1.

Description of Existing Dairy

The dairy is approximately 1 acre in extent with availability of approximately 100 acres in adjacent lands for expansion.The farm is situated at aluthpara,kudameegaswewa,digampathana. The dairy consists of 30 cows with a daily milk production capacity of 60 litres.The land is fertile & possesses a 25 feet deep well built by the owner.The owner has outright ownership to the land and he selected this block of land in the dry zone since dry zone has a lower cattle disease rate.According to the owner,the best cattle farm is located in dubai and has a daily milk yield of around 40 litres per cow.The owner developed this dairy to its current status in just over a period of a year.The land is surrounded with a barbed wire fence and is well secured.

2.Health Registration
Farm has been approved by Government Veterinary surgeon of department of animal production & health department on 3 january 2011,of Palugaswewa divisional secretariat,Mr.D.M.I.U. Gunatileke(copy annexed).Since then,the owner has complied with all health standards and the dairy is well on course to achieve long term growth.

3.staff cadre
The dairy employs 3 full time workers paying a total monthly salary of Rs.50,000.

4.Future Plans
* To acquire more high milk yielding cows. * Acquisition of more land in and around Dambulla & Kandy. * A land block of 200 acres in Galaha,Deltota has been identified for development of a high tech dairy with financial & technical assistance from a New Zealand investor.(survey plan annexed)

5.Produce Buyers & Prices

The entire dairy output of around 60 litres is bought by Nestle at a price of Rs.50 a litre.It is estimated that from October 2012,daily milk production will go up to around 100 litres with existing facilities with more cows growing up in age.cattle feed is also bought from Nestle @Rs.750 a kilo.an average of 25 kilos is bought per month.

continued

6.Monthly Profitability(in rupees) expected

1.4.2012 to 30.9.2012 Sale of milk Less:expenses Salaries Cattle feed Vitamins & others 50,000 18,750 5,000 60,000 20,625 7,500 90,000 1.10.2012 to 31.3.2013 150,000

Net Surplus

16,250

61,875

7.Loan Facility(long term) requested

Rs. 15 lakhs on loan approval. Further instalments of Rs.10 lakhs each,after periodic progress reviews upto the optimum level

8.Utilisation of loan facility

* on approval of loan,the dairy will be named as Rich milk dairy * A new sprinkler system will be installed for cows * Cattle will be grouped based on age & milk yield and put into newly designed separate sheds. * To increase the number of cows to 80 and to increase the monthly income to around Rs.900,000. * marketing of a new budget ice cream pack among the schools in Kandy,Matale & Dambulla Under the brand Rich Milk

9. A brief personal profile of farm owner

Mr.Liyanage is of 39 years and a father of 2 children & resident in kandy since his childhood..He runs his own retail shop opposite Trinity College,Kandy & has been in business for the last 13 years(business registration attached)He has a sound knowledge of the dairy industry.

10.Requirements of Borrower
* early approval of loan and disbursement of the first instalment of Rs.15 lakhs. * The lowest possible interest rate per annum applicable to farmers. * Maximum grace period to commence repayment of loan & loan interest.

11.Economic benefits to the country

* Creation of rural employment * supply of natural fertilizer to the nation * saving of foreign exchange with the production of a range of products extending up to butter,milk powder,cheese,etc.

****The owner is hoping to reside in the farm premises once the development drive starts.****

PROJECT REPORT FOR DAIRY FARM OWNED & MANAGED BY MR.MAHESH CHANDIKA KUMARA LIYANAGE,OF KANDY FARM LOCATION: DIGAMPATHANA