Most Profitable Livestock Farming Business in India 2024

Table of Contents

• Introduction
• Most Profitable Livestock Business in 2024
  • Goat Farming
  • Sheep Farming
  • Dairy Buffalo Farming
  • Pig Farming
  • Dairy Cow Farming
  • Fish Farming
  • Poultry Farming
• Conclusion

Introduction

Livestock are animals/ birds that provide eggs, meat, and milk for human consumption. The Livestock Sector in India is a critical subsector of Indian agriculture. It contributes more than 30% to the overall agricultural GDP of India and is also an important source of rural livelihood.

The Government of India has been promoting the livestock sector by providing financial, technical, and entrepreneurial assistance under various schemes like the National Livestock Mission (NLM). As a result, farmers are undertaking large-scale livestock farming.

The aim of starting any livestock farming business should be profit. If it is not profitable, it's not worth pursuing. Thus, this blog provides a list of the top profitable livestock farming businesses in India in 2024.

Most Profitable Livestock Business in 2024

The demand for livestock products is increasing, and with this, livestock farming has become a profitable business venture for many farmers and entrepreneurs. Let us see the top profitable livestock businesses in terms of benefit to cost ratio in descending order.

Goat Farming

Goat meat and milk are in high demand due to their nutritional benefits. The goat population in India is around 150 million. The goat sector's contribution to the Indian livestock GDP is around 8.5%.

Goat Farming is the most profitable livestock business in India because goats are multi-purpose animals. Besides, it requires relatively less investment and is cheap to start. It is one of the highest profitable farming businesses with a Benefit Cost Ratio of around 2.02:1.

Reasons for Profitability in Goat Farming

• Goats, the poor man cow, are versatile animals. They provide meat, milk, fibre, manure, and heed.
• Goats can thrive in any climate – arid or semi-arid. In other words, starting a goat farm does not require a specific environment.
• The goat's gestation period is only 5 months; hence, they are prolific breeders. As a result, farmers can quickly increase the herd size in a short period.
• Availability of a wide range of top-quality goat breeds such as Jamunapari.

The government provides a 50% subsidy up to a maximum of INR 50 lakhs for setting up a goat breeding unit with a minimum of 25 males and 500 females under the National Livestock Mission.

Sheep Farming

The 20th livestock census shows that 13.83% of India's total livestock are sheep. Sheep are reared for meat, wool, sheepskin, and manure.

Sheep farming is one of the most profitable livestock businesses in India. One can expect to earn a return of 78% on the amount invested in Sheep farming.

Reasons for Profits in Sheep Farming

• The investment required to start a sheep farm is minimal.
• It is easier to raise and rear sheep in a limited space.
• Managing the sheep herd is more accessible as it does not require much labour.
• High-quality sheep breeds in India make sheep farming a lucrative option.
• Even the feed needed for feeding sheep is relatively cheap because they require low-maintenance grass.

The government provides a 50% subsidy up to a maximum limit of INR 50 lakhs for starting a sheep farm comprising 500 females and 25 males.

Dairy Buffalo Farming

This type of livestock farming is related to raising high-quality buffalo breeds for milk and milk products. Like dairy cow farming, it is not new and has existed since ancient times. The Dairy Buffalo Farming has the potential to give a return of 60% on the amount invested.

Reasons for Profitability in Dairy Buffalo Farming

• Buffalo's price is usually high compared to cow's milk.
• Availability of improved Buffalo Breeds such as Murrah and Jaffrabadi buffalo.
• The government subsidises up to 50% of capital expenditure for setting up a buffalo farm under the Rashtriya Gokul Mission.

Pig Farming

Pig Farming is a lucrative livestock business in India. Due to the high average meat content of 65 – 80% in pigs, the demand for pork is high. After broilers, piggeries are the most efficient feed converters. Setting up a pig farm and making it profitable is time-consuming and complex. However, a person can get a return of INR 154 on every INR 100 invested in pig farming.

Reasons for High Profit in Pig Farming

• The feed conversion efficiency in pigs is very high. In other words, they gain more weight from a given feed weight.
• Pig farming requires less investment in infrastructure and equipment.
• Pig by-products such as pig manure are used as fertiliser for fishponds and agriculture farms, resulting in additional income from pig farming.
• Pig farming provides quick returns because the marketable weight for fatteners can be achieved in 6-8 months.

The government provides a 50% subsidy up to a limit of INR 30 lakhs under the National Livestock Mission for setting up a breeder farm with a minimum of 100 sow and 10 boars.

Dairy Cow Farming

Cows and Buffalo are the main sources of milk and dairy products in India. Dairy cow farming is concerned with raising high-quality, improved breeds commercially to produce milk.

This type of dairy farming is not new. It has been in existence since ancient times, and it is still a profitable livestock farming business. The Benefit Cost Ratio of dairy cow farming in India is around 1.50:1.

Reasons for Profitability in Dairy Cow Farming

• The demand for milk and milk products is increasing and never-ending.
• Government subsidies for setting up dairy farms. For instance, the usual cost of setting up a 200-cow dairy farm is around INR 4 crore. However, with the 50% subsidy on capital expenditure, the cost comes down to INR 2 crores.
• Availability of numerous highly productive dairy Cows Breeds like Sahiwal and Red Sindhi.
• It can also be started with the help of family labour, thus saving the cost of external labour.

Fish Farming

Fish is an essential source of animal protein. Fish Farming is growing fish in fish hatcheries for commercial purposes. India's vast coastline and tropical climate make it an ideal location for fish farming.

Fish farming is a highly profitable business. One can easily get a Cost to Benefit Ratio of around 1:1.19 in fish farming.

Reason for High Earning Potential in Fish Farming

• The market demand for fish and fish products is increasing due to urbanisation and rising awareness about the health benefits of fish.
• The fishery sector is growing, with an average annual growth rate of 10.88% between 2014-15 and 2018-19.
• It's easy to start. You can start a fish farm in your backyard or an artificial pond.
• Fish is a highly traded food product globally with high foreign exchange earning value.

The government has been providing financial assistance of up to 40% of the project cost to the General Category and 60% to the SC/ST/Women under the Pradhan Mantri Matsya Sampada Yojana (PMMSY).

Poultry Farming

Poultry birds are the most affordable animal protein available in India. Poultry Farming is one of the cheapest livestock businesses to start. With suitable feed and proper care and management, it gives a quick and easy return on your investment. It consists of two types of products, including eggs and meat. The layers are reared for eggs, which offers a benefit of 1.09 vis-à-vis cost of 1. Whereas, the broilers are reared for meat, which provides a Cost to Benefit ratio of around 1:1.10.

Some of the reasons for profitability in the poultry farming business are:

• The market demand for poultry products like eggs and meat is very high.
• The cost of operating a poultry farm is relatively low, and the return on investment is quick.
• Poultry birds have shorter production cycles, and many broiler chickens can be raised in small areas.
• Broiler birds reach their ideal weight in one and a half months only.

The government provides a 50% subsidy up to a limit of INR 25 lakh for setting up a minimum of 1000 parent layers under the National Livestock Mission.

Conclusion

Livestock is an essential sector of the Indian economy, providing livelihood to millions of rural populations. With the rise in demand for animal products such as meat, milk, eggs, hide, wool, etc, livestock farming has become one of the most lucrative and profitable businesses to start. The continuous prioritisation of government to promote livestock farming has also made livestock farming a lucrative business.