Request for help

[Guest guest]

Dandavad. Prabhupada kijaya!

 

I just concluded a long meeting with Balaji prabhu, the devotee here in

Alachua with whom I am working to establish a CSA program including cow

protection and milk supply.

 

We have worked up a basic model for milk production which we need help with.

Here are our assumptions:

 

 

Preconditions:

1) The business model is based on freehold land so there is no direct land

cost

2) All initial capital expenses like barn, initial acquisition of animals,

etc. are taken as already existing (We plan on obtaining grants, donations,

etc. for these costs)

 

Cow Husbandry operations:

 

This is based on an optimum herd size of 100 with milking cows freshened

only every four years and retired after 2-3 lactations. One out of three

heifers might never be bred.

 

We have projected the following breakup of the herd and the costs of

maintaining the herd (feed, etc.)

Milking Cow 10 @ $675.00 year = $6,750

Dry Cow 20 @ $325.00 year = $6,500

Retired Cow 10 @ $325.00 year = $3,250

Heifer 10 @ $250.00 year = $2,500

 

 

Oxen 10 @ $400.00 year = $4,000

Retired Oxen 30 @ $325.00 year = $9,750

Bull Calf 10 @ $250.00 year = $2,500

 

Total maintenance cost

 

Cost of milking (10 cows)

Labor 4 hours/day (365 days/year) @ $7 per hour $10,220

 

Total direct cost $45,470

 

Estimated milk production

 

We project a 2 year lactation with an average over this period of 27 lbs per

day. This would mean:

 

Average 27 lbs per day/ 365 days/year @8 lbs/gallon = 1,232 gallons per

cow

Total for 10 cows = 12,319 gallons per year.

 

This means that the direct cost is about $3.69 per gallon. (this is one of

the main areas we need help in verifying our assumptions - see bottom)

 

Our market research indicates we can charge $5.00 per gallon reasonably and

sell "milk shares" in our CSA for $650 per year eventually providing about

95 persons with approx 2.5 gallons of milk (or equivalent in yoghurt, etc.)

per week.

 

This would bring a gross margin of about $16,000 for the farmer to help

cover his own living expenses and all other indirect costs, including his

assistants.

 

This would be in addition to the main business of the farm which is growing

vegetables, fruits and flowers for the CSA members. The oxen would be used

in this program which we estimate will save about up to $5,000 that would

otherwise be spent on equipment maintenance and depreciation, irrigation

electricity, insurance, fuel, etc.

 

For the CSA we project utilizing about 6 acres for the 95 member households.

Each household would pay about $480 per year for a total of $45,000 income.

THe direct costs of the agriculture is estimated at just around $400 per

acre for external inputs. This comes to $2400 per year leaving a gross

margin of $42,500 for the farmer and his assistants as well as additional

income for the social security of the cows and oxen.

 

Initially we will not have such a large herd or even a small but

proportionate herd, but we will still set aside the money we would have

spent if we had the actual proportionate number of animals. For example, we

are planning to start with 2 milking cows and two bull calves (hopefully

from the same cows). However, we will set aside the cost of maintaining an

additional 6 animals into a trust fund for future retired animals. Thus we

expect that the initial milk production will at best just break even.

 

On the other hand, we will start with the full agicultural program if we get

enough rs. This will be done alongside the existing Govinda's

Garden farm which has been selling organic vegetables grown on 30+ acres for

several years now.

 

To facilitate this program we are forming an independent non-profit that

will support the development of this model on privately owned and operated

farms. I will be managing the non-profit and seeking grants for the program.

The non-profit may also develop into a sort of certifying agency. We are

also considering operating a "social security" fund for both farmers and

animals through this non-profit.

 

This is the basic outline. We need advice on several issues which I will

post in a separate ttext.

 

Your servant,

Pancaratna das