio = 1.72:1

ANNEXURE - I

BROAD GUIDELINES

1. Objectives

1. To supplement the efforts of government extension system2.

To make available supplementary sources of input supply and services to needy farmers3. To provide gainful employment to agriculture graduates in new emerging areas inagricultural sector.

2. Concept / Definition :-

Agroservice Centres are envisaged to provide input supply, farm equipment on hire and other

services. In order to enhance viability of the ventures, Agriculture Graduates may also take upcommercial activity in agriculture and allied areas along with the Agroservice Centres.

3. Eligibility :-

The scheme is open to Agriculture Graduates/Graduates in subjects allied to agriculture like

agricultural engineering, horticulture, animal husbandry, forestry, dairy, veterinary, poultryfarming, pisciculture etc.

4. Project cost & coverage :-

The project may be taken up by Agriculture Graduates either individually or on joint/group basis.

The outer ceiling for the project by individual would be Rs.10 lakh and for the project by groupwould be Rs.50 lakh. The Group may normally be of 5, of which one could be a management

graduate with qualification or experience in business development and management. However,

for availing of refinance under ARF, the outer limit of the project cost would be Rs. 30 lakhsubject to ceiling of Rs. 20 lakh towards refinance availment.

Project with outlay above Rs. 30 lakhs may be submitted to NABARD for prior sanction.

5. Margin Money (Down payment) : As per the RBI norms.

6. Interest rate for ultimate borrowers:
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Banks are free to decide the rate of interest within the overall RBI guidelines. However, for

working out the financial viability and bankability of the model project we have assumed the rateof interest as 12% p.a.

7. Interest rate on refinance from NABARD:

As per the circulars of NABARD issued from time to time.

8. Security:

Banks may take a decision as per RBI Guidelines.

9. Results of financial analysis are as under:

BCR : 1.09:1

NPW @15% DF : Rs. 1,80,942.97

IRR : 24%

10. Repayment :

The period of loan will vary between 5 years to 10 years depending on the activity. Therepayment period may include a grace period (to be decided by the financing bank as per the

individual scheme) of a maximum of 2 years.

11. Selection of borrowers :

The selection of borrowers and location of the projects may be done by the banks in consultationwith Agricultural Universities / KVKs etc in their area of operations, if necessary.

12. Terms and conditions of refinance by NABARD :

(a) Quantum of refinance : 100% of the bank loan.(b) Rate of interest on refinance : As decided by NABARD from time to time.

(c) Margin Money assistance from 'Soft Loan Assistance Fund' of NABARD : A maximum of

50% of the margin prescribed by banks, to meet the shortfall in borrower's contribution, if any,

where the bank is satisfied that the prospective borrower is unable to meet the margin moneyrequirements, could be given by NABARD. Such assistance /loans to banks will be without anyinterest but the banks may charge a service charge of 3% p.a. from the beneficiary.

(d) Eligibility norms : Eligibility to draw refinance by banks will be determined as perinstructions issued by NABARD from time to time.
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(e) Mode of refinance : Refinance will be extended under Automatic Refinance Facility (ARF) as

well as schemes with prior sanction depending upon the project outlay and amount of refinance.

13. General :

All other terms and conditions, banking procedure and lending norms as are normally applicableto project lending and schematic refinance mutatis mutandis will also be applicable to financingof agriclinics and agribusiness centres.
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Buffalo Milk Versus Cow Milk

The share of buffalo milk production to the world dairying by Asia is 96.79 per cent. India is the

top and recognized player in buffalo milk production followed by Pakistan, China and Italy. It is

proudly said that these buffaloes form the back bone of dairying in India and the term milk inIndia refers to that from either cow or buffalo or a combination of these two but the PFA act

(1955) says that milk sold without any qualification shall be considered as buffalo milk.

As per the nutrient components, buffalo milk contain higher proportions than cow milk. The compositi

between buffalo and cow milk are reflected on their

properties. Milk from buffalo is the preferred candi

milk and dairy products of western and traditional (and is nutritionally superior.

Almost all the products that are prepared from cow prepared from buffalo milk too with certain limitati

differences in composition and physico-chemical pr

differences have been fully exploited to the advantaproducers, processors and consumers. It is no wond

commands a premium price from collection centres

based farmers.

The inherent properties of buffalo milk like high to

superior whiteness and viscosity render it eminently

manufacture of traditional (indigenous) milk produc

paneer, kheer, payasam, malai, kulfi and ghee. Cowhand yields a soft coagulum making it suitable for preparing channa and other channa basedproducts like sandesh, rasagolla, chumchum and rasamalai.

The buffalo milk contains more fat, solids not fat and total solids and hence yield of productsprepared from buffalo milk, be it cream, butter, cheese or condensed milk will be always higher.

The higher fat content in buffalo milk helps in increasing the quantity of milk supplied to the

cities by toning (toned milk is milk in which the fat content has

about dairy cows

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