How to Start a Dairy Farm Business in India: A Beginners Guide

Table of Contents

• Introduction
• Reasons to Choose Dairy Business in India
• How do you start a Dairy Farm Business in India
  • Making a Dairy Business Plan
  • Market Research
  • Setting Up the Dairy Farm Infrastructure
  • Choosing the Right Cow Breed
  • Management of Dairy Farm and Feeding Practices
  • Marketing & Selling of Dairy Products

Introduction

Milk production in India is estimated to be 230.58 Million tonnes in the year 2022-23, making it the world’s largest milk production. It shows the positive scope of a dairy farm business in India, making it a profitable business. Starting a dairy farming business requires industry knowledge, careful planning, the right strategies, and market opportunities. Dairy Farming is beneficial for both small-scale and large-scale farmers.

Reasons to Choose Dairy Business in India

Before starting a dairy farm business, you must know why it is an attractive business option. Some reasons to choose dairy farming as a business option are:

• India is among the largest milk consumers in the world, which means there is a high demand for milk and dairy products. The consistent demand for dairy products offers a stable market for dairy farmers.
• The dairy business in India provides a steady monthly income. Income stability helps farmers moderate risks related to seasonal crops.
• A dairy farm business plan requires budget-friendly investment. You can start a dairy farm in India on a small scale with a small investment.
• The dairy business in India has a potential export opportunity for dairy products in the international market. Products like milk powder, butter, ghee, etc., have a huge demand globally. Thus, expanding into the export market can boost the profitability of the dairy farm business.

How do you start a dairy farm business in India?

If you are looking to start a dairy farm business in India, you should follow the steps listed below:

Making a Dairy Business Plan

Before starting a business, you need to ensure that you are pursuing your business objectives. Create an action plan, so lenders or government bodies can easily offer you a business loan or subsidy.

The National Bank for Agriculture and Rural Development (NABARD) has initiated the Dairy Entrepreneurship Development Scheme (DEDS), which benefits farmers by providing subsidies on dairy farm loans.

Dairy farming is a profitable business with an undying demand for milk production in India.

Market Research

Conducting market research is an important aspect as it helps in understanding the demand for milk and dairy products in the targeted market, potential customers, and competition in the market.

Setting up the Dairy Farm Infrastructure

A dairy farm must be spacious, properly ventilated, and have all the facilities for the animals, including water and electricity. You can consider the following things while setting up the infrastructure of your dairy farm:

• The farm must be set up in a spacious area, considering the number of animals (cows and buffaloes).
• A good slope and effective drainage system should be made. A footbath with disinfectants should be made available at the entry point.
• Creating a shed for the animals is necessary as it provides shelter in bad weather conditions and keeps the animals safe.
• Create a waste disposal area at an appropriate distance from the animals, ensuring better living conditions.
• You may also keep some space for the land to encourage crop cultivation if you want to scale up your dairy farm business.

Choosing the Right Cow Breed

You need to keep certain things in mind while choosing the right cow breed. These include:

• You should check the health and immunity of the cow, which leads to high-quality milk production.
• Check the milk production history of your selected cow breed to see if it is fit for your business.
• You need to ensure that the selected cow is in the appropriate age range, as it plays an important role in maximum milk production.

Management of Dairy Farm and Feeding Practices

You need to constantly monitor the feeding practices and management of your dairy farm to make it a successful business. For proper management of feeding, you can refer to the following points:

• During calving, cows produce colostrum milk, which contains antibodies for the immunity of the calves. Cows lactate for around ten months until impregnation. Thus, adequate nutrients must be fed for quality milk production during peak lactation.
• The recently born calves must be kept separately in a dry environment with proper ventilation.
• Proper arrangements should be made for the calves to protect them in bad weather. Proper care should be taken, especially during the first two months.
• Vaccination of the calves must be done in a timely manner.

Marketing & Selling of Dairy Products

Marketing your dairy products is essential to making the dairy farm business successful. Let your target audience know about your product and its quality. Farmers usually tie up with a dairy co-operative or dairy company to sell their dairy products. Business promotion is required to convince your customers and increase your sales in the future.