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DIARY ECONOMICS
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Economics for 10 dairy cows:

A. Fixed investment:
  1. Cost of 10 cows @ Rs. 35,000.00/cow: Rs. 3,50,000.00
  2. Cost of building, 50 sq. ft./cow @ Rs. 300/sq. ft.: Rs. 1,50,000.00
  3. Equipments @ Rs. 750/cow: Rs. 7500.00
Total fixed investment: Rs. 5,07,500.00

B. Fixed cost:
  1. Interest at fixed investment @ 12%: Rs. 60,900.00
  2. Depreciation on buildings @ 10%/annum: Rs. 15,000.00
  3. Depreciation on equipments @ 20%/annum: Rs. 1,500.00
  4. Insurance @ 6% of the cost of animals: Rs. 21,000.00
  5. Cost of labor: Rs. 60,000.00/annum
Total fixed cost: Rs. 1,58,400.00

C. Variable cost:
  1. Cost of concentrates @ Rs. 15.00/kg: 1320*15*10= Rs. 1,99,500.00 As 4kg concentrates fed to cow in milking for 300 days: 4*300=1200 2 kg concentrates fed to cow in dry period of 60 days: 2*65=130 Total concentrates= 1320kg
  2. Cost of cultivation of green fodder: Rs. 50,000.00 As cost of cultivation of 1 acre of land is Rs. 25,000.00 & 2 acre of green fodder can fulfill requirement of 10 cows.
  3. Cost of dry fodder @ Rs. 2.00/kg: 1525*2*10= Rs. 30,500.00 4kg dry fodder/day/cow for 300 days: 4*300=1200 5kg dry fodder/day/cow for 65 days: 5*65=325
  4. Veterinary charges @ Rs. 500.00/cow/year: Rs. 5,000.00
  5. Electricity charges @ Rs. 250/month: Rs. 3,000.00
  6. Miscellaneous charges @ Rs. 250/cow/year: Rs. 3,000.00
Total variable cost: Rs. 2,90,500.00

D. Total cost: total fixed cost + total variable cost
Total cost: Rs. 4,48,900.00

E. Returns:
  1. Sale of milk : 12 liters/cow/day @ Rs. 16.00/liter: Rs. 5,76,000.00
  2. Sale of manure @ Rs. 1,000.00/cow: Rs. 12,000.00
  3. Sale of empty gunny bags @ Rs. 20.00/bag: 20*177: Rs. 3540.00
    1 bag contains 75kg feed, so total bags used come out to be 177.
    4. Total returns: Rs. 5,89,540.00
F. Net returns/year: Rs. 5,89,540.00 – Rs. 4,48,900.00 = Rs. 1,40,640.00

G. Net return/cow/year: Rs. 14,064.00

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Developed by :
Jaspal Singh
(Ex. M.V.Sc Scholar )		  Dr. Pranav Kumar
(Assistant Professor) 		Amandeep Singh
(Final Year B.V.Sc & AH student)
Division of Veterinary and Animal Husbandry Extension Education
Faculty of Veterinary Sciences and Animal Husbandry, R.S. Pura, SKUAST Jammu