DAIRY FARM BUSINESS PLAN

1. Business Overview

A dairy farm business focuses on producing and selling fresh milk and dairy products such as curd, ghee, butter, and paneer. Dairy farming is a profitable agricultural business because milk is consumed daily and demand remains high throughout the year. The goal of this dairy farm is to produce high-quality milk using healthy cows, proper nutrition, and hygienic milking practices.

2. Business Objectives

• Produce fresh and hygienic milk
  • Maintain healthy cattle with proper nutrition
  • Supply milk to local markets and households
  • Generate steady monthly income
  • Expand dairy herd and milk production in the future

3. Dairy Farm Setup Requirements

Land Requirement

For a small dairy farm:

• 10 cows → ½ to 1 acre land
• 20 cows → 1 to 2 acres land

Land is required for:

• Cattle shed
• Fodder storage
• Feed storage
• Waste management
• Green fodder cultivation

Cattle Shed Construction

Proper cattle housing is important for cow health and milk production.

Features:

• Good ventilation
• Non-slippery flooring
• Proper drainage system
• Clean water supply
• Separate milking area

Approximate cost:
₹3,00,000 – ₹6,00,000 depending on size.

4. Cattle Selection

Choose high milk producing breeds.

Popular Dairy Breeds

• Jersey
• Holstein Friesian (HF)
• Gir
• Sahiwal

Average milk production:

• Jersey → 12–18 liters/day
• HF → 15–25 liters/day

Cost per cow:

₹60,000 – ₹1,00,000

5. Dairy Farm Equipment

Essential equipment:

• Milking machine
• Milk storage cans
• Water tanks
• Chaff cutter (fodder cutting machine)
• Feed storage containers

Approximate cost:

₹1,00,000 – ₹2,00,000

6. Cattle Feed Management

Proper feeding increases milk production.

Daily feed includes:

• Green fodder
• Dry fodder (hay)
• Concentrate feed
• Mineral mixture
• Clean drinking water

Average feed cost per cow per day:

₹150 – ₹250

7. Dairy Farm Investment (Example: 10 Cows)

Total Investment:

₹14,00,000 approx.

8. Milk Production & Income

Example:

10 cows × 12 liters/day = 120 liters milk/day

Milk selling price (average):

₹45 per liter

Daily income:

120 × 45 = ₹5,400

Monthly income:

₹1,62,000

9. Monthly Expenses

Total monthly expenses:

₹1,00,000

10. Monthly Profit

Monthly income: ₹1,62,000
Monthly expenses: ₹1,00,000

Estimated profit:

₹60,000 per month

(Profit increases if you sell dairy products.)

11. Additional Income Sources

A dairy farm can also earn from:

• Selling cow dung (organic manure)
• Biogas production
• Selling calves
• Dairy products like ghee and paneer

12. Government Subsidy

In India, dairy farmers can get support from:

• NABARD Dairy Farming Scheme
• Dairy Entrepreneurship Development Scheme (DEDS)
• State government dairy subsidies

Subsidy: 25% – 35% of project cost

13. Marketing Strategy

Sell milk through:

• Local households
• Milk collection centers
• Hotels and tea shops
• Supermarkets
• Direct farm sales

Also promote through:

• Google Business listing
• Social media
• Local advertisements

14. Future Expansion Plan

• Increase cattle to 20–50 cows
• Start dairy product manufacturing
• Open milk retail outlet
• Supply to dairy companies