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Dairy Farming Business Plan Guide

Table of contents, for frequently asked dairy farm questions: read here., for green fodder production: read here., for silage making process: read here., dairy farming business plan guide:.

Dairy Farming Business Plan.

Dairy Farming Business Plan – Introduction to Dairy Farming:- No matter what the season is and no matter what the place is “There is always a great demand for milk” in India. Due to the population increase and consumption of milk tremendously increasing day by day. The rising unemployment and people who are looking for starting a dairy farm in recent years are almost doubled. Milk production in India is expected to grow at about 3 to 4% every year. There are many people who want to get into the small-scale or large-scale dairy farming business. However, due to lack of knowledge and initial investment involved they are unable to set up a dairy unit. We advise you not to get into this dairy business unless you dedicate your effort and time on your farm round the clock. You are not necessarily starting a dairy farm on a commercial scale; you can start on a small-scale business and expand it to a large scale once you are aware of ins and outs of dairy farming.

Before starting a dairy farm, makes sure to follow these:

  • Dairy Farming Business Plan #1- However as a beginner, you should definitely get some professional training from Agriculture Universities or Training centers of the Animal Husbandry Department or Krishi Vigyan Kendras or any private training dairy consultancies.
  • Dairy Farming Business Plan #2 – Visit local dairy farms and talk to the management so you can get an idea of managing the farm. Always question them about “problems” and ask how they are overcoming them.
  • Dairy Farming Business Plan #3 – Read any dairy magazines, online dairy blogs, and YouTube videos to get an overall idea of farming.
  • Dairy Farming Business Plan #4 – If you don’t have capital investment and want to get a subsidy and loan the dairy farm, visit your local agriculture/co-operative banks for more information.
  • Dairy Farming Business Plan #5 – As feed or fodder is the main component of dairy farming that directly impacts the profits; you must have good knowledge of green fodder cultivation practices and silage-making procedures. You can study the feed and fodder market in your region to find out the feasible and economical fodder solution.
  • Dairy Farming Business Plan #6 – Initially, you must visit some cattle markets to observe animals on sale and talk with persons engaged with purchasing animals to get an idea of the best breed, animal prices, and milk yield of animals. You can also learn some negotiation skills.
  • Dairy Farming Business Plan #7 – You should learn good labour management skills.

To encourage the rural agriculture sector and increase the milk production as per demand, NABARD (National Bank For Agriculture & Rural Development) helping farmers by providing subsidies on dairy farms and dairy farming loans through approved banks. One can avail of this by visiting your nearest commercial or co-operative or rural agriculture banks. One can get decent profits in dairy farming under good dairy management practices. In the following write-up, let us talk about the “Dairy Farming Business Plan” in detail. Let us take an example of 15 dairy cow farming.

Dairy Farming Business Plan – Requirements of Dairy Farming in India:- There are some components of dairy farming you should be aware of before setting up a dairy farm.

  • Land – You must have some cultivated land for growing green fodder crops for your cattle on the farm. The land area depends on the number of animals (cows or buffalo’s). Usually, 2 acres of land is sufficient to feed about 15 cows.
  • Shed – There must be a proper and covered secured shed in place before getting cows into your farm.
  • Water – Clean and abundant water facility is required for both cattle and to grow the green fodder.
  • Fodder – As cows need three types of fodder for best milk yield and high-fat content, you must have good fodder management from growing fodder to feeding fodder on daily basis. Dry fodder, green fodder, and feed concentrate (for extra nutrition) are required to feed the cows in your dairy.
  • Breed Selection – Selection of a good breed of cows that yield more milk is essential in dairy farming. Good milk yielding cows such as “Jersy”, “Red Sindhi” “Holstein Friesian (HF cows)”, “Sahiwal”, “Gir”, “Deoni” and “Ongole” etc.
  • Labour – Labour is a major task in dairy farming, the selected labour should be very good at handling the farm activities including growing green fodder. It is better to give one or two days of training so that they can understand the routine activities of dairy.
  • Vaccinations – To control diseases and protect cow health, you must have a proper vaccination schedule. For this purpose, you can hire a veterinary doctor for routine checkups and medication of cows. For the vaccination schedule, see the vaccination schedule table at the bottom of this article.

HF Cow.

Dairy Farming Business Plan – Shed Construction:- Well ventilated and the spacious shed is required for dairy farming. Hygienic conditions are very important in the shed for cattle health. When it comes to space, it is recommended to have 8 feet x 12 feet area for 1 cow. So total space required for 15 cows is about 120 feet x 12 feet. However, this area is not fixed and depends on cow size. Cow feeders should be constructed in between with a separation wall so that the cows can be fed from both sides facing head to head each other; this is what is called a “Head to Head arrangement”.

Care should be taken while constructing the dairy shed. The selected location should be elevated to prevent any water stagnation around the shed and it also provides well ventilation (sunlight and air). The dairy shed roof should be made with asbestos sheets and the floor should be made of either bricks or cement with enough inclination. This can provide good drainage for cattle urine and excrete. The shed should be cleaned daily to maintain hygienic conditions. Collect the manure on daily basis and store it somewhere outside of the shed. You can also make an outlet to the shed so that whenever the shed is cleaned the cow urine any leftover manure can flow into the field. All electrical fittings and water supply requirements should be fully filled as per need in hot areas, it may need to have fans and coolers for cows, especially in summer.

Dairy Farming Business Plan – Fodder Management:- Fodder management is very important in dairy farming. The daily milk yield of a cow depends on the type of fodder and the nutritional facts of the given fodder. High-yielding cows should be given 1 kg of concentrate along with mineral mixture to get 2.5 liters of milk yield. For example, if a cow yields 15 liters of milk daily then these cows should be given 6 kg of concentrate with a mineral mixture.

There are three types of fodder that can be provided under dairy fodder management practices.

  • Dry fodder: wheat hay, kutti (rice / pady straw), chokar (wheat bran),
  • Green fodder: Any leguminous crops which are good in protein supplements. For example Any gram crop, barseem, maize/corn, masoor, and hybrid grass-like CO-3 and CO-4, niper grass etc.. These green fodder crops can be utilized to make silage. This silage is very nutritious and milk yield will be increased. Silage making is very important and especially it is needed in dry periods. The link will be given at the bottom of the article about “steps in involved in silage making or how to make silage for cattle”. Generally, 2 to 3 acres of fertile land enough to grow green fodders for 15 cows. However, the yield of green fodder depends on many factors.
  • Concentrate and Mineral Mixture: Mineral mixture:- It is necessary to provide concentrate feed along with a mineral mixer on regular basis to prevent cows from mineral deficiency. All three types such as dry green and mineral mixture should be accurate proportions for best milk yield.

Note: The cost of feed may depend on the animal milk capacity. On average, the feed may cost about 200 to 250 rupees/day/cow.

Dairy Farming Business Plan – Water Supply:- Clean water supply is required for drinking and cleaning purposes of the shed. Arrangements can be done by providing overhead tanks on the shed.

Dairy Farming Business Plan – Selection of Dairy Breeds:- Successful dairy farming requires a good breed selection of cows. Select the dairy cow/cattle breed that is suitable for your climatic conditions and high milking capacity. You can visit your local farms and can observe the different breed types that are suitable. A crossbreed of HF cows (Holstein Frisian) with Indian Sahiwal. Or Jersey with Sahiwal or Jersey with Red Sindhi is preferable for the good milk yield. It is preferred to select the breed which produces milk of 20 to 25 liters/day. Artificial insemination plays a major role to cross with high-yielding breeds.

Jersey Cow.

Dairy Farming Business Plan – Cow and Calves Management and Care:- Artificial insemination or mating of cows should be carried out after every 3 months (90 days) of calving. Indian cattle breeds take 3 years in reaching the maturity phase whereas high yield  Jersey crossbreed or HF cows reach maturity at 16 to 18 months and they will be ready for mating. In general, for every 13 months, cows should be calving. The lactation period of cows should be 300 days and the service period should be 90-120 days. The gestation period of cows is going to be 266 days. More attention and care are needed in the case of pregnant cows as they need more nutrition during this stage. Concentrate & mineral mixture should be given during the gestation period of cows and this feed intake should be increased as time passes to ensure proper growth of calves and their udder.

Dairy Farming Business Plan – Vaccination Program in Dairy Cow Farming:- Before giving any vaccination in dairy, deworming should be done to get better results. However, deworming should be carried out frequently and the veterinary doctor is your point of contact for this. The following table is the typical vaccination schedule in dairy farming.

Dairy Farming Business Plan – Vaccination Schedule in Dairy Farming:

Dairy Farming Business Plan – Bottom Line:- The above write-up can be assumed for Dairy Farming Business Plan in Tamil Nadu, Karnataka, Kerala, Telangana, Andhra Pradesh, Gujarat, Rajasthan, Punjab, Haryana, West Bengal, Madhya Pradesh, Uttar Pradesh, Bihar, Maharashtra, and other states of India. However, the labour cost, Cow breeds, feed cost, or green fodder production cost and inputs may slightly vary from region to region. You can expect excellent profits with proper dairy management practices, perfect planning, and dedication completely to the farm 24/7.

In case if you are interested in this: Quail Farming Business Plan .

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54 COMMENTS

Hello, my name is Anuj purwar, I am a student. And want to start organic farming with two members team MAYANK SHINHA and rishab pandey. We planned for a loan by the bank and use hydraulic solar panels energy for electricity which help us in earning money because of this electricity were given to our nearly farmers who use petrol, diesel water pump by which we decrease less use of pratrol. We are 17-19 year old and planed for this. We need your support to prove ourselves and promote the organic forming and start online sale of our crops from us to customers directly.

I am not sure about your question. You say solar and talk about Organic.

Read here about : Organic Farming .

Selling electricity to anyone except the government is prohibited in india. Please make sure you are not breaking any law.

GUPTA DAIRY FARM KARNAL Supplying Pure Breed and vaccinated Murrah Buffalo, Sahiwal Breed Cattle, Jersey Cow, Dairy Cow, Cow Heifer, Buffalo Heifer, Australian Cow, American Cow, and other types of Cows and Buffaloes…

We don’t sell any livestock or agriculture produce.

we don’t call or have personal support. You can post comments and get reply.

Respected Concerned person/ / Can you deliver the cows and buffalos throughout india?

Dear sir, I want to open new dairy farm in Jhabua (MadhyaPradesh). I have required 10 Buffalo with good quality and can give 10-15 litre milk per day. please send me the details about buffalo , price, purchasing locations , transportation etc.

regards dinesh bhayal

We don’t sell any cattle/buffaloes.

You must be an adult for eligibility of the loan for dairy farming.

hi i want to set up dairy farm, kindly suggest me the details in pdf, want to do at odisha. if u have, [email protected]

Soon we will introduce farming or agriculture pdf’s to download.

Hello, Can any one suggest the process of dairy loan. I will start dairy farming immediately.

For Dairy farming subsidy and loan, read this: Dairy Farming Subsidy .

You mean for dairy shed construction and design?

Above article is really helping. I have around 7 Bigha land in Kotdwar-Uttarakhand and looking to get in to dairy farm business, Can I expect a professional help from you ? like in Planning the dairy farm, loans and subsidy, good milk yielding cows and buffalo.

Glad the information is helping at least some people. We don’t have personal consulting support at this point in time. However, you talk to NABARD branch in your city for qualified agriculture/farming loans.

Hai, my name is Mohith and I from Telagana state, I want to start Cow farm. Please guide me.

Well, Mohith Dairy farming needs investment, patience and hard work along with dedication. You can not trust the third person in this business as feed management and care is utmost priorities of dairy cow farming. From, NABARD you can get a subsidy and loan for setting up a dairy cow farm. Here is some information which may be helpful: Dairy Farming Subsidy .

Dairy Cow Farming Project Report t .

Sir, I am from Odisha. I am interested to start a Dairy Farming In Odisha where can I get assistance? and necessary help. Please advise.

NABARD is your point of contact for any livestock subsidy. You can read >DAIRY FARMING SUBSIDY .

Hi, I am Prashant Deshmukh. I really interested to start a new Dairy farm business in Maharashtra. How to start, please guide me.

Well, to start a dairy farm, you must have proper planning, dedication. It requires your hard work. First, decide which dairy breed, you would like to go for. Feed management is very important in dairy farming. Make sure you have enough laborers to handle the farm. Our advice is to start with less number of cows and start increasing as you get more experience. Apart from this marketing is another factor for your dairy products. Here is some information which may help you. Read: DAIRY COW FARMING PROJECT REPORT .

Hello Sir, I am Rohidas Sapke and looking to start my own dairy farm business. Can you advise me is there any private institute who gives training on How to handle dairy farms/animal care/business related things and all?

Very soon, we will update training and consulting services addresses.

I am exploring possibility of dairy farming near Raipur in Uttarakhand.The subject is new to me as I am not a professional from this field.I would like to see a viable business plan,if you have one,for a midsized investment. Regards

It is really a resourceful information on every aspect. Thank you Can you please write on financial breakups, for shed, cows , fodder cost etc all occurring expenses. just as a template it will give an idea for us on financial planning.

Check these:

Dairy Farming FAQ .

How To Get NABARD Subsidy and Loan .

Dairy Shed Design and Construction .

Dairy Cow Farming Project Report .

Sir, I am 37 yrs old from Barshi, in Solapur district. We have some farm land and wish to start a dairy business from scratch. How can I start?

Read this: Dairy Farming FAQ .

Dear Sir, I really appreciate the guideline for my knowledge I am an MBA qualified. I hate jobs, I love business have a full plan to start a dairy farm business I have 5 acre land in one place 4 acre land in other areas which are in a part. Anyhow, I made a contact in our area and there is no a single dairy farm. This would be a great opportunity for me. But need knowledge of this business.

Umar Saood from pakistan currently working in UAE

Dairy farming is not simple as you think. However, with proper planning, dedication and hard work defiantly will pay you off. You cannot depend and trust third person.

To have complete idea. You better read all the dairy farming articles.

Read: Dairy Farming Information .

I am Mahesh and I want to know whether Coorg, Karnataka is best suited for HF breed cows, since we have 2 to 3 acres of land is coorg but due to heavy rain during June to October, we are still worried whether we can go-ahead for dairy farming with HF breeds. Your guidance and suggestions will help us further.

Hi I am a pure science graduate and I have interest in polyhouse and hydroponic agriculture. I want to start cultivation of vegetables in a small area like 1000 sq.m for commercial purposes..n establish my career on it. I like to spread it through out my state working as a professional consultant too. For this, I need proper training and guide and financial resources. Now plz help me to know all about high tech poly house, hydroponics that can help me to build my financial path as a grower and as a consultant too. Plese, help me show me the way. Thank u.

Dear sir new dairy farming business open in my village Bila gujarat so plz help me loan and ideas 7778014786 my WhatsApp number

hello sir, i am 20 yrs old and i want to open dairy farm. can you tell me about problems we face in this field.

Hello Mr. Reddy, Thanks for your effort to put this content in internet, it is very much informative. I am very much interested to start a dairy farm, but need proper guidance to set up this. I’m gathering information from youtube channels and some blogs like your. I may contact you to get some information.

Thanks Sahoo

very useful information sir Thank you

Hello sir, Iam r kanaka raj Ex-Servicemen Army I live from andaman and nicobar Islands. I want to open dairy farm. Can you tell me about problems we face in this field.

Please suggest the training institutes for dairy farming short courses.

Regards Mahesh

Subject: New Dairy Farm

This is Harish (farmer) from Telangana state, I’m really interested to start to start new dairy farm in my village I am having 5 acres land, Hence pls could you advice that from where to get the good livestock’s and what is the cost per cow. Pls could you share with me the shed diagram how to build for at least 10-12 cows.

Kind regards: Harish

Hi, Can you explain this business in financial terms….like cost of animals…on average how much they can produce milk….cost of milk….animal maintenance cost etc…if you can provide a table then it will be very useful

Dear sir I have plan to start up a dairy farm but I don’t have any idea I need some guid line to start up I need some ideas can u tell how can help me on this can u help me on this

My name is Obeng Kingsley an M. PHIL student at University of Ghana pursuing Agricultural science. I am currently rearing sheep but facing challenges in the housing system. I need advise on housing management system. thanks

Dear sir, I want to open new dairy farm in CUMBUM (Andhra Pradesh). I have required 10 Buffalo with good quality and can give 20-30 litre milk per day. please send me the details about buffalo , price, purchasing locations , transportation etc. is it supporting goverment like subsidy and any extra allowance.let me know sir,i donot have any idea.ping me your phone number sir.i need to talk to you..ok sir.

regards, SUDHARSHANREDDY.J

Hi, Do you have any worksheet to make business plan? I need to calculate EBITDA for my Dairy Venture.

Thanks in advance.

thanks so much for such relevant information that will guide us in our development in business.

hi, I want to set up a dairy farm, kindly suggest to me the details in pdf, want to do it at Haveri.

can you please inform me about loans from centre govt subsidy and financial loans ?

i want starting small scale from kerala . please suggest to me rules and regulations

can you suggest names high feeding cows ?

I want to start Cow farming. How much amount will be required for 15 number Cow farming inclusive of Construction, feeder, medical treatment and labour cost etc.

How much monthly income i get with 15 cows?

Hi everyone I am planing for Dairy farming.can any one tell about the cost and land requirements & government rules

nice information

The information about diary farming are very nice. I am very interested to farm which my own please help me regarding this business.

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Starting Dairy Farming Business Plan (PDF)

Dairy Farming Business Plan

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.

milk cow farm 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)

dairy farming business plan pdf

Testimonial 3

I was extremely lucky to come across StartupBiz Global. Their business plan exceeded my expectations, and most importantly I was able to secure a loan from my bank. Thank you guys, now my dreams are coming true!

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I found Startupbiz Global online when I was in desperate need of a business plan. I was overwhelmed by the quality of the business plan, it’s comprehensive and well researched! I did not have to wait to get the business plan, I got it instantly after payment. I highly recommend Startupbiz Global, and would happily use them again in the future.

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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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!

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Testimonial 1

StartupBiz Global provided a very professional and comprehensive business plan which I used for my business. The business plan was easy to edit, and I was able to get the funding which I wanted. I highly recommend their business plans.

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

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

milk cow farm business plan

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your dairy farming business! Check out our collection of business plans  , and more business ideas .

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

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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.

A dairy farm in India

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

Dairy Farming

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

Cow farming fodder

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.

Milking machine in dairy farming

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 .

Download Dairy Farm Project Report

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.

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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.

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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You are currently viewing Starting a Dairy Farming Business in India: A Comprehensive Guide

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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Welldefined, spacious and hygienic shed for cattle is needed for their good health and maintenance.  Let us consider a herd of 10 cows. Accordingly to the scientific studies, it is proved that 1 cow should have 7ft x 11 ft area and it also varies depending upon the size of animal. For 10 cows the shed should be minimum of 80 ft x 12ft. Cowshed can beconstructed in two ways:Closed housing, and Open housing. Open housing are not recommended these days as we keep high milk yield animals which needs extra care. So generally, it is closed housing system is the better option. Closed housing is further classified in two arrangements:Head to Head Arrangement and Tail to Tail Arrangement.In head to head arrangement animal feeder or menzer is constructed in between the shed with a separation wall in between so that the cow can be fed from both sides facing head to head each other.On the other hand in tail to tail arrangement Feeder or menzer is constructed on either side of the shed so the cows are fed in tail to tail position. It is better to prefer Head to Head Arrangement because it costs less as compare to tail to tail arrangement. In this arrangement feeder or menzer is one in between the shed.

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Shed should be in some elevated area to avoid rainfall water to come inside. Special attention should be given in the flooring. The floor must be made of bricks and cement with proper inclination so that the urine or excrete can drain easily.Proper Drainage system should be maintained to drain the urine on either side of the shed to avoid the stagnation and infections.

For the shed construction choose area which has proper light and sun with little elevation from normal ground level. For construction use cement, bricks and asbestos sheet can be used as the roof of the shed.Electricity and proper water supply is also needed for the high yielding cows such as HF and jersey; fans and cooler is also necessary during summer season.These gives the cooling effect during summer season, as the cows has to withstand the high temperatures.

Dairy Farm Shed Construction.

High yielding varieties requires nutritional facts in the fodder along with other mineral mixtures. 1Kg of fodder should be given for 2.5ltrs of milk per cow. For example, if a cow yields 10ltrs of milk then they should be provided with 4Kg of concentrate with mineral mixture. There are three kinds of fodder, which can be includes dry fodder, green fodder, concentrate and mineral mixture.

Dry fodder constitutes of 2/3 rd  of the supplements. Dry fodder are of various kinds which includes wheat hay, paddy straw(kutti), chokar, etc. whereas green fodder plays a vital role in developing the immune system in animals health and also provides the essential nutrients required for good milk yield. We must have surplus area of land preferably 2 acre for 15 cows for green fodder cultivation. Green fodder includes leguminous crops such as gram, barley, maize, masoor, etc. They are rich in protein and hence increase the protein as well as fat percentage in the milk.Mineral mixtureis essential for the good health of the cattle and the natural thing is that the mineral and protein content in the fodder also reflects in the milk content. Appropriate proportion of dry fodder, green fodder and mineral mixture with concentrate should be calculated per cow and should be given accordingly.

Proper water supply is very essential one, for the cattle to drink, cleaning of cow and shed, for mixing dry fodder etc.

Right breed selection is very much important in the dairy farming. As the profit is totally dependent on the milk yield of the cow. Holstein and Jersey are the top two breeds in dairy farming. Both are having the ability to convert high quantities of fodder into milk. They are popular high yielding breeds that can produce large quantities of milk. They nearly yield 10-12 litres of milk.

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In general mating or insemination is done after every 3 months of calving. Indian breed takes approximately 30-35 months in reaching maturity phase whereas high yield cows HF or jersey cross breed reaches maturity at 15-18 months and it is ready for mating immediately. Important note should be done that for every 13 months cow should be calving, and then only the farm production will increase in number. Check carefully that after three four attempts of mating if cattle are not conceiving then there is a fertility issue or it might be some genital problem so it is better to provide proper medication.

During normal conditions of reproduction, there is an equal chance for the exchange of traits and characters from the parents, but there is no guarantee for getting a desired trait in the offspring. New technologies have been created and applied to the cattle industry to increase the efficiency in the production of milk per cow through a process called Assured Genetics where the calfproduced will be a female offspring with all the high yielding traits. This discovery reveals the impact of traits in animal reproduction, where you can design an embryo with specifically required traits before implantation into the surrogate cow. This is the key point for researchers to create a calf having certain qualities of Desi Cow, along with the high yielding character (a trait of high yielding cows). This technique will assure the dairy farmers to give rise to complete high yielding calves that can withstand high temperatures and they are drought resistant, disease resistant, etc. Special care for pregnant cows Pregnantcows should be given utmost care and attention along with fodder and other requirements should be given during gestation period. Just before 3 months, fodder should be given as much as they can feed, so that there would be a proper growth of calves and its udder. For pregnant cows it is better to avoid injecting oxytocin as it is harmful to calf and sometimes it causes the death of the calf. Note:The effect of oxytocin hormone remains for 7-8 minutes in this duration and total milk should be taken out from the udder otherwise milk secretion becomes difficult.

Timely vaccination schedule should be properly maintained in order to prevent cattle from harmful diseases. It provides better immunity and disease resistance to the cattle. Note: Before giving any any vaccination, deworming is compulsory which yields better result.

The following precautions should be maintained by the Dairy farmer. Every morning before collection of milk from cows, examine each cow and observe their mood carefully. See if they are in good health condition or not which can be known by their rumination. If they are not ruminating properly, then there is some problem like fever or internal parasitic load or may be someinfections then immediately contact veterinary doctors for the best treatment. Seasonal deworming is necessary to remove the parasitic load.Before milking, clean the shed and give the proper fodder to the cattle. It is recommended to use mustard oil to lubricate the udder during the time of milking.After milking don’t allow the cattle to sit, it is better to provide the fodder, because their udders may get infected, so give them the green fodder which is time consuming for them to have it and makes them to stand for long time.Do not give raw wheat, rice etc. as fodder as it is difficult for the cattle to digest them. As the cattle metabolism is different from humans.

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Fodder should be given two times per day i.e., in the morning and in evening, it is also better to allow the cattle for grazing outside but care should be taken that they should not eat the waste papers and plastic covers. Summers are very hectic for HF Cows as they heavily respirates, hence atleast water sprinkling or bath 3 timesis necessary and cool climate should be maintained by putting fan and cooler in shed. Similarly during winters care should be taken by covering the shed with the jute bag, if the temperature is too cold then it is better to cover the cattle also with jute bags, light fire to provide heat and maintain the warm temperature in and around the shed.

Cost of Dairy Farming in India.

Cost for constructing cow shed and calves pen= Rs. 1,50,000 Cost for 10 cows HF cows with average yield of 10 litres per day = Rs. 3,50,000 (This cost may vary depending on age of animal, milk capacity and other factors) Cost involved in transportation=Rs.10,000 Cost of Chaff cutter=Rs.25,000 Cost for electricity=Rs.15,000 Costs for bucket milking machine=Rs.30,000 Costs for fodder for all stages=Rs.50,000 Costs of insurance for animals=Rs.8,000 Labour charges = Rs. 50,000 Miscellaneous costs=Rs.15,000 The total costs involved is Rs. 7,03,000 to set up a 10 cow dairy farm.

Note: The above amounts are fixed and they are in Indian Rupees.

For Dairy Farmers, if you follow these methods and precautionsas mentioned above then surely there would be a better result in the terms of milk production and hence your dairy business will be into profits. Follow the rules and regulations in it. You may be interested in How to Grow Hydroponic Peppers .

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How To Start Dairy Business In India? [Business Tips & Steps]

Table of Contents:

1. Is Dairy Business Profitable?

2. the market of the dairy business, 3. how to start dairy business, 4. dairy business plan, 5. which animal to select cow or buffalo, 6. dairy business in india- the legal requirement, 7. how can i get a dairy loan from nabard, 8. key takeaways.

Starting a dairy farm is ordinarily referred to as 'an all-season opportunity' as there is a steady demand for milk and milk products in India or anyplace in the globe. It demands 14 to 18 hours per day towards the business. Milk production in India is always on a high with over 3% – 4% increase each year.

For all these reasons, the dairy farming business is emerging as a thriving market for business people. The operation of a dairy farm is an amalgamation of extensive efforts, a significant amount of time, and useful resources. Along with these come a multitude of exercises such as cleaning the farm, management of sheds, feeding the cattle, or even the washing and milking of animals. Let's understand how you can get started with one.

dairy farm business plan pdf india

So who are the consumers of the dairy products if you are to start the dairy business? The study of Income groups, geography, and whether household types are nuclear or joint family is necessary to identify various categories of highest-selling dairy products. Also, pertinent questions like a farm of cow dairy or that of a buffalo dairy will take us to the study of the consumption patterns and demand of the market. The buffalo milk has higher fat than that of cow milk.

Again, many families in India boil milk despite milk being pasteurised to extract the 'Malai' out of the milk and prepare ghee at home. This is economical with the added benefit of consuming homemade ghee. But again there are areas in India where there is a high density of nuclear families and they have a high disposable income. These families will favour buying low-fat milk and they will afford a premium quality of cow milk. Again, regions in India with a higher population density of children who are less than 10 years of age will show higher demand for the category of A2 desi cow milk as it is comfortable to digest.

dairy farm business plan pdf india

Let's understand what a Dairy Business plan consists of First is the introduction which outlines the nature of the business, its scope and objectives, the principal problems and the financial summary. The Mission, vision and objectives of the company contain the goals of the dairy business like producing the best quality milk or products or providing customer satisfaction by giving value for money.

The location details and the history of the company: It commonly consists of data linked to where the company is situated in a particular region. Details of the area whether owned, rented or leased should be included. The details of the cattle and farm with more information about the equipment: Data of complete details of total cattle used in the business and the different varieties of equipment acquired with their billing details are also important.

Marketing Strategy of the dairy business- The plan needs to have every information about different business proposals, marketing plans, commercials, new investments to be initiated and details of campaigns of the brand. Execution of the Plan- This should describe business plans concerning its implementation and management with forecasted timelines for fulfilment. Forecast of goals for the subsequent five years, with yearly analysis and practical information and details of a total of the permits and licenses are required to start this business.

Also Read: Best Milk Brands in India

So let's have a look at the components of the dairy farming business which are to be utilised before and after starting the business:

  • Land: those who own the farm are required to keep cultivated fields or land for producing fodder yields for the cattle. Its size depends on the total number of cattle which are kept. Normally, 1 acre of land is adequate to feed 7 to 10 cows.
  • The required breed of cattle and their vaccination : For more milk, the cattle breeds are required to be selected well. For disease control of cattle and to protect their health, a proper vaccination schedule needs to be followed.
  • Shed: It is a covered area in the farmland to be built before taking in cattle; this is where the cattle are to be kept.
  • Cattle fodder and water: These are to be kept in abundance, as water is required for the growth of green fodder and cattle nourishment.

dairy farm business plan pdf india

Cows of good quality cost around Rs.1500 to Rs.2000 per litre of milk production per day. Cows breed frequently giving one calf every 13-14 months in the interval. Being more docile, they can be managed easily. Holstein and Jersey's crosses have well accustomed to the Indian climate. The fat percentage of cow's milk is lower than the Buffaloes. In India, there are good buffalo breeds like Murrah and Mehsana. Buffalo milk has more requirements for producing butter and butter oil (Ghee).

Buffalo milk is also favoured for preparing tea. Again, buffaloes can be kept on more coarse crop residues, thus reducing feed cost. Buffaloes require a cooling facility. Following the Indian situation, a dairy farm should consist of at least 20 animals like ten cows and ten buffaloes. This strength can comfortably go up to 100 animals in the proportion of 50:50 or 40:60. Post that reviewing your strength and market potential required.

Also Read: Best Skimmed Milk Brands in India

It varies across states depending on whether the business also intends to process milk and manufacture products. For a normal individual dairy farm, the first point of contact is the local area veterinary and dairy development department. If your farm is a registered dairy co-operative society, then no other government authority is required to be contacted. License is from veterinary or related officers of municipality, corporation, or local panchayat. If it's a large farm, then permission may be required from the pollution control board. The standards are BIS (BUREAU OF INDIAN STANDARDS) in connection with a dairy farm. These include:

  • 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.

Up to 33% Subsidy on Loans which can be Rs. 7 Lakh for Opening Dairy Farm. The National Bank for Agriculture and Rural Development (NABARD) initiated a subsidy scheme under Dairy Entrepreneurship Development Scheme (DEDS) provides farmers with benefits in getting subsidies on dairy farming loans through approved banks.

Farmers can get a 33.33% subsidy of the entire project cost on dairy farming loans amounting up to Rs. 7 lakh by visiting the approved Regional Rural Banks (RRBs). Or the commercial and co-operative banks. The applicants can also gather all necessary information related to subsidy and loan facilities from the nearest bank's representative.

dairy farm business plan pdf india

It is not child’s play to maintain a cattle farm. Yet with much zeal and technology at hand, it can yield profits. We should be prepared for a few challenges like cattle breeding, and the availability of milk which is dependent on nature; sometimes these factors can be beyond our control. Alert, hardworking, and responsible managers can do magic. Quality control is also necessary at every step of production.

Stay updated with new business ideas & business tips with OkCredit blogs in English, Hindi, Malayalam, Marathi & more! Download OkCredit now & get rid of your bookkeeping hassles. OkCredit is 100% Made in India.

dairy farm business plan pdf india

Q. How much does it cost to start a dairy farm in India?

Ans- To start a dairy business in India , investment costs can range anywhere between 10 to 20 Lakh Rupees if you want to establish your dairy business plan in a rural, small-town or urban area of India.

Q. How do I start a dairy business?

Ans- Follow these steps to understand how to start a dairy business in India:

  • Choose a Good Location
  • Choose the type of cow or buffalo
  • Register your dairy business with respective authorities
  • Get all your licences and permits
  • If you're farming with cattle, rent or buy the necessary types of equipment
  • Create a market strategy for your target customers
  • Manage your Finances/Investments

Q. Is dairy business profitable in India?

Ans- Since ancient times, dairy farming and business have existed in India as one of the most in-demand businesses. Apart from standing straight to the test of time, dairy farming is a safe and profitable business in India.

Q. How many cows do you need to start a dairy farm?

Ans- A minimum of 20 animals i.e. 10 cows and 10 buffaloes is needed to start a dairy business in India. The strength will differ as your business expands and you can equalise the animals' ratio as per your business's demands and needs.

Q. Which is the biggest dairy farm in India?

Ans- Bhagyalaxmi Dairy Farm is the largest dairy in the world. Located in Pune, Maharashtra, India has the world's largest dairy farm and is also the biggest milk producer.

Q. What is the full form of Amul?

Ans- The full form of Amul is Anand Milk Union Limited.

Q. How safe is dairy business?

Ans- As dairy farming is high in demand and eco-friendly plus needs low skilled labourers, it is a very safe business in India. Since the dairy market is active all around the year, the location selection doesn't remain a constraint anymore. It needs a low amount of investment, and the cow dung produced by the animals can be used to manufacture organic manure and also sent to biogas plants for production purposes.

Q. What are the legal requirements for setting up of dairy farm?

Ans- The legal requirements for starting a dairy business in India are:

  • You need a minimum of 3000 square feet on land to accommodate at least 20 animals.
  • Before expanding to 100 animals you should check your market potential.
  • For a dairy farm loan, you will need- Aadhaar Card, voter id, driving license, and PAN Card.
  • Address proof like- Utility bills, Aadhar and ration card.
  • Past 6 months salary slip
  • Passport size photographs
  • Registration proof of dairy business

Q. How many acres do you need for a dairy farm?

Ans- If you go as per the thumb rule of dairy farming, a decent space of 1.5 to 2 acres should be good enough to start a dairy business in India . You also need to keep some land aside for fodder cultivation depending on soil type, rainfall and irrigation for approx 10 cows in the beginning.

Q- Cows of which breeds are used in India for more milk?

Ans: Tharparkar, Sahiwal, Red Sindhi, and Gir.

Q- What is the production capacity of milk by jersey cow each day?

Ans: 30 to 35 litres per day and a yearly average of 5000 to 8000 litres.

Q- How many calves can be grown in a year?

Ans: For daily production of milk, the minimum number of calves is one as they give birth in 12 to 14 months. A cow's life span is 6 to 8 years, so it can give birth to 4 to 6 calves.

Q- What are the different types of buffaloes that can be used?

Ans: Jaffarabadi, Murrah, Mehsana, Nil Ravi, Haryana, Surti, and others.

Q- How much does it take to feed daily a cow in a year?

Ans: Though it depends upon the quantity of milk produced, yet the cost for every 20 litres of milk production for a cow weighing 500 kg, is between Rs 250 to 500.

Sukanya Mukherjee

Sukanya Mukherjee

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Dairy Farm Business Plan Template

Written by Dave Lavinsky

dairy farm business plan

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 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

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?

Other Helpful Business Plan Articles & Templates

Business Plan Template & Guide For Small Businesses

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Dairy Farm Business Plan Template

Written by Dave Lavinsky

Dairy Farm Business Plan

You’ve come to the right place to create your Dairy Farm business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Dairy Farms.

Below is a template to help you create each section of your Dairy Farm business plan.

Executive Summary

Business overview.

Pleasant Hill Dairy Farm is a startup dairy farm located in Cashton, Wisconsin. The company is founded by Jon and Susan Hartford, former managers of a corporate dairy farm business. Jon and Susan managed the production of milk, cheese and yogurt on ten farms within their former business and successfully grew the business in eight years from 1M to 4M in yearly revenue. They are known for their respectful, flexible and visionary management style.

Pleasant Hill Dairy Farm will provide a fresh alternative to corporate dairy farming. Pleasant Hill Dairy Farm will provide a one-stop shop for artisan cheeses, goat and cow milk, goat, sheep and cow cheeses, and a variety of garden fresh produce. All are organically processed and prepared for individual customers who are seeking the purity of organic, wholesome milk, cheese and produce.

Product Offering

The following are the products and services that Pleasant Hill Dairy Farm will provide:

  • Organic cow and goat milk
  • Organic cream and half-and-half
  • Organic artisan cow, sheep and goat cheeses
  • Organic fresh daily produce from the Pleasant Hill garden
  • Garden and farm tours for guests
  • Event venue: garden and farm locations
  • Volunteer “Farmer for a Day” Program

Customer Focus

Pleasant Hill Dairy Farm will target all residents and visitors within the region. They will target consumers seeking artisan cheeses and vendors who sell the cheeses. They will target wedding planners and other party organizers. They will target volunteers for special programs that highlight the community importance of privately-owned farms.

Management Team

Pleasant Hill Dairy Farm will be owned and operated by Jon and Susan Hartford. They’ve recruited their former associate, Tom Watkins, to be their new Field Manager. In addition, they’ve recruited Sheila Watkins to be the Office Manager and caretaker of forms, filing and administrative tasks.

Success Factors

Pleasant Hill Dairy Farm will be able to achieve success by offering the following competitive advantages:

  • Friendly, knowledgeable, and highly-qualified team of Pleasant Hill Dairy Farm
  • Unique artisan cheeses, organic milks, fresh produce and other farm-fresh items.
  • Event venues for small or large parties and weddings, each with sunset views, garden patios and comfortable seating for guests.
  • Opportunities for consumers to experience small farming via “Farmer for a Day” and other introductory experiences.
  • Pleasant Hill Dairy Farm offers the best pricing in town. Their pricing structure is the most cost-effective compared to the competition.

Financial Highlights

Pleasant Hill Dairy Farm is seeking $200,000 in debt financing to launch its Pleasant Hill Dairy Farm. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

  • Office space build-out: $20,000
  • Office equipment, supplies, and materials: $10,000
  • Three months of overhead expenses (payroll, rent, utilities): $150,000
  • Marketing costs: $10,000
  • Working capital: $10,000

The following graph outlines the financial projections for Pleasant Hill Dairy Farm.

Pleasant Hill Dairy Farm Pro Forma Projections

Company Overview

Who is pleasant hill dairy farm.

Pleasant Hill Dairy Farm is a newly established, owner-operated dairy farm in Cashton, Wisconsin. Pleasant Hill Dairy Farm will be the unique, cost-effective, and engaging authentic dairy farm for visitors from the city and the surrounding communities. Pleasant Hill Dairy Farm will provide a comprehensive menu of artisan cheeses, milks and product for all customers to purchase. Their unique approach includes an offer for visitors to become a “Farmer for a Day” to better understand the importance of private farming by families rather than large conglomerates.

  Pleasant Hill Dairy Farm will be able to produce a variety of flavorful organic cheeses, organic milk from cows and goats, and a dairy selection of fresh produce from the farm. In addition, visitors can experience the joys of farming and get a “hands on” feeling for the occupation by becoming farmers for one day. The addition of offering event venues captures the beauty of the farm and will add to the revenue of the farm by maximizing the use of the land and natural beauty of the area. The team of professionals are highly qualified and experienced in dairy farming and the hospitality industry.

Pleasant Hill Dairy Farm provides exceptional artisan cheeses not to be found elsewhere and organic milks that consumers are searching for. The staff prides itself on delivering the best customer service as they engage with enthusiasm on behalf of their private farm-based business.

Pleasant Hill Dairy Farm History

Pleasant Hill Dairy Farm was purchased in 2018 by Jon and Susan Harfford. They have grown the 20 acre farm and animal population to include 5 acres of farm produce available year round and livestock including 45 sheep, 22 goats and 35 dairy cows. The Hartfords built barns, tack rooms, offices and a small store to accommodate all that is necessary to provide and sell products to the general public. They also constructed event venue areas for special occasions to add to the revenue stream for their business. Their approach is that consumers will love the artisan flavors of organic cheeses and appreciate their organic milks. The produce sold will be fresh from their gardens every day, which is appealing to consumers.

Since incorporation, Pleasant Hill Dairy Farm has achieved the following milestones:

  • Registered Pleasant Hill Dairy Farm, LLC to transact business in the state of Wisconsin.
  • Has a contract in place for a 10,000 square foot office near the entrance of their farm Reached out to numerous contacts to include Pleasant Hill Dairy Farm as an event venue.
  • Contacted wholesalers with invitations to sell Pleasant Hill cheeses and milks.
  • Began recruiting a staff of six and office personnel to work at Pleasant Hill Dairy Farm.

Pleasant Hill Dairy Farm Products and Services

The following will be the products and services Pleasant Hill Dairy Farm will provide:

  • Uncured fresh artisan cheeses
  • Cured and aged artisan cheeses
  • Goat, sheep and cow yogurt
  • Fresh farm produce harvested daily
  • Farm tours for visitors
  • “Farmer for a Day” guest program
  • Event venues for weddings and parties

Industry Analysis

The dairy farm industry is expected to grow over the next five years to over $66 billion. The growth will be driven by consumers’ interest and consumption of organic dairy products and produce. In addition, the growth will also be driven by the consumers’ interest in sustainable farming methods. Many, if not most, consumers also look toward future farming practices that embrace advanced agricultural practices and technology, while at the same time minimizing the ecological footprint.

While some of the costs will increase due to the expense of livestock welfare requirements and farming supplies, including feed, the costs will decrease as artisan cheeses are introduced and consumers become familiar with the specialized, rich flavors of organic cheese, milk and yogurt products. Farms will become more valuable as land ownership shifts, however the farms that include a variety of uses for their farms, such as event venues, community outreach programs and other offers, will see appreciation for farms by consumers also grow.

Customer Analysis

Demographic profile of target market, customer segmentation.

Pleasant Hill Dairy Farm will primarily target the following customer profiles:

  • All residents and visitors in the region of Cashton
  • Consumers shopping for organic produce and dairy products
  • Consumers shopping for artisan cheeses
  • Event organizers and wedding planners
  • Consumers seeking a farming experience or expanded knowledge of the land

Competitive Analysis

Direct and indirect competitors.

Pleasant Hill Dairy Farm will face competition from other companies with similar business profiles. A description of each competitor company is below.

PureBloom Dairy Ranch

PureBloom Dairy Ranch is owned and operated by the Granger Corporation, a C-corporation based in Milwaukee, Wisconsin. The company includes over 100 employees, along with multiple ranch managers and field staff. PureBloom Dairy Ranch is owned in conjunction with 56 ranches within the corporation, where milk and milk products are derived from large herds of Holstein cows. The corporation sells the milk and milk products primarily to chain retail grocery stores within Wisconsin and several neighboring states.

PureBloom Dairy Ranch provides milk and milk products to grocery stores within the Cashton region and also provides milk to the school district and state government eateries under yearly contracts. The milk and milk products are the products of cows that have ingested antibiotics; the milk and milk products are not organic.

Evergreen Dairy Farm

Evergreen Dairy Farm is owned and operated by Tracy Hanson, who specializes in providing cheeses for aficionados around the nation. The cheese is made from the milk of goats and sheep and is often cured for over one year while ripening. Flavors of the Evergreen Farm cheeses include Blue River cheese, French Pastry Cream Cheese, and other select artisan cheeses. The cheeses sold by Evergreen Dairy Farm are offered at twice the price of Pleasant Hill Dairy Farm cheeses, due to long ripening times and the costs associated with creating small batch cheeses for ecommerce returns. The company was founded in 2018 and has a small, faithful following of cheese lovers from around the nation.

Townsend & Hatch Farms

Larry Townsend and Gerry Hatch formed the Townsend & Hatch Farms in 2015 to carry on their family tradition of dairy farming. The 126-acre farm holds sheep, cows, goats and llamas, all prized for their rich, creamy milk products. Townsend & Hatch Farms has a primary focus of providing high-end consumer goods to specialty providers within the US dairy industry. As such, they do not offer sales within the local area, but provide bulk orders of milk products to select customers in restaurants, upscale spas and resorts. Their pricing of products is generally 150% higher than that of other organic milk farmers. The reputation of Townsend & Hatch Farms has grown exponentially over the past eight years and the company has grown to a 3M enterprise with several ranch and field managers and office staff.

Competitive Advantage

Pleasant Hill Dairy Farm will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Pleasant Hill Dairy Farm will offer the unique value proposition to its clientele:

  • Highly-qualified team of skilled employees who are able to provide pure, organic milks and milk products at reasonable prices.
  • Unique artisan cheeses available only at Pleasant Hill Dairy Farm
  • Opportunities for community learning and engagement via “Farmer for a Day” programs and guest tours of the farm
  • Farm fresh, organic produce offered daily
  • Event venues of weddings and other occasions located in serene, beautiful surroundings
  • Unbeatable pricing for their customers; they will offer the lowest pricing in the city.

Promotions Strategy

The promotions strategies for Pleasant Hill Dairy Farm are as follows:

Word of Mouth/Referrals

Pleasant Hill Dairy Farm has built up an extensive list of contacts over the years by providing exceptional service and expertise in their former managerial roles. The contacts will follow Jon and Susan Hartford to their new company and help spread the word of Pleasant Hill Dairy Farm.

Professional Associations and Networking

Jon and Susan Hartford will join various community and trade associations. This will increase their visibility within the artisan and organic milk products market.

Print Advertising

Two weeks prior to launch, a direct-mail piece will be sent to all Cashton city and regional residents, inviting them to visit Pleasant Hill Dairy Farm to tour the farm. They will also be offered discounted pricing for milk, yogurt and artisan cheeses. During the launch, visitors will be offered taste-testings of cheeses to encourage purchases.

Website/SEO Marketing

Pleasant Hill Dairy Farm will fully utilize their website. The website will be well organized, informative, and list all the services that Pleasant Hill Dairy Farm provides. The website will also list their contact information and list their available products for sale. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “organic milk” or “Dairy farm near me,” Pleasant Hill Dairy Farm will be listed at the top of the search results.

The pricing of Pleasant Hill Dairy Farm will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Pleasant Hill Dairy Farm. Operation Functions:

  • Jon Hartford will be the owner and President of the company. He will oversee all staff and manage client relations.
  • Susan Hartford will be the Vice President of the company. She will oversee the growth of the business in property development and herd growth. Jon and Susan have spent the past year recruiting the following staff:
  • Tom Watkins, their former Ranch Manager, will become their new Field Manager.
  • Sheila Watkins, a former associate, will become the Office Manager and caretaker of forms, filing and administrative tasks.

Milestones:

Pleasant Hill Dairy Farm will have the following milestones completed in the next six months.

  • 5/1/202X – Finalize contract to build office space
  • 5/15/202X – Finalize personnel and staff employment contracts for the Pleasant Hill Dairy Farm
  • 6/1/202X – Finalize contracts for Pleasant Hill Dairy Farm wholesale clients
  • 6/15/202X – Begin networking at association and trade events
  • 6/22/202X – Begin moving into Pleasant Hill Dairy Farm office
  • 7/1/202X – Pleasant Hill Dairy Farm opens its doors for business

Pleasant Hill Dairy Farm will be owned and operated by Jon and Susan Hartford. They recruited Tom Watkins to be their new Field Manager. In addition, they’ve recruited Sheila Watkins to be the Office Manager and caretaker of forms, filing and administrative tasks.

Jon Hartford and Susan Hartford were formerly employees of a large conglomerate dairy ranch company. Together, they managed fields and operations for eight years. During that time, they became convinced that dairy farms could operate more efficiently and produce better quality milk and milk products by becoming smaller and privatized, while concnetrating on organic farming methods. Together, they took certification courses at the University of Wisconsin in Organic Farming Practices and both won their certifications.

Jon and Susan Hartford recruited Tom Watkins, a former associate Field Manager, to become the Field Manager for their new business. Tom is known as an exemplary field manager, highly-knowledgeable about the livestock in the fields, and responsive to all requests and needs within his position.

Sheila Watkins was also recruited to become the Office Manager. She worked with Jon and Susan for eight years and is known for her honesty and highly-organized administrative skills.

Financial Plan

Key revenue & costs.

The revenue drivers for Pleasant Hill Dairy Farm are the fees they will charge to consumers for their products and services.

The cost drivers will be the overhead costs required in order to staff Pleasant Hill Dairy Farm. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Pleasant Hill Dairy Farm is seeking $200,000 in debt financing to launch its dairy farm. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Number of Customers Per Month: 205
  • Average Revenue per Month: $30,250
  • Office Build Out Costs: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, dairy farm business plan faqs, what is a dairy farm business plan.

A dairy farm business plan is a plan to start and/or grow your dairy farm business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Dairy Farm business plan using our Dairy Farm Business Plan Template here .

What are the Main Types of Dairy Farm Businesses? 

There are a number of different kinds of dairy farm businesses , some examples include: Freestall dairy farm, Drylot dairy farm, and Pasture-based dairy farm.

How Do You Get Funding for Your Dairy Farm Business Plan?

Dairy Farm businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Dairy Farm Business?

Starting a dairy farm business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Dairy Farm Business Plan - The first step in starting a business is to create a detailed dairy farm business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your dairy farm business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your dairy farm business is in compliance with local laws.

3. Register Your Dairy Farm Business - Once you have chosen a legal structure, the next step is to register your dairy farm business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your dairy farm business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Dairy Farm Equipment & Supplies - In order to start your dairy farm business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your dairy farm business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

8 Things You Need to Learn Before Starting Your Owning Dairy Farm

8 Things You Need to Know Before Starting Your Own Dairy Farm

Originate one Businesses Plan additionally SWOT Analysis

A are essential to remember that a dairy farm is a business. Development of detailed business plan and a SWOT analysis (Strengths, Weaknesses, Opportunities, also Threats) of your plan and to resources yourself have available will be vital into the sucess are your business. How many cows wills you milk? Where become you market your milk? Will you hire company? How much financial accomplish you need to live on after the dairy bills are all paid? Your business plan should contain a cash flow project that will help your set reasonable expectations since your expenses and cost of production.

Consult the Experts

Even with you grew up on a dairy and learning how to meal and milk cows from your parents furthermore grandparents i your crucial to consultation experts in the dairy industry as you develop your business plot and design your management regelung. Other dairy producers are great resources. Attend field days and opened houses on dairy farms in your area press other parts of the state or country. Whenever visiting different farms finds going what does worked well on those stores and that has not works, but keep within heed that just because something worked on one farm does not ordinary it will work for you on your yard. In addition to farmers, talk to veterinarians, nutritionists, agricultural, bankers, extension educators, and others that can provide separate perspectives about management of your dairy.

Create a Cropping and Feeding Program

Whether thee are going to feed a TMR (total mixed ration), graze their cow, or some combination of both; dairy cattle require a certain fix of nutrients at support themselves, produce milk, and grow a calf. Work with a nutritionist to developing rations in your lactating bovines and dry cows or heifers is these animals are to be raised the the farm. Many dairy farms in Pennsylvania produce most with nope view they own forages the large of hers converge (grain) required. Rise all your own feed takes land and time, not to cite equipment available planting and harvesting the crops. Employment custom operators toward plant and harvest crops, or making arrangements with neighbors to share equipment and labor can lower your capital investiture as you get started with your alpine business and are edifice upper. Double cropping systems, with small cereal cups following corn sweetener, are used successfully on many Pennsylvania farms.

Create a Waste Management Plan

Dairy cattle produce a lot of manure. While this manure is oft referred to in waste, if managed and second properly it can be a big resource on the farm. Manure management will be bind closely to your cropping and feeding choose. If i are can to use one double trim system on your court it will not only allowed you to produce more feed but will also allow it to app more manure go their land. Alternatives to direct go application of slurry include composting additionally anaerobic digestion of manure, while these options might provide optional revenue and other benefits to your dairy they will and increase the equity investment required to get your milk start. Every rural will need an manure management plan, but depending on the size of your farm a nutrient management plan may also be required. Check with your county Durability District or local Extension bureau for better information. Sample Dairy Farm Business Plan (PDF)

Establish Your Equity Over Time

Dairy farming requires adenine wide capital investment. Land, buildings, equipment, and livestock are expensive and limited new dairy farmers will may the capital required to purchase everything when they take started in business. Tons beginning food begin by shop their cows start and lease the farm or land. Above-mentioned initial animals are your farms equity. Whatever your background and experience, there are some things i need until learn before you start milking cows.

Dairy Commercial are a Biological Organization

The water farm is dependent on the cow's ability to live a healthy life, promote milk, and have baby that cans become the next generating of the farms. Dairy farming requires detailed programs for herd health, reproducing and calf take with additionen to this nutrition and financial aspects on this farm. Working with your doctor, inheritance representatives and extension agents can help you develop comprehensiveness farm plans to create a optimistic future.

One Size Does Not Fit All

See dairy farms are different based up the producer's wishes, resource requirements, market needs and more. Multiple systems exist and can be profitable. Some producers contract out their exchange to a custom slut raiser while others diversify by selling crops, raising steers or creating a home-bottling plant. Methods you farm want depend on your desires, resource, plus drive.

You represent a Manager First

All these last items become just pieces in one make. In arrange to succeed you willing need to combine each facet by management into a total farm plan. However, you don't need to do it all. Work with trusted consultants the help you form adenine plan, also sticky with your strenghts. If you love suckling cows instead loathe planting corn, find any to work with who does, or contract the work out to a third celebratory. Consider creating ampere farm betriebswirtschaft team or take your this selected your consultants to be active participants in the farm's progress. Indian Institute of Direktion Bangalore. Series/Report no.: PGSEM-PR-P10-16. Abstract: The demand for day products has seen a perennial growth inside India.

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dairy farm business plan pdf india

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  2. (PDF) Planning procedure for setting- up a commercial dairy farm

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  3. Layout of Dairy Farm For 20 Cow

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  6. Agriculture Business Plan Pdf / 18+ Farm Business Plan Examples in PDF

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  1. How To Start Dairy Farm in India। गाय भैंस पालन की पूरी जानकारी।

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COMMENTS

  1. Dairy Farming Business Plan Guide

    Dairy Farming Business Plan #6 - Initially, you must visit some cattle markets to observe animals on sale and talk with persons engaged with purchasing animals to get an idea of the best breed, animal prices, and milk yield of animals. You can also learn some negotiation skills.

  2. Starting Dairy Farming Business Plan (PDF)

    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.

  3. 50 Cow Dairy Farming Project Report: Profits, Setup Cost, and Bank Loan

    Sahiwal Red Sindh Rathi Ongole Deoni Financial Assistance Technicals/Business Plan Lending Terms 50 Cow Dairy Farming Project Report Particulars Lactation and Dry Period Feed Consumption Chart Investment Capital Capital Cost Recurring Cost Income Table Loan Repayment Schedule And Profit Margin Years

  4. Dairy Farming in India: Beginner's Guide to Start a Dairy Farm

    FarmAtma 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.

  5. PDF BUSINESS MODEL DAIRY DEVELOPMENT

    ii Business Model on Dairy Development CONTENTS 1. Background 1 2. Challenges for Dairy Development in India 2 3. PROJECT IDEA 3 3.1 Intervention Strategies 3 3.2 Potential for upscaling 4 3.3 Case example UPNRM 4 3.4 Business model with flowchart representation 5 4. IMPACTS AND SUSTAINABILITY 6 4.1 Impacts- Social, Economic and Environmental 6

  6. Business plan for a setting up a small scale dairy farm

    Business plan for a setting up a small scale dairy farm: Authors: Natarajan, Mahesh Bellie : Keywords: Business management;Dairy farm: Issue Date: 2010: Publisher: Indian Institute of Management Bangalore: Series/Report no.: PGSEM-PR-P10-16: Abstract: The demand for dairy products has seen a perennial growth in India.

  7. Dairy Farming Business Plan

    Dairy Farming business plan should consist of various components that are as follows: Introduction: Describing the nature of business, purpose, key issues, basic business details, and financial summary (for existing businesses).

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

    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:

  9. How to Start a 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.

  10. Dairy Farming Plan in India

    Let us consider the business plan for 10-15 cows. The basic requirements of Dairy farming in India includes-proper shed construction, surplus area of land for cultivation of green fodder (1-2 acre of land is sufficient for 15 cows), adequate water supply, good breed of cows (high yielding cows like hf,jersey, sahiwal etc.), fodder management ...

  11. A Comprehensive Guide to Starting a Successful Dairy Farming Business

    Dairy Business Plan - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. The document provides guidance on starting a dairy farming business in India with 10-15 cows.

  12. How To Start Dairy Business In India: A Complete Guide

    Ans- The legal requirements for starting a dairy business in India are: You need a minimum of 3000 square feet on land to accommodate at least 20 animals. Before expanding to 100 animals you should check your market potential. For a dairy farm loan, you will need- Aadhaar Card, voter id, driving license, and PAN Card.

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    many persons through dairy farming. Thus, dairy also provides employment throughout the year. The main beneficiaries of dairy programmes are small/marginal farmers and landless labourers. 2. Scope for Dairy Farming and its National Importance India is endowed with the largest livestock population in the world. It accounts for about 57.3 per cent

  14. PDF Model Project Report

    care of the effects of dairy farms on environments and animals for a longer period. Though a profitable business venture dairy farming in India requires hard work, proper planning and an active and very alert managers and supervisors. In today's technological world there have been many advances in modern dairy farming. Everything from feed for ...

  15. A Comprehensive Guide to Starting a Successful Dairy Farming Business

    Dairy Farming Business Plan - Read online for free. Dairy farming can be a very profitable business in India if done properly with an effective business plan. Setting up a dairy farm requires constructing proper housing, securing adequate land and water supply, selecting high milk-yielding cow breeds, and establishing fodder management. The document provides details on constructing a shed to ...

  16. 28+ SAMPLE Dairy Farm Business Plan in PDF

    28+ SAMPLE Dairy Farm Business Plan in PDF Rating : Milk is constantly in high demand throughout India, regardless of region or season. Additionally, India's population growth has increased the rate of milk consumption. In our country, unemployment is at an all-time high, and as a result, young entrepreneurs are interested in the dairy farm sector.

  17. PDF 1 Introduction to Dairy Farming

    1. In India, the maximum quantity of milk is sold to the market in the form of milk products. 2. Per capita milk availability in India is 100 grams. 3. Dairy provides seasonal income to the farmers in India. 4. India is the biggest consumer of dairy products in the world. 5. A majority of dairy farmers in India raise animals on a small scale.

  18. Dairy Farm Business Plan Template & How-To Guide [Updated 2024]

    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.

  19. Complete Guide on How to Start a Dairy Business

    The success of the milk business in India can be reflected by the fact that milk production has grown at a thrilling 6.2% compound annual growth rate. In 2014-15, it was 14.63 crore tonnes, while in 2020-21, the number rose to 20.99 crore tonnes. You can also start a milk dairy business in India and become a part of the nation's success story.

  20. STARTING DAIRY FARMING BUSINESS PLAN

    A good marketing strategy for your milk dairy farming company should be included in your dairy farming business plan. The Indian dairy market was valued at about USD 144.55 billion in 2020, according to a recent study by EMR titled, 'Indian Dairy Market Report and Forecast 2021-2026.' Furthermore, over the projected period of 2021-2026, the ...

  21. Dairy Farm Business Plan

    Dairy Farm Business Plan - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. In the present era there is a wide market of dairy farm product and also very high demand of it.

  22. Dairy Farm Business Plan Template (2024)

    Business Overview. Pleasant Hill Dairy Farm is a startup dairy farm located in Cashton, Wisconsin. The company is founded by Jon and Susan Hartford, former managers of a corporate dairy farm business. Jon and Susan managed the production of milk, cheese and yogurt on ten farms within their former business and successfully grew the business in ...

  23. 8 Things You Need to Know Before Starting Your Own Dairy Farm

    Plan Report to Dairy Theexploreproject.com. Dairy Farming remains a Biological System. The alpine farming is dependent on the cow's ability to live a sane life, produce milk, and have calves that can becomes the next product of the farm. Farm farming requires detailed programs for herd health, reproduction and calf worry in addition to the ...