VAE 511: Livestock Entrepreneurship (1+0)

SCRUTINY OF SCHEMES BY BANKS

• The scheme so formulated should be submitted to the nearest branch of a bank.
• The bank's officers would assist in preparation of the scheme for filling in the prescribed application form.
• The bank will then examine the scheme for its technical feasibility and economic viability.

Technical Feasibility

• Nearness of the selected area to veterinary/breeding/milk collection centre and the financing bank's branch.
• Availability of good quality animals in nearby livestock market.
• Availability of training facilities.
• Availability of good grazing ground/lands.
• Green/dry fodder, concentrate feed, medicines, etc.
• Availability of veterinary aid/breeding centres and marketing facilities near the scheme area.
• Capability of the owner and employees such as technical knowledge and skill.

Economic Viability

• Unit cost of livestock .
• Input cost for feeds and fodders, veterinary aid, breeding of animals, insurance, labour and other overheads.
• Output costs, i.e. sale price of livestock products, manure, gunny bags, young ones, other miscellaneous items etc.
• Income-expenditure statement and annual gross surplus.
• Cash flow analysis
• Repayment schedule (i.e. repayment of principal loan amount and interest).
• Other documents such as loan application forms, security aspects, margin money requirements, etc. are also examined.
• A field visit to the scheme area is undertaken for conducting a techno-economic feasibility study for appraisal of the scheme.
• Break Even Point, Investment Analysis (particularly, IRR), Payback period, Marketing process.