Nellore Sheep Project Report for 100 Rams; Cost; Profits

Nellore Sheep Farming Project Report for 100 RAMS.

Let us discuss today about the cost, profits, economics, and Nellore Sheep Project Report for 100 Rams.

Introduction to Nellore Sheep Breed: Nellore sheep breed is very popular in Andhra Pradesh (Nellore, Prakasham districts), and spread across the Telangana region as well. The mutton of  Nellore sheep is tasty and has good demand. Especially ‘RAMS’ (male sheep) has excellent demand for mutton production and breeding purpose. If you plan the sheep farm, there is a scope of huge profits in Nellore sheep farming. Usually, Nellore sheep coat color exists in red-brown, white, white with black spots on the face (Jodipi).

Assumptions and pre-requisites of the sheep farming project report:

The number of sheep considered in 1 unit: 100.

The breed of sheep assumed: Nellore sheep.

Are we considering raising male sheep or female sheep?: RAMS (Male sheep).

The system of raising sheep: Semi-Intensive (Sheep will be kept in the shed for some time and allowed to graze for the remaining time.)

Price for 100 male sheep kids (90 days old): 100 x 3,000 = Rs. 3,00,000.

How long are we going to raise the above-purchased sheep kids?: 6 months (batch duration, we can run 2 batches for a year).

Sheep shed or Housing for Sheep: You should have a covered area of at least 800 Square feet, and an open area of 2,400 Square feet, and a feed room and office area of 200 square feet.

The shed floor space required for each sheep kid: on an average of  0.5 Square feet to 1 square foot in the shed).

Sheep house/shed orientation: North-South lengthwise

The total covered area of sheep house/shed: 800 square feet = Length 40 feet x Width 20 feet x Height 10 feet along with 5 feet collapsible gate which is centrally located of the sheep house.

The continuous feed management system in the covered area of the shed: 40 feet long x 2 feet width x 18-inch depth, which should be made up of red bricks and cement.

The movable RCC feed troughs in the paddock: 5 numbers. Each measurement of Length 10 feet x Width 20 inches x Depth 20 inches. The feed trough should be located 6 inches to 10 inches above the ground level.

Water trough in the paddock: 10 Feet Long x 4 Feet Width x  2 feet Depth. It should be made up of brick and cement with a smooth finish at 2 to 3 locations of the sheep shed.

Sheep shed flooring: 9 inches gravel in the covered area and also in the paddock area or you can make cement flooring in the covered area of the shed with 9-inch gravel in the paddock area.

Cost of the Sheep Shed/House: Rs.200/s.ft for construction of shed with thatched roofing or Rs.220/s.ft, in case of Asbestos sheets used for the roof with fencing around the open area of the shed with the chain link wire mesh.

Electricity, water, chaff/fodder cutter, and other equipment: Rs 500/animal.

If you are planning for a bank loan amount: Usually, it is 75% of the capital investment.

Green fodder production: 2 acres of irrigated land at cultivation charges of 4000/acre.

Daily fodder requirement per sheep: 3 to 4 kgs.

Concentrate mixture cost: Rs.10/kg.

Labour: 1 laborer required at the cost of Rs.6000/month.

Veterinary charges, and other miscellaneous charges: Rs.12,000/year for an entire unit.

Insurance for your Sheep: 4% of the cost of sheep or you can consider the sheep unit under Sheep Insurance Scheme of state government Rs.30/sheep/year.

Assumed mortality rate (death rate): 5%.

Sheep manure production: 0.5 kg/day/sheep.

The sale price of sheep live weight: 200 per kg.

The sale price of sheep manure: Rs.1000/tonne.

Interest on sheep farm loan: 9% per annum.

Miscellaneous charges or any additional costs on entier sheep unit: Rs.6,000/year/entire sheep unit.

A) Capital expenditure/non-recurring expenditure (Fixed): Cost of housing + Fencing cost = Rs.1,93,000

Store, and office construction cost = Rs. 26,400

Water, electricity, chaff cutter, and other equipment costs = Rs.50,000.

Total capital expenditure (A) = Rs.1,93,000 + Rs.26,400 + Rs. 50,000 = Rs.2,69,400.

B) Recurring expenditure (Variable) = Cost of 100 Nellore ram lambs = Rs. 3,00,000.

Cost of fodder cultivation (2 acres x 5000) = Rs.10,000.

Feed required for 100 Ram lambs (6 months) = 100 X 0.12 kg X 180 days = 2.16 tonnes.

Sheep Feed cost = 2.16 tonnes x Rs.10,000 = Rs.21,600.

Labour cost per 6 months = 6 x Rs.5,000 = Rs.30,000.

Insurance charges (Sheep Insurance Scheme of Governement Rs.30/animal)= 100 rams x Rs.30 = Rs.3,000.

Veterinary aid plus Miscellaneous charges = Rs.11,000.

Total Recurring expenditure (B) = Rs.3,75,600.

Total Expenditure of 100 unit RAM cost = Capital expenditure (A) + Recurring expenditure(B) =  Rs.3,75,600 + Rs.2,69,400 = Rs.6,45,000.

If you are going for a bank loan:

Bank loan  for sheep unit = 75% of capital investmnet = 75% of Rs.6,45,000 = Rs.4,83,750.

Margin money (from your pocket) 25% of capital investmnet = 25% of Rs.6,45,000 = Rs.1,61,250.

Now let us calculate the income/returns from 100 unit Nellore sheep.

After mortality of 5%, we will have a total of 95 rams to sell.

We assume, they gain weight of 28 kg in 6 months.

Sale of nellore sheep for Mutton purpose or breeding = 95 x 28 kg x Rs.200/kg = Rs. 5,32,000.

Incase Insurance claim amount for 5 dead sheep = Rs. 10,000

Sale of sheep manure = 0.5 tonnes X 95 sheep = 47.5 tonnes x Rs.1000/tonne = Rs.47,500.

Miscellaneous returns = sale of seed, gunnies, skins etc., = Rs. 3,000.

Gross Income from 100 unit sheep farm = Rs.5,92,500.

Gross profit per year = Gross Income – Total Recurring expenditure =  Rs.5,92,500 – Rs.3,75,600 = Rs 2,16,900.

Total gross profit from 1 batch of 100 nellore ram sheep (6 months duration) = Rs 2,16,900.

If you run 2 batches in a year, you could have the potential of getting a gross profit of 2 batches x Rs 2,16,900 = Rs.4,33,800 rounding to Rs.4,34,000.

So, the total gross profits from 2 batches in a year (each batch of 100 Nellore male sheep) =  Rs.4,34,000. (Four lakh thirty-four thousand rupees).

Remember, the above figures are just for your reference. However, actual numbers may change based on current conditions, labor charges, mutton demand, and animal health and farm management practices. You can get more profits, if you plan the farm in such a way that, the sheep batch should be ready to sell just before any major festivals in India. Sheep has more demand in south India especially in Telangana, Andhra Pradesh, Karnataka, Maharashtra, and Tamilnadu.

Note: We did not calculate bank installment and interest. if you get a 75% loan, you should be paying installment plus 9% interest on it. Usually, banks provide sheep farm loans for 5 years of tenure. Check with ‘NABARD’ for any current sheep farm subsidies by the state government. You can take this project report as a reference for the 500 sheep farm project report or 1000 sheep farm project report.

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