Monday, January 30, 2023

A Short Guide to Creating a Dairy Farming Business Plan

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India is the world’s largest milk producer, With a 22% worldwide production share. One item that the majority of Indians regularly consume is milk. Both as a favorite beverage and in its many other forms like pudding etc. The Indian dairy business is currently estimated to be worth over Rs 11.35 lakh crores, notwithstanding the increasing demand. Dairy farming is a lucrative economic choice for farmers in a place like India. The likelihood of losing money is low because the firm is not seasonal. One of those enterprises that don’t even need highly skilled workers and can be founded anyplace.

Dairy farming can be profitable, but it also demands a lot of work. This article will assist you in creating your dairy farm business plan if you want to start your own dairy farm but need help setting it up.

Lay out a physical plan:

Before starting a dairy farm business, it’s crucial to consider the market’s needs based on the target market, household income, geography, local culture, etc. You can choose the kind of animals you wish to maintain. The number of top buffalo breeds in India you require, or the size of your business based on these considerations.

Select a location:

You must consider elements like the land’s size, soil type, availability of a reliable water supply, and the quality of the grass for grazing animals. When choosing a location for your dairy farm business. You might either put up the dairy farm on land you currently own or rent or lease a spot for it. Most people choose to open a dairy business close to cities. Where there is a guaranteed market and convenient transportation options or inside villages. Where labor and input prices are minimal, and there is an abundance of fodder land.

Make an Investment Plan:

You can estimate the investment and make arrangements once you have chosen the size of your company. You may be able to benefit from a number of loans and subsidy programmes. Because the Indian government is encouraging the dairy farming industry. 25% of the cost of starting a dairy business is cover by a capital subsidy provided by the National Bank for Agriculture and Rural Development (NABARD). Under the programme, dairy farmers from SC/ST communities are eligible to receive a capital subsidy of 33%. However, individuals who intend to keep a maximum of ten cows on their property are eligible for this incentive.

You can get assistance from any neighborhood bank in your location with a thorough comprehension of the financing procedure. For those who want to start or expand their dairy business. A few credit programmes are available in addition to the NABARD subsidy.

Obtain a License:

Farmers should register their small business businesses with the Food Safety. And Standards Authority of India and create the business plan and secure the necessary funding (FSSAI). Consumers prefer FSSAI-certified products over similarly priced non-certified products in the market.

Small-scale dairy businesses can apply for the essential FSSAI registration if their annual sales are less than 12 lakhs. A state license must be update from registration as the business expands and crosses the 12 lakh mark. 

Dairy farm licenses, trade licenses, shed licenses, company registration certificates. And registration with ROC or registrar of enterprises are a few more essential licenses. You must unquestionably secure your dairy farming operation’s relevant registrations and permissions.

Animal Purchase: Top buffalo breeds in India, like Murrah, will provide better milk for your company. It’s crucial to get a breed that increases milk production, fits the local climate, and aids in rapid business growth. Mehsana or Murrah are typically favored for buffaloes. Remember to consider the animal if you already have it on your farm. 

Building Farm Infrastructure:

To run your dairy farm smoothly, you must build the appropriate kind of infrastructure.

Sheds—An space on the farm that is adequately cover and where livestock can be house is essential. If this region is elevate, it eliminates any water stagnation, guaranteeing the cattle a hygienic environment. You may calculate the overall shed area at your farm based on the number of animals. You have because one buffalo typically needs an 8 × 12 foot shed.


On a dairy farm, clean, plentiful water is crucial for growing green fodder as well as for the animals.

Green Fodder:

Green fodder is an affordable source of nutrition for agricultural animals, promoting their overall health and increasing their reproduction ability. Food, such as green hay for cattle, can also assist in lowering the price of milk production.

Employ workers:

The most critical component of your business is labor. You must hire individuals with some experience managing agricultural tasks and caring for animals. Training the labor force can establish a method that everyone at the farm follows.


Finding the appropriate marketing methods to get customers to the location is also crucial. By collaborating with partners, you must develop a means to make doorstep delivery feasible. Connecting with dairy farmers here will help you learn more about beginning a dairy business. If you are interest in starting a dairy farm, the time is now. MeraPashu360 is the Pashu bazar online. Where you will find high-quality Murrah buffalo, cattle feed, and other essential products to keep your dairy business running smoothly. 

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