how to make a dairy farm business plan

Dairy Farm Business Plan Template

Written by Dave Lavinsky

Dairy Farming Business Plan

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

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What is a Dairy Farm Business Plan?

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

Why You Need a Business Plan for a Dairy Farm

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

Sources of Funding for Dairy Farming Businesses

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

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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.

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

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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?

Dairy Farm Business Plan

High demand, an extensive marketplace, and a recurring revenue model make starting a dairy farm business a lucrative and rewarding profession.

Anyone can start a dairy farm, but you will need a detailed business plan when it comes to growing your business and raising funds for it.

Need help writing a business plan for your dairy farm? You’re at the right place. Our dairy farm business plan template will help you get started.

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Financial Tables

How to Write A Dairy Farm Business Plan?

Writing a dairy farm business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

This section may include the name of your dairy farm, its location, when it was founded, the type of dairy farm (E.g., conventional dairy farm, organic dairy farm, farmstead dairy farm), etc.

Market Opportunity:

Dairy farm products:.

For instance, you may include milk and milk products as dairy farm products, and organic and grass-fed and pasture-raised cattle as some of your USPs.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Conventional dairy farm
Organic dairy farm
Farmstead dairy farm
Pasture-based dairy farm
Describe the legal structure of your dairy farm, whether it is a sole proprietorship, LLC, partnership, or others.
Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

Additionally, If you have received any awards or recognition for excellent work, describe them.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

For instance, health-conscious individuals, specialty diet consumers, and organic shoppers would be an ideal target audience for a pasture-based dairy farm.

Market size and growth potential:

For instance, the dairy farm industry was 59.3 billion dollars in 2022. It is extremely crucial to define the segment of your target market and its growth potential.

Competitive Analysis:

Market trends:.

For instance, plant-fed dairy farming has a booming market; explain how you plan on dealing with this potential growth opportunity.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your dairy farming business plan:

Conduct market research, industry reports, and surveys to gather data.
Provide specific and detailed information whenever possible.
Illustrate your points with charts and graphs.
Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Milk Varieties:

Mention different varieties of milk you will offer at your dairy farm. This will include full-fat milk, low-fat milk, grass-fed derived milk, skimmed milk, etc.

Dairy products:

Mention the dairy farm products you will offer. This list may include dairy products like cheese, butter, yogurt, cream, ice cream, and much more. Also, mention the different varieties of these products you will offer.

Parts and Accessories:

Quality measures:.

This may include ensuring animal health and welfare, milk testing and quality control, sanitation and hygiene practices, etc.

Additional Services

In short, this section of your dairy farm plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

For example, grass-fed milk produce, organic and sustainable practices, and farm-to-table sales could be some of the great USPs for a local pasture-raised dairy farm.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your dairy farm business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your dairy farm, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your dairy farm management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

It should include, key executives(e.g. CEO.), senior management, and other department managers (e.g. farm manager, herd manager.) involved in the dairy farm operations, including their education, professional background, and any relevant experience in the dairy farm industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your dairy farm services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

Add a table of contents for the appendix section to help readers easily find specific information or sections.
In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
Provide data derived from market research, including stats about the dairy farm industry, user demographics, and industry trends.
Include any legal documents such as permits, licenses, and contracts.
Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your dairy farm business plan should only include relevant and important information supporting your plan’s main content.

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This sample dairy farm business plan will provide an idea for writing a successful dairy farm plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our dairy farm business plan pdf .

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Frequently asked questions, why do you need a dairy farm business plan.

A business plan is an essential tool for anyone looking to start or run a successful dairy farm. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your dairy farm.

How to get funding for your dairy farm business?

There are several ways to get funding for your dairy farm, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Bank loan – You may apply for a loan in government or private banks.
Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

What is the easiest way to write your dairy farm business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any dairy farm business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How detailed should the financial projections be in my dairy farm business plan?

The level of detail of the financial projections of your dairy farm may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

What key components should a dairy farm business plan include?

The following are the key components your dairy farm business plan must include:

Executive summary
Business Overview
Market Analysis
Products and services
Sales and marketing strategies
Operations plan
Management team
Financial plan

Can a good dairy farm business plan help me secure funding?

Indeed. A well-crafted dairy farm business plan will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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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.

Dairy Farming Business Plan Template & Guidebook

Starting a dairy farming business can be challenging and time-consuming. However, with the right planning, you can improve your chances of success. The #1 Dairy Farming Business Plan Template & Guidebook provides an easy-to-follow and comprehensive guide to help you develop a comprehensive business plan for your dairy farming venture. This template and guidebook covers all key areas of developing a successful dairy farm, from strategic planning to financial analysis to implementation. With detailed advice from experts in the field, this template and guidebook is the perfect starting point for any aspiring dairy farmer.

Get worry-free services and support to launch your business starting at $0 plus state fees.

How to Start a Profitable Dairy Farming Business [11 Steps]

How to Write a Dairy Farming Business Plan in 7 Steps:

1. describe the purpose of your dairy farming business..

The first step to writing your business plan is to describe the purpose of your dairy farming business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a dairy farming business:

The mission of our Dairy Farming business is to provide high-quality dairy products to customers, while simultaneously protecting and caring for our cows, in an environmentally friendly and sustainable manner. We strive to be a leader in the dairy industry by providing innovative and cost-effective solutions, while still maintaining the highest standards of animal welfare.

2. Products & Services Offered by Your Dairy Farming Business.

The next step is to outline your products and services for your dairy farming business.

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

What is my business?
What are the products and/or services that I offer?
Why am I offering these particular products and/or services?
How do I differentiate myself from competitors with similar offerings?
How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your dairy farming business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals.

A good marketing plan for your dairy farming business includes the following elements:

Target market

Who is your target market?
What do these customers have in common?
How many of them are there?
How can you best reach them with your message or product?

Customer base

Who are your current customers?
Where did they come from (i.e., referrals)?
How can their experience with your dairy farming business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

How does it work, what features does it have, and what are its benefits?
Can anyone use this product or service regardless of age or gender?
Can anyone visually see themselves using this product or service?
How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

Which companies are competing with yours today (and why)?
Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
What specific advantages does each competitor offer over yours currently?

Marketing channels

Which marketing channel do you intend to leverage to attract new customers?
What is your estimated marketing budget needed?
What is the projected cost to acquire a new customer?
How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations.

In it, you should list:

The equipment and facilities needed
Who will be involved in the business (employees, contractors)
Financial requirements for each step
Milestones & KPIs
Location of your business
Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a dairy farming business?

Feed and Fencing Equipment
Vet Supplies, Medicine, and Vaccines
Milking Equipment
Refrigeration Facilities for Milk Storage
Appropriate Business Licenses and Permits for Dairy Farming

5. Management & Organization of Your Dairy Farming Business.

The second part of your dairy farming business plan is to develop a management and organization section.

This section will cover all of the following:

How many employees you need in order to run your dairy farming business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Dairy Farming Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a dairy farming business varies based on many different variables, but below are a few different types of startup costs for a dairy farming business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your dairy farming business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your dairy farming business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses.

Here are some steps you can follow to devise a financial plan for your dairy farming business plan:

Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Dairy Farming Business Plans:

Why do you need a business plan for a dairy farming business.

A business plan is an essential tool for a dairy farming business as it can provide guidance and structure, ensure goals and objectives are met, and provide clarity on the purpose and path of the business. It can also be used to secure funding from external sources, establish a professional image with potential partners, and provide information for investors, lenders, and other stakeholders. Additionally, it can be used as a benchmark to measure progress and make adjustments if necessary.

Who should you ask for help with your dairy farming business plan?

You should ask a dairy farming consultant or business adviser. They can provide insight into the industry and help you create a plan that meets your individual needs. Additionally, you can also contact dairy farm associations or organizations for advice, resources, and assistance.

Can you write a dairy farming business plan yourself?

Yes, it is possible to create a dairy farming business plan on your own. Creating a plan for a dairy farm requires doing extensive research, gathering relevant information, and creating a comprehensive outline of the management aspects of the farm. It is important to include an analysis of the market and industry trends in your plan so you have an understanding of what is working in the current industry environment. Additionally, you should identify your financial objectives, create an actionable marketing plan, develop a production and operations strategy, and determine plans for staffing and training. Finally, the plan should include details on how to sustain the dairy farm over time and grow its success.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

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How to Start a Dairy Farm

Last Updated: March 11, 2024 Approved

This article was co-authored by Karin Lindquist . Karin Lindquist earned a BSc in Agriculture as an Animal Science major from the University of Alberta, Canada. She has over 20 years of experience working with cattle and crops. She's worked for a mixed-practice veterinarian, as a sales representative in a farm supply store, and as a research assistant doing rangeland, soil, and crop research. She currently works as a forage and beef agriculture extension specialist, advising farmers on a variety of issues relating to their cattle and the forages they grow and harvest. There are 9 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 105 testimonials and 92% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 1,339,472 times.

Dairy farms take a lot of money and capital to start up, way more than a meat operation does. Know what you're getting into and how you want to get into it before you decide to start a dairy farm. Even if you grew up on a farm, managing your own means sitting down for long, careful planning sessions. This guide will help you through these, but remember that local knowledge is invaluable for any farmer.

Planning Your Dairy Farm

Rule out breeds that can't thrive in your climate.
For each breed, divide annual upkeep cost by annual milk production to find production cost per unit of milk.
Is there local demand for the breed's milk (based on species and milk fat %)? What about for butter and cheese (where a high fat % is useful)?
How much time and money does it take to raise a calf to milk-producing age? How much can you sell the male calves for?

Livestock need about 4% of their weight in forage each day. Ideally, your pasture should produce more than this at peak season, so you can stockpile the surplus for winter.
Renting land is usually better than purchasing for a new farm. Wait until your farm is well-established and you no longer need the financial flexibility.

Artificial insemination programs are now widespread in India and many African countries. The savings are not as significant and the programs vary in quality, but it is still usually worth it.
Male:female herd ratio varies between species and with the male's age. A young bull can typically service 20–25 cows, while a healthy, mature bull may be able to handle up to 40. [2] X Trustworthy Source University of Georgia Cooperative Extension Division of the University of Georgia focused on research and community education Go to source

If this is all new to you, try to get some work experience on another dairy farm first.

A sterile facility for storing milk, and for pasteurizing if required in your area
Dry, sunny sheds or barns protected from weather and temperature changes
Milking parlor with stanchions
Feed storage and manure storage
Separate living space for calves
Equipment (including tractors) and equipment storage area
Well for watering cattle, plus water transport system to tanks in pasture
Irrigation system for pasture (optional) [5] X Research source
Note — if possible, give yourself room to expand to a larger herd

Contact government institutions about subsidies and loans for farmers before you take out a loan from a bank.
Use the average milk prices (or slightly lower) over the past few years when estimating future profits. You don't want your business to go under if milk prices drop.
As a rule of thumb, you'll need one laborer per 10 milk animals, and one per 20 "dry" animals. [7] X Research source This includes you and your family.

Learning the Basics

Equipment shared between farms can spread disease. Try to confirm where the equipment has been used and whether the animals there were healthy. [8] X Research source
Disease-carrying ticks are a major problem for livestock. [9] X Research source Inspect animals for ticks regularly, and keep the shed area clear of brush.

Step 3 Give the animals proper nutrition.

Mineral licks and/or mineral supplements are an important part of the animal's diet.
Moldy feed or feed stored in the same area as pesticides and other contaminants can transfer dangerous toxins to the milk. [10] X Research source
Dairy animals have high nutrition requirements compared to animals raised for meat. Improper nutrition can lead to lower milk production or lower quality milk.

If you've never milked an animal before, learn how to milk a cow or goat.

Unlike farms that raise livestock for meat, you will be calving all year round to keep milk production steady. Keeping track of where each animal is in the cycle is vital so you can stick to a plan that keeps your income as regular as possible.

Community Q&A

Herd health is very important for dairy operations. Dairy cows can get sick quite easily, and are more prone to injury to their feet and udders than beef cows are, and are also prone to milk fever and ketosis after calving. In order to have a healthy dairy herd, stringent health practices must be in place. Thanks Helpful 1 Not Helpful 0
Make sure you have good practices to make your cows as comfortable as possible during the time you're milking them. Thanks Helpful 1 Not Helpful 0
Allow your calves to milk for at least a month to give them enough strength. Thanks Helpful 1 Not Helpful 0

Tips from our Readers

If you have just a few cows and prefer to milk them by hand, it may be a little more work, but it's much cheaper for you to start. And, milking cows is a fun activity you can teach your children or guests.
For calves that are still nursing, separate the calf from the cow at night, then milk the cow in the morning and at night. During the day, the calf will get surplus milk.
In summer, bath the animals at least one or two times.

Don't go in to this operation thinking it's going to be a smooth ride. You will be very busy from before sunrise to past sunset every day, doing everything from milking cows to red tape to fixing machinery. It helps to have trusty hired hands, but you will need to supervise them to keep the farm running smoothly. Thanks Helpful 91 Not Helpful 40
Starting a dairy farm is very expensive. Going too far into debt can be very risky without a second job to rely on, since a shift in grain or milk prices could bankrupt you. If you don't have the finances yet, consider raising animals for meat instead. Thanks Helpful 79 Not Helpful 37

↑ https://cias.wisc.edu/beginning-farmers/starting-your-own-dairy-farm/
↑ http://extension.uga.edu/publications/detail.cfm?number=C553
↑ http://www.vethelplineindia.co.in/starting-a-dairy-farm-india/
↑ http://www.yourarticlelibrary.com/dairy-farm-management/dairy-cattle-housing-and-layout-of-dairy-farm/36250/
↑ http://onpasture.com/2014/06/16/should-i-irrigate-my-pastures/
↑ https://www.sites.ext.vt.edu/newsletter-archive/dairy/2004-02/lactation.html
↑ http://www.vethelplineindia.co.in/wp-content/uploads/2012/12/GoodDairyFarmingPractice_FAO.pdf
↑ http://agrifarming.in/dairy-farming
↑ http://dairy.ahdb.org.uk/technical-information/animal-health-welfare/cow-culling/

About This Article

If you want to start a dairy farm, decide which species and breed you'd like to keep, such as cows, goats, or water buffalo. Then, choose a food source, such as feed, hay, or grazing, and with the cost of labor and land in mind. Once you've decided on these, make a breeding plan, which might involve paying for a bull's service or doing artificial insemination. Make sure you know about the care requirements for dairy animals of all ages, since you will have both adult and baby animals. When you're ready to start the farm, make sure you have all permits in order and make a business plan to propose to investors. For tips on learning the basics of dairy farming and taking care of dairy animals, read on! Did this summary help you? Yes No

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Dairy Farming Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Agriculture Industry » Livestock Farming » Cattle and Dairy

Are you about starting a dairy farming business? If YES, here is a complete sample dairy farming business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a dairy farming business . We also took it further by analyzing and drafting a sample dairy farming marketing plan template backed up by actionable guerrilla marketing ideas for dairy farms. So let’s proceed to the business planning section.

We all take in dairy foods on a regular basis; in fact there isn’t any home that doesn’t consume dairy foods. This primarily is one of the reasons why those who have built a business around the dairy industry are making a great deal of income on a daily basis. One of the businesses that revolved around the diary trade is starting a dairy farm.

It pays that one does all that needs to be done in order to start with the right footing. As such one, one can undertake a thorough and exhaustive research. Thereafter think towards getting a firsthand knowledge of the industry by sitting under the tutelage of someone who has a firsthand experience and dealing with the trade.

You will also be required to write a business plan. One of the good things about business plans is that they serve as a great guide and blueprint to fly with. There are plenty business plan experts out there; to save you the troubles and fees that you will have to pay. A sample dairy farms business plan has been put together for your use;

A Sample Dairy Farming Business Plan Template

1. industry overview.

There are several business opportunities available in the agricultural industry and dairy farming is one of them. One good thing about the agriculture industry is that there is market for all the produce from the industry. A dairy farm is of course a thriving and profitable business because of usefulness of beef and milk.

People eat beef, drink their milk, and use their fur and skin. With cattle milk, cheese can be made, along with other dairy products. Companies in the dairy farms industry primarily raise cattle for milk.

Although this industry basically engage in the sale of raw milk and excludes the production of drinkable fluid milk and processed dairy products like butter, cheese and powdered milk, some dairy farms can still go ahead to accommodate other related business within the industry as long as they have the capacity to do so.

In recent time, the price of raw milk has been highly volatile, resulting to fluctuations in revenue for the Dairy Farms industry.

For example, in 2011, the price of milk bounced back from the recession and pushed up by increasing global demand, resulting to appreciable growth in revenue generation. It was projected that in 2016, an oversupply of dairy products is expected to cause revenue to deep further in the industry.

However, despite all the volatility, the industry is expected to experience appreciable growth going forward. For the time being, the price of cattle feed, which typically makes up about half of the average dairy farm’s total expenses, has been nose diving as far back as 2014, significantly strengthening industry profit margins.

The Dairy Farms Industry is indeed a large industry and pretty much active in countries such as United States of America, Israel, Argentine, Holland, Egypt, China, Germany, Turkey and Nigeria et al. There is no single dairy farm company that has dominate market share in the industry hence smaller dairy farms business can successfully make profits.

Statistics has it that in the united states of America alone, there are about 42,536 registered and licensed dairy farms business responsible for employing about 345,672 and the industry rakes in a whooping sum of $47 billion annually. The industry is projected to enjoy 1.3 percent annual growth.

As an aspiring entrepreneur who is looking towards leveraging on the agriculture industry to generate huge income, then one of your best bet is to start dairy farms business. Dairy farms business is all about mass – breeding of cattle (cows, oxen, bulls, bullocks, steers, heifers and calf et al) for the sole aim of generating raw milk in commercial quantities and of cause making profits.

Just like any other business, if you are able to conduct your market research and feasibility studies before launching your dairy farms, you are more likely not going to struggle to sell your raw milk and other dairy products because there are loads of people out there we eat beef, drink milk and industries that make use of byproducts from cattle in manufacturing their products.

Lastly, there are few barriers to entry into the dairy farms industry. Usually, all inputs are readily available. In the nearest future, players in this industry may face the highest costs associated with accessing technology, especially in relation to genetic modification engineering in livestock breeding.

So also, intellectual property rights protecting new inventions and technology may mean that new entrepreneurs coming into the industry will need to pay license fees and this of course will cause increase in the start – up fee for starting a dairy farm cum cattle rearing business.

2. Executive Summary

Columbus & Sons Dairy Farms, LLC is a registered and world class dairy farms company that will be based in the outskirt of Pierre, South Dakota – United States. We have done our detailed market research and feasibility studies and we were able to secure a hundred acres of land to build our dairy farming business.

Our dairy farms business is a going to be standard one hence will be involved in commercial breeding of cows, oxen, bulls, bullocks, steers, heifers and calf et al for the main aim of producing raw milk in commercial quantities. We will also be involved in boarding services, breeding services, dairy support services, livestock health services, farrier services, and shearing services et al.

We are in the dairy farms business because we want to leverage on the vast opportunities available in the dairy farms industry, to contribute our quota in growing the U.S. economy, in national food (raw milk) production, meat, raw materials production for industries, to export agriculture produce from the United States to other countries and over and above to make profit.

Columbus & Sons Dairy Farms, LLC is well positioned to become one of the leading brands in the dairy farms industry in the United States of America, which is why we have been able to source for the best hands and equipment to run the business.

We have put process and strategies in place that will help us employ best practices when it comes to producing raw milk in commercial quantities and conforming to the rules and regulation as required by the regulating bodies in the United States of America.

At Columbus & Sons Dairy Farms, LLC our customer’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Columbus & Sons Dairy Farms, LLC is a private registered dairy farms company that is owned and managed by Columbus Parker and is immediate family members. The company will be fully and single handedly financed by the owner – Columbus Parker and his immediate family members at least for a period of time.

Before starting Columbus & Sons Dairy Farms, LLC, Columbus Parker has worked with some of the leading dairy farms in the United States of America. He has a degree in Agriculture Economics and well over 10 years of experience.

3. Our Products and Services

Columbus & Sons Dairy Farms, LLC is a licensed dairy farms business that is committed to producing raw milk in commercial quantities for both the United States’ market and the global market. We are in the dairy farms industry for the purpose of generating profits and we are going to do all that is permitted by the laws in the United States of America to achieve our business goals.

These are the areas we will concentrate on in our dairy farms business. If need arises we will definitely add more related animal breeding services to our list;

Milking dairy cattle
Dairy support services
Dairy cattle farming
Farrier services
Sale and export of cotton wool and other dairy products
Sale of Cattle and milk
Sale of processed meat (beef) / can – beef (Processed Diary foods, and can beef et al)
Shearing services
Dairy farming related consultancy and advisory services

4. Our Mission and Vision Statement

Our Vision is to become one of the leading dairy farms business brands not just in Pierre – South Dakota, but also in the United States of America.
Our mission is to sell our raw milk and other dairy farms products in commercial quantities both locally, nationally and internationally.
We want to build a dairy farms business that can favorably compete with other leading dairy farms brands in the United States of America and in the globe.

Our Business Structure

Columbus & Sons Dairy Farms, LLC is a dairy farms company that intend starting small in Pierre – South Dakota, but hope to grow big in order to compete favorably with leading dairy farms in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands in and around Pierre – South Dakota.

At Columbus & Sons Dairy Farms, LLC, we will ensure that we hire people that are qualified, hardworking, dedicated, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the management of the dairy farms. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions. Below is the business structure of Columbus & Sons Dairy Farms, LLC;

Chief Operating Officer

General Dairy Farm Manager

Administrator / Accountant

Sales and Marketing Executive
Farm / Field Employees
Front Desk Officer

5. Job Roles and Responsibilities

Chief Operating Officer:

Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
Responsible for providing direction for the business
Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
Responsible for signing checks and documents on behalf of the company
Evaluates the success of the organization
Responsible for the planning, management and coordinating all farm activities across the various sections on behalf of the organization
Supervise other section manager
Ensures compliance during project executions
Provides advice on the management of farming activities across all section
Responsible for carrying out risk assessment
Uses IT systems and software to keep track of people and progress of the growth of cattle
Responsible for overseeing the accounting, costing and sale of raw milk and other dairy products
Represent the organization’s interest at various stakeholders meetings
Ensures that dairy farm goals desired result are achieved, the most efficient resources (manpower, equipment, tools and chemicals et al) are utilized and different interests involved are satisfied. Responsible for preparing financial reports, budgets, and financial statements for the organization
Oversee the smooth running of the daily farming activities across the various farming sections.
Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Defines job positions for recruitment and managing interviewing process
Carries out staff induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for preparing financial reports, budgets, and financial statements for the organization
Responsible for financial forecasting and risks analysis.
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensures compliance with taxation legislation
Handles all financial transactions for the farms
Serves as internal auditor for the farms

Sales and Marketing Officer

Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of new business
Writes winning proposal documents, negotiate fees and rates in line with company policy
Responsible for handling business research, marker surveys and feasibility studies for clients
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
Develops, executes and evaluates new plans for expanding increase sales
Documents all customer contact and information
Represents the company in strategic meetings
Helps to increase sales and growth for the company

Field Workers / Contract Staff

Responsible for milking cattle as instructed by the general dairy farms manager
Responsible for feeding cattle and other livestock as instructed by the supervisor
Responsible for cleaning the cattle ranch
Change the water in the water trough / trench as instructed by the supervisor on a regular basis
Handles farm implements and machines as instructed by the section manager / supervisor
Assist in handling the breeding of cattle
Carries out task in line with the stated job description
Assist in transport working tools and equipment from the dairy farm and back to the designated store room
Handles any other duties as assigned by the dairy farm manager

Client Service Executive / Front Desk Officer

Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
Manages administrative duties assigned by the cattle ranch manager in an effective and timely manner
Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
Receives parcels / documents for the company
Distributes mails in the organization
Handles any other duties as assigned my the line manager

6. SWOT Analysis

Columbus & Sons Dairy Farms, LLC do not intend to launch out a business on a trial and error platform hence the need to conduct a proper SWOT analysis.

We know that if we get it right from the onset, we would have succeeded in creating the foundation that will help us build a standard dairy farms business that will favorably compete with leading dairy farms in the United States of America and in the rest part of the world.

As a standard dairy farms business, we look forward to maximizing our strength and opportunities and also to work around our weaknesses and threats. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Columbus & Sons Dairy Farms, LLC;

Our strength as a cattle rearing business is the fact that we have healthy relationships with loads of major players (agriculture merchants) in the dairy farms industry; both suppliers and buyers of raw milk in commercial quantity within and outside of the United States.

We have some of the latest cattle rearing machines; tools and equipment that will help us breed our cattle (cows, oxen, bulls, bullocks, steers, heifers and calf et al) in commercial quantities with less stress. Aside from our relationship (network) and equipment, we can confidently boast that we have some the most experienced hands in the dairy farms industry under our payroll.

Our weakness could be that we are a new dairy farms business in the United States and we may not have the required cash to pump into the publicity of our business. We are aware of this and from our projection will overcome this weakness with time and turn it to a major advantage for the business.

Opportunities:

The opportunities that are available to us cannot be quantified. The fact that almost everybody in the world drinks milk and dairy farms products makes the business highly marketable.

We know that there are loads of homeowners, businesses and industries that will source for raw milk and other dairy products both in the United States of America and other parts of the world. We are well positioned to take advantage of these opportunities as they come our way.

Some of the threats and challenges that we are likely going to face when we start our own dairy farms are global economic downturn that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics), unfavorable government policies and the arrival of a competitor (a dairy farm or even cattle rearing farm that are also into production of raw milk) within same location.

There is hardly anything you can do as regards this threats and challenges other than to be optimistic that things will continue to work for your good.

7. MARKET ANALYSIS

Market Trends

A close study of the dairy farming industry shows that most dairy farms that has the capacity do not just concentrate in the commercial production of raw milk for households and businesses that are involved in the production of fluid milk products, cheese, dry, condensed and evaporated milk, creamery butter and yogurt et al.

They go as far as establishing a standard milk and beef processing company in line with their core business. It is a means of maximizing profits and increasing source of revenue generation.

Despite the fact that dairy farm has been in existence since time immemorial, that does not in any way make the industry to be over saturated; dairy farmers are exploring new technology to continue to improve raw milk production processes and also meat and milk preservation and packaging process. The fact that there is always a ready market for raw milk and other dairy products makes the business evergreen.

Lastly, one of the notable trends in dairy farms industry is that with the recent advancement in technology dairy farmers can now improve the various breeds of the animals they are breeding so as to increase the quantity of milk they produce per time.

As a matter of fact, it is now easier for dairy farmers to comfortably import the kind of breed of domestic animal they want to breed from any country of their choice and also advancement in technology has made it easier to cross – breed different animal.

8. Our Target Market

As expected, the target market of those who are the end consumer of dairy farms produce and also those who benefits from the business value chain of the agriculture industry is all encompassing; it is far – reaching. Every household consumes produce from livestock farms be it meat, milk, and the skin (leather) used for bags, belts and shoes production et al.

So also a large chunk of manufacturing companies depends on dairy farms for some of their raw materials. In essence a dairy farmer should be able to sell his or her raw milk and other dairy products to as many people as possible.

We will ensure that we position our business to attract consumers of raw milk and other dairy products not just in the United States of America alone but also other parts of the world which is why we will be exporting some of our dairy farm produce either in raw form or processed form to other countries of the world.

Our Competitive Advantage

From experience, entrepreneurs are known to flock towards an industry that is known to generate consistent income which is why there are more dairy farms in the United States of America and of course in most parts of the world.

As a matter of fact, entrepreneurs are encouraged by the government to embrace commercial farming / dairy farming. This is so because part of the success of any nation is her ability to cultivate her own food and also export foods to other nations of the world.

Columbus & Sons Dairy Farms, LLC is fully aware that there are competitions when it comes to selling raw milk and other dairy products all over the globe, which is why we decided to carry out thorough market research and feasibility studies so as to know how to take advantage of the available market in the United States and in other parts of the world.

We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable dairy farming processes that can help us sell our raw milk and other dairy products at competitive prices, good network and excellent relationship management.

Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we will operate an all – round standard dairy farms that will be involved in diverse areas such as animal rearing and meat and milk processing and packaging plant. With this, we will be able to take advantage of all the available opportunities within the industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups dairy farms companies in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

Sources of Income

Columbus & Sons Dairy Farms, LLC is in the dairy farms industry for the purpose of maximizing profits hence we have decided to explore all the available opportunities within the industry to achieve our corporate goals and objectives. In essence we are not going to rely only on the sale of raw milk and other dairy products to generate income for the business. Below are the sources we intend exploring to generate income for Columbus & Sons Dairy Farms, LLC;

10. Sales Forecast

From the survey conducted, we were are able to discover that the sales generated by a dairy farm depends on the size and capacity of the dairy farms and of course the network of the business.

We have perfected or sales and marketing strategies and we are set to hit the ground running and we are quite optimistic that we will meet or even surpass our set sales target of generating enough income / profits from the year of operations and build the business from survival to sustainability.

We have been able to critically examine the dairy farms industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some workable assumptions as well with respect to the nature of dairy farms business that we run.

Below are the projections that we were able to come up with for the first three years of running Columbus & Sons Dairy Farms, LLC;

First Fiscal Year-: $250,000
Second Fiscal Year-: $650,000
Third Fiscal Year-: $900,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics), and unfavorable government policies.

Marketing Strategy and Sales Strategy

It is a known fact that the reason why some dairy farms hardly make good profits is their inability to sell off their raw milk and other dairy products to a larger market. In view of that, we decided to set up a standard meat and milk processing and packing plant to help us maximize profits.

Over and above, we have perfected our sale and marketing strategies first by networking with agriculture merchants and companies that rely on raw materials from the dairy farms industry who are likely to refer become our customers. In summary, Columbus & Sons Dairy Farms, LLC will adopt the following strategies in marketing our cattle rearing produce;

Introduce our business by sending introductory letters alongside our brochure to stake holders in the agriculture industry, companies that rely on the dairy farms industry for their raw materials, hotels and restaurants and agriculture produce merchant et al.
Advertise our business in agro – allied and food related magazines and websites
List our dairy farms on yellow pages ads (local directories)
Attend related agriculture and food expos, seminars, and business fairs et al
Leverage on the internet to promote our business
Engage in direct marketing
Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means (both conventional and non – conventional means) to advertise and promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means.

We know that it is important to create strategies that will help us boost our brand awareness and to create a corporate identity for our cattle rearing business. Below are the platforms we want to leverage on to boost our dairy farms brand and to promote and advertise our business;

Place adverts on both print (newspapers and magazines) and electronic media platforms
Sponsor relevant community based events / programs
Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our business
Install our Bill Boards on strategic locations all around Pierre – South Dakota
Engage in road show from time to time in targeted neighborhoods
Distribute our fliers and handbills in target areas
Contact corporate organizations and residence in our target areas by calling them up and informing them of Columbus & Sons Dairy Farms, LLC and the dairy farm produce we sell
List our dairy farms in local directories / yellow pages
Advertise our dairy farms in our official website and employ strategies that will help us pull traffic to the site.
Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.

12. Our Pricing Strategy

We are fully aware that some of the key factors that will help us sell our raw milk and other dairy farm products at the right price that will guarantee that us making profits is dependent on our strategy while some of the factors are beyond our control.

For example, if the climatic condition is unfavorable and if there is natural disaster in the location where we have our dairy farm, then it will directly affect the prices of our raw milk and other dairy farm products.

The truth is that, if we want to get the right pricing structure for our raw milk and other dairy products, then we must ensure that we choose a good location for our dairy farms, choose a good breed that will guarantee steady and multiple breeding (prolific breeds), cut the cost of running our farm to the barest minimum

And of course try as much as possible to attract buyer to our farm as against taking our raw milk and other dairy products to the market to source for buyers; with this, we would have successfully eliminate the cost of transporting the goods to the market and other logistics that can impact on our operational cost.

We are quite aware that one of the easiest means of penetrating the market and acquiring loads of customers for all our raw milk and other dairy products is to sell them at competitive prices hence we will do all we can to ensure that the prices of our produce are going to be what other dairy farms and even commercial livestock farmers who are into the sale of raw milk would look towards beating.

One thing is certain, the nature of dairy farms business we are involved in makes it possible for farmers to place prices for their raw milk and other dairy products based on their discretion without following the benchmark in the industry. The truth is that it is one of the means of avoiding running into loss. The easier you sell off your raw milk and other dairy products the better for your business.

Payment Options

The payment policy adopted by Columbus & Sons Dairy Farms, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Columbus & Sons Dairy Farms, LLC will make available to her clients;

Payment via bank transfer
Payment with cash
Payment via online bank transfer
Payment via check
Payment via bank draft
Payment via mobile money

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our raw milk and other dairy products.

13. Startup Expenditure (Budget)

When it comes to calculating the cost of starting a dairy farm, there are some key factors that should serve as a guide. The capacity of the raw milk to be produced per time and other related dairy products will determines the total cost of setting up the business.

Besides, in setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a dairy farms business; it might differ in other countries due to the value of their money. Below are some of the basic areas we will spend our start – up capital in setting up our dairy farms;

The Total Fee for incorporating the Business (dairy farm) in United States of America – $750.
The amount needed to acquire / lease a dairy farm land – $50,000
The amount required for preparing the farm land (cattle ranch / dairy farm) – $50,000
Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
Marketing promotion expenses for the grand opening of Columbus & Sons Dairy Farms, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
The total cost for hiring Business Consultant – $2,500.
The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400
The amount required for the purchase of the first set of cattle – $10,000
The cost for acquiring the required working tools and equipment and milking machines et al– $50,000
Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
The Cost of Launching an official Website – $600
Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000

Going by the report from detailed research and feasibility studies conducted, we will need an average of $700,000 to start a standard dairy farms business in the United States of America.

Generating Funding / Startup Capital for Columbus & Sons Dairy Farms, LLC

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as commercial poultry farming.

No doubt raising startup capital for a business might not come cheap, but it is a task that an entrepreneur must go through. Columbus & Sons Dairy Farms, LLC is a family business that is solely owned and financed by Columbus Packer and his immediate family members.

They do not intend to welcome any external business partners, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources. These are the areas we intend generating our start – up capital;

Generate part of the start – up capital from personal savings
Source for soft loans from family members and friends
Apply for loan from my Bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $400,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Columbus & Sons Dairy Farms, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to sell our raw milk and other dairy products a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Columbus & Sons Dairy Farms, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

Business Name Availability Check:>Completed
Business Registration: Completed
Opening of Corporate Bank Accounts: Completed
Securing Point of Sales (POS) Machines: Completed
Opening Mobile Money Accounts: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of Insurance for the Business: Completed
Leasing of farm land and building of standard dairy farm: In Progress
Conducting Feasibility Studies: Completed
Generating capital from family members: Completed
Applications for Loan from the bank: In Progress
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents and other relevant Legal Documents: In Progress
Design of The Company’s Logo: Completed
Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
Recruitment of employees: In Progress
Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
Creating Official Website for the Company: In Progress
Creating Awareness for the business both online and around the community: In Progress
Health and Safety and Fire Safety Arrangement (License): Secured
Opening party / launching party planning: In Progress
Compilation of our list of products that will be available in our dairy farms: Completed
Establishing business relationship with vendors – key players and merchant in the industry: In Progress

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Dairy Farm Business Plan Template

Published Dec.08, 2017

Updated Apr.22, 2024

By: Cynthia Turner

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Table of Content

Do you want to start dairy farm business?

Have you got some cash to invest and you are planning to start a dairy farm ? Well, if that’s the case then you are going the right way. Dairy products are a compulsory ingredient of our food and there will not be a single home that does not consume dairy products. Another advantage is that people need dairy foods on a regular basis, nearly every day.

The biggest advantage in starting this dairy farming business plan , which gives it an edge on other startups, is that it gives us the maximum rate of return on our relatively small investment group business plan as compared to other businesses. So, by investing in this dairy farming business plan you can make some serious cash on a daily basis.

Despite having all these perks, this business also has a dark side which is its difficult planning at the initial stage. It has got more constraints as compared to the normal businesses out there, that is why before starting it, you need to have a well-structured dairy farming business plan covering even the tiniest bit of details.

To help you avoid all the trouble of thinking about everything and making a plan yourself, we are providing a detailed dairy farming business plan of a startup “Milk&Milk” which is soon going to be launched.

Executive Summary

2.1 the business.

Milk&Milk will be a registered American dairy farming business plan based in Spring Valley, a village in the Rockland County of New York, at a 40-minute drive from the center of New York City. Nearly 80 acres of land in the outskirt of village has been selected and acquired as the farm site after detailed market analysis.

[start_your_bp] The dairy farming business plan will be owned and operated by Michael Benrick. Michael did his Bachelors in Agriculture Sciences from Cornell University and Masters in Business Administration from Harvard University. After his studies he worked in several dairy farms in USA ranging from small startups to multinational corporations and has been serving as the operational head of milk production unit in Nestle, USA for the last 10 years. Michael comes from a farming family and his father is a farmer himself, owning several acres land in the same village. It is partially due to his experience in dairy farm industry and partially due to his similar family business that Michael knows every tiniest bit of detail about how to start a dairy farm .

2.2 Management

Milk&Milk is primarily a milk producing company, involved in the breeding of milk-producing animals to produce large quantities of milk for commercial purposes but the company will also produce other dairy products. Being located in a village, the dairy farming business plan will have a continuous supply of all resources including the food for the animals. To manage the animals and resources efficiently, Michael has decided to hire a large workforce consisting of local inhabitants so as to ensure quality of their products.

2.3 Customers

The company aims to serve whole Rockland County along with a major portion of New York City’s residential zone.

2.4 Target of the Company

Michael’s target is to become one of the best natural dairy products producer of New York City.

Company Summary

3.1 company owner.

Milk&Milk is solely owned and operated by Michael Benrick who has more the 20 years’ experience of working in leading dairy farm companies, especially Nestle.

3.2 Why the Business is being started

Throughout his serving career, Michael did not feel happy about the mechanical procedures of production of dairy products which resulted in the loss of their natural characteristics. He had always thought to bring innovation in the traditional procedures of production while maintaining the nutrients and natural characteristics in the dairy products. It was last year, when he actually said ‘goodbye’ to Nestle and started working on his own dairy products farm.

3.3 How the Business will be started

Michael worked on his idea for about a year and developed a detailed dairy farming business plan covering everything, even the future forecasted demands. He took help from his friend, Anna, who is a financial expert in Nestle, and crafted a detailed map about the cost to start a dairy farm .

Michael has forecasted following costs for expenses, assets, investment, and loans for the Start-up.

How the Business will be started -dairy farming business plan

The detailed start-up requirements, start-up funding, start-up expenses, total assets, total funding required, total liabilities, total planned investment, total capital and liabilities as forecasted by company’s analysts, is given below:

Services for customers

Milk&Milk will not only produce milk and other dairy products for commercial purposes but the company also aims to provide various cattle related products and services to its customers. The main services incorporated in its new dairy farm business plan are as follows:

Production of milk, butter, cheese, yogurt, cream, and other cultured dairy foods
Production of canned beef
Farrier and shearing services
Consultancy services

Marketing Analysis of dairy farming business

The most important and difficult part in developing a good dairy farm business plan is its marketing analysis that’s why Michael obtained the services of marketing experts to help him develop a good dairy farming business plan . He went through various dairy farming business plan samples before selecting the best dairy farm business plan template to work on.

The success or failure a startup totally depends upon how they market themselves to target their specific customer groups. A successful marketing strategy can only be developed after knowing the target audience and potential customers. Michael has carried out at extensive research with marketing experts to know their target customers and focus their marketing strategy towards them.

5.1 Marketing Segmentation

Milk&Milk will target all customers ranging from individual buyers to multinational retail stores. The marketing experts have identified following type of target audience which can become the potential customers of the company.

Marketing Segmentation - dairy farming business plan

The detailed marketing segmentation comprising of the company’s target audience and sale of the dairy packages unit are as follows:

5.1.1 Individual Buyers:

Milk&Milk will open three small retail locations in its initial phase, in the first year of its startup. One retail location will be in Rockland County and the other two will be in New York City. Through these retail locations, the company will target individual buyers residing in these areas who will be needing our dairy products on a regular basis throughout the year.

5.1.2 Departmental Stores:

Milk&Milk will supply its dairy products to various other retail and grocery stores. These departmental stores will make up the bulk of company’s customers and more than half of our products will be sold to them. These stores will also be needing our products on a daily basis throughout the year.

5.1.3 Restaurants and Hotels:

Milk&Milk will also supply their dairy products and beef to various restaurants and hotels on a regular basis throughout the year. These restaurants will become our biggest consumer after the departmental stores.

5.1.4 Companies and Businesses:

Milk&Milk will also supply milk to various companies and businesses based in New York City. The companies need a continuous supply of milk for making tea for their crew on a daily basis. Michael had already been contacted by a few medium sized companies to provide their canned milk on weekly basis.

5.1.5 Dairy Farm Owners:

The company will also provide consultancy and advisory services like farrier and shearing to the various farm owners located in Rockland County.

The detailed market analysis of our potential customers is given in the following table:

Milk&Milk aims to become the best dairy products company of New York within next 5 years of its launch and one of the leading dairy farm companies of America within next 10 years. We aim to provide highest quality dairy products to our consumers within affordable prices. We will keep all our dairy products as much original and natural as possible. We will only produce the required amount of products as forecasted by our analysts to reduce the use of preservatives and other artificial additives. Michael has already started planning for his goal of reviving natural dairy products.

5.2 Business Target

At our company, we will also provide a top-notch customer service. Our every employee and salesperson will treat our customers with utmost respect so as to build a long-lasting relationship with them. We will also provide highest quality consultancy and advisory services to the farmers located in the Rockland County.

5.3 Product Pricing

Setting the prices of products is the most difficult part of any dairy farming business plan , especially for a risky business like dairy farm. If the prices of our products are higher as compared to our competitors then people would not get attracted towards us, similarly if the prices are lower then it will be difficult to achieve our MARR (minimum attractive rate of return).

Considering all restraints and aspects, Michael has priced some of the products, milk and flavored yogurt, slightly higher than competitor’s products so as to balance the cost needed to manufacture high quality natural products and to avoid financial problems in the dairy farm business management . While most of our products can be bought in nearly the same price as the similar products of other companies.

Planning the sales strategy can be very complicated especially for a person with no prior knowledge. To make a small dairy farming business plan of your own business, you can take help from the sales strategy of this sample dairy farm business plan .

The sales strategy of Milk&Milk developed by Michael and his friend Anna, a finance expert, is as follows:

6.1 Competitive Analysis:

Milk&Milk will have various competitors ranging from small dairy products manufacturers to multinational corporations. Our competitors may have established businesses and low product prices but no one will surpass us when it comes to the quality of products. Our competitive edge over other dairy farm businesses and dairy products manufacturers will be the ‘naturality’ of our products which is lacked by nearly all of our competitors. We are sure that people will prefer our slightly high-priced but natural products as compared to other dairy products available in market.

6.2 Sales Strategy

We will introduce our startup to our target customers and stake holders in the agriculture industry by sending brochures and introductory letters. We will attend all subsequent business fairs, food seminars and expos, and will carry out a large-scale social media campaign for our advertisement. We will send a free sample of our dairy products to several hotels and restaurants so that they can know the superior quality of our products. We will also offer discounts and gifts on our products present in several retail stores.

6.3 Sales Forecast

We believe that if people try our products, they will then use them for the rest of their lives thus the sales pattern will always increase with years. Our customers will be needing our products throughout the year. By analyzing our market segmentation strategy , our experts have forecasted the following sales on yearly basis which are summarized in the column charts.

Sales Forecast - dairy farming business plan

The detailed information about sales forecast, total unit sales, total sales is given in the following table:

Personnel plan

Michael acquired the services of a Human Resource Manager who instructed him how to write a business plan for a dairy farm incorporating the HR aspect. Michael, with the help of HR Manager and financial experts developed the following plan for the staff needed for the company along with their average salaries.

7.1 Company Staff

Michael will act as the Chief Operating Officer of the company. The company will initially hire following people:

1 General Dairy Farm Manager to manage the overall operations in dairy farm and the production unit.
2 Administrators / Accountants to maintain financial records.
2 Engineers responsible for operating and maintaining packaging unit.
4 Sales and Marketing Executives responsible for delivering products to retailers and discover new ventures.
20 Farm / Field / Packaging Employees for operating the farm and production unit.
4 Drivers to transport products to various retail locations, hotels and restaurants.
1 Front Desk Officer to act as a receptionist in the company headquarters.

To ensure the best quality service, all employees will be selected through vigorous testing and will be trained for a month before starting their jobs.

7.2 Average Salary of Employees

The following table shows the forecasted data about employees and their salaries for next three years.

Financial Plan

Michael has developed the following financial plan with the help of Anna, which outlines the financial development of Milk&Milk over the next three years. The finance experts helped him to figure out <strong>how much does it cost to start a dairy farm<strong>.

Michael had been planning this dairy farming business plan for years and thus had saved up for this venture. That’s why the company will be solely financed by him and he will also control the direction of business to make sure that it is expanding at the forecasted rate. No equity funding or outside loan will be required unless the company expands faster than forecasted.

8.1 Important Assumptions

The company’s financial projections are forecasted on the basis of following assumptions. These assumptions are quite conservative and are also expected to show deviation but to a limited level such that the company’s major financial strategy will not be affected.

8.2 Brake-even Analysis

The following graph shows the company’s Brake-even Analysis.

2 Brake-even Analysis - dairy farming business plan

The following table shows the company’s Brake-even Analysis.

8.3 Projected Profit and Losss

The following charts show the company’s expected Profit and Loss situation on the monthly and yearly basis.

8.3.1 Profit Monthly

Profit Monthly - dairy farming business plan

8.3.2 Profit Yearly

Profit Yearly - dairy farming business plan

8.3.3 Gross Margin Monthly

Gross Margin Monthly - dairy farming business plan

8.3.4 Gross Margin Yearly

The following table shows detailed information about profit and loss, and total cost of sales.

Gross Margin Yearly- dairy farming business plan

8.4 Projected Cash Flow

The following column diagram shows the projected cash flow.

The following table shows detailed data about pro forma cash flow, subtotal cash from operations, subtotal cash received, sub-total spent on operations, subtotal cash spent.

8.5 Projected Balance Sheet

The following projected balance sheet shows data about total current assets, total long-term assets, total assets, subtotal current liabilities, total liabilities, total capital, total liabilities and capital.

8.6 Business Ratios

The following table shows data about business ratios, ratio analysis, total assets, net worth.

Download Dairy Farm Business Plan Sample in pdf

OGScapital writer specializes business plan themes such as cattle farming business plan , chicken farming business plan , goat farming business plan , pig farm business plan , poultry farming business plan and helps you understand benefits of business continuity planning , etc.

4 thoughts on “ Dairy Farm Business Plan Template ”

The business plan template is indeed very good and it does not capture any loan amount borrowed for how long did the farmer save before starting the farm. It does not also show how many animals he started with, as a guide many people may want to know is it 10 or 50 or 100 animals economical for a small scale farmer. Sorry if my questions are in the story but I scanned through. Thank you.

Thank you for your comment. If you need assistance in writing your business plan please contact us by email: [email protected] or call us at USA +1-619-727-5304, UK +44-203-318-1069, Canada +1-613-699-7822, Australia +61-385-956-735.

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How to Start a Farm: Plan Your Operation

Think about your operation from the ground up and start planning for your business. A good farm business plan is your roadmap to start-up, profitability, and growth, and provides the foundation for your conversation with USDA about how our programs can complement your operation.

Keep reading about planning your business below, get an overview of the beginning farmer's journey , or jump to a different section of the farmer's journey.

Will help you get organized . It will help you to remember all of the details and make sure you are taking all of the necessary steps.
Will act as your guide . It will help you to think carefully about why you want to farm or ranch and what you want to achieve in the future. Over time, you can look back at your business plan and determine whether you are achieving your goals.
Is required to get a loan . In order to get an FSA loan, a guarantee on a loan made by a commercial lender, or a land contract, you need to create a detailed business plan . Lenders look closely at business plans to determine if you can afford to repay the loan.

How USDA Can Help

Whether you need a good get-started guide, have a plan that you would like to verify, or have a plan you’re looking to update for your next growth phase, USDA can help connect you to resources to help your decisions.

Your state's beginning farmer and rancher coordinator can connect you to local resources in your community to help you establish a successful business plan. Reach out to your state's coordinator for one-on-one technical assistance and guidance. They can also connect you with organizations that specifically serve beginning farmers and ranchers.

It is important to know that no single solution fits everyone, and you should research, seek guidance, and make the best decision for your operation according to your own individual priorities.

Build a Farm Business Plan

There are many different styles of business plans. Some are written documents; others may be a set of worksheets that you complete. No matter what format you choose, several key aspects of your operation are important to consider.

Use the guidelines below to draft your business plan. Answering these kinds of questions in detail will help you create and develop your final business plan. Once you have a business plan for your operation, prepare for your visit to a USDA service center. During your visit, we can help you with the necessary steps to register your business and get access to key USDA programs.

Business History

Are you starting a new farm or ranch, or are you already in business? If you are already in business:

What products do you produce?
What is the size of your operation?
What agricultural production and financial management training or experience do you, your family members, or your business partners have?
How long have you been in business?

Mission, Vision, and Goals

This is your business. Defining your mission, vision and goals is crucial to the success of your business. These questions will help provide a basis for developing other aspects of your business plan.

What values are important to you and the operation as a whole?
What short- and long-term goals do you have for your operation?
How do you plan to start, expand, or change your operation?
What plans do you have to make your operation efficient or more profitable ?
What type of farm or ranch model (conventional, sustainable, organic, or alternative agricultural practices) do you plan to use?

Organization and Management

Starting your own business is no small feat. You will need to determine how your business will be structured and organized, and who will manage (or help manage) your business. You will need to be able to convey this to others who are involved as well.

What is the legal structure of your business? Will it be a sole proprietorship, partnership, corporation, trust, limited liability company, or other type of entity?
What help will you need in operating and managing your farm or ranch?
What other resources, such as a mentor or community-based organization , do you plan to use?

Marketing is a valuable tool for businesses. It can help your businesses increase brand awareness, engagement and sales. It is important to narrow down your target audience and think about what you are providing that others cannot.

What are you going to produce ?
Who is your target consumer ?
Is there demand for what you are planning to produce?
What is the cost of production?
How much will you sell it for and when do you expect to see profit ?
How will you get your product to consumers ? What are the transportation costs and requirements?
How will you market your products?
Do you know the relevant federal, state, and local food safety regulations? What licensing do you need for your operation?

Today there are many types of land, tools, and resources to choose from. You will need to think about what you currently have and what you will need to obtain to achieve your goals.

What resources do you have or will you need for your business?
Do you already have access to farmland ? If not, do you plan to lease, rent, or purchase land?
What equipment do you need?
Is the equipment and real estate that you own or rent adequate to conduct your operation? If not, how do you plan to address those needs?
Will you be implementing any conservation practices to sustain your operation?
What types of workers will you need to operate the farm?
What additional resources do you need?

Now that you have an idea of what you are going to provide and what you will need to run your operation you will need to consider the finances of your operation.

How will you finance the business?
What are your current assets (property or investments you own) and liabilities (debts, loans, or payments you owe)?
Will the income you generate be sufficient to pay your operating expenses, living expenses, and loan payments?
What other sources of income are available to supplement your business income?
What business expenses will you incur?
What family living expenses do you pay?
What are some potential risks or challenges you foresee for your operation? How will you manage those risks?
How will you measure the success of your business?

Farm Business Plan Worksheets

The Farm Business Plan Balance Sheet can help gather information for the financial and operational aspects of your plan.

Form FSA-2037 is a template that gathers information on your assets and liabilities like farm equipment, vehicles and existing loans.

FSA-2037 - Farm Business Plan - Balance Sheet
FSA-2037 Instructions

Planning for Conservation and Risk Management

Another key tool is a conservation plan, which determines how you want to improve the health of your land. A conservation plan can help you lay out your plan to address resource needs, costs and schedules.

USDA’s Natural Resources Conservation Service (NRCS) staff are available at your local USDA Service Center to help you develop a conservation plan for your land based on your goals. NRCS staff can also help you explore conservation programs and initiatives, such as the Environmental Quality Incentives Program (EQIP) .

Conservation in Agriculture

Crop insurance, whole farm revenue protection and other resources can help you prepare for unforeseen challenges like natural disasters.

Disaster Recovery

Special Considerations

Special considerations for businesses.

There are different types of farm businesses each with their own unique considerations. Determine what applies to your operation.

Organic Farming has unique considerations. Learn about organic agriculture , organic certification , and the Organic Certification Cost Share Program to see if an organic business is an option for you. NRCS also has resources for organic producers and offers assistance to develop a conservation plan.
Urban Farming has special opportunities and restrictions. Learn how USDA can help farmers in urban spaces .
Value-Added Products . The Agricultural Marketing Resource Center (AgMRC) is a national virtual resource center for value-added agricultural groups.
Cooperative. If you are interested in starting a cooperative, USDA’s Rural Development Agency (RD) has helpful resources to help you begin . State-based Cooperative Development Centers , partially funded by RD, provide technical assistance and education on starting a cooperative.

Special Considerations for Individuals

Historically Underserved Farmers and Ranchers: We offer help for the unique concerns of producers who meet the USDA definition of "historically underserved," which includes farmers who are:

socially disadvantaged
limited resource
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Women: Learn about specific incentives, priorities, and set asides for women in agriculture within USDA programs.

Heirs' Property Landowners: If you inherited land without a clear title or documented legal ownership, learn how USDA can help Heirs’ Property Landowners gain access to a variety of programs and services

Business Planning

Creating a good business plan takes time and effort. The following are some key resources for planning your business.

Farm Answers from the University of Minnesota features a library of how-to resources and guidance, a directory of beginning farmer training programs, and other sources of information in agriculture. The library includes business planning guides such as a Guide to Developing a Business Plan for Farms and Rural Businesses and an Example Business Plan .
The Small Business Administration (SBA) offers information about starting, managing, and transitioning a business.

SCORE is a nonprofit organization with a network of volunteers who have experience in running and managing businesses. The Score Mentorship Program partners with USDA to provide:

Free, local support and resources, including business planning help, financial guidance, growth strategies.
Mentorship through one-on-one business coaching -- in-person, online, and by phone.
Training from subject matter experts with agribusiness experience.
Online resources and step-by-step outlines for business strategies.
Learn more about the program through the Score FAQ .

Training Opportunities

Attend field days, workshops, courses, or formal education programs to build necessary skills to ensure you can successfully produce your selected farm products and/or services. Many local and regional agricultural organizations, including USDA and Cooperative Extension, offer training to beginning farmers.

Cooperative Extension offices address common issues faced by agricultural producers, and conduct workshops and educational events for the agricultural community.
extension.org is an online community for the Cooperative Extension program where you can find publications and ask experts for advice.

Now that you have a basic plan for your farm operation, prepare for your visit to a USDA service center.

2. Visit Your USDA Service Center

How to Start a Farm with USDA

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Find Your Local Service Center

USDA Service Centers are locations where you can connect with Farm Service Agency, Natural Resources Conservation Service, or Rural Development employees for your business needs. Enter your state and county below to ﬁnd your local service center and agency offices. If this locator does not work in your browser, please visit offices.usda.gov.

Learn more about our Urban Service Centers . Visit the Risk Management Agency website to ﬁnd a regional or compliance office or to ﬁnd an insurance agent near you.

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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 – 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.

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.

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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Farm Management

Division of Extension

Creating a Dairy Farm Operating Plan

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Given all the uncertainty this year with the corona virus pandemic and COVID-19, it is more important than usual to have a clear and easily available farm operating plan. If COVID-19 strikes your family, you may be incapacitated or distracted and unable to complete critical farm operations, especially spring planting. The farm operating plan identifies people who are familiar with the farm to take over operations if you are unable to farm for a while and provides clarity on what needs to be done. Family, friends, and neighbors will also likely step up to help, but they will need to know what to do. That is the purpose of the farm operating plan – to help those who will want to help you when you need it. It will be one less thing to worry about during difficult times. If you need to help someone else, it will make it easier for you if they have a farm operating plan as a guide.

An example template is provided to help create a farm operating plan for a dairy farm. Make a few copies of your final plan and be sure they are easy to find. Share them with your back up operators so they can make sure your cows are milked and given proper care.

Be sure to have the name and address of the farm(s) located on the protocol so the worker(s) knows where to tell the business to show up if they are unfamiliar. Also have instructions if vendors and helpers should or should not visit the house, barn, etc. without contacting first.

OWNER & FARM(s) Name:__________________________________________________________

PHONE NUMBER:_________________________________________________________________

FARM(s) ADDRESS:________________________________________________________________

_________________________________________________________________

It is important to have phone numbers of businesses and people that your dairy utilizes for everyday questions or in the event of an emergency. Below are examples of businesses and people that are recommended to have their contact information:

If your dairy operation has other businesses that they utilize on a frequent basis make sure to add to this template.

Besides having the farm address and important phone numbers readily available for those who may be filling in during an illness, it is also a good idea to have written protocols in place for each aspect of your dairy. Here is a recommended list of protocols to have developed:

Milkhouse and parlor set up/takedown
A chart to in the milkhouse to identify proper milk cooling temperatures
A list of cleaning agents and when/where to use them in the milkhouse/parlor
Calf feeding and care
Treatment protocol for common diseases
Management of diseased or injured cattle
Culling and transport
Feed mixing for Dairy Cows and Heifers
Manure Hauling

When writing a protocol for each aspect of your dairy operation think of the steps you go through when performing that task. Write each step down and then go back and make sure that it is understandable to a person that has never completed the task before. You may also reach out to your local agriculture extension agent or educator for help.

With the exception of milking protocols, plans for livestock farms will most likely look very similar. Livestock operations may want to provide further details on pen and pasture locations, and update periodically for seasonal tasks (birthing, weaning, anticipated marketing dates for finishing stock, etc.).

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Tools for Developing a Business Plan for a Dairy Operation

Photo Credit Free-Photos from Pixabay

For ag professionals or producers who want to develop a business plan for the dairy operation, this library of resources provides tools that may be useful.

The site includes a Business Plan Template, Business Planning Factsheets, a Case Farm example to show how a finished product may look, and a set of Financial Resource Documents. These documents are a collection of sample reports that show the type of financial information to include in a plan. There is also a folder of Financial Tools at the site that includes both Excel spreadsheets and fillable PDF forms that can be used to create these financial reports.

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Business Plan

A business plan organises your ideas for your dairy farm, creating a roadmap for success. this page reveals that businesses with a plan perform better, as it aligns everyone, identifies opportunities, and avoids problems. the process involves assessing your current situation, considering options, setting priorities, and tracking progress. while the business manager leads the plan, everyone contributes, maintaining focus and building credibility. your plan should answer critical questions about your farm's purpose, status, ambitions, strategies, and success indicators. regularly update your plan to adapt to changing circumstances. guidance is provided to create a comprehensive plan, including vision statements, goals, and actions..

Writing a business plan helps you organise your thoughts and map out the road to where you want to take your business.

Research shows that businesses with a business plan perform better than those without.

Why write a business plan?

Writing a business plan helps you organise your thoughts and map out the road to where you want to take your business. An effective business plan lays the blueprint for future business success. A business plan:

Helps you organise your thoughts and road map where you want to take your business
Aligns owners, investors and staff
Demonstrates you are looking at all possibilities
Gives you confidence you have the best chance of making your business succeed
Helps you identify opportunities you may never have otherwise recognised – and avoid potentially expensive problems you wouldn’t have otherwise seen coming.

How does business planning work?

Business planning challenges you to think through your ideas and identify possible issues and opportunities.

Provides a process to consider where you are now, look at options, seek advice, and select the most important things to take forward.
Gives you direction, a map to follow, and a sense of urgency - helping you, your staff and advisers prioritise effort.
Allows you to measure progress towards goals and take action to ensure you keep on track
Builds credibility and convinces others (including lenders) you know what you're doing.

Who is responsible for the business plan?

The business manager is responsible for the business plan, but good plans are contributed to by staff and advisers, overseen by directors, trustees and owners; reviewed by financiers, and implemented by staff, so all pull in the same direction

What questions should a good business plan answer?

What are we about?
Where are we now?
Where do we want to be?
How will we get there?
How will we know we’ve succeeded?

How often do I update my business plan?

At least annually, because no situation stays the same for long; your business will face new challenges and opportunities over the years which is why it’s essential you regularly review and update your business plan.

Write your business plan

Create a business plan suitable for sharing with your bank, potential investors, business partners, farm advisory team or staff.

Farm Business Plan (Editable pdf)
Farm Business Plan (Word doc)
Farm Business Plan template guide (pdf)

Need help creating your vision statements and goals and actions for your business plan? Use the interactive QuickPlan tool to select from examples or create your own.

Starting afresh or revisiting your business planning? Create your vision, assess your situation, set goals and actions; and plan your succession and governance.

Additional Resources

How to Start Dairy Farming in 7 Steps – Business Plan

Dairy farming requires high investment in the initial stages, but profits at the end, make it worth your while!!

You may choose pure breeds or cross breeds. In fact, rearing of cross breeds with artificial insemination has generally proved to be more profitable. This is very profitable business if you start with an effective business plan.

In this article we have covered important tips which you should mention in your business plan. Make sure that you follow the tips given below.

Also, we have covered all detailed information on how to start, run and successfully grow your dairy farming business to the next level while managing the profit margin.

Dairy Farming Business Plan

1. select location for your dairy farm.

Elevated land is better to avoid stagnation of rainwater and wastes in the area. Ensure that the foundation soils are not heavily desiccated or dehydrated, since they become prone to fissures and cracks during the rainy season.

Lands too elevated will not be able to hold water and hence no green pastures for the cattle will be possible. Do not use fertile land for housing cattle.It will be more expensive.

Allow mangers, platforms and gutters within the shed to soak in direct sunlight. This becomes possible if the animals’ barn is in the north-south direction. It should also have maximum protection from overly hot or overly cold winds.

The structure should be durable, located near scenic vistas and closer to the main road. Keep your animals safe from thieves, wild animals and hazards like protruding nails, highly polished floors, loose hinges, narrow gates, high manger curbs etc.

Fence it up well so no thieves or wild animals can enter.

2. Different Kinds of Housing

Two types of barns are popular amongst dairy farmers.

(i). Loose System

This system helps you to become an efficient manager.

You don’t have to spend too much on construction of buildings. The animals should have the freedom to move around, to yield you profit, even with minimal grazing.

They should be able to exercise well and stay healthy. Tie up a cow only during milking, or if it requires any treatment.

You will be able to detect an animal in heat, quite easily. Think about room for further expansion if you can afford it.

What Kind of a Cowshed will you Construct in Loose System?

The boundary wall should reach four to five feet in height, on all three sides.
Keep the fourth side open for the manger, water trough, etc.
Every cow should have a couple of feet at least of manger space to call her own. This is for feeding.
A water trough with a width of ten inches would be ideal all along the manger.
The 5-feet wide and slightly sloping flooring under the roofed portion,can be paved with bricks.
The remaining area of 40 x 35 feet with its boundary wall can be unpaved and must possess a gate.
Whenever the weather is cold, your cows will go and settle down to protect themselves.
It would be good if the animals face north while feeding so they will be in shade.

(ii). Conventional System of Shed Construction

These are expensive, and not so popular, but perfect for regions suffering weather variations from adverse climatic conditions.

What kind of barns will you construct?

Ideally, you may house not more than 80 to 100 cows in a large structure.
Opt for a single row or a double row arrangement.
The cows can rest in a face-to-face or tail-to-tail manner, if placed in double rows.
When placed face-to-face, you will find it easier to feed all your animals and help them get into their stalls easily, to ensure that direct sunlight reaches the gutter.
When placed tail-to-tail, you will have more space to milk the cows; your animals receive plenty of fresh air; to prevent spread of disease from one animal to another.

3. How will you Look After the Calves?

Construct a completely enclosed shed measuring at least 10 x 15 feet, on one side of the main building.
This will serve as the calving pen too, when climatic conditions are not favourable.
Provide the young ones with 50 x 50 feet of open area with a boundary wall so they can jump and play around.

4. Things to Keep in Mind While Constructing the Roof, Floor and Walls

Use tiles or asbestos sheets to construct the roof or Mangalore tiles to avoid heat. You may use corrugated iron sheets, only if they have painted aluminium surfaces and wooden insulation underneath, to avoid heat of sunlight.

If the roof’s height is eight feet on all the sides and 15 feet at the ridge, your cows will get plenty of healthy ventilation.

Floors can be paved with bricks. Alternatively, you can use grooved cement concrete, or any other material easy to clean. The idea is to keep the 65 to 70 sq ft of space per cow dry and non-slippery.

It would be good to have a slight slope in the flooring, from the manger to the excreta channel. If you use cement for the walls and give them a smooth and hard finish, you can rest assured that the cowshed will remain free of moisture and dust by washing it.

Keep the corners round. Sharp corners can hurt the cows in movement.

If you live in the plains, you may choose walls measuring just about 4/5 feet in height. The roof may receive support from iron or wooden pillars or masonry work, for allowing great circulation of air and light.

5. Things to Keep in Mind While Constructing Doors, Alleys, Manger and Manure Gutter.

If your cowshed comprises single row stalls, keep the doors 7 feet high and 5 inches wide.
If your cowshed has double row stalls, the measurements must be 9 feet and 8 inches to allow two cows to pass together in case.
Every door should be able to flatten itself against the external wall and be fastened to the walls.
When your cows settle facing each other, the central walk must measure 5 feet in width at least.
If they face out, the width must be a bit wider, with the alley sloping towards the two gutters on either side.
Even the feed alley must be four feet in width at least, if your cows are in a tail-to-tail position.
If your manger needs to be high in the front, in order to prevent wastage of fodder, keep the measurements of one foot (height) and four inches (width).
If your manger needs to be low in front, six to nine inches should be enough.
The back of the manger can be 2 feet x 3 to 6 inches.
The width can be two feet or more.
Keep the manure gutter wider and sloping, for easy flow and cleaning.

6. Tips with Regard to Housing Calves

When cows go into labour, keep them in enclosed sheds with doors, windows, ridge vents, ample space and plenty of soft bedding for the new calf.
Bulls/bullocks can be kept in sheds (each measuring 15 x 10 feet) having rough cement concrete floors, mangers and water troughs.
A door for each shed, measuring around 7 feet in height and 4 feet in width would be ideal.
A difficult-to-jump-over yard with a swing gate, would provide every bull/bullock some exercise in peace!
Make sure to keep other animals in view, so they don’t feel isolated.
With regard to young stock, categorise them in about three groups according to gender and age.
Each group would be comfortable in a separate shed with good ventilation, dry floor, water trough, manger and exercise yard.
If any animal is diseased, isolate it in a separate shed, away from the other animals. Make sure its wastes drain off into a separate drainage disposal system not to spread any germs.

7. Miscellaneous Tips For Profitable Dairy Farming

To keep every cowshed clean and well sanitised, you will need a shovel, and an iron or plastic basket and a wheelbarrow for removing dung, leftovers and used bedding;a long floor brush for cleaning the water trough and floor; wall brush for removing cobwebs; broom sweeping the floor; lime mixture for whitewashing walls and water trough;disinfectants for cleaning walls, stanchions, railings etc.

Request an experienced dairy farmer to help you select your disinfectants, germicides, fungicides and insecticides wisely, such that your animals face no harm from their usage, insects, plant growth or microbes. You may go in for iodine/iodophors, sodium carbonate, quick lime, slaked lime, bleaching powder, phenol, neem powder etc.

Dry fodder, paddy straw, wheat hay, etc.green fodder protein-rich and leguminous rabi crops as feed can yield good milk;include mineral mixture for supplementation.

Your animals must have plenty of fresh and clean water, during all seasons.

Consult a veterinarian for advice on timely vaccinations, care of pregnant cows, mating and insemination, management of newborn calves, etc.

Check your cows every day, preferably every morning, to see if they are ruminating well. If a cow is not ruminating, it indicates that it is sick.

Feed the cow prior to milking, and lubricate its udder with mustard oil.

A cow must not sit down immediately after milking at least for half-an-hour, since its udder may become infected. Feed it, so that it remains standing.

Avoid giving raw rice, raw wheat, etc, for an animal’s metabolism is different.

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Starting Dairy Farming Business Plan (PDF)

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

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

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

Market Research

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

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

Land for Dairy Cattle Farming Business

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

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

Housing For Dairy Farm Business

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

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

Dairy Farm Equipment

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

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

Breeding Stock for Dairy Farming Business

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

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

Feed And Nutrition

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

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

Health & Disease Management

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

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

Dairy Farming Business Model

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

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

Capital for Dairy Farming Business

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

Market for Dairy Milk

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

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

Keys to Profitability in Dairy Farming

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

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

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

Advantages of Dairy Farming Business

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

Why You Need A Dairy Farming Business Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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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!

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

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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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The Ideal Dairy Farming Business Plan To Start & Make Profit

Supti Nandi

May 22, 2024

Do you have any idea about which country is the largest milk producer in the world? The answer is- India! Yes, our country produces over 87,450 metric tons of milk annually per Consumer Goods & FMCG data . All the credit goes to flourishing Dairy farming businesses in India! Are you looking to open a dairy farm too? If so, you need a solid dairy farming business plan.

Here we’re presenting you with a thorough business plan for dairy farming. Whether you are a beginner or looking for farm expansion, this plan will definitely help you.

We have divided the dairy farming business plan into 12 parts and explained them step by step. Here’s how it goes-

1. Professional Training

First of all, you need to become familiar with the environment of dairy farming and obtain the required skills. After all, the dairy farming business is no less than a job. It is one of the most profitable occupations, especially in North India.

So, to gain enough skill, knowledge, and experience you can enroll yourself in training programs from legit or affiliated institutes like-

Agricultural Universities
Training Centres of Animal Husbandry Department
Krishi Vigyan Kendras
Private Training Dairy Industries

2. Get a License

In India, different states have different rules and regulations. Hence, you need a license. But in villages, almost every household has a cow/buffalo. Do all of them have a license? You may ask. Well, not really. For instance, as per the Rajasthan Government, anybody can rear a cow and a calf without any license. But if you are planning for a dairy farming business then definitely you need a license.

Because, rearing a cow/buffalo for milk consumption is a basic amenity whereas rearing them for business to earn profits is an entirely different concept. That’s why you need to adhere to government regulations.

Hence, you must get a license from FSSAI otherwise you may be imposed with a fine and imprisonment.

3. Capital Investment

From a general perspective, you need to invest around Rs.10-20 lakh for rearing 20 animals considered as medium or large-scale dairy.

Indeed it is a large amount for ordinary Indians, therefore, you can apply for a subsidy or loan from cooperative banks.

4. Selection of Dairy Type

First, decide how many animals you want to start with. This will determine the scale of your dairy farm. Here are three categories-

Small-Scale Dairy: You can start with up to 5 cattle. This is a good option if you’re just beginning and want to manage a small, manageable number of animals.
Medium-Scale Dairy: This involves keeping 6 to 20 cattle. This scale requires more resources and time but can produce more milk and generate higher income.
Large-Scale Dairy: Here, you’ll have more than 20 cattle. Managing a large-scale dairy farm involves a significant investment, more land, and labor, but it also has the potential for substantial milk production and profits.

5. Breed Selection

Choosing the right breed is crucial for good milk yield. Here are some of the best breeds for milk production-

Jersey: Jerseys are small, gentle cows that are excellent for milk production. They produce milk with high butterfat content, which is great for making cream and butter.
Red Sindhi: Known for their hardiness and adaptability to hot climates. They produce a good quantity of milk and are easy to manage.
Holstein Friesian (HF Cows): Holsteins are the most common dairy breed worldwide. They are large cows that produce the highest quantity of milk compared to other breeds.
Sahiwal: Sahiwal cows are known for their resistance to diseases and adaptability to harsh conditions. They produce a moderate amount of high-quality milk.
Gir: Girs are native to India and are known for their robust health and good milk production. Their milk has high nutritional value.
Deoni: Deoni cows are hardy and can thrive in various conditions. They are good milk producers and require less maintenance.
Ongole: Ongole cows are strong and can adapt well to different environments. They are moderate milk producers but are known for their strength and endurance.

6. Location of the Farm

Choosing the right location for your dairy farm is vital for the health of your cattle and the efficiency of your operation. Here’s what you need to know-

Land Requirement: For 15 cows, you ideally need 2 acres of land. This amount of land provides enough space for grazing, shelter, and other necessary facilities. It also allows for proper waste management and reduces the risk of disease.
Accessibility: Make sure your farm is easily accessible for transportation of milk to markets and for bringing in feed and other supplies. Proximity to veterinary services is also important for the health of your cattle.
Water Supply: Ensure there is a reliable and clean water source. Cows need plenty of water for drinking and for maintaining hygiene on the farm.
Climate: Consider the climate of the area. Different breeds adapt better to different climates, so choose a location that suits your selected breed.

By carefully planning these aspects, you can set up a successful dairy farm that produces high-quality milk and ensures the well-being of your animals.

7. Enough Fodder and Water for the Cattle

To produce high-quality milk with good fat content, your cattle need a balanced diet and plenty of water. Go through the following table for detailed information-

8. Anticipate the amount of Milk Production

Understanding how much milk your cattle can produce helps you plan your resources and manage your farm effectively.

Factors affecting production: Breed, nutrition, health, and management practices all impact milk yield.
Estimate Yield: On average, a good dairy cow can produce 10-15 liters of milk per day. Some high-yielding breeds like Holstein Friesians can produce even more.

Running a dairy farm involves various tasks that require adequate labor. Here’s what you need to consider-

Handling Farm Activities

Daily Tasks: Feeding, milking, cleaning, and monitoring the health of your cattle.
Number of Workers: For a medium-scale dairy (6-20 cattle), you might need 2-3 workers to manage these activities efficiently.

Growing Green Fodder

Significance: Ensuring a steady supply of green fodder reduces feed costs and provides fresh nutrition for your cattle.
Labor Needs: You’ll need workers to plant, water, and harvest green fodder. This task requires regular attention, especially during growing seasons.
Importance of Training: Proper training ensures that workers can handle cattle safely, perform milking correctly, and maintain hygiene standards.
Training Duration: A few days of hands-on training can significantly improve efficiency. Train your workers on- Milking techniques to maximize yield and maintain udder health; Feeding practices to ensure a balanced diet; and Recognizing signs of illness to address health issues promptly.

10. Veterinary Care

Taking good care of your cattle’s health is crucial for a successful dairy farm. You must focus on the following things-

Vaccinations

Vaccinations are essential. They protect your cattle from various diseases, preventing outbreaks that can affect your entire herd. It’s important to follow a proper vaccination schedule. Consult with a vet to create a plan that includes vaccines for common diseases like foot-and-mouth disease, brucellosis, and rabies.

Let’s go through a brief overview of the Vaccination Schedule , a crucial aspect of the Dairy Farming business plan-

Routine Checkups

Routine checkups are equally important. Regular checkups help catch any health issues early before they become serious problems. Having a vet visit your farm routinely to examine your cattle ensures they are healthy, eating well, and producing good-quality milk.

Medications

Medications play a vital role in keeping your cattle healthy. They are used to treat illnesses, provide essential nutrients, and prevent issues like accidental abortions. It’s a good idea to keep a stock of necessary medications and supplements on hand. Work with your vet to understand what each cow needs based on its age, health, and milk production.

Artificial Insemination

Artificial insemination is a modern breeding technique that can be very beneficial. It involves collecting sperm from a bull and manually inserting it into a cow’s reproductive tract. This method allows you to breed your cows with the best bulls, improving the genetics and milk production of your herd. You can either learn the process yourself or hire a trained technician to perform it.

11. Waste Management

Managing waste properly is essential for maintaining a clean farm and creating useful by-products. You can reuse the cattle waste in the following ways-

Making Manure: One effective way is by making manure. Manure is animal waste used as fertilizer. It enriches the soil, helping crops grow better. You can collect cow dung and mix it with bedding material and other organic waste, letting it decompose properly before using it on your fields.
Vermicomposting: Another method is vermicomposting, which involves using worms to turn organic waste into nutrient-rich compost. This process produces high-quality compost that can enhance soil fertility. To do this, set up a vermicomposting bin with worms, cow dung, and organic waste. The worms will break down the material into valuable compost over time.
Anaerobic digestion: Anaerobic digestion is another option. This process involves microorganisms breaking down organic matter in the absence of oxygen, producing biogas and digestate. It reduces waste and produces biogas, which can be used for energy, and digestate, which is a good fertilizer. You can install an anaerobic digester on your farm and feed it with cow manure and other organic waste to produce biogas and fertilizer.
Biogas Production: Biogas production is a great way to utilize waste. Biogas is a renewable energy source produced from the anaerobic digestion of organic materials like cow manure. It can be used for heating, electricity, and as a cooking fuel, reducing your energy costs. By using an anaerobic digester to produce biogas from manure, you can capture and store the biogas for use on the farm.

12. Calculation of Profits

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Understanding where your profits come from helps you manage your farm better. Here’s a breakdown-

Milk Sales (91%)

The majority of your income will come from milk sales, accounting for about 91% of your profits. This means you should focus on producing high-quality milk to maximize sales and ensure a steady income.

Animal Sales (5%)

Animal sales contribute about 5% to your income. This involves selling cattle, such as older cows or male calves. To maintain a productive farm, you need to manage your herd effectively, selling animals when necessary.

Government Payments (2%)

You might also receive government payments, which account for around 2% of your income. These can be subsidies or payments from the government. It’s important to stay informed about available government programs and apply for any subsidies or grants you qualify for.

Marketing Costs (optional)

If you spend money on marketing, it can impact your profits. Consider whether marketing will help you sell more milk or products. If it will, plan a budget for it.

Other Income Streams (3%)

Finally, income from other sources like biogas production or selling meat also contributes to your profits, accounting for about 3%. Exploring these additional income streams can be beneficial. For example, you can use biogas to save on energy costs or sell surplus meat.

Note: Do you know you can benefit from partnering with reputed milk brands like Amul and Nandini? You can go through the following articles for detailed information-

Amul Working Strategy
How does Nandini Milk work?
Mother Dairy milk business

Starting a dairy farm is a rewarding venture. By choosing the right number of cattle, the best breeds, ensuring proper care, and managing waste effectively, you can build a successful business. Focus on details and stay dedicated. With smart planning and hard work, you’ll not only make a profit but also support a sustainable food supply.

In case you have further questions, just mention them in the comments section below!

Contact Info: Axponent Media Pvt Ltd, 706-707 , 7th Floor Tower A , Iris Tech Park, Sector 48, Sohna Road, Gurugram, India, Pin - 122018

Horizon Farm Credit

How to write a farm business plan.

Getting a loan for your agricultural business — no matter the size or scope — means asking the lender to have faith in your ability to manage a full-fledged operation and your finances in a healthy way. The best way to prove that is by coming prepared with a farm business plan proposal.

No pressure, right? While it may seem daunting and scary, we’ve broken down the steps to writing the perfect business plan below. Read on to learn more and check out the end of this guide for additional resources to help you craft a top-notch business plan.

Creating a Farm Business Plan

You can set yourself up for success — both in business and with your lender — by having a detailed business plan for your farming operation. It doesn't need to be pretty, but you do have to prove that you're willing to put the time and effort into creating a well thought out course of action for your operation.

Are you already operating but don't have a plan? That's okay! It's never too late to put extra thought into how your operation will continue to fulfill your livelihood.

What to Include in your Agricultural Business Plan

Whether you're a new farmer looking for a loan , or a seasoned grower that needs funding for a new agribusiness , there are a few things that you want to make sure you include in your agricultural business plan.

Title/ Cover Page

Keep it simple on the cover page. The most important information here is accurate contact information so your lender can get in touch with you easily. Include your mailing address, phone, email, and fax if you have it.

Business Overview

Although it will be the first page of your farm plan, this will be the last section that you write, since it acts as a summary of all your key points in your plan. Remember that this is the first section that your lender will read , so they’ll expect to see all of the highlights that make approving this loan a good financial decision for both you and the lending organization. Include points about expansion plans, market opportunities, financial trends and projections in a short and easy to read summary. Treat this section as if you're telling a stranger about your operation and you want to give them an overview of what you do and what sets you apart from other businesses in your industry.

What are your key business objectives? In this part of your farming business plan, you'll want to describe your products and services your business will offer.

Start by describing how your business will operate and include what makes your business unique. Provide details regarding the size of the operation, location, and note any expansion plans.

Who is your target audience? Who will benefit from your products or services produced from your farm business?

Think about the desire and drive behind why you want to pursue this business venture. It is common to connect your business why with your mission statement.

If applying for a loan:

If you’re starting a new operation, clearly state how much money you are applying for, how you plan to use it and how it will make your business more profitable, thereby ensuring repayment.

Creating your own farm business plan will take time and effort. As you complete sections, send them to partners or colleagues to review as you go along. If you have any questions on farm business plan examples or more specifically what lenders are looking for, give us a call.

Business Management and Organization

Business history:.

How long have you been in operation? Are you starting from scratch or did the business have previous owners?

Strengths and Weaknesses:

Describe the strengths and weaknesses of your business.

Implementation Timeline:

What is your plan of action? What specific tasks need to be completed in order to reach your business goals?

Goals are often broken into two categories — short term and long term. Short term goals are focused on actions likely to be achieved in 1-3 years, and long term goals are likely accomplished in 3-10 years, or beyond.

Risk Management:

What risk management practices do you have in place? Think about your business contingency plan, insurance coverage , regulatory requirements, and your market and production diversification.

For some people, this can be the most fun or the most challenging part of creating your small farm business plan. Before thinking about your marketing tactics, think about the data you need to make informed business decisions .

Market Share:

Researching your target market is key to understanding what opportunities are available in the marketplace. Is there current market share to gain? How will you remain competitive as a farm business? Who are your biggest competitors in the marketplace? Do you anticipate any obstacles?

How will your farm business generate farm income? Think about how your product will be sold and priced? What is your projected or estimated income? How are you going to gain commitments and contracts to sell your products?

What marketing strategy will your business use to reach your business goals? As a small business, will you utilize tools like social media, email marketing, and/or ecommerce to maximize your marketing efforts to connect with your target audience? Check out our blog on how to create a marketing plan for your farm and download a free template!

Arguably, the most important part of your agricultural business plan is how you will finance your operation. In this section, make sure to take time to complete your balance sheet. The balance sheet will identify your cash-basis income trend, breakeven analysis, and sensitivity analysis. This statement is a summary of what you own vs. what you owe.

The income and expenses statement shows your business’ profit and loss over a period of time, determined by taking all the revenue and subtracting all expenses. This will show the profitability of your operation.

Business Advisors

Business advisors are a group of professionals who serve as subject matter experts to enhance productivity, business, and on-farm profitability, while offering technical insight for your farm operations. Surrounding yourself with people who know how to support your farming venture will help to support and find your long-term business success. You will want to organize your team that might consist of an attorney, accountant, lender, insurance provider, and consultants in the last section of the business plan. Did you know Farm Credit offers services for Accounting, Records, Payroll and Taxes, Appraisal, Business Consulting, Farm Succession Planning, and more? Give us a call at 888.339.3334 or view our full list of services here .

Congratulations! You’ve made it through each section of how to write your business plan! If you’re interested in more coaching on your business plan, check out the resources below or give us a call to connect with a local lender — we're happy to help.

Additional Resources to Help You Write Your Farm Business Plan

Request your Business Plan Template and replay of our How to Write a Business Plan webinar here.

Click here to request a mentor with SCORE Small Business Resources.

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News and Views

How to start dairy farming easy steps for beginners.

Last Updated on May 15, 2024 by Admin

Dairy farming is an essential part of agriculture that includes raising animals, primarily cows and buffaloes, to make milk. After the milk is collected, it is turned into cheese, yoghurt, butter, and other dairy goods. This field has been traditionally popular due to the continuous demand for milk products and presents a stable business opportunity across the globe, including India. This guide aims to give beginners essential insights on initiating a dairy farm.

What is Dairy Farming?

What is dairy farming? It encompasses the management of dairy animals, primarily cows and buffaloes, for milk production. This agricultural practice is about milking and includes breeding, health care, and proper animal housing and nutrition to ensure maximum milk production and quality.

What are Different Types of Dairy Farming

Understanding the types of dairy farming is crucial for any prospective dairy farmer.

Cow Dairy Farming: This is the most common form in many countries, including India and the United States, where breeds like Holstein, Jersey, and Sahiwal are popular.
Buffalo Dairy Farming: Particularly prevalent in South Asia, buffalo dairy farming is favoured because the milk’s rich fat content is ideal for producing traditional dairy products like ghee and curd.
Mixed Dairy Farming: This involves keeping both cows and buffaloes, which can be beneficial in diversifying the dairy products offered.

How is Dairy Farming Practised?

Practical strategies on how to start dairy farming involve a combination of well-planned infrastructure, efficient feeding protocols, rigorous health management, and advanced milking techniques. Here is a deeper look into these essential practices that form the backbone of a thriving dairy farming operation.

Infrastructure

Proper infrastructure is not just a necessity but a foundation for the health and productivity of dairy animals. Shelters must be designed to protect animals from extreme weather conditions while ensuring adequate ventilation and sunlight. Additionally, ample space should be allocated for feeding, resting, and milking. Efficient waste management systems are also crucial to maintaining hygiene and controlling diseases.

The nutritional management of dairy cattle plays a critical role in the success of what is dairy farming. A balanced diet ensures that animals meet their health and production potential. This diet includes a combination of fodder, silage, and specially formulated feeds that provide a balanced intake of carbohydrates, proteins, fats, vitamins, and minerals. Regular access to clean water is equally essential to maintain hydration and aid in metabolic processes.

Health Management

Maintaining the health of the dairy herd is paramount. It involves regular veterinary check-ups, vaccinations, and deworming programs to prevent diseases and infections. Early diagnosis and treatment of illnesses are critical to prevent outbreaks and ensure the herd maintains optimal productivity. Additionally, good practices such as regular hoof trimming and teat cleaning before and after milking improve overall animal welfare and milk quality.

Milking Techniques

Employing modern milking techniques can significantly enhance milk yield and quality. It includes automated milking systems that ensure consistency and reduce physical stress on the animals. Maintaining strict hygiene during milking is crucial to prevent the transmission of pathogens and ensure the production of high-quality milk. Proper training of staff in milking procedures and machine handling is also essential to optimize the milking process and animal handling.

Pros of Dairy Farming in India

The advantage of dairy farming in India is substantial, supported by a vast and growing consumer market for milk and dairy products. India’s climatic conditions and agricultural orientation also offer a conducive environment for dairy farming.

Government policies and subsidies designed to promote the dairy sector include support for infrastructure development, financial incentives for new farmers, and subsidies on veterinary services and feed. This governmental backing helps reduce the entry barriers for new entrants in the market, making how to start dairy farming more accessible to a broader demographic. Additionally, the increasing trend towards health-conscious diets has boosted the demand for milk and organic dairy products, providing further growth opportunities for dairy farmers in India.

By addressing these areas diligently, anyone looking into how to start dairy farming can set up a sustainable and profitable dairy business. Proper implementation of these practices ensures not only the well-being of the livestock but also optimizes production and secures a significant return on investment.

Challenges in Dairy Farming

Despite the benefits, there are several challenges in how to start dairy farming:

Capital Investment

Starting a dairy farm requires significant capital investment. Costs include acquiring land, purchasing livestock, installing proper infrastructure, and buying necessary equipment. This high initial expenditure can be a barrier for new entrants into the types of dairy farming.

Labor Intensity

Dairy farming is labour-intensive, demanding considerable daily effort for feeding, milking, and cleaning. Managing a large workforce and ensuring they are skilled in dairy farm operations adds complexity and cost.

Market Fluctuations

Milk prices and its products are subject to market and environmental factors, leading to potential volatility in earnings. Farmers need to navigate these fluctuations to maintain profitability.

Regulatory Challenges

Farmers must follow strict rules about how to care for animals, ensure milk safety, and protect the environment. These rules can add to costs and require constant attention from management.

Disease Management

Maintaining animal health and preventing diseases is crucial. Disease outbreaks can lead to significant production losses and high veterinary costs, impacting farm viability.

These challenges underscore the complexity of what is dairy farming and necessitate careful planning and strategic management to overcome them and harness the advantage of dairy farming.

Expanding Health Awareness and its Impact on Dairy Consumption in India

The Indian dairy industry is experiencing a significant shift due to the growing health consciousness among consumers. This trend drives the demand for essential nutrients in dairy products, such as proteins, vitamins, and minerals. Consumers increasingly opt for value-added dairy items like flavoured yoghurts, fortified milk, and probiotic drinks, moving beyond traditional dairy offerings. Dairy companies are capitalizing on this movement by introducing a range of health-focused products, tapping into the consumers’ desire for wellness through their diet. This shift underscores the advantage of dairy farming as it adapts to meet changing consumer preferences.

Also Read: “ Understanding the Dynamics of Food Technology ”

Dairy farming demands a considerable investment of both money and effort. Proper training in animal care, milking techniques, and effective farm management is essential. Patience plays a critical role as well; it takes time for a farm to establish itself and become profitable. By mastering how to start dairy farming and understanding the types of dairy farming, you can create a sustainable and rewarding business. With dedication and the right strategies, the advantage of dairy farming can be fully realised, offering long-term success in this challenging yet fulfilling industry.

Is the dairy business profitable?

How much investment is needed?

How many cows are needed to start?

What are the major expenses?

Can I get a loan to start a dairy farm?

Common Food Sensitivities and Their Symptoms

Food Preservation With Vacuum Packaging – How & Why It Works

How Does Modified Atmosphere Packaging Protect Food Products?

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Starting A Dairy Farming Business in South Africa – Business Plan (PDF, Word & Excel)

Posted by BizBolts | All Articles , Business Ideas , Business Plans , Livestock Farming

Dairy cattle farming has long been one of the cornerstone of South Africa’s agricultural landscape, and for good reason. The country’s rich natural resources, favorable climate, and growing demand for dairy products make it an ideal location for aspiring entrepreneurs to venture into this profitable industry. In recent years, the South African dairy sector has seen a surge in demand, with consumers increasingly seeking high-quality dairy products, presenting a golden opportunity for those looking to start a dairy cattle farming business. South Africa’s dairy industry has demonstrated its resilience and growth potential, boasting favorable margins that entice both novice and experienced farmers. The ever-increasing demand for dairy products, including milk, cheese, and yogurt, is driven by a growing population and evolving dietary preferences. With its high nutritional value, dairy remains a staple in South African households, ensuring a continuous and robust market. This translates to steady income and profit margins that make dairy cattle farming an attractive investment opportunity. The dairy milk industry is the fourth largest agricultural industry in South Africa and plays an important role in the economy by providing food security and exports earnings. Local demand of milk is very high at over 2 million tonnes per annum. This article will outline how to start the dairy farming business in South Africa, and the dairy farming business plan – PDF, Word & Excel.

Dairy Farming Business Plan

One of the most important steps you can take before you venture into this business is developing a dairy farming business plan. A business plan will help you outline all the strategic and operational plans that you can put in place in order to run a successful dairy farming business in South Africa. A well-researched business plan can even help you determine whether a business venture is worth pursuing in terms of the costs and projected income from that business. Apart from helping you obtain a business loan, a dairy farming business plan will help you think through all the steps that you need to take in addition to pushing you to thoroughly research the market and motivate you to conduct an industry assessment. Therefore, you must consider developing a business plan that clearly outlines your vision, goals, mission and time bound steps you need to take in order to achieve your goals. Writing a business plan may be intimidating at first but after having done enough research you will notice how effective and doable developing one is.

Before you start a dairy farming business in South Africa, there are some important decisions which you have to make. You have to decide on the size of your dairy farming business ie how many dairy cows you will have at your dairy farm. There are many different dairy cattle breeds, so you have to select which breed you will use, location of your business, and your target market. The size of your dairy farming business will depend on the amount of capital you have, and your target market. It’s important that you get a good dairy farming business plan before you start dairy farming business in South Africa.

Land for Dairy Farm

You require land in order for you to run a successful dairy farm business in South Africa. Important factors to consider when choosing land for a dairy farm in South Africa are : electricity availability, distance to market, good pasture, good road infrastructure and availability of good water supply. Good feed supply on your dairy farm is a must – your forage can be hay, grass or silage. The size of land you must have will depend on the number of dairy cattle you intend to keep.

Housing & Equipment for Dairy Farm

Good housing for your dairy cattle is a must for you to be successful in the dairy farming business. There are several different forms of dairy cattle housing. The right dairy housing design depends on the local climatic conditions, budgetary constraints and availability of bedding materials. Dairy housing that provide group bedding systems for the cattle are cheaper to build. On the other hand, the dairy housing which provide individual bedding stalls for dairy cattle are more expensive to build, though they have more advantages. Good housing should have sufficient space that allows the cattle to move freely and gives them easy access to water and feed. It should also provide light, fresh and clean air to the cattle. Dairy cattle housing can be : dairy barns, sheds, pens and open paddocks. Essential equipment for a dairy farm includes feeding equipment, drinking equipment, milking equipment, buckets and pails. The costs of housing and equipment should be included in your dairy farm business plan.

Dairy Cattle

Dairy cows and bulls are required to start the dairy farming business in South Africa. There are a variety of dairy cows breeds to choose from. The most common dairy cows breeds in South Africa includes Holstein-Friesland, Jersey, Guernsey, Ayrshire, Swiss, and Dairy Shorthorn. The right breed for dairy farming depends on the various factors such as weather conditions, available feed, the intended final milk product, calving ease, disease resistance, fertility and milk production capacity. Milk production in dairy cows only happens after giving birth. For breeding, you can either use bulls or artificial insemination, each option has its own advantages and disadvantages. The dairy farming business plans should include the costs of acquiring the dairy cattle.

Feed And Nutrition

Providing your cattle with the right balance of nutrients is paramount for their health, milk production, and ultimately, the profitability of your venture. To begin, understanding the nutritional requirements of dairy cattle is essential. Different stages of a cow’s life, such as lactation, pregnancy, and growth, demand varying nutritional needs. Collaborate with a qualified animal nutritionist to formulate a well-balanced diet plan that meets these requirements. When it comes to feeding your dairy cows, you must consider high quality forage. For dairy cattle, green pasture is the most economic food source given its nutritional value and cost. Utilize locally available feed resources, like maize, sorghum, and pasture, to minimize costs and maximize nutrition. Implement a feeding schedule that ensures consistency and regularity in the delivery of feed. Grazing is another food source that is cost effective but it requires large tracts of land. Efficient forage and pasture management play a significant role. South Africa’s diverse climate offers an array of forage options, and implementing rotational grazing practices can help ensure your cattle have access to fresh and nutritious forage year-round. Supplementary feed for dairy cattle includes hay, silage, grains, protein supplements and commercial dairy feed. Ensure access to clean and fresh water at all times, as water is a fundamental component of their diet. The costs of feed should be included in the dairy farming business plan. It’s vital to keep an eye on feed efficiency and waste reduction. Implement proper feeding techniques to minimize spillage and waste. Regularly clean feeding areas to prevent contamination and spoilage of feed.

Health & Disease Management

One of the most critical aspects of running a dairy cattle farming business in South Africa is ensuring the health and disease management of your herd. The well-being of your cattle directly impacts the quality and quantity of milk production, as well as the overall profitability of your venture. To achieve success in this endeavor, you must establish a robust health and disease management program from the very beginning. First and foremost, regular veterinary care is essential for maintaining the health of your dairy cattle. It’s crucial to establish routine health checks, including vaccinations, deworming, and hoof trimming, in collaboration with a veterinarian. Establish a relationship with a qualified veterinarian who can provide routine check-ups, vaccinations, and immediate attention in case of illness. Additionally, invest in proper nutrition and hygiene practices to keep your cattle in top condition. Providing them with a balanced diet and clean, comfortable living conditions will go a long way in preventing diseases and promoting overall health. In South Africa, specific diseases like brucellosis and bovine tuberculosis are a concern in dairy farming. Therefore, it’s crucial to implement regular testing and monitoring to detect any potential outbreaks early on. Quarantine new animals before introducing them to the herd, and practice strict biosecurity measures to prevent the spread of diseases. Keeping meticulous records of your cattle’s health, treatments, and reproductive history aids in disease management and decision-making.

Budgeting and Financial Planning

You should give meticulous attention to budgeting and financial planning. This critical aspect serves as the bedrock for managing expenses, ensuring profitability, and securing the long-term sustainability of your farm. To establish a solid financial framework, begin by calculating your start-up costs, which should encompass expenses such as land acquisition, infrastructure development, cattle procurement, and essential equipment. Accurate estimation of these initial investments is paramount to set a strong financial foundation for your venture. Once you’ve assessed your start-up costs, shift your focus to creating an operating budget that outlines day-to-day expenses. This comprehensive budget should encompass feed and forage costs, labor expenses, utility bills, veterinary care, and overhead costs. A clear understanding of your recurring expenses is essential for effective financial planning. Furthermore, estimate your anticipated revenue by considering factors like milk production, calf sales, and any other income streams related to your dairy farm. Realistic revenue projections are vital to ensure that your income covers your expenses while providing a reasonable profit margin.

In addition to your operating budget and revenue projections, establish a contingency fund to address unexpected expenses or emergencies that may arise. This financial cushion is indispensable for safeguarding the stability of your operation in times of unforeseen challenges. Explore various financing options, such as loans, grants, or partnerships, and carefully evaluate their terms and interest rates to select the most suitable option for your farm’s financial needs. Efficient cash flow management is crucial for meeting financial obligations promptly, ensuring you have funds available for expenses like feed and veterinary care. Moreover, if you decide to leverage debt for financing, devise a well-thought-out strategy for managing and repaying loans to strike a balance between capital utilization and interest costs. Regularly analyze your profit margins to gauge the financial health of your farm, identifying areas where efficiency can be improved or costs reduced to enhance profitability. Maintain meticulous financial records to track income and expenses, aiding in decision-making and financial discipline. Lastly, consider long-term planning beyond immediate budgeting concerns, encompassing aspects like expansion, diversification, or succession planning to ensure the sustainability and growth of your dairy cattle farming business in South Africa.

The demand for milk in South Africa is very high. The average demand of milk in South Africa is about 2.3 million tonnes per annum. The dairy milk sector generates about R17 billion annually at the producer level, and some of the milk is exported outside South Africa. Identifying and understanding potential customers for dairy milk is a fundamental step in the successful marketing of dairy products in South Africa. The country’s diverse and growing population, coupled with shifting consumer preferences, offers dairy farmers a broad spectrum of customer segments to target. The food processing industry in South Africa heavily relies on dairy products, and dairy milk is a key ingredient in the production of items like yogurt, cheese, ice cream, milk powder and baked goods. Establishing contracts or partnerships with food processing companies can provide a stable and lucrative market for dairy farmers. Schools, colleges, and universities also represent a consistent consumer segment for dairy milk. It plays a vital role in school meal programs and provides essential nutrition to students.

Restaurants, cafes, and eateries in South Africa are experiencing growth due to urbanization, and they often require dairy milk for coffee, tea, desserts, and culinary preparations. Dairy farmers can target these businesses as customers for their milk supply. Additionally, retailers and grocery stores are essential outlets for dairy milk. Establishing distribution agreements with these retailers allows dairy farmers to reach a broader consumer base and ensure their products are readily available to customers. South African households are the primary consumers of dairy milk, using it for a variety of purposes, including drinking, cooking, and baking. As the population continues to grow, so does the demand from individual households for fresh and quality milk. South Africa’s reputation for high-quality dairy products also presents export opportunities for dairy farmers, particularly in the case of specialty items like cheese and powdered milk, which are in demand internationally.

Health-conscious consumers represent a niche market segment seeking nutrient-rich and low-fat dairy options. Producing dairy products tailored to this market, such as lactose-free or organic milk, can attract a specific customer base. Specialty markets, driven by South Africa’s diverse cultural groups with distinct culinary preferences, offer opportunities for dairy farmers to cater to specific dietary requirements or cultural preferences. Government institutions, hospitals, and correctional facilities often require dairy milk for nutrition and dietary programs, making them potential institutional buyers for dairy farmers. Engaging with local communities and events, such as farmers’ markets or community initiatives, can help dairy farmers connect with their immediate surroundings and build a loyal customer base that values fresh, locally-sourced dairy products.

Keys To Profitability

Profitability is the ultimate goal when embarking on a Dairy Cattle Farming Business in South Africa, and understanding and implementing the keys to profitability is essential for long-term success. Efficient feed management is the first crucial aspect, involving the creation of a well-balanced diet to meet your cattle’s nutritional needs while minimizing waste through practices like rotational grazing and optimizing feed conversion rates. Additionally, investing in high-quality herd genetics can lead to increased milk production and the production of superior calves for sale. Vigilant disease prevention and health management are indispensable. Regular veterinary care, vaccinations, and a robust herd health program can minimize treatment costs and reduce production losses due to illness. Efficient reproduction through strategies like improved calving intervals and artificial insemination is a key driver of profitability. Furthermore, meticulous cost control is vital, requiring continuous evaluation of expenses, identification of potential savings, and the exploration of cost-effective alternatives.

Staying informed about market trends and pricing fluctuations in the dairy industry is crucial for market awareness. Adapting and responding to market conditions are essential for making informed decisions about when to sell calves or adjust milk production. Accurate record-keeping and data analysis enable you to identify patterns and trends, aiding in informed decision-making. Diversifying revenue streams by exploring opportunities for value-added products such as cheese or yogurt can increase overall profitability. Long-term planning encompasses expansion, succession planning, and investments in technology or infrastructure, ensuring competitiveness in the industry. Lastly, continuous education and networking with industry peers are fundamental.

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 in South Africa, purchase our milk dairy business plan. We decided to introduce the business plans after noting that many South Africans were venturing into the dairy cow farming business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.

Our business plan will make it easier for you to launch and run a dairy 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 the dairy cow farming business plan will lay out all the costs involved in setting up and running the milk dairy farming business. The business plan is designed specifically for the South African market.

USES OF THE DAIRY COW FARMING BUSINESS PLAN (PDF, WORD AND EXCEL)

The milk dairy 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 dairy cattle farming business
As a dairy farming project proposal
Assessing profitability of the dairy farming business in South Africa
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 FARMING BUSINESS PLAN (PDF, WORD AND EXCEL)

The business plan includes, but not limited to:

Market Analysis
Industry Analysis
5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
Marketing Strategy
Risk Analysis
SWOT & PEST Analysis
Operational Requirements
Dairy cattle farming guide (Technical Details of how to feed and raise the dairy cattle)
Operational Strategy
Why some South Africans in the dairy farming business fail, so that you can avoid their mistakes
Ways to raise capital to start your milk dairy farming business in South Africa
Directory [Contact Details for South African suppliers of feeds, equipment, contacts of dairy farming training companies in South Africa, contacts of dairy farming organisations in South Africa]

The Dairy Farming Business Plan package consist of 4 files

Dairy Farming Business Plan – PDF file (Comprehensive – 132 pages)
Dairy Farming Business Plan – Editable Word File (Comprehensive – 132 pages)
Dairy Farming Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 53 pages)
Dairy Farming Business Plan Automated Financial Statements – (Editable Excel file)

Testimonial 4

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Testimonial 5

The BizBolts poultry business plan led us down the path from start to finish. Contact details of suppliers of key requirements were included in the business plan. It helped us crystallize our strategy, and the business plan was well received by the bank.

Testimonial 3

The business plan has a highly professional look and feel. The research really helps me look deep into the market that I am targeting, it’s well suited for the South African market. The business plan clearly outlined everything I need to start the business and the costs. It’s now easier to budget and plan. Thank you very much.

Testimonial 6

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Testimonial 2

I am extremely pleased with the business plan and financial statements. The business plan is very detailed & it meets my requirements. I feel better equipped with tools that can help me secure funding. I would have no hesitation of recommending your business plans to other people.

Testimonial 1

Many thanks to the BizBolts team for putting together a fantastic business plan, I could not have done this business plan on my own. I managed to get funding from investors to start my butchery business using your business plan.

GET THE DAIRY FARMING BUSINESS PLAN (PDF, WORD AND EXCEL) - R500 Only.

We decided to make the business plan affordable to anyone who would want to start the business, and the price for the pre-written business plan is only 500 Rand.

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What’s next for dairy?

Consumer behavior in an era of mission-driven and price-sensitive purchasing has caused uncertainty for dairy, as for most consumer packaged goods (CPG) companies. Supply- and value-chain disruptions have compelled the sector to manage complexity and higher costs.

The industry has proven its resilience and ability to adapt creatively, and its confidence is growing. New realities will continue to challenge the industry—from inflation, to fluctuations in demand, to labor shortages and logistical bottlenecks. To maintain profitable margins in 2022 and beyond, close attention must be paid to evolving consumer and economic trends.

In this article, we look ahead, considering ways to guide the industry in 2022 and beyond. We base our insights and recommendations on market observations and research, a September 2021 proprietary survey of US CPG consumers, an October 2021 proprietary survey of dairy executives, and 20 in-depth interviews with United States-based CEOs and senior dairy executives in the fourth quarter of 2021.

Consumer impulses and market-shaping trends

A surge in demand for dairy products in 2020 improved the overall economic performance of the industry in the midst of great challenges. In contrast, 2021 saw the stabilizing of demand and the emergence of new growth inhibitors. As industry leaders plan their consumer-facing and internal strategic approaches for the future, certain market-shaping trends will be critical.

The last couple of years have significantly altered how consumers shop for CPG goods. Most metrics of consumer behavior (such as confidence and price sensitivity) have improved since last year but are still up from 2019 levels. For example, 36 percent of consumers cut back less on spending in 2021, compared to 41 percent in 2020 (exhibit). However, today’s levels of cutting back are 9 percent higher than in 2019. Similarly, 45 percent of consumers report paying attention to prices in 2021, compared to 51 percent in 2020 but 29 percent prior to the pandemic. 1 Global Consumer Survey 2021

Consumers are exhibiting a range of sometimes conflicting impulses. They are both more likely to purchase less expensive products—with trade-off rates 2.3 times higher in 2021 than 2019—and to pay premiums on company attributes: 59 percent are willing to pay more for healthier products and 54 percent for better animal welfare, for example. 2 Global Consumer Survey 2021

Against this backdrop, several key consumer themes are driving major headwinds and tailwinds for the industry:

Commitment to sustainability , especially reducing the carbon footprint, is a company value that half of consumers are willing to pay more for in 2021. Of those consumers who switched to more expensive dairy brands, 22 percent report doing so for sustainability reasons. 4 Global Consumer Survey 2021 This indicates accelerated appreciation for dairy as a sustainable category, and recognition of how the industry has embraced green practices. That said, dairy production makes an undeniable contribution to greenhouse-gas emissions. It is crucial that the industry continue investing in areas such as responsible waste disposal, water and energy management, recyclable packaging, and renewable energy. It is also important that, where possible, dairy leaders support farmers in adopting green practices.
Health and wellness: This year, four in ten consumers who purchased more dairy alternatives than last year did so based on perceived health benefits, a two percent decrease from 2020. That said, health and wellness remain key drivers for choosing dairy alternatives, with half of consumers reporting “less fat” and “no artificial ingredients’ as important characteristics; nearly half list “enriched” as another desirable feature. 4 Global Consumer Survey 2021 Leaders should continue strengthening the narrative of dairy’s many attributes: new product lines may usefully position dairy as a competitor rich in protein, nutrients, and vitamins.
Brand experimentation: Like most CPG products, dairy is vulnerable to brand experimentation. Loyalty shake-ups appear here to stay, with seven percent more consumers changing brands in 2021 than in 2019. 5 Global Consumer Survey 2021 Of the two in five consumers who report trying a different brand, and of the 34 percent who report trying a different retailer, store, or website, over 80 percent intend to continue with those shopping changes. 6 COVID US Consumer Pulse Survey 2021. Investment in brand differentiation, from seasonal ice-cream flavors and indulgent dairy desserts to layered yoghurt and specialty cheeses, can uplift brand propositions and attract new consumer groups.

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Remaining resilient in the face of inflationary pressures.

Nearly half of executives surveyed expect more than five percent revenue growth over the next three years, while six in ten saw increased margins over the last 12 months. 7 COVID US Consumer Pulse Survey 2021. However, there are three shadows that loom over this optimism: labor shortages, freight disturbances, and input-cost escalations. Major shocks incited by the pandemic, as well as climate disruptions, contributed to a perfect storm, allowing inflationary pressures to hinder the dairy industry’s access to workers, shipping lines, and commodities.

Labor shortages: Currently, the labor market is undergoing the highest supply-and-demand pressures since the Great Recession. Job openings are at a record high, 41 percent above pre-pandemic rates, and these rates will likely continue to outpace the rate at which unemployment is dropping. 8 MGI US Labor Market Constraints 2021. Within dairy, the tighter and more competitive funnel for labor in 2021 is evident in high employee attrition and wage costs. Dairy manufacturing and processing plants are operating, on average, with 11 percent of their target labor force unfilled. Executives also report wage-cost increases of 11 percent in 2021, coupled with higher signing bonuses, expanded benefits, and greater competition for hiring. 9 IDFA Member Survey 2021. Over half of surveyed executives are committed to implementing permanent hybrid options. Many are also considering how to utilize flexible hours, days, and geographies, as well as leadership training and quicker promotions, to attract and retain a vibrant workforce.
Freight disturbances: The past two years marked a major reconfiguration of the freight landscape, with sea- and land-freight prices increasing in 2021 by up to 400 percent and 25 percent respectively across industries. 10 Baltic Sea Freight Exchange. What this means for the dairy industry ranges from longer lead times, to skyrocketing prices for simple, necessary goods such as valves. One hopeful projection is that sea-freight cost hikes, worsened by port congestion and decreased availability of ships and containers during the peak of COVID-19, will stabilize in the short term. This will ease the burden for dairy companies who source or deliver goods internationally. On the other hand, e-commerce penetration and fewer available truckers render land-freight challenges more permanent. Executives are already exhibiting their adaptability in these complicated conditions, with nearly 100 percent having changed suppliers in 2021. 11 IDFA Member Survey 2021.
Input-cost escalation: Some of the major consequences of labor and freight disruptions have been limited supply, stalled distribution, and cost elevation of hard and soft commodities, from feed and chemicals to packaging materials and energy. The drivers of such volatile inflationary pressures are likely to subside within the next 6–12 months, but uncertainty due to structural increases in land-freight prices could complicate the recovery. In every week of 2021, according to dairy executives, a crucial input was short, out of stock, or threatened. Executives report input costs increasing, on average, by nearly 20 percent, and up to 30 percent in some hard commodity categories, resulting in moves to rationalize stock-keeping units (SKUs), eliminate product lines, and limit production. 12 IDFA Member Survey 2021.

How can the dairy industry prepare for the future?

Resilience for the dairy industry will depend on successful business-model adaptation, especially in terms of attracting labor, rethinking shipping capabilities, and passing on higher input costs where possible. It is important to consider what will soon be table stakes across the dairy industry, and what will elevate companies as leaders in the field.

In both the short and medium term, dairy executives can take various strategic actions to engage with consumer trends: improving pricing strategies to ensure that the company’s value proposition remains relevant to customers in inflationary times; and reformulating, diversifying and differentiating products to target consumer preferences and more attractive segments. The sooner companies focus on better understanding the drivers of customer loyalty, experimentation, attrition and churn, using data and analytics, the sooner they can set a virtuous growth cycle in motion.

Finally, the current attrition of talent is likely to continue; it will be important to elevate and strengthen the company value proposition for employees as well, becoming an employer of choice—from HQ to plants, warehouses and offices.

Christina Adams is a partner in McKinsey’s New York office, where Charlotte Soehner is a consultant; Ludovic Meilhac is a partner in the Stamford office; and Roberto Uchoa is a senior partner in the Chicago office.

The authors wish to thank Melanie Lieberman for her contributions to this article.

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Dairy Farm Business Plan Template & How-To Guide [Updated 2024]
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 ...
Dairy Farm Business Plan [Free Template
Writing a dairy farm business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary. An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and ...
Dairy Farm Business Plan Template (2024)
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 ...
How To Plan, Start, and Manage a Dairy Farm Business
Planning waste management. Waste management is one of the most challenging parts of managing a dairy farm business, as dairy cattle produce impressive amounts of manure each day. The numbers speak for themselves: A 1,400-pound dairy cow can generate around 120 pounds (1.9 cubic feet) of feces and urine each day.
8 Things You Need to Know Before Starting Your Own Dairy Farm
Consider creating a farm management team or profit team that engages your consultants to be active participants in the farm's progress. Develop a Business Plan and SWOT Analysis It is important to remember that a dairy farm is a business. Development of detailed business plan and a SWOT analysis (Strengths, Weaknesses, Opportunities, and ...
Maximizing Profits: Strategies for a Successful Dairy Farm Business Plan
A well-crafted business plan helps outline the strategies, goals, and financial projections necessary to maximize profits and ensure the sustainability of your dairy farm. In this section, we will explore the key components of a dairy farm business plan, including cash flow planning and the importance of consulting with industry experts ...
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1. Perform market analysis. Starting a dairy farming business requires a comprehensive understanding of the market. A thorough market analysis will help you identify the demand for dairy products, understand the competitive landscape, and determine the best strategies for entry.
How to write a business plan for a dairy farm?
Let's go through the content of each section in more detail! 1. The executive summary. In your dairy farm's business plan, the first section is the executive summary — a captivating overview of your plan that aims to pique the reader's interest and leave them eager to learn more about your business.
The #1 Dairy Farming Business Plan Template & Guidebook
However, with the right planning, you can improve your chances of success. The #1 Dairy Farming Business Plan Template & Guidebook provides an easy-to-follow and comprehensive guide to help you develop a comprehensive business plan for your dairy farming venture. This template and guidebook covers all key areas of developing a successful dairy ...
How to Start a Dairy Farm: 15 Steps (with Pictures)
Wait to buy the second half the herd until the first group is about to go dry, so your farm can produce milk year round. 7. Research the local milk market. If you're starting with just a few animals, talk to nearby dairy farmers for advice on selling to local stores and individuals.
Dairy Farming Business Plan [Sample Template]
A dairy farm is of course a thriving and profitable business because of usefulness of beef and milk. People eat beef, drink their milk, and use their fur and skin. With cattle milk, cheese can be made, along with other dairy products. Companies in the dairy farms industry primarily raise cattle for milk.
Dairy Farm Business Plan Template
2.1 The Business. Milk&Milk will be a registered American dairy farming business plan based in Spring Valley, a village in the Rockland County of New York, at a 40-minute drive from the center of New York City. Nearly 80 acres of land in the outskirt of village has been selected and acquired as the farm site after detailed market analysis.
Plan Your New Farm Operation
The Farm Business Plan Balance Sheet can help gather information for the financial and operational aspects of your plan. Form FSA-2037 is a template that gathers information on your assets and liabilities like farm equipment, vehicles and existing loans. FSA-2037 - Farm Business Plan - Balance Sheet. FSA-2037 Instructions.
Dairy Farming Business Plan Guide
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.
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An example template is provided to help create a farm operating plan for a dairy farm. Make a few copies of your final plan and be sure they are easy to find. Share them with your back up operators so they can make sure your cows are milked and given proper care. Be sure to have the name and address of the farm (s) located on the protocol so ...
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Resources and tools to develop a business plan. For ag professionals or producers who want to develop a business plan for the dairy operation, this library of resources provides tools that may be useful. The site includes a Business Plan Template, Business Planning Factsheets, a Case Farm example to show how a finished product may look, and a ...
Writing a business plan
Your plan should answer critical questions about your farm's purpose, status, ambitions, strategies, and success indicators. Regularly update your plan to adapt to changing circumstances. Guidance is provided to create a comprehensive plan, including vision statements, goals, and actions. Writing a business plan helps you organise your thoughts ...
How to Start Dairy Farming in 7 Steps
Dairy Farming Business Plan. 1. Select Location for Your Dairy Farm. Elevated land is better to avoid stagnation of rainwater and wastes in the area. Ensure that the foundation soils are not heavily desiccated or dehydrated, since they become prone to fissures and cracks during the rainy season. Lands too elevated will not be able to hold water ...
Starting Dairy Farming Business Plan (PDF)
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Free Farm Business Plan Template
Five-year plan. Year One: 20XX. Create a legal business entity. Apply for necessary licenses and permits. Finalize farm layout. Procure additional equipment. Establish social media profiles. Build a small farm stand. Attend farmer's markets.
How to Write a Farm Business Plan
Give us a call at 888.339.3334 or view our full list of services here. Congratulations! You've made it through each section of how to write your business plan! If you're interested in more coaching on your business plan, check out the resources below or give us a call to connect with a local lender — we're happy to help.
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Practical strategies on how to start dairy farming involve a combination of well-planned infrastructure, efficient feeding protocols, rigorous health management, and advanced milking techniques. Here is a deeper look into these essential practices that form the backbone of a thriving dairy farming operation. Infrastructure.
Starting A Dairy Farming Business in South Africa
Dairy cattle farming has long been one of the cornerstone of South Africa's agricultural landscape, and for good reason. The country's rich natural resources, favorable climate, and growing demand for dairy products make it an ideal location for aspiring entrepreneurs to venture into this profitable industry. In recent years, the South African dairy sector has […]
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An easy to use, online tool - needing only a small amount of information - Farm Business Snapshot gives you an overview of the costs and income associated with running your farm business. It is the starting point to know your numbers and identify opportunities to manage input costs. DairyBase. A more comprehensive farm business analysis ...
What's next for dairy?
The dairy industry has an opportunity to adapt to respond to changes in consumer demand and supply challenges. A surge in demand for dairy products in 2020 improved the overall economic performance of the industry in the midst of great challenges. In contrast, 2021 saw the stabilizing of demand and the emergence of new growth inhibitors.
Steps to Create a Business Plan
Step 1: Executive summary: The executive summary is the most important part of your plan - a one-page summary of the entire business plan. And it will probably be the part of the business plan that you circle back to and write last. Step 2: Description: The why — your company's purpose. It will include your mission statement, the name of ...

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1. Executive Summary

Introduce your Business:

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Target market:

Market size and growth potential:

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