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Dairy Farming Business Plan Guide

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

Dairy Farming Business Plan.

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

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

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

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

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

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

HF Cow.

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

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

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

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

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

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

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

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

Jersey Cow.

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

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

Dairy Farming Business Plan – Vaccination Schedule in Dairy Farming:

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

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

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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 me your phone number sir.i need to talk to you..ok sir.


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

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

By : Business Desk

Local News Desk

Last Updated: November 18, 2022, 12:45 IST

Delhi, India

Milk production in India increases by more than 3% to 4% every year.

Milk production in India increases by more than 3% to 4% every year.

To start a dairy farm, it is mandatory to register with the Food Safety and Standard Authority of India (FSSAI).

A dairy farm business is typically referred to as an all-season opportunity as there’s a constant demand for milk, as well as other dairy products, across the globe. According to reports, milk production in India increases by more than 3% to 4% every year. Over the years, the dairy farming industry has grown to become a lucrative sector for entrepreneurs.

An individual venturing into this business is usually expected to devote 14 to 18 hours to it every day. In addition to that, extensive effort and useful resources are also necessary for the successful operation of a dairy farm. If you’re planning to start a dairy farm, then you must be aware of these factors:


The Department Of Animal Husbandry, Veterinary & Dairy Development should be contacted first to open a typical individual dairy farm. There is no need to contact any other government agency if your farm is registered with the Dairy Cooperative Society.

To start a dairy farm, it is mandatory to register with the Food Safety and Standard Authority of India (FSSAI). If it’s a large farm, then the pollution control board’s approval might be needed. The requirements are set by the Bureau of Indian Standards for a dairy farm. These consist of the following:

BIS IS 11799:1986 (R2002): For Cattle Housing In Rural Areas

BIS IS 11942:1986 (R2002): For Gaushalas and Other Organized Milk Producers

BIS IS 12237:1987 (Reaffirmed 2004): For a loose housing system for animals

After certifications, there are a few factors a businessman has to take care of, which are:

Outline a business plan that includes – mission, vision, location, land, cattle vaccination, shed, food and equipment.

Selection of cattle and its breed. You can either go for popular buffalo breeds like Murrah, Mehsani, Surti and

Jaffarabadi or milch breeds like Gir, Tharparkar and Sahiwal, to name a few.

In case of a loan, you can get a subsidy from the government under the Dairy Entrepreneurship Development Scheme, which is provided by the National Bank for Agriculture and Rural Development (NABARD)

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dairy farm business plan in india

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

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Dairy farming in India is an ‘all season’ business. Efficient management of a dairy farm is the key to success. In India cow farming and buffalo farming are the backbone of dairy industry. Here is the complete guide to start and manage a cattle farming business for dairy purpose.

Download Dairy Farm Project Report

Introduction on Dairy Farming in India

Dairy farming has been an age-old business in India passed down from generation to generation. During the late 20th century, this tradition saw a decline. However, thanks to the advancements made in science and technology, a huge progress has been made. The contribution made by Amul in the form of ‘White Revolution’ played a very important role in transforming the dairy industry in India from its stagnation level to a world leader.

A dairy farm in India

Cows farms and buffalo farms are the foundation of the dairy industry. Breeds of buffaloes like Jaffarbadi, Mehsani and Murrah are the high breeding ones while Red Sindhi, Gir, Rathi and Sahiwal are the top milk breeders from India.

Pre-Requisites for Dairy Farming

Like any other farming, dairy farming also has a list of pre-requisites. Some of these are as below:

  • Affection towards cows and buffaloes
  • Basic cleanliness practices
  • Knowledge about managing dairy farm scientifically
  • Business tactics
  • Ready to work hard day and night without a holiday

The above list is a basic list that can go endless. Commercial dairy farming is very different from the traditional farming as it has a lot of technological requirements and challenges.

Choosing Healthy Cattle for Dairy Farm

This is the first requirement for a successful cattle farming. The animals must be healthy, with good weight and build. While purchasing cattle the eyes, nose, udders, mobility, coat and other features must be carefully observed.

  • Eyes: Eyes must be clear and bright with no discharge. They must not appear bloodshot or crusty as they are indicative of infections.
  • Nose: A moist muzzle with constant licking is favorable.
  • Breathing: The breathing of the cows must be normal and not laborious or irregular. Wheezing during breathing with or without discharge suggests infection.
  • Coat: The coat must be clean and glossy with no signs of ticks and lice. In case of ticks, the coat would appear matted.
  • Udder: Udders must be healthy with prominent milk veins sitting forward. They must not be sagging or meaty in appearance. In addition the udders must not show too much sideways movement when walking.
  • Attitude: Animals are generally alert and curious with a self-contented, calm look. They move about in herd and are together. Animals that stand apart or seem disinterested in the happenings around are signs of unhealthiness.
  • Age: The age of the animal must be checked by looking at the dentition although this is not exactly a sign of good health. You must find out the age of the cattle to setting up and manage a dairy farm efficiently.
  • Mobility: Animals must rise easily from sitting position without any limps or difficulty. Sitting in hunched position, limping are signs of abnormalities or deformities.
  • History: It is important to look at the history of the animal including details like previous calvings, milk yield, hypocalcemia, etc.

Shelters in Dairy Farm

Shelters for animals are an important factor for optimizing the yield. Stress and weather changes cause a decline in productivity. The housing facilities must be clean, spacious and must allow flow of natural air and sunlight.

House Construction in Dairy Farm

The cattle shed must have a floor space of 10 feet by 5.5 feet per animal with a 1.5% slope towards the drain. The floor must be made of rough concrete material. The sheds must be at least 10 feet high. They may be constructed using bricks, RCC or can be thatched. Only the western side of the shed must be walled while the other three sides must be left open. However, the open sides must be covered with gunny cloth during winter to protect the animals from cold. There should also be a provision for sprinkling water on the animals every half hour during summer. This reduces heat stress to a great extent. The eastern side of the shed is open outdoors for free roaming space. The roaming area is covered with trees providing shade. Neem and mango trees are the most preferred trees for shade in the roaming area.

Manger Arrangement

The mangers are located on the western side of the shed. They are built 1 foot above the floor level; they are 2 feet wide and 1.5 feet deep. Drinking water must be kept beside the manger. The mangers are generally constructed along with the shed construction. At some places, they may provide a separate box as mangers.

Heat Stress Management in Cattle Farming

Animals are extremely sensitive to heat and heat stress affects their milk production to a great extent. Following are the noticeable symptoms of heat stress:

  • Panting fast
  • Presence of foam or drool around the mouth
  • Visible chest movement
  • Excessive drooling with open mouth
  • Extended neck

Several of the above symptoms occurring together are signs of heat stress. As said before the sheds must have adequate air circulation and sprinklers to spray water. Water evaporation from the body leads to cooling of the body. Thus the body temperature decreases and the animals are comfortable. Therefore, food energy is utilized for milk production and not in other bodily functions like blood pumping, breathing, panting, etc.

Animal Feeding in Dairy Farming

Food is one of the most basic aspects of living beings for they perish owing to lack of food. Cattle feeding cost a total of 70% of the milk production. Cattle are fed with fodder, grains, brans, green fodder, straw, oil cakes and other such cattle feed.

Fodder Provision

Hydroponic fodder in cow farming

The feed for a normal adult animal is 15-20 Kg of green fodder and 6 Kg of dry fodder per day. The green fodder is harvested during the flowering stage and the surplus fodder is preserved for hay. Preserved fodder is used during summers when fresh green fodder is unavailable. It is necessary to strike a balance between the various nutrient requirements for optimal milk production. If the animals are given an exclusive dry fodder diet, then they must be given Urea Molasses Mineral Block as the supplement. They are also fed with bypass protein feed or compound cattle feed for an efficient production of milk and better body maintenance. In case the feed needs changing, the change must take place gradually. To increase digestibility and reduce wastage, fodder is chaffed and they are fed 3-4 times a day in equal intervals. This rationing is an attempt at reducing wastage and increasing digestibility.

Water Provision

Water is needed for digestion, nutrient distribution, excretion, maintenance of body temperature and of course, milk production. Every liter of milk produced needs an additional 2.5 liters of water since milk contains 85% of water. Hence, a normal healthy adult animal requires 75 to 80 liters of water per day usually. This can increase to 100 liters during summers. They must have regular access to clean drinking water. Crossbred buffaloes and cows are given a bath twice a day during summer to maintain their body temperature.

Pregnant Animals

Female calves must be given good care and proper nutrition to ensure healthy and rapid growth. Rapid growth helps them attain puberty early. They calve at 2 to 2.5 years of age if given timely insemination. Maximum care must be taken during last three months of pregnancy since the foetus develops rapidly at this time. The daily food requirement of a pregnant animal is as below:

The following points must be considered with utmost priority while taking care of pregnant animals:

  • Provide enough space for standing and sitting comfortably.
  • They must be given adequate amounts of ration to ensure timely milk production in adequate amounts and also to reduce the possibility of milk fever, ketosis, etc. at the time of calving.
  • During pregnancy, special attention must be paid to water requirements; there should be round the clock supply of clean, drinking water.
  • During the last trimester of pregnancy, the animals must not be taken far away for grazing and uneven paths for grazing must be avoided.
  • Lactating animals must be dried within 15 days after the 7th gestation month.
  • From the 6th or 7th month of pregnancy, the cow’s body, back and udders must be massaged- this is especially in case of first or second pregnancy (heifer cows).
  • Heifer cows are tied along with the milking animals from the 6th or 7th month of pregnancy.
  • The pregnant animals are tied separately in a clean and dry area with ample sunlight about 4-5 days before calving.
  • Paddy straw is the bedding material for animals and they are spread on the ground.
  • During the last 2 days before calving the animals are kept under observation.

Post Calving Care and Nutrition

During calving, animals undergo a lot of stress. Hence they would have a low appetite and tend to eat far lesser than what their body needs. Since the appetite is low the cows and buffaloes are given boiled rice, wheat bran, wheat mixed with edible oil, jaggery, boiled millet, rice gruel, ginger, black cumin, etc. The food must be light, warm, palpable and mildly laxative. This type of diet must be given for 2-3 days after calving and it helps in early expulsion of placenta. It advisable to give the animals fresh green fodder and water. While the ration food must be warm, the water must not be boiled or hot. It should be fresh water. Clean drinking water is very necessary for milking cows else they are likely to develop diseases.

Taking Care of the Newborn

The life of a calf is divided into 2 parts as the first 24 hours after birth and the rest of the period.

Part 1- First 24 Hours

The first 24 hours has a deep connection with its life later. If not given proper care, the calf may develop diseases, perish or be an underperformer. The first hour after birth is called as the ‘golden hour’ since this is a critical period. The following points must be taken care of during that period:

  • Clean the mouth and nostrils to help it breathe
  • Allow the mother to lick the calf clean as it stimulates circulation and helps the calf stand up and walk.
  • Give the calf 2 litres of colostrum (first milk produced) within the first 2 hours of birth and then again 1-2 liters depending on weight of the calf within the next 10 hours.
  • The calves must be de-wormed every month upto 6 months of age once the calf is about 2 weeks old.
  • Vaccination must be done at the age of 3 months.
  • Calves must be provided with starters for good growth and early maturity from the 2nd week of birth.

Importance of Colostrum

Colostrum is an important feed for newborn milk especially is contains high amounts of proteins and antibodies which help build immunity. It helps the calf ward off infections. Most calves do not nurse adequate amount of colostrum from their mothers therefore hand feeding is necessary. This ensures that the calf has the required amount of colostrum. However, feeding colostrum after the first 24 hours has passed would not help in warding off infections or building immunity.

Diseases in Cow Farming

After calving.

After calving there is a huge demand of nutrients, minerals and other essentials requirements in the body. Unless managed properly, animals very easily develop metabolic diseases that would affect milk production drastically. If not given timely treatment it might even lead to death. The following are some of the diseases that may develop during the period after calving:

Diseases due to Faulty Feeding

The digestive system of cattle is a complex one involving four different chambers, a host of microbes, etc. Hence any change in feeding pattern would lead to imbalance in the microbes and hence different diseases like bloating, laminitis and rumen acidosis. While home remedies can take care of bloating, laminitis and acidosis need a veterinary care.

Milking machine in dairy farming

This is major disease causing heavy loss in dairy farming. It can lead to lower milk production, permanent damage to udders and even death in severe cases. This disease is on the rise owing to more and more farmers opting for crossbreeding. Exotic breeds like Jersey are also highly susceptible to mastitis. A way to deal with the disease is to understand it properly and give timely treatment. Some of the practices followed maybe:

  • Thorough cleaning of udders before milking
  • Quick, hygienic and complete milking
  • Teat dipping or spraying the teats after milking. This practice must be continued even after drying.
  • Proper fly control
  • Milk the cattle with chronic mastitis at the end.
  • Do not let the animals sit for at least half hour after milking.

Vaccination in Cattle Farming

There are some highly fatal diseases like foot and mouth diseases, black quarter, hemorrhagic septicemia, rabies, infectious bovine rhinotracheitis, theileriosis and anthrax that are endemic in nature. These cause heavy losses to the dairy business. Fortunately they can be controlled by vaccination. The schedule for vaccination is as below:

Potential in Dairy Farming

Besides the raw milk there is a huge market of milk products like powdered milk, ghee, cheese etc. Even the waste in dairy farming is valuable and has good market demand. The ‘gobar’ or cow dung is the raw meterial of organic compost or vermicompost. If you’re using ‘desi cow’ or Indian cow breed in your cow farm then the cow urine is a valuable resource to make ‘panchagavya’ or natural insecticide in organic farming .


Leave a Reply

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My name is Lavy and I wish to start a diary farm. On my land which is about 81 kms from Mumbai or 40 kms from Panvel

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Dear Sir/Madam,

I have a land (10 Bigha) near Malanpur Industrial area. 28km from Gwalior (MP). I want a setup of Dairy farming & other related business from Agriculture.

Can you Guide me or help for setup of business ?

I can’t a big investment on this pls suggest me from small investment & profitable business.

Thanks & Regards

Gurmeet Singh

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i m interested in cow n bufello dairy farming business but i m buginner for this business…could you help me with your number so i can contact you for detail…

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requesting to send all details for new person those wants to start dairy farm with 20 cows initially.

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Nice explanation. what are best suitable breeds that can be preferred to yield more milk in Guntur area

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Dery fharming tareing

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I am interested cow farm and Buffalo farm. Please send all details

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Hi ,this is Amol From Nagpur district, I am intrested in this well business but I am freshers I don’t have any knowledge about this business, if you are really helping to business for new comers ,I will be thankful and i can start a well by your project

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I need loan diary farming

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I want to start cow dairy farming in Haryana with 10 cows I want to know more information dairy management

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I want to understand how farming business can setup in Varanasi. Please help me to understand the process and requirements.

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i want project report for 60 cow with shed drawing and others for bank loan so please give details in your project report contains all thinks like shed, milking machine, space for calf, and milking animal and non milking animal, fodder storage space and other utilities which is required but i required in Guajarati, please

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

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

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

Dairy Farm Shed Construction.

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

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

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

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

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

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

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

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

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

Cost of Dairy Farming in India.

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

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

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

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Ultimate Guide: How To Start a Dairy Farm in India


We all know how dairy products hold an important place in most Indian households. From a health to religious perspective, dairy products have always been deemed a valuable commodity. A dairy farm business has a huge potential in India as we are blessed with the highest milk production and consumption worldwide. 

According to The Hindu, India’s dairy sector has seen a substantial rise of 6.4% annually in the last four years, beating the global average of 1.7%. That’s why dairy production made up about 4.2% of India’s GDP in 2020. So if you are looking forward to starting a dairy farm business, the right investment strategy is the foundation. 

From availing of a dairy loan to a successful MSME registration , we’ve got you covered with a complete guide on setting up a dairy farm in India. Whether you have already started dairy farming or wants to learn how to start a dairy farm in India, you will know everythingin detail.

Let’s get started:

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What is A Dairy Farming?

Dairy farming is type of agriculture practice that involves production of milk, which is processed (either on the farm or at a dairy plant, either of which may be called a dairy) for eventual sale of a dairy product.

A step-by-step guide to starting a dairy farm in India

A robust business plan.

Like any potential start-up, you must formulate a business plan for a dairy farm. Good dairy business planning can be done by identifying current market trends, target areas, dairy loan requirements, etc.

The eventual goal is to serve customers, conduct thorough research by understanding the geography, average income, culture, household types, etc. Also, keep in mind the following factors:

  • The type of dairy animals such as cows, buffaloes, etc.
  • Number of animals
  • A blueprint regarding facilities like breeding, milking, housing, cleaning, etc.

Choose location

Based on the physical plan formulated in the last step, you need to choose an ambient location that fulfills the requirements. Most probably, you would need a business loan to set up a new dairy farm. Hence cost-effectiveness becomes a major factor in deciding the location.

  • Urban areas: If you plan to choose a location near cities, the market is assured, and transportation costs are minimal. In addition, high prices of dairy products in cities can generate high profits.
  • Rural areas : It offers less labor and input costs and a vast area for breeding and fodder cultivation.

Plan investment

Any new business needs the proper investment structure to become profitable. Yes, your investments will directly depend upon every facility and asset of your dairy farm. However, a wise investment can be the key to a thriving dairy business, starting from getting a dairy loan.

Several ways might help you arrange the necessary business loans and finances, such as:

  • Borrowing money 
  • Self-help communities
  • Subsidies by NABARD/Government

Luckily, various companies provide dairy loans to small businesses. You can avail of a dairy loan of the required amount in a short span of time, with a reasonable interest rate and time.

Legal compliance and registration

After getting your necessary finances like the dairy loan, it’s time to get your business/start-up registered legally. No business can run without a license. Hence, MSME registration becomes a mandatory step here. With fixed charges by the government, you need to obtain the following permits:

  • Dairy farm license
  • FSSAI license
  • Shed license
  • Company registration license
  • Trade license
  • Registration with ROC or Registrar of Firms

Any small business must stay updated with details and requirements for MSME loans to avoid last-minute hassles and discrepancies.

Purchasing assets

After arranging the finances and licenses, it’s time to utilize the dairy loan to purchase the required assets for your dairy farm. This step can be a deciding factor for your firm’s future success.

  • Purchase of animals: Animals are the primary resource of your dairy farm as they are responsible for providing milk. Whether you choose a cow, buffalo, or any other animal, be mindful of the factors like its breed and the quality of milk produced by them. For example, exotic cow breeds like Jersey are known to produce more milk quantities than Indian breeds.
  • Purchase of machinery: Important machinery and equipment are also a considerable part of the investment. Farm equipment includes milking machines, pasteurizers, homogenizers, storage tanks, etc. Other essential types of machinery include a tractor, fodder truck, washer, generator, feeder, motor and pumps, etc.

Adequate infrastructure

Good and functional infrastructure can significantly improve the rate of production and profits of your dairy farm. You can easily invest a part of your diary loan in the following:

  • Cattle shed
  • Supporting structures like milking section, feed storage, housing room, manure pits, etc.
  • Water facilities like tanks and bore-wells
  • Good roadways

A dairy farm equipped with adequate facilities for both animals and employees can enhance production and quality, eventually generating huge profits.

Hire employees

No business can run efficiently without employees, especially a dairy farm that demands extensive labor. Therefore, a well-run dairy farm must have the following employees:

  • Technically trained employees for areas like milking, healthcare, etc.
  • Helpers and assistants might be trained or untrained
  • Managerial staff for office 
  • Veterinary personnel
  • Transport men

Different fields require different skills; therefore, hiring employees accordingly can be time-consuming but proves beneficial in the long run.

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Branding and marketing

Finally, your well-established dairy farm needs to have a name and recognition to make its way in the market. Therefore, you must invest wisely in the marketing of your brand through various offline and online platforms. Potential marketing strategies include brand campaigns- the quality of milk, variety of products available, social media marketing, commercials, new ventures, and business proposals. 

All small businesses must utilize some part of their business loans or an MSME loan on marketing to give you huge returns in the future.  There is no doubt that an effective marketing strategy can boost your business in no time.

So, a dairy farm is undoubtedly a lucrative business in India. Once it gets established and well-recognized in the market, there’s no looking back because the dairy industry is full of endless opportunities. That’s why most renowned dairy cooperatives in our country are well-flourished both in India and abroad. 

Staying updated and prepared throughout the process is one of the strategies for a successful dairy farm. From a well-planned business idea to a wise investment of your dairy loan, every step counts to build the next big dairy cooperative soon. 

We aid small upcoming businesses by providing financial loans. If you’re looking to open a dairy farm, consider learning about the dairy loan and get in touch with us today!

Frequently Asked Questions

Dairy farming is a type of agriculture that is focused on producing milk. This is different from raising animals to produce meat. Milk can be used to produce dairy products, including cheese. Species commonly used are cows (so-called dairy cows), but goats, sheep and camels are also used.

Dairy farming can only operate because animals like cows give birth to young. When cows have calves, they begin to lactate. Dairy farmers extract milk from lactation for the purposes of creating milk, yogurt, cheese, and other dairy products for human consumption.

You can start dairy farming with 10-20 cows or buffaloes, you can increase animals numbers later.

20 lakh is the investment range to start the small scale dairy farm in rural or urban areas of India. The investment required to start a large scale dairy farming business can exceed up to Rs. 1 crore or even more.

Dairy farming is definitely profitable and worth a go. The milk business can be profitable right from the start.

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Start Profitable Dairy Farming in India For Money

Commercial and small scale dairy farming in India is no doubt playing an important role in the total milk production and economy of our country. And almost all regions of India are suitable for setting up dairy farming business.

Most of the dairy farmers in India are raising animals in small scale scale traditional methods. They are not aware about the modern farming methods and improved techniques for dairy farming.

As a result, some farmers are loosing their investment instead of being benefited. Proper business plan, well management and care can ensure maximum production and profit from dairy farming business.

We have described here the importance, setting up steps and some problems of dairy farming in India.

Table of Contents

Why Dairy Farming in India?

There are many benefits of starting dairy farming business in India. Here I am describing the main importance and benefits of dairy farming in India.

  • Dairy farming business is a traditional business. So, you don’t have to worry about marketing your products. You can easily sell your products in almost every place of India. And dairy product market is active round the year.
  • Dairy farming is Eco-friendly and it doesn’t pollute the environment.
  • Dairy farming business doesn’t required highly skilled labor. You can easily setup small scale dairy farm with your family labor.
  • Great business opportunities for unemployed educated young people. Proper plan and management can ensure maximum production.
  • Numerous highly productive native Indian and foreign breeds are suitable for farming according to the climate and environment of India.
  • You can apply for loan in your local NGO or banks.

How to Start Dairy Farm in India?

Setting up dairy farming business in India is not so easy. You have to go through several important steps for setting up dairy farming in India. Consider the following tips while starting dairy farming business in India.

  • First of all, you have to decide the aim and objective of your farm (includes housing, feeding, breeding, number of animals to be maintained etc.
  • Try to visit some commercial dairy farms. Discuss with the experienced farm owners about his dairy farming system and secrets. Try to visit as much farms as possible. This will help you to analyze various farming systems and extremely broaden your knowledge.
  • While visiting various farms, try to analyze their every event deeply.
  • Visit your nearest veterinarians and discuss about the possibilities of dairy farming in your area.
  • If your plan is to maintain the farm by your own, then try to work for an existing farm for at least six months.
  • Be conscious about the availability of food and its costs. You also have to stock food for adverse seasons.
  • You have to employ hardworking labor with some practical experience. In some cases you can also train them for specific dairy farm jobs.
  • Visit your nearest market occasionally and observe the price and demand of live animals and dairy products. Keeping good relation with market help you for getting proper value of your products and purchasing necessary commodities.
  • And lastly, try to learn more and more about dairy farming in India. Read a lots of books, visit numerous farms, gather experience, make proper business plan and finally do it.

Good Breeds

There are numerous native Indian and highly productive foreign breeds available. You can choose any of them. You can raise both cows and buffaloes together in separate rows under same shed.

Cow’s milk is lower in fat than buffaloes milk. Visit the market and try to understand which product has high demand.

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For profitable commercial dairy production Murrah , Surti , Mehasani, Jaffrabadi, Badhawari etc. are common and popular buffalo milch breeds.

Gir , Sahiwal , Red Sindhi , Tharparkar are popular cow breed. You can also go with highly productive foreign breeds like Holstein Friesian , Brown Swiss , Jersey etc.

All those breeds are suitable for farming in the Indian weather. Always keep in mind the market while choosing breeds for your dairy farming business.

Good housing play an important role for keeping the animal healthy, diseases free and productive. For proper production you should give your animal required space inside the house. Generally 40 square feet inside shed and 80 square feet open space is required per animal.

In small scale production for 20 animals, you have to ensure availability of 3000 square feet land area. For medium scale producers with 100 animals, 13,000 to 15,000 square feet space is required.

However, ensure availability of all types of essential facilities in the house. Essential facilities includes proper ventilation, sufficient flow of fresh and clean air, sufficient space etc.

Feeding good and high quality nutritious foods ensure proper growth and good health of the animals. So, always try to feed them sufficient amount of nutritious food.

Try to add as much green food as possible with their regular food. Because, green food helps the animal to produce more milk and helps the producer to reduce feeding costs.

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If possible, try to make a grazing place for your animals. Along with nutritious foods, always provide them sufficient amount of clean and fresh water. Dairy animals need more water than other animals.

Generally, a milk producing animal need five liters of water for producing one liter milk. So, always serve them sufficient amount of clean and fresh water.

Care & Management

Taking good care is the key to every livestock farming business. So, you also have to take good care of your animals. Try to keep the animals free from all types of cattle diseases .

Vaccinate them timely. Provide them nutritious food and clean water regularly. Make a stock of necessary medicines and other materials.

Marketing your products is not a problem in India. Dairy product has huge demand throughout the India. You can easily sell your products in almost every places of our country. So, don’t worry about marketing, just take good care of your animals.

Problems of Dairy Farming in India

Every business has some problems or difficulties. Dairy cow farming also has some problems. The main limitations and constraints of dairy farming in India are listed below.

  • High infrastructure and feeding cost is the main constraint of dairy farming business.
  • Most of the farmers don’t serious about the total expenditure and profit from this business. The don’t count the value of green food which they grow with their crop.
  • Breeding process of animal depends on various factors. It is a biological phenomenon and getting expected milk production depends on proper breeding process. But most of our farmers are not conscious about this due to lack of proper publicity and public announcement by the government.
  • In accordance with making good business plan, dairy farming requires hardworking, proper care, good management and you have to be alert always. In our country, one of the family member take care of the animals. But for commercial purpose, you have to employ several experienced people with high salary.

Every business go with some additional advantages and problems. On an average, commercial dairy farming in India is profitable. If you want to start this business, try to learn more about it and visit as much farms as possible.

These are the common steps of starting and operating a successful dairy farming business in India. Hope this guide has helped you! May Lord Krishna Bless you!

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Dairy Farming: Features, Benefits, Project, Business Plan In India

Dairy Farming

We all know there is high demand for dairy products in the market. Dairy products like chocolate, candy, cakes, milk bar, butter, paneer, sweets, and so on have a huge demand in the world market. Overall all humans, directly and indirectly, consume dairy products. Do you ever know that milk was the main food source in ancient times when people did cattle farming to get milk? 12000 years ago men domesticated cattle for the purpose of dairy production. However, over one billion people’s livelihoods depend on dairy farming and supporting other dairy sectors in the world.  

What is Dairy Farming?

Dairy farming is a long-term milk production agricultural practice and its main purpose for it is to sell milk. It is mainly commercial farming where farmers rear their cattle for producing milk and selling them in the market. Cows are the main animals for milk production. In commercial dairy farming farmers rear sheep, buffaloes, goats, donkeys, camels, etc. for an alternative source of milk production. We all know that Animal husbandry is the major sector of earning money for the rural area in India. Villagers depend on dairy agriculture for their livelihood. 

Indian government launched various dairy farming projects to provide benefits for farmers. Them, distributing dairy animals to the villagers is one of them. The government takes schemes that provide well training to the rural village people. In training centers, villagers can able to learn how to do cow farming , goat farming , sheep farming which is the main source of dairy production. 

dairy farm business plan in india

  • In this farming process high breed milch animals mainly cows and buffaloes are reared by well-trained farmers. 
  • Dairy farming is high capital-intensive farming. 
  • In this farming method, a large scale of land is needed. 
  • In the beginning, farmers need high capital to do that farming. The process of animal sheds, mulching machines, feeding and storage facilities, etc. required a high amount. 
  • Farmers need to give special health care, veterinary service, and cattle breeding. 
  • Trained laborers involved in feeding, taking care of cattle, and milking process.
  • Proper facilities are required for the transportation and refrigeration of milk.
  • The demands for dairy products are high in industrial and urban areas. 
  • The modern method increased the duration of dairy storage products. 

1. Health benefits:

Milk is the natural source of nine essential nutrients so it is called a nutrient powerhouse. We humans need to consume milk daily to get those good healthy nutrients. Various types of research show that people who are fond of drinking milk and consuming milk products have good health. Dairy foods are associated with bone health improvement. Milk is essential to kids and teens; adults can consume who have lower blood pressure and cardiovascular disease.

2. Product versatility:

The most important benefits of dairy are product versatility. Do you ever think about how many products are derived from milk? Here few names of products that are prepared from milk- cheese, paneer, candy, yogurt, sweets, ice cream, butter, ghee, etc. In soup and chocolate, it is also used; preparing biscuit milk is an essential ingredient, and in snacks we use it to add some flavor. 

3. Local Supply:

Milk is one of the fresh local products that supply locally. If you want to buy fresh milk then you can get it from your local milk seller. 

4. Huge Economic Impact:

Dairy agriculture is very important for our economy mainly for the local economy. It opens a new path for unemployed young people. There are immense dairy industries where they can get jobs with some training. In annual economic revenue, dairy industries contribute impactfully. 

5. Passion and Care:

Farmers’ families passionately care for their cattle animals. Though they do this farming for financial purposes they have cared for the domestic animals. 

6. Clean Label:

In the present situation, the big challenge of the dairy industry is the systematic decline of fluid milk sales. Like other beverages milk doesn’t contain chemical processes to make, it is natural. So we can tell the clean label of it is fresh chemical-free. 

7. Stronger Infrastructure:

Dairy industries create many job vacancies across the country. According to studies major percentages of those major jobs come from farm level and from dairy processing activities. 

8. Faith-Based Heritage:

Dairy production is totally faith-based heritage. Farm families have faith that a newborn calf one day will be productive, so they have meals together, and pray together. It is our farming culture that still exists in our society. 

dairy farm business plan in india

Dairy Farming Project In India:

Behind the increase of dairy products, there are lots of positive impacts of Government schemes . The government always tries to help the farmers financially to the improvement of this farming method. Beneficiaries’ schemes that were launched by the government helped to develop dairy production and dairy business in rural places. Farmers or cattleman can develop their farming by taking banking loans, and government dairy farming project .   

Before starting a dairy cow farming project farmers need to farm training from locals. Besides a good business plan is also important to buy animals’ breeds and sell their milk. Good milking skill is very essential to make successful dairy production. 

Dairy Farming Loan In India:

Indian government launched NABARD dairy farming loan for dairy farmers. This project provides beneficiaries to the farmers. National Bank for Agriculture and Rural Development manages credit-related concerns. It is the best govt loan for dairy farming in India. People who will be eligible for this subsidy scheme are:

  • Must be Indian farmers.
  • Group of organised sectors.
  • Companies, sectors, farms.
  • Individual business person. 

Dairy Farming Business Plan:

The dairy farm is a major, lucrative business because dairy farm is an all-season business. The demand for milk is either constant or increasing regardless of the season. Demand for milk and dairy products has not declined in India. The dairy farming business plan needs these steps to follow:

1. Land Selection:

The first and most important thing for setting up a dairy farm is to select a suitable place for the farm. The considerations for selecting a suitable place for the farm are –

  • The place should be dry, elevated, and flat so that rainwater does not accumulate and farm waste can be easily disposed of. 
  • Adequate transportation is required for the marketing of dairy and dairy products and purchase of farm produce.
  • Dairy farms must be away from settlements and crowded roads. There should be no wetlands around the farm.
  • It should be no wetlands around the farm and must be an opportunity to grow the farm in the future
  • There must be an abundant supply of pure, clean and gentle water at low cost and facilities for supply of electricity and gas.
  • It is easy and cheap to get regular workers. There should be enough space for grass cultivation.

2. Housing:

Adequate housing is essential to protect farm cows from various types of natural disasters, wildlife, thieves, etc., and to provide better comfort and better management. The considerations when constructing a cow dwelling or house are that the cow house will be longer from east to west. Houses must face south. There should be adequate lighting and ventilation. The floor of the house will be paved and rough. This makes the cow less likely to slip and fall. The floor of the house should be sloping and a drainage system should be maintained so that dung, gram, etc. can be easily cleaned.

3. Selection of dairy cow:

Good quality seeds are required to get a good yield from the land. Similarly, in order to make a dairy farm profitable, cows should be selected which will give more milk. Some of the things to look for when selecting a cow are:

  • Production records
  • Physical appearance

4. Feeding:

A balanced diet is required to protect the body of dairy cows, milk production, and proper growth of fry during pregnancy. The cost of food on livestock farms is about 60% of the recurring cost. Reducing food costs as well as increasing production is a kind of adventurous responsibility. In order to fulfill this responsibility, it is necessary to acquire complete knowledge about the nutritional value of the food items obtained at low cost, the composition of the food, and the method of feeding the food. Depending on the daily milk production of the cow, it is important to have 50 to 60% fiber in the feed.

Since the level of dry straw is less, it is better to process the straw and feed it to the cows. Many of our native green grasses do not have this level of nutrition. However, the obtained green grass should be fed to the cows and the surplus grass should be stored so that it is possible to reduce the cost of food by using it in times of scarcity.

5. Marketing:

The main product of the farm is milk. Milk is a perishable product. So the first thing to consider when setting up a farm is whether milk can be sold regularly at the desired price or not. In addition, other by-products produced on the farm must be sold at the right price in a timely manner. So, it is not possible to make a farm profitable without proper marketing.

dairy farm business plan in india

Dairy farm:

The role of dairy farms in increasing milk production, creating self-employment, and alleviating poverty in our country is undeniable. Every step from the beginning to the end of setting up a dairy farm is woven in the same thread. Just as you have to think about different things before setting up a farm, you have to pay close attention to different management of the farm after setting up a farm. Milk is the main product of dairy farming. Therefore, it is necessary to have knowledge about the milk marketing system. 

Conclusion :

The purpose of setting up a farm is to make a profit from it. So it is important to know about the income and expenditure of dairy farms. Many set up farms with loans from banks. Knowledge of how to repay this loan is also required.

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How to Start a Dairy Farm

Last Updated: August 27, 2023 References 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 1,318,165 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

Image titled Start a Dairy Farm Step 1

  • 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?

Image titled Start a Dairy Farm Step 2

  • 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.

Image titled Start a Dairy Farm Step 3

  • 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

Image titled Start a Dairy Farm Step 4

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

Image titled Start a Dairy Farm Step 5

  • 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

Image titled Start a Dairy Farm Step 6

  • 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

Image titled Start a Dairy Farm Step 10

  • 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.

Image titled Start a Dairy Farm Step 12

  • 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.

Image titled Start a Dairy Farm Step 13

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

Image titled Start a Dairy Farm Step 14

  • 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.

Image titled Start a Dairy Farm Step 15

Community Q&A

Community Answer

  • 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 0 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 0 Not Helpful 0
  • Allow your calves to milk for at least a month to give them enough strength. Thanks Helpful 0 Not Helpful 0

dairy farm business plan in india

  • 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 39
  • 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

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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 – How To Start Profitable Dairy Farm In India

The dairy farming business is being seen as a lucrative venture by both, young and middle-aged entrepreneurs in modern India. After all, large-scale milk production plays an important role in building the nation’s economy. Furthermore, hardly any region in India is unsuitable for dairy farming. Above all, modern methods of farming, as well as innovative methods of dairy farming, suffice to make this a profitable business.

Why is dairy farming viewed as a profitable business?

At the outset, it is one of those rare businesses, which is active all around the year. Think about it. What are the most popular dairy products in India? They include natural and processed cheese products, butter and butter blends, ice creams, frozen desserts, iced milk, sherbets, sorbets, flavoured milk products, sour cream, milk protein concentrate, whey protein concentrate and so many other novelties. Naturally, tonnes of milk are required throughout the year, to create these products and sell them across the country.

Investment required for dairy farming business

You do not require a lot of money to start up a dairy farm. You can always start small. In addition, you do not need much in the way of raw materials or stock. Therefore, the inventory is always less. In case of any natural disaster or sudden misfortune, you may even shift your business to a new location very easily. Furthermore, it is possible to have your animals insured.

The business does not require skilled labour. In fact, you will be able to provide employment to less educated people and contribute towards improving the unemployment situation in the country. Even if you are unemployed yourself, you may become a successful entrepreneur if you plan and implement in the proper manner. Local NGOs and banks are always ready to help with the finances.

Dairy farming is an eco-friendly business. You will not be polluting the environment at all. In actuality, animals of Indian and foreign breeds will help to conserve the soil and nature, thanks to their grazing habits and contribution towards organic manure (cow dung).

You will be able to meet all your energy needs if you go in for a biogas plant that uses cow dung as fuel. The decomposed slurry may be utilised as organic manure.

Clarity in Objectives

Like every other business, dairy farming has its constraints or disadvantages too. For instance, your initial infrastructure has to be splendid, since you desire to become a successful business owner. Admittedly, you expect a high yield as far as milk production is concerned. Well, then, your animals must be healthy and fed good quality feed (even if it is rather expensive). At every stage of production, you must ensure that quality is maintained. Furthermore, you must never forget that you are dealing with a biological phenomenon and good breeding will ultimately become responsible for good production of milk. You will have to keep a lookout for everything of value. The green food that grows alongside your crop is valuable too. See how it can be used to your monetary advantage. If you are reliable, hardworking and alert, you should be able to witness your dairy farming business move from strength to strength. Above all, you will have to be realistic. True, since this is a family business, you will prefer to confine the employment of domestic workers only. However, there may be a need for skilled labour from outside too. Do not stop yourself from hiring them.

If you have comprehended all the things mentioned above and have the courage to take the next step forward, then work out the budget and infrastructure (housing for animals, feeding, number of animals to be maintained, medical check-up, etc). Have an experienced breeder look at your plan and make relevant suggestions. You are a novice; do not think that you can handle everything by yourself. Finally, your objectives should be evaluated at the end of each year and modified in alignment with the direction in which your dairy farming business is going.

Keep Yourself Updated

It would be good not to jump headlong into the business without thinking, especially if you lack healthy experience. Why don’t you offer yourself as a labourer at one of the existing dairy farms for a period of six months or one year? You will be able to observe all the aspects of the business, learn how to identify and resolve problems, understand the advantages and disadvantages of maintaining various types of cattle, etc. This should help you grow immensely in confidence.

Then again, you are welcome to visit other farms nearby and witness the events taking place there. Do go in for logical analysis of every event. Make your conclusions and if necessary, engage in conversations with local veterinarians for obtaining valuable information. If the farms were commercial in nature, you would do well to request advice from the owners regarding the functioning of dairy farming systems. Although they might not give away their specific trade secrets, they will not hesitate to share general knowledge about dairy farming, cattle and dairy products.

Keep yourself updated about everything by reading as many books and magazines as you can about the dairy farming business. Browse the Internet for blogging websites and forums. You never know who you may come across or what you might discover through such healthy habits. Develop an interest in the fodder market. It is important to have knowledge about diverse types of feed, availability during various seasons, quality, etc.

Now, it is not compulsory, but it will not hurt to obtain some professional training. Different Indian states have universities for agriculturists or veterinarians. Then again, every state has a department related to animal husbandry. Krishi Vigyan Kendras are useful too. Finally, there are organisations at the national level, such as National Dairy Research Institute or NDRI, Karnal, Haryana. Make some enquiries and decide what suits your needs best. In case, you do not wish to associate with governmental agencies, you may opt for non-governmental establishments active in the farming sector, especially dairy farming.

Do make time for visits to the cattle fair or cattle market. Observe the exchange of animals taking place there. You will also be able to keep track of supply and demand, as well as pricing for various breeds. Get into conversations with experienced breeders about purchasing of animals.

Due to your own experiences as a labourer, you will be able to comprehend the importance of employing diligent and dependable people to work as a team. Each individual may be trained to undertake certain tasks. It is imperative for each member to possess a practical mindset.

Animal Breeds

There is no dearth of cattle in our country. Apart from the native breeds, even foreign cows and buffaloes are available. After all, there is no law that states that you cannot rear both species at the same time, in the same dairy farm. Just make sure that they are placed in separate rows in your sheds.

In case, you desire to own a herd of cows, go in for Tharparkar, Gir, Sahiwal and Red Sindhi, preferably. These milch cows are indigenous to India and capable of surviving all kinds of weather conditions. They should be able to provide sufficient milk every day. Many people, especially women, prefer cow’s milk since it contains a lower amount of fat than buffalo milk does. The fat content is anywhere between 3.5% and 5.5%. If the breed is of high quality, you may have to pay anywhere between INR 12,000 and INR 15,000 for it, or even more. Your herd is bound to grow since a well cared for cow gives birth to a lone calf once in 13 to 14 months. Cows are docile and capable of being handled easily. The crossbreeds, especially Jersey and Holstein, are comfortable even in extreme climates, such as those found in Jammu & Kashmir.

As for buffaloes, you would do well to go in for milch breeds like Badhawari, Murrah, Mehasani, Surti, Nali – Ravi and Jaffrabadi. These animals tend to mature late, giving birth to calves once in 16 to 18 months. However, if the calves are male, they are viewed as having little or no value in the marketplace. Compared to cow’s milk, buffalo milk contains a larger amount of fat. Therefore, it proves useful for making butter, ghee and hot beverages (tea and coffee). These animals are easier to maintain, for they like to feed on fibrous crop residues. You will have to spend less on feed. However, their thick skins make these animals long for cool waters. Therefore, they need to have showers, wallowing tanks or foggers with a fan nearby.

Foreign breeds of cattle include Jersey, Holstein Friesian, Brown Swiss, and so on. Regardless of whatever breeds appeal to you, do keep in touch with changing market trends and adverse weather conditions.

Like every other domestic animal, cows and buffaloes need to be fed nutritious food. Do not be stingy with the amounts in your eagerness to save on monetary costs for feed. Do remember that your animals must be healthy, in order to yield high quality and large amounts of milk. Whenever possible, combine regular food with green food, especially if you wish to reduce expenses on feed and obtain uncontaminated milk. For instance, you may own around 20 cows, buffaloes, or a mix of both breeds. Do ensure that you receive 400 kg of oats/maize fodder and 300 kg of Lucerne/Berseem every day, from a reputed dealer. You will have to enter into a contract with this dealer. Later on, you may create a small grazing patch for your animals.

Unlike other animals, dairy herds require large amounts of fresh and clean water. Every cow and every buffalo will have to consume at least five litres of water, in order to produce a litre of milk.

You must own at least 20 cows and buffaloes initially if you wish your dairy farm business to take off well. Over time, the respective herds can go up to 50:50, 70:30, 60:40, etc, depending upon your preference for more cows, more buffaloes or half-and-half. Towards this end, therefore, you will require at least 3,000 sq ft of land. As your business progresses and you acquire more animals, you may have to go in for 15 to 20 acres of land possessing irrigation facilities. After all, you will need to cultivate fodder land for them. You cannot afford to buy feed from external sources all the time.

As per the thumb rule, five animals should be allotted an acre of green fodder land. You may calculate the area required to feed your entire brood. Do note that economic feeding is the key to success as far as dairy farming is concerned.

As far as personal space is concerned, each animal should be provided with an area measuring 40 sq ft internally (inside the shed) and 80 sq ft externally (outside the shed). There should be sufficient ventilation, which is an inward flow of clean and fresh air and outward flow of breathed out air.

Apart from housing for your animals, you will also need separate rooms for other things. They are to be used for storing implements, storing milk, maintaining an office, etc. Ensure that your land has a bore well, which can fill up a large-sized water tank within an hour. In fact, the water tank should be able to store at least 2,000 litres of water.

Miscellaneous Tips

You cannot take care of everything by yourself. Therefore, employ sufficient workers to help you. One individual can take care of 10 milch animals, 20 young stock or 20 dry animals.

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How to start Dairy Business in India [A Profitable Business?]

Are you thinking about opening your dairy business but not sure if it is a good idea or not?

Then relax. By the end of this blog, the picture will be crystal clear.

Well, from a hot cup of tea in the morning to cold ice cream as your dessert at night, each one of us is consuming milk in some or another way. Contributing to 4% of India's GDP, India's dairy business is one of the most suitable potential choices available for business in the country.

So, the dairy business is definitely an idea to consider.

Now that you have decided to start your dairy business , here’s a detailed and informative guide on how to start dairy business. This guide will be your savior to any sort of apprehension that may arise in your mind relating to the dairy business India . We have covered all the steps in this comprehensive guide for your dairy farm business.

Following are the steps to start a dairy business -

1. Physical Plan

Before opening any potential business, a dairy business plan must be formulated. A plan could be formulated in consideration of several factors, the most important being the requirements of the market. The eventual goal is to serve the consumers, so it is quite beneficial to study the target area you want to set up your dairy farm business.

The deciding factors include the geography, household types, income, culture of the place, etc. Based on these factors, the following choices should be included in your physical plan:

  • The type of animals you want to keep like cows, buffaloes, goats, etc.
  • Number of animals - 10, 15, 20, etc.
  • Facilities you want to include - milking facility, winter facility, housing facility, etc.

dairy farm business plan in india

2. Choose location

Based on your physical plan requirements, an ideal location should be selected where all the facilities are available at a price that maximises your profit. The location you choose for your dairy business India should be within the area, city, or state you wish to set up your business.

The area of the land should be large enough to accommodate all the facilities. It could either be set up on a place you own or an area which is rented on lease to you. In the latter case, the terms of the agreement should be taken care of. A few ideal locations of the dairy farm in accordance with different benefits are:

  • Near the cities: Assured market, fewer transportation costs, less loss, high prices
  • In rural areas: lesser labour and input costs, land for fodder cultivation

An ideal location for setting up a dairy business is in villages that are located in proximity to cities, and are usually on highways.

investment plan written on grey coloured board with stack of coins and a compass

3. Plan Investment

After a thorough estimation of the total costs you require for your dairy business , you should make a dairy business plan on how to arrange your finances. Your investment is directly dependent on the machinery, facilities, area, animals you opt for.

There are several government schemes and private help you can avail to arrange your finances. These are the sources of investment you could consider:

  • Your own savings
  • Borrowings from non-institutional assets like relatives
  • Self-help groups
  • Subsidies by NABARD/Government

4. Obtain Licensing

Once you have decided on your capital source, you are ready for registrations and licensing. These licenses hold fixed fees and could be processed sooner with additional fees. These licenses are:

  • Dairy Farm License
  • Trade License
  • Shed License
  • FSSAI License
  • Company Registration Certificate
  • Registration with ROC or Registrar of Firms

5. Purchase of Assets

After the arrangement of finances and licensing, the next sole focus of how to start dairy business is to buy the required assets, animals, and machinery. This step is deemed as essential since it will determine the future of your dairy business in India . This requires three major decisions:

Purchase of animals

The decisions regarding different breeds of animals and kinds of animals will determine the quality of the milk produced. These are a few of the preferred species of the following animals:

  • Cows: Cross-bred cows of Zebu and nondescript breeds with exotic breeds like Jersey bulls, Brown Swiss, Holstein Friesian, Sahiwal herds

2. Buffaloes

Mehsana, Elite buffaloes, Murrah, Nil-Ravi

Jamnapari, Boer Goat, Barbari

6. Purchase of Machinery

The machinery required for your dairy farm is dependent on the size of your dairy farm. The equipment required for your dairy farm is distributed in two broad categories:

  • Milk processing equipment: Pasteurisers, homogenisers, and tanks, separators, milking machines.
  • Farm equipment: Fodder truck, tractor implements, pressure washer, generator, mud pump, fodder block machine, fodder compacting press, milking cans, loader tractor, feed grinder, etc.

7. Adequate infrastructure

An ideal infrastructure to carry out dairy farm business activities becomes a necessity. Thus, the third major decision relating to your investment is the enhancement of infrastructure. The infrastructure required in your dairy farm is:

  • Sheds: Dairy sheds, chaff cutter shed
  • Ancillary structures: Milking parlor, straw store, feed store, milk room, manure pit, housing room
  • Roads and alleys
  • Water tanks and bore-well
  • Farm implement and milk storage room, sterile facility

miniatures of employees for selection

8. Hire employees

The dairy business is labor-intensive work that requires employees for several small and large activities. You could take help of OkStaff which is a one-stop solution for employee management. Employees should be included that meets the following requirements:

  • Technically trained workers in areas like first aid, milking, etc.
  • Helper workers trained or untrained
  • Managerial staff like managers, heads
  • Support staff
  • Veterinarian
  • Transport men

9. Marketing

Your query of how to start dairy business will be incomplete without the business marketing . You can create a buzz about your business using several potential marketing strategies like commercials, brand campaigns, new ventures, and business proposals. These strategies would make your business truly a successful venture.

So, there can be no denying that dairy business in India could truly prove to be one of the life-changing business opportunities. With an uprising fondness of the milk products, the demand for dairy-business would be everlasting.

1) 35 Small Town Business Ideas That Every Community Needs 2) How to start a restro-bar in a tier-2/tier-3 city? 3) What is a Manufacturing Business? An A to Z Guide of a Manufacturing Business 4) OkCredit: Simple, Paperless & Secure solution for businesses

dairy farm business plan in india

Q. What is the minimum investment that one needs to make in this business?

Ans. The cost of setting up a small-scale dairy business in India is usually around Rs. 10 – 20 lakhs, while it exceeds Rs. 1 crore in the case of large-scale business. This money is dependent on the size of your dairy farm and the facilities you wish to provide. The more advanced the facilities are, the more is the investment.

Q. Does the owner of a dairy business require any company registration certificate?

Ans. The owner must get a company registered certificate by registering his firm as a sole proprietorship, private limited, limited liability partnership, partnership, public limited, NGO, etc., based on the company’s working style.

Q. Does the dairy business only need attention till the stage of marketing?

Ans. No, the dairy business does not end at the process of marketing. The business needs continuous implementation of new, improved, and modern management practices. These activities are limited by timelines; thus, they should be completed within them.

Q. What are the important tasks that need to be done before you want to start a dairy farming business?

Ans. The important tasks involve the development of a business plan, consultation with professionals, comprehensive business research, plan of healthy infrastructure, effective waste management and feeding system, obtain valid licenses, get your capital arranged.

These are a few of the tasks that are required to be done before you start a dairy farming business.

Q. What are the major requirements of this business?

Ans. The major requirements include the availability of land either owned or rented on a lease, availability of capital generated through in-house sources like savings and out-house sources like loans, self-help groups, borrowings, and availability of labour, either skilled or unskilled. Land, capital, and labour are the three jewels of the dairy business . Land is the asset where every activity is carried out, capital is the asset that makes every function possible, and labour is the asset that carries out all the activities.

Read the best of business ideas, tips for small businesses, the latest update on technology & more by OkCredit.

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How to Launch a Successful Dairy Business in India

In the panorama of diverse business sectors in India, dairy farming stands out as a prosperous and fulfilling industry. Dairy farming provides enormous economic benefits and contributes significantly to the nation’s GDP. Let’s take an in-depth look at how to kickstart your dairy farming journey in India.

The Importance of Dairy Farming in India: A Deeper Dive

Dairy farming , traditionally a cornerstone of India’s agricultural sector, has gained even more prominence in recent years for multiple reasons:

  • Nutritional Security: As a provider of essential nutrients like proteins, vitamins, and minerals, milk is a staple in the Indian diet. The increasing consumption of milk products to meet nutritional needs emphasizes the importance of the dairy sector.
  • Employment: Dairy farming is a major source of employment in rural India. For many, it provides a primary or additional income stream, thereby playing a crucial role in poverty reduction.
  • Economic Impact: As the world’s largest milk producer, India’s dairy industry contributes significantly to its GDP. The growth potential in this sector makes it crucial to the economy.
  • Women’s Empowerment: Dairy farming, often a household activity, gives rural women an opportunity to contribute economically. It empowers them by providing income and promoting entrepreneurship.

Estimating the Investment: Cost to Start a Dairy Farm

The cost of starting a dairy farm in India primarily depends on the size of the farm and the number of cattle. Here’s a basic financial plan for a beginner’s dairy farm .

  • Land: Rent or buy a land area that can accommodate the size of your farm. Land costs can range between INR 10,000 to INR 100,000 per acre, depending on the location.
  • Infrastructure: Barns, sheds, feeding troughs, and milking equipment cost around INR 500,000 for a small-scale farm.
  • Cattle: Each good-quality milch cow can cost INR 50,000 to INR 70,000. The cost varies based on the breed.
  • Feed: Allocate around INR 10,000 per cow annually for fodder and nutrition supplements.
  • Labor: Budget around INR 10,000 per month per worker for labor costs.
  • Miscellaneous Expenses: Vaccinations, veterinary visits, transportation, and other unforeseen expenses should also be factored in.

Thus, a basic dairy farm setup with ten cows can cost approximately INR 10,00,000 to INR 15,00,000.

Exploiting the Advantages: Benefits of the Dairy Business in India

Dairy farming holds a distinct position in the Indian economy due to its numerous benefits.

  • Growing Demand: The dairy market in India is expanding, driven by rising consumption of milk and milk products.
  • Profitability: With a strategic business plan and effective management, dairy farming can generate high returns on investment.
  • Government Support: The government offers various subsidies and loan facilities to promote dairy farming. Check out the ffreedom app’s dairy farming course to get more information on these opportunities.
  • Sustainable Business: Dairy farming contributes to sustainability as it encourages local production and consumption.

Choosing the Best: Selecting Breeds for Your Dairy Business

Different dairy breeds offer varied milk production capabilities. Consider the following popular breeds for high milk yield:

  • Holstein Friesian: Holstein Friesian is known for its high milk yield, suitable for commercial dairy farming.
  • Jersey: Jersey cow provides high-quality milk with good fat content.
  • Sahiwal: An Indian breed, hardy, and heat-resistant, suitable for tropical climates.
  • Gir: Gir is another Indian breed, known for high milk production and adaptability to diverse climatic conditions.

Browse through the ffreedom app dairy farming courses for more comprehensive insights on breed selection .

dairy farm business plan in india

Planning for Success: Dairy Farming Business Plan

A well-laid business plan is the cornerstone of a successful dairy farm.

  • Market Analysis: Understand the local demand for milk and dairy products, existing competition, and pricing strategies.
  • Breeding Plan: Develop a breeding plan to ensure a consistent milk supply.
  • Feed Management Plan: Plan your fodder production or purchasing strategy to ensure a steady feed supply.
  • Healthcare Plan: Arrange regular veterinary visits, vaccinations, and health check-ups for your cattle.
  • Marketing Strategy: Determine how to market your products. Consider direct selling, supplying to local dairies, or collaborating with larger dairy brands.

Assessing Profitability: Is Dairy Farm Profitable in India?

Yes, dairy farming can be highly profitable in India. Factors like increasing demand, government subsidies, and the potential for local-to-global expansion make it an attractive venture. However, success depends largely on the management practices and the marketing strategy of the farm.

Delving Deeper: Types of Dairy Farming

There are different types of dairy farming methods, each with its own set of advantages:

  • Commercial Dairy Farming: Involves large-scale production of milk for commercial purposes. It demands a significant initial investment but yields high returns.
  • Subsistence Dairy Farming: Milk production is primarily for the farmer’s household, with excess sold in the local market.
  • Organic Dairy Farming: Adheres to organic production methods. Organic products can fetch premium prices but require stringent compliance with organic farming standards.

So, starting a dairy farm in India can indeed be a rewarding venture, provided you have a strategic business plan, select the right cattle breed, manage costs effectively, and exploit the benefits of the booming dairy industry. Embark on this fulfilling journey and contribute to India’s milk production story.

dairy farm business plan in india

Step-by-Step Guide to Setting Up and Running a Dairy Farm in India

Once you’ve settled on the business plan and obtained the necessary funding, it’s time to dive into the specifics of setting up and operating your dairy farm.

1. Building the Shed

The first physical aspect to consider is the cattle shed. It should be well-ventilated, clean, and spacious enough for your cattle. Orient the shed in a direction that minimizes exposure to strong winds or excessive sunlight. The floor should be inclined to aid cleaning, and each animal should have approximately 40-60 square feet of space.

2. Water Supply

Maintain a constant and clean water supply for your cattle. Adult cows consume between 40 to 60 liters of water daily. Providing fresh water improves their health and productivity.

3. Procuring Feed and Feeding Cattle

Cattle feed constitutes a significant portion of the operating costs. High-quality feed results in better milk production. A typical cow’s diet consists of green fodder, dry fodder, and concentrates.

Feeding should ideally be done twice a day – once in the morning and once in the evening. Adhering to a consistent feeding schedule is crucial for the cows’ health and productivity.

4. Controlling Cattle

Train your cattle early for easy handling. Techniques such as positive reinforcement can be helpful. Additionally, use sturdy, but not harmful, restraining equipment when necessary.

5. Milk Extraction, Storage, and Packaging

Milking should be done at consistent times every day. Sanitize the udder before and after milking to prevent infections. Depending on your scale, you may opt for manual milking or use milking machines.

After extraction, milk should be rapidly cooled to below 4°C to prevent bacterial growth. Pasteurization is also crucial to kill any existing bacteria. Once cooled and pasteurized, the milk should be stored in stainless steel or aluminium containers to avoid any contamination.

Packaging should be done in sterilized containers. Depending on your market, you can opt for pouches, glass bottles, or plastic containers. Remember to include important information like the production date and nutritional details on the packaging.

6. Disease Management and Vet Care

Regular health checks are crucial to prevent and control diseases. Maintain a close relationship with a vet and follow their recommendations regarding vaccinations and treatments.

Starting and running a dairy farm involves careful planning and attention to detail. However, the benefits of the dairy business in India, from the high demand to the potential for profitability, make it a worthwhile endeavor

ffreedom App: Comprehensive Learning Platform for Dairy Farming

The ffreedom app offers a well-rounded dairy farming course, providing aspiring dairy farmers with the necessary knowledge, skills, and mentorship to establish and operate a successful dairy business .

The course, offered in six languages, covers a broad spectrum of dairy farming aspects:

  • Starting Up: Detailed guidance on initiating a dairy farm, such as identifying a suitable location, choosing the right breed of cattle, and setting up infrastructure.
  • Maintenance: Comprehensive lessons on daily farming activities, including feeding schedules, milking procedures, maintaining hygiene and sanitation, and waste management.
  • Disease Management: Information about common cattle diseases, their symptoms, preventive measures, and treatments. This knowledge is crucial for maintaining a healthy herd and ensuring consistent milk production.
  • Marketing Strategies: Effective methods to market and sell dairy products, with a focus on identifying target markets, setting competitive prices, and leveraging different sales channels.
  • Business Management: In-depth sessions on managing a dairy business, including cost management, revenue generation, profitability analysis, and expansion strategies.

What sets the ffreedom app course apart is its panel of successful mentor s from the dairy farming industry. These seasoned professionals share their practical experiences and insights, providing a real-world perspective to theoretical knowledge. The course is thus a holistic learning resource, perfectly tailored for India’s future dairy farmers.

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Dairy Farming Business In India Cost, Profit, Business Plan, Requirements | SkillsAndTech

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Dairy Farming Business In India Cost, Profit, Business Plan, Requirements | SkillsAndTech

This article will widen your horizon of knowledge concerning dairy farming and dairy farming business plan. Let’s begin with the introduction to dairy farming.

Table of Contents

Dairy Farming: An Introduction

Regardless of the location and season, there is always a tremendous demand for milk all over India. The increase in population has also doubled the rate of milk consumption in India. In our country, unemployment is on another level, and thus, young business enthusiasts are taking a keen interest in the dairy farm business. Many people want to commence this business, but due to lack of knowledge and market awareness concerning the same, they hesitate to put their feet in this business.

Dairy farming business is a lucrative business choice nowadays. It is an eco-friendly business, and it can be commenced in all seasons. It is deemed a thousand times better option as compared to a job. One of the noteworthy features associated with dairy farming is that it doesn’t require highly skilled and competent labour. You can easily set up this form of business without much worry.

Before initiating a dairy farming business anywhere in India, it is essential to have a sound dairy farming business plan. You will have to dedicate your time as well as efforts on your dairy farm round the clock. It’s not necessary that you have to commence your dairy farm on a commercial level. You can begin your journey on a small scale, and with the progress of your business, you can develop it as a large-scale venture.

Components of Dairy Farming Business Plan

There are various requirements of the dairy farming business plan.

Given below are the components of dairy farming that one must know before commencing this form of business-

Land:  Farm owners must take a keen interest in the maintenance of cultivated areas or land for growing fodder crops for the purpose of cattle. Normally, the land area relies on the number of cattle that are likely to get stored. Generally, 1 acre of land is enough to feed around 7 to 10 cows.

Shed:  There should be a well-covered area constructed in the farmland before inviting the cows into your farm.

Labour:  Labour is the soul of the dairy farming business plan. In the dairy farming business, the chosen labour must hold expertise in handling the activities related to the farm entailing growing green fodder. It’s crucial to extend at least one to two days of training to the labour force so that they can get well versed with routine activities taking place at dairy farms.

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Selection & Vaccination of Breed:  To generate more milk, there must be decent cow breed selection. It’s important to opt for a breed that yields more milk and can give momentum to the dairy farming business. Well-known milk yielding cows are Gir, Red Sindhi, Ongole, Sahiwal, and others.

Furthermore, to bring diseases under control and preserve cow’s health, their caretaker must have a strict schedule for vaccination. Hiring a veterinary doctor will be a great move as it will ensure routine checkups as well as proper medication for cows.

Water and Fodder:  Both of these components must be available in desirable quantities; as water promotes the growth of green fodder & fodder further plays a significant role in the proper nourishment of cattle.

Dairy Farming Business Plan in Brief

As a beginner, you must visit some Agriculture Universities or Training Centers associated with the Animal Husbandry Department or Private Training Dairy Consultancy or any Krishi Vigyan Kendras to acquire some professional training.

Go through online dairy blog websites, dairy magazines, as well as Youtube Videos to accumulate more knowledge regarding the concept of farming.

Move to the local dairy farms and consult management so that you may acquire knowledge with respect to the management of the farm. Ask them about the various problems they face and learn how they overcome the problems.

One of the noteworthy points mentioned in the dairy farming business plan is that if you are willing to commence dairy farm business, then you would have to learn sound labour management skills.

As we all know that fodder or feed is the prime element of dairy farming that impacts profitability up to a great extent, dairy farm business enthusiasts should acquire an in-depth understanding of silage-making procedures as well as green fodder cultivation exercises.

In case you don’t have capital investment and wish to acquire a subsidy & loan the dairy farm, you should visit your cooperative banks/local agriculture for further information.

At an initial level, you need to visit some cattle markets to witness animals on sale & communicate with individuals engrossed with buying animals to acquire an idea of the reasonable animal prices, best breed, as well as milk yield of animals.  Besides this, you can learn negotiation skills.

Shed Construction

  • Proper ventilation, as well as a spacious shed, is needed for dairy farming.
  • In order to maintain the cattle health, the construction of a shed is crucial.
  • It ensures hygienic conditions for cattle.
  • The space requirement with respect to shed construction is 8 feet * 12 feet area for one cow. Therefore, the entire space needed for 15 cows is around 120 feet * 12 feet.
  • Nevertheless, nothing is fixed with regard to the area, and things depend on the size of the cow.
  • Cow feeders must be built in between with a wall of separation so that the cows can be fed via Head to Head Arrangement in which cows get fed from both sides facing head to head each other.
  • The dairy shed roof must be prepared with asbestos sheets & the floor must be made of either cement or bricks with sufficient inclination.
  • It can grant proper drainage for cattle urine & excrete. In order to maintain a hygienic state, the shed must be cleaned daily. 
  • At the time of construction of the shed, care must be taken.
  • The location must be elevated to prevent any form of water stagnation surrounding the shed, and it also delivers proper ventilation (air and sunlight).

Dairy Farming Business Plan

  • A dairy farming business plan includes a good dairy breed selection as it will help in successful dairy farming.
  • Opt for the dairy cow/cattle breed that meets the requirements of climatic conditions as well as high milking capacity.
  • You may take a tour of the local farms, and you can proceed ahead for observing the various breed types.
  • A crossbreed of Holstein Frisian with Indian Sahiwal or Jersey with Red Sindhi or Jersey with Sahiwal is in high demand due to its good milk production capability.
  • You need to opt for a breed that is capable of producing 20 to 25 litres/day.
  • Artificial insemination has a key role to play with respect to cross with high-yielding breeds. 

Fodder Management

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In dairy farming, fodder management is extremely crucial. The daily milk yield of a cow is based on the type of fodder as well as the nutritional facts associated with the available fodder. High-yielding cows must receive 1 kg of concentrate and mineral mixture to obtain 2.5 litres of milk produce. Suppose that, if a cow yields 15 litres of milk on a regular basis, then that cow must be given around 6 kg of concentrate along with a mineral mixture.

Under Dairy Fodder Management Practices, three types of fodder can be provided. The three types of fodder are mentioned below-

Green Fodder

All the leguminous crops which are enriched with protein supplements belong to the green fodder family. For example, any gram crop, masoor, berseem, corn/maize, as well as hybrid grass such as CO-3 & CO-4, nipper grass, and more. Such green fodder crops can be used to prepare silage. This silage is considered highly nutritious, and milk yield is likely to increase. Silage making is crucial, and it is mainly required in dry periods. Usually, 2 to 3 acre of fertile land is needed to produce green fodders for 15 cows. Nevertheless, the yield of green fodder relies on several factors.

It encompasses choker (wheat bran), kutti(rice/paddy straw), and wheat hay.

Concentrate & Mineral Mixture- 

It is needed to grant concentrate feed and a mineral mixture on a daily basis so that cows won’t have to suffer due to deficiency of minerals. All three types must be appropriate proportion for adequate milk yield.

The cost of feed must depend upon the milk capacity of the animal. The feed may stay in the range of 200 to 250 Rs./day/cow on an average basis.

Management of Cow & Calves under Dairy Farming Business Plan

  • Mating of cows (Also known as artificial insemination) must be carried out after the time frame of every 3 months of calving.
  • It takes around 3 years for Indian cattle breeds to reach the phase of maturity whereas HF cows or high yield jersey crossbreed reach the phase of maturity, in the time frame of 16 to 18 months, and they will be prepared for mating.
  • Cow must be calving for every 13 months in general.
  • The period of lactation associated with cows is 300 days, and the service period must be 90 to 120 days.
  • Furthermore, the gestation period is of 266 days.
  • In the case of pregnant cows, more care and attention is required as during this stage, they need more nutrition.
  • In the gestation period, cows must receive proper concentrate as well as a mineral mixture.
  • With each passing day, the feed intake must be increased in order to ensure proper growth and development of calves as well as their udder.

Water Supply

One of the major requirements is the clean water supply with respect to drinking & cleaning purposes of the shed. By providing overhead tanks, arrangements can be carried out.

Dairy Farming Business Plan: Vaccination Program

Before proceeding ahead for giving any vaccination in the dairy industry, deworming must take place to obtain fruitful outcomes. Nevertheless, deworming must be carried out regularly, and the veterinary doctor is likely to be your point of contact concerning the same. The diseases monitored under the vaccination program are- Foot and Mouth Diseases, Theileriosis, Rabies, Brucella, Anthrax, Hemorrhagic Septicemia, and other diseases.

Legal Requirements and Permissions to Set Up a Dairy Farm

The legal steps are different in all the states. It depends on whether you strive to process milk and its products. The information concerning license and permits may be applied to dairy farm license in Uttar Pradesh, dairy farm license in West Bengal, dairy farm license in Punjab, dairy farm license in Haryana, dairy farm license in Maharashtra, dairy farm license in Rajasthan, dairy farm license in Haryana, dairy farm license in Madhya Pradesh, dairy farm license in Chhattisgarh, dairy farm license in Bihar, and other states of India.

The basic steps are mentioned below-

Registration of Firm:

You may start the small to medium Business either a Proprietorship or Partnership Firm.

If you are starting this Business as One Person Company, then you have to register your firm as a proprietorship.

For Partnership operation, you have to register as a limited liability partnership (LLP) or Pvt. Ltd. Company with Registrar of Companies (ROC).

GST Registration:

it is mandatory to get the GST number to run the business; you need to apply for the GST registration.

Trade License:

obtain trade license from local authorities

MSME/SSI Registration:

this MSME/SSI Registration will help you to get schemes and facility for the business offers by the state government

BIS certification:

BIS has mentioned the specific quality standard for Business. ISI specification for the

Trade Mark:

you can secure your brand with trademark registration

IEC code: 

IEC code is essential for the export of the product

Safety and Standard Authority of India (FSSAI):

This business is categories under food processing business; therefore, you must have to take the FSSAI license.


state insurance which is an insurance scheme for workers.

ESI Registration:

Employees provident fund is compulsory for the business where more than 20 employees are working.

To comply with the above processes and registration, one might need any legal expert who would help in absolute legal compliance to meet industrial standards. 

Scope for Dairy Farming

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India is empowered with the vastest livestock population in the entire world. It reports about 57.3 % of the world’s buffalo population & 14.7 % of the cattle population. Therefore, there is an incredible scope for boosting milk production via profitable dairy farming.

The dairy farming business in India can generate a rosy picture for dairy business owners. This form of business’s huge potential is because people nowadays have become more health-conscious and have entailed milk and milk products in their daily diet regime. Amid the pandemic, people have been focusing more on strengthening their immune system, and therefore, the demand for milk, especially the  A2 Cow milk , has gained pace in the Indian market. Before commencing a dairy farm business, you should be ready with your dairy farming business plan.

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dairy farm business plan in india

Dairy Farm Business Plan Template

Written by Dave Lavinsky

dairy farm business plan

Dairy Farming Business Plan

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

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

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

Why You Need a Business Plan

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

Sources of Funding for Dairy Farming Businesses

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

    Finish Your Business Plan Today!

How to write a business plan for a dairy farming business.

If you want to start a dairy business or expand your current one, you need a business plan. Below we detail what should be included in each section of your dairy farming business plan:  

Executive Summary

Your executive summary provides an introduction to your dairy farming business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of dairy farm you are operating and the status. For example, are you a startup, do you have a dairy farm that you would like to grow, or are you operating dairy farming businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the dairy farm industry. Discuss the type of dairy farm you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of dairy farm you are operating.

For example, you might operate one of the following types of dairy farming businesses:

  • Freestall dairy farm : this type of dairy farm provides plenty of ventilation for ultimate comfort for the cow as well as freestall barns which allow the cows more freedom to eat, drink, and rest wherever they like.
  • Drylot dairy farm: this type of dairy farm is suitable for drier climates and cows are given access to shade and shelter on a large dry-dirt ot for relaxation. The cows have plenty of room for feed and water and free reign to eat and drink as they please.
  • Pasture-based dairy farm: this type of dairy farm is a more traditional setup where cows receive an “all access pass” to green pastures to graze and rest when they are not being milked in the milking parlor. This type of dairy farm also provides cows feed and water in the barns and provide enough cover for inclement weather when needed.

In addition to explaining the type of dairy farm you will operate, the Company Analysis section of your dairy farming business plan needs to provide background on the business.

Include answers to question such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, reaching X amount of customers served, etc.
  • Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the dairy farm industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the dairy farm industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your dairy farming business plan:

  • How big is the dairy farm industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your dairy farm? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your dairy farming business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: grocery retailers, families, and individual buyers. 

As you can imagine, the customer segment(s) you choose will have a great impact on the type of dairy farm you operate. Clearly, families would respond to different marketing promotions than grocery retailers, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.  

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other local dairy farms. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes grocery stores, farmers markets, milk alternatives (vegan), etc.

With regards to direct competition, you want to describe the other dairy farming businesses with which you compete. Most likely, your direct competitors will be dairy farms located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

  • What type of dairy farm are they?
  • What areas do they serve?
  • What types of customers do they serve?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide dairy farm products that your competitors don’t offer?
  • Will your cows be raised in a better facility?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a dairy farming business, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of dairy farm that you documented in your Company Analysis. Then, detail the specific services you will be offering. For example, in addition to dairy farm products, will you provide a petting zoo, cheese making training, and any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your dairy farm. Document your location and mention how the location will impact your success. For example, is your dairy farm located in a rural setting, on the outskirts of a metropolitan area, the countryside, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your dairy farm marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Advertising in local papers and magazines
  • Commercials
  • Social media marketing
  • Local radio advertising
  • Word-of-mouth

Operations Plan

While the earlier sections of your dairy farming business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your dairy farm, including cleaning and maintaining the dairy farm and cows, milking the cows, bottling of milk, cheese production, marketing, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to obtain your XXth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your dairy farm to a new location.  

Management Team

To demonstrate your dairy farm’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing dairy farms. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a dairy farm or a large profitable farm.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you start with X number of cows or will you expand your cow inventory slowly ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your dairy farm, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a dairy farm:

  • Cost of dairy farm construction and barn build-out
  • Cost of dairy farm supplies, cows, and equipment
  • Cost of marketing the dairy farm
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your list of products your dairy farm will offer, types of customers you will be targeting, and the areas your dairy farm will serve.  

Putting together a business plan for your dairy farming business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the dairy farm industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful dairy farm.  

OR, Let Us Develop Your Plan For You

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

Click here to see how a Growthink business plan writer can create your business plan for you.

Dairy Farming Business Plan FAQs

What is the easiest way to complete my dairy farming business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your dairy farming business plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of dairy farming business you are operating and the status; for example, are you a startup, do you have a dairy farming business that you would like to grow, or are you operating a chain of dairy farming businesses?

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Starting Dairy Farming Business Plan (PDF)

dairy farming business plan

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.

Land for Dairy Cattle Farming Business

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

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

Housing For Dairy Farm Business

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

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

Dairy Farm Equipment

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

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

Breeding Stock for Dairy Farming Business

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

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

Feed And Nutrition

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

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

milk cow farm business plan

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

dairy farming business plan pdf

Testimonial 1

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

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I purchased a business plan from you, and I’m glad to inform you that I was able to get my loan, and I’m starting my poultry farming business on the 1 st of July. This was made possible because of your business plan. Thank you very much, you made my dream come true.

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Testimonial 5

I was able to understand the business side of farming because of your business plan. You did extensive research; the business plan was well prepared and fully detailed.  It made everything clear, and I have somewhere to start now. I am confident that I am going to succeed in my business because of the guidance from your business plan.

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

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

milk cow farm business plan

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

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

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

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Dairy Farming 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.

Image of Zenbusiness business formation

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.

Image of Zenbusiness business formation

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!

dairy farm business plan in india

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.

dairy farm business plan in india

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, 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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Dairy Package Market 2023: A Study of the Leading Regions and Players in Industry Forecast till 2030

"Final Report will add the analysis of the impact of COVID-19 on this industry."

Global Dairy Packages Market research report provides in-depth information about market overview, product overview and scope and market segments by types, applications, manufacturers and geographical regions. The study also covers product innovation and development, providing a detailed analysis of market strategies, geographies and industries of the industry's main competitors. Dairy Package Market provides comprehensive information on competitive assessment, including quantitative analysis and in-depth qualitative analysis. This information ranges from a macro overview of overall market size, industry chain and market dynamics to micro detail of segment markets by type, application and region.

Get a Sample Copy of the Report at -

Major Players in Dairy Package market are:

To Understand How Covid-19 Impact Is Covered in This Report -

Dairy Package Market by Types:

Dairy Package Market by Applications:

Dairy Package Market Key Points:

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historical data and forecast (2022-2027):

Client Focus

Does this report consider the impact of COVID-19 and the Russia-Ukraine war on the Dairy Package market?

Yes. As the COVID-19 and the Russia-Ukraine war are profoundly affecting the global supply chain relationship and raw material price system, we have definitely taken them into consideration throughout the research, and in Chapters 1.7, 2.7, 4.X.1, 7.5, 8.7, we elaborate at full length on the impact of the pandemic and the war on the Dairy Package Industry.

How do you determine the list of the key players included in the report?

With the aim of clearly revealing the competitive situation of the industry, we concretely analyze not only the leading enterprises that have a voice on a global scale, but also the regional small and medium-sized companies that play key roles and have plenty of potential growth.

Please find the key player list in Summary.

What are your main data sources?

Both Primary and Secondary data sources are being used while compiling the report.

Primary sources include extensive interviews of key opinion leaders and industry experts (such as experienced front-line staff, directors, CEOs, and marketing executives), downstream distributors, as well as end-users.

Secondary sources include the research of the annual and financial reports of the top companies, public files, new journals, etc. We also cooperate with some third-party databases.

Please find a more complete list of data sources in Chapters 11.2.1 and 11.2.2.

Can I modify the scope of the report and customize it to suit my requirements?

Yes. Customized requirements of multi-dimensional, deep-level and high-quality can help our customers precisely grasp market opportunities, effortlessly confront market challenges, properly formulate market strategies and act promptly, thus to win them sufficient time and space for market competition.

Inquire or Share Your Questions If Any before the Purchasing This Report

Chapter including in Dairy Package market report:

Some of the key questions answered in this report:

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Detailed TOC of Global Dairy Package Market Research Report 2021

1 Dairy Package Market Overview

1.1 Product Overview and Scope of Dairy Package

1.2 Dairy Package Segment by Type

1.2.1 Global Dairy Package Market Size Growth Rate Analysis by Type 2021 VS 2027

1.3 Dairy Package Segment by Application

1.3.1 Global Dairy Package Consumption Comparison by Application: 2016 VS 2021 VS 2027

1.4 Global Market Growth Prospects

1.4.1 Global Dairy Package Revenue Estimates and Forecasts (2016-2027)

1.4.2 Global Dairy Package Production Estimates and Forecasts (2016-2027)

1.5 Global Dairy Package Market by Region

2 Market Competition by Manufacturers

2.1 Global Dairy Package Production Market Share by Manufacturers (2016-2021)

2.2 Global Dairy Package Revenue Market Share by Manufacturers (2016-2021)

2.3 Dairy Package Market Share by Company Type (Tier 1, Tier 2 and Tier 3)

2.4 Global Dairy Package Average Price by Manufacturers (2016-2021)

2.5 Manufacturers Dairy Package Production Sites, Area Served, Product Types

2.6 Dairy Package Market Competitive Situation and Trends

3 Production and Capacity by Region

3.1 Global Production of Dairy Package Market Share by Region (2016-2021)

3.2 Global Dairy Package Revenue Market Share by Region (2016-2021)

3.3 Global Dairy Package Production, Revenue, Price and Gross Margin (2016-2021)

3.4 North America Dairy Package Production

3.5 Europe Dairy Package Production

3.6 China Dairy Package Production

3.7 Japan Dairy Package Production

3.8 South Korea Dairy Package Production

4 Global Dairy Package Consumption by Region

4.1 Global Dairy Package Consumption by Region

4.2 North America

4.4 Asia Pacific

4.5 Latin America

5 Production, Revenue, Price Trend by Type

5.1 Global Dairy Package Production Market Share by Type (2016-2021)

5.2 Global Dairy Package Revenue Market Share by Type (2016-2021)

5.3 Global Dairy Package Price by Type (2016-2021)

6 Consumption Analysis by Application

6.1 Global Dairy Package Consumption Market Share by Application (2016-2021)

6.2 Global Dairy Package Consumption Growth Rate by Application (2016-2021)

7 Key Companies Profiled

8 Dairy Package Manufacturing Cost Analysis

8.1 Dairy Package Key Raw Materials Analysis

8.2 Proportion of Manufacturing Cost Structure

8.3 Manufacturing Process Analysis of Dairy Package

8.4 Dairy Package Industrial Chain Analysis

9 Marketing Channel, Distributors and Customers

9.1 Marketing Channel

9.2 Dairy Package Distributors List

9.3 Dairy Package Customers

10 Market Dynamics

10.1 Dairy Package Industry Trends

10.2 Dairy Package Growth Drivers

10.3 Dairy Package Market Challenges

10.4 Dairy Package Market Restraints

11 Production and Supply Forecast

11.1 Global Forecasted Production of Dairy Package by Region (2022-2027)

11.2 North America Dairy Package Production, Revenue Forecast (2022-2027)

11.3 Europe Dairy Package Production, Revenue Forecast (2022-2027)

11.4 China Dairy Package Production, Revenue Forecast (2022-2027)

11.5 Japan Dairy Package Production, Revenue Forecast (2022-2027)

11.6 South Korea Dairy Package Production, Revenue Forecast (2022-2027)

12 Consumption and Demand Forecast

12.1 Global Forecasted Demand Analysis of Dairy Package

12.2 North America Forecasted Consumption of Dairy Package by Country

12.3 Europe Market Forecasted Consumption of Dairy Package by Country

12.4 Asia Pacific Market Forecasted Consumption of Dairy Package by Region

12.5 Latin America Forecasted Consumption of Dairy Package by Country

13 Forecast by Type and by Application (2022-2027)

13.1 Global Production, Revenue and Price Forecast by Type (2022-2027)

13.1.1 Global Forecasted Production of Dairy Package by Type (2022-2027)

13.1.2 Global Forecasted Revenue of Dairy Package by Type (2022-2027)

13.1.3 Global Forecasted Price of Dairy Package by Type (2022-2027)

13.2 Global Forecasted Consumption of Dairy Package by Application (2022-2027)

14 Research Finding and Conclusion

15 Methodology and Data Source

15.1 Methodology/Research Approach

15.1.1 Research Programs/Design

15.1.2 Market Size Estimation

15.1.3 Market Breakdown and Data Triangulation

For Detailed TOC -

Contact Us:

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Press Release Distributed by The Express Wire

To view the original version on The Express Wire visit Dairy Package Market 2023: A Study of the Leading Regions and Players in Industry Forecast till 2030

dairy farm business plan in india


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