dairy farming business plan in karnataka

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Dairy Farming In Karnataka, Loans, Subsidies, Schemes

Table of contents, development of dairy farming in karnataka:, karnataka milk federation in dairying:, milk products in karnataka:, cattle population in karnataka:, cattle breeds in karnataka:.

• Cooperative Milk Society in Karnataka:
• District Milk Union In Karnataka:

Role of KMF in the State:

Feed and fodder utilization in karnataka:, loans for dairy farming in karnataka: , subsidies for dairy farming in karnataka:, nabard subsidy  schemes:, introduction to dairy farming in karnataka.

Karnataka State has always remained at the forefront of all agricultural development initiatives in the country and dairy development is not an exception. At a time when agriculture was grappling with the consequences of rapid and unidirectional intensification in its production process, dairy farming provided not just the much-required alternative but also revived and further strengthened the animal-crop production linkage. Taking full advantage of the potential of the dairy enterprise to provide continuous and regular employment as well as income, production in the state increased rapidly. Now the problem of surplus production has besieged the state to an extent that milk holidays have become a common and regular feature in almost all of its milk unions causing a great deal of inconvenience to milk producers, particularly during the flush seasons. Dairy farming in Karnataka, as elsewhere in the country, is largely characterized by the prevalence of dairy enterprises that are mostly subsidiary occupations alongside the main agricultural activity of the farmers. Specialized dairy enterprises do exist, but not only their number abysmally low as compared to regular types but also are restricted mostly to urban areas and their surroundings. Karnataka stands sixth in milk production in the country and it occupies the third position with respect to milk production under the cooperative sector in the country.

Dairy development in Karnataka has a history, the growth in the population of dairy animals, as well as the production, substantiates it. Karnataka Government has started an organization known a Karnataka Dairy Development Corporation in 1975. Bangalore, Mysore, Hassan, and Tumkur cover 8 Southern districts of Karnataka and later it covered all the districts.

The main objective of this project was for developing an integrated program for increasing milk production in rural areas of southern Karnataka, providing milk collection, processing, and marketing facilities, and technical services for artificial insemination and animal health. Milk cooperative societies were organized and grouped into unions, which had a dairy plant and a feed plant. The dairy development activity was continued under the organization of the Karnataka Milk Federation (KMF) that came into existence as a successor to Karnataka. KMF is the third largest cooperative in the cooperative sector in the country today in terms of procurement and sale. It stands first in South India.

Karnataka Milk Federation (KMF) is a cooperative Apex Body in the State of Karnataka representing dairy farmers’ organizations and also implementing dairy development activities since its inception. The dairy cooperative movement in Karnataka can be truly called the Farmers’ Movement since starting from the village level Dairy Cooperatives to the Federation at the state level. Karnataka Milk Federation is managing all milk unions and providing direction for the development of Dairy Farming in the State.

Karnataka is a leading state in the manufacturing of milk products. At present, Karnataka Milk Federation and Unions are manufacturing and providing about 25 different dairy products, and the list has been increasing year after year, but milk and milk products are sold under the NANDINI brand name, which has become a household name in Karnataka. Toned Milk, Homogenized Toned Milk, Sterilized Milk and Full Cream Milk Under Nandini brand have been sold and some major products like Nandini Ghee, Butter, Curds, Skim Milk Powder, Cheese, Badam Powder, Paneer, Peda, Mysore Pak, Burfi, Jamoons, Khava, flavored milk, and Ice Cream are sold in Karnataka and also demand is there in other states.

Read this: Poultry Farming Loan, Application Process .

Cattle and buffaloes have an integral part of the crop-livestock system in the Karnataka economy for the last thousands of years. The majority of the farmers are depending on Cattle and Buffaloes for milking and plaughing where the cattle population plays an important role in the farm community.

Farmers in rural areas supplement their income by producing milk through Cattle and buffalo and plough their land with male Buffaloes and Oxes. In recent years high yielding cross-breed cows have been playing a vital role in milk production than local, Cow, and Buffaloes.

Cross-bred cattle produce more milk as compared to indigenous ones at low cost. Karnataka is producing surplus milk at present and has been a rise in the per capita milk consumption in the country.

Karnataka state has six indigenous native cattle breeds. As the state does not have any prominent milch breed, the dairy farmers use crossbred cattle to increase milk production

• Deoni cattle breed: Among the six breeds this is the only dual breed. Deoni male animals are mainly used for ploughing and transportation, And the cows yield up to 1,500 kg of milk per lactation. Deoni breed is distributed in Bidar, Gulbarga districts
• The other five registered breeds are Amritmahal, Hallikar, Khilari, Krishna Valley, and MalnadGiddaand these are draught breeds.
• The male animals of these breeds are good for ploughing and transportation, whereas cows are poor milk yielders with an average milk yield of less than 500 kg per lactation.
• These animals are sturdy and can stand adverse climatic conditions.
• Amritmahal cattle were used by Nawab Hyder Ali and Tipu Sultan for carrying ammunition into the battlefield on rough roads and across difficult terrains. Amritmahal breed is distributed in Chikmagalur, Davanagere, Shimoga, Hassan, Chitradurga, Tumkur districts.
• Hallikar breed is distributed in Hassan, Mysore, Mandya, Tumkur, Ramanagara, Chamarajanagar districts.
• Khilari breed is distributed in Belgaum, Bijapur, Bagalkot, Dharwad, Haveri, and Gulbarga districts
• KrishnaValley breed is distributed in Belgaum and Bagalkot.
• Malnad breed is distributed in Uttara Kannada, Dakshina Kannada, Udupi, Shimoga, Chikmagalur, Haveri, Hassan & Kodagu districts.
• Both Amritmahal and Krishna Valley breeds are being considered for conservation.
• Pandharpuri buffaloes are reared in northern Karnataka. The breed is popular for its rapid reproductive ability. This breed of buffalo yields 6-7 liters of milk per day. But under good management, the yield can go up to 15 liters.

Cooperative Milk Society in Karnataka :

The Dairy Cooperative Society functions and acts as a marketing outlet for milk produced in villages. The payment for milk procured, input facilities, veterinary first aid, sale of cattle feed, supply of fodder seeds, etc. are provided to the farmers through these societies.

District Milk Union In Karnataka :

Union is the middle tier of the complex cooperative organization’s network federating the village societies in earmarked geographical area form unions. The milk unions are organized to make economically viable and their jurisdiction extends from one to three districts.

• Karnataka Milk Federation is the final tier of the system by federating the milk unions in the state forming the state-level organizational unit.
• The dairy union activities are being implemented by the federation. The main role of the federation is to market surplus milk and its products and to produce and supply centralized inputs.
• There are 9,072 Dairy Cooperatives Registered, out of which 7,678 are functioning at village level in the state. 13 District Milk Unions are working as the middle tier of the complex cooperative society network.
• Dairy cooperative society functions daily and acts as a marketing outlet for the milk produced in the village.
• Input facilities are also channelized to the dairy farmers through these societies and include veterinary first aid, payment for the milk purchased by producers is also arranged through the societies.
• A string of Dairy Cooperative Societies is organized to form a milk procurement route linked to the chilling center or a dairy.
• The trend of establishing dairy co-operative societies by all unions has been increased in the state indicating that majority of co-operatives are established in a rural area to reduce Goulis in a rural area.
• There has been a tremendous increase in the number of milk producers’ members in the state and production, marketing is also increasing rapidly year by year in the state.
• There are five milk unions are Bangalore Kolar, Mandya, Tumkur, and Belgaum. Four unions cover the two districts they are Mysore Chamaraj Nagar, Bijapur, Bagalkot, Gulbarga, Bidar, and Dakshin Kannada, Udupi.
• And other unions cover three districts, viz. Hassan, Chikkamangalur, Kodagu in Shimoga Union, covers Chitradurga and Davangere Districts. Raichur Union covers Koppala and Bellary Districts and One Union Territory extends to four districts. They are in Dharwad Union covering Gadag, Haveri, Uttar Kannada districts.  

The feed and fodder used by the farmers for dairy farming in different milk zones in the state, clearly shows us that the usage of green fodder and dry fodder is higher in almost all zones in the state but the concentrates and labor usage is least.

• In the Bangalore zone, the green fodder used for the cross-bred cows was significantly higher than that of the local cow or buffalo.
• In Kolar zone dry fodder, green fodder concentrates and labor utilization is highest among crossbred cows.
• In the Mysore zone, it is different, the dry fodder usage is higher than the green fodder use.
• In the case of buffalo dry fodder usage highest, while that of green fodder is highest for crossbred cows, and labor usage is highest for crossbred while least for local cows.
• In the Mandya zone, the green fodder usage is more than that of the dry fodder usage among all animals. Green fodder use for cross-bred is more than twice the green fodder utilization for buffalo.
• The green fodder usage is highest for cross-bred cows followed by buffalo and local cows accordingly in the Tumkur zone.
• In the Dharwad zone, the dry fodder use is higher than green fodder for local cows and buffalo while green fodder is used more for crossbred cows.
• In the Belgaum zone, the dry fodder use is more than green fodder.
• In the Bijapur zone, the striking feature is that the green fodder usage is more for all the animals, and green fodder used for buffaloes is more than that of the crossbred cow.
• In the Gulbarga zone, the dry fodder utilization was more than green fodder for all types of animals.
• In a Dakshin Kanada zone, the green fodder usage is more for crossbred cow and buffalo while it is less than dry fodder for the local cow.
• In the Shimoga zone, the dry fodder usage is nearly twice that of the green fodder use in this one.
• In Raichur Zone, the dry fodder usage is more than green fodder use for all the animals and use of concentrates is more for buffalo than crossbred cows.
• In the Southern regions of Karnataka, the green fodder is used more for crossbred animals, whereas buffaloes and local cows were reared more on dry fodder.
• In the Northern regions of Karnataka, dry fodder is extensively used perhaps due to the limited availability of green fodder round the year.

Read this: Fodder Crops For Dairy Cattle .

Central Bank of India: Offer loans for starting dairy units for milk productions.

• Eligibility: Small and Marginal farmers, groups of farmers, firms, companies, societies, NGOs, etc.

For loans up to Rs.1.00 lakh: Nil

For loans above Rs.1 lakh and up to Rs.5 lakh: 10%

For loans above Rs.5 lakh and up to Rs.10 lakh: 15%

For loans above Rs.10 lakh: 20%.

• Repayment Period: Repayment period: 3-7 years.

SBI Karnataka: SBI is offering two bank loan schemes for Dairy related agricultural projects. The first one is -SBI Scheme For Dairy Societies- which provides finance for creating infrastructure like Construction of Milkhouse or Society office, Purchase of Automatic milk collection system, transport vehicles, Bulk chilling unit; and the second one is SBI Dairy Plus Agriculture loan scheme that provides finance for milk-producing societies recognized private milk dairies posting profit in the past two years.

• SBI DAIRY PLUS AGRICULTURE LOAN SCHEME: gives loans from 50000 to 5 Lakhs.
• SBI DAIRY SCHEME FOR Dairy Societies: LIMIT OF LOAN FOR DAIRY SOCIETIES: Milkhouse or society office Rs. 2 lakh, Automatic milk collection system Rs. 1 lakh, Milk transportation Rs. 3 lakh, Chilling Unit Rs. 4 lakhs.

IDBI Dairy Loans: Offer loans for Individuals and groups of farmers for Purchase of high-yielding milch, Construction of cattle shed, Purchase of dairy equipment, chaff cutters, etc., and expenditure for transportation of animals where the animals are not purchased locally.

• Loan Limit: Min: 50000 to Max: 10 Lakhs.
• Repayment Period: 3 to 6 years.

Canara Bank:  Offer loans for 1. Construction of cattle shed 2. Purchase of high-yielding milch cattle (yielding not less than 5 liters per day) 3. Purchase of dairy equipment, cattle feed, and the cultivation of green fodder. 4. Expenditure incurred for transportation of animals where the animals are not purchased locally. 5. Initial feed cost for a period of 1 month at the rate of 120 kgs. per animal for the first batch of animals. 6. Setting up on-farm processing and pasteurization plants. 7. Rearing of heifers.

Eligibility:

• The farmer should have cattle shed/arrangements enough to house the existing animals if any, and those proposed to be purchased.
• The farmer should be cultivating green fodder or should have definite arrangements for its supply.
• Drinking water should be available in the area.
• Veterinary facilities should be readily and easily available, including a facility for artificial insemination.
• The farmer should have experience/knowledge in maintaining dairy animals.
• There should be assured marketing facilities.

Loan Margin : Loans up to Rs.1 lakh – Nil Loans above Rs.1lakh – 15-25%.

Repayment Period: 5 to 6 years.

Pashu Bhagya

• The Scheme includes Back ended subsidy of 33% to farmers belonging to Scheduled Caste and Scheduled Tribes and 25% to other small and marginal farmers will be provided to start cattle, sheep, goat, pig, poultry units with a maximum loan of Rs.1.20 lakh from commercial banks (The subsidy to SC/ST has been revised from 33% to 50% vide Pashu Bhagya Administrative)
• Short-term loans up to Rs.50, 000/- at 0% interest are given through Co-operative Banks, on the lines of crop loan, for providing cattle feed/other maintenance expenditure.
• The subsidy is offered to the members of Milk Producers’ Co-operative Societies for payment of insurance premiums up to 5 cattle.
• The scheme provides Rs.5,000/- ex-gratia under ‘Kurigahi Suraksha Scheme.

Read this: Contract Farming .

NABARD Subsidies for Dairy  in Karnataka:

The NABARD subsidy for dairy farming scheme helps in:

• In setting up modern dairy farms for the production of milk.
• It offers subsidies for heifer calf rearing thereby conserve good breeding stock.
• It helps in a structural change in the unorganized sector so that initial processing of milk can be taken up at the village level itself.
• It helps in upgrading the quality and traditional technology to handle milk on a commercial scale.
• It creates self-employment and provides infrastructure, mainly for the unorganized sector.

Eligibility in NABARB Subsidies:

• Small and Marginal Farmers.
• Individual Entrepreneurs.
• Startup Companies
• Groups of unorganized and organized sectors etc.
• Groups, Dairy Societies, Milk Unions, and Milk Federations, etc.

Type1: For the establishment of small dairy units with crossbred cows/ indigenous descript milch cows like Sahiwal, Red Sindhi, Gir, Rathietc / graded buffaloes up to 10 to 15 animals.

• Investment : the investment will be Rs 5.00 lakh for 10 animal units – the minimum unit size is 2 animals with an upper limit of 10 animals.
• Subsidy: 25% of the investment (33 .33 % for SC / ST farmers,). The Subsidy shall be restricted depending on the unit size.

Type2: Rearing of heifer calves – cross bred, indigenous descript milch breeds of cattle and of graded buffaloes – up to 20 calves.

• Investment required: Rs 4.80  to 4.90 lakh for 20 calf units – the minimum unit size of 5 calves with an upper limit of 20 calves.
• Subsidy : 25% of the investment (33.33 % for SC / ST farmers. The Subsidy shall be restricted depending on the unit size.

Type3 : Vericompost (with the milch animal unit. To be considered with milch animals and not separately).

• Investment: Rs. 20,000/-
• Subsidy : 25% of the investment  (33.33 % for SC / ST farmers).

Type4: Purchase of milking machines /milk testers/bulk milk cooling units (up to 2000 lit capacity).

• Investment: Rs 18 lakh.
• Subsidy : 25% of the investment (33.33 % for SC / ST farmers).

Type5: Purchase of dairy processing equipment for the manufacture of indigenous milk products.

• Investment : Rs 12 lakh.
• Subsidy: 25% of the investment (33.33 % for SC / ST farmers).

Type6: Establishment of dairy product transportation facilities and cold chain.

• Investment : Rs 24 lakh.

Type7 : Cold storage facilities for milk and milk products.

• Investment: Rs 30 lakh.

Type8 : Dairy marketing outlet / Dairy parlour.

• Investment: Rs 56,000/-

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

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13 COMMENTS

I want to start hallikar Cows and heifers farm and i dont know the way to apply loan .. and i am it sure weather i get loans

We have land and wants to start a cow farm. I dont know the subsidy details and the best cows availability.

Hi , my name is akash im 23 years old i want to start milk dairy but i dont have so much money for this

Hi Myself: Akshay J , I have own agricultural land so I’m thinking to start up a dairy farm in it. I have 30% of knowledge of it, and also I don’t know properly about the bank loans provided to it, so can you suggest me how to do everything.

I am kavya leaves in Hassan Started cow farm and got loan in canara bank but i need an idea how to go For Nabard subsidy

I want to start dairy products in this how much sabsidy gives me for a bank and what a amount saficiant for it.

Hi I like to start a dairy farm how to apply for a loan

I want to start dairy…farm how to apply for loan…

I want to start dairy form. How to apply loan subsidy

I need loan for that how much can I get ..

I want start milk business what should I do and how much I can get loan and what all the documents I required to submit for loan?

Im waiting to start a milk dairy but I need the financial support from government and I’m planning to start big I need more information for this

i want to appy loan dairy farming

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Dairy Farm Business Plan Template

Written by Dave Lavinsky

Dairy Farming Business Plan

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

Download our Ultimate Business Plan Template here >

What is a Dairy Farm Business Plan?

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

Why You Need a Business Plan for a Dairy Farm

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

Sources of Funding for Dairy Farming Businesses

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

    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.  

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Dairy Farming Business Plan FAQs

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

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

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

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

Other Helpful Business Plan Articles & Templates

• Press Release
• Dairy Industry in Karnataka

Dairy Industry in Karnataka to Reach INR 3,270.9 Billion by 2032, Supported by Increasing Demand for Innovative Dairy Products

According to the latest report by IMARC Group, titled “ Dairy Industry in Karnataka: Market Size, Growth, Prices, Segments, Cooperatives, Private Dairies, Procurement and Distribution ," the dairy industry in Karnataka reached a value of INR 1,069.1 Billion in 2023. The dairy industry is the leading commercial enterprise that deals with the processing and harvesting of cow or buffalo milk for the large-scale production, distribution, and consumption of various dairy products. They extensively deploy two approaches, including pasteurization and dehydration, to extend the shelf-life, aroma, taste, content, and nutritional profile of the product. At present, the dairy industry in Karnataka primarily manufactures ghee, curd, spreadable fats, liquid and ultra-high-temperature (UHT) milk, frozen/flavored yogurt, cheese, and table butter as some of the common goods. These items are rich in proteins, calcium, potassium, probiotics, riboflavin, phosphorus, and vitamins A, D, and B12. These elements aid in maintaining blood pressure, promoting brain development, strengthening muscles, regulating body weight, and preventing the risk of type 2 diabetes. Dairy Industry in Karnataka Market Trends:

The rapid expansion of the dairy industry in Karnataka and the increasing consumption of various dairy products to meet the daily nutritional requirements are some factors majorly driving the market growth. This is further influenced by inflating disposable incomes, rapid industrialization, and growing consumer awareness regarding the multiple benefits of consuming dairy products. In line with this, the increasing demand for various ready-to-eat (RTE) and ready-to-drink (RTD) consumer goods, such as frozen desserts, milk powder, and yogurt, has facilitated the widespread adoption of dairy products in the food and beverage (F&B) sector, which is acting as another growth-inducing factor. Besides this, the increasing inclination toward organic dairy products among health-conscious consumers and the rising establishment of fast-food chains serving dishes made from different varieties of cheese, condensed milk, and buttermilk are supporting the market growth. Moreover, favorable initiatives undertaken by the Government of India (GoI), such as the National Dairy Program (Phase-1), to promote dairy farming, improve cattle health through fodder and feed availability, expand the milk procurement network, and offer subsidies to manufacturers are contributing to the market growth. Additionally, significant technological advancements in pasteurization and fermentation methods to enhance production procedures are driving the market growth. Furthermore, the extensive reliability of dairy industry manufacturers on e-commerce platforms over brick-and-mortar mode to ensure easy product availability, especially during the COVID-19 pandemic, is impelling the market growth. Other factors, such as ongoing research and development (R&D) activities, extensive utilization of dairy products in traditional recipes, and strategic collaborations amongst key players to launch innovative product variants for diverse applications, are creating a positive outlook for the market in the state. On account of the aforementioned factors, the market is anticipated to reach a value of INR 3,270.9 Billion by 2032, growing at a CAGR of 12.8% during 2024-2032. Market Summary:

• On the basis of the product type, the market has been segregated into liquid milk, ghee, curd, paneer, ice cream, table butter, skimmed milk powder, frozen/flavoured yoghurt, fresh cream, lassi, butter, UHT, sweet condensed and favored milk, cheese, dairy whitener, infant food, and malt-based beverages. Amongst these, liquid milk represents the biggest product segment in Karnataka.
• The competitive landscape of the industry has also been examined, with some of the key players being Karnataka Milk Federation, Tirumala Dairy, Dodla Dairy, and Heritage Dairy.  

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India Dairy Market Report Snapshots Source:

Statistics for the 2022 India Dairy market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. 

• India Dairy Market Size Source
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• India Dairy Companies Source

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• Agriculture

Livestock Farming

Aquaculture

Poultry Farming

The dairy industry in India is one of the largest in the world. It is a vital part of the country’s economy and employs millions of people. The industry has been growing rapidly and is expected to continue. The mainstay of the Indian dairy industry is small & marginal farmers who own less than two cows each. However, there is an increasing trend towards contract farming, whereby large companies contract with small farmers to supply milk.

This has several advantages for both parties. For the farmer, it provides a guaranteed market for their milk and often comes with additional services such as training and animal health care. For the company, it ensures a reliable milk supply and can help reduce costs. Contract farming is still relatively new in India, but it is growing rapidly and is expected to play a vital role in the future development of the dairy industry.

In case you missed it: Contract Sheep Farming in India: Companies, Agreement, Profits, How it Works and the Pros and Cons

Contract farming has become a popular option for dairy farmers in India. Under this arrangement, a dairy farmer agrees to sell his milk to a processing company at a fixed price. The company provides the farmer with feed, veterinary services, and technical support. The farmer is also guaranteed a minimum price for his milk. This arrangement has several benefits for dairy farmers:

• It gives them access to quality feed and veterinary services.
• It ensures they receive a minimum price for their milk, even if market prices fall.
• It gives them the security of knowing they have a buyer for their milk. 

Of course, contract farming is not without its risks. If market prices rise above the price set in the contract, the farmer misses out on potential profits. And if market prices fall below the contract price, the farmer may be forced to sell his milk at a loss. Despite these risks, contract farming is increasingly seen as a viable option for Indian dairy farmers looking to improve their incomes and secure their livelihoods.

Dairy contract farming is a system in which farmers produce milk and other dairy products under contract to a processor or marketer. The terms of the contract may specify the type of production system to be used, the quality standards to be met, the price to be paid, and other conditions. Dairy contract farming can provide farmers with a source of income that is more stable than milk prices in the open market.

It can also help processors and marketers to ensure a supply of raw milk and dairy products that meet their specifications. However, contracts can also create risks for farmers, who may be required to make significant investments to meet the contract’s terms. Contracts can also be complex, and farmers must understand the terms & conditions before signing a contract with dairy companies. Farmers should seek advice from experienced agricultural lawyers or other advisers before signing a contract.

In case you missed it: Contract Goat Farming in India: How to Earn an Extra Income from this Long-Term Investment

Dairy farming is an integral part of the agricultural sector in India. Dairy industry is a source of livelihood for many small and marginal farmers and contributes to the country’s economy. The dairy industry in India is growing at a rapid pace and is expected to continue growing in the near future. The dairy industry plays a vital role and integral part of the Indian economy.

Dairy is a major source of livelihood for small & marginal farmers and contributes significantly to the country’s GDP. The dairy industry is also a major employer in the rural areas of India. Dairy farming provides an essential source of nutrition for the people of India. Milk and milk products are rich in protein, vitamins, and minerals. They are an essential part of the diet of many people in India, especially children and women. Dairy farming also helps to conserve natural resources. Dairy cows require less land and water than other livestock animals.

They also produce less greenhouse gas emissions than other animals raised for meat production. Dairy farming thus has a positive impact on the environment. The future of dairy farming in India looks bright. The demand for milk and milk related products will continue to grow in the near future as well. The government supports the industry and is taking steps to promote its growth. With proper support from the government and other stakeholders, the dairy industry in India has immense potential to grow and prosper.

In India, dairy contract farming has been successfully implemented in several states, including Gujarat, Madhya Pradesh, Maharashtra, Karnataka, Tamil Nadu, and Uttar Pradesh. The main objective of this type of contract farming is to provide small and marginal farmers with an opportunity to increase their milk production and incomes. Under the scheme, a farmer agrees with a milk processing company, wherein the company agrees to purchase all the milk produced by the farmer at a pre-determined price.

The company also provides the farmer with technical and financial assistance for procuring quality cattle feed, maintaining hygienic milking practices, and constructing requisite infrastructure on the farm. In return, the farmer agrees to sell his entire milk production to the company and follow all its guidelines regarding animal husbandry and milk production. The minimum requirements for a farmer to participate in dairy contract farming are:

• He must have at least two cows or buffaloes that are in milk yield
• He should have access to quality fodder for his animals
• He should be willing to construct the necessary infrastructure on his farm as per the company’s guidelines
• He should be able to commit to selling all his milk production to the company .

In case you missed it: Common Dairy Cattle Diseases, Symptoms, and Treatment: Check How this Guide Helps Dairy Farmers

• It provides a stable source of income for farmers.
• It helps to ensure a consistent supply of milk for the dairy industry.
• It allows farmers to utilize their resources better and improve their production efficiency.
• It provides an opportunity for small-scale farmers to enter the dairy industry.

Contract dairy farming has several disadvantages that need to be considered before signing any agreement. First, the terms of the contract may be unfair to the farmer, favoring the company instead. The farmer may be asked to invest in expensive equipment or make other changes to their farm that they cannot afford. Additionally, the contract may require the farmer to sell all of their milk production to the company, even if market prices are higher elsewhere.

This could limit the farmer’s income and cause financial hardship. Another disadvantage is that contract dairy farming can depend on the contracting company. If the company cancels the contract or raises prices, the farmer may be left in a difficult situation. This can lead to a loss of independence for farmers and an increased risk of exploitation.

Finally, contract dairy farming can have negative impacts on animal welfare. In some cases, farmers may be required to use harsh methods of milking or breeding that can cause distress for cows. Additionally, cows may be kept in crowded and unsanitary conditions if farms are not well-managed. This can lead to disease and suffering for animals.

Many dairy contract farming companies in India are working hard to improve milk quality and the quality of dairy products in the country. These companies have been instrumental in setting up modern dairy farms and providing technical and financial support to small and marginal farmers. Some of India’s leading dairy contract farming companies is Amul, a cooperative society based in Anand, Gujarat. It is the largest producer of milk and dairy products in India. 

Amul has a vast network of village-level societies that collect milk from farmers and send it to Amul’s processing plants. Amul supports farmers through its Animal Husbandry Extension Services (AHES) program. This program provides extension services, training, and financial support to farmers for building capacity and improving productivity.

Mother Dairy Mother Dairy is a National Dairy Development Board (NDDB) subsidiary. It was set up in 1974 to modernize the Indian dairy industry. Mother Dairy has a vast network of Milk Producers’ Organizations (MPOs) that work with small and marginal farmers. It provides extension services, training, financial support, and inputs to these farmer groups. 

Mother Dairy also has an extensive network of retail outlets across India selling its products. Krishna Contract Farming Company (KCFCL) KCFCL is a contract farming company based in Bangalore, Karnataka. It works with small and marginal farmers in Karnataka, Tamil Nadu.

In case you missed it: Understanding Backyard Poultry/Chicken Farming at Home: Check How this Guide Helps Beginners

Under a typical dairy contract farming agreement in India, the farmer is responsible for providing the land, infrastructure, and cow(s), while the company provides the feed and veterinary care. The farmer agrees to sell the milk to the company at a pre-agreed price. The contract may also stipulate that the company will purchase any surplus milk produced by the farmer. 

Dairy contract farming is a popular model in India, as it provides small-scale farmers with access to quality feed and veterinary care, which they might not be able to afford otherwise. It also guarantees a market for their milk, ensuring that they can make a reliable income from their dairy cows.

If you’re considering entering into a dairy contract farming agreement in India, it’s important to research and choose a reputable company to work with. Make sure you understand all the terms of the contract before signing anything and get everything in writing to avoid any issues later on.

Dairy contract farming has been a profitable venture for farmers in India. The main reason is the increased demand for milk and milk-related products in the country. This made to an increase in the price of milk, which has benefited the farmers involved in dairy contract farming. Another reason for the profitability of dairy contract farming in India is that there is a lot of government support for this sector.

The government provides subsidies and other financial incentives to encourage more farmers to get involved in this type of farming. This has helped to increase the number of farmers engaged in dairy contract farming, which has further boosted the profits they are able to make. Overall, dairy contract farming is a very lucrative option for farmers in India. There is a high demand for milk and milk related products in the country, and the government supports this sector. This has resulted in increased profits for the farmers involved in this farming.

In case you missed it: Tips to Start a Goat Farming Business: Check How this Guide Helps Beginners  

Dairy contract farming in India has become an increasingly popular option for small and marginal farmers looking to improve their economic situation. While some risks are associated with this type of farming, such as fluctuations in milk prices, the potential rewards can be significant.

With the proper contracts in place, dairy contract farming can provide a much-needed source of income for small farmers while helping to ensure a steady milk supply for the country’s growing population. If you live in the following states and plan for dairy contract farming in India, this may help you to understand the basics of contract dairy farming.

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Dairy Entrepreneurship Development Scheme

• Banking Product & Services
• Agriculture Loan

Eligibility

Loan amount.

• To generate self-employment and provide infrastructure for dairy sector and to set up modern dairy farms and infrastructure for production of clean milk.
• To encourage heifer calf rearing for conservation and development of good breeding stock.
• To upgrade traditional technology to handle milk on a commercial scale.
• To provide value addition to milk through processing and production of milk products.
• Farmers, Individual Entrepreneurs, SHGs, etc.
• As per NABARD Unit cost
• Upto Rs.1.60 lakh- No Margin
• Above Rs.1.600 Lakh 10% Margin
• Upto Rs.1.60 Lakhs- Hypothecation of the Animals.
• Above 1.60 Lakhs- Hypothecation of the Animals & mortgage.
• SC/ST farmers-33.33% & General farmers-25 %

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Dairy Farm Business Plan

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

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

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

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A Dairy Farm Business Plan?

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

1. Executive Summary

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

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

Introduce your Business:

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

Market Opportunity:

Dairy farm products:.

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

Marketing & Sales Strategies:

Financial highlights:, call to action:.

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

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2. Business Overview

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

Business Description:

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

Mission Statement:

Business history:.

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

Future Goals

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

3. Market Analysis

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

Target market:

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

Market size and growth potential:

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

Competitive Analysis:

Market trends:.

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

Regulatory Environment:

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

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

4. Products And Services

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

Milk Varieties:

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

Dairy products:

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

Parts and Accessories:

Quality measures:.

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

Additional Services

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

5. Sales And Marketing Strategies

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

Unique Selling Proposition (USP):

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

Pricing Strategy:

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

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

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

6. Operations Plan

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

Staffing & Training:

Operational process:, equipment & machinery:.

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

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

7. Management Team

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

Founders/CEO:

Key managers:.

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

Organizational structure:

Compensation plan:, advisors/consultants:.

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

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

8. Financial Plan

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

Profit & loss statement:

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

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

Financing Needs:

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

9. Appendix

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

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

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

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

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

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

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

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

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

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

How to get funding for your dairy farm business?

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

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

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

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

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

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

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

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

What key components should a dairy farm business plan include?

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

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

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

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

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

About the Author

Upmetrics Team

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

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Beyond corporate life, joy in a dairy farm

UDUPI: A high-flying corporate career with a plum salary might be a dream come true, but not for this couple. Hailing from Heggunje near Brahmavara in Udupi district, they abandoned all of this for a very different calling – the moo of cows! Today, they are proud owners of a dairy farm, with 40 cows and agricultural land back home.

Vikhyath Kumar Shetty, a software engineer, and his wife Nandanisha quit their jobs in Bengaluru eight years ago. When they began their dairy venture in 2012, they had 10 cows, which increased to 40 within one year.  Vikhyath’s 40 milch cows, belonging to Holstein, Jersey and Sahiwal breeds, provide between 280 and 300 litres of milk a day. He supplies this milk to Manya Cooperative Society in Heggunje, located just 2 km from his house.

Vikhyath completed his BE in Computer Science from RNSIT, Murudeshwar, in 1994, and went on to work for an IT company in Chennai for six years, before moving to Bengaluru to further his career. Nandanisha, an MBA graduate from Mangalore University, also worked at a private company in Bengaluru for a brief period. A joint decision changed their life’s goals forever.

Reminiscing that moment, Vikhyath told TNSE: “Either I had to call my parents to stay with me in Bengaluru and make them adjust to the hustle and bustle of the city, or to ourselves shift to the village and look after them, and find prosperity in dairy farming and agriculture. We both chose the latter. The journey from coding to farming has made me a believer in calling myself a ‘boss of my own work’.” Meanwhile, Nandanisha was also more interested in adopting the rustic occupation of dairy farming, than settling down in a metro.

The 10 acres of land that he had in his village was opportune for Vikhyath to take the plunge straightaway. He visited many dairy farmers in Bengaluru to develop his own model. Low on funds to set up his dairy farm, Vikhyath had to take a loan of Rs 25 lakh from a bank. Once the farm began, he paid attention towards creating its infrastructure. All this dedication has paid off! In dairy farming and agriculture, there is no escape from the mooing, dung and hard work, saysVikhyath.

What does it take to be a successful dairy farmer? One needs to be an animal lover first, he says, adding, “If a worker is absent on any day, I go and feed the cows myself. Matters like insemination, cleanliness and timely medicine factor a lot.” Vikhyath’s father Sudhakar Shetty, who also used to rear cows, also advises him. Grass is grown over five acres of their land, providing a steady supply of feed for the cows, and the slurry that gets generated in the cattle shed is diverted back to the grassland.

Apart from lasting contentment, the dairy farm has also brought favourable economic returns in its wake. To begin with, the milk brings in revenue; then the cow dung manure from the farm also fetches Rs 20,000 per month. Today, their 10-acre farm boasts of arecanut, coconut, cashewnut, red sandalwood, chikoo, banana and mango trees. Vikhyath also has 3 acres of paddy field, yielding about 60 quintals annually, which gives him and his wife the unique happiness of growing what they need on their platter every day. The journey has only begun for this agri-entrepreneurial couple. Soon, they plan to diversify, producing rice rotis.

‘Government must push agri-entrepreneurship’

Nandanisha, who supports Vikhyath in his venture, says that entrepreneurship in the farm sector will really help prevent educated youth from abandoning agriculture and migrating to cities. “The government should support these kind of ventures financially with seed money schemes,” she adds, expressing her satisfaction in what she is doing.

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How to Start a Dairy Farm

Last Updated: March 11, 2024 Approved

This article was co-authored by Karin Lindquist . Karin Lindquist earned a BSc in Agriculture as an Animal Science major from the University of Alberta, Canada. She has over 20 years of experience working with cattle and crops. She's worked for a mixed-practice veterinarian, as a sales representative in a farm supply store, and as a research assistant doing rangeland, soil, and crop research. She currently works as a forage and beef agriculture extension specialist, advising farmers on a variety of issues relating to their cattle and the forages they grow and harvest. There are 9 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 105 testimonials and 92% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 1,340,150 times.

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

Planning Your Dairy Farm

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

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

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

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

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

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

Learning the Basics

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

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

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

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

Community Q&A

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

Tips from our Readers

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

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

You Might Also Like

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

About This Article

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

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