Dairy Farming business plan: An Overview:
In India, no matter what season it is or where it is, “there is still a great demand for milk.” As the world’s population grows, so does the demand for milk, which is skyrocketing. so let’s see how to start a milk dairy business in India?
In recent years, the number of people planning to start a dairy farm has nearly doubled due to increasing unemployment.
Milk dairy business in India is projected to increase at a rate of 3 to 4% per year. Many people are interested in starting a small or large-scale dairy farming operation.
We recommend that you should not join the dairy industry unless you are willing to devote your time and resources 24 hours a day, seven days a week for your dairy business plan in India
how to start a dairy business?
You don’t have to start a dairy farm on a commercial scale; you can start small and develop it into a big operation once you understand the ins and outs of dairy farming.
Since 1998, India has become the world’s leading manufacturer and buyer of dairy products, with a steady increase in the availability of milk and milk products.
Dairy farming is a vital part of the rural Indian economy, providing both jobs and revenue.
India also has the world’s largest bovine population. However, as compared to other global dairy producers, milk yield per animal is slightly lower.
Furthermore, almost all of India’s dairy products are purchased domestically, with fluid milk accounting for the bulk of sales.
As a result, the Indian dairy industry has enormous potential for value addition and overall development.
How to start a milk dairy business in India? A step by step process.
How to start a small dairy business? Let’s see
Step 1): As a beginner, however, you can seek advanced instruction from Agriculture Universities, Animal Husbandry Department Training Centres, Krishi Vigyan Kendras, or some private training dairy consultancies.
Step 2): Visit local dairy farms and speak with the managers to get a sense of how the farm is run. Still inquire about their “issues” and how they are dealing with them.
Step 3): Visit your nearest agriculture/co-operative banks for more details if you don’t have any money and want to get a subsidy and loan for your dairy farm.
Step 4): Since feed or fodder is the most important aspect of dairy farming and has a significant effect on income, you must be well-versed in green fodder cultivation and silage-making procedures.
You should research the feed and fodder markets in your area to find a viable and cost-effective fodder solution.
Step 5): To begin, go to some cattle markets and observe animals for sale, as well as speak with people who are buying animals, to get a sense of the right breed, animal prices, and milk yield of animals.
You should also develop your negotiating abilities.
Step 6): NABARD (National Bank For Agriculture & Rural Development) is assisting farmers by providing subsidies on dairy business plan in India.
And dairy farming loans through approved banks in order to promote the rural agriculture sector and increase milk production in line with demand.
You will get this by going to the local private, cooperative, or rural agriculture bank. Under good dairy management methods, one can make a reasonable living from dairy farming.
Let’s take a closer look at the “Dairy Farming Business Plan” in the following paragraphs.
How to Write a dairy farming business plan?
Let’s take a look at what Strategy entails for dairy business plan in India.
The first section is the overview of the milk dairy business in India.
It will describes the essence of the company, its scope and aims, as well as the major issues and financial review.
The company’s mission, vision, and priorities include dairy sector goals such as delivering the highest quality milk or goods or ensuring consumer loyalty by providing value for money.
Information about the company’s location and history: It usually contains information about the company’s location in a specific area.
Details about the location should be included, whether it is bought, rented, or leased.
Marketing Strategy of the dairy industry– The plan requires to include every knowledge about various business proposals, marketing activities, advertisements.
New investments to be undertaken and specifics of promotions of the company.
Execution of the Plan– Which should include business plans for its execution and management, as well as estimated completion dates.
Forecast of priorities for the next five years, including annual analysis, realistic information, and a list of all permits and licences needed to start this company.
Things that no one wants to tell you about starting a dairy farm business in India.
1) breed: Before you pick a breed, it’s critical to understand the preferences and traditions of the market or city where you want to start your dairy farm.
There are various best cow breed for dairy business in India.
Like a Indian buffalo breeds, such as Murrah, Surti, and Jaffarabadi, as well as common cow breeds, such as Gir, Sahiwal, Red Sindhi, and Tharpakar.
For meat processing, Western breeds such as Holstein Fresian, Brown Swiss, and Jersey are often used. Milk from Indian cow breeds contains A2 beta-casein protein, which is second only mother’s milk in terms of quality.
When compared to western breeds, Indian breeds yield considerably less milk, which will determine the price of your product.
2) Quality of breed: Before purchasing beef, attempt to milk the animals three times.
The average milk production of a buffalo should be 12 liters, and the average milk production of a cow should be 16-17 liters.
To ensure a consistent supply of milk, do not purchase all cattle at once; instead, purchase at two-month intervals.
3) Shed: The shed of a milk-producing animal should not be a pigeonhole in the middle of town. It should be well ventilated, with non-slippery floors.
The shed should be at least 900 square meters away from the roadside and not located in low-lying areas, since water would fill certain areas first during heavy rains.
Per animal, a minimum of 40-80 square feet of open space is needed.
4) Nutritious fodder: The value of providing your cattle with safe drinking water cannot be overstated in dairy farm business in India.
A milk-producing animal needs more safe drinking water than any other animal.
5 liters of clean and fresh water are needed to produce 1 liter of fresh milk from cattle.
When it comes to grass, always have plenty of green fodder for cattle.
People usually buy fodder during the peak seasons of Rakshbandhan to Baisakhi.
Because the weather during those months favors the growth of green grasses, so there is plenty of green fodder.
Green fodder aids in the production of more milk while still saving the owner money on feed.
The best types of green fodder for cattle are Timothy, Clover, and Alfalfa.
5) Keep them well and fit.
To ensure easy access and affordability, a veterinary doctor should be located near to the property.
Ensure that the cattle are vaccinated on a regular basis by a veterinary veterinarian.
Leave them untied in a shed to keep them fit since they can bloat less if they can move about easily.
If the dairy farm has more than 100 cows or buffaloes, appointing a veterinarian on the farm is strongly recommended.
A proper vaccination schedule is needed to monitor diseases and protect cow health.
You should employ a veterinary doctor for regular checkups and medication of cows for this reason. See the vaccine schedule table.
These are the most important things while starting a dairy business plan.
Shed construction for dairy business
Dairy farming necessitates a well-ventilated and spacious shed. For the health of the animals, sanitary conditions in the shed are important.
When it comes to room, one cow can have an area of 8 feet by 12 feet. As a result, the total area needed for 15 cows is approximately 120 feet x 12 feet.
This region, however, is not set and is dependent on the size of the cow.
Cow feeders can be built in the middle of a dividing wall so that the cows can be fed on both sides, facing each other head to head; this is known as a “Head to Head setup.”
Construction of the dairy shed should be done with caution.
The chosen position should be raised to avoid water stagnation around the shed to provide adequate ventilation (sunlight and air).
The roof of the dairy shed should be made of asbestos tiles, and the floor should be made of bricks or cement with a sufficient incline.
This will help cattle urine and excrement drain properly. To ensure sanitary conditions, the shed should be washed on a regular basis.
Collect the manure on a regular basis and stack it away from the shed.
You should also create an outlet to the shed so that once the shed is washed, the cow urine and any excess manure can be discharged into the field.
In hot areas, fans and coolers for cows can be required, particularly during the summer.
In dairy production, fodder control is crucial.
A cow’s daily milk yield is determined by the type of fodder used and the nutritional value of that fodder.
To get 2.5 litres of milk, high-yielding cows should be given 1 kg of concentrate plus a mineral mixture.
If a cow produces 15 litres of milk per day, for example, she should be fed 6 kg of concentrate with a mineral blend.
Dairy fodder management practices allow for the provision of three different forms of fodder.
Dry fodder: wheat hay, kutti (rice / pady straw), chokar (wheat bran),
Green fodder: Any leguminous grain that can be used to supplement protein.
Any gramme crop, barseem, maize/corn, masoor, and hybrid grasses such as CO-3 and CO-4, niper grass, and so on.
Silage can be made from these green fodder crops.
This silage is very nutritious, and milk yields can improve as a result. Making silage is extremely essential, particularly during dry periods.
The relation to the article about “steps in involved in silage making or how to make silage for cattle” will be provided at the bottom of the page.
Usually, 2 to 3 acres of fertile land capable of producing ample green fodder for 15 cows. Green fodder yield, on the other hand, is influenced by a variety of influences.
Mineral Mixture and Concentrate: Mixture of minerals: To avoid mineral deficiency in cows, it is important to feed concentrate feed together with a mineral mixer on a regular basis.
For the best milk yield, all three varieties, such as dry green and mineral mixture, should have precise proportions.
The cost of feed will be determined by the ability of the animal to produce milk. The feed can cost between 200 and 250 rupees per day per cow on average.
Water Supply: A clean water supply is needed for drinking and cleaning the shed. Overhead tanks on the shed will be used to make arrangements.
Breeds of Dairy Cattle: A good breed variety of cows is needed for successful dairy farming. Choose a dairy cow or cow breed that is suited to your climate and has a high milking potential.
You should go to the local farms and observe the various breed forms that are appropriate.
HF cows (Holstein Frisian) crossed with Indian Sahiwal. For a decent milk yield, Jersey with Sahiwal or Jersey with Red Sindhi is preferred.
It is preferable to choose a breed that yields 20 to 25 liters of milk every day. Crossing for high-yielding breeds relies heavily on artificial insemination.
Management and Care of Cows and Calves: Cows should be artificially inseminated or mated every three months (90 days) after calving.
High yield Jersey crossbreed or HF cows attain maturity at 16 to 18 months and are ready for breeding, while Indian cattle breeds require three years to reach maturity.
Cows can calve once every 13 months on average. Cows can have a lactation period of 300 days and a service period of 90-120 days.
Cows would have a gestation cycle of 266 days. Pregnant cows need extra treatment and care and they need more nutrients at this time.
During the gestation cycle of cows, concentrate and mineral mixture should be given, and this feed intake should be increased as time goes by to ensure proper growth of calves and their udder.
license and registration for dairy business in India.
It varies by jurisdiction, depending on whether or not the company plans to process milk and produce goods.
The local area veterinarian and dairy production agency is the first point of touch with a typical individual dairy farm business in India.
No other government agency needs to be consulted if the farm is a certified dairy cooperative society.
Veterinary or similar officers of the municipality, company, or local panchayat issue the licence.
If it’s a big farm, the environmental control board will need to be consulted. In the case of a dairy farm, the criteria are BIS (BUREAU OF INDIAN STANDARDS). There are some of them:
- 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.
Subsidy and loan for Dairy business in India.
Farmers can get a subsidy of 33.33 percent of the total project expense on dairy farm business loans up to Rs. 7 lakh by visiting one of the authorised Regional Rural Banks (RRBs).
The National Bank for Agriculture and Rural Development (NABARD) launched a subsidy programme called the Dairy Entrepreneurship Development Scheme (DEDS).
which allows farmers to get subsidies on Dairy farm business loan from licensed banks.
Alternatively, there are private and cooperative banks.
Applicants may also obtain all relevant information about subsidy and loan facilities from the representative of the nearest bank.
Is dairy farming a profitable business in India?
Dairy farming is commonly referred to as an “all-season opportunity” because there is a constant demand for milk and milk products in India and around the world.
It necessitates spending 14 to 18 hours a day on the market. India’s milk production is consistently high, increasing by over 3% to 4% per year.
The dairy farming industry is establishing itself as a flourishing platform for entrepreneurs.
A dairy farm’s business entails a lot of work, a lot of time, and a lot of valuable capital.
Cleaning the livestock, managing sheds, feeding the horses, and even washing and milking the animals are among the many tasks that come with them.
Profit in dairy business in India.
Large dairies have long been thought to benefit from economies of scale, allowing them to lower prices, be more competitive, more profitable than their smaller competitors who milk less cows and cultivate less acres.
Their willingness to take advantage of their greater size is the main source of their wealth.
A dairy farm with 300 dairy cows can yield ten times the amount of milk as one with just 30.
The barn to house those extra animals, as well as the machines and labourers to do the job, aren’t ten times as costly.
The benefit of having more land outweighs the cost.
“People who operate big commercial farms make substantial sums of money on average,” said USDA economist Jim MacDonald, adding that the average household income is over $200,000 a year.
If you reduce the cost on your labour, electricity, cow feed, another treatments, you can earn 1 lakh to 3 lakhs per month profit in dairy business in India.
There are now Indian firms who can assist you in storing science farm level data on a web-based database and analysing that data for preventive and management behaviour.
This is critical because preventing illness in animals is still preferable to curing it, and the success of the farm cannot be calculated without accurate records.
Pre-warning or alarm SMSs are sent by certain service providers.
You may use your cell phone to upload documents, such as milk production records, breeding records, treatment records, and so on, and receive updates via SMS.
We recommend contacting some well-known consultant to know more about how to start a dairy business.
Banks are also a safe place to start looking for consultants. Another option is to ask current big farms in your area for personal references.
In India, consulting fees typically range from 1 to 5% of the project expense, although this can vary based on project scale, scope, and other factors.
For answering questions on the internet, often advisors charge a fee.
Signing an annual continuity arrangement for a select contractor to support on the phone ( if not in person ) in the initial years is still preferable ( Before you train yourself or your employees ).