Nellore Sheep Project Report – 100 No’s

Nellore Sheep Project Report

Nellore Sheep Project Report.
Nellore Sheep Project Report.

Introduction:- Nellore sheep is one of the very famous sheep breeds of south India and mostly found in Andhra Pradesh, Telangana and other surrounding states of south India. This breed has proven to be very profitable for sheep farmers. Commercial rearing of Nellore sheep breed is increasing day by day due mutton demand in rural and urban areas. In the following project report let us talk about cost and profits involved in rearing / raising Nellore ram lamb (ram lamb is young male sheep). This project report deals with 100 no’s of Nellore young male sheep.

Project Report:- The following economics of sheep farming may vary from time to time and region to region.

Pre-Requisites:The following are assumptions and pre-requisites to start a 100 no’s Nellore ram lamb project unit.

Sheep rearing system:- Intensive / Semi-Intensive.

 Project unit size:- 100 Nellore young sheep (rams).

Cost of each Nellore ram sheep of 3 months age:- Rs 3,000/young sheep.

Duration of the batch to manage in the farm:- 6 months (yearly 2 batches).

Housing for sheep:- Covered area is about 800 sq.ft, open area is about 2400 sq.ft and store and office area is about 120 sq.ft Floor space required for each young animal is about 0.5 to 0.6 sq.ft.

Shed Specifications:- Shed should be oriented in North-South direction (length-wise) for better ventilation and free flow of air.

Covered area of the shed:- 800 sq.ft = 40 x 20x 10 (LxWxH) with 5 feet collapsible gate/shed, centrally located in the shed.

 Feed space in covered area:- Feed space should be made with  these dimension 40 ft. x 2 ft. x 18 inch (Length x Width x Depth) by using bricks and cement.

Mobile (movable) RCC feed troughs in the paddock:- Need 5 movable feed troughs with dimension of 10 ft x 18 inch x 18 inch . These should be located 6 to 8 inch above ground level.

Water Trough in the Paddock:- These should be made up of brick and cement at 2 or 3 locations in the covered area with a dimension of 10 ft x 4 ft x 2 ft (Length, Width, and Depth).

Flooring Details:- Nine inch gravel in the covered area and also in the paddock area or alternatively. Cement flooring in the covered area & 9 inch gravel in the paddock area.

Nellore Sheep Project Report – Housing Cost:- Rs.200/Sq.Ft for construction of shed with thatched roofing (Rs.220/Sq.Ft, if asbestos sheet used as roof material) and fencing around the open area with link meshing.

Electricity, Water, Chaff cutter and other equipment required:- Rs.500 per sheep.

Expected loan amount:- 75% of the capital amount.

Green Fodder Production:- Two acres irrigated land cultivation charges @ Rs 4000/acre. CO-1, CO-2 or any gram/millet/hybrid grass can be grown.

Fodder requirement/day:- 3 to 4 kg/animal.

Concentrate mixture cost:- 10 Rs/kg.

Labour:- One worker is required and charges for him would be 3000/month.

Veterinary / Medical Expenses:- 6,000 Rs for whole unit (100 sheep).

Insurance Requirement:- Generally 4 % of animal cost or under government  subsidy, each animal can be covered with 30 Rs.

Rate of Mortality:- 4 to 5%

Production of Manure:- 0.5 kg/animal/day.

Sale price of sheep (live weight):- 150 Rs/kg

Manure sale price:- Rs.500/ton.

Interest on bank loan:- 9% per/year.

Miscellaneous Expenses:- 6,000/year for entire unit.

Sheep Project .
Sheep Project .
A). Capital expenditure / non-recurring expenditure (Rs.) 
Cost of housing + Fencing : 1,93,000
Cost of construction of stores and office : 26,400
Water, electricity, chaff cutter & other equipment : 50,000
Total capital expenditure : 2,69,400
B). Recurring expenditure (Rs.)
Cost of 100 Nellore sheep ( rams) : 3,00,000
Green fodder cultivation cost (2 acres X 4000) : 8,000
Total feed cost: Ram lambs:100 X 0.12 kg X 180 days = 2.16 tonnes @ Rs. 10,000/ton : 21,600
Labour cost per 6 months : 18,000
Insurance charges (Under Govt. scheme) : 3,000
Veterinary Expenses : 6,000
Miscellaneous Expenses : 6,000
Total : 3,62,600
Total Expenditure (Capital (A) + Recurring (B)) : 6,32,000
Bank Loan amount (75% of Total Expenditure) : 4,74,000
Margin money (25%) : 1,58,000
C). Income (Rs.)
Sale of sheep for mutton or breeding(95 x 28 kg x Rs.150/ kg) : 3,99,000
Insurance amount for dead animals (5 Ram lambs) : 9,000
Sale of sheep manure (0.5 ton X 95 ram lambs X Rs.500/ ton) : 23,750
Others- sale , gunnies, skins etc., : 2,000
Gross Income (Rs.) : 4,33,750
Gross profit/year (Rs.): 4,33,750 – 2,69,400 = 1,64,350:
If two batches are run in a year, Rs. 1,64,350 x 2 batches = Rs. 3,28,700 will be the gross profit per year.
Now let us look into Bank loan repayment with interest and  actual net profit after the bank loan amount.

Item 1st  Year   2nd Year 3rd Year 4th Year   5th Year


Net profit per year in Rs. 3,28,700 3,28,700 3,28,700 3,28,700 3,28,700
Repayment installment (in Rs). 94,800 94,800 94,800 94,800 94,800
Interest 42,660 34,128 25,596 17,064 8,532
Installment plus Interest (in Rs) 1,37,460 1,28,928 1,20,396 1,11,864 1,03,332
Net profit at the end of the year (in Rs.) 1,91,240 1,99,772 2,08,304 2,16,836 2,25,368

For Nellore Sheep Breed : Read here.

For Agriculture in India: Read here.

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  1. Hii

    Iam interested in Goat farming. Insearch of land per acre 4-5 lakh rupees surrounding nellore location.

    Please guide me in procuring & purchasing the land at right place. Immediate buyer.

  2. This is a good piece of information, however seems like the statistics is little older.

    It would be helpful if the these economics are updated based on the current market prices.

  3. Hai sir this is somashekar i want to do this business in my native i have land but i need loan wear can get lone information, all national banks are give this lone or not i did not know this this thing please give any contact details for loan.

  4. Dear sir
    Im from viskhapatnam, im intrested to start sheep faeming as i have 3acres of land .
    I dont the process of loan as goverment providing subsidy.
    Please give the information about loan process
    Thanking you


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