Profits in Dairyfarm Business

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Hi,
Can anybody advise me how much profit (minimum profit) one can expect annually with 10 HF cows if one starts the diaryfarm for the first time? Please help me out in this question because based on the answer I can plan whether I need to continue my Job or to Quite it and start Diary business.
I know I have asked a general question as profit in dairy business depends on multiple factors. However on broader view how much profit one can expect.
 

Ashwini

Well-Known Member
HI
Profit depends on your market and other competitors. Initially you cant expect profit, maybe after an year you can expect profit assuming you are he only one in your locality marketing milk.


Regards

Ashwini
 

monish

Active Member
HI jst contact ur nearest krishi vikas kendra

Hi,
Can anybody advise me how much profit (minimum profit) one can expect annually with 10 HF cows if one starts the diaryfarm for the first time? Please help me out in this question because based on the answer I can plan whether I need to continue my Job or to Quite it and start Diary business.
I know I have asked a general question as profit in dairy business depends on multiple factors. However on broader view how much profit one can expect.
Hi
U can get the help frm Krishi Vikas Kendra near ur place or can get more info frm NDRI {NATIONAL DAIRY RESEARCH INSTITUTE} Karnal Its under Agriculture ministry,Govt of India. They hv prmg for starters may b the nxt batch is strting frm Aug 25 2010. Plz conform frm their web site. My best wishes r with u.
 
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nandini goshala

New Member
Dairy Farming is profitable!!!

Hai,
What Ashwini has said is wrong. First of all, marketing issues don’t arise in Dairy Farming. Formers are getting decent price for the milk. In my case, ( I am in Karnataka State) I am getting Rs 15/- from Milk Co-operative society (KMF) and Rs 2 as intensive from Karnataka government. Which totals to Rs 17/-
This price never falls and increasing instead.
If you start your dairy scientifically you can earn money from first day itself. ( It depends. I recommend starting dairy busines with calves not with cows. If you have a profound knowledge in selecting good cows and in dairying you can start with cows.)
It is a simple mathematics. Let me explain it.
To start a Dairy the following issues to be considered.

1. Land for cultivation
2. Cowshed
3. Water
4. Cows
5. Food
6. Labor
7. Misc. (Electricity, medicine etc.)

1. Land. Rs.25000/-You said that you want start with 10 cows. Well. Let us prepare your project.
For 10 cows you need 2 acres of land to grow green fodder and corns. Do not think that only concentrated food will do for cows. It’s a wrong notion. Green fodder and Corn are must for cows. So you absolutely need 2 acres of Land.
If you possess that much of land, you can save money. If you are not possessing a land, then take the land on lease or rental basis. Don’t try to purchase the land. The investment will be very high.
In my case Rent amount per acre is Rs.10000 (Ten Thousand) per year. I have taken 5 Acres of land on rental basis.
Let us assume the same price in your area (it must be lesser. I am put up on the banks of Kaveri, so the prices are so high) you need 20000 for Land.
For first time cultivation it costs than Rs.5000. (Govt subsidy is available)

2. Cowshed (Rs.3 lakhs)
You need to build a good cowshed for 15 cows if you are planning for 10 cows. Scientifically 7ftx11ft is recommended for a cow. You need to build 100 ft x 10 ft building.
By using hollow blocks and zinc sheets (heat can be avoided) you can build the above said building in a cost Rs 3,00,000 (Max)

3. Water Rs. 50,000/-
If you have a good source of water, no need to worry at all. Otherwise digging a bore well is must. The cost depends on the area. You have to check it by yourself. Let us assume the cost as Rs. 50,000/-

4. Cows 4,00,000
If you are starting with everything new it takes minimum of three months to cultivate, to build, to get ready. Then comes the cost of cows.
You need to buy young healthy and high yielding cows. To make a good profit it is necessary to buy cows which yield 20ltrs of milk EVERYDAY.
In our Area the cow with the above said quality would cost Rs.40000/-(with Transportation)

5. Food, labor and misc.
For all these you need a running capital of Rs.1,50,000/-

So the total project cost is Rs.9,50,000/-

Let us calculate the income now.


1. Income from Milk
One cow yields 20 liters of milk every day. 2 months in a year is dry period for cow, for, yield in that period cannot be considered. Yield is calculated for ten months only.
Milk yield per cow per year
20 litres x 30 days x 10 months = 6000 liters.
Further loss due to unforeseen circumstances = 600 litres (10% of yield)
Total saleable milk yield per cow per annum = 5400 litres
The annual yield of milk per 10 cows = 54,000 litres.
The KMF buys 1 litre milk @ Rs.15 per litre
The intensive given by Govn.of Karnataka Rs 2 per litre
54,000 litres x Rs. 17 = Rs. 9,18,000.00
Total expenditure comes to 4,50,000.00
The profit per annum is 4,68,000.00

So where is the question of loss here? And who says profit is not possible in first year?
Dairy Business is absolutely profitable. If done properly and scientifically.

And, you keep in this mind, if you are planning to sell MALE CALFs for meat purpose, you never succeed in your life. You may get profit. But you will vanish. Take it from me, it is an ETHICAL TRUTH.
When a cow takes care of our family, cant we take care of its male calf?

Go ahead. Start the business. Make profits. And, and, please TAKE CARE OF THE ANIMALS. You are not the one who is feeding them. The Cows are feeding you.
And to quote, I am making Rs.5000 profit per month from one cow. I have 30 cows.

Good luck to you.
GO MATHA KI JAI HO !!
 
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Hai,
What Ashwini has said is wrong. First of all, marketing issues don’t arise in Dairy Farming. Formers are getting decent price for the milk. In my case, ( I am in Karnataka State) I am getting Rs 15/- from Milk Co-operative society (KMF) and Rs 2 as intensive from Karnataka government. Which totals to Rs 17/-
This price never falls and increasing instead.
If you start your dairy scientifically you can earn money from first day itself.
It is a simple mathematics. Let me explain it.
To start a Dairy the following issues to be considered.

1. Land for cultivation
2. Cowshed
3. Water
4. Cows
5. Food
6. Labor
7. Misc. (Electricity, medicine etc.)

1. Land. Rs.25000/-You said that you want start with 10 cows. Well. Let us prepare your project.
For 10 cows you need 2 acres of land to grow green fodder and corns. Do not think that only concentrated food will do for cows. It’s a wrong notion. Green fodder and Corn are must for cows. So you absolutely need 2 acres of Land.
If you possess that much of land, you can save money. If you are not possessing a land, then take the land on lease or rental basis. Don’t try to purchase the land. The investment will be very high.
In my case Rent amount per acre is Rs.10000 (Ten Thousand) per year. I have taken 5 Acres of land on rental basis.
Let us assume the same price in your area (it must be lesser. I am put up on the banks of Kaveri, so the prices are so high) you need 20000 for Land.
For first time cultivation it costs than Rs.5000. (Govt subsidy is available)

2. Cowshed (Rs.3 lakhs)
You need to build a good cowshed for 15 cows if you are planning for 10 cows. Scientifically 7ftx11ft is recommended for a cow. You need to build 100 ft x 10 ft building.
By using hollow blocks and zinc sheets (heat can be avoided) you can build the above said building in a cost Rs 3,00,000 (Max)

3. Water Rs. 50,000/-
If you have a good source of water, no need to worry at all. Otherwise digging a bore well is must. The cost depends on the area. You have to check it by yourself. Let us assume the cost as Rs. 50,000/-

4. Cows 4,00,000
If you are starting with everything new it takes minimum of three months to cultivate, to build, to get ready. Then comes the cost of cows.
You need to buy young healthy and high yielding cows. To make a good profit it is necessary to buy cows which yield 20ltrs of milk EVERYDAY.
In our Area the cow with the above said quality would cost Rs.40000/-(with Transportation)

5. Food, labor and misc.
For all these you need a running capital of Rs.1,50,000/-

So the total project cost is Rs.9,50,000/-

Let us calculate the income now.


1. Income from Milk
One cow yields 20 liters of milk every day. 2 months in a year is dry period for cow, for, yield in that period cannot be considered. Yield is calculated for ten months only.
Milk yield per cow per year
20 litres x 30 days x 10 months = 6000 liters.
Further loss due to unforeseen circumstances = 600 litres (10% of yield)
Total saleable milk yield per cow per annum = 5400 litres
The annual yield of milk per 10 cows = 54,000 litres.
The KMF buys 1 litre milk @ Rs.15 per litre
The intensive given by Govn.of Karnataka Rs 2 per litre
54,000 litres x Rs. 17 = Rs. 9,18,000.00
Total expenditure comes to 4,50,000.00
The profit per annum is 4,68,000.00

So where is the question of loss here? And who says profit is not possible in first year?
Dairy Business is absolutely profitable. If done properly and scientifically.

And, you keep in this mind, if you are planning to sell MALE CALFs for meat purpose, you never succeed in your life. You may get profit. But you will vanish. Take it from me, it is an ETHICAL TRUTH.
When a cow takes care of our family, cant we take care of its male calf?

Go ahead. Start the business. Make profits. And, and, please TAKE CARE OF THE ANIMALS. You are not the one who is feeding them. The Cows are feeding you.
And to quote, I am making Rs.5000 profit per month from one cow. I have 30 cows.

Good luck to you.
GO MATHA KI JAI HO !!
Dear Sir,
The statistics are based on ur working thanks a lot for providing such data's so that who ever wants to starts a new dairy business will study the same n start. THe details will also help to arrive at a stage where in ready data's r available provided by you.PL provide ur personal contact details as i also want to start my own dairy in Dharwar (Karnataka) if any help is required i will be in touch with u.
With Regards,
Shyamsundar.
Please contact..
 
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dairyman

Member
dairy farming is profitable but risky

Dear Readers

I cannot subscribe to the calculations of Nandini Goshala. The calculations and just very very optimisatic and not at all realisitc. I am a dairy owner and I know for sure that the figures are squarely projecting a very rosy scenario. If the figure are right then dairying would have been very very profitable and thriving industry. Which is not at present. You can expect about 18-30% as return on investment in dairy. If you are investing about 10 lakhs then is would be safte to assume if every thing goes right you can have a min profit of 18000 and max profit of 30000 per month.

Generally to make a cow give 20 lit on an average 1/3 of the cost goes to its feeding either calcium or concetrated feed or dry and green fodder. another 1/3 goew for Labour - Cows are very sensitive and sheds need to be kept clean for such high yields.

If NandiniGoshala can prove the calculations they have provided here I would join them pay 10,000 per month for understanding thier practices.

diaryman
 

nandini goshala

New Member
Why dairy farming is not popular if it is so profitable ?

Dear Dairy Man.

I hold on to the point I said.

Yes Dairy Business is absolutely profitable business. If maintained scientifically. (I am preparing a blog which thoroughly explains everything about dairy farming in India and especially about why it fails)

You said that, if it is so profitable it would have become a thriving business. It is not a thriving business, so that it is not profitable. You have jumped to conclusion.

Sorry. You are wrong again.

There are many aspects which drawback people from starting a dairy.

1. The Dairy Farming Demands Attention 24X7 Days. Once you start this business you cannot even enjoy first show movies and weekends, No festivals, no ceremonies, and no outings. (For Ex. In a dairy farm of 50 cows, every week there may be a calving, which eats three days of time of the farmer)

Now tell me how many youngsters will apt for this business which demands this much of care and attention. Today’s folk want to enjoy the life. Five working days are also suffocating them. Those people are not eligible to dairy industry.

2. To make the dairy farm profitable, you should not start with cows. (I will explain it exhaustively in my blog) Starting with calves is profitable from all point of views. People who start with cow will defiantly fail. (I will prove this with explanations and examples.)

If you are starting with calves then you will not get the Bank loan. You must have your own money. And it demands minimum of five lakhs or ten lakhs. The person who is having that much of money wants to start some other small business which fetches the money immediately. So nobody is coming forward to take the first step.

3. Finally, the location is a big issue in dairy farming. You need to move towards countryside to start this business. You cannot run this business enjoying the traffic of Bangalore, or jaunting in local train of Mumbai. You need to settle down in a village. Again raises the question of entertainment and facilities.

For these reasons Dairy Farming has not become the popular one.

The Dairy Farming is profitable and viable and prospering. I don’t have a single iota of doubt on this. Surely I will welcome you to my blog first and next to my farm.

Regards
 
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sivasachin

New Member
To: Nandini Goshala

Dear Nandini Goshala,
May I know your BLOG...??? You have said interesting and real facts about the problems in dairy farming. Keep updating.

Regards,
Siva.
 

dairyman

Member
Dear Nandini Goshala

Please go through what I have written. I have written that Dairyfarming in profitable and would give a return of 18% to 30%. Please don't read selectively.

I am not a novice to this business. I own a dairy farm since last five years and maintaining a record of each and every transaction for any ones' scrutiny. I worked in one of the best dairy organisations in this country and travlled across the country. I have not come across a single dairy or a dairy farmer who is practically getting the returns you have posted.

Blogging is Fine. First show us some clippings of your unit with you in the back ground then I would believe that you atleast have some thing on gorund to show your calculations.

My objective is not to dispute your claims but to let the ground reality sinkin in every one in this forum. I would wait for the blog and looking forward to visit your dairy to educate myself.

Regards
Vamsee Krishna
 

dr_vivekpatil

Active Member
Try out for a Crossbred Cow Dairy Farm Project Reports as per NABARD guidelines which can be customized as per your needs
Regards,
Dr. Vivek Patil
Asst. Prof. LPM, Veterinary College, Bidar

Site Moderators please note :This is a livestock extension initiative meant to increase awareness about the economic aspects of dairy farming and aid in project planning by dairy entrepreneurs. It does not involve any business activity.
 
Last edited by a moderator:

dairyman

Member
Dear Doc saab

Thanks for the reports. With My experience I can say the project you have posted is very practical.

A few of the pages particularly on buffaloes are not opening check out on that. Get the web forms tested.

Wonderful reports. Very strongly recommend for all dairy enthusiasts. ( all though you need little experience to understand the report go through it in detail you will understand if you keep playing with the numbers)

Al though I am not sure whether Moderator will keep the web page address still on tomorrow morning.

Send me your details by PM lets catch up.
Dairyman
 

kottoly

New Member
Hi

I totally agree there might be many loop holes that will lead you to losses but I would like to know on an average how much we can earn if I start with 10 cows Min of 10k per month? I mean to say afer all my expenses

And is there any training provided to set up Diary farm business.

Please advise

Thanks
Koty


Dear Nandini Goshala

Please go through what I have written. I have written that Dairyfarming in profitable and would give a return of 18% to 30%. Please don't read selectively.

I am not a novice to this business. I own a dairy farm since last five years and maintaining a record of each and every transaction for any ones' scrutiny. I worked in one of the best dairy organisations in this country and travlled across the country. I have not come across a single dairy or a dairy farmer who is practically getting the returns you have posted.

Blogging is Fine. First show us some clippings of your unit with you in the back ground then I would believe that you atleast have some thing on gorund to show your calculations.

My objective is not to dispute your claims but to let the ground reality sinkin in every one in this forum. I would wait for the blog and looking forward to visit your dairy to educate myself.

Regards
Vamsee Krishna
 

Could you give me your complete adress of your dairy farm in karnataka

Hi Nandini

Kondly provide us you complete adress of your dairy farm located in karnataka

i want to visit your farm to educate myself to start dairy .i am from Bagalkot

Thanks
Please contact...



Hai,
What Ashwini has said is wrong. First of all, marketing issues don’t arise in Dairy Farming. Formers are getting decent price for the milk. In my case, ( I am in Karnataka State) I am getting Rs 15/- from Milk Co-operative society (KMF) and Rs 2 as intensive from Karnataka government. Which totals to Rs 17/-
This price never falls and increasing instead.
If you start your dairy scientifically you can earn money from first day itself. ( It depends. I recommend starting dairy busines with calves not with cows. If you have a profound knowledge in selecting good cows and in dairying you can start with cows.)
It is a simple mathematics. Let me explain it.
To start a Dairy the following issues to be considered.

1. Land for cultivation
2. Cowshed
3. Water
4. Cows
5. Food
6. Labor
7. Misc. (Electricity, medicine etc.)

1. Land. Rs.25000/-You said that you want start with 10 cows. Well. Let us prepare your project.
For 10 cows you need 2 acres of land to grow green fodder and corns. Do not think that only concentrated food will do for cows. It’s a wrong notion. Green fodder and Corn are must for cows. So you absolutely need 2 acres of Land.
If you possess that much of land, you can save money. If you are not possessing a land, then take the land on lease or rental basis. Don’t try to purchase the land. The investment will be very high.
In my case Rent amount per acre is Rs.10000 (Ten Thousand) per year. I have taken 5 Acres of land on rental basis.
Let us assume the same price in your area (it must be lesser. I am put up on the banks of Kaveri, so the prices are so high) you need 20000 for Land.
For first time cultivation it costs than Rs.5000. (Govt subsidy is available)

2. Cowshed (Rs.3 lakhs)
You need to build a good cowshed for 15 cows if you are planning for 10 cows. Scientifically 7ftx11ft is recommended for a cow. You need to build 100 ft x 10 ft building.
By using hollow blocks and zinc sheets (heat can be avoided) you can build the above said building in a cost Rs 3,00,000 (Max)

3. Water Rs. 50,000/-
If you have a good source of water, no need to worry at all. Otherwise digging a bore well is must. The cost depends on the area. You have to check it by yourself. Let us assume the cost as Rs. 50,000/-

4. Cows 4,00,000
If you are starting with everything new it takes minimum of three months to cultivate, to build, to get ready. Then comes the cost of cows.
You need to buy young healthy and high yielding cows. To make a good profit it is necessary to buy cows which yield 20ltrs of milk EVERYDAY.
In our Area the cow with the above said quality would cost Rs.40000/-(with Transportation)

5. Food, labor and misc.
For all these you need a running capital of Rs.1,50,000/-

So the total project cost is Rs.9,50,000/-

Let us calculate the income now.


1. Income from Milk
One cow yields 20 liters of milk every day. 2 months in a year is dry period for cow, for, yield in that period cannot be considered. Yield is calculated for ten months only.
Milk yield per cow per year
20 litres x 30 days x 10 months = 6000 liters.
Further loss due to unforeseen circumstances = 600 litres (10% of yield)
Total saleable milk yield per cow per annum = 5400 litres
The annual yield of milk per 10 cows = 54,000 litres.
The KMF buys 1 litre milk @ Rs.15 per litre
The intensive given by Govn.of Karnataka Rs 2 per litre
54,000 litres x Rs. 17 = Rs. 9,18,000.00
Total expenditure comes to 4,50,000.00
The profit per annum is 4,68,000.00

So where is the question of loss here? And who says profit is not possible in first year?
Dairy Business is absolutely profitable. If done properly and scientifically.

And, you keep in this mind, if you are planning to sell MALE CALFs for meat purpose, you never succeed in your life. You may get profit. But you will vanish. Take it from me, it is an ETHICAL TRUTH.
When a cow takes care of our family, cant we take care of its male calf?

Go ahead. Start the business. Make profits. And, and, please TAKE CARE OF THE ANIMALS. You are not the one who is feeding them. The Cows are feeding you.
And to quote, I am making Rs.5000 profit per month from one cow. I have 30 cows.

Good luck to you.
GO MATHA KI JAI HO !!
 
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archidambaram

Active Member
Dairy farm with local breeds.

Sirs,

Interesting to read profit calculation from different experienced people. Rs.17 aliter for cow milk is a good price; we don't get that much in Tamil Nadu.

What is the minmum no. of cows to make a profit in dairy farm? I have lands more than 5 acres. Average price I can ecpect from buyers is about Rs.12-13 per litre.

Are there high yielding local breeds (not HF or Jersey cross breeds) that give more than 15 litres a day? Any information on the above will be helpful.

Dear doctor, your web information has been deleted by moderator. If you send that information as PM, I am much obliged.

Thanks & regards.
 

madhuriitd

Active Member
Profitable dairy farm for transfer -

Dear Sir,

We have a very good herd of HF cross, Jersey and sahiwals cows which are 60 in number. The photos can be seen on our blog.

Only serious buyers who are looking for a very good quality herd should contact us . Brokers and other please excuse.

Jakon dairy farms, Jaipur
Please contact..
 
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dr_vivekpatil

Active Member
Try out http://sites.google.com/site/viveklpm/ for Crossbred Cow Dairy Farm Project Reports as per NABARD guidelines which can be customized as per your needs

Regards,
Dr. Vivek Patil
Asst. Prof. LPM, Veterinary College, Bidar

Site Moderators please note :This is a livestock extension initiative meant to increase awareness about the economic aspects of dairy farming and aid in project planning by dairy entrepreneurs. It does not involve any business activity.
 

yogi23

New Member
HI,

I have 1 acre of land , is it enough to farm 10 cows..? i am also planing to raise E Mu's in that place with separate fencing..

Please Advise...
 

yogi23

New Member
Hi All

I WANT TO KNOW WHETHER THIS OUTLINED PROJECT MAKES SENSE

HIGH BREED
NOS TOTAL Days in year 365
NO OF COWS 1 10 nos 10 nos Dry period 65
COST OF COWS 10 nos 75000 RS 750000 RS
Liters of milk /day 10 nos 25 liters 250 liters/day Yielding period in a year 300 days
liters of milk /month 250 liters 30 days 7500 liters/month
liters of milk /year 250 liters 300 days 75000 liters/year
Sales of milk/day 250 liters 20 RS 5000 RS/day
sales of milk in a month 7500 liters 20 RS 150000 Rs/month
sales of milk in a year 75000 liters 20 RS 1500000 RS/Year
expenses per year 365 days 1000 RS 365000 RS/Year
misc / labour 135000 RS/Year

income / per year 1000000 RS/Year
income /per month 12 months 1000000 Rs 83333.33333





LOCAL BREED
NOS TOTAL
NO OF COWS 1 20 nos 20 nos
COST OF COWS 20 nos 40000 RS 800000 RS
Liters of milk /day 20 nos 13 liters 260 liters/day
liters of milk /month 260 liters 30 days 7800 liters/month
liters of milk /year 260 liters 300 days 78000 liters/year
Sales of milk/day 260 liters 20 RS 5200 RS/day
sales of milk in a month 7800 liters 20 RS 156000 Rs/month
sales of milk in a year 78000 liters 20 RS 1560000 RS/Year
expenses per year 365 days 1200 RS 438000 RS/Year
misc / labour 135000 RS/Year

income / per year 987000
income /per month 12 months 987000 Rs 82250
 

niksnarayana

Active Member
Hi
Basic mistake in your calculation.

Litres of milk per year is not calculated properly.
The period cow gives milk is called lactation. The lactation period is 300 days where milk increases for first 30 days and remains constant for another 100 - 150 days and then starts to decline slowly.
So for a 25 litre per day cow, average milk production can be considered to be around 16-18 litres per day, that is around 5000 litres in a lactation.

The cow will not give you 25 litres every day in its whole lactation.

And also, cow will continue to give milk even after 300 days, only issue is it might not be enough to give you profit. This happens in some cases where cow takes longer time to become pregnant. Dry period is always associated with pregnant cows.

Nikhil
 

To ALL DAIRY ENTHUSIASISTS

Success of dairy depends of several factors
viz;
A)Factors which u can control
B) environmental factors which u cannot control

A)Factors which u can control
1)Dedication:u need to sacrfic ur week and and all ur "WEAK ENDS"
its 24X7X365 day work > as NANDINI GOSHALA has already said

2)FEEDS N FODDER:this comes under ur control u u have facility for water and u grow ur own fodder, proper feeding ratio must be maintained green fodder:dry fodder:concentrate

ENVIRONMENTAL FACTORS
1)CLIMATE
2)ACCIDENTS

MAIN PROBLEM WILL BE MARKET

DAIRYMAN NIKSNARAYANA and Nandini goshala all are right

realistically profits wont be like nandini goshala predicted
EXPLAINATION
Let us assume u have 10 cows
NOT ALL 10 will be milking
different cows will be at different stages of lactation
and yield of each cow is not uniform throughout lactation
it varies a lot
after calving milk production is very low initially, it increases and reaches peak in about 8 weeks then gradually reduces for next 24-26 weeks(180 days) then reduction is drastic

YES DAIRY BUSINESS IS PROFITABLE-all u have to do is give 100% of ur time effort dedication
 
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