Buffallo Milk Production and Distribution With Good Returns

Opportunity Snapshot

  • Country: India India
  • Industry: Agriculture
  • Stage: Start-up
  • Investment size: $30,000 / min. $10,000
  • Type of investment: Debt, Equity
Invest in Buffalo Milk Production in India This is a project about Buffallo milk production and distribution starting with 100 buffallows which may produce at least 800 Lts. of milk per day. Image courtesy of Nedra, 2009, Flickr CC.

Investment Opportunity

This is a project about Buffallo milk production and distribution starting with 100 buffallows which may produce at least 800 Lts. of milk per day.

The return of return ratio would be 50% of the net invested money.

No. of units (BUFALLOWS): 450
SPACE CONCERNING PER 10 UNIT: 20 Meter X 10 Meter = 200 Sq. Meter.
Total Unit Ground Sq. Required: 200 Sq. Meter x 450 = 90000 Sq. Meter.
Land Required in Acre: 25 Acres.
Cost of Land (Apprx.): 2 Crore.
Cost of units (Apprx.: 1.2 Crore. (Apprx. Minimum).
Total Investment: 3.5 Crore.

Total Expenditure per day/ unit :
1. Dry Grass: 20 Kg./ unit, 20 Kg. x 350 = Rs. 7000
2. Green Grass: 20 Kg./ unit, 20 Kg. x 350 = Rs. 5000
3. Cotton Brid (Khod): 05 Kg./ unit, 05 Kg. x 350 = 35 x 600 = Rs. 21000
4. Nutrition Powder : 02 Kg./ unit, 02 Kg. x 350 = 07 x 800 = Rs. 5600
5. Medicines: As required.
6. Workers : 60, 60 x 150 = Rs. 9000
Average Total Expense = Rs. 47600
Total Income per day/ unit:
Average capacity of milk by one unit = 6 Kg./ 12 Hrs. = 12 Kg./ day.
Average fat of milk per kg. = 6 to 7.5
Average price of fat = 3.5 to 3.75/fat
Average price of mild per kg. = Rs. 26.75
Average Total milk production/day = 12 x 350 = 4200 kg.
Average gross income/ day = 4200 kg. x 26.75 = Rs. 112350
Net Income per day = Total Income – Total Expenditure = Rs. 112350 - Rs. 47600 = Rs. 64750
1. Total Average Gross Income/ Month = Rs. 33, 70,500
2. Total Average Gross Expense/ Month = Rs. 14, 28,000
3. Total Average Extra Expense/ Month = Rs. 02, 00,000
(Medicines and other expenses)
Total Net Income/ Month = Rs. 17, 42,500
Total Net Income/ Year = Rs. 2, 09, 10000
Average Rate of Return/ Month = Total Income x 100
Total Investment = 1742500 x 100 = 35000000 = 4.978 %
Average Rate of Return/ Year = 4.978 x 12 = 59.76 % ∞ 60 %

Competitive Advantage

What distinguishes our business model from the traditional ones os that in addition to the milk production init we will use the farm also for Bio-Gas production, which we will sell to farmers.

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