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Dairy Farming Business Plan in India – How to Start a Dairy Farm Business

How to Start a Dairy Farm Business

Dairy Farming Business Plan in India

Dairy farming means milk production can be a very lucrative business global. The Dairy Farm Business means the process of producing milk. And you all know that the process of producing milk can be done by cow, buffalo or goat. Since Dairy Farming is a traditional business and there is a huge demand for milk and milk-related products everywhere. Therefore, the entrepreneur does not need much marketing of his products. Entrepreneurs can easily sell their products to any corner of the world.

This business called Dairy Farming is eco-friendly so it does not pollute our environment in any way. Since this type of business does not require highly skilled workers. Therefore, the entrepreneur can also involve his family members in this business in the initial phase. Also, such educated persons who are unemployed can start this business. If the entrepreneur plans and manages it well then he can earn a good profit from it.

Market Scope for Dairy Farm Business

India is the richest country in the world in terms of livestock population. About 57.3% of the buffaloes of the whole world are reared in this country. According to the year 2011-12 figures, the business of more than three lakh five thousand crores was only of milk. About 12 crores 7 lakh 90 thousand tonnes of milk is produced annually in India. According to statistics, people who work in the dairy industry in India have seen their income increase by 24 % since 2017, up from 19 % in 2014, for a total increase of 5 % in three years.

Therefore, it is estimated that there is a high demand for the Dairy Farm Business in India. But, Starting dairy farming in India is a complicated process. Therefore, before doing this business, you will have to make proper arrangements by analyzing the breed of animals, arrangements for the living of animals, arrangements for food for animals, care and management and more.

Investment in Dairy Farm Business

It is difficult to provide an exact estimate of the total cost of starting a dairy farm. Because it is dependent on various factors. Some people want to start a dairy farm by purchasing land. Then their expenditure exceeds ten lakhs. Some people own their own property, Then A good dairy farm can then be started for 5 to 6 lakhs. And, regardless of how much money you have, dairy should always be started on a small scale if you do not have experience, and the cost of dairy also depends on what facilities you want to provide there. A small dairy farm with all facilities will cost between seven and eight lakhs, while a small dairy farm with only basic facilities will cost between five and six lakhs.

License for Dairy Farm Business

In India,  If you want to sell milk by opening your company, then you have to get your company registered for this. To get the company registered, you have to think up a name for your company. At the same time, you can get the name of your company registered by going to the office of the local authority, apart from this you will also need to get the trade license,  FSSAI license and VAT registration done. There will also be a small cost to you in the process of these licenses and registrations.

Choosing a location for Farming

Animals need a good habitat to keep them healthy, healthy and productive. If the entrepreneur wants his animals to produce good milk, then he needs to provide a proper place for the animals inside the thatch. It is generally seen that 40 square feet per animal are required inside the shed and 80 square feet in the open.

On a small scale, if the entrepreneur starts a dairyfarming business with about twenty animals, then he may need at least 3000 square feet of space. And a medium-scale entrepreneur starting this with around 100 animals may require 15000 to 17000 square feet of space. However, the entrepreneur has to ensure that proper ventilation, fresh air circulation, water and proper space for animals are available in the animal housing.

Breed Selection for Dairy Farm

For the entrepreneur starting a Dairy Farming Business in India, there are numerous indigenous and foreign breeds to choose from. Entrepreneurs can choose from among these indigenous and exotic breeds for their businesses. If the entrepreneur so desires, he can establish a dairy farm by arranging both cow and buffalo lines under one roof. Murrah, Surti, Mehsana, Jafrabadi, Badhavari, and other buffalo breeds are good producers and milch breeds.

Cow breeds that produce well include Gir, Sahiwal, Red Sindhi, Tharparkar, and others. Aside from that, if the entrepreneur wants to incorporate foreign breeds into his business, he can choose breeds such as Holstein Friesian, Brown Swiss, Jersey, and so on. While selecting breeds for his dairy farming business, the entrepreneur must also consider the market.

Feedings for Animals

Keep in mind that nutritious and high-quality food increases the milking capacity of animals. Therefore, you should always try that your animals get high-quality and nutritious food in proper quantity. Green food means that while green grass encourages the animals to give more milk, it also reduces the expenditure on the animals’ food. So try to give more and more green food to your animals. If you have any vacant land lying around, you can easily produce green food for your animals. 

Along with nutritious food, it is also very important to give clean water to the animals. Apart from this, the entrepreneur has to take good care of the animals and take care of their health. To keep the animals free from diseases, the entrepreneur can get them vaccinated from time to time. And the stock of essential medicines and materials should also be kept with you at all times.

Hire employees for Dairy Farming

After opening a dairy farm, your most important task will be to take care of the cows, and for this, you will have to give your full time. So, You will need some people for milking the buffaloes, letting them eat on time and clean them. So you have to hire some people for this job. The next task after select the people in the process of extracting milk from the buffaloes. Milk from buffaloes can be obtained twice a day. At the same time, instruct those involved in this work to remove milk in a clean manner. After the milk has been extracted, store it all in one location. After that, you’ll be able to sell the milk.

Marketing for Dairy Farming

In India, marketing your products is not a problem. Milk is the primary ingredient in many products, so dairy products are in high demand throughout India. Aside from traditional marketing methods, you can also market your products through social media or by creating a website. Social media marketing will assist you in making your business more visible.

Determine the type of packaging that your customer prefers. Some customers prefer plastic bottles, while others prefer pouches and small packs. Still, others may bring their own containers or simply require delivery in a can. Match your products and delivery to local demand. These strategies would make your company a true success.


Before doing this business, try to talk to the people associated with this business about business. And take secret tips of Dairy Farming business from them, if possible, do visit some commercial farms. When you are visiting a commercial farm. Do analyze that farm well. Talk to your nearest veterinarian and assess the business prospects in your area. Be aware in advance of the availability of animal feed and the cost involved. And keep a plan for the availability of animal food even in adverse weather.

For your dairy farming business, the land on which you are going to produce green food. Get that soil checked. If possible, take training in Dairy Farming from Krishi Vigyan Kendra. Because during this training you will get the nuances of this business. You will be given on topics such as reducing expenses, increasing productivity, and arranging nutritious food by spending less.

Dairy Farming Business Plan in India

How to Start a Dairy Farm Business – The Complete Guide

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