In this article we will discuss about the financing for dairy and poultry farming under animal husbandry.
1. Financing for Dairy Farming:
1. The expertise of the beneficiary in relation to the size of the proposed dairy should be ascertained. Marketing facilities available should also be studied carefully.
2. With the help of bank’s technical officer, veterinary/animal husbandry officer only healthy animals in the early stage of lactation should be purchased.
3. It is better to purchase freshly calved animals in their second/third lactation.
4. Loan should be provided for the purchase of at least 2 milch animals unless the beneficiary already owns at least one animal (one animal purchased initially and the second one after an interval of 6 to 8 months).
5. It should be ascertained that the borrower has necessary accommodation for keeping the animals.
Space requirement for different types of animals is as follows:
i. Cow – 60 sq. feet
ii. Calf – 20 sq. feet
iii. Heifer – 30 sq. feet
Minimum height of shed and side walls should be 10-12′ and 5-7′ respectively. Floor must be impervious with a slope of 2.5%.
6. Green fodder must be cultivated in the own field, i.e., for larger units having more than 10 animals the individual should own 1 acre of land for every 5 animals financed.
7. Availability of health cover and breeding facility should be within 5 km distance from the farm.
8. The animals should be vaccinated against deadly diseases like anthrax, hemorrhagic septicemia, rinderpest, black quarter and food and mouth disease.
9. Good quality water, concentrate and other feed materials must be available locally.
10. The animals must be ensured under master policy. Insurance premium is @ 4.5% in case of cross-bred cows and 4% in case of others.
Financing for Dairying:
A banker should take the following factors into consideration before financing a daily unit:
i. A minimum grazing area of 1 acre is required for every 5 cattle.
ii. Minimum clean drinking water requirement of cattle is 130 to 150 litres/day.
iii. The cattle shed should be constructed on high elevation with pucca arid non-slippery floor, away from water logging area and near to road and market.
iv. The minimum height of the shed should be 10 to 12′ and of side walls should be 5 to 7′.
v. Space requirement for each type of animal is as follows:
i. Cow – 60 sq. feet
ii. Calf – 20 sq. feet
iii. Heifer – 30 sq. feet
vi. Feed requirement of the cattle is as follows:
vii. Certificate of health and age should be obtained from the veterinary doctor.
viii. Important indicators of various types of animals.
ix. The animals and cattle shed should be insured. Insurance premium is 4.5% of the cost in case of cross-bred cows and 4% in case of others. It may change from time to time.
Package of Practices:
To run the dairy enterprise on profitable lines, the following packages of practices should be adhered to:
i. Cows and buffaloes yielding on an average 3500 litres and 2100 litres of milk, respectively, must be purchased.
ii. A minimum of 20 kg of green fodder along with dry fodder (straw) and some concentrates should be given to cattle.
iii. A mineral mixture @ 20 gm/kg of concentrate mixture can also be added to make up mineral deficiencies.
iv. Feed heifer and cows in the late pregnancy @ 1 kg concentrate mixture daily in last two months.
v. Cull and male calves at birth in cattle and buffaloes calves should be weaned as soon as possible after calving.
vi. The sheds can economically constructed by using cement asbestos sheets supported on angle iron and hollow iron pillars or small brick pillars.
vii. While using artificial insemination techniques care should be exercised to see that the exotic inheritance of the herd is limited to between 50 to 62.50%.
viii. A teaser bull can be added to the herd to combat the problem of heat detection.
ix. To avoid losses due to mortality and reducing the expenditure on treatment, animals should be vaccinated at proper time and as per schedule.
x. Defective and low yielding animals should be culled as early as possible.
xi. Insurance cover should be provided to all the animals in the herd.
xii. Proper market for the milk should be explored to avoid risk and losses.
Model Scheme for Financing Dairy Unit of 10 Cross-Bred Cows:
Economics of 10 Cross-Bred Cows Unit:
C. Annual lactation days and dry days: Considering 280 days as lactation period followed by 120 days of dry period. (Details given at milk flow chart depicted at the end for 2 cows cycle).
D. Feeding cost during lactation period (L.P) and dry period (D.P) per cow per day.
2. Financing for Poultry Farming:
i. The agro-climatic conditions must be suitable for rearing birds in the area.
ii. It should be ascertained that the applicant has knowledge/experience in raising poultry.
iii. Selected site should be away from main roads and free from water logging conditions.
iv. The poultry shed should be adequate to accommodate the number of birds to be raised. The poultry house should be according to standard requirements and should give protection to birds from sun, rain, wind and predators.
v. Suitable arrangements should be made for purchase of high quality one day old chicks or layers from reputed sellers at reasonable prices.
vi. Sufficient clean water should be available for birds. It should also be ascertained that the poultry feed is available from close proximity at reasonable price.
vii. Proper veterinary- services must be available near the farm for treating the birds. Birds should be vaccinated against poultry diseases.
viii. Firm arrangements must be made for marketing of eggs/broilers/culled birds.
ix. Arrangements should be made for insurance of birds and the insurance policy should’ be made in favour of the bank. Layers @ Rs.4.23% birds, broilers @ Rs.0.71/birds, building and equipments @ 0.40% of cost.
x. Proper records of all purchases and sales should be maintained.
Financing for Poultry Units:
i. The site should be dry, without water logging, well drained and properly accessible. It should be 500 meters away from the existing farm.
ii. Distance between brooder shed, grower shed and layer shed should be 100 feet from each other.
iii. Distance between two layer sheds should be 70 feet.
iv. The shed should have East West orientation.
v. Height of shed should 16 to 22 feet with a maximum width of 35 feet and a length of 100 to 400 feet.
vi. Feed mixing unit should be minimum 300 feet away from sheds.
vii. Floor space norms.
viii. Feed and feed requirement.
ix. Vaccination schedule for layers and broilers as suggested by poultry’ experts should be strictly followed. All vaccinations should be completed before 15 to 16 weeks of age.
x. The birds should be insured.
The premium rates of insurance of birds, equipment and building, etc., are:
xi. The total flock is brought in batches depending on the availability of sheds. Interval between introductions of batches should be 12 weeks.
xii. The economic size is 50000 birds for a layer unit in traditional area. For broilers, the unit size can be determined primarily based on the market potential in the area.
All the initiatives discussed above need massive financial support both from government and banks. The financial institutions should look at agriculture as a viable commercial activity rather than a traditional one and thus play a major role in changing the face of rural economy. It is all the more essential in the present day that all the institutions connected with agriculture and rural development should work with the spirit of partnership to give boost to the rural economy as per the policy initiatives of the government.