DAIRY FARMING BUSINESS

STARTUP PLAN
NAME :- RAJ SINGH ROLL.NO :- 19020A03030

1. Dairy farming business plan :- 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.

2. Field of business and target market :

☐ a. Dairying, also called dairy farming, branch of agriculture that encompasses the
breeding, raising, and utilization of dairy animals, primarily cows, for the
production of milk and the various dairy products processed form it.
b. There are only two supplier in my city who supply milk.

MilkDairy
factory

Fig.1 Market Capture

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STARTUP PLAN

M a rk e t
T a rg e t
Consumers
20%
Household
40%

Shops 40%

3. demand-supply :
 However as a beginner, you should definitely get some professional training
from agriculture universities or training center of the animal husbandry
department or any private training dairy consultancies.
 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.
 Read any dairy magazines, online dairy blogs and youtube videos to get an
overall idea of farming.
 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.
 As feed or fodder is the main component of dairy farming that directly impact
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.
 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, animals prices, and milk yield of animals. You can also learn some
negotiation skills.

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STARTUP PLAN

 You should learn good labour management skills.

Requirement Of Dairy Farming

:- There are some component 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 numbers of animals. Usually, 2acers
of land is sufficient to feed about 15 cows.
 Shed – There must be a proper and covered secured sheds in place before getting
cows into your farm.
 Water – Clean and abundant water facility is required for both cattle and 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
dairy basis. Dry fodder, green fodder, and feed concentrate 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 yield cows such as “Jersy”,”Red Sindhi”,”Holstein
Friesian”,”Sahiwal”,”gir”,”deoni” and “ongole” etc.
 Labour – Labour is a major task in dairy farming, the selected labour should be very
good at handing 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.
 Vaccination – 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
checkup and medication of cows.

Demand & Supply

☐ 1. Organize a marketing group
If you have only a few animals giving milk at any one time, you will have only a small
surplus to sell. Dairies and retailers, on the other hand, require a reliable daily supply
of milk, in a sufficient quantity and of a reliable quality. Thus, organizing a marketing
group may be a good idea
☐ 2. Set up a milk-collection point
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It is costly and time-consuming for a dairy to pick up small amounts of milk from
scattered locations. Setting up a collection centre will encourage traders or dairies to
buy your milk and get you higher prices.
☐ 3. Start a small processing plant
A small-scale processing plant nearby can buy your milk and create jobs for the
community. It can serve local consumers or supply a larger dairy in town. It can be
run only in the wet season when there is enough milk available for processing. It can
pasteurise and package milk and turn it into yoghurt, ghee, and other products.
☐ 4. Improve feeding in the dry season
The amount of milk delivered to dairies varies hugely from season to season, as
pastoralists move their animals around, and production rises and falls along with the
growth of grass. That makes it difficult to keep dairies running at capacity, harming
their profitability and viability – and their ability to keep buying milk

☐ 5. Improve animal health care

Healthy, well-fed animals produce more milk than those that are thin and ill. And
certain diseases, such as tuberculosis, brucellosis and mastitis, can also affect the
quality and safety of the milk. However, many drugs on sale in the drylands are
expired or fake.
☐ 6. Improve hygiene
Milk can be contaminated in various ways: through dirty hands and teats, unhygienic
milking containers, plastic jerry cans, and deliberate dilution. Bacteria can multiply
rapidly in warm milk and in hot weather.
☐ 7. Deliver it quickly
Milk is highly perishable, especially in a hot climate. So speed is everything: the milk
has to get from udder to dairy (and to the retailer) as fast as possible before
☐ 8. Give women a bigger role
Producing, handling and selling milk is often a woman’s job. But women often have
little say in pastoralist societies. In some societies they are excluded from big
decisions, are not allowed to travel alone, and find it hard to get information. If
women play a bigger role in marketing, it can benefit the whole family and the
economy as a whole. To ensure a more important role for women in the marketing
process

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STARTUP PLAN

Capital Required For dairy farm

According to the market analysis, The cost of setting up a small-cap dairy business in india is
usually around Rs.10-20 lakhs, while it exceeds Rs. 1 crore in the case of large-scale
business. This capital dependent on the size of your dairy farm and facilities you wish to
provide.