The following components should be included in a dairy farming business plan:
A brief description of the business, its purpose, key issues, and basic business details (for existing companies). Basic data information in the financial summary should include information about consolidated gross revenue and net worth, net farm income, cash flow, current ratios, working capital, etc.
Statement of Mission:
For the customers of this business, the mission is to produce milk or dairy products of the highest quality at an affordable price.
History and location of the farm:
There should be detailed information in the business plan regarding the proposed farm location, including the area, city, state, and acreage owned or rented.
Machinery and equipment for cattle and farming:
Number and type of machinery and equipment purchased for the dairy farming business, along with names and invoices.
Ideas and strategies for developing a business:
In a business plan, information should be provided regarding various marketing strategies, business proposals, new ventures to be engaged in, brand campaigns and so on.
Summarizing the implementation plan:
There should be a business plan summary that depicts a timeline for implementing new management practices and improvements.
In India, the dairy farming business requires licenses and permissions to begin, a five-year projection and realistic descriptions of each year.
Dairy Farming Tips for Beginners
In addition to learning about several steps involved in starting a dairy farm, let’s learn about eight important tasks before getting started. Here are the eight tasks you need to complete before starting a dairy farm.
- Obtaining expert/professional advice and consulting with market leaders
- Conducting in-depth research on businesses
- Designing an animal-friendly infrastructure
- Program development for feeding and waste management
- The process of obtaining a license from the appropriate authority
- Financing your business or getting a loan
- Your business name needs to be finalized
- Making sure your business is registered as a company or a micro, small, and medium enterprise
At the beginning of a dairy farming business (if small scale), entrepreneurs should begin with fewer cows or buffaloes, increasing the number as the business grows.
Business owners must register their firms as sole proprietorships, partnerships, partnerships, private limited companies, limited liability companies, NGOs, etc., in order to obtain a company registration certificate.
In order to start a dairy farming business, business owners must own and manage the following facilities:
- Room for storing manure and feed
- Pastures irrigated with irrigation systems
- Keeping milk in the store
- A shelter from the elements such as a shed or barn
- Pasteurization and storage of milk in a sterile environment
- Machines and equipment related to this field
Furthermore, business owners must obtain licenses, permits, and permissions from the appropriate authorities. When crossing animals between states, such as to treat illness or vaccinate animals, a special license is required.
Subsidy provided by NABARD
Subsidize up to 7 lakhs of loans in order to open a dairy farm and get 33% subsidy
With the Dairy Entrepreneurship Development Scheme (DEDS), the National Bank for Agriculture and Rural Development (NABARD) introduced a subsidy program under which farmers can get subsidies on dairy farming loans through approved and eligible banks. In the case of dairy farming loans up to Rs. 7 lakh, farmers can avail of a subsidy of 33.3% of the total project cost from approved Rural Rural Banks (RRBs) or commercial and cooperative banks. The nearest bank or NBFC can provide applicants with all the necessary information about subsidies and loans.
An outline of the requirements for a dairy farming business plan
Before and after starting your own dairy farm, the following components must be used or installed:
- Shed: Before bringing in cattle, a covered area must be built on the farmland
- Land: Farm owners must maintain cultivated or fodder crops on land that is sufficient to feed their cattle. The amount of land needed depends on how many cattle they plan to keep.
- Water and Fodder: There is no doubt that these two things are crucial for cattle, as water helps make green fodder grow, while fodder helps feed the cattle properly.
- Vaccination and breed selection: should be done to maximize milk production. Furthermore, a strict vaccination schedule is necessary to protect the health of cows and prevent diseases.
Because of the high demand for this business, marketing costs are much lower than animal husbandry investment costs. The investment range for starting a small-scale dairy farm in rural and urban areas of India is between Rs. 10 lakh and Rs. 20 lakh, based on a recent research and investment market analysis.
It can take up to a crore of rupees to start a dairy farm on a large scale. Therefore, business owners here can check and compare all the available business loans offered by banks and non-banking financial institutions (NBFCs), based on their business needs.