4 Lakh income /month from 3 Acreland - possible?

Hi Friends,
I am another IT professional who want to turn into farmerJ. Currently living in USA and planning to return to India and became full time farmer. Will do integrated farming with Aquaponics , Greenhouse and Animal farming
Objective is to generate Rs.4 Lakh /month from 5.5 acre of land.
Data and details:
·        Land: Have 2 separate farm land, 2.88 acre and 2.56 acre. 2.88 is on main road another one is in interior.
·        Budget: Total 50 Lakh to 75 Lakh.
·        Have setup to sell produce( Veg, Milk, Fish, Goat)  directly to consumer, no broker in middle

I am hoping to get:
·        Rs 1.5 Lakh/month profit from 50 cow dairy
·        Rs .5 Lakh/month profit from Goat Farming, 500 Goat
·        Rs 1 Lakh/month profit from 10K sqft Aquaponics
·        Rs .5 Lakh/month profit from Freshwater prawn and Quile farming
·        Rs .5 Lakh/month profit from  plantation in 2.56 acre land

Can you guys please suggest me if I am hoping to much from my land, I have virtually unlimited (can go up to 1cr) budget but Land are limited.

Dear Brother,

Dream is good but to be little bit close to reality. Are you trying to generate your US IT income from farming? there are several in depth discussion/thread on this farmnest forum for each subject/project you are looking for.

In nutshell given objective is unrealistic .

just an expa 50 cow dairy - you need minimum 8 acere land.

in 50 cows only 35 cow can ideally maintained for milking and an average 10 ltr milk per cow makes 350 lts x 30 days= ie 10500ltr per month. At present cost maximum can earn 4-6 rs per ltr , so milk income may restricted to rs 50,000 per month.

pls do more homework with the help of farmnest.

tks/rgds
rajan mathew

Hi Rajan,

Thanks for you time and comment.

Lets start with  8 acre for 50 cow:
  Dairy – Planning to start with Dairy a can sell milk directly to consumer. I come to know that 40sqft indoor and 80sqft outdoor space required per cow.  So, 50 cow  = 5040 = 2000 indoor pace, 5080 = 4000 outdoor space total 6000sqft required, I am allocating to total 10000sqft (3000sqft indoor + 7000 outdoor)
o  Budget : 25 Lakh
§  Land utilization                                                        = 10000sqft
§  Infrastructure development                                      = 10 Lakh
§  Cow cost 50 * 15000                                                = 7.5 Lakh
§  Hydroponics fodder system                                      = 2 Lakh
§  Milk packaging machine                                            = 3 Lakh
§  Misc equipment’s                                                      = 2.5 Lakh
o  Estimated income- any time 32 cow are milking, 32* 10 liter per day = 320
§  I can easily sell it @ 25 INR liter= 320250              = 8000 INR daily
§  Labor cost 3 * 5000 = 15000 monthly                      =  -500 INR daily
§  Fodder +Misc cost 50
50                                              = -2500 INR daily
TOTAL 5000 INR daily *30                                              =150000 monthly
o  Assumption : Income from sale of manure will cover some miscellanies cost

Hi
There are some major flaws in your calculations
For example

  1. I dont think there are any good cows which you can get for 15000 these days, even 10 lt ones.
  2. You have not accounted for concentrates. They easily make up about 30% of the expenses, depending on which items you use.
  3. The hydrofodder system, is it meant for all the 32 cows? And costing only 2 lacs?

I believe it is better to have higher yielding cows, at least 20 lts per day so that you can expect better return for all you infrastructure and fodder investments. Of course, they cost more.

Good luck.
Nikhil

Nikhil

Thawait – Happy to know you’re thinking of direct to consumer route to eliminate middlemen. Marketing / supply chain is one aspect most farmers, even educated ones, ignore and only think of it as an afterthought. Few people realise that agricultural production is only half the story. Improvements in production usually give you incremental gains. But if you get your marketing right and are able to sell direct to consumer, there are big big margins involved. So good luck!

The day dreaming based on incorrect details can be fatal.Kindly contact some expert consultant and then proceed.For 50 cows you require minimum 5 labourers(EVEN IF ENTIRE SYSTEM IS MECHANISED).To run your milk packing machine min 2-3 persons are required.The cows do not cost 15000/-Be realistic and proceed.Look before you leap.A good cow may cost 25 to 35 thousand Rupees.Cater for unforseen expenses e.g. medical check up of cows etc.

Dear Friends,

Thanks for your time. Here are the source of my calculation

Hydroponic  Fodder : Production of Green Fodder By Hydroponic Method Rs. 60,000 fro 10 cow
youtube.com/watch?v=neFqY5oWNII

Housing for Cow:
Ref: roysfarm.com/dairy-farming-in-india/

Good housing play an important role for keeping the animal healthy, diseases free and productive. For proper production you should give your animal required space inside the house. Generally 40 square feet inside shed and 80 square feet open space is required per animal. In small scale production for 20 animals, you have to ensure availability of 3000 square feet land area. For medium scale producers with 100 animals, 13,000 to 15,000 square feet space is required. However, ensure availability of all types of essential facilities in the house. Essential facilities includes proper ventilation, sufficient flow of fresh and clean air, sufficient space etc.

Price of cow - As per your suggestion I am taking it 25,000 now.

If you keep 25K/animal you will get a aniamal in 5th or 6th lactation(animals in 2nd and 4 yields better). or you can get good animal at this price only when there is drought. or you may get jersey animals for this price.
(Check-out lactaion curve by googling to understand better on yield)
In my locality at present 55-60K for animal which yields 15l average.( we used to get same for 30K, 2 yeards back when there was drought)

Thumb rule:
You can keep 1.5lac/animal(includes HF animals,barn, small labour shed, milking machine) as investment.
Returns: 3000/animal/month(count only lactating animals). This is at 24rs/l of selling price.
You have to maintain 70%-30% ratio of lactating-dry animals. If you fail this will result in decrease in profit.
for 10 animal you need 1 labour and for 5 labours(or for 50 animal) you need a manager(manager is needed to maintain record of insemination, yield etc)

to add that,  Hyrdronipus needs seeds to generate fodder and every year seeds price whether it is Corn, barley …etc increasing. At present market Corn price is Rs 14-16/Kg which may produce 6kgs grass , costing makes Rs 2.5/kg. It is not going to viable as you can produce napier type grass less tha 0.50/kg in open land.

Another thing we need to consider down the line 6 years there would serious shortage for staple foods like Corn and other seeds. So better we depend something which can be sustainable and commercial viable.

tks/rgds
rajan mathew

As per comment recived so far I have updated my calculation for Dairy, got good comment about cost of cow and fodder. Can anyone please confirm the Housing space required…

Project Plan: In 2.88 acre land (124000sqft)
• Dairy – Planning to start with Dairy a can sell milk directly to consumer. I come to know that 40sqft indoor and 80sqft outdoor space required per cow.  So, 35 cow  = 3540 = 1400 indoor pace, 3580 = 2800 outdoor space total 4200 required, I am allocating to total 10000sqft (2500sqft indoor + 7500 outdoor)
o Budget : 33 Lakh
 Land utilization = 10000sqft
 Infrastructure development  = 8 Lakh
 Cow cost 35 * 50000 = 17.5 Lakh
 Hydroponics fodder system = 2 Lakh
 Milk packaging machine = 3 Lakh
 Misc equipment’s = 2.5 Lakh
o Estimated income- any time 25 cow are milking, 25* 15 liter per day = 375
 I can easily sell it @ 30 INR liter= 37530 = 11250 INR daily
 Labor cost 3 * 5000 = 15000 monthly =  -500 INR daily
 Fodder +Misc cost 35
100 = -3500 INR daily
TOTAL 7250 INR daily *30 =217500 monthly
o Assumption : Income from sale of manure will cover some miscellanies cost
o Source of Housing/ Land utilization roysfarm.com/dairy-farming-in-india/
o Done with market research and can easily sell milk @ 30+ Rs.
o Cost of cow: olx.in/q/cows/c-811

Your link says exactly what I said below. You can get Jersey or Cross breed cows at 35K. Jersey yields less. More over most of the ads dont say animal in which lactation.

Your cost on Hydrophonic machine is way beyond low. you need at least 1 ton/day machine. Please take quote from any company( I know 1 company in Ahmedabad, you can google to get contacts)
One of forum member is using it he got that machine for 20lacs.

Labour: Why are you so conservative on count? two of forum members commented on this below.
3 men can handle so big dairy only if they own the business, not paid labours.  MORE OVER IT IS A ZERO HOLIDAY BUSINESS. If 1 gets sick other two cannot maintain.

See below link this may help you
dairyfarmguide.com/dairymodel/dairymodel.html

for the calculation purpose experts view that aprx Rs 26.5 per ltr to be spent and average yeild can calculate only 10lts per day. Please go through several threads on this forum and then come up with new questions which will help every one on the board to understand better. Other wise we all are just repeating same thing over and over.

I think if do this with proper planing and marketing it is possible. I have friend in Nasik who worked before in USA also left IT job and started the dairy.He has around 30-35 cow and earning around 100000-125000 rs per month…He have only two labor and he is also contributing. Now days in all over india milk price is not less than 30 rs per litter…He told me usually milk dairy buying 25-26 rs per litter.
he has 4 acrs of land …they are growing fodder in own farm…and also buying some vitamin and protein cow food from outside also…
Also they are earning from selling cow dung and earning around 15000 rs per month…

To extract the milk from cow he bought machine from bangalore…

So it is not like a dream …in india Food and real estate business will never fail if do with planing and marketing…

You may want to read this interesting post on fodder cost for dairy… :

farmnest.com/forum/animal-farmin … -business/

[quote="ramnayak1"]
in india Food and real estate business will never fail if do with planing and marketing…[/quote]

Food, yes. Real Estate, absolutely not! Some people used used to think the same way about the U.S housing market until the 2008 collapse.

Yes real estate now a days not much fancy…

I am invested in property before 2 yrs in vadodara, Gujarat… same price almost…

Better to invest in Business… So my plan to sell two houses of property & buy agricultural land…& do more & more investment in dairy

farm…

It will be better… because every year cows / Buffalo gives birth…

So in almost 3 yrs we can double almost investment… ( exp. if i bought today a cow in 50000 rs …it calf after 3 years free of my investment )

So better to divert fund in business rather than extra properties.

Techies return from US starting dairy, we have quite many examples. See one of these in below link. Watchout prices. He is ready to provide training.
oxygenacres.com/

Thanks

as per your exp… where to go for training ? this banglore oxy farm or in dairy university ? like karnal or anand gujarat or kvk …

Your valuable guidance need as always.

With due respect to all the members who posted their comments on this,
Calculations on paper looks great and encouraging all the time since most of the time we overlook the negative part of the story.
There was a time in Andhra/telangana two years back farmers had to literally dump thousands of litrs of milk just because there were no takers as the milk production was in excess of what the processors could handle.in that period most of the private processors paid a meagre rs11/12 per ltr.even gov’t dairy planned for milk procurement holiday 2 days in a week.
The result was, farmers could not feed their animals properly and ended up selling their cattle to slaughter houses.
First of all dairy is not a business which runs purely on money, it requires lot of other things like how much time you can spend and minimum knowledge of health and nutrition management.simply the job  is challenging on day today basis.presently there are at least 3 to 4 dairy units in hyderabad up for sale which are worth of 30 to 40 crores.shall we assume that,all of them have not done proper exercise before starting their project or are they running out of money to run it further.only a dairy farmer of long standing can answer such type of questions.
It is not that, there are no successful dairy farmers but you should look at their strengths and their standing in the field(not investment Pont of view)
Lot of queries from forum members, asking whether to go for poultry or dairy?
Since I was associated with poultry for certain period of time, I can tell you a few things.
1)poultry has come to a stage where everything is standardised(like medication,nutrition,vet’s help and even wages to workers.) In case of dairy we are nowhere near to that standards.
2)economics of poultry can be calculated at the end of each batch,and your financial health can be judged.this is not the case with dairy.
3)medication in poultry is flock based,and in dairy it is individualistic.(this itself consumes lot of energy,money.)
4)poultry has got an organised association which is strong enough financially and can go to any length if their farmers are in trouble.(politically and financially.) In the case of dairy you can not hear even one voice in support or against.
5)poultry can be given a break after the particular batch is over if the owner wants it,but a dairy can never be closed as and when you wanted.even if you want to do so it is not easy to start again.
6)business of poultry can get stabilised within the initial period if the rate is good enough,but in dairy case this will take at least a couple of years.
          In my opinion, budget shall not be the constraint to start a business,only the fact that whether we fit in to the bill or not.
Hope I have covered to the best of my knowledge,and excuse me if I have gone a bit emotional in my reply.   
    Thanks& regards______prathap.

That prcie is “Branded” system.Maharstra and Goa did research and they are able to make Hydroponic  Fodder in fraction of cost. check out this link
youtube.com/watch?v=neFqY5o … r_embedded