1. Can a dairy business be profitable?
There is a steady demand for milk and milk products in India or anywhere in the world, so starting a dairy farm is considered an all-season opportunity. Approximately 14 to 18 hours of your time are required to operate this business. Each year, milk production in India increases by over 3% – 4%.
For all these reasons, the dairy farming business is emerging as a thriving market for business people. Running a dairy farm takes a lot of effort, a lot of time, and a lot of useful resources. It’s not just about cleaning the farm, but also about managing sheds, feeding the cattle, or washing and milking the animals. Let us take a closer look at how to get started.
2. Dairy business: The market
If you were to start a dairy business, who would be your target market for dairy products? It is necessary to examine income groups, geography, and household types, such as nuclear and joint family, to identify the highest-selling dairy products. We can also learn about the consumption patterns and demand of the market by studying a cow dairy farm or a buffalo dairy. The fat content of buffalo milk is much higher than that of cow milk.
Despite milk being pasteurized in India, many families boil it to extract the ‘Malai’ out of it and prepare ghee at home. While this method is inexpensive, it is also beneficial to consume homemade ghee. However, there are also areas in India that have a high density of nuclear families and a high level of disposable income. They will prefer to purchase low-fat milk, and they will be able to afford premium cow milk. A2 desi cow milk with a higher population density of children under the age of 10 is considered more digestible in regions with a high density of children under 10 years of age in India.
3. How To Start Dairy Business?
Firstly, let’s understand what a Dairy Business Plan consists of. It describes the business, its scope and objectives, its principal problems, and its financials. In the Mission, Vision and Objectives of the company, there are goals associated with the dairy business, such as producing the highest quality milk, or providing value for money to customers.
A company’s history and location: It usually consists of information about where it is located in a particular region. Whether the area is owned or rented, details should be included about the area. Data about the cattle and farm, along with information about the equipment: Data about the total number of cattle used in the business, as well as the various types of equipment acquired, along with their billing details, are also important information.
An effective dairy marketing strategy includes all information about business proposals, marketing plans, commercials, and new investments to be made as well as brand campaigns. There should be a description of the execution of the plan, including forecasted timelines for its implementation and management. A forecast for the following five years, with an annual analysis and information on all the permits and licenses needed to get this business going.
4. Plan for a dairy farm
We will now explore the components of the dairy farming business which are to be utilized before and after it is started:
- A farm owner is required to keep cultivated fields in order to produce fodder yields for the cattle. The size of the field depends on how many cattle the farmer keeps. Generally, an acre of land can feed anywhere between 7 and 10 cows.
- Breed selection and vaccination are both necessary for producing more milk. A proper vaccination schedule is also necessary for disease control in cattle and to protect their health.
- Sheds are covered areas that must be built in farmland before cattle can be taken in, where they will be kept.
- It is important to provide abundant cattle fodder and water since water is needed in order to grow green fodder and to nourish cattle.
5. Should I choose a cow or a buffalo?
In India, there are good buffalo breeds like Murrah and Mehsana, which produce milk at a cost of around Rs.1500 to Rs.2000 per liter per day. Cows breed frequently and give one calf every 13-14 months in the interval. Due to their docility, they are easy to manage. Holsteins and Jerseys have been well adapted to the Indian climate. Cow milk contains lower fat content than buffalo milk. The production of butter and butter oil (Ghee) requires more buffalo milk.
The milk of buffalo can also be used to prepare tea. Buffaloes can be kept on coarse crop residues, which decreases feed costs. Buffaloes require cooling facilities. According to the Indian system, a dairy farm should have at least 20 animals, such as ten cows and ten buffaloes. After that, your strength and market potential need to be reviewed. This strength can reach 100 animals in 50:50 or 40:60 proportions.
6. Legal requirements for doing business in India with dairy products
The first point of contact for a typical individual dairy farm is the local area veterinary and dairy development department, depending on whether they also intend to process milk and manufacture products. You do not need to contact any other government authority if your farm is a registered dairy cooperative society. The license is issued by a veterinary officer of your municipality, corporation, or local panchayat. In connection with a dairy farm, you may need permission from the pollution control board. The BIS (BUREAU OF INDIAN STANDARDS) outlines the following:
- A guideline for cattle housing in rural areas based on BIS IS 11799:1986 (R2002)
- Gaushalas and Other Organized Milk Producers: BIS IS 11942:1986 (R2002)
- This standard specifies loose housing for animals in accordance with BIS IS 12237:1987 (reaffirmed 2004).
7. Who Can I Contact About Nabard’s Dairy Loans?
Loans for opening dairy farms can be subsidized by up to 33%. Under the Dairy Entrepreneurship Development Scheme (DEDS), the National Bank for Agriculture and Rural Development (NABARD) provides farmers with benefits by subsidizing dairy farming loans through authorized banks.
When farmers apply for dairy farming loans up to Rs. 7 lakh, they will receive a subsidy of 33.3% of the entire project cost from approved Regional Rural Banks (RRBs). A representative of the nearest bank may also provide applicants with all the necessary information related to subsidy and loan facilities.
8. The key takeaways
While maintaining a cattle farm is not an easy task, with much zeal and technology at hand, it can be profitable. It can be challenging to breed cattle and to produce milk that is dependent on nature; sometimes these factors are beyond our control. Managers who are alert, hardworking, and responsible can do wonders. At every stage of production, quality control is also essential.