dairy products business plan india

How to Launch a Successful Dairy Business in India

In the panorama of diverse business sectors in India, dairy farming stands out as a prosperous and fulfilling industry. Dairy farming provides enormous economic benefits and contributes significantly to the nation’s GDP. Let’s take an in-depth look at how to kickstart your dairy farming journey in India.

The Importance of Dairy Farming in India: A Deeper Dive

Dairy farming , traditionally a cornerstone of India’s agricultural sector, has gained even more prominence in recent years for multiple reasons:

• Nutritional Security: As a provider of essential nutrients like proteins, vitamins, and minerals, milk is a staple in the Indian diet. The increasing consumption of milk products to meet nutritional needs emphasizes the importance of the dairy sector.
• Employment: Dairy farming is a major source of employment in rural India. For many, it provides a primary or additional income stream, thereby playing a crucial role in poverty reduction.
• Economic Impact: As the world’s largest milk producer, India’s dairy industry contributes significantly to its GDP. The growth potential in this sector makes it crucial to the economy.
• Women’s Empowerment: Dairy farming, often a household activity, gives rural women an opportunity to contribute economically. It empowers them by providing income and promoting entrepreneurship.

Estimating the Investment: Cost to Start a Dairy Farm

The cost of starting a dairy farm in India primarily depends on the size of the farm and the number of cattle. Here’s a basic financial plan for a beginner’s dairy farm .

• Land: Rent or buy a land area that can accommodate the size of your farm. Land costs can range between INR 10,000 to INR 100,000 per acre, depending on the location.
• Infrastructure: Barns, sheds, feeding troughs, and milking equipment cost around INR 500,000 for a small-scale farm.
• Cattle: Each good-quality milch cow can cost INR 50,000 to INR 70,000. The cost varies based on the breed.
• Feed: Allocate around INR 10,000 per cow annually for fodder and nutrition supplements.
• Labor: Budget around INR 10,000 per month per worker for labor costs.
• Miscellaneous Expenses: Vaccinations, veterinary visits, transportation, and other unforeseen expenses should also be factored in.

Thus, a basic dairy farm setup with ten cows can cost approximately INR 10,00,000 to INR 15,00,000.

Exploiting the Advantages: Benefits of the Dairy Business in India

Dairy farming holds a distinct position in the Indian economy due to its numerous benefits.

• Growing Demand: The dairy market in India is expanding, driven by rising consumption of milk and milk products.
• Profitability: With a strategic business plan and effective management, dairy farming can generate high returns on investment.
• Government Support: The government offers various subsidies and loan facilities to promote dairy farming. Check out the ffreedom app’s dairy farming course to get more information on these opportunities.
• Sustainable Business: Dairy farming contributes to sustainability as it encourages local production and consumption.

Choosing the Best: Selecting Breeds for Your Dairy Business

Different dairy breeds offer varied milk production capabilities. Consider the following popular breeds for high milk yield:

• Holstein Friesian: Holstein Friesian is known for its high milk yield, suitable for commercial dairy farming.
• Jersey: Jersey cow provides high-quality milk with good fat content.
• Sahiwal: An Indian breed, hardy, and heat-resistant, suitable for tropical climates.
• Gir: Gir is another Indian breed, known for high milk production and adaptability to diverse climatic conditions.

Browse through the ffreedom app dairy farming courses for more comprehensive insights on breed selection .

Planning for Success: Dairy Farming Business Plan

A well-laid business plan is the cornerstone of a successful dairy farm.

• Market Analysis: Understand the local demand for milk and dairy products, existing competition, and pricing strategies.
• Breeding Plan: Develop a breeding plan to ensure a consistent milk supply.
• Feed Management Plan: Plan your fodder production or purchasing strategy to ensure a steady feed supply.
• Healthcare Plan: Arrange regular veterinary visits, vaccinations, and health check-ups for your cattle.
• Marketing Strategy: Determine how to market your products. Consider direct selling, supplying to local dairies, or collaborating with larger dairy brands.

Assessing Profitability: Is Dairy Farm Profitable in India?

Yes, dairy farming can be highly profitable in India. Factors like increasing demand, government subsidies, and the potential for local-to-global expansion make it an attractive venture. However, success depends largely on the management practices and the marketing strategy of the farm.

Delving Deeper: Types of Dairy Farming

There are different types of dairy farming methods, each with its own set of advantages:

• Commercial Dairy Farming: Involves large-scale production of milk for commercial purposes. It demands a significant initial investment but yields high returns.
• Subsistence Dairy Farming: Milk production is primarily for the farmer’s household, with excess sold in the local market.
• Organic Dairy Farming: Adheres to organic production methods. Organic products can fetch premium prices but require stringent compliance with organic farming standards.

So, starting a dairy farm in India can indeed be a rewarding venture, provided you have a strategic business plan, select the right cattle breed, manage costs effectively, and exploit the benefits of the booming dairy industry. Embark on this fulfilling journey and contribute to India’s milk production story.

Step-by-Step Guide to Setting Up and Running a Dairy Farm in India

Once you’ve settled on the business plan and obtained the necessary funding, it’s time to dive into the specifics of setting up and operating your dairy farm.

1. Building the Shed

The first physical aspect to consider is the cattle shed. It should be well-ventilated, clean, and spacious enough for your cattle. Orient the shed in a direction that minimizes exposure to strong winds or excessive sunlight. The floor should be inclined to aid cleaning, and each animal should have approximately 40-60 square feet of space.

2. Water Supply

Maintain a constant and clean water supply for your cattle. Adult cows consume between 40 to 60 liters of water daily. Providing fresh water improves their health and productivity.

3. Procuring Feed and Feeding Cattle

Cattle feed constitutes a significant portion of the operating costs. High-quality feed results in better milk production. A typical cow’s diet consists of green fodder, dry fodder, and concentrates.

Feeding should ideally be done twice a day – once in the morning and once in the evening. Adhering to a consistent feeding schedule is crucial for the cows’ health and productivity.

4. Controlling Cattle

Train your cattle early for easy handling. Techniques such as positive reinforcement can be helpful. Additionally, use sturdy, but not harmful, restraining equipment when necessary.

5. Milk Extraction, Storage, and Packaging

Milking should be done at consistent times every day. Sanitize the udder before and after milking to prevent infections. Depending on your scale, you may opt for manual milking or use milking machines.

After extraction, milk should be rapidly cooled to below 4°C to prevent bacterial growth. Pasteurization is also crucial to kill any existing bacteria. Once cooled and pasteurized, the milk should be stored in stainless steel or aluminium containers to avoid any contamination.

Packaging should be done in sterilized containers. Depending on your market, you can opt for pouches, glass bottles, or plastic containers. Remember to include important information like the production date and nutritional details on the packaging.

6. Disease Management and Vet Care

Regular health checks are crucial to prevent and control diseases. Maintain a close relationship with a vet and follow their recommendations regarding vaccinations and treatments.

Starting and running a dairy farm involves careful planning and attention to detail. However, the benefits of the dairy business in India, from the high demand to the potential for profitability, make it a worthwhile endeavor

ffreedom App: Comprehensive Learning Platform for Dairy Farming

The ffreedom app offers a well-rounded dairy farming course, providing aspiring dairy farmers with the necessary knowledge, skills, and mentorship to establish and operate a successful dairy business .

The course, offered in six languages, covers a broad spectrum of dairy farming aspects:

• Starting Up: Detailed guidance on initiating a dairy farm, such as identifying a suitable location, choosing the right breed of cattle, and setting up infrastructure.
• Maintenance: Comprehensive lessons on daily farming activities, including feeding schedules, milking procedures, maintaining hygiene and sanitation, and waste management.
• Disease Management: Information about common cattle diseases, their symptoms, preventive measures, and treatments. This knowledge is crucial for maintaining a healthy herd and ensuring consistent milk production.
• Marketing Strategies: Effective methods to market and sell dairy products, with a focus on identifying target markets, setting competitive prices, and leveraging different sales channels.
• Business Management: In-depth sessions on managing a dairy business, including cost management, revenue generation, profitability analysis, and expansion strategies.

What sets the ffreedom app course apart is its panel of successful mentor s from the dairy farming industry. These seasoned professionals share their practical experiences and insights, providing a real-world perspective to theoretical knowledge. The course is thus a holistic learning resource, perfectly tailored for India’s future dairy farmers.

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How to Start a Dairy Farm Business in India: A Beginners Guide

Table of Contents

Introduction, reasons to choose dairy business in india, making a dairy business plan, market research.

• Setting Up the Dairy Farm Infrastructure

Choosing the Right Cow Breed

Management of dairy farm and feeding practices, marketing & selling of dairy products.

Milk production in India is estimated to be 230.58 Million tonnes in the year 2022-23, making it the world’s largest milk production. It shows the positive scope of a dairy farm business in India, making it a profitable business. Starting a dairy farming business requires industry knowledge, careful planning, the right strategies, and market opportunities. Dairy Farming is beneficial for both small-scale and large-scale farmers.

Before starting a dairy farm business, you must know why it is an attractive business option. Some reasons to choose dairy farming as a business option are:

• India is among the largest milk consumers in the world, which means there is a high demand for milk and dairy products. The consistent demand for dairy products offers a stable market for dairy farmers.
• The dairy business in India provides a steady monthly income. Income stability helps farmers moderate risks related to seasonal crops.
• A dairy farm business plan requires budget-friendly investment. You can start a dairy farm in India on a small scale with a small investment.
• The dairy business in India has a potential export opportunity for dairy products in the international market. Products like milk powder, butter, ghee, etc., have a huge demand globally. Thus, expanding into the export market can boost the profitability of the dairy farm business.

How do you start a dairy farm business in India?

If you are looking to start a dairy farm business in India, you should follow the steps listed below:

Before starting a business, you need to ensure that you are pursuing your business objectives. Create an action plan, so lenders or government bodies can easily offer you a business loan or subsidy.

The National Bank for Agriculture and Rural Development (NABARD) has initiated the Dairy Entrepreneurship Development Scheme (DEDS), which benefits farmers by providing subsidies on dairy farm loans.

Dairy farming is a profitable business with an undying demand for milk production in India.

Conducting market research is an important aspect as it helps in understanding the demand for milk and dairy products in the targeted market, potential customers, and competition in the market.

Setting up the Dairy Farm Infrastructure

A dairy farm must be spacious, properly ventilated, and have all the facilities for the animals, including water and electricity. You can consider the following things while setting up the infrastructure of your dairy farm:

• The farm must be set up in a spacious area, considering the number of animals (cows and buffaloes).
• A good slope and effective drainage system should be made. A footbath with disinfectants should be made available at the entry point.
• Creating a shed for the animals is necessary as it provides shelter in bad weather conditions and keeps the animals safe.
• Create a waste disposal area at an appropriate distance from the animals, ensuring better living conditions.
• You may also keep some space for the land to encourage crop cultivation if you want to scale up your dairy farm business.

You need to keep certain things in mind while choosing the right cow breed. These include:

• You should check the health and immunity of the cow, which leads to high-quality milk production.
• Check the milk production history of your selected cow breed to see if it is fit for your business.
• You need to ensure that the selected cow is in the appropriate age range, as it plays an important role in maximum milk production.

You need to constantly monitor the feeding practices and management of your dairy farm to make it a successful business. For proper management of feeding, you can refer to the following points:

• During calving, cows produce colostrum milk, which contains antibodies for the immunity of the calves. Cows lactate for around ten months until impregnation. Thus, adequate nutrients must be fed for quality milk production during peak lactation.
• The recently born calves must be kept separately in a dry environment with proper ventilation.
• Proper arrangements should be made for the calves to protect them in bad weather. Proper care should be taken, especially during the first two months.
• Vaccination of the calves must be done in a timely manner.

Marketing your dairy products is essential to making the dairy farm business successful. Let your target audience know about your product and its quality. Farmers usually tie up with a dairy co-operative or dairy company to sell their dairy products. Business promotion is required to convince your customers and increase your sales in the future.

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Dairy Farming in India: A Guide to Success and Profit

• by Mohanraj
• July 31, 2023

Welcome to our comprehensive guide to dairy farming in India. With its rapidly growing dairy industry and vast potential, dairy farming presents an exciting opportunity for entrepreneurs and farmers seeking success and profitability. In this guide, we explore the various aspects of dairy farming, from the different techniques and practices to effective farm management, milk production, and dairy business. We also delve into topics such as government support, sustainable farming practices, and financial planning, providing you with a holistic view of the dairy farming landscape in India.

Dairy farming is a complex and multi-faceted industry that requires careful planning and execution to succeed. In this guide, we aim to equip you with the knowledge, skills, and resources necessary to establish and grow a successful dairy farming business.

• 0.1 Key Takeaways
• 1 Overview of Dairy Farming in India
• 2 Importance of Dairy Farm Management
• 3 Milk Production in India
• 4 Dairy Business in India
• 5.1 Role of National Dairy Development Board (NDDB)
• 5.2 Other Government Schemes
• 6.1 Benefits of Joining a Dairy Cooperative
• 6.2 Challenges Faced by Dairy Cooperatives
• 6.3 Conclusion
• 7.1 Automated Milking Systems
• 7.2 Cloud-Based Farm Management Software
• 7.3 Precision Nutrition
• 7.4 Smart Sensors
• 7.5 Robotic Feed Pushers
• 8.1 Lack of Quality Feed
• 8.2 Disease Outbreaks
• 8.3 Low Milk Prices
• 9.1 Organic Farming
• 9.2 Waste Management
• 9.3 Water Conservation
• 10.1 Dairy Training Institutes
• 10.2 Krishi Vigyan Kendras
• 10.3 Private Dairy Companies
• 10.4 Government Schemes
• 11.1 Branding and Packaging
• 11.2 Distribution Networks
• 11.3 Direct Marketing
• 11.4 Diversify Product Line
• 11.5 Price Sensitivity
• 12 Financial Planning and Investment in Dairy Farming
• 13.1 Sustainability in Dairy Farming
• 13.2 Challenges and Solutions
• 14.1 Success Story in Organic Dairy Farming
• 15.1 Inspiration and Aspiration

Key Takeaways

• Dairy farming in India presents a significant opportunity for success and profit.
• Effective dairy farm management is crucial for maximizing profitability and ensuring the long-term success of your dairy farming business.
• The Indian dairy industry is growing rapidly, with a diverse range of opportunities for farmers and entrepreneurs.

Overview of Dairy Farming in India

Dairy farming is an integral part of India’s agricultural system, contributing significantly to its economy and providing livelihoods for millions of people. India is the world’s largest producer of milk, with an estimated production of 188 million tons in 2020-21. Dairy farming practices in India are diverse, ranging from traditional methods to modern, technology-driven systems.

Traditional dairy farming in India involves keeping indigenous cattle breeds, such as Sahiwal, Gir, and Red Sindhi, in a semi-intensive system. These cattle are often free-range, grazing on natural pastures during the day and being brought back to sheds for milking and feeding. Semi-intensive systems involve keeping improved breeds, such as Jersey and Holstein-Friesian, with access to better-quality feed and housing. Intensive dairy farming, the most modern and technology-driven system, involves keeping cattle in sheds and providing them with a controlled environment, feed, and milking machines to maximize milk production.

Breeding, feeding, and housing are crucial components of dairy farming in India. Breeds that produce high quantities of milk and have good adaptability to the local climate are preferred. Proper feeding and nutrition are essential for milk production, with farmers using a combination of natural fodder, concentrates, and mineral supplements. Housing systems vary depending on the system used, but they must provide a clean, dry, and comfortable environment for the cattle.

Importance of Dairy Farm Management

Dairy farm management plays a crucial role in the success and profitability of dairy farming in India. Effective management practices not only ensure the proper care and well-being of livestock, but also impact milk production, quality, and overall farm productivity. As such, it is important for dairy farmers to adopt and implement sound management practices to maximize their profits.

Livestock management is a key component of dairy farm management. It involves various aspects such as feeding, breeding, housing, and health management. Timely and proper feeding of animals with high-quality feedstuff is crucial to ensure optimum milk production. Breed selection, breeding management, and pregnancy management are equally important to maintain herd health and productivity. Providing proper housing facilities and maintaining hygiene to prevent disease outbreak is also critical.

In addition to livestock management, effective financial management is another important aspect of dairy farm management. Dairy farmers need to maintain proper records and conduct financial analysis to monitor their expenditures and track their profits. They also need to have a good understanding of the market dynamics to set competitive prices for their products.

Lastly, breeding management is important for dairy farm management, particularly for maintaining high milk production and quality standards. Breeding management incorporates proper record keeping, animal selection, and use of genetic technologies to improve the quality of the herd.

Milk Production in India

India is the largest milk producing country in the world, accounting for over 18% of global milk production. The country has a diverse range of dairy cattle breeds that provide milk with varying fat content and productivity. The major dairy breeds in India are:

The productivity of these breeds depends on several factors such as the quality and quantity of feed, breeding, and health management. Proper nutrition is essential for milk production, and farmers need to provide a balanced diet to their cattle according to their requirements.

Breeding also plays a crucial role in milk productivity, and genetic improvement of breeds can lead to higher milk yields. Several government and private organizations in India offer artificial insemination services and genetic improvement programs to promote better breeding practices.

Finally, the health of the cattle is crucial for milk production, and farmers need to implement proper health management practices, including regular vaccination, deworming, and disease control measures.

Dairy Business in India

The dairy industry in India has been growing rapidly in recent years, with increasing demand for milk and milk products. The country’s diverse consumer base, expanding middle class, and changing dietary habits have created significant opportunities for entrepreneurs and farmers in the dairy business.

The market for dairy products in India is estimated to be worth over $100 billion, with milk being the primary product. The industry is dominated by unorganized players, but organized players are gaining market share through value-added products and branding. Amul, Mother Dairy, and Nestle are some of the leading players in the Indian dairy industry.

One of the challenges in the dairy business is the fluctuating milk prices, which can affect the profitability of dairy farmers and processors. However, value-added products, such as cheese, yogurt, and ice cream, offer higher margins and can provide stability to dairy businesses.

Setting up a milk processing plant or starting a dairy product manufacturing unit can be a valuable expansion strategy for dairy businesses. This can allow for greater control over product quality, distribution, and pricing. Direct marketing through online platforms, farmer’s markets, and doorstep delivery can also be effective channels.

Despite the challenges, the dairy business in India has immense potential for growth and profitability, and the government has been taking steps to support the sector.

Government Support and Schemes for Dairy Farming

Dairy farming in India is a vital sector that contributes significantly to the country’s economy and provides livelihoods for millions of people. The Indian government recognizes the importance of dairy farming and provides several support schemes and programs for dairy farmers. The National Dairy Development Board (NDDB) is a government agency that promotes the growth and development of the dairy sector in India.

Role of National Dairy Development Board (NDDB)

The NDDB is responsible for providing technical assistance, financial support, and training programs to dairy farmers. It also helps in setting up dairy cooperatives for collective milk production, processing, and marketing. The NDDB operates several schemes to promote dairy farming in India.

The NDDB also operates several training programs and workshops for dairy farmers to enhance their knowledge and skills in dairy farming techniques, farm management, and animal health.

Other Government Schemes

The Indian government provides several other schemes and programs to support dairy farming. The Rashtriya Gokul Mission aims to conserve and develop indigenous cattle breeds. The National Livestock Mission provides financial assistance for livestock development, including dairy farming. The Pradhan Mantri Fasal Bima Yojana provides insurance coverage to dairy farmers for their crops and livestock.

There are also several financial institutions that provide loans and grants for dairy farming, such as the National Bank for Agriculture and Rural Development (NABARD) and the Small Farmers’ Agribusiness Consortium (SFAC).

Dairy Cooperatives in India

Dairy cooperatives have played a crucial role in the development of the dairy industry in India. These cooperatives are owned and operated by dairy farmers, who come together to collectively market their milk and dairy products. The most well-known dairy cooperative in India is Amul, which has become a household name in the country.

A dairy cooperative functions by procuring milk from its members and processing it into various dairy products, such as butter, cheese, and ice cream. The cooperative ensures that the farmers receive fair prices for their milk and also provides them with technical support and training on best dairy farming practices.

Benefits of Joining a Dairy Cooperative

Joining a dairy cooperative offers several advantages for dairy farmers in India. Firstly, it provides them with a stable market for their milk, ensuring that they receive fair prices and are protected from price fluctuations. Secondly, it allows them to access technical expertise and training on various aspects of dairy farm management, such as breeding, feeding, and health management. Thirdly, it enables them to pool their resources and collectively invest in milk processing infrastructure and marketing, which would be difficult for individual farmers to afford.

Dairy cooperatives also promote social and economic development in rural areas. They provide a platform for farmers to come together and collectively address common issues, such as access to finance, technology, and markets. They also create employment opportunities for local people, including women and youth.

Challenges Faced by Dairy Cooperatives

Dairy cooperatives face several challenges in India. One of the biggest challenges is the lack of adequate infrastructure for milk procurement and processing. Many cooperatives struggle to maintain the quality of milk during transportation, which affects the quality of the final product. Additionally, the lack of skilled manpower and technical expertise can hinder their operations and growth.

Another challenge faced by dairy cooperatives is competition from private dairies and multinational companies. These players often have greater resources and marketing capabilities, which makes it difficult for cooperatives to compete.

Despite the challenges faced by dairy cooperatives in India, they continue to play a vital role in the growth and development of the dairy industry. By providing small-scale dairy farmers with access to markets, technology, and training, they have helped to improve their livelihoods and promote rural development. However, there is a need for greater investment and support from the government and other stakeholders to strengthen the capacity and sustainability of dairy cooperatives in India.

Technological Innovations in Dairy Farming

With the increasing demand for dairy products in India, the dairy industry has been quick to adopt technological innovations to improve efficiency, productivity, and profitability. These advancements have revolutionized dairy farming practices and techniques. Here are some of the latest technological innovations in dairy farming:

Automated Milking Systems

Automated milking systems are designed to reduce manual labor and minimize stress on cows. These systems work by attaching teat cups to cows’ udders and extracting milk automatically, without the need for human intervention. The technology can monitor milk yield, quality, and cow health, and can send alerts to farmers if there are any issues. This technology has proven to be a game-changer for large-scale dairy farms, improving milk quality and reducing labor costs.

Cloud-Based Farm Management Software

Cloud-based farm management software is another technological innovation that has gained popularity in recent years. This software allows farmers to manage their farms remotely, using their mobile devices or laptops. It can help farmers monitor farm activities such as milk production, feeding, and herd health. It can also analyze data, identify patterns, and provide recommendations to improve farm operations. This technology has made farm management more efficient and effective for farmers of all sizes.

Precision Nutrition

Precision nutrition is a new approach to dairy farming that involves customizing cow feed to meet specific nutritional needs, based on data such as age, weight, and production level. The technology uses data analytics to determine the optimal combination of nutrients needed to improve milk production and cow health. This technology has helped dairy farmers to reduce feed costs, while improving milk quality and cow health.

Smart Sensors

Smart sensors are small devices that can be attached to cows to monitor their health, activity, and behavior. These sensors can detect early signs of diseases, such as mastitis, and can alert farmers to take action. They can also provide real-time data on cow activity, such as eating and resting patterns, which can help farmers identify if a cow is in heat or experiencing stress. This technology has helped farmers to improve cow health and welfare, reduce veterinary costs, and increase milk yield.

Robotic Feed Pushers

Robotic feed pushers are designed to push feed towards cows, ensuring they have access to fresh feed at all times. These devices can be programmed to push feed at specific intervals, which reduces waste and feed costs. They can also be adjusted to accommodate different types of feed and cow breeds. This technology has helped farmers to improve feed management, reduce labor costs, and improve milk production.

The adoption of these technological innovations has transformed the dairy industry in India, making dairy farming more efficient, profitable, and sustainable. Farmers who are willing to invest in these technological innovations are likely to stay competitive in the growing dairy market.

Dairy Farming Challenges and Solutions

Dairy farming in India comes with unique challenges that require proactive solutions. Here are some common challenges faced by dairy farmers and the strategies to overcome them:

Lack of Quality Feed

Access to quality feed is crucial for the health and productivity of dairy cattle. However, many smallholder farmers struggle to provide sufficient and nutritious feed due to limited resources and knowledge.

Solution: Dairy farmers can explore various strategies to improve feed management, such as:

• Establishing fodder banks to grow and store animal feed
• Employing silage making methods to store feed for long periods
• Combining locally available feed sources to create balanced diets for the cattle
• Engaging with extension services or private consultants to learn best practices in feed management

Disease Outbreaks

Disease outbreaks can have significant economic impacts on dairy farmers, reducing milk yields and increasing healthcare costs. Outbreaks can be caused by infections, parasites, or environmental factors.

Solution: Dairy farmers can implement the following biosecurity measures to prevent and control disease outbreaks:

• Regular vaccinations and health check-ups for the cattle
• Maintaining proper hygiene and sanitation in the farm
• Isolating sick animals from healthy ones
• Implementing quarantine protocols for new animals or visitors to the farm

Low Milk Prices

Fluctuations in milk prices can have significant impacts on the profitability of dairy farms. Smallholder farmers often lack bargaining power in the market and may receive lower prices for their milk.

Solution: Dairy farmers can explore alternative marketing channels to sell their milk, such as:

• Directly selling to consumers through farmer’s markets, online platforms, or doorstep delivery
• Collaborating with other farmers to form cooperatives or producer groups to increase bargaining power and access to markets
• Value addition through processing and manufacturing of dairy products, such as cheese, butter, or yogurt

By implementing these solutions, dairy farmers can overcome challenges and achieve success in their ventures.

Sustainable Dairy Farming Practices

In recent years, there has been a growing emphasis on sustainable practices in dairy farming in India. As the demand for organic and environmentally-friendly products increases, farmers are adopting sustainable techniques that not only benefit the environment but also enhance their long-term profitability.

Organic Farming

One such practice is organic farming, which involves the use of natural fertilizers and pesticides. Organic farming not only improves soil health but also reduces the risk of harmful chemical residues in milk and dairy products.

In addition to organic farming, farmers are also exploring other sustainable practices, such as agroforestry, crop rotation, and intercropping. These techniques diversify the farm’s income streams, while also improving soil fertility, reducing erosion, and providing shelter for livestock.

Waste Management

Another critical aspect of sustainable dairy farming is waste management, which involves proper disposal of animal waste and other by-products. Farmers are adopting various waste management techniques, such as composting, biogas generation, and vermicomposting, to convert waste into valuable resources.

These practices not only reduce the environmental impact of dairy farming but also provide an additional source of income for farmers, through the sale of compost and biogas.

Water Conservation

Water conservation is also a crucial element of sustainable dairy farming in India, given the scarcity of water resources in many regions. Farmers are adopting water-efficient techniques, such as drip irrigation, rainwater harvesting, and water recycling, to conserve water and reduce water-related expenses.

Furthermore, farmers are also exploring alternative sources of water, such as groundwater recharge and wastewater treatment, to ensure a more sustainable water supply for their farms.

Incorporating sustainable practices in dairy farming not only benefits the environment but also enhances the long-term profitability of dairy farming in India. As the demand for sustainable and organic products continues to grow, farmers who adopt these practices will be well-positioned to take advantage of new markets and increase their profitability.

Training and Education for Dairy Farmers

Training and education play a critical role in ensuring the success and profitability of dairy farming in India. Aspiring dairy farmers should seek out training programs, workshops, and courses to enhance their knowledge and skills in dairy farming techniques, farm management, and animal health. The following are some of the training and educational opportunities available for dairy farmers in India:

Dairy Training Institutes

Dairy training institutes, such as the National Dairy Research Institute (NDRI) and the Indian Council of Agricultural Research (ICAR), offer courses and diploma programs in dairy technology, dairy engineering, and animal husbandry for students and professionals. These institutes provide hands-on training in dairy farming practices, farm management, and milk processing. Dairy farmers can enroll in short-term training programs to acquire new skills or hone existing ones.

Krishi Vigyan Kendras

Krishi Vigyan Kendras (KVKs) are agricultural extension centers established by the Indian Council of Agricultural Research (ICAR). These centers provide training and education to farmers on various aspects of agriculture, including dairy farming. KVKs offer workshops, field demonstrations, and training programs on topics such as breed selection, feeding management, health management, and milk processing. Dairy farmers can consult KVK experts for advice on farm management, technology adoption, and financial planning.

Private Dairy Companies

Private dairy companies, such as Amul and Mother Dairy, also offer training and education programs for dairy farmers. These companies provide hands-on training in milk procurement, milk quality testing, and milk processing. Dairy farmers can learn about the latest technology and best practices in dairy farming through these programs. Additionally, private dairy companies offer technical support and guidance to farmers on breeding, feeding, and health management.

Government Schemes

The Government of India has launched various schemes to promote dairy farming in the country, such as the Dairy Entrepreneurship Development Scheme (DEDS) and the National Livestock Mission (NLM). These schemes provide training and education to dairy farmers on various aspects of dairy farming, including breed selection, feeding management, health management, and milk processing. Dairy farmers can also receive financial assistance for training and capacity building under these schemes.

Overall, training and education are critical components of dairy farming in India. By acquiring new skills and knowledge, dairy farmers can improve their farm management practices, enhance milk quality and productivity, and maximize profitability.

Marketing and Selling Dairy Products

Marketing dairy products in India requires careful planning and execution to reach the target audience, build brand awareness, and generate sales. Here are some strategies and channels to consider:

Branding and Packaging

Creating a strong brand image and packaging design can help differentiate dairy products and attract consumers. Use colorful designs, catchy slogans, and high-quality packaging materials for added appeal.

Distribution Networks

Establishing reliable distribution networks is crucial for getting dairy products to customers. Identify potential distributors, wholesalers, and retailers who can reach your target market efficiently and cost-effectively. Consider using e-commerce platforms to reach a wider audience.

Direct Marketing

Direct marketing is an effective way to build customer loyalty and generate repeat sales. Participate in farmer’s markets, local events, and trade shows to showcase your dairy products and engage directly with customers. Offer home delivery services to create added convenience for customers.

“Effective branding and packaging, reliable distribution networks, and direct marketing are key to successfully selling dairy products in India.”

Diversify Product Line

Diversifying your product line can help you cater to a wider audience and increase sales. Consider adding value-added dairy products like flavored milk, cheese, and ice cream to your portfolio. This will help you tap into the growing demand for processed dairy products in India.

Price Sensitivity

Price is an important factor for consumers in India, especially in rural areas. Keep product prices affordable and competitive to attract and retain customers. Offer promotions and discounts to encourage trial and repeat purchases.

Financial Planning and Investment in Dairy Farming

One of the key factors for success in dairy farming is effective financial planning and investment. Dairy farming is a capital-intensive business that requires significant investment in infrastructure, equipment, and livestock. Therefore, it is essential to estimate the cost of setting up and running a dairy farm, and create a budget to manage expenses and revenue streams.

Some of the costs involved in dairy farming include purchasing land, constructing sheds, buying milking machines, feed, and veterinary services. It is crucial to estimate the recurring and non-recurring expenses over the long-term, including the costs of feeding, breeding, and health management.

Once financial planning is in place, there are several financing options for dairy farmers. The government provides various schemes and loans for dairy farming through organizations such as the National Bank for Agriculture and Rural Development (NABARD) and the Small Farmers’ Agribusiness Consortium (SFAC). Dairy farmers can also explore private financing options such as banks and financial institutions.

It is also essential for dairy farmers to have a good understanding of financial analysis and management. Keeping records of expenses and revenue streams can help identify inefficiencies and opportunities for improvement. Dairy farmers can also invest in training programs that cover financial management, cash flow management, and risk mitigation strategies.

Effective financial planning and investment can help dairy farmers create a sustainable and profitable business model. By estimating costs, securing financing, and maintaining good financial management practices, dairy farmers can ensure the long-term success of their dairy farming ventures.

Future Prospects of Dairy Farming in India

The future of dairy farming in India looks bright as the industry continues to grow and evolve. With a soaring demand for milk and milk products, there are endless opportunities for dairy farmers to expand their businesses and increase their profits. As the government invests in promoting the dairy sector, farmers can benefit from various schemes and financial assistance to enhance their productivity and profitability.

The emerging trends in the dairy industry, such as the increasing demand for organic milk and value-added products, provide opportunities for farmers to diversify their product range and cater to niche markets. With the rapid advancements in technology, farmers can adopt modern dairy farming techniques to improve the efficiency and productivity of their farms.

Sustainability in Dairy Farming

As the global focus shifts towards sustainability, dairy farmers in India can play a significant role in promoting sustainable dairy farming practices. By implementing eco-friendly methods such as organic farming, waste management, and water conservation, farmers can preserve natural resources and contribute to protecting the environment.

Moreover, sustainable dairy farming practices can result in long-term profitability, as consumers increasingly appreciate and demand ethical and environmentally conscious products. By embracing sustainable practices, dairy farmers can improve their brand image and achieve a competitive edge in the market.

Challenges and Solutions

Although the dairy industry presents numerous opportunities, there are also several challenges that dairy farmers face. These challenges include the lack of quality feed, disease outbreaks, and low milk prices.

To overcome these challenges, farmers can implement various strategies such as improving feed management, implementing biosecurity measures, and exploring alternative marketing channels. By adopting these solutions, farmers can protect their herds, increase their milk production, and secure a fair price for their milk.

In conclusion, the future prospects of dairy farming in India look promising. With the government’s support, the industry’s growth, and the farmers’ hard work and dedication, the dairy sector in India is expected to continue thriving in the years to come.

Success Stories in Dairy Farming

India has seen several success stories of dairy farmers who have leveraged their skills and knowledge to create profitable businesses. These farmers have not only achieved financial independence but have also contributed to the growth of the dairy industry in India.

One such example is Jitendra Kumar from Bihar, who started his dairy farm with just two cows and gradually expanded it to over 100 cows. He credits his success to effective dairy farm management, timely veterinary care, and proper nutrition for his cattle. Today, Jitendra supplies over 500 liters of milk to the local market daily and has also set up his own milk processing plant.

Another inspiring story is of Mansukhbhai Prajapati from Gujarat, who developed the Mitticool refrigerator, made entirely of clay and operated without electricity. This innovation has revolutionized the storage of dairy products, especially in rural areas, where access to electricity is limited. Mansukhbhai has also set up his own dairy farm where he practices sustainable and organic dairy farming.

Success Story in Organic Dairy Farming

The Pondicherry-based farm, Auroville, is another great example of successful dairy farming in India. The farm practices organic and sustainable dairy farming and has over 200 cows of different breeds. Auroville focuses on producing high-quality milk, cheese, and other dairy products, which are sold through their own distribution network and organic food stores.

Their commitment to ethical and sustainable dairy farming has earned them a loyal customer base, and they have also received several awards for their contribution to the dairy industry.

These success stories demonstrate the potential and opportunities available for dairy farmers in India. By adopting best practices, leveraging technological advancements, and implementing sustainable and ethical farming methods, dairy farmers can not only achieve success and profitability but also contribute to the growth of the dairy industry in India.

Dairy farming in India presents a tremendous opportunity for entrepreneurs and farmers to achieve success and profit. By adopting effective dairy farm management practices, such as financial management, record-keeping, and livestock management, dairy farmers can maximize their milk production and quality.

In addition to government support and schemes, such as the Dairy Entrepreneurship Development Scheme (DEDS), dairy cooperatives like Amul and Mother Dairy play a critical role in ensuring fair prices for dairy farmers. Technological innovations, such as automated milking systems and cloud-based farm management software, can also improve efficiency and profitability in dairy farming.

Despite the challenges faced by dairy farmers in India, such as low milk prices and disease outbreaks, the potential for long-term profitability and environmental stewardship through sustainable dairy farming practices is significant.

Inspiration and Aspiration

Success stories of dairy farmers who have achieved significant growth and profitability in the Indian dairy industry serve as inspiration and aspiration for aspiring dairy farmers. By exploring the emerging trends, such as the growing demand for organic milk, value-added products, and dairy exports, dairy farmers can stay abreast of the market and make informed business decisions.

Ultimately, the key to success in dairy farming in India is a combination of effective dairy farm management practices, market insights, and a willingness to adapt and innovate. With these tools, dairy farmers can establish and grow their businesses, contributing to the growth of the Indian dairy industry as a whole.

Q: What is the potential for success and profit in dairy farming in India?

A: Dairy farming in India offers significant potential for success and profit due to the growing dairy industry and increasing consumer demand for dairy products. With effective management and proper techniques, entrepreneurs and farmers can tap into this market and find success.

Q: What are the different systems of dairy farming in India?

A: In India, dairy farming can be done using traditional, semi-intensive, or intensive methods. These systems vary in terms of the scale of operation, breed selection, feeding practices, and housing facilities.

Q: How important is dairy farm management for the success of dairy farming in India?

A: Dairy farm management plays a crucial role in the success and profitability of dairy farming in India. Effective management of finances, records, health, and breeding can help farmers maximize their milk production and ensure the overall efficiency of their farms.

Q: What factors influence milk production in India?

A: Milk production in India is influenced by various factors, including nutrition, breeding practices, and health management. Providing proper nutrition, using high-quality breeds, and implementing effective health management strategies can significantly impact milk production.

Q: What are the opportunities and challenges in the dairy business in India?

A: The dairy business in India offers opportunities for growth and expansion, driven by market trends and consumer demand. However, challenges such as competition, fluctuating milk prices, and establishing distribution networks need to be addressed for long-term success.

Q: What government support and schemes are available for dairy farming in India?

A: The government of India provides support for dairy farming through organizations like the National Dairy Development Board (NDDB) and schemes such as the Dairy Entrepreneurship Development Scheme (DEDS). Financial assistance, training programs, and subsidies are available to dairy farmers.

Q: What is the role of dairy cooperatives in India?

A: Dairy cooperatives, such as Amul and Mother Dairy, play a significant role in the Indian dairy industry. They facilitate milk procurement, processing, marketing, and ensure fair prices for farmers. Joining a dairy cooperative can provide various benefits, but there may also be challenges.

Q: How do technological innovations impact dairy farming?

A: Technological innovations in dairy farming, such as automated milking systems and cloud-based farm management software, can improve efficiency, productivity, and profitability. Precision nutrition techniques can also enhance the overall health and well-being of dairy cattle.

Q: What are the common challenges faced by dairy farmers in India?

A: Dairy farmers in India face challenges such as lack of quality feed, disease outbreaks, and low milk prices. However, implementing strategies like improving feed management, implementing biosecurity measures, and exploring alternative marketing channels can help overcome these challenges.

Q: Why is sustainable dairy farming important?

A: Sustainable dairy farming practices, such as organic farming and waste management, are crucial for both long-term profitability and environmental stewardship. Adopting sustainable practices can enhance the quality of dairy products and contribute to the overall sustainability of the dairy industry.

Q: What training and education opportunities are available for dairy farmers in India?

A: Dairy farmers in India can access training programs, workshops, and courses to enhance their knowledge and skills in dairy farming techniques, farm management, and animal health. These educational opportunities can help farmers stay updated with the latest industry practices and improve their overall efficiency.

Q: What are the marketing strategies for selling dairy products in India?

A: To sell dairy products in India, effective marketing strategies like branding, packaging, and distribution networks are essential. Farmers can also explore direct marketing avenues such as farmer’s markets, online platforms, and doorstep delivery to reach consumers directly.

Q: How can dairy farmers plan their finances and investments?

A: Dairy farmers can plan their finances and investments by estimating costs, budgeting, and conducting financial analysis. They should also explore financing options, grants, and loans available specifically for dairy farmers to support their ventures.

Q: What are the future prospects of dairy farming in India?

A: The future of dairy farming in India looks promising, with growing demand for organic milk, value-added products, and dairy exports. Technological advancements, policy support, and increased consumer awareness are likely to drive the growth of the dairy industry in the coming years.

Q: Are there any success stories in dairy farming in India?

A: Yes, there are many success stories of dairy farmers who have achieved significant growth and profitability in the Indian dairy industry. Their strategies, innovative approaches, and lessons learned can serve as inspiration and motivation for aspiring dairy farmers.

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• Milking Success: A Step-by-Step Guide to Launching a Profitable Dairy Farm Business in India

Are you ready to elevate your dairy farming into a profitable business?

Look no further!

This comprehensive guide is built in a manner that would walk you through the essential steps in launching a successful dairy farm business in India. Be it hunting for the right cattle breed or setting up the infrastructure to implement management practices, we have you covered. 

With India being one of the world's largest milk producers and consumers, the dairy industry is a lucrative business option, offering immense potential for growth and profitability. Afterall, it is the implementation of the right strategies and market opportunities that you can build a thriving dairy farm business that not only meets the demand for high-quality milk but also generates substantial revenue. 

This guide will provide you with everything you need to know to ensure a solid foundation for your dairy farm business. 

Whether you are a novice farmer looking to start from scratch or an experienced entrepreneur seeking to expand your business, this guide will be your go-to resource for gauging success in the Indian dairy industry. 

Get ready to milk the opportunities and embark on a profitable venture.

Table of Contents

Unravelling the Potential: Exploring India's Favourable Landscape for Dairy Processing

Pros of dairy farm business in india, step 1- research your dairy business plan                      , step 2- selecting the right breed of dairy cows, step 3- setting up the infrastructure for a dairy farm, step 4- dairy farm management and feeding practices, step 5- dairy farm business plan and financial projections, step 6- marketing and selling dairy products in india, final thoughts.

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India supports a wealth of production of about 146 million, making it the largest milk producer globally. As mentioned by the Ministry of Food Processing Industries, India's milk production is expected to reach around 180 million MT by 2020, from the current 146 million MT, where the projected demand (by NDDB) was anticipated to reach around 200 million MT. 

But, as propounded, the Indian Dairy Market is deemed to contribute as one of the largest and quickest growing ways to reach the markets in the world. Considering these details, India has managed to transcend and reach a higher position in milk production globally, catering to the rising bovine population. Accordingly, it is noteworthy that the existing potential for the Indian milch herd remains untapped & unattended. As their record suggests, the per capita availability of milk had reached around 322 grams per day, which had been relatively higher than the world average of 239.7 grams per day. 

As noted, the growth drivers of this essential demand are due to the increasing health concerns and the disposable incomes topping the charts of milk products in India. For instance, to cater to this high-rising demand, dairy players have entered the dairy segment, having products such as flavored milk, cheese, yogurt & butter, etc. 

Dairy Farm business in India is one of the most gainful and advantageous businesses, which offers prospects and is anticipated to make considerable strides in the long run. To Harvest the rewards, you must understand why it is a profitable idea for many in the first place- 

• The demand for dairy products is skyrocketing, reaching untapped potential while living the benefits it offers. Because of this, growth remains evident while also contributing to the rewarding business in India.
• Within this sector, you form solidified relationships with people across different sectors while establishing a network that endorses or appreciates long-term growth.
• Once you adapt to how the business functions, you may find this venture easier than it seems. You can easily cope with the model and get things done quickly. 

Step-By-Step Procedure to Start a Dairy Farm Business in India

If you hail from the Dairy Business and are looking to establish a business in India, then you must consider these steps, which are as follows-

Before carrying out the business operations, you must ensure you are pursuing your business objectives and have an overall mission. Have a plan of action for your dairy farming business so the management can fastrack this process and encourage you to procure the business loans or subsidies.

It is to be noted that having a dairy business is highly lucrative, with the undying demand for milk production in India. As a full-time season business, milk production must rise, encouraging entrepreneurs. 

Whenever you choose a breed of cows, you must ensure the following factors contribute to producing healthy and high-quality milk. Let us read the same-

• Health and immunity are the most important factors when choosing a cow. Having one can lead to quality milk production and a productive life. 
• Make sure you check the cow's milk production history, which would indicate whether a cow is deemed fit. 
• A cow within the appropriate age range is essential for milk production since this is when they produce the most milk. 

Dairy farms require well-ventilated, spacious facilities for animals. Among other things, there are various arrangements that you must look for to ensure that you invest wisely and expend rightfully. Let us have a look at the things which you should consider-

• One must ensure sufficient land, depending on the number of animals (cows and buffaloes) a business usually owns.
• One must consider ensuring a good slope & effective drainage system. Alongside, a footbath with disinfectants should be provided at the gate.
• Installing a Shed is a must to protect them against the harsh weather conditions and keep them safe.
• Ensure better living conditions for the animals, along with waste disposal 
• If you are trying to scale your business, keep a space for the land where you can encourage crop cultivation, along with other processes.

Monitoring Management and feeding practices closely is crucial to operating a dairy farm successfully. To ensure the management during the feeding practices, you must remember the following- 

• Cows produce colostrum milk during calving, which has antibodies for a calf's immunity. The cow lactates for about ten months until impregnation. For instance, a healthy diet is essential for quality milk production. One must ensure the cows are fed adequate nutrients to achieve milking potential during peak lactation. 
• Calves that have just been born must be kept separately in a ventilated and dry environment. 
• Arrangements must be made to protect the calves against extreme weather conditions, mainly during the first two months. 
• Vaccination of claves must be adequately ensured and taken off. 

For beginning a venture, such as a Dairy Farm Business, the National Bank for Agriculture and Rural Development (NABARD) initiated something called the Dairy Entrepreneurship Development Scheme (DEDS), where the farmers can reap the benefits from the subsidies acquired on dairy farming loans, which are usually approved and found eligible on NBFCs and banks.    Within this, farmers may undertake as much as 33.33% subsidy of the total project cost on the dairy farming loans, as much as Rs 7 Lakh, by visiting the approved Regional Rural Banks (RRBs) or commercial banks. Accordingly, the applicants can avail of these subsidies and any loan-regarding information by visiting NBFC and the nearest bank.

Considering the government incentives, you would still have to consider various points to have a financial plan. You may even need to purchase cows or buffaloes to arrange for fodder, transport, and shelter. This is not it, as beginning a dairy business in India covers costs in various aspects, ranging from insurance to medical facilities.

Starting a business is one thing, but keeping it alive is rare. To keep it running & ongoing, let your target audiences know about your high-quality products. No wonder there lies high competition in business, and it is through business promotions only (be it an online review or word of mouth) that you can convince your customers and increase sales in the future.

Therefore, we can establish a dairy farm business in India with it being a stepwise process involving choosing the business plan, the right breed, setting the infrastructure, feeding practices along marketing of these produced Dairy Products.

Suppose you wish to establish a successful dairy farm business in India. In that case, you must conduct thorough market research, choose a suitable location, acquire cattle, and use efficient management practices by adhering to regulatory guidelines. Consider animal health, seek technologies that uplift your business motives, and opt for marketing channels to pursue sustainable growth.

Public Limited Company

A public limited business structure is great for long run but has more regulatory. Apart from all the advantages of private limited company. It has the ability to have any number of members, ease in transfer of shareholding and more transparency.

FSSAI Basic

If you are into food business with revenue below 12 Lakhs, you must obtain an FSSAI Registration before starting operations. Corpseed can help you to obtain FSSAI registration for your business.

FSSAI Central

FSSAI Central License PAN India in no time. In case you want to import/export or sell your products on an E-Commerce Website, you must obtain an FSSAI Central License. Team Corpseed will help you to obtain FSSAI central license.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.

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Starting a Dairy Farming Business in India: A Comprehensive Guide

• Post author: Sumitha
• Post published: November 13, 2023
• Post category: Business Tips

Starting a Dairy Farming Business in India

India has a long and rich history of dairy farming , dating back to ancient times. With its diverse climate, abundant natural resources, and strong tradition of milk consumption, the dairy industry has always played a significant role in the country’s economy. Today, dairy farming in India is a booming business with immense potential for growth and profitability. If you’re considering entering this industry, this comprehensive guide will walk you through the steps to start a successful dairy farming business in India .

1. Conducting Market Research

Before diving into the world of dairy farming, it’s essential to gather information about the dairy industry in India. This includes understanding market trends, consumer preferences, and the demand for dairy products in your region. Researching your competition is also crucial, as it can help you identify gaps in the market and tailor your business plan accordingly.

2. Developing a Business Plan

A well-structured business plan is the foundation of any successful venture. In your business plan, outline your objectives, financial projections, and strategies for growth. Consider the following key components:

• Farm Location : Choose a location that provides easy access to markets and suppliers. The climate and geography of the area should be suitable for dairy farming.
• Dairy Farm Size : Decide on the size and scale of your dairy farm. This will depend on your available capital and resources. It’s advisable to start small and gradually expand as you gain experience.
• Dairy Breed Selection : Select the dairy cattle you want to raise. Common dairy breeds in India include Holstein, Jersey, and Gir.
• Infrastructure and Equipment : Plan the construction of sheds and milking parlours and purchase necessary equipment like milking machines, chaff cutters, and storage tanks.
• Feeding and Nutrition : Develop a feeding plan for your cattle. Ensure they receive a balanced diet to maximize milk production.
• Healthcare and Veterinary Services : Arrange for regular healthcare checkups and access to veterinary services for your cattle.
• Marketing and Distribution : Determine how you will market and distribute your dairy products. Consider selling to local dairy cooperatives, directly to consumers, or to local vendors.
• Financial Projections : Estimate your initial investment, operational costs, and expected revenues. This will help you secure financing and manage your finances effectively.

3. Legal and Regulatory Requirements

Starting a dairy farming business in India involves adhering to various legal and regulatory requirements. These may include obtaining licenses and permits, registering your business , and complying with state and central government regulations. Consult with local agricultural authorities and legal experts to ensure you meet all legal obligations.

4. Farm Setup and Infrastructure

The physical infrastructure of your dairy farm is a crucial aspect of its success. Here are some key elements to consider:

• Sheds and Housing : Construct comfortable and well-ventilated sheds for your cattle. These should protect them from extreme weather conditions.
• Milking Parlors : Set up an efficient milking parlour with milking machines and facilities for proper hygiene.
• Storage Facilities : Build storage facilities for feed, hay, and milk. Proper storage helps maintain the quality of your dairy products.
• Fencing : Install sturdy fencing to protect your cattle and prevent them from straying.
• Water Supply : Ensure a reliable and clean water supply for your cattle.

5. Dairy Cattle Selection

Selecting the right breed of cattle is crucial for a successful dairy farming business. Here are some common dairy cattle breeds in India:

• Holstein : Known for its high milk production, Holstein cattle are black-and-white in colour and are popular in commercial dairy farming.
• Jersey : Jersey cows are smaller than Holsteins but produce milk with a higher fat content. They are known for their adaptability to various climatic conditions.
• Gir : Gir cattle are indigenous to India and are well-suited to the country’s climate. They produce milk with a high-fat content and are hardy animals.

Choose the breed that aligns with your farm’s objectives and local climate. Consider factors like milk yield, disease resistance, and adaptability when selecting.

6. Feeding and Nutrition

Proper nutrition is essential for maximizing milk production. Develop a feeding plan that includes a balanced diet for your cattle. This diet should consist of roughage, concentrates, minerals, and vitamins. Consult with a livestock nutritionist to ensure that your cattle receive the right nutrients at the appropriate times.

7. Health Care and Management

Maintaining the health of your cattle is vital for a successful dairy farming business . Implement a health management plan that includes regular vaccinations, deworming, and disease prevention. Have a veterinarian on call to address any health issues promptly.

8. Breeding and Reproduction

Reproduction management is crucial for maintaining a consistent milk supply. Implement a breeding program to ensure your cows calve at regular intervals. Artificial insemination is a common practice in dairy farming to improve the genetic quality of the herd.

9. Milking and Milk Handling

Efficient milking practices are essential for dairy farming success. Invest in milking machines and train your staff in proper milking techniques. Maintain high hygiene standards during milking and milk handling to ensure the quality and safety of the dairy products.

10. Milk Processing and Value-Addition (Optional)

If you wish to diversify your dairy business, consider adding value to your milk by processing it into cheese, butter, ghee, or yogurt. This can open up new revenue streams and help reduce wastage.

11. Marketing and Sales

Once your dairy farm is operational, you must establish a marketing and distribution strategy. Here are some options to consider:

• Local Dairy Cooperatives : Many areas have dairy cooperatives to help you market and sell your milk.
• Direct Sales to Consumers : Selling milk and dairy products directly through a farm store or home delivery can be profitable.
• Local Vendors and Retailers : Consider selling to local vendors, grocery stores, or retailers in your area.
• Online Presence : Create an online presence through a website or social media to reach a broader customer base.

12. Financial Management

Proper financial management is crucial to the sustainability of your dairy farming business. Keep detailed records of your expenses and revenues, and regularly review your financial statements. This will help you make informed decisions and identify areas for cost savings.

13. Sustainability and Environmental Considerations

Dairy farming can have an environmental impact, so it’s important to implement sustainable practices. Consider eco-friendly waste disposal, water conservation, and energy-efficient technologies. These not only reduce your environmental footprint but can also lead to cost savings in the long run.

14. Challenges and Risks

Dairy farming, like any other business, comes with its set of challenges and risks. These may include fluctuating milk prices, disease outbreaks, and adverse weather conditions. It’s important to have contingency plans in place to mitigate these risks.

15. Government Schemes and Subsidies

The Indian government offers various schemes and subsidies to support dairy farming. These programs can provide financial assistance, training, and resources to help you establish and grow your dairy farming business. Check with your local agricultural department for information on available schemes and how to apply for them.

16. Continuing Education and Training

Dairy farming is a dynamic field with new technologies and practices emerging regularly. Consider investing in continuing education and training programs to stay updated and improve your skills.

Starting a dairy farming business in India can be a rewarding and profitable venture. With the right planning, infrastructure, and management, you can build a successful dairy farm that not only contributes to the country’s dairy industry but also provides a sustainable source of income for your family.

In conclusion, starting a dairy farming business in India with the help of Kanakkupillai can provide you with expert assistance in navigating the complexities of registration, compliance, and financial management. With the right support, you can build a thriving dairy business, contributing to the nation’s dairy industry and your financial success.

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Here Is Your Step-By-Step Guide to Start a Dairy Farming Business In India

Curated By : Business Desk

Local News Desk

Last Updated: November 18, 2022, 12:45 IST

Delhi, India

Milk production in India increases by more than 3% to 4% every year.

To start a dairy farm, it is mandatory to register with the Food Safety and Standard Authority of India (FSSAI).

A dairy farm business is typically referred to as an all-season opportunity as there’s a constant demand for milk, as well as other dairy products, across the globe. According to reports, milk production in India increases by more than 3% to 4% every year. Over the years, the dairy farming industry has grown to become a lucrative sector for entrepreneurs.

An individual venturing into this business is usually expected to devote 14 to 18 hours to it every day. In addition to that, extensive effort and useful resources are also necessary for the successful operation of a dairy farm. If you’re planning to start a dairy farm, then you must be aware of these factors:

Certifications:

The Department Of Animal Husbandry, Veterinary & Dairy Development should be contacted first to open a typical individual dairy farm. There is no need to contact any other government agency if your farm is registered with the Dairy Cooperative Society.

To start a dairy farm, it is mandatory to register with the Food Safety and Standard Authority of India (FSSAI). If it’s a large farm, then the pollution control board’s approval might be needed. The requirements are set by the Bureau of Indian Standards for a dairy farm. These consist of the following:

BIS IS 11799:1986 (R2002): For Cattle Housing In Rural Areas

BIS IS 11942:1986 (R2002): For Gaushalas and Other Organized Milk Producers

BIS IS 12237:1987 (Reaffirmed 2004): For a loose housing system for animals

After certifications, there are a few factors a businessman has to take care of, which are:

Outline a business plan that includes – mission, vision, location, land, cattle vaccination, shed, food and equipment.

Selection of cattle and its breed. You can either go for popular buffalo breeds like Murrah, Mehsani, Surti and

Jaffarabadi or milch breeds like Gir, Tharparkar and Sahiwal, to name a few.

In case of a loan, you can get a subsidy from the government under the Dairy Entrepreneurship Development Scheme, which is provided by the National Bank for Agriculture and Rural Development (NABARD)

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A Short Guide To Creating A Dairy Farming Business Plan

India is the largest producer of milk, contributing to 22% of global production. Milk is one such commodity that most Indians consume daily, as a preferred drink as well as in its various other forms. Amidst such high demand, the Indian dairy market has been currently valued at approximately Rs 11.35 lakh crores. In a country like India, dairy farming is a lucrative business option for farmers. As a business that does not depend on season, the probability of loss is low. It is one of those businesses which can be started from anywhere and doesn’t even require highly skilled labor. While dairy farming can offer you great profits, it also requires a lot of hard work. If you are looking to start your own dairy farm but are not sure how to set it up, this article will help you create your dairy farm business plan.

1. Create a physical plan: Before setting up a dairy farm business, it is important to take into account the market requirement based on factors like the target audience, their household income, the geography, culture of the place, etc. Based on these factors, you can decide on the type of animals you want to keep, the number of animals you need, or the scale of your business.

2. Choose location: When selecting land for your dairy farm business, you must consider factors like availability of consistent water supply, size of the land, soil type, and quality of grass for cattle grazing. You could either rent or lease a location for the dairy farm or set it up on a piece of land you already own. Most people prefer to set up a dairy business near cities where there is an assured market and easy transportation facilities, or within villages where labor and input costs are low and there is no dearth of fodder land. 3. Plan your investment: Once you have decided on the scale of your business, you can estimate the investment and plan to arrange it. Several loans and subsidy schemes can come to your rescue as the Indian government is promoting the dairy farming business. The National Bank for Agriculture and Rural Development (NABARD) offers a capital subsidy of 25% of the cost of setting up a dairy business. The dairy farmers from SC/ST communities are entitled to get a capital subsidy of 33% under the scheme. This subsidy is, however, available to those who have planned to keep a maximum of ten cows on their farm. Any nearby bank in your area can help you with a detailed understanding of the finance process. Apart from the subsidy from NABARD, there are also a few loan schemes for those who want to set up or grow their dairy business.

4. Obtain a license: Besides preparing the plan and arranging for the capital, farmers should also register their small business enterprises under the Food Safety and Standards Authority of India (FSSAI) . A product with FSSAI certification is more preferred by the consumers over non-certified products in the market. – Small-scale dairy enterprises with an annual turnover of not more than 12 lakhs can apply for the basic FSSAI registration. – As the business upscales and reaches the threshold of 12 lakhs, the registration has to be upgraded to a state license . Some of the other key licenses are- dairy farm license, trade license, shed license, decke kaufen , company registration certificate, and registration with ROC or registrar of firms. For your dairy farming business, you must definitely obtain all necessary registrations and licenses.

5. Purchase of animals : A better breed of animals will ensure a better quality of milk for your business, including hausarbeit schreiben lassen preis . It is important to purchase a breed that yields more milk, suits the area’s climatic conditions, and helps your business expand quickly. Cow breeds such as Gir, Red Sindhi, Sahiwal are known for high milk yields. For buffaloes, Mehsana or Murrah are usually preferred and for goats, you can opt for Jamnaari, Boer Goat, Barbari. Also, make sure to get insurance for your farm animals.

6. Building farm infrastructure: Your dairy farm requires you to build the right kind of infrastructure to carry out operations seamlessly ghostwriter . Sheds – A properly covered area at the farm where cattle can be kept is a must This area, if elevated, prevents any form of water stagnation, thus ensuring a hygienic environment for the cattle. Roughly, one cow requires an 8 x 12ft. shed area , so you can estimate the total shed area based on the number of animals at your farm. Water – Clean and abundant water is extremely important at a dairy farm not just for the cattle but also to grow green fodder. Fodder – Green fodder is an economical source of nutrients for the farm animals, helping maintain good health and improving the breeding efficiency of the animals. Including green fodder in cattle, food can also help reduce the cost of milk production.   7. Hire labor: Labor is the most crucial aspect of your business, including ghostwriter hausarbeiten . You must employ people who have some expertise in handling farm activities and raising animals. You can also train the labor force so that there is a process followed by everyone at the farm.

Lastly, it is equally important to find the right marketing channels, including ghostwriting hausarbeit , to attract customers to the area. You must find a way to make doorstep delivery possible by tying up with partners. For instance, you can list your milk and dairy products on Farmsnation and easily find customers in the area. Dairy farming is a growing avenue, and if you are interested in this business, now is the time for you to start.

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Essentials of A Dairy Farming Business Plan

We live in a country which is not only the largest consumer of milk in the world but which also produces 50 – 60 million tonnes of milk every year! Thus, the dairy farming business is gaining prominence in today’s world. The dairy farming business is being seen as a profitable venture by both, new and experienced entrepreneurs in modern India. Large scale milk production plays an important role in building the country’s economy. Furthermore, hardly any places in India that are not suitable for dairy farming. Modern methods of farming and innovative methods, make dairy farming a good business to get into now. However, dairy farming requires high investment and a lot of planning in the initial stages. This article will take you through the steps of starting a food business and write a business plan.

Dairy Farming Business Plan

Executive summary.

Creating a dairy farming business plan is always a good strategy, it will be your saviour as it will act as a reference guide for your business. An executive summary is effectively a summary or mini business plan. It is a compiled list of the important factors in your business. Lenders and investors will probably make up their mind up whether to give you money based on this executive summary. It is mostly written in the end and in the same order as the business plan. An executive summary would generally include:

• Company description
• Market Analysis
• Organization description
• Product Line
• Marketing plan
• Marketing team
• Funding request and use
• Financial projections

In a modern summary you want to pay specific attention to the problem you solve, and your solution so far. Once you’ve written, make sure you get it verified, get expert advice and feedback before submitting or circulating it. 

Products and Services

Choose your forte. Decide what products are services you’re going to sell. Choose the one most suited to you and your area of expertise. Choose the products you are confident about, let them create a stir in the market, and then add more products to your menu. The popularity of your USP will help to up the sales of the new products that will be launched in the market. There are a number of different options under dairy farming:

• Butter and butter blends
• Cottage cheese
• Sour cream, dips and other cultured dairy products
• Frozen desserts
• Milk powder and why

You can choose a variety of products and you don’t need to choose only one. Research the market and processes for each before coming to a final decision. Know the demands and the trends of the market before stepping into it.

Make a smart investment plan in your dairy farming business plan. Before starting your business, your business is understanding the financial investment that you will require. This way you will not incur any last-minute costs as you will foresee the investments needed. Once you have a good idea of the amount you will require, you can approach investors and bankers for the money. Estimate your cash needs beforehand itself. You will need to estimate your costs for:

• Raw material consumption
• Electricity and Energy
• Salaries and Wages
• Animal Maintainance
• Distribution expenses

Describe your financial strategy and how it supports your projected growth. Include a break-even analysis that shows risk as a matter of fixed vs. variable costs. Include projected profit or loss, cash flow and balance sheets. Develop a cash flow statement so you understand what your needs are now and will be in the future.

Decide the selling cost of your products. Create a cash flow statement that includes your revenue projections for your business. Estimate your sales in detail for every year and the expected growth.

You can get funding for your business in multiple ways. You have the option to self-finance your own business or get money from investors or friends who are willing to loan you money. You can apply for dairy farm business loans and schemes for entrepreneurs or apply for a grant from organisations.

There is no scarcity of cattle in our country. Apart from the native breeds, even foreign cows and buffaloes are available . Carry out research about what species and breed of animal you would want to keep on your farm and also which breeds milk is widely popular in your area. The most common dairy animals are cows, goats, or water buffalos. Each one has a number of breeds, and you must choose which is best for you. 

Do not hesitate to seek guidance from the experts. You can contact agricultural and government institutions for information to help make the decision. You should also consider whether the climate and weather are suitable for the breed of your choice.

Healthy Cow is equal to healthy milk! It goes without saying that as a cattle breeder, you should give them the right food with the right nutrition. Cows and buffaloes need to be fed nutritious food. Whenever possible combine regular food with green foods, especially if you want to obtain uncontaminated milk. Unlike other animals, dairy herds require large amounts of fresh and clean water.

You will also have to take into consideration the breed of your cattle and know its nutritional needs. On average, every cow and buffalo will have to consume at least five litres of water, in order to produce a litre of milk. Taking all this into consideration, look at how you can manage to acquire the amount of food and water you will require. This will also depend on how many animals you decide to keep on your farm. Get in touch with local institutions that can help you through the process.

Maintenance

With all the cattle and the breeding, there is obviously going to be a lot of waste to manage. Before things go unhygienic and haywire, create a waste management plan as a part of the dairy farming business plan. You can use manure as a resource for your farm and other purposes. For disease-free cattle, keep yourself updated with the cattle vaccinations. So getting your cattle vaccinated from time to time should also be on priority so as to keep them healthy and fit.

Infrastructure

You must think of housing and infrastructure before you procure the animals. Elevated land prevents stagnation of water and waste on your dairy farm. Ensure that the foundation soils are not heavily dehydrated since they become prone to cracks during the summers when the weather is sunny and dry. Allow platforms, and gutters within the shed to soak direct sunlight. It should also have maximum protection from overly hot or cold winds. You will have to take all these into consideration and build a durable shed for your animals. It is important that your animals remain safe from hazards and wild animals. As far as personal space is concerned, each animal should be provided with an area measuring 40 sq ft internally (inside the shed) and 80 sq ft externally (outside the shed). 

Let your animals breathe! There should be sufficient ventilation, which is an inward flow of clean and fresh air and outward flow of breathed out air. Apart from the housing for your animals, you will also need separate rooms for other things. They are to be used for storing implements, storing milk, maintaining an office, etc. Ensure that your land has a bore well, which can fill up a large-sized water tank within an hour. In fact, the water tank should be able to store at least 2,000 litres of water. Plan out the Infrastructure you will require in the dairy farming business plan, including the outdoor and indoor areas. 

Develop a well-designed marketing plan. Describe your target market, including market demographics, market growth and trends. Include a table that shows a market forecast. If you’re starting with just a few animals, talk to nearby dairy farmers for advice on selling to local stores and individuals. If you have a slightly larger herd, you can get a more stable income by selling the milk to a company that will handle distribution. Make sure that there is a co-op, shop, school, or even a processor in the vicinity as they are likely to buy your milk. Describe the nature of your industry and the competition you have, by carrying out a SWOT analysis, which includes s trengths, w eaknesses, o pportunities and t hreats that you face. For a stable income, It is better to have tie-ups and contracts rather than having to sell milk every day.

It is important to create a business plan checklist while writing a dairy farming business plan. With a checklist, you can keep a check on the activities of your dairy farming business. All of the above elements are the essential factors which will contribute to the growth of your business. These are only the basics that must be included in the business plan, and you must figure out what is right for your business. Take advice but make a plan which aligns with your goal and suits you the best. A solid plan before you start your business will help you access risks and weaknesses and also help you succeed.  Along with creating a business plan, you must also acquire niche skills and knowledge on how to start a dairy farm and work on it to make your dairy farm a unique success story.

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Dairy Farming in India: Beginner’s Guide to Start a Dairy Farm

January 10, 2024

Dairy farming in India is an ‘all season’ business. Efficient management of a dairy farm is the key to success. In India cow farming and buffalo farming are the backbone of dairy industry. Here is the complete guide to start and manage a cattle farming business for dairy purpose.

Dairy form of cattle farming is a major, lucrative business primarily because a dairy farm is an ‘all season’ business. Irrespective of the season the demand for milk is either constant or increases. There has never been a decrease in the demand for milk and milk products in India.

Introduction on Dairy Farming in India

Dairy farming has been an age-old business in India passed down from generation to generation. During the late 20th century, this tradition saw a decline. However, thanks to the advancements made in science and technology, a huge progress has been made. The contribution made by Amul in the form of ‘White Revolution’ played a very important role in transforming the dairy industry in India from its stagnation level to a world leader.

Cows farms and buffalo farms are the foundation of the dairy industry. Breeds of buffaloes like Jaffarbadi, Mehsani and Murrah are the high breeding ones while Red Sindhi, Gir, Rathi and Sahiwal are the top milk breeders from India.

Pre-Requisites for Dairy Farming

Like any other farming, dairy farming also has a list of pre-requisites. Some of these are as below:

• Affection towards cows and buffaloes
• Basic cleanliness practices
• Knowledge about managing dairy farm scientifically
• Business tactics
• Ready to work hard day and night without a holiday

The above list is a basic list that can go endless. Commercial dairy farming is very different from the traditional farming as it has a lot of technological requirements and challenges.

Choosing Healthy Cattle for Dairy Farm

This is the first requirement for a successful cattle farming. The animals must be healthy, with good weight and build. While purchasing cattle the eyes, nose, udders, mobility, coat and other features must be carefully observed.

• Eyes: Eyes must be clear and bright with no discharge. They must not appear bloodshot or crusty as they are indicative of infections.
• Nose: A moist muzzle with constant licking is favorable.
• Breathing: The breathing of the cows must be normal and not laborious or irregular. Wheezing during breathing with or without discharge suggests infection.
• Coat: The coat must be clean and glossy with no signs of ticks and lice. In case of ticks, the coat would appear matted.
• Udder: Udders must be healthy with prominent milk veins sitting forward. They must not be sagging or meaty in appearance. In addition the udders must not show too much sideways movement when walking.
• Attitude: Animals are generally alert and curious with a self-contented, calm look. They move about in herd and are together. Animals that stand apart or seem disinterested in the happenings around are signs of unhealthiness.
• Age: The age of the animal must be checked by looking at the dentition although this is not exactly a sign of good health. You must find out the age of the cattle to setting up and manage a dairy farm efficiently.
• Mobility: Animals must rise easily from sitting position without any limps or difficulty. Sitting in hunched position, limping are signs of abnormalities or deformities.
• History: It is important to look at the history of the animal including details like previous calvings, milk yield, hypocalcemia, etc.

Shelters in Dairy Farm

Shelters for animals are an important factor for optimizing the yield. Stress and weather changes cause a decline in productivity. The housing facilities must be clean, spacious and must allow flow of natural air and sunlight.

House Construction in Dairy Farm

The cattle shed must have a floor space of 10 feet by 5.5 feet per animal with a 1.5% slope towards the drain. The floor must be made of rough concrete material. The sheds must be at least 10 feet high. They may be constructed using bricks, RCC or can be thatched. Only the western side of the shed must be walled while the other three sides must be left open. However, the open sides must be covered with gunny cloth during winter to protect the animals from cold. There should also be a provision for sprinkling water on the animals every half hour during summer. This reduces heat stress to a great extent. The eastern side of the shed is open outdoors for free roaming space. The roaming area is covered with trees providing shade. Neem and mango trees are the most preferred trees for shade in the roaming area.

Manger Arrangement

The mangers are located on the western side of the shed. They are built 1 foot above the floor level; they are 2 feet wide and 1.5 feet deep. Drinking water must be kept beside the manger. The mangers are generally constructed along with the shed construction. At some places, they may provide a separate box as mangers.

Heat Stress Management in Cattle Farming

Animals are extremely sensitive to heat and heat stress affects their milk production to a great extent. Following are the noticeable symptoms of heat stress:

• Panting fast
• Presence of foam or drool around the mouth
• Visible chest movement
• Excessive drooling with open mouth
• Extended neck

Several of the above symptoms occurring together are signs of heat stress. As said before the sheds must have adequate air circulation and sprinklers to spray water. Water evaporation from the body leads to cooling of the body. Thus the body temperature decreases and the animals are comfortable. Therefore, food energy is utilized for milk production and not in other bodily functions like blood pumping, breathing, panting, etc.

Animal Feeding in Dairy Farming

Food is one of the most basic aspects of living beings for they perish owing to lack of food. Cattle feeding cost a total of 70% of the milk production. Cattle are fed with fodder, grains, brans, green fodder, straw, oil cakes and other such cattle feed.

Fodder Provision

The feed for a normal adult animal is 15-20 Kg of green fodder and 6 Kg of dry fodder per day. The green fodder is harvested during the flowering stage and the surplus fodder is preserved for hay. Preserved fodder is used during summers when fresh green fodder is unavailable. It is necessary to strike a balance between the various nutrient requirements for optimal milk production. If the animals are given an exclusive dry fodder diet, then they must be given Urea Molasses Mineral Block as the supplement. They are also fed with bypass protein feed or compound cattle feed for an efficient production of milk and better body maintenance. In case the feed needs changing, the change must take place gradually. To increase digestibility and reduce wastage, fodder is chaffed and they are fed 3-4 times a day in equal intervals. This rationing is an attempt at reducing wastage and increasing digestibility.

Water Provision

Water is needed for digestion, nutrient distribution, excretion, maintenance of body temperature and of course, milk production. Every liter of milk produced needs an additional 2.5 liters of water since milk contains 85% of water. Hence, a normal healthy adult animal requires 75 to 80 liters of water per day usually. This can increase to 100 liters during summers. They must have regular access to clean drinking water. Crossbred buffaloes and cows are given a bath twice a day during summer to maintain their body temperature.

Pregnant Animals

Female calves must be given good care and proper nutrition to ensure healthy and rapid growth. Rapid growth helps them attain puberty early. They calve at 2 to 2.5 years of age if given timely insemination. Maximum care must be taken during last three months of pregnancy since the foetus develops rapidly at this time. The daily food requirement of a pregnant animal is as below:

The following points must be considered with utmost priority while taking care of pregnant animals:

• Provide enough space for standing and sitting comfortably.
• They must be given adequate amounts of ration to ensure timely milk production in adequate amounts and also to reduce the possibility of milk fever, ketosis, etc. at the time of calving.
• During pregnancy, special attention must be paid to water requirements; there should be round the clock supply of clean, drinking water.
• During the last trimester of pregnancy, the animals must not be taken far away for grazing and uneven paths for grazing must be avoided.
• Lactating animals must be dried within 15 days after the 7th gestation month.
• From the 6th or 7th month of pregnancy, the cow’s body, back and udders must be massaged- this is especially in case of first or second pregnancy (heifer cows).
• Heifer cows are tied along with the milking animals from the 6th or 7th month of pregnancy.
• The pregnant animals are tied separately in a clean and dry area with ample sunlight about 4-5 days before calving.
• Paddy straw is the bedding material for animals and they are spread on the ground.
• During the last 2 days before calving the animals are kept under observation.

Post Calving Care and Nutrition

During calving, animals undergo a lot of stress. Hence they would have a low appetite and tend to eat far lesser than what their body needs. Since the appetite is low the cows and buffaloes are given boiled rice, wheat bran, wheat mixed with edible oil, jaggery, boiled millet, rice gruel, ginger, black cumin, etc. The food must be light, warm, palpable and mildly laxative. This type of diet must be given for 2-3 days after calving and it helps in early expulsion of placenta. It advisable to give the animals fresh green fodder and water. While the ration food must be warm, the water must not be boiled or hot. It should be fresh water. Clean drinking water is very necessary for milking cows else they are likely to develop diseases.

Taking Care of the Newborn

The life of a calf is divided into 2 parts as the first 24 hours after birth and the rest of the period.

Part 1- First 24 Hours

The first 24 hours has a deep connection with its life later. If not given proper care, the calf may develop diseases, perish or be an underperformer. The first hour after birth is called as the ‘golden hour’ since this is a critical period. The following points must be taken care of during that period:

• Clean the mouth and nostrils to help it breathe
• Allow the mother to lick the calf clean as it stimulates circulation and helps the calf stand up and walk.
• Give the calf 2 litres of colostrum (first milk produced) within the first 2 hours of birth and then again 1-2 liters depending on weight of the calf within the next 10 hours.
• The calves must be de-wormed every month upto 6 months of age once the calf is about 2 weeks old.
• Vaccination must be done at the age of 3 months.
• Calves must be provided with starters for good growth and early maturity from the 2nd week of birth.

Importance of Colostrum

Colostrum is an important feed for newborn milk especially is contains high amounts of proteins and antibodies which help build immunity. It helps the calf ward off infections. Most calves do not nurse adequate amount of colostrum from their mothers therefore hand feeding is necessary. This ensures that the calf has the required amount of colostrum. However, feeding colostrum after the first 24 hours has passed would not help in warding off infections or building immunity.

Diseases in Cow Farming

After calving.

After calving there is a huge demand of nutrients, minerals and other essentials requirements in the body. Unless managed properly, animals very easily develop metabolic diseases that would affect milk production drastically. If not given timely treatment it might even lead to death. The following are some of the diseases that may develop during the period after calving:

Diseases due to Faulty Feeding

The digestive system of cattle is a complex one involving four different chambers, a host of microbes, etc. Hence any change in feeding pattern would lead to imbalance in the microbes and hence different diseases like bloating, laminitis and rumen acidosis. While home remedies can take care of bloating, laminitis and acidosis need a veterinary care.

This is major disease causing heavy loss in dairy farming. It can lead to lower milk production, permanent damage to udders and even death in severe cases. This disease is on the rise owing to more and more farmers opting for crossbreeding. Exotic breeds like Jersey are also highly susceptible to mastitis. A way to deal with the disease is to understand it properly and give timely treatment. Some of the practices followed maybe:

• Thorough cleaning of udders before milking
• Quick, hygienic and complete milking
• Teat dipping or spraying the teats after milking. This practice must be continued even after drying.
• Proper fly control
• Milk the cattle with chronic mastitis at the end.
• Do not let the animals sit for at least half hour after milking.

Vaccination in Cattle Farming

There are some highly fatal diseases like foot and mouth diseases, black quarter, hemorrhagic septicemia, rabies, infectious bovine rhinotracheitis, theileriosis and anthrax that are endemic in nature. These cause heavy losses to the dairy business. Fortunately they can be controlled by vaccination. The schedule for vaccination is as below:

Potential in Dairy Farming

Besides the raw milk there is a huge market of milk products like powdered milk, ghee, cheese etc. Even the waste in dairy farming is valuable and has good market demand. The ‘gobar’ or cow dung is the raw meterial of organic compost or vermicompost. If you’re using ‘desi cow’ or Indian cow breed in your cow farm then the cow urine is a valuable resource to make ‘panchagavya’ or natural insecticide in organic farming .

Looking after and maintaining good animal health is the gateway to successful dairy farming in India. Maintenance of animal health, looking after its breeding and nutrition supplemented with proper information system is beneficial. The government has created Information Network for Animal Productivity and Health (INAPH) for the benefit of farmers. It records the on-field cattle activities, schedules and nutrition. This channel in turn helps the farmer for regularization of his or her dairy farming business. Reference

• http://www.nddb.org/sites/default/files/pdfs/Handbook-of-Good-Dairy-Husbandry-Practices.pdf
• http://www.iisc.ernet.in/insa/ch22.pdf
• http://www.thecattlesite.com/diseaseinfo/194/acetonaemia-ketosis/

15 thoughts on “Dairy Farming in India: Beginner’s Guide to Start a Dairy Farm”

My name is Lavy and I wish to start a diary farm. On my land which is about 81 kms from Mumbai or 40 kms from Panvel

Dear Sir/Madam,

I have a land (10 Bigha) near Malanpur Industrial area. 28km from Gwalior (MP). I want a setup of Dairy farming & other related business from Agriculture.

Can you Guide me or help for setup of business ?

I can’t a big investment on this pls suggest me from small investment & profitable business.

Thanks & Regards

Gurmeet Singh

i m interested in cow n bufello dairy farming business but i m buginner for this business…could you help me with your number so i can contact you for detail…

requesting to send all details for new person those wants to start dairy farm with 20 cows initially.

Hi i wanted to start Cow forming start up with 10 cows

Nice explanation. what are best suitable breeds that can be preferred to yield more milk in Guntur area

Dery fharming tareing

I am interested cow farm and Buffalo farm. Please send all details

Hi ,this is Amol From Nagpur district, I am intrested in this well business but I am freshers I don’t have any knowledge about this business, if you are really helping to business for new comers ,I will be thankful and i can start a well by your project

I need loan diary farming

I want to start cow dairy farming in Haryana with 10 cows I want to know more information dairy management

I want to understand how farming business can setup in Varanasi. Please help me to understand the process and requirements.

i want project report for 60 cow with shed drawing and others for bank loan so please give details in your project report contains all thinks like shed, milking machine, space for calf, and milking animal and non milking animal, fodder storage space and other utilities which is required but i required in Guajarati, please

I have a land (02 Bigha) in Jharkhand on lease 45km from Jamshadpur (Jharkhand). I want a setup of Dairy farming & other related business from Agriculture. Can you Guide me or help for setup of business ? I can’t have a big investment on this pls suggest me from small investment & profitable business. Thanks & Regards Seema

Please check you mailbox and take further actions.

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How to Start Milk Dairy Business in India?

Let’s get some crucial information on the various steps involved in starting an enterprise in dairy farming. 

There are a few essential tasks to be completed before beginning an enterprise in dairy farming. They are:

• Consulting with experts/professionals and market leaders conducting thorough business research
• Focusing on the importance of a safe and healthy animal infrastructure
• Initiating feeding and waste management programs
• Obtaining licences from the authorities concerned with funding or taking business loans
• The finalising of a name for your company
• Registering your business as a corporation or as an MSME

To start a small dairy farming enterprise, entrepreneurs must select fewer cattle in the beginning. Later on, the number of cattle may be increased, as per demand. 

The milk business owner needs a registration certificate for their company when registering the company as a sole proprietorship partnership, limited liability partnership, public NGO, private limited, or other.

Also Read: Learn About Starting a Milk Distribution Business in India

Facilities Needed

The next step is for milk business owners to manage and own the various facilities needed to start the dairy farming industry. They are:

• A system of irrigation to feed the grass
• Storage room for manure and feed
• Milking store
• Sterile facility for the storage of milk and pasteurising purpose
• Barns or sheds 
• Other equipment and machinery

In addition, when business owners are learning how to start a dairy business in India , they have to get permits, licences and approvals from the relevant authorities. A licence is required to allow crossing animals between states under certain circumstances, such as vaccinations, sickness, etc.

The Requirements for Shelter and Space for Dairy Farming Animals

Animals everywhere need to be provided with shelter for their protection and ease of life. They perform better when the environmental conditions are ideal. The animals must be kept safe from low and high temperatures and strong sunlight, snowfall, frost, strong winds, heavy rain, high humidity, ectoparasites and endoparasites. 

The ideal temperature range for dairy breeds like buffaloes, cows and goats is between 15 to 27 degrees Celsius. Animals feel stressed when temperatures rise above 40 degrees C.

Build Equity

Dairy farming involves huge capital investment. Equipment, buildings, land and cows can be costly, and only a handful of new dairy farmers will be able to buy everything once they begin their milk business . Most beginner farmers begin by purchasing their first cows before renting their farm and land. The first animals you purchase are your farm’s equity.

Dairy Farming Can Be Described as a Biological System

The dairy farm’s success is contingent on the cow’s capacity to lead a happy and healthy life and produce milk. They also produce calves that can go on to become assets to the farm. 

Dairy farming demands detailed plans for the health of herds that reproduce, calf health, and the farm’s nutritional and financial aspects. Together with your veterinarian, genetics representatives and extension agents can assist you in establishing complete farm plans, leading to the establishment of a thriving farm.

One Size Doesn’t Fit All

Each dairy farm is unique and varies according to the producer’s needs and requirements for resources. Many different systems could prove to be profitable. Certain producers contract out the replacement to a custom-designed heifer raiser. Others diversify by selling crops and raising steers or by establishing at-home bottling facilities. The way you farm will depend on your needs, finances and skills.

Dairy Breeds from India

As part of the dairy farming setup, it is essential to be cautious in choosing the right dairy breed to meet the requirements. India is a major reservoir of genetic resources from the bubaline era. 

There are 10 varieties of buffaloes in India, with a population of around 97 million. They are:

• Jaffarabadi 
• Pandharpuri

The Management of Fodder at the Dairy Farm

The feed contents of the main feed:

• Trifolium Alexandrinum L
• Bajra or Pearl Millet Pennisetum Typhoides
• Jowar Sorghum Bicolor
• Teosinte Euchlaena Mexicana Schrad
• Cowpea Vigna Unguiculata
• Oats Avena Sativa

The Requirements in the Dairy Agriculture Milk Business Plans

Below are the elements that comprise Dairy Farming. You’ll need these to set up and run your own dairy company:

Breeds Selection and Vaccination

To produce the most milk possible, there must be a good selection of cow breeds. In addition, to prevent illnesses and ensure cows’ health and health, the person who cares for them should follow an exact vaccination schedule.

Farmers must maintain their cultivated areas or special areas to grow fodder crops to feed cattle. The area of land that needs to be cultivated will depend on the number of cattle. One acre of land should be enough to feed 7-10 cows.

There should be a covered area constructed in the farmland before taking cattle in.

Fodder and water

These two things must be plentiful as water is essential to the development of green fodder. Fodder aids in the proper nutrition of cattle.

Also Read: How To Get Dairy Farm Loan & What To Look Before Getting It?

Milking Practices at Dairy Farm

An individual should conduct the milkers’ training from the company that manufactures milking machines. The person should be knowledgeable about the science behind milking machines and the function, design and maintenance of the equipment used for milking. The idea of milking by machine is best adopted slowly, and by those people the cattle are familiar with and should be done under the guidance of an expert.

It should cover introduction procedures, including milking routine, machine maintenance and cleaning processing, along with certain aspects of day-to-day maintenance for the device. The installation of the milking machine and any other modifications to the dairy farm must be done before you start milking through machines.

It is best to begin with, heifers since they should become familiar with the machines far more easily than older cattle.

Choose calm animals for your dairy products business. Angry, unwell, or those animals with previous problems aren’t worth choosing.

Milk the older animals in the same way you normally do by hand but allow the vacuum pump to run during the milking. This will get the animals comfortable with the noise. The pump should be turned on before you start the actual milking process. Tie the cattle, or else the sudden sound may scare the animals. Repeat the process (usually between 2-4 times) until all the cattle have become familiar with the sound.

India is a place of opportunities for investors looking for new markets. Dairy food processing has huge potential for large returns. The dairy food industry in India has experienced a rise in recent times because of the increased demand for dairy products driven by an increase in milk production. 

The growth surge is principally due to growth in ice cream and milk powder as a part of the dairy food industry. The dairy farms of India, whether small or commercial scale, contribute significantly to the nation’s milk production as well as its economic development. The milk business can be established in any part of India.

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Top 10 Leading Dairy Startups In India in 2022

Roshni Tamta

India is a developing country where agricultural and dairy industries provide a living for the majority of the population. India produces more milk than any other country in the world. As of 2019, annual production was 187 million tonnes. Milk production accounted for over 4.2 percent of India's gross domestic product in 2020.

Many organisations are coming up with new strategies to take advantage of India's current dairy position and improve it even further by utilising new technological resources and providing training to the population in order to make them more skilled and technically advanced.

India is the world's leading producer of dairy products, but it still fails to meet food safety and security criteria for milk. This is due to the lack of expertise and resources available to those who operate in the dairy industry. As a result, many new businesses are springing up with the goal of developing a business plan that will manufacture dairy products that match industry standards and can be sold profitably.

Let's take a look at some of the leading dairy startups in India that are transforming the dairy industry in India.

1. Country Delight 2. Stellapps 3. Happy Milk 4. Klimom 5. The Milk India Company 6. Milk Mantra 7. Whyte Farms 8. Puresh Daily 9. Matratva Dairy 10. Milkbasket

1. Country Delight

The company was started by Chakradhar Ghade and Nitin Kaushal, in 2015. Country Delight delivers fresh, organic milk to the customers’ doorstep. The milk can be ordered through their mobile application and not just milk but different types of dairy products like curd, ghee, etc and different other staple foods can be ordered through the application.

2. Stellapps

Ranjith Mukundan, Praveen Nale, Ramkrishna Adukuri, and Venkatesh Seshayee established Stellapps in 2011. Stellapps is a firm that digitises dairy products from farm to consumer. The startup employs the Internet of Things (IoT), Big Data, and database management, among other technologies, to improve dairy distribution network features such as milk yield, milk purchasing, logistics system, animal insurance, and many other things.

3. Happy Milk

Mehal Kejriwal co-founded Happy Milk in December 2017. The company has its very own farm on the outskirts of Bangalore with roughly 400 cattle. Happy Milk caters to individual clients as well as businesses such as Nature's Basket and Foodhall. It also accepts large orders. Customers can also make a subscription which is available via apps such as DailyNinja, Doodhwala, and Amazon Prime Now.

Klimom is well-known for delivering fresh dairy products directly from the farm to clients' doors. All of the milk products are created from Gir cow's milk and are of the highest quality. The farms are located at Sangareddy, Hyderabad. The company claims to have bred Gir cows exclusively, and the fodder is grown on the farm as well. The cows are milked by hand, and the calves are fed completely before the cows are milked.

5. The Milk India Company

The company was founded by Shilpi Sinha in 2018. Milk India company aims to provide clean, fresh and nutritious cow milk to the client’s doorstep. The Milk India Company delivers unprocessed, unpasteurised milk to the customers daily. The company is certified by the National Dairy Research Institute of India. The Milk India Company delivers cow milk in glass bottles to customers' doorsteps every morning, making it environmentally sustainable .

6. Milk Mantra

Based in Odisha, the company was founded in 2009 by Srikumar Misra. Milk Mantra began operations in 2012 and has made significant progress in reducing the state's milk scarcity since then. Apart from milk, the company produces and sells a variety of dairy products such as ghee, curd, and cheese, as well as flavoured milkshakes under the Milky Moo and Mooshake brands.

7. Whyte Farms

Kanika Yadav and Sanjeev Yadav founded the company in 2015 with the goal of supplying healthy and clean cow's milk. The Delhi-based startup , Whyte Farms provides pasteurised milk in glass bottles to roughly 3,000 families. The business is based on a 30-acre farm in Tijara, around 90 kilometres from Delhi.

8. Puresh Daily

Puresh Daily was formed in 2019 by IIM graduate Manish Piyush and his childhood friend Aditya Kumar and is based in Jharkhand. The vision of this company is to provide chemical-free pure milk to the population. The company provides its services through its mobile application, where people can find the subscription plan that suits their needs. Due to milk’s health benefits and being a staple in the Indian diet, the company experienced a 100 percent growth during the COVID-19 lockdown .

9. Matratva Dairy

Based in Ajmer, Rajasthan, Matratva Dairy was founded in 2014, the company was founded by Ankita Kumawat, Lokesh Gupta, and Phool Chand Kumawat. The main products of the company are milk and ghee. All the dairy products are prepared by using traditional methods and minimum use of machinery or technology. Matratva Dairy will offer its products through e-commerce platforms like Amazon and BigBasket with rebranding under Goratan Products Pvt. Ltd.

10. Milkbasket

Milkbasket is a grocery delivery service that operates on a daily basis. It was founded by Ashish Goel, Yatish Talavdia, Anant Goel, and Anurag Jain in 2015. The name ‘Milkbasket’ comes from the fact that milk entices buyers to buy other items as well. The company brings milk and other necessities to the customer's doorstep.

Milk is a vital and necessary component of a healthy diet. It provides the body with all of the critical nutrients it requires. India has the greatest milk production and consumption rates. Many startups have formed to improve the country's dairy production by introducing innovative technologies and providing training to locals, thereby enhancing the business and creating an environmentally friendly industry without injuring the animals and obtaining the highest potential milk yield.

Which is the best dairy company in India?

Parag Milk Foods Ltd, Nandini, Dudhsagar Dairy, and Mother Dairy are some of the leading dairy companies in India.

Is dairy profitable in India?

Yes, the Dairy business is one of the most in-demand and profitable businesses in India.

Which state is the largest producer of milk in India?

Uttar Pradesh is India's most milk-producing state, accounting for roughly 18% of the country's total milk production.

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Dairy Farm Business Plan Template

Written by Dave Lavinsky

Dairy Farming Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their dairy farming businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a dairy farming business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Dairy Farm Business Plan?

A business plan provides a snapshot of your dairy farm as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Dairy Farm

If you’re looking to start a dairy farm, or grow your existing dairy farm, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your dairy farm in order to improve your chances of success. Your dairy farming business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Dairy Farming Businesses

With regards to funding, the main sources of funding for a dairy business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for dairy farming businesses.

    Finish Your Business Plan Today!

How to write a business plan for a dairy farming business.

If you want to start a dairy business or expand your current one, you need a business plan. Below we detail what should be included in each section of your dairy farming business plan:  

Executive Summary

Your executive summary provides an introduction to your dairy farming business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of dairy farm you are operating and the status. For example, are you a startup, do you have a dairy farm that you would like to grow, or are you operating dairy farming businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the dairy farm industry. Discuss the type of dairy farm you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of dairy farm you are operating.

For example, you might operate one of the following types of dairy farming businesses:

• Freestall dairy farm : this type of dairy farm provides plenty of ventilation for ultimate comfort for the cow as well as freestall barns which allow the cows more freedom to eat, drink, and rest wherever they like.
• Drylot dairy farm: this type of dairy farm is suitable for drier climates and cows are given access to shade and shelter on a large dry-dirt ot for relaxation. The cows have plenty of room for feed and water and free reign to eat and drink as they please.
• Pasture-based dairy farm: this type of dairy farm is a more traditional setup where cows receive an “all access pass” to green pastures to graze and rest when they are not being milked in the milking parlor. This type of dairy farm also provides cows feed and water in the barns and provide enough cover for inclement weather when needed.

In addition to explaining the type of dairy farm you will operate, the Company Analysis section of your dairy farming business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, reaching X amount of customers served, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the dairy farm industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the dairy farm industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your dairy farming business plan:

• How big is the dairy farm industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your dairy farm? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your dairy farming business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: grocery retailers, families, and individual buyers. 

As you can imagine, the customer segment(s) you choose will have a great impact on the type of dairy farm you operate. Clearly, families would respond to different marketing promotions than grocery retailers, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.  

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other local dairy farms. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes grocery stores, farmers markets, milk alternatives (vegan), etc.

With regards to direct competition, you want to describe the other dairy farming businesses with which you compete. Most likely, your direct competitors will be dairy farms located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What type of dairy farm are they?
• What areas do they serve?
• What types of customers do they serve?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide dairy farm products that your competitors don’t offer?
• Will your cows be raised in a better facility?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a dairy farming business, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of dairy farm that you documented in your Company Analysis. Then, detail the specific services you will be offering. For example, in addition to dairy farm products, will you provide a petting zoo, cheese making training, and any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your dairy farm. Document your location and mention how the location will impact your success. For example, is your dairy farm located in a rural setting, on the outskirts of a metropolitan area, the countryside, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your dairy farm marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Commercials
• Social media marketing
• Local radio advertising
• Word-of-mouth

Operations Plan

While the earlier sections of your dairy farming business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your dairy farm, including cleaning and maintaining the dairy farm and cows, milking the cows, bottling of milk, cheese production, marketing, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to obtain your XXth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your dairy farm to a new location.  

Management Team

To demonstrate your dairy farm’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing dairy farms. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a dairy farm or a large profitable farm.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you start with X number of cows or will you expand your cow inventory slowly ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your dairy farm, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a dairy farm:

• Cost of dairy farm construction and barn build-out
• Cost of dairy farm supplies, cows, and equipment
• Cost of marketing the dairy farm
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your list of products your dairy farm will offer, types of customers you will be targeting, and the areas your dairy farm will serve.  

Putting together a business plan for your dairy farming business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the dairy farm industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful dairy farm.  

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies that have gone on to achieve tremendous success.

Click here to see how a Growthink business plan writer can create your business plan for you.

Dairy Farming Business Plan FAQs

What is the easiest way to complete my dairy farming business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your dairy farming business plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of dairy farming business you are operating and the status; for example, are you a startup, do you have a dairy farming business that you would like to grow, or are you operating a chain of dairy farming businesses?

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Bullocks provide almost all of the draught power for farm activities and transportation. Dairy farming provides year-round work for many people because agriculture is mostly seasonal. As a result, dairy provides year-round work. Small and marginal farmers are the primary beneficiaries of dairy programs. Experts always recommend that farmers begin a small dairy operation. Establishing a small-scale enterprise benefits farmers with little or no prior expertise.

It can be a good way for them to supplement their income. Farmers can gradually expand their farms to large herds in the future. Many banks and financial institutions offer loans to farmers under various development programs to support them. Since the introduction of refrigeration technology in the late 1800s, including direct expansion refrigeration and the plate heat exchanger, milk preservation methods have improved.

Dairy farms could preserve milk by decreasing spoilage caused by bacterial growth and humidity using these cooling technologies. Many countries, including India, the United States, China, and New Zealand, have large dairy sectors that act as critical producers, exporters, and importers of milk. According to the FAO, total milk production has risen steadily since the late twentieth century, with 827,884,000 tonnes produced in 2017.

• Currently, the milk manufacturing sector is the most sought-after industry on the planet. In the market, milk and milk products are in high demand. This is the most significant advantage of starting a commercial dairy cow farming business.
• Milk and its products will never be in short supply because both vegetarians and non-vegetarians will consume it.
• You won’t have to bother about promoting the products because it’s a typical firm, which means you’ll be able to sell them quickly.
• It is an environmentally friendly company.
• Instead of employing workers, you can improve dairy output through technology.
• Proper planning, managing, and caring for your animals may make the most profit. As a result, you will have an excellent source of revenue.

The dairy sector is a dynamic industry that is always changing. New technology and legislation modify management techniques, allowing the industry to evolve toward greater economic and environmental sustainability. Intensive and extensive systems can be used to categorize management strategies. Extensive systems follow a philosophy of low input and low output, whereas intensive systems follow a philosophy of high input and high output.

In case you missed it: How to Start Sustainable Dairy Farming: Benefits and How to Reduce Your Carbon Footprint With Dairy Cattle

Different management of nutrition, housing, health, reproduction, and waste reflects these beliefs, as well as available technologies, local rules, and environmental conditions. Animals are divided into distinct management units on most modern dairy farms based on their age, nutritional demands, reproductive state, and milk production status. The milking herd, or the group of cows that are now lactating, is frequently maintained the most actively to ensure that their nutrition and surroundings are suitable to produce as much high-quality milk as possible.

On specific farms, the milking herd is separated into milking strings, which are groups of cows with varying nutritional requirements. Dry cows are members of the adult herd who are not being milked during their resting phase before giving birth to their next calf. Heifers are female animals that have not yet given birth to their first calf. They will eventually grow up to replace older animals in the milking herd and are consequently referred to as the replacement herd.

I ndia is home to the world’s greatest livestock population. It is home to 57.3 percent of the world’s buffalo population and 14.7% of the world’s cattle population. In 2011-12, milk production was valued at Rs. 3,05,484 crores. At the end of the Eleventh Plan (2011-12), the country’s total milk production was 127.9 million tonnes per year, with demand predicted to reach 180 million tonnes by 2020.

To meet this demand, milk output must grow at a rate of 5% per year rather than the current 2.5 percent. In 2011-12, the annual growth rate for milk production was at 5%. As a result, there is a huge opportunity/potential for profitable dairy farming to increase milk output.

Milk-Producing Cow Breeds in India

This cattle breed is native to the Gir forests of Gujarat’s South Kathiawar district but can also be found in Rajasthan and Maharashtra. Bhandari, Desan, Gujarati, Sorthi, Kathiawari, and Surati are some of the other names for it. Gir cattle’s horns are unusually curled, giving them a ‘half-moon’ look. It produces between 1200 and 1800 kilos of milk every lactation. This bread is known for its hardiness and resistance to disease.

Sahiwal is the Punjabi language that emerged in undivided India’s Montgomery region (now Pakistan). Lola, Lambi Bar, Teli, Montgomery, and Multani are all names for this cow breed. The Sahiwal is the country’s best indigenous dairy breed. Sahiwal milk yields between 1400 and 2500 kilos per lactation on average. Haryana, Punjab, Delhi, and Uttar Pradesh are just a few of the states where it may be found.

The red Sindhi is primarily prevalent in Pakistan’s Karachi and Hyderabad districts. Sindhi and Red Karachi are two other names for it. This cattle breed’s body color is primarily red, with tints ranging from dark to light red and white stripes. It produces milk in quantities ranging from 1100 to 2600 kilos. In crossbreeding programs, red Sindhi is frequently employed.

Another milch cattle breed is found in Rajasthan’s arid regions. This breed is thought to have arisen from a cross between the Sahiwal, Red Sindhi, Tharparkar, and Dhanni breeds, with a heavy Sahiwal influence. The cows are efficient and excellent milkers. The lactation milk yield ranges from 1062 to 2810 kilos, and they produce 1560 kilograms of milk.

In case you missed it: Sustainable Solutions of Cow Dung Manure: Production Process, Exploring the Benefits and Applications

This cattle breed is native to the Ongole taluk in Andhra Pradesh’s Guntur region. They are a huge, muscular cattle breed with a prominent hump. Ongole is well-suited to heavy-duty draught work. They’re also known as Nellore, and their average milk supply per lactation is 1000 kg.

Deoni is native to Western Andhra Pradesh, but it can also be found in Maharashtra’s Marathwada region and bordering Karnataka. Deoni’s milk output ranges from 636 to 1230 kg each lactation, with an average calving interval of 447 days. Bullocks are employed to help with hard farming.

Detailed project studies will be required for dairy schemes with high outlays. Capital asset purchases, such as dairy cows, shed construction, and equipment purchases, are examples of finance items. The cost of feeding for the first one or two months is capitalized and lent as a term loan.

Land development, fencing, well drilling, diesel engine/pump set commissioning, electrical connections, essential servants’ quarters, godowns, transport vehicles, milk processing facilities, and other costs may be eligible for a loan. Borrowers can use the services of NABARD Consultancy Services (NABCONS) for high-value projects, as they have extensive experience in preparing Detailed Project Reports.

• Proper location, and Effective use of Land
• Number of animals to consider
• Cowshed, storage rooms, and labor rooms
• Required equipment such as feed cutting machine (you can get a subsidy on this), digging pits for sailage, feed storage bags,s, etc.
• Transport van, milking machines, milking cans, etc.
• Division of shed for adult cows and calfs
• Selection of best cow breeds from a genuine source
• Management of lactation periods, milk yield per day, dry days, conception rate, the mortality rate
• Fodder management and nutrition management
• Taking care of veterinary requirements for any diseases and regular checkups and vaccinations
• Outlay : The cost of the project is determined by the local conditions, unit size, and project components. The outlay may be calculated using current market values.
• Margin cash : The margin varies depending on the borrower’s category and might range from 10% to 25%. Within the broad guidelines, banks are permitted to set their interest rates. However, we used a 12.50 percent-per-annum interest rate to calculate the financial viability and bankability of the model projects.
• Protection : The security would be by NABARD/RBI norms that are updated regularly.
• Repayment period of the loan : The scheme’s gross surplus determines the repayment period. The loan will be repaid in convenient monthly/quarterly installments over five to seven years.
• Insurance : The animals and capital assets may be insured annually or on a long-term master policy, where ever it is applicable.

In case you missed it: How to Make Cow Dung Manure Compost: A Step-by-Step Guide to Use in Your Farm/Garden

50 Cow Dairy Farming Project Report

In case you missed it: Country/Free Range Chicken Farming Project Report: Business Plan, Investment, Profit, and Loan in India

Investment Capital

In case you missed it: Beekeeping Business Plan: Bee Farming Cost, Profit, and Project Report in India

Disclaimer : The figures above are entirely fictitious and are just assumed (not verified) to produce excellent outcomes in practice. We are not responsible for any inaccuracies in this project, as well as any decisions or activities performed as a result of using this site.

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Opening Dairy Farm 100 Cattles 50 bufflows 50 cows

hi Sudershanji,

all the best wishes, just enquirying , have to started your project and how it goes, what are the major advice you can give . thanking you.

i m very interest in Dairy Farming but due to money and place(plot) I could not do. If any of you help and support me sir I promise will success and show my ability.

I interested diary project,I have 10 lakh, minimum requirements 40 lakhs .any central government schemes & subsidy policy details please,at present starting 20 cow then after one year added 15 cow and finally added 15 Cow, my land at present 4 bigha./80 Katha’s _80×720 sqft

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Dairy Farming: Features, Benefits, Project, Business Plan In India

• December 29, 2021 August 30, 2022

We all know there is high demand for dairy products in the market. Dairy products like chocolate, candy, cakes, milk bar, butter, paneer, sweets, and so on have a huge demand in the world market. Overall all humans, directly and indirectly, consume dairy products. Do you ever know that milk was the main food source in ancient times when people did cattle farming to get milk? 12000 years ago men domesticated cattle for the purpose of dairy production. However, over one billion people’s livelihoods depend on dairy farming and supporting other dairy sectors in the world.  

What is Dairy Farming?

Dairy farming is a long-term milk production agricultural practice and its main purpose for it is to sell milk. It is mainly commercial farming where farmers rear their cattle for producing milk and selling them in the market. Cows are the main animals for milk production. In commercial dairy farming farmers rear sheep, buffaloes, goats, donkeys, camels, etc. for an alternative source of milk production. We all know that Animal husbandry is the major sector of earning money for the rural area in India. Villagers depend on dairy agriculture for their livelihood. 

Indian government launched various dairy farming projects to provide benefits for farmers. Them, distributing dairy animals to the villagers is one of them. The government takes schemes that provide well training to the rural village people. In training centers, villagers can able to learn how to do cow farming , goat farming , sheep farming which is the main source of dairy production. 

• In this farming process high breed milch animals mainly cows and buffaloes are reared by well-trained farmers. 
• Dairy farming is high capital-intensive farming. 
• In this farming method, a large scale of land is needed. 
• In the beginning, farmers need high capital to do that farming. The process of animal sheds, mulching machines, feeding and storage facilities, etc. required a high amount. 
• Farmers need to give special health care, veterinary service, and cattle breeding. 
• Trained laborers involved in feeding, taking care of cattle, and milking process.
• Proper facilities are required for the transportation and refrigeration of milk.
• The demands for dairy products are high in industrial and urban areas. 
• The modern method increased the duration of dairy storage products. 

1. Health benefits:

Milk is the natural source of nine essential nutrients so it is called a nutrient powerhouse. We humans need to consume milk daily to get those good healthy nutrients. Various types of research show that people who are fond of drinking milk and consuming milk products have good health. Dairy foods are associated with bone health improvement. Milk is essential to kids and teens; adults can consume who have lower blood pressure and cardiovascular disease.

2. Product versatility:

The most important benefits of dairy are product versatility. Do you ever think about how many products are derived from milk? Here few names of products that are prepared from milk- cheese, paneer, candy, yogurt, sweets, ice cream, butter, ghee, etc. In soup and chocolate, it is also used; preparing biscuit milk is an essential ingredient, and in snacks we use it to add some flavor. 

3. Local Supply:

Milk is one of the fresh local products that supply locally. If you want to buy fresh milk then you can get it from your local milk seller. 

4. Huge Economic Impact:

Dairy agriculture is very important for our economy mainly for the local economy. It opens a new path for unemployed young people. There are immense dairy industries where they can get jobs with some training. In annual economic revenue, dairy industries contribute impactfully. 

5. Passion and Care:

Farmers’ families passionately care for their cattle animals. Though they do this farming for financial purposes they have cared for the domestic animals. 

6. Clean Label:

In the present situation, the big challenge of the dairy industry is the systematic decline of fluid milk sales. Like other beverages milk doesn’t contain chemical processes to make, it is natural. So we can tell the clean label of it is fresh chemical-free. 

7. Stronger Infrastructure:

Dairy industries create many job vacancies across the country. According to studies major percentages of those major jobs come from farm level and from dairy processing activities. 

8. Faith-Based Heritage:

Dairy production is totally faith-based heritage. Farm families have faith that a newborn calf one day will be productive, so they have meals together, and pray together. It is our farming culture that still exists in our society. 

Dairy Farming Project In India:

Behind the increase of dairy products, there are lots of positive impacts of Government schemes . The government always tries to help the farmers financially to the improvement of this farming method. Beneficiaries’ schemes that were launched by the government helped to develop dairy production and dairy business in rural places. Farmers or cattleman can develop their farming by taking banking loans, and government dairy farming project .   

Before starting a dairy cow farming project farmers need to farm training from locals. Besides a good business plan is also important to buy animals’ breeds and sell their milk. Good milking skill is very essential to make successful dairy production. 

Dairy Farming Loan In India:

Indian government launched NABARD dairy farming loan for dairy farmers. This project provides beneficiaries to the farmers. National Bank for Agriculture and Rural Development manages credit-related concerns. It is the best govt loan for dairy farming in India. People who will be eligible for this subsidy scheme are:

• Must be Indian farmers.
• Group of organised sectors.
• Companies, sectors, farms.
• Individual business person. 

Dairy Farming Business Plan:

The dairy farm is a major, lucrative business because dairy farm is an all-season business. The demand for milk is either constant or increasing regardless of the season. Demand for milk and dairy products has not declined in India. The dairy farming business plan needs these steps to follow:

1. Land Selection:

The first and most important thing for setting up a dairy farm is to select a suitable place for the farm. The considerations for selecting a suitable place for the farm are –

• The place should be dry, elevated, and flat so that rainwater does not accumulate and farm waste can be easily disposed of. 
• Adequate transportation is required for the marketing of dairy and dairy products and purchase of farm produce.
• Dairy farms must be away from settlements and crowded roads. There should be no wetlands around the farm.
• It should be no wetlands around the farm and must be an opportunity to grow the farm in the future
• There must be an abundant supply of pure, clean and gentle water at low cost and facilities for supply of electricity and gas.
• It is easy and cheap to get regular workers. There should be enough space for grass cultivation.

2. Housing:

Adequate housing is essential to protect farm cows from various types of natural disasters, wildlife, thieves, etc., and to provide better comfort and better management. The considerations when constructing a cow dwelling or house are that the cow house will be longer from east to west. Houses must face south. There should be adequate lighting and ventilation. The floor of the house will be paved and rough. This makes the cow less likely to slip and fall. The floor of the house should be sloping and a drainage system should be maintained so that dung, gram, etc. can be easily cleaned.

3. Selection of dairy cow:

Good quality seeds are required to get a good yield from the land. Similarly, in order to make a dairy farm profitable, cows should be selected which will give more milk. Some of the things to look for when selecting a cow are:

• Production records
• Physical appearance

4. Feeding:

A balanced diet is required to protect the body of dairy cows, milk production, and proper growth of fry during pregnancy. The cost of food on livestock farms is about 60% of the recurring cost. Reducing food costs as well as increasing production is a kind of adventurous responsibility. In order to fulfill this responsibility, it is necessary to acquire complete knowledge about the nutritional value of the food items obtained at low cost, the composition of the food, and the method of feeding the food. Depending on the daily milk production of the cow, it is important to have 50 to 60% fiber in the feed.

Since the level of dry straw is less, it is better to process the straw and feed it to the cows. Many of our native green grasses do not have this level of nutrition. However, the obtained green grass should be fed to the cows and the surplus grass should be stored so that it is possible to reduce the cost of food by using it in times of scarcity.

5. Marketing:

The main product of the farm is milk. Milk is a perishable product. So the first thing to consider when setting up a farm is whether milk can be sold regularly at the desired price or not. In addition, other by-products produced on the farm must be sold at the right price in a timely manner. So, it is not possible to make a farm profitable without proper marketing.

Dairy farm:

The role of dairy farms in increasing milk production, creating self-employment, and alleviating poverty in our country is undeniable. Every step from the beginning to the end of setting up a dairy farm is woven in the same thread. Just as you have to think about different things before setting up a farm, you have to pay close attention to different management of the farm after setting up a farm. Milk is the main product of dairy farming. Therefore, it is necessary to have knowledge about the milk marketing system. 

Conclusion :

The purpose of setting up a farm is to make a profit from it. So it is important to know about the income and expenditure of dairy farms. Many set up farms with loans from banks. Knowledge of how to repay this loan is also required.

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Dairy Processing Plant Project Report, Setup Cost, Profit

Table of contents, dairy processing plant project – milk procurement:, dairy processing plant project – milk processing:, dairy processing plant project – manufacturing of dairy products:, dairy processing plant project – dairy plant design and planning:, dairy processing plant project – dairy processing plant layout:, dairy processing plant project – bank loans and subsidies:, dairy processing plant project  – bank security:, dairy processing plant project – cost and profits in dairy processing plant  / economics of dairy processing plant, dairy processing plant project report – marketing of milk and dairy products, read: dairy farming faq., read: small scale dairy farming., introduction to dairy processing plant project:.

The following information is about  Dairy Processing Plant Project Set up Cost and Profit .

Dairy processing around the world is growing rapidly to meet milk and dairy products for an ever-growing population. Dairy processing is an industry that involves harvesting or processing milk from milk-producing animals for human consumption. The structure of the dairy processing industry varies from country to country. Milk is sold directly to the public in developing countries, while in developing and major milk producing countries, most of the milk is sold on a wholesale basis.  Milk is an easily digestible and highly nutritive human food that is consumed on a daily basis either directly or in any other dairy product forms. Dairy products contain different kinds of vitamins, proteins, minerals, fat, and sugar contents in liberal quantity. India stands third after America and Russia in the world milk production. Being one of the top milk producers, the distributions of milk across the population spread out in the nation are inadequate as there are limited milk Processing Plants. The distribution and supplying of processed milk are inadequate to reach children, expectant and nursing mothers across the nation. This can only be achieved by stepping up milk production and setting up dairy Processing Plants. To market milk and various dairy products; a scientific planning and layout must be set up for milk collection and processing at dairy Processing Plants. The general tendencies in the marketing of dairy products such as yogurt, soft cheeses, and creams that have short lifespan are located in urban regions and dairy products such as butter, cheese, and milk powders that have a longer shelf life are located in rural regions.

15% of total milk production across the nation is distributed under cooperatives and private dairy Processing Plants. These statistics exhibit a wide scope for young entrepreneurs to invest in the processing of milk and manufacture of dairy products for both domestic and export. Milk drawn from the cattle remains almost sterile with the milk temperature of about 37° C equal to the body temperature of the milch animal. The fresh milk will have a shelf life of about 2 to 3 hours and starts to sour. Milk is a perishable commodity gets easily contaminated from air, utensils, and other reasons; the milk should be sent to the dairy Processing Plant or milk collection centers at the earliest.

In almost all countries, most of the milk is produced in rural regions which are transported to the milk processing plant. In India, milk is collected both in the morning and evening and has to be transported twice in a day. Procurement of milk is carried out in various ways depending on the location and availability of collection centers or dairy Processing Plants. Milk is collected at the dairy Processing Plant by the following methods:

• Individuals: Those that are located near to the milk collection centers; the milk is brought by individual producers directly. The individuals carry the milk on their own transport and vessels to the Dairy plant.
• Contractor: Some contractors collect milk from individual milk producers. The contractor supplies milk to the dairy plant. In this process, the contractor has to collect and transport the milk, thereby the contractor buys milk at a cheaper rate from the individual milk produced and keeps his share of profit.
• Cooperative Organizations: To avoid the middlemen and contractors; some individual milk producers formed as a cooperative organization. Milk is collected at the cooperative organization brought by individual milk producers, the cooperative societies or organization is responsible to supply milk to the dairy plant. This method is beneficial to individual producers as they don’t need to share profits with contractors or middlemen.
• Milk Collection cum Chilling Centers: This method is currently more prevalent in Indian dairy operations in organized sections. The milk that arrives at the collection centers brought by individuals from the nearby rural regions is weighed and tested for fat content. The milk is stored in 40l cans and sent to the milk chilling center or dairy Processing Plant.

Milk is a nutritious food having a short shelf-life as it is a highly perishable commodity and an excellent medium for bacterial pathogens and micro-organisms growth. The shelf-life of milk can be extended for several days or weeks through milk processing that helps in reducing the number of pathogenic microorganisms. Following are the milk processing steps:

• Skimming: The raw milk during pasteurization undergoes milk skimming through common centrifugal separator application; the milk is passed through a clarifier or a separator which spins the milk through a series of conically shaped disks. The purpose of this process is to separate the debris, skim milk, and cream. Clarifier removes debris and any sediment present in the raw milk. The separator separates the heavier milk fat from the lighter milk at a temperature between 45° to 55° C to produce cream and skim milk.
• Fortifying: The skimmed milk may be added with Vitamins A and D at this stage. A peristaltic pump helps in dispensing the required amount of vitamin concentrate into the milk.
• Pasteurizing: This is an important process stage in milk processing. Heating every particle of the milk for a specified time duration at a specific temperature is termed as pasteurization. Usually it can be carried in two ways; first, the temperature can be 72°C for 15 to 17 sec time period or 63°C for 30 minutes. Pasteurization process helps in destroying bacteria and other microorganisms that may affect the milk shelf-life and also may affect consumer’s health.
• Homogenizing: In this process, the size of the remaining milk fat particles is reduced evenly. Homogenizing helps to prevent the milk fat from separating and floating to the surface. After going through pasteurization, the hot milk is pressurized to 2,500 to 3,000 psi by a multiple-cylinder piston pump and then compelled to pass through tiny sections in an adjustable valve. When the fat particles break down evenly into the proper size, to avoid harming its taste, the milk is quickly cooled to 4°C.
• Packaging: The final stage in the dairy Processing Plant is packing. The milk is packed in 500ml and 1000ml sealed packets. The packets are stamped with the date of packing. The milk packets are placed in transport containers and refrigerated. Transporting of milk packets to various retail outlets and distribution centers is carried out in refrigerated vehicles and are kept in refrigerated display cases.

Butter Production: Raw milk after undergoing the process of filtration/clarification, skimming, and pasteurization are now ready to start the butter production process. Milk that is homogenized is not good for butter production, avoid the homogenization process. After skimming, the heavier milk fat that is separated is from raw milk is heat treated and cooled. This helps good whipping and churning. At the time of churning, culture inoculation can be processed for the ripening of the milk. This helps increase the content of diacetyl, which is the compound responsible for the flavor of butter. Butter made without culture is called sweet cream butter, butter that is flavor enhanced using culture is termed cultured butter or lactic.  Both sweet cream and cultured butter have less storage life. To add flavor and storage life, salt is added at the recommended dosage. Butter which is ready can be stored in bulk quantities to be repacked into regular market quantity or according to market demand.

Cheese Production: Milk is heated while being stirred in the large cheese tank until it reaches the desired temperature. Add lactic acid bacteria along with rennet an enzyme to the milk. Stop stirring at this point, allowing the milk to settle down in a large vat. 30 to 45 minutes of resting leads to curdle of milk. The jellylike curdled milk is stirred in breaking it into smaller pieces. This allows separation of curd and water content. The smaller the pieces the harder the cheese will be. The curd is stirred while being heated up to 57° C.  The cheese is collected in cheesecloth and pressed hard to remove whey or water content. The soft cheese collected is put into a saline bath for 30 minutes to 2 days depending on the cheese size. This processes any leftover moisture content and allows absorption of salt to make the cheese stable. The last process is ripening and fermentation, this makes the cheese dough formation of holes and the aroma.

Milk Powder Production: Milk that is not pasteurized is used for making milk powder. It can be of skim milk powder, fat filled milk powder or whole milk powder. Depending on the characteristics desired for the final powder product and the stability of the protein content in the milk, the milk is preheated in tubular heat chambers at a preheating or desired temperature. The heated milk, then passes through the evaporation chamber that increases the concentration of milk solids up to 50 percent. The concentrated milk is then fed into the drying chamber, spraying the concentrated milk over the hot air stream will allow the remaining water content to evaporate instantly, leaving tiny particles of powdered milk solids to fall at the bottom of the chamber. The milk powder is collected and packed at desirable quantity for market distribution.

Dairy Plant design and planning, young entrepreneurs should focus on this important section when starting their dairy Processing Plant project. As this include, the estimation of milk capacity, process scheduling, and appropriate plant layout in order to accomplish the target of taking care of raw milk and its byproducts at low cost and its well being. In any case, the dairy business and the plant design need to have proper planning to meet certain unique requirements and should be focused on them such as:

• Milk by nature is a perishable agriculture commodity with a few hours of shelf life. Raw milk has to chill and processed at the earliest before manufacturing the dairy products. Thus, TIME is the most essential factor and aspect to be considered for dairy plant design and planning.
• Milk provides nutritious and easily digestible, thus becoming an important commodity in every household of the general public. It is consumed by children, youngsters, elderly, pregnant and lactating women making the dairy industry an important part in the society.
• The dairy processing business needs to manage raw milk fluctuations in procurement. In the Flush season that is at the time of calving and abundant green fodder availability, milk is generated to the maximum. In dry seasons such as summer and end of calving season, milk generation will be at the lowest. Fluctuation of raw milk procurement depending on the season has to be considered at the time of dairy Processing Plant design and planning.
• Dairy processing plant hygiene and staff safety measures have to be considered.
• Water used in the dairy processing industry contains COD and BOD high values, proper effluent disposal of the dairy Processing Plant is essential.
• The dairy Processing Plant has to meet the Industrial Act, Pollution Control Act, Boiler Act, Labor Act, and additionally, has to meet HACCP and FSSAI guidelines.

Dairy processing plant efficiency and production depend on the dairy processing layout. Dairy plant layout is the most important part to start a dairy processing business. Proper planning with a proper layout not only increases efficiency and production, but also the quality of the products. Negligence in terms of improper dairy processing layout would put many lives at risk. A good dairy processing layout is of great importance to the quality production process. The layout emphasizes placing machinery at sufficient distance for staff easy movement while operating, cleaning, and monitoring the dairy Processing Plant.  The common sections of a dairy Processing Plant layout include:

Reception: The first stage in the dairy processing layout is collecting milk from milk tankers and trucks. The milk is offloaded at the specially designed milk offloading section. The milk is pumped into the milk silos with flow meters checking the milk quantity.

Processing Rooms: Manufacturing of milk and dairy products such as cheese, butter and others is carried out in separate rooms. Manufacturing, packaging and storage rooms are included in the dairy processing layout. Cold rooms help to store the perishable products before dispatching to the market.

Laboratory: Labs help in quality assurance with timely analysis. They are placed with easy access to raw materials and product sampling for timely analysis.  Labs placement should be located near to the manager’s office for easy supervision.

Administration Office: Placing of concerned departmental office rooms at the plant entrance aids the quick administration process. It will be accessible to vendors, visitors, and staff to facilitate the plant administration activities.

Utility Room: A good layout design will provide boiler, refrigeration system, compressed air and vacuum systems, power generators, and other are housed properly with sufficient space. For safety issues, the utilities are housed in different buildings.

Waste Handling Facility: The dairy processing layout will help in the proper handling of toxic waste and other bio waste produced in the dairy processing plant. Proper handling mechanisms will help protect contamination and environmental degradation.

Entrepreneurs can approach any financing PSU or Private bank for finance. New entrepreneurs should go through guidelines to claim incentives promoted by various State Governments for the promotion of Dairy product industry. There are various incentives depending upon the location of the dairy unit.  Depending on states Agro Industry Policy, newcomers can take maximum advantage of these subsidies. To avail various subsidy schemes of government, it is recommended to take a bank loan. Along these lines, the entrepreneurs who are envious of benefiting subsidy should hold fast to the methods of finance, i.e. the quantum of bank loan and marginprescribed under the subsidy plan. The government of India has implemented the National Mission on Food Processing (NMFP) to be implemented through State / UT Governments during the 12th Five Year Plan (2012-17). Food Processing Industries can avail subsidy under this scheme. To implement this scheme in different states, GOI appointed State Nodal Agencies. For more information on schemes and state nodal offices, one can go through, Ministry of Food Processing Industries website.

The Loan issuing bank will take adequate security as per RBI guidelines. Entrepreneurs should plan projects accordingly to the fixed assets as security against bank loan. Banks will look into three aspects before issuing of loans, and they are primary security, collateral security, and hypothecation.

The primary security includes the land and building that are mortgaged to financing banks. Fixed assets such as the plant, machinery equipment, and other miscellaneous fixed assets shall have to be hypothecated to the bank.

The company or entrepreneur property or assets will be mortgaged when the value of the primary security will not be enough to cover the bank loan. The value of the primary assets along with the promoter’s immovable assets will be taken as collateral security by banks for extending loans.

Financing banks will take all stocks, inventories, and debtors as security against the loan and will hypothecate these assets.

Based on the type of milk procured and products proposed; different plant and machinery are required for dairy processing. All the plant and machinery are according to BIS specifications. A dairy Processing Plant for 10,000 liters capacity and section-wise machinery required with specifications are given below:

Reception Section of Dairy Processing Plant Project Report:

Process Section of Dairy Processing Plant Project:

Storage and Packaging of Dairy Processing Plant Project:

Utilities of Dairy Processing Plant Project:

  Refrigeration Section of Dairy Processing Plant Project:

Electricals of Dairy Processing Plant Project:

Staff for Dairy Processing Plant Project:

Capital Cost of Dairy Processing Plant Project:

Income on Dairy Processing Plant Project:

The above cost figures in this project report are not actuals but are indicative to give an understanding to young entrepreneurs on investment and returns in the dairy processing business project. Dairy entrepreneurs should get quotations & estimations from vendors for specific designs of plant machinery equipment and their installations. It is recommended for entrepreneurs to enter into contract for maintenance and service after purchase.

The dairy unit should have a marketing department that will promote milk and dairy products by placing hoardings or billboards at strategic locations in the cities and retail centers. A detailed market survey of cities and retail outlets will help with distribution and advertising plans. The major competitors and their present offers are to be found out. Building or promoting dairy brand milk parlors and distribution retail outlets in major densely populated regions in the cities with door delivery of milk to consumers will be able to achieve higher growth in sales.

Dairy Processing Plant Project Report  – Statutory / Government Approvals

The dairy Processing Plant must possess the following requirements licenses and permits from statutory agencies:

• License from the State Food and Drug Department.
• MMPO registration from the concerned state government.
• Plan approval from Gram Panchayat or Municipality.
• Registration – PF, ESI, and Labor laws.
• NOC from Fire and Safety Department.
• Clearance Certificate from Pollution Control Board
• Registration with Small Industries or District Industries Department.
• License from Factory Inspector for Boiler Installation.
• Local authority clearance for shops and establishment.

20 COMMENTS

Excellent useful information available on the site. One can down load and readjust the same as per own use

Very useful information for a start up. It provides most of the basic information that can be modified to suit any jurisdictional requirement.

The information is useful for a start up business in dairy milk processing plant. The work is commendable

Dear sir i am willing to start a Milk processing plant and automated milk collection system in uttar pradesh ( Ghazipur) Destrict please help me for providing a DPR on 10000/ltr/day plant

Very nice piece of information. Really a important guide for the new entrepreneurs to chalk out their business plan for successful implementation.

Thank you for detailed reports on multiple agro based industries. A good initiative, very helpful for new investors and project planners.

I would like to get in touch with you regarding a diary plant project in South, with an installed capacity of upto 1,00,000 liters per day processing. Please reach me at your convenience.

I got Excellent information to read this is helpful for my dairy business planning. I need the information for Machinery and Equipment suppliers & contacts

reg organic integrated agro project

Thank you for the excellent information. I would like to start this business.

Valuable information, highly cherished.

thank you for the great information.I would like this type of Business,

very informative

I am looking for a quotation for constructing a dairy processing plant. Please reach me on my email Id

We have plan to start dairy processing unit 3 Kl/hr . kindly to arrange DPR

GOOD PIECE OF INFORMATION. IF POSSIBLE, PLEASE GIVE US SOME KNOWLEDGE ON DISTRIBUTION CHANNELS AND MARKETING STRATEGIES USED BY THE KEY PLAYERS IN THE MARKET.

Very useful information for a start up company.

Absolutely productive information s through which,l will be able to approach for a milk plant as per my plan.

Sir, We have milk cooperative at Ghaghra, Gumla, Jharkhand. We would like to start milk chilling and processing unit. It is government sponsored. We need DPR, machines and entire set up. Let us know, if there are possibilities

Excellent information .I want to start 100000 litres milk processing plant per day with its byproducts..I need DPR and to know profitability details…

Very insightful business plan. We want a plan for 2000lts/ day milk collection center which we can develop into a processing plant. The infrastructure is already there so it the machinery and equipment. We would also appreciate if we can incorporate biscuit making machines with packing as an added enterprise.

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Starting Dairy Farming Business Plan (PDF)

Starting a dairy farming business is a rewarding and sustainable venture for entrepreneurs looking to make a significant impact in the agricultural sector. As the demand for dairy products continues to grow globally, the opportunity to enter this market is ripe with potential. Dairy farming not only promises a steady supply of products that are always in demand, such as milk, but it also offers the satisfaction of contributing to food security and the agricultural economy.

Milk and its products are cardinal parts of many people’s diets. This is what makes dairy farming such a lucrative livestock farming business idea. Dairy farming is a scalable business with projectable financial outlooks. It is a somewhat technical venture which requires specialized knowledge and skills. That is not a big problem though because you can always acquire the relevant knowledge and skills.  Dairy farming involves breeding cows, milking them, and selling the milk. To build a profitable, sustainable milk dairy farming business, you require sufficient knowledge of how to efficiently keep the milk cows, good business management skills, and a good dairy farming business plan. This article will outline how to start the dairy farming project, and the dairy farming business plan – PDF, Word and Excel.

Dairy farming is a lucrative business, providing income for many farmers, but there are some essential things you need to do before you venture into the dairy milk production business. You have to decide on the size of your dairy farming project (how many dairy cattle will you keep?); location of the milk dairy farming business, and your target market. These choices will be affected by the amount of capital you have, and the size of your target market. If you do not have a lot of capital, you can always start small and grow your milk dairy farming project overtime. You also need to carry out market research (Who are you going to sell the milk to? At what price?) and write a dairy farming business plan before you start the dairy farm project.

Market Research

Before venturing into dairy farming, conducting thorough market research is crucial. This process involves understanding the demand for dairy products in your target market, analyzing the competition, and identifying potential customers. The supply chain is a critical aspect of your market research when starting a dairy farming business. It involves mapping out the entire journey of your dairy products, from farm to consumer, as well as the sourcing of feed and equipment. Identify the key players in the supply chain, such as wholesalers, distributors, retailers, and transportation providers, and understand their roles and requirements. Additionally, assess the sources from which you’ll acquire feed for your cattle and equipment for your farm operations. Analyze the logistics and infrastructure needed to ensure a smooth flow of dairy products, feed, and equipment from their respective sources to your farm and, ultimately, to the end consumers. A well-optimized supply chain is vital for ensuring product freshness, minimizing wastage, and meeting delivery timelines, all of which are essential for the success of your dairy business. Also calculate the initial investment required to start your dairy farm, including the cost of land, livestock, infrastructure, and operational expenses. Develop a detailed financial plan, projecting income and expenses over the next few years. This will help you determine if your business is financially viable.

Part of your essential market research is understanding the pricing dynamics of milk in your target market. You need to ascertain the current price range for milk products and analyze any variations based on factors like quality, packaging, and distribution channels. Furthermore, it’s crucial to identify your potential customers, their preferences, and purchasing habits. Determine how frequently they order dairy products and in what quantities. This information will not only help you set competitive pricing for your dairy products but also tailor your production and marketing strategies to meet the specific demands of your customer base, ensuring a successful entry and sustained growth in the dairy farming business.

Land for Dairy Cattle Farming Business

A substantial portion of land is need for dairy farming. This is because there are several things that must be accommodated. On average, between 1.5 and 2 acres must be available per cow and calf grazing. You also need a number of dairy farm structures for different purposes. For instance, you need dedicated areas for watering, waste management, equipment storage, milking processes, milk storage, feed storage, and maternity, amongst others. These can be self-contained in separate stalls, barns, or rooms, actual buildings. If there are dairy farm workers and they have to stay onsite, living quarters for them would be needed. Put all that together and factor in the number of cows to have a good idea of the total land size you would need for your dairy farm business.

Another consideration is the general climate of a chosen area. An ideal place would be where the climate promotes the growth of rich pastures. The land should have good water drainage. The soils should have good drainage as well. Those elements are critically important for infrastructural development on the dairy farm. The cattle dairy farm location should not be too close to public spaces e.g. residential areas. It is also important to ascertain that the land in question can be used for dairy farming business. Generally, there are procedures and regulations to be adhered to. Checking with the relevant local authorities is a must. Consider availability of quality and consistent water supply, the size of the land, quality of grass and grazing pasture and the soil type is it affects pasture quality.  Other factors include availability of already made infrastructure like good road network, milk facilities, dependable electricity, pens, sheds, buildings. Constructing buildings for a dairy farm is expensive, so it would be an advantage if some buildings are already there. 

Housing For Dairy Farm Business

To be successful in the dairy farming business, it’s important that you provide good and adequate housing for the dairy cows. Housing for dairy cows is required for several reasons: protecting the dairy cattle from adverse weather conditions, confining the milk cows when they are not grazing, and to allow easier management and control of the dairy milk herd. The best dairy design depends on the local climatic conditions, budgetary constraints and availability of bedding materials. When designing housing for the dairy milk herd, take into consideration the need to provide adequate space, feed & water facilities, milking facilities, waste management and livestock handling features.  There are many different structures which can be used for a dairy milk farm, and these include free-stall, tunnels, composite barns, dry lots, tie-stall facilities and dairy sheds. Other dairy milk cow structures include milking parlour, sick/isolation pens, calving boxes, crowding pens, sorting corrals, working chutes & gates, and squeeze gates. However the necessity of the structures depends on the size of the dairy farming business. 

The housing needs for dairy farming business are informed by the different production stages. The dairy milking herd needs to be housed in its own area. They can be housed in stalls or barns which come in different designs. For instance, if you have a small dairy herd you can set up tie stalls. Typically many dairy farmers start off with what are called bedded-pack barns. These are basically enclosed sheds where there is no flooring but just the basic earth. It is usually from this that many, over time, transition or upgrade to more sophisticated dairy farm housing. When it comes to dairy cattle heifers, the hoop barns are the most common housing. Age-wise we are looking at cows between 6 months and heifers. Dairy hoop barns have different designs. One type of hoop barns has a dome-shaped roof. Another type is like a shed, one-sided with a single slope roof. There can be variations to the dairy housing depending on the size of the heifers. More tweaks become necessary as the heifers grow in size. Dairy calves can be housed in hutches. The hutches can be placed outdoors, which is typical. However, adverse weather conditions can make it necessary to place them indoors. The best indoor environment can be barns. From weaning till they are around 6 months old, you can use simple sheds. Just as long as you can provide the pasture they need. Alternatively, you can use hoop sheds. To control and streamline their feeding you can install headlocks. This will ensure they feed orderly without tussling with each other. The dairy farm also requires good fencing, so as to contain the milk cows and manage their grazing. Dairy farm fencing can be by barbed wire, high tensile smooth wire or electric fencing. The dairy milk farm business plan should include the costs of constructing the housing.

Dairy Farm Equipment

There is a wide range of equipment needed in dairy farming business. What you will need depends on your scale or production i.e. number of dairy cows. The other factor is the level of sophistication of your dairy farming operation. At the most basic you need protective clothing such as overalls, boots, gloves, and the like. For day to operations you need equipment such as tractors, trailers, ropes, chains, and loaders. You also need feeders and drinkers – these can be items or in the form of mechanized or digitized systems.

Tags or a tagging system is needed for the dairy cows. Specialized cutters or grinders for hay (or straw) come in handy. You can also have specialized cutters or grinders for green fodder. Ventilation equipment is of importance and so is waste management equipment e.g. manure pits. Milking equipment is obviously required. You will need milk cans or tanks; depends on your capacity. Milking machines, pasteurizers, and homogenizers also come in. The cost of buying the equipment should be included in the dairy cattle farming business plan. 

Breeding Stock for Dairy Farming Business

To start a dairy milk production business, you require the dairy breeding stock: bulls (male cattle) and milking cows (female cattle). A dairy farm can also be operated without bulls, by using artificial insemination for breeding the milking cows. The cows should breed every year, as milk production only happens after the cows have given birth to calves. The decision of which dairy breed to use is important, and affects the success of your milk production business.

The breeds you choose will affect the milk production potential of your dairy farming business. Some breeds are better than others at producing good milk quality. The quantity of milk produced also varies depending on the breed of the milk cow. Other characteristics which vary among breeds include breeding age, productive lifespan, adaptation to different environmental conditions & climates, calving ease, feed conversion, diseases resistance, and average birth weight. When choosing breeding stock it is usually wise to look for purebreds. Purebreds normally have detailed information available on their breeding and ancestry history. Some of the most common breeds used in the dairy farming business are Holstein, Red and White, Jersey, Brown Swiss, Guernsey, Ayrshire, Milking Shorthorn. Other noteworthy breeds are Kerry, Dutch Belted, Dexter, and Milking Devon. The dairy farm business plan should include the costs of acquiring the dairy cattle breeding stock.

Feed And Nutrition

Feeds for dairy cattle come in two broad forms namely concentrates and forages. There are also dairy supplementary feeding options that can be considered. Concentrates (usually grain-based) are important because of their high energy and protein content. Forages are essential for the dairy cows as they are good sources of fiber and are typically legume or grass-based. Supplementary feeding of dairy cattle fills gaps that can be there nutrition-wise. For example, molasses is calcium-rich, amongst other essential nutrients. There are 3 common feeding approaches that are used. These are feeding using total mixed ratios, component feeding, and using pastures. Total mixed ratios entail proportionately mixed all-in-one meals. Component feeding as the name suggests involves feeding component by component e.g. forages, concentrates, and so on. Using pastures is by the commonly known paddocking system.

The success of your dairy milk production business is affected by the feeding system that you use. The feeding program of the dairy farming business should ensure that adequate nutrition is provided to both the cows and calves at all growth stages and during all seasons. This should be done while keeping an eye on the feed costs, as they greatly affect profitability of the dairy milk farming business. Dairy cattle need a daily supply of all nutrients required for maintenance and production: milk, meat, growth and pregnancy. Failure to provide adequate feeding for the milk cows and calves results in low milk production, poor reproductive performance, poor growth of the calves and poor disease resistance. These factors all lead to reduced revenues for the dairy milk production business, thus lower profits. The common feeding programs of dairy farming business are usually based on pasture grazing, in combination with supplementary feed. The supplementary feed for dairy cows include concentrates, hay, corn, fodder, salts & minerals, silage, commercial dairy cow feeds and grains. The feed costs should be included in the dairy farming business plan.

Health & Disease Management

Ensuring the health and well-being of your dairy herd is paramount to the success of your dairy farming business. A comprehensive health and disease management program is essential to maintain the productivity of your cattle and the quality of your dairy products. Regular health checks, observation of behavior, and adherence to recommended vaccination schedules are critical components of routine health monitoring. A comprehensive disease prevention and control strategy is vital. This includes implementing quarantine procedures for new animals entering your farm and biosecurity measures to minimize the risk of disease transmission. Preparedness for disease outbreaks, including isolating and treating sick cattle promptly, is crucial to prevent the spread of illness within the herd.

Proper nutrition, sanitation, and hygiene play a pivotal role in preventing diseases and maintaining herd health. A balanced diet tailored to the specific nutritional needs of your cattle, along with clean living conditions and access to clean water, are vital. In addition, establishing a strong partnership with a qualified veterinarian, maintaining meticulous records, and providing proper training to farm staff are essential for effective health and disease management. Effective record-keeping is another cornerstone of health and disease management. Maintaining detailed records of your herd’s health history, including vaccinations, treatments, and observed health issues, allows you to track trends, make informed decisions, and continuously improve your health management practices. Prioritizing these measures not only safeguards the welfare of your cattle but also contributes to the production of high-quality dairy products, ultimately ensuring the success and sustainability of your dairy farming business.

Dairy Farming Business Model

In the dairy farming business model, your primary assets are your bulls and milk cows, which are carefully managed to ensure a sustainable source of income. The process begins with the mating of these cattle, either through natural reproduction or artificial insemination, to produce calves. Once the milk cows give birth, they commence milk production, which becomes a core revenue stream for your operation. The milk produced can be sold to various markets and consumers, contributing significantly to your income.

In addition to milk production, the management of the calves born is crucial. Some of these calves can be raised to replace the breeding cattle in your herd, ensuring the continuity of your dairy operation. Others can be sold at birth, providing an additional source of revenue. To maintain the health and productivity of your herd, you’ll also need to cull some breeding cows over time due to factors like old age or poor milk production, and these cows can be sold as well. While the business incurs expenses, particularly in feed costs, the revenue generated from selling milk, calves, and culled cattle far exceeds these input costs and operating expenses, resulting in a healthy profit. This cyclical and sustainable approach ensures a continuous source of income for your dairy farming business, making it a viable and lucrative venture.

Capital for Dairy Farming Business

The amount of capital required for the milk dairy farming business depends on the size of the project. When starting a dairy milk production business, most of the capital goes to acquiring the land, building infrastructure, and buying the dairy cows & bulls. You can get a loan from the bank, or funding from investors, to use as capital to start your dairy farming business. If you plan to raise capital from investors and a loan from the bank, you need a good dairy farming business plan. If you don’t have access to investors and bank loan, you can use your personal savings and start small, and grow your dairy farming business overtime. Dairy cattle farming is very profitable, so if you reinvest the profits you get, you can grow over time. Even if you are not planning to get a loan, you should still get a dairy farming project plan to guide you in starting and operating the business. It is essential for you to have a dairy farming business plan before you venture into the dairy milk production business, so that you know all the costs involved and you make an informed decision.

Market for Dairy Milk

Milk is often regarded as being nature’s most complete food because it provides many of the nutrients which are essential for the growth of the human body. Being an excellent source of protein and having an abundance of vitamins and minerals, particularly calcium, milk can make a positive contribution to the health of a nation.

The market for milk is very huge and is ever increasing, annual milk global demand exceeds 800 million tonnes. Your dairy farming business can sell raw or processed milk. The market for dairy milk includes supplying to milk processors, grocery stores, schools, companies, individual households, organisations etc. It’s important for the dairy farming business plan to include a proper marketing plan to use in your milk dairy farming business.

Keys to Profitability in Dairy Farming

Achieving profitability in the dairy farming business is a multifaceted endeavor that demands a strategic approach and a deep understanding of industry dynamics. Several crucial keys can unlock the path to profitability and financial sustainability. First and foremost, efficient herd management is essential. Selecting cattle with high-quality genetics, implementing effective breeding programs, and maintaining proper nutrition can enhance milk production while reducing operational costs. Regular health checks and disease prevention strategies are equally vital to minimize veterinary expenses and maintain overall herd health.

Optimizing feed and nutrition is another pivotal factor. Balancing your cattle’s diet with the right feed and nutrition can maximize milk production and minimize feed costs. Regular assessments of feed quality and collaboration with nutritionists can ensure that your dairy cattle receive the necessary nutrients for optimal health and productivity. Sustainable farming practices are increasingly important, not only for environmental reasons but also for cost reduction. Responsible waste management, efficient water usage, and energy-efficient facilities can lower operational expenses and appeal to eco-conscious consumers.

Controlling costs and streamlining efficiency are critical for profitability. Regularly reviewing expenses and identifying areas for cost-cutting without compromising animal welfare can have a substantial impact on your bottom line. Diversifying income streams beyond milk sales can mitigate risks associated with market fluctuations. Exploring opportunities such as selling surplus calves or producing value-added dairy products can help stabilize revenue. Effective marketing and branding, supported by a strong brand identity and customer engagement, can set your dairy farm apart in the competitive market and even command premium prices for your products.

Advantages of Dairy Farming Business

Launching a dairy farming venture comes with a host of distinct advantages that make it an appealing agricultural pursuit. Central to these benefits is the stable and unwavering demand for dairy products. Staples like milk, cheese, yogurt, and butter maintain a consistent presence in households worldwide, ensuring a dependable source of income for dairy farmers. This steady demand provides a reliable source of income, reducing the uncertainty that can be associated with other agricultural ventures. Furthermore, the potential for high returns on investment adds to the allure of dairy farming. With proper care and management, dairy cattle can produce milk for several years, providing an ongoing revenue stream. Additionally, the production of value-added dairy products, such as cheese and yogurt, can command premium prices in the market, further enhancing profitability. Dairy farming also offers diversification opportunities, allowing farmers to explore various income streams beyond milk sales. These can include selling surplus calves, producing dairy-based products, or even engaging in agritourism activities on the farm. Such diversification not only strengthens financial stability but also reduces risk, contributing to the sustainability of the business. A well-maintained dairy herd can provide long-term potential for your business. Cows can produce milk for several lactation cycles, and if managed properly, they can remain productive for years. This longevity offers stability and the opportunity to build a sustainable, generational farming legacy.

Why You Need A Dairy Farming Business Plan

A business plan is an essential tool for financial planning and management. It helps you estimate the initial capital required to start your dairy farm, including expenses for land, cattle, infrastructure, and operational costs. With a well-defined financial plan, you can budget more effectively. A dairy farm business plan is instrumental in helping you gain a comprehensive understanding of the profitability of your dairy farming business and the myriad factors that influence it. It serves as a financial compass, allowing you to assess the potential income and expenses associated with your operation, thereby providing a clear view of your farm’s profitability. Factors such as the cost of feed, veterinary care, labor, milk prices, and market demand all play pivotal roles in determining the bottom line. With this insight, you can make informed decisions to optimize profitability by identifying cost-saving opportunities, diversifying income streams, and implementing strategies to mitigate risks, ensuring the long-term financial success of your dairy farming venture. A well-crafted business plan also serves as a powerful tool for securing funding. When seeking financial support from investors, lenders, or potential partners, a comprehensive business plan demonstrates your commitment, professionalism, and a clear strategy for success. A robust business plan not only showcases your dedication but also provides prospective funders with the information they need to evaluate the viability and potential return on investment of your dairy farming business, making it a crucial asset in securing the necessary capital for your agricultural endeavor.

Pre-Written Dairy Farming Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the dairy farming business, we encourage you to purchase our well-researched and comprehensive dairy farming business plan. We introduced the business plans after discovering that many were venturing into the dairy cattle production business without enough knowledge and understanding of how to run the dairy milk production business, how to keep the dairy cows, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global dairy business plan will make it easier for you to launch and run your dairy cattle farming business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the milk cows farming business.

Uses of the Dairy Farming Business Plan (PDF, Word And Excel)

The milk cows farm business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your milk cows farming business
• As a dairy farming business proposal
• Assessing profitability of the dairy milk production business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Dairy Business Plan (PDF, Word And Excel)

The dairy farming business plan include, but not limited to:

• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Risk Analysis
• Industry Analysis
• Market Analysis
• SWOT & PEST Analysis
• Operational Requirements (Including technical aspects of how to keep the dairy cattle, feed requirements etc)
• Operational Strategy
• Why some people in dairy farming business fail, so that you can avoid their mistakes
• Ways to raise capital to start your dairy milk farm business

The Pre-written dairy farm business plan package consists of 4 files

• Dairy Farming Business Plan – PDF file (Comprehensive Version – 124 Pages)
• Dairy Cows Farm Business Plan – Editable Word File (Comprehensive Version – 124 Pages)
• Dairy Cattle Farming Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 52 pages)
• Dairy Farming Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the number of dairy cattle, selling price of the milk etc, and all the other financial statements will automatically adjust to reflect the change.

Click below to download the Contents Page of the Dairy Farming Business Plan (PDF)

Testimonial 7

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Testimonial 6

I purchased a business plan from you, and I’m glad to inform you that I was able to get my loan, and I’m starting my poultry farming business on the 1 st of July. This was made possible because of your business plan. Thank you very much, you made my dream come true.

Testimonial 8

Just wanted to say I am very happy with the business plan and I will gladly recommend your products, thank you very much and have a great day.

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Many thanks for your incredibly efficient service and thorough business plan. I am very impressed with the business plan. Before I bought the business plan, I tried to do my own business plan – it was such a nightmare and it turned out badly, also not to mention the stress it caused me. I wish I knew about your website earlier!

Testimonial 5

I was able to understand the business side of farming because of your business plan. You did extensive research; the business plan was well prepared and fully detailed.  It made everything clear, and I have somewhere to start now. I am confident that I am going to succeed in my business because of the guidance from your business plan.

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How to start Dairy Business in India [A Profitable Business?]

Are you thinking about opening your dairy business but not sure if it is a good idea or not?

Then relax. By the end of this blog, the picture will be crystal clear.

Well, from a hot cup of tea in the morning to cold ice cream as your dessert at night, each one of us is consuming milk in some or another way. Contributing to 4% of India's GDP, India's dairy business is one of the most suitable potential choices available for business in the country.

So, the dairy business is definitely an idea to consider.

Now that you have decided to start your dairy business , here’s a detailed and informative guide on how to start dairy business. This guide will be your savior to any sort of apprehension that may arise in your mind relating to the dairy business India . We have covered all the steps in this comprehensive guide for your dairy farm business.

Following are the steps to start a dairy business -

1. Physical Plan

Before opening any potential business, a dairy business plan must be formulated. A plan could be formulated in consideration of several factors, the most important being the requirements of the market. The eventual goal is to serve the consumers, so it is quite beneficial to study the target area you want to set up your dairy farm business.

The deciding factors include the geography, household types, income, culture of the place, etc. Based on these factors, the following choices should be included in your physical plan:

• The type of animals you want to keep like cows, buffaloes, goats, etc.
• Number of animals - 10, 15, 20, etc.
• Facilities you want to include - milking facility, winter facility, housing facility, etc.

2. Choose location

Based on your physical plan requirements, an ideal location should be selected where all the facilities are available at a price that maximises your profit. The location you choose for your dairy business India should be within the area, city, or state you wish to set up your business.

The area of the land should be large enough to accommodate all the facilities. It could either be set up on a place you own or an area which is rented on lease to you. In the latter case, the terms of the agreement should be taken care of. A few ideal locations of the dairy farm in accordance with different benefits are:

• Near the cities: Assured market, fewer transportation costs, less loss, high prices
• In rural areas: lesser labour and input costs, land for fodder cultivation

An ideal location for setting up a dairy business is in villages that are located in proximity to cities, and are usually on highways.

3. Plan Investment

After a thorough estimation of the total costs you require for your dairy business , you should make a dairy business plan on how to arrange your finances. Your investment is directly dependent on the machinery, facilities, area, animals you opt for.

There are several government schemes and private help you can avail to arrange your finances. These are the sources of investment you could consider:

• Your own savings
• Borrowings from non-institutional assets like relatives
• Self-help groups
• Subsidies by NABARD/Government

4. Obtain Licensing

Once you have decided on your capital source, you are ready for registrations and licensing. These licenses hold fixed fees and could be processed sooner with additional fees. These licenses are:

• Dairy Farm License
• Trade License
• Shed License
• FSSAI License
• Company Registration Certificate
• Registration with ROC or Registrar of Firms

5. Purchase of Assets

After the arrangement of finances and licensing, the next sole focus of how to start dairy business is to buy the required assets, animals, and machinery. This step is deemed as essential since it will determine the future of your dairy business in India . This requires three major decisions:

Purchase of animals

The decisions regarding different breeds of animals and kinds of animals will determine the quality of the milk produced. These are a few of the preferred species of the following animals:

• Cows: Cross-bred cows of Zebu and nondescript breeds with exotic breeds like Jersey bulls, Brown Swiss, Holstein Friesian, Sahiwal herds

2. Buffaloes

Mehsana, Elite buffaloes, Murrah, Nil-Ravi

Jamnapari, Boer Goat, Barbari

6. Purchase of Machinery

The machinery required for your dairy farm is dependent on the size of your dairy farm. The equipment required for your dairy farm is distributed in two broad categories:

• Milk processing equipment: Pasteurisers, homogenisers, and tanks, separators, milking machines.
• Farm equipment: Fodder truck, tractor implements, pressure washer, generator, mud pump, fodder block machine, fodder compacting press, milking cans, loader tractor, feed grinder, etc.

7. Adequate infrastructure

An ideal infrastructure to carry out dairy farm business activities becomes a necessity. Thus, the third major decision relating to your investment is the enhancement of infrastructure. The infrastructure required in your dairy farm is:

• Sheds: Dairy sheds, chaff cutter shed
• Ancillary structures: Milking parlor, straw store, feed store, milk room, manure pit, housing room
• Roads and alleys
• Water tanks and bore-well
• Farm implement and milk storage room, sterile facility

8. Hire employees

The dairy business is labor-intensive work that requires employees for several small and large activities. You could take help of OkStaff which is a one-stop solution for employee management. Employees should be included that meets the following requirements:

• Technically trained workers in areas like first aid, milking, etc.
• Helper workers trained or untrained
• Managerial staff like managers, heads
• Support staff
• Veterinarian
• Transport men

9. Marketing

Your query of how to start dairy business will be incomplete without the business marketing . You can create a buzz about your business using several potential marketing strategies like commercials, brand campaigns, new ventures, and business proposals. These strategies would make your business truly a successful venture.

So, there can be no denying that dairy business in India could truly prove to be one of the life-changing business opportunities. With an uprising fondness of the milk products, the demand for dairy-business would be everlasting.

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Q. What is the minimum investment that one needs to make in this business?

Ans. The cost of setting up a small-scale dairy business in India is usually around Rs. 10 – 20 lakhs, while it exceeds Rs. 1 crore in the case of large-scale business. This money is dependent on the size of your dairy farm and the facilities you wish to provide. The more advanced the facilities are, the more is the investment.

Q. Does the owner of a dairy business require any company registration certificate?

Ans. The owner must get a company registered certificate by registering his firm as a sole proprietorship, private limited, limited liability partnership, partnership, public limited, NGO, etc., based on the company’s working style.

Q. Does the dairy business only need attention till the stage of marketing?

Ans. No, the dairy business does not end at the process of marketing. The business needs continuous implementation of new, improved, and modern management practices. These activities are limited by timelines; thus, they should be completed within them.

Q. What are the important tasks that need to be done before you want to start a dairy farming business?

Ans. The important tasks involve the development of a business plan, consultation with professionals, comprehensive business research, plan of healthy infrastructure, effective waste management and feeding system, obtain valid licenses, get your capital arranged.

These are a few of the tasks that are required to be done before you start a dairy farming business.

Q. What are the major requirements of this business?

Ans. The major requirements include the availability of land either owned or rented on a lease, availability of capital generated through in-house sources like savings and out-house sources like loans, self-help groups, borrowings, and availability of labour, either skilled or unskilled. Land, capital, and labour are the three jewels of the dairy business . Land is the asset where every activity is carried out, capital is the asset that makes every function possible, and labour is the asset that carries out all the activities.

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MPs call for clarity over post-Brexit border checks on EU plant and food products

Sanitary and phytosanitary (SPS) checks were due to start next week but committee raises concerns over delays to plan

MPs have cast doubt over the UK government’s readiness for post-Brexit border control checks, which are due to come in next week, arguing that a scaling back of its plans appeared to represent a sixth delay to their long-awaited introduction.

The environment, food and rural affairs select committee (EFRA) has written to the government demanding clarity over the exact nature of the physical inspections on plant and food products, after it emerged these may be significantly scaled back due to fears of delays at the border.

On Tuesday, the government is scheduled to begin checks on medium and high-risk plant and animal imports from the EU, as part of its Border Target Operating Model (BTOM) plan.

However, the Financial Times reported last week that large parts of the risk management system for all commodity groups would not initially be switched on, after concerns within government that the border systems would not be fully ready .

The government insisted that checks would begin but said some would be delayed, with inspectors focusing on the highest risk products before scaling up to a more comprehensive regime in the future.

Robert Goodwill, the chair of the EFRA committee, demanded clarity from the government over what the latest delays entailed and details on what a graduated approach to the sanitary and phytosanitary (SPS) checks would look like in practice.

In a letter to the environment secretary, Steve Barclay, Goodwill said it was clear that ports and businesses were facing further uncertainty and were “confused and frustrated” over the delivery of these essential border controls.

He said: “There is broad consensus that a clearly communicated, phased implementation of SPS checks with distinct, achievable milestones is a strategic and pragmatic approach to change.

“We are concerned that your approach, if as reported, has resulted from poor planning and delivery of the model.”

Goodwill added: “We are concerned that this is a sixth delay to the implementation of SPS import checks in all but name.”

Physical checks at the border were first scheduled to be introduced in July 2021 but were pushed back as several border control posts were unfinished. There have been four subsequent delays, with the last one taking place in August 2023 .

Last week, trade bodies described the border system as being in “complete disarray” after the latest delay to checks emerged, with some warning that the confusion around the government’s plans made it difficult for businesses to plan.

Businesses have repeatedly complained about being left in the dark over aspects of the government’s border plans. This includes delays to publishing crucial details about how much it will cost businesses to have plant and animal goods coming through the Port of Dover and Channel tunnel.

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Despite a public consultation running last summer, and details being promised before the end of 2023, the specifics of the common user charge were only published earlier this month , 27 days before the checks were due to come in.

Ports have also complained that they have not received crucial information from the Department for Environment, Food and Rural Affairs (Defra) about inspector staffing arrangements and opening hours.

The letter from the committee pointed to these as examples of the government’s “inconsistent messaging”, and also questioned why the committee had not been informed of any changes to the government’s approach.

Goodwill wrote: “It is essential that Defra urgently takes steps to communicate the changed arrangements to businesses and the public to build confidence in our incoming border controls and reduce disruption.”

The committee has demanded details on the percentage of goods that the government intends to check by next Tuesday, as well as monthly updates on the progress of the inspections regime. A government spokesperson said: “Taking a pragmatic approach to introducing our new border checks minimises disruption, protects our biosecurity and benefits everyone – especially traders.

“There has been extensive engagement with businesses over the past year – with our approach welcomed by several trade associations and port authorities.

“We are confident we have sufficient capacity and capability across all points of entry to handle the volume and type of expected checks.”

• Food & drink industry
• European Union
• International trade
• Trade policy

More on this story

UK to delay start of health and safety checks on EU imports – report

New Brexit checks will cause food shortages in UK, importers warn

New Brexit checks to cost UK business £2bn and fuel inflation, report finds

Ditching European trade for China and India was ever a poor bet. Now it’s a farce

Brexit has made the UK a lower-status nation, says David Miliband

Brexit import charges may mean rise in food prices, say trade groups

‘Our profits could disappear’: small UK businesses hit out at new import fees

‘It was built for 80 vehicles. We’re expecting six’: the big Brexit border posts that may never be fully used

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Reporting by Julie Steenhuysen and Tom Polansek in Chicago; Susan Heavey, Richard Cowan and Trevor Hunnicutt in Washington; and Leroy Leo and Bhanvi Satija in Bengaluru; Editing by Tasim Zahid and Josie Kao

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Thomson Reuters

Tom has been a journalist for Reuters in Chicago since 2011. He writes primarily about food and agriculture, and has reported on disruptions to global fertilizer and grain supplies from Russia's invasion of Ukraine. He also covers U.S. livestock production and meatpacking companies including Tyson Foods, Smithfield Foods and JBS. Tom was part of a team of reporters that Reuters named as Journalists of the Year in 2016 for coverage of Monsanto. He also won awards from the North American Agricultural Journalists.

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Yemen's Houthis said on Saturday their missiles hit the Andromeda Star oil tanker in the Red Sea, as they continue attacking commercial ships in the area in a show of support for Palestinians fighting Israel in the Gaza war.