Dairy Farming Business Plan
Dairy Farming Business Plan is developing an overall aim and mission for a dairy farming business to make its management easy and quick.
Updated: June 1, 2024
Dairy Farming Business Plan:
Dairy Farming Business Plan is developing an overall aim and mission for a dairy farming business to make its management easy and quick.
A dairy farming business plan helps in procuring grants, subsidies, or even business loans for doing business. Entrepreneurs should set short and long term targets for at least five years with the help of a written dairy farming business plan. It is an 'All Season' business that has always been a lucrative idea for numerous business owners, as there will be never ending demand for milk regardless of the location and season.
Production of milk is involved in dairy farming, which is prepared either on the farm or at a dairy plant for sale of a dairy product. Marketing cost is much lesser, as compared to the investment required in animal husbandry since a dairy farming business is of high demand.
Creating Dairy Farming Business Plan:
A business plan for a dairy farm is generally created by identifying the current market trends, target areas, dairy loan requirements, etc.. The goal of a dairy farming business plan is to serve customers, conduct thorough research by understanding the geography, average income, culture, household types, etc.
The type of dairy animals such as cows, buffaloes, etc., number of animals and blueprint regarding facilities like breeding, milking, housing, cleaning, etc. are the factors that you should keep in mind while creating a dairy farming business plan.Dairy Farming Business Plan:
Dairy Farming business plan consist of the below components:
Introduction:
A Dairy Business plan consists of the introduction which outlines the nature of the business, its scope and objectives, the principal problems and the financial summary for existing businesses.The financial summary should have the basic data information related to consolidated gross revenue and net worth, cash flow, net farm income, current ratio, working capital, etc.
Mission Statement:
The goals of the dairy business like producing the best quality milk or products or providing customer satisfaction by giving value for money should be the mission, vision and objectives of the company. The way to provide dairy products at an affordable or best prices for its customers or produce the best quality milk should be included in the mission statement.
Farm Location and History:
Information related to the proposed farm location with a specified area, city, and state should be included in the dairy farming business plan. Details of acres owned or rented with lease terms should be mentioned in the plan.
Cattle and Farm Machinery/Equipment:
Information on the total number of cattle to be used in the dairy farming business and the number and types of machinery and equipment purchased with names and bills should be included in the dairy farming business plan.
Proposed Business Ideas and Marketing Strategies:
All the information regarding various commercials, business proposals, marketing strategies, brand campaigns, new ventures to be undertaken etc. should be included in the dairy farming business plan.
Implementation Plan Summary:
A dairy farming business plan should include plans for implementing new and improved management practices, along with estimated timelines for completion.The business plan should also include forecasts or projections of goals for the next five years, with annual analysis and practical information. It should provide necessary details about permits and licenses required to start the dairy farming business.
Requirements of Dairy Farming Business Plan:
The components of Dairy Farming to be used or installed before and after starting your own business are:
Land:
- Cultivated areas or land for growing fodder crops for cattle should be maintained by farm owners for producing fodder yields for the cattle.
- The size of land area basically depends on the number of cattle to be kept. Usually, one acre of land is sufficient to feed around 7 to 10 cows
Breed Selection and Vaccination:
- There should be good cow breed selection to yield more milk.
- A breed that yields more milk and can give momentum to the dairy farming business should be carefully selected.
- The dairy cow/cattle breed that meets the requirements of climatic conditions as well as high milking capacity must be selected.
- Gir, Red Sindhi, Ongole, Sahiwal, and others are some well known milk yielding cows.
- Jersey with Red Sindhi or Jersey with Sahiwal as well as a crossbreed of Holstein Frisian with Indian Sahiwal is in high demand due to its good milk production capability.
- A proper vaccination schedule needs to be followed for disease control of cattle and to protect their health.
- Hiring a veterinary doctor will be a great idea as routine checkups as well as proper medication for cows can be ensured.
- Foot and Mouth Diseases, Theileriosis, Rabies, Brucella, Anthrax, Hemorrhagic Septicemia, and other diseases are monitored under the vaccination program.
Water and Fodder:
- Both of these are to be kept in abundance, as water is required for the growth of green fodder and and fodder further helps in the proper nourishment of cattle.
- The production of daily milk of a cow depends on the type of fodder as well as the nutritional facts associated with the available fodder.
- One kg of concentrate and mineral mixture should be given to high-yielding cows to obtain 2.5 litres of milk produce.
- The cow must be given around 6 kg of concentrate along with a mineral mixture if he yields 15 litres of milk on a regular basis.
- Green Fodder, Dry Fodder and Concentrate & Mineral Mixture are three types of fodder hat can be provided under Dairy Fodder Management Practice.
- All the leguminous crops such as any gram crop, masoor, berseem, corn/maize, as well as hybrid grass such as CO-3 & CO-4, nipper grass, and more are enriched with protein supplements and belongs to the green fodder family.
- These green fodder crops can be used to prepare silage which is considered highly nutritious, and milk yield is likely to increase.
- Choker (wheat bran), kutti(rice/paddy straw), and wheat hay comes under Dry Fodder.
- Concentrate feed and a mineral mixture should also be given on a daily basis so that cows won’t have to suffer due to deficiency of minerals
- All three types o fodder must be given in an appropriate proportion for adequate milk yield.
- The clean water supply with respect to drinking & cleaning purposes of the shed is a must requirement.
- Arrangements can be carried out by providing overhead tank.
Shed:
- Shed is a covered area in the farmland to be built before taking in cattle as this is where the cattle are to be kept.
- Proper ventilation, as well as a spacious shed, is needed for dairy farming in order to maintain the cattle health.
- Hygienic conditions can be ensured for cattle with a proper shed.
- The size of the area, and things depend on the size of the cow.
- Cow feeders must be built in between with a wall of separation so that the cows can be fed in a Head to Head arrangement. Cows get fed from both sides facing head to head each other in this arrangement.
- The roof of dairy shed must be constructed with asbestos sheets to provide protection against sun and the floor must be made of either bricks or cement with sufficient inclination to have a proper drainage for cattle urine and excrete.
- The shed must be cleaned daily in order to maintain a hygienic state.
- Care must be taken at the time of construction of the shed.
- Any form of water stagnation surrounding the shed can be prevented by an elevated location.
- Proper ventilation (air and sunlight) is also delivered with an elevated location.
Labour:
- The labour must have expertise in handling the activities related to the farm. This also requires growing green fodder in the dairy farming business.
- At least one to two days of training can be provided to the chosen labour so that they can get informed about the routine activities taking place at dairy farms.
Management of Cow and Calves under Dairy Farming Business Plan:
- Artificial insemination, also known as mating of cows must be carried out after the time frame of every 3 months of calving.
- It takes around 3 years to reach the phase of maturity for Indian cattle breeds whereas the time frame of 16 to 18 months is enough for HF cows or high yield jersey crossbreed to reach the phase of maturity, and they will be prepared for mating.
- Generally, cow must be calving for every 13 months.
- The service period must be 90 to 120 day and the period of lactation associated with cows is 300 days.
- The gestation period is of 266 days.
- More care and attention is required in the case of pregnant cows as they need more nutrition during this stage.
- Cows must receive proper concentrate as well as a mineral mixture in the gestation period.
- The feed intake must be increased with each passing day in order to ensure proper growth and development of calves as well as their udder.
NABARD Subsidy:
- You can get 33 percent subsidy on loans up to Rs. 7 Lakh to open Dairy Farm.
- Farmers will be benefited from getting subsidies on dairy farming loans through approved and eligible banks and NBFCs as the National Bank for Agriculture and Rural Development (NABARD) initiated a subsidy scheme under Dairy Entrepreneurship Development Scheme (DEDS).
- Farmers can avail of 33.33 percent subsidy of total project cost on dairy farming loans up to Rs. 7 lakh from the approved Regional Rural Banks (RRBs), or commercial and co-operative banks.
- Subsidy and loan-related all the necessary information can be availed by visiting the nearest bank or NBFC.
Legal Requirement to Start Dairy Farming Business:
- Legal requirement to start a dairy farming business varies across states depending on whether the business intends to process milk or manufacture products.
- The first point of contact is the local area veterinary and dairy development department for a normal individual dairy farm.
- There is no need to contact other government authority if your farm is a registered dairy co-operative society as license is provided from veterinary or related officers of municipality, corporation, or local panchayat.
- Permission may be required from the pollution control board if it is a large farm.
- The standards are BIS (BUREAU OF INDIAN STANDARDS) that include BIS IS 11942:1986 (R2002) for Gaushalas, BIS IS 11799:1986 (R2002) for Cattle Housing In Rural Areas, and Other Organized Milk Producers and BIS IS 12237:1987 (Reaffirmed 2004) for a loose housing system for animals.
Starting a Dairy Farming Business:
You need to consider the following factors to start a Dairy Farming Business:
Select Location:
- A major factor in deciding the location is cost-effectiveness as you would need a business loan to set up a new dairy farm.
- The market is assured, and transportation costs are minimal if you plan to choose a location near cities. Also, high profits can be generated with high prices of dairy products in cities.
- Less labor and input costs and a vast area for breeding and fodder cultivation can be offered by choosing a rural area.
Plan investment:
- Your investments will depend upon every facility and asset of your dairy farm.
- Getting a dairy loan is a wise investment to a thriving dairy business.
- Dairy loans are provided by various companies to small businesses.
- A dairy loan of the required amount can be availed in a short span of time, with a reasonable interest rate and time.
Legal compliance and registration:
- Getting a MSME registration is a mandatory step.
- You need to obtain Dairy farm license, FSSAI license, Shed license, Company registration license and Trade license with fixed charges by the government.
- You must stay updated with details and requirements for MSME loans to avoid last-minute hassles and discrepancies for small business.
Purchasing assets:
- The dairy loan can be utilized to purchase the required assets and good breed animals for your dairy farm.
- Milking machines, pasteurizers, homogenizers, storage tanks, etc. are the must required equipment.
Adequate infrastructure:
- The production and quality for both animals and employees can be enhanced by a dairy farm equipped with adequate facilities which eventually generate huge profits
- You need to invest on Cattle shed, Supporting structures like milking section, feed storage, housing room, manure pits, etc., Water facilities like tanks and bore-wells, Good roadways and Office
Branding and marketing:
- You needs to have a name and recognition or your well-established dairy farm to make its way in the market.
- You can market your brand through various offline and online platforms.
- Brand campaigns of the quality of milk, variety of products available, social media marketing, commercials, new ventures, and business proposals are potential marketing strategies.
Dairy Farming Business Plan is developing an overall aim and mission for a dairy farming business to make its management easy and quick.
A dairy farming business plan helps in procuring grants, subsidies, or even business loans for doing business. Entrepreneurs should set short and long term targets for at least five years with the help of a written dairy farming business plan. It is an 'All Season' business that has always been a lucrative idea for numerous business owners, as there will be never ending demand for milk regardless of the location and season.
Production of milk is involved in dairy farming, which is prepared either on the farm or at a dairy plant for sale of a dairy product. Marketing cost is much lesser, as compared to the investment required in animal husbandry since a dairy farming business is of high demand.
A business plan for a dairy farm is generally created by identifying the current market trends, target areas, dairy loan requirements, etc.. The goal of a dairy farming business plan is to serve customers, conduct thorough research by understanding the geography, average income, culture, household types, etc.
The type of dairy animals such as cows, buffaloes, etc., number of animals and blueprint regarding facilities like breeding, milking, housing, cleaning, etc. are the factors that you should keep in mind while creating a dairy farming business plan.
A Dairy Business plan consists of the introduction which outlines the nature of the business, its scope and objectives, the principal problems and the financial summary for existing businesses.The financial summary should have the basic data information related to consolidated gross revenue and net worth, cash flow, net farm income, current ratio, working capital, etc.
A dairy farming business plan should include plans for implementing new and improved management practices, along with estimated timelines for completion.The business plan should also include forecasts or projections of goals for the next five years, with annual analysis and practical information. It should provide necessary details about permits and licenses required to start the dairy farming business.
- Cultivated areas or land for growing fodder crops for cattle should be maintained by farm owners for producing fodder yields for the cattle.
- The size of land area basically depends on the number of cattle to be kept. Usually, one acre of land is sufficient to feed around 7 to 10 cows
- There should be good cow breed selection to yield more milk.
- A breed that yields more milk and can give momentum to the dairy farming business should be carefully selected.
- The dairy cow/cattle breed that meets the requirements of climatic conditions as well as high milking capacity must be selected.
- Gir, Red Sindhi, Ongole, Sahiwal, and others are some well known milk yielding cows.
- Jersey with Red Sindhi or Jersey with Sahiwal as well as a crossbreed of Holstein Frisian with Indian Sahiwal is in high demand due to its good milk production capability.
- A proper vaccination schedule needs to be followed for disease control of cattle and to protect their health.
- Hiring a veterinary doctor will be a great idea as routine checkups as well as proper medication for cows can be ensured.
- Foot and Mouth Diseases, Theileriosis, Rabies, Brucella, Anthrax, Hemorrhagic Septicemia, and other diseases are monitored under the vaccination program.
- Both of these are to be kept in abundance, as water is required for the growth of green fodder and and fodder further helps in the proper nourishment of cattle.
- The production of daily milk of a cow depends on the type of fodder as well as the nutritional facts associated with the available fodder.
- One kg of concentrate and mineral mixture should be given to high-yielding cows to obtain 2.5 litres of milk produce.
- The cow must be given around 6 kg of concentrate along with a mineral mixture if he yields 15 litres of milk on a regular basis.
- Green Fodder, Dry Fodder and Concentrate & Mineral Mixture are three types of fodder hat can be provided under Dairy Fodder Management Practice.
- All the leguminous crops such as any gram crop, masoor, berseem, corn/maize, as well as hybrid grass such as CO-3 & CO-4, nipper grass, and more are enriched with protein supplements and belongs to the green fodder family.
- These green fodder crops can be used to prepare silage which is considered highly nutritious, and milk yield is likely to increase.
- Choker (wheat bran), kutti(rice/paddy straw), and wheat hay comes under Dry Fodder.
- Concentrate feed and a mineral mixture should also be given on a daily basis so that cows won’t have to suffer due to deficiency of minerals
- All three types o fodder must be given in an appropriate proportion for adequate milk yield.
- The clean water supply with respect to drinking & cleaning purposes of the shed is a must requirement.
- Arrangements can be carried out by providing overhead tank.
- Shed is a covered area in the farmland to be built before taking in cattle as this is where the cattle are to be kept.
- Proper ventilation, as well as a spacious shed, is needed for dairy farming in order to maintain the cattle health.
- Hygienic conditions can be ensured for cattle with a proper shed.
- The size of the area, and things depend on the size of the cow.
- Cow feeders must be built in between with a wall of separation so that the cows can be fed in a Head to Head arrangement. Cows get fed from both sides facing head to head each other in this arrangement.
- The roof of dairy shed must be constructed with asbestos sheets to provide protection against sun and the floor must be made of either bricks or cement with sufficient inclination to have a proper drainage for cattle urine and excrete.
- The shed must be cleaned daily in order to maintain a hygienic state.
- Care must be taken at the time of construction of the shed.
- Any form of water stagnation surrounding the shed can be prevented by an elevated location.
- Proper ventilation (air and sunlight) is also delivered with an elevated location.
- The labour must have expertise in handling the activities related to the farm. This also requires growing green fodder in the dairy farming business.
- At least one to two days of training can be provided to the chosen labour so that they can get informed about the routine activities taking place at dairy farms.
- Artificial insemination, also known as mating of cows must be carried out after the time frame of every 3 months of calving.
- It takes around 3 years to reach the phase of maturity for Indian cattle breeds whereas the time frame of 16 to 18 months is enough for HF cows or high yield jersey crossbreed to reach the phase of maturity, and they will be prepared for mating.
- Generally, cow must be calving for every 13 months.
- The service period must be 90 to 120 day and the period of lactation associated with cows is 300 days.
- The gestation period is of 266 days.
- More care and attention is required in the case of pregnant cows as they need more nutrition during this stage.
- Cows must receive proper concentrate as well as a mineral mixture in the gestation period.
- The feed intake must be increased with each passing day in order to ensure proper growth and development of calves as well as their udder.
- You can get 33 percent subsidy on loans up to Rs. 7 Lakh to open Dairy Farm.
- Farmers will be benefited from getting subsidies on dairy farming loans through approved and eligible banks and NBFCs as the National Bank for Agriculture and Rural Development (NABARD) initiated a subsidy scheme under Dairy Entrepreneurship Development Scheme (DEDS).
- Farmers can avail of 33.33 percent subsidy of total project cost on dairy farming loans up to Rs. 7 lakh from the approved Regional Rural Banks (RRBs), or commercial and co-operative banks.
- Subsidy and loan-related all the necessary information can be availed by visiting the nearest bank or NBFC.
- Legal requirement to start a dairy farming business varies across states depending on whether the business intends to process milk or manufacture products.
- The first point of contact is the local area veterinary and dairy development department for a normal individual dairy farm.
- There is no need to contact other government authority if your farm is a registered dairy co-operative society as license is provided from veterinary or related officers of municipality, corporation, or local panchayat.
- Permission may be required from the pollution control board if it is a large farm.
- The standards are BIS (BUREAU OF INDIAN STANDARDS) that include BIS IS 11942:1986 (R2002) for Gaushalas, BIS IS 11799:1986 (R2002) for Cattle Housing In Rural Areas, and Other Organized Milk Producers and BIS IS 12237:1987 (Reaffirmed 2004) for a loose housing system for animals.
- A major factor in deciding the location is cost-effectiveness as you would need a business loan to set up a new dairy farm.
- The market is assured, and transportation costs are minimal if you plan to choose a location near cities. Also, high profits can be generated with high prices of dairy products in cities.
- Less labor and input costs and a vast area for breeding and fodder cultivation can be offered by choosing a rural area.
- Your investments will depend upon every facility and asset of your dairy farm.
- Getting a dairy loan is a wise investment to a thriving dairy business.
- Dairy loans are provided by various companies to small businesses.
- A dairy loan of the required amount can be availed in a short span of time, with a reasonable interest rate and time.
- Getting a MSME registration is a mandatory step.
- You need to obtain Dairy farm license, FSSAI license, Shed license, Company registration license and Trade license with fixed charges by the government.
- You must stay updated with details and requirements for MSME loans to avoid last-minute hassles and discrepancies for small business.
- The dairy loan can be utilized to purchase the required assets and good breed animals for your dairy farm.
- Milking machines, pasteurizers, homogenizers, storage tanks, etc. are the must required equipment.
- The production and quality for both animals and employees can be enhanced by a dairy farm equipped with adequate facilities which eventually generate huge profits
- You need to invest on Cattle shed, Supporting structures like milking section, feed storage, housing room, manure pits, etc., Water facilities like tanks and bore-wells, Good roadways and Office
- You needs to have a name and recognition or your well-established dairy farm to make its way in the market.
- You can market your brand through various offline and online platforms.
- Brand campaigns of the quality of milk, variety of products available, social media marketing, commercials, new ventures, and business proposals are potential marketing strategies.