Dairy Farm Business Plan Template
Written by Dave Lavinsky
Dairy Farm Business Plan
You’ve come to the right place to create your Dairy Farm business plan.
We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Dairy Farms.
Below is a template to help you create each section of your Dairy Farm business plan.
Executive Summary
Business overview.
Pleasant Hill Dairy Farm is a startup dairy farm located in Cashton, Wisconsin. The company is founded by Jon and Susan Hartford, former managers of a corporate dairy farm business. Jon and Susan managed the production of milk, cheese and yogurt on ten farms within their former business and successfully grew the business in eight years from 1M to 4M in yearly revenue. They are known for their respectful, flexible and visionary management style.
Pleasant Hill Dairy Farm will provide a fresh alternative to corporate dairy farming. Pleasant Hill Dairy Farm will provide a one-stop shop for artisan cheeses, goat and cow milk, goat, sheep and cow cheeses, and a variety of garden fresh produce. All are organically processed and prepared for individual customers who are seeking the purity of organic, wholesome milk, cheese and produce.
Product Offering
The following are the products and services that Pleasant Hill Dairy Farm will provide:
- Organic cow and goat milk
- Organic cream and half-and-half
- Organic artisan cow, sheep and goat cheeses
- Organic fresh daily produce from the Pleasant Hill garden
- Garden and farm tours for guests
- Event venue: garden and farm locations
- Volunteer “Farmer for a Day” Program
Customer Focus
Pleasant Hill Dairy Farm will target all residents and visitors within the region. They will target consumers seeking artisan cheeses and vendors who sell the cheeses. They will target wedding planners and other party organizers. They will target volunteers for special programs that highlight the community importance of privately-owned farms.
Management Team
Pleasant Hill Dairy Farm will be owned and operated by Jon and Susan Hartford. They’ve recruited their former associate, Tom Watkins, to be their new Field Manager. In addition, they’ve recruited Sheila Watkins to be the Office Manager and caretaker of forms, filing and administrative tasks.
Success Factors
Pleasant Hill Dairy Farm will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly-qualified team of Pleasant Hill Dairy Farm
- Unique artisan cheeses, organic milks, fresh produce and other farm-fresh items.
- Event venues for small or large parties and weddings, each with sunset views, garden patios and comfortable seating for guests.
- Opportunities for consumers to experience small farming via “Farmer for a Day” and other introductory experiences.
- Pleasant Hill Dairy Farm offers the best pricing in town. Their pricing structure is the most cost-effective compared to the competition.
Financial Highlights
Pleasant Hill Dairy Farm is seeking $200,000 in debt financing to launch its Pleasant Hill Dairy Farm. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph outlines the financial projections for Pleasant Hill Dairy Farm.
Company Overview
Who is pleasant hill dairy farm.
Pleasant Hill Dairy Farm is a newly established, owner-operated dairy farm in Cashton, Wisconsin. Pleasant Hill Dairy Farm will be the unique, cost-effective, and engaging authentic dairy farm for visitors from the city and the surrounding communities. Pleasant Hill Dairy Farm will provide a comprehensive menu of artisan cheeses, milks and product for all customers to purchase. Their unique approach includes an offer for visitors to become a “Farmer for a Day” to better understand the importance of private farming by families rather than large conglomerates.
Pleasant Hill Dairy Farm will be able to produce a variety of flavorful organic cheeses, organic milk from cows and goats, and a dairy selection of fresh produce from the farm. In addition, visitors can experience the joys of farming and get a “hands on” feeling for the occupation by becoming farmers for one day. The addition of offering event venues captures the beauty of the farm and will add to the revenue of the farm by maximizing the use of the land and natural beauty of the area. The team of professionals are highly qualified and experienced in dairy farming and the hospitality industry.
Pleasant Hill Dairy Farm provides exceptional artisan cheeses not to be found elsewhere and organic milks that consumers are searching for. The staff prides itself on delivering the best customer service as they engage with enthusiasm on behalf of their private farm-based business.
Pleasant Hill Dairy Farm History
Pleasant Hill Dairy Farm was purchased in 2018 by Jon and Susan Harfford. They have grown the 20 acre farm and animal population to include 5 acres of farm produce available year round and livestock including 45 sheep, 22 goats and 35 dairy cows. The Hartfords built barns, tack rooms, offices and a small store to accommodate all that is necessary to provide and sell products to the general public. They also constructed event venue areas for special occasions to add to the revenue stream for their business. Their approach is that consumers will love the artisan flavors of organic cheeses and appreciate their organic milks. The produce sold will be fresh from their gardens every day, which is appealing to consumers.
Since incorporation, Pleasant Hill Dairy Farm has achieved the following milestones:
- Registered Pleasant Hill Dairy Farm, LLC to transact business in the state of Wisconsin.
- Has a contract in place for a 10,000 square foot office near the entrance of their farm Reached out to numerous contacts to include Pleasant Hill Dairy Farm as an event venue.
- Contacted wholesalers with invitations to sell Pleasant Hill cheeses and milks.
- Began recruiting a staff of six and office personnel to work at Pleasant Hill Dairy Farm.
Pleasant Hill Dairy Farm Products and Services
The following will be the products and services Pleasant Hill Dairy Farm will provide:
- Uncured fresh artisan cheeses
- Cured and aged artisan cheeses
- Goat, sheep and cow yogurt
- Fresh farm produce harvested daily
- Farm tours for visitors
- “Farmer for a Day” guest program
- Event venues for weddings and parties
Industry Analysis
The dairy farm industry is expected to grow over the next five years to over $66 billion. The growth will be driven by consumers’ interest and consumption of organic dairy products and produce. In addition, the growth will also be driven by the consumers’ interest in sustainable farming methods. Many, if not most, consumers also look toward future farming practices that embrace advanced agricultural practices and technology, while at the same time minimizing the ecological footprint.
While some of the costs will increase due to the expense of livestock welfare requirements and farming supplies, including feed, the costs will decrease as artisan cheeses are introduced and consumers become familiar with the specialized, rich flavors of organic cheese, milk and yogurt products. Farms will become more valuable as land ownership shifts, however the farms that include a variety of uses for their farms, such as event venues, community outreach programs and other offers, will see appreciation for farms by consumers also grow.
Customer Analysis
Demographic profile of target market, customer segmentation.
Pleasant Hill Dairy Farm will primarily target the following customer profiles:
- All residents and visitors in the region of Cashton
- Consumers shopping for organic produce and dairy products
- Consumers shopping for artisan cheeses
- Event organizers and wedding planners
- Consumers seeking a farming experience or expanded knowledge of the land
Competitive Analysis
Direct and indirect competitors.
Pleasant Hill Dairy Farm will face competition from other companies with similar business profiles. A description of each competitor company is below.
PureBloom Dairy Ranch
PureBloom Dairy Ranch is owned and operated by the Granger Corporation, a C-corporation based in Milwaukee, Wisconsin. The company includes over 100 employees, along with multiple ranch managers and field staff. PureBloom Dairy Ranch is owned in conjunction with 56 ranches within the corporation, where milk and milk products are derived from large herds of Holstein cows. The corporation sells the milk and milk products primarily to chain retail grocery stores within Wisconsin and several neighboring states.
PureBloom Dairy Ranch provides milk and milk products to grocery stores within the Cashton region and also provides milk to the school district and state government eateries under yearly contracts. The milk and milk products are the products of cows that have ingested antibiotics; the milk and milk products are not organic.
Evergreen Dairy Farm
Evergreen Dairy Farm is owned and operated by Tracy Hanson, who specializes in providing cheeses for aficionados around the nation. The cheese is made from the milk of goats and sheep and is often cured for over one year while ripening. Flavors of the Evergreen Farm cheeses include Blue River cheese, French Pastry Cream Cheese, and other select artisan cheeses. The cheeses sold by Evergreen Dairy Farm are offered at twice the price of Pleasant Hill Dairy Farm cheeses, due to long ripening times and the costs associated with creating small batch cheeses for ecommerce returns. The company was founded in 2018 and has a small, faithful following of cheese lovers from around the nation.
Townsend & Hatch Farms
Larry Townsend and Gerry Hatch formed the Townsend & Hatch Farms in 2015 to carry on their family tradition of dairy farming. The 126-acre farm holds sheep, cows, goats and llamas, all prized for their rich, creamy milk products. Townsend & Hatch Farms has a primary focus of providing high-end consumer goods to specialty providers within the US dairy industry. As such, they do not offer sales within the local area, but provide bulk orders of milk products to select customers in restaurants, upscale spas and resorts. Their pricing of products is generally 150% higher than that of other organic milk farmers. The reputation of Townsend & Hatch Farms has grown exponentially over the past eight years and the company has grown to a 3M enterprise with several ranch and field managers and office staff.
Competitive Advantage
Pleasant Hill Dairy Farm will be able to offer the following advantages over their competition:
Marketing Plan
Brand & value proposition.
Pleasant Hill Dairy Farm will offer the unique value proposition to its clientele:
- Highly-qualified team of skilled employees who are able to provide pure, organic milks and milk products at reasonable prices.
- Unique artisan cheeses available only at Pleasant Hill Dairy Farm
- Opportunities for community learning and engagement via “Farmer for a Day” programs and guest tours of the farm
- Farm fresh, organic produce offered daily
- Event venues of weddings and other occasions located in serene, beautiful surroundings
- Unbeatable pricing for their customers; they will offer the lowest pricing in the city.
Promotions Strategy
The promotions strategies for Pleasant Hill Dairy Farm are as follows:
Word of Mouth/Referrals
Pleasant Hill Dairy Farm has built up an extensive list of contacts over the years by providing exceptional service and expertise in their former managerial roles. The contacts will follow Jon and Susan Hartford to their new company and help spread the word of Pleasant Hill Dairy Farm.
Professional Associations and Networking
Jon and Susan Hartford will join various community and trade associations. This will increase their visibility within the artisan and organic milk products market.
Print Advertising
Two weeks prior to launch, a direct-mail piece will be sent to all Cashton city and regional residents, inviting them to visit Pleasant Hill Dairy Farm to tour the farm. They will also be offered discounted pricing for milk, yogurt and artisan cheeses. During the launch, visitors will be offered taste-testings of cheeses to encourage purchases.
Website/SEO Marketing
Pleasant Hill Dairy Farm will fully utilize their website. The website will be well organized, informative, and list all the services that Pleasant Hill Dairy Farm provides. The website will also list their contact information and list their available products for sale. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “organic milk” or “Dairy farm near me,” Pleasant Hill Dairy Farm will be listed at the top of the search results.
The pricing of Pleasant Hill Dairy Farm will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.
Operations Plan
The following will be the operations plan for Pleasant Hill Dairy Farm. Operation Functions:
- Jon Hartford will be the owner and President of the company. He will oversee all staff and manage client relations.
- Susan Hartford will be the Vice President of the company. She will oversee the growth of the business in property development and herd growth. Jon and Susan have spent the past year recruiting the following staff:
- Tom Watkins, their former Ranch Manager, will become their new Field Manager.
- Sheila Watkins, a former associate, will become the Office Manager and caretaker of forms, filing and administrative tasks.
Milestones:
Pleasant Hill Dairy Farm will have the following milestones completed in the next six months.
- 5/1/202X – Finalize contract to build office space
- 5/15/202X – Finalize personnel and staff employment contracts for the Pleasant Hill Dairy Farm
- 6/1/202X – Finalize contracts for Pleasant Hill Dairy Farm wholesale clients
- 6/15/202X – Begin networking at association and trade events
- 6/22/202X – Begin moving into Pleasant Hill Dairy Farm office
- 7/1/202X – Pleasant Hill Dairy Farm opens its doors for business
Pleasant Hill Dairy Farm will be owned and operated by Jon and Susan Hartford. They recruited Tom Watkins to be their new Field Manager. In addition, they’ve recruited Sheila Watkins to be the Office Manager and caretaker of forms, filing and administrative tasks.
Jon Hartford and Susan Hartford were formerly employees of a large conglomerate dairy ranch company. Together, they managed fields and operations for eight years. During that time, they became convinced that dairy farms could operate more efficiently and produce better quality milk and milk products by becoming smaller and privatized, while concnetrating on organic farming methods. Together, they took certification courses at the University of Wisconsin in Organic Farming Practices and both won their certifications.
Jon and Susan Hartford recruited Tom Watkins, a former associate Field Manager, to become the Field Manager for their new business. Tom is known as an exemplary field manager, highly-knowledgeable about the livestock in the fields, and responsive to all requests and needs within his position.
Sheila Watkins was also recruited to become the Office Manager. She worked with Jon and Susan for eight years and is known for her honesty and highly-organized administrative skills.
Financial Plan
Key revenue & costs.
The revenue drivers for Pleasant Hill Dairy Farm are the fees they will charge to consumers for their products and services.
The cost drivers will be the overhead costs required in order to staff Pleasant Hill Dairy Farm. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.
Funding Requirements and Use of Funds
Pleasant Hill Dairy Farm is seeking $200,000 in debt financing to launch its dairy farm. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of Customers Per Month: 205
- Average Revenue per Month: $30,250
- Office Build Out Costs: $100,000
Financial Projections
Income statement, balance sheet, cash flow statement, dairy farm business plan faqs, what is a dairy farm business plan.
A dairy farm business plan is a plan to start and/or grow your dairy farm business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Dairy Farm business plan using our Dairy Farm Business Plan Template here .
What are the Main Types of Dairy Farm Businesses?
There are a number of different kinds of dairy farm businesses , some examples include: Freestall dairy farm, Drylot dairy farm, and Pasture-based dairy farm.
How Do You Get Funding for Your Dairy Farm Business Plan?
Dairy Farm businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Dairy Farm Business?
Starting a dairy farm business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Dairy Farm Business Plan - The first step in starting a business is to create a detailed dairy farm business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your dairy farm business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your dairy farm business is in compliance with local laws.
3. Register Your Dairy Farm Business - Once you have chosen a legal structure, the next step is to register your dairy farm business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your dairy farm business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Dairy Farm Equipment & Supplies - In order to start your dairy farm business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your dairy farm business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
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