2022

Project Report on Sheep Breed

Development in Andhra Pradesh

Dr. Vishnu Vardhan Reddy Pulimi

Veterinary Assistant Surgeon,
Animal Husbandry Department,
Government of Andhra Pradesh,
Phone no+91 9177568030
 ACKNOWLEDGEMENT

I have immense pleasure in presenting this Project on Breed development

of Sheep. The Subject is an interesting one. It gave us an opportunity to have a

detailed study on the subject and showed how things work in the practical world.

We came to understand and analyze the importance and the role of sheep and goat

breeding in India.

I had a great time working on the project and we have provided information

to the fullest of our knowledge and findings.

We wish all the best to Entrepreneurs who want to develop sheep breeding

as an entrepreneur opportunity.

Regards,

Dr. Vishnu Vardhan Reddy Pulimi

M.V.Sc (Animal Nutrition)
 PURPOSE OF THE DOCUMENT

The objective of this report is primarily to facilitate potential entrepreneurs

to provide an overview about Sheep Farming. The document may form the basis

of an important investment decision and in order to serve this objective, the

document covers various aspects of Sheep Farming, Breeding, breed

Development, finance and business management.

The purpose and scope of this information memorandum is to introduce the

subject matter and provide a general idea and information on the said area. All

the material included in this document is based on data/information collected

from various sources and is based on certain assumptions.

Although, due care and diligence has been taken to compile this document,

the contained information may vary due to any change in any of the concerned

factors, and the actual results may differ substantially from the presented

information. The prospective user of this memorandum is encouraged to carry out

additional diligence and gather any information he/she feels necessary for making

an informed decision.
 DISCLAIMER
This project report has been prepared by “Dr. Vishnu Vardhan Reddy Pulimi” and is

for information purposes only. This report does not constitute an offer, invitation or inducement

to invest in any sector or industry. Neither the information contained in this project report nor

any further information made available with the subject matter contained herein will form the

basis of any contract. Any recommendations contained in this document must not be relied

upon as investment advice based on the recipient's personal circumstances. In the event that

further clarification is required on the words or phrases used in this material, the recipient is

strongly recommended to seek independent legal or financial advice.

The material in this project report is general information intended for recipients who

understand the risks and opportunities associated with making investment in Sheep Breed

Development Project.

It does not take account of whether an investment, course of action, or associated risks

are suitable for the recipient. This report does not purport to be comprehensive or to contain all

the information on which a prospective investor can make an investment decision. The

information contained herein is based on publicly available information and sources, which we

believe to be reliable, but we do not represent it as accurate or complete. The recipient of this

report must make his own investigation and assessment of the information presented herein.

No representation, warranty or undertaking, express or implied, is or will be made or

given and no responsibility or liability is or will be accepted by us, in relation to the accuracy

or completeness of this project report or any other written or oral information made available

in connection with the information presented herein. Any responsibility or liability for any such

information is expressly disclaimed.

 CHAPTER – I

Highlights of the project report

A: About the promoter

Name of the
1 :
Entrepreneur

2 Address :

3 Contact No. :
4 Age :

5 Experience :

B: Project profile

1 Name of the Establishment : Sheep Breed Development Unit

2 Project Location :
3 Types of Animals :
4 Unit Size :
5 Product :
6 Cost of the Project :
7 Bank Loan :
8 Margin Money :
9 Interest Rate :
10 Repayment period : 5 years
11 Financial Indicators :
11a BCR (Rs, 5 years) :
11b NPV (Rs, 5 years) :
11c IRR (%) (5 years) :
Economics of the Sheep Breed Development

S.No Parameter value

Details regarding the Animals
1 Breed of the Animal Nellore Jodipi
2 Type of rearing Intensive
3 No of Ewes 250
4 No of Rams 14
5 Cost of breeding Ewe 10000
6 Cost of breeding Ram 15000
7 Insurance cost of breeding Ewe and Ram (%) 4%
Production and Technical Assumptions
1 Age at maturity in months 12
2 Kidding interval in months 8
3 No of kiddings per 2 years 3
4 Kidding percentage 90
5 Average litter size 1
6 Sex ratio 1:1
7 Mortality rate of kids (%) 5
8 Culling rate of Ewes (%) 5
9 Age of kids at the time of sale in months 6
10 Sale price of male lambs 8500
11 Sale price of female lambs 7500
12 Manure production/Sheep/day in kg 1
13 Cost of manure/ton 8000
14 Sale price of culling Ewe 10000
15 Sale price culling Ram 20000
Feeding Details of the animals
1 Average body weight of breeding Ewe in kg 40
2 Average body weight of breeding Ram in kg 50
3 Green fodder requirement for breeding Ewe in kg/day 2.8
4 Green fodder requirement for breeding Ram in kg/day 3.5
5 Dry fodder requirement for breeding Ewe in kg/day 0.3
6 Dry fodder requirement for breeding Ram in kg/day 0.4
7 Concentrate feed requirement for breeding Ewe in kg/day 0.4
8 Concentrate feed requirement for breeding Ram in kg/day 0.5
9 Birth weight of the kids in kg (Assumption) 1
10 Body weight of the kids at the time of sale in kg (Assumption) 15
11 Average green fodder requirement of kid upto sale in kg/day 0.8
12 Average dry fodder requirement of kid upto sale in kg/day 0.1
13 Average concentrate feed requirement of kid upto sale in kg/day 0.2
14 Cost of green fodder/kg 1
15 Cost of dry fodder/kg 3
16 Cost of concentrate feed/kg 20
17 Cost of mineral mixture/kg 80
 Details regarding the land development and shed construction
1 Bore well and water supply system (Lump sum) 150000
2 Land availability in acers 5
3 Land development/acre 20000
4 Shed area required/animal in sq. ft. (Ewe and Ram) 10
5 Cost of breeding Ewe and Ram shed construction/sq. ft. 200
Electrification cost in large animal shed (% over civil
6 5
construction)
7 Shed area required/kid in sq. ft. 5
8 Cost of calf kid construction/sq. ft. 200
9 Electrification cost in calf shed (% over civil construction) 5
10 Area store room cum office/animal in sq. ft. 2
11 Cost of construction of store room cum office room/sq. ft. 300
12 Depreciation of civil structures % 5
Details regarding the labor
1 No of sheep can be maintained by each labor 100
2 Wage paid per each labor 10000
Details regarding the equipment and veterinary aid
1 Cost of chaff cutter 50000
2 Minor equipment cost/animal/year 30
3 Depreciation on equipment % 10
4 Cost for veterinary aid/Ewe and Ram/year 100
5 Cost for veterinary aid/kid/year 50
6 Water and electricity charges/Ewe and Ram/year 100
7 Water and electricity charges/kid/year 50
8 Miscellaneous expenditure/Ewe and Ram/year 50
9 Miscellaneous expenditure/kid/year 20
10 Discount factor (for financial indicators) 5%
Details regarding the finance
Total cost of the project (Non-recurrent + Recurrent cost of 1st
1 4996571
cycle)
2 Entrepreneurs margin (%) 60
3 Bank margin (%) 40
4 Interest on bank margin (%) 7%
5 Repayment tenure/Project tenure in years 5
Estimation of Total Non-Recurring Cost of the Project

Estimation of Non-Recurring Cost

S.No Parameter Unit cost No of units Total cost
1 Cost of Ewes 10000 250 2500000

2 Cost of Rams 15000 14 210000

3 Cost of Insurance for animals 4% Lump sum 108400

4 Land development 20000 5 100000

5 Cost of construction of shed for Ewes and Rams 200 2640 528000

6 Cost of construction of shed for kids 200 1687.5 337500

7 Electrification of sheds 3 Lump sum 43275

8 Cost of construction of store cum office room 300 528 158400

9 Bore well and water supply system 150000 Lump sum 150000
10 Cost of chaff cutter 50000 1 50000
11 Cost of Minor equipment 30 264 7920

Total Non-Recurring cost 4193495

Estimation of Recurring Cost of the Project

Estimation of Recurring Cost

S.No Parameter Year 1 Year 2 Year 3 Year 4 Year 5
1 Cost of concentrate feed 781100 781100 781100 781100 781100
2 Cost of green fodder 275338 275338 275338 275338 275338
3 Cost of dry fodder 89827 89827 89827 89827 89827
4 Cost of mineral mixture 77088 77088 77088 77088 77088
5 Cost of veterinary aid 26400 26400 26400 26400 26400
6 Water and electricity charges 26400 26400 26400 26400 26400
7 Miscellaneous expenditure 13200 13200 13200 13200 13200
8 Labor charges 316800 316800 316800 316800 316800

Total Recurring cost 1606152 1606152 1606152 1606152 1606152

Heard Projection Chart for 5 years

Herd Chart
Opening Stock Transfer of Closing Stock
No of Kids Mortality No of Kids
Culling Kids to
Year Adults Kids Born in Kids Sold Adults Kids
of Ewes Adults
M F M F M F M F M F M F M F M F
Year 1 14 250 0 0 169 169 8 8 160 160 0 0 0 14 250 0 0
Year 2 14 250 0 0 169 169 8 8 160 148 13 0 13 14 250 0 0
Year 3 14 250 0 0 169 169 8 8 160 148 13 0 13 14 250 0 0
Year 4 14 250 0 0 169 169 8 8 160 148 13 0 13 14 250 0 0
Year 5 14 250 0 0 169 169 8 8 160 148 13 0 13 14 250 0 0
Where M is meant for Male and F is meant for Female

Feeding Schedule of the Project for 5 years

Feeding Schedule
Year 1 Year 2 Year 3 Year 4 Year 5
Type of Feed
Quantity Cost Quantity Cost Quantity Cost Quantity Cost Quantity Cost
Concentrate Feed 39055 781100 39055 781100 39055 781100 39055 781100 39055 781100
Green Grass 275338 275338 275338 275338 275338 275338 275338 275338 275338 275338
Dry Fodder 29942 89827 29942 89827 29942 89827 29942 89827 29942 89827
Mineral Mixture 964 77088 964 77088 964 77088 964 77088 964 77088
Total 1223352 1223352 1223352 1223352 1223352
Total Expenditure of the Project for 5 years

Total Expenditure
S.No Parameter Year 1 Year 2 Year 3 Year 4 Year 5
1 Cost of feeding 1223352 1223352 1223352 1223352 1223352

2 Cost of labor 316800 316800 316800 316800 316800

3 Cost of veterinary aid 26400 26400 26400 26400 26400

4 Water and electricity charges 26400 26400 26400 26400 26400

5 Miscellaneous expenditure 13200 13200 13200 13200 13200

6 Depreciation on civil structures 51195 51195 51195 51195 51195

7 Depreciation on equipment 40960 40960 40960 40960 40960

Bank loan repayment (Principle +
8 401125 400845 400565 400285 400005
Interest)
Total Expenditure 2099431 2099152 2098872 2098592 2098312

Total Income Estimation of the Project for 5 years

Income
S.No Parameter Year 1 Year 2 Year 3 Year 4 Year 5
1 Sale of kids 2565000 2471250 2471250 2471250 2471250
2 Sale of Culled Animals 0 125000 125000 125000 125000

3 Sale of Manure 770880 770880 770880 770880 770880

Total Income 3335880 3367130 3367130 3367130 3367130

Profit Loss Statement of the Project for 5 years

Profit loss statement

S.No Parameter Year 1 Year 2 Year 3 Year 4 Year 5
1 Gross profit 1236449 1267978 1268258 1268538 1268818

2 Gross profit/month 103037 105665 105688 105711 105735

3 Gross profit/month/Ewe 412 423 423 423 423

Payment Reschedule Statement of the Project for 5 years

Repayment Schedule
Principle Balance Total amount
Bank loan Interest on
S.No Year amount payable principle to payable to
to be pay principle
this year be pay bank
1 Year 1 1998628 399726 1399 1598903 401125
2 Year 2 1598903 399726 1119 1199177 400845
3 Year 3 1199177 399726 839 799451 400565
4 Year 4 799451 399726 560 399726 400285
5 Year 5 399726 399726 280 0 400005

Final Financial Parameters of the Project

Financial Parameters
Year Cash flow Present value
0 -4193495 -4193495
1 1236449 1177570
2 1267978 1150094
3 1268258 1095569
4 1268538 1043629
5 1268818 994152
NPV 1267519
IRR 10%
BCR 1.14