Starting Dairy Farming Business Plan (PDF) - StartupBiz Global (2022)

Dairy farming involves breeding cows, milking them, and selling the milk. Dairy cattle farming is a very profitable business, and many people are making money all over the world by starting dairy milk farming businesses. However, to build a successful, sustainable milk dairy farming business, you require sufficient knowledge of how to efficiently keep the milk cows, good management skills, and a good dairy farming business plan. This article will outline how to start the dairy farming project, and the dairy farming business plan – PDF, Word and Excel.

Dairy farming is a lucrative business, providing income for millions of people, but there are some essential things you need to do before you venture into the dairy milk production business. You have to decide on the size of your dairy farming project i.e. the size of your dairy herd; location of the milk dairy farming business e.g. a dairy farm , and your target market. These choices will be affected by the amount of capital you have, and the size of your target market.

If you do not have a lot of capital, you can always start small and grow your milk dairy farming project overtime. You also need to carry out market research (Who are you going to sell the milk to? At what price?) and write a dairy farming business plan before you start the dairy farm project.

What you need

Land

Land is an important factor when you are starting a dairy farm business. When selecting land for your dairy farm, some important considerations include: availability of quality and consistent water supply, the size of the land, quality of grass and grazing pasture andthe soil type is it affects pasture quality. Other factors include availability of already made infrastructure like good road network, milk facilities, dependable electricity, pens, sheds, buildings. Constructing buildings for a dairy farm is expensive, so it would be an advantage if some buildings are already there.

Housing And Equipment For Dairy Farming Business

To be successful in the dairy farming business, it’s important that you provide good and adequate housing for the dairy cows. Housing for dairy cows is required for several reasons: protecting the dairy cattle from adverse weather conditions, confining the milk cows when they are not grazing, and to allow easier management and control of the dairy milk herd. The best dairy design depends on the local climatic conditions, budgetary constraints and availability of bedding materials. When designing housing for the dairy milk herd, take into consideration the need to provide adequate space, feed & water facilities, milking facilities, waste management and livestock handling features.

There are many different structures which can be used for a dairy milk farm, and these include free-stall, tunnels, composite barns, dry lots, tie-stall facilities and dairy sheds. Other dairy milk cow structures include milking parlour, sick/isolation pens, calving boxes, crowding pens, sorting corrals, working chutes & gates, and squeeze gates. However the necessity of the structures depends on the size of the dairy farming business.

The dairy farm also requires good fencing, so as to contain the milk cows and manage their grazing. Dairy farm fencing can be by barbed wire, high tensile smooth wire or electric fencing. Equipment necessary for a cattle dairy farming business include cows drinking equipment, feeding equipment, buckets & pails, milking equipment, storage tanks, milk processing equipment, livestock trailer, and manure spreader. Your dairy farming business plan should take into account the cost of purchasing or renting the land, structures and buying the equipment.

Breeding Stock for Dairy Farming Business

To start a dairy milk production business, you require the dairy breeding stock: bulls (male cattle) and milking cows (female cattle). A dairy farm can also be operated without bulls, by using artificial insemination for breeding the milking cows. The cows should breed every year, as milk production only happens after the cows have given birth to calves. The decision of which dairy breed to use is important, and affects the success of your milk production business.

The breeds you choose will affect the milk production potential of your dairy farming business. Some breeds are better than others at producing good milk quality. The quantity of milk produced also varies depending on the breed of the milk cow. Other characteristics which vary among breeds include breeding age, productive lifespan, adaptation to different environmental conditions & climates, calving ease, feed conversion, diseases resistance, and average birth weight. The most popular breeds used in the the dairy farming business include Holsteins, Jersey, Brown Swiss/Braunvieh, Ayrshire, Guernsey, Dairy Shorthorn among others.

Feed And Nutrition

Success of your dairy milk production business is also affected by the feeding programme which you use. The feeding program of the dairy farming business should ensure that adequate nutrition is provided to both the cows and calves at all growth stages and during all seasons. This should be done while keeping an eye on the feed costs, as they greatly affect profitability of the dairy milk farming business. Dairy cattle need a daily supply of all nutrients required for maintenance and production: milk, meat, growth and pregnancy.Failure to provide adequate feeding for the milk cows and calves results in low milk production, poor reproductive performance, poor growth of the calves and poor disease resistance. These factors all lead to reduced revenues for the dairy milk production business, thus lower profits. Feeding programs of dairy farming are usually based on pasture grazing, in combination with supplementary feed. The supplementary feed for dairy cows include concentrates, hay, corn, fodder, salts & minerals, silage, commercial dairy cow feeds and grains.

Starting Dairy Farming Business Plan (PDF) - StartupBiz Global (1)

Dairy cattle grazing in pasture

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Capital for Dairy Farming Business

The amount of capital required for the milk dairy farming business depends on the size of the project. When starting a dairy milk production business, most of the capital goes to acquiring the land, building infrastructure, and buying the dairy cows & bulls. You can get a loan from the bank, or funding from investors, to use as capital to start your dairy farming business. If you plan to raise capital from investors and a loan from the bank, you need a good dairy farming business plan. If you don’t have access to investors and bank loan, you can use your personal savings and start small, and grow your dairy farming business overtime. Dairy cattle farming is very profitable, so if you reinvest the profits you get, you can grow over time. Even if you are not planning to get a loan, you should still get a dairy farming project plan to guide you in starting and operating the business. It is essential for you to have a dairy farming business plan before you venture into the dairy milk production business, so that you know all the costs involved and you make an informed decision.

Market for Dairy Milk

Milk is often regarded as being nature’s most complete food because it provides many of the nutrients which are essential for the growth of the human body. Being an excellent source of protein and having an abundance of vitamins and minerals, particularly calcium, milk can make a positive contribution to the health of a nation.

The market for milk is very huge and is ever increasing, annual milk global demand exceeds 800 million tonnes. Your dairy farming business can sell raw or processed milk. The market for dairy milk includes supplying to milk processors, grocery stores, schools, companies, individual households, organisations etc. It’s important for the dairy farming business plan to include a proper marketing plan to use in your milk dairy farming business.

Pre-Written Dairy Farming Business Plan (PDF, Word AndExcel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the dairy farming business, we encourage you to purchase our well-researched and comprehensive dairy farming business plan. We introduced the business plans after discovering that many were venturing into the dairy cattle production business without enough knowledge and understanding of how to run the dairy milk production business, how to keep the dairy cows, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global dairy business plan will make it easier for you to launch and run your dairy cattle farming business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the milk cows farming business.

Uses of the Dairy Farming Business Plan (PDF, Word And Excel)

The milk cows farm business plan can be used for many purposes including:

  • Raising capital from investors/friends/relatives
  • Applying for a bank loan
  • Start-up guide to launch your milk cows farming business
  • As a dairy farming business proposal
  • Assessing profitability of the dairy milk production business
  • Finding a business partner
  • Assessing the initial start-up costs so that you know how much to save
  • Manual for current business owners to help in business and strategy formulation

Contents of the Dairy Business Plan (PDF, Word And Excel)

The dairy farming business plan include, but not limited to:

  • Marketing Strategy
  • Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
  • Risk Analysis
  • Industry Analysis
  • Market Analysis
  • SWOT & PEST Analysis
  • Operational Requirements (Including technical aspects of how to keep the dairy cattle, feed requirements etc)
  • Operational Strategy
  • Why some people in dairy farming business fail, so that you can avoid their mistakes
  • Ways to raise capital to start your dairy milk farm business

The Pre-written dairy farm business plan package consists of 4 files

  1. Dairy Farming Business Plan – PDF file (Comprehensive Version – 124 Pages)
  2. Dairy Cows Farm Business Plan – Editable Word File (Comprehensive Version – 124 Pages)
  3. Dairy Cattle Farming Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 52 pages)
  4. Dairy Farming Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the number of dairy cattle, selling price of the milk etc, and all the other financial statements will automatically adjust to reflect the change.

Click below to download the Contents Page of the Dairy Farming Business Plan (PDF)


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Get the Dairy Farming Business Plan (PDF, Word And Excel)

Click Buy Nowbelow to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will see the download link for the business plan package on the screen. We will also email you the download link.

The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

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If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on shop@startupbizglobal.com and we will assist you.

We wish you the best in your dairy farming business! Check out our collection of business plans, and more business ideas.

FAQs

What is the most profitable dairy product? ›

Depending on the amount of capital invested, a dairy business can be large or small, but there are different ways to profit from it.
  • Profitable Dairy Business Ideas. ...
  • Chocolate Production. ...
  • Ice Cream Manufacturing Business. ...
  • Dairy Farming. ...
  • SMP, WMP and Dairy Whitener (Milk Powder) ...
  • Milk Processing & Dairy Products.
2 Jun 2022

How much money is required to start a dairy farm in Pakistan? ›

A dairy farm with 100 cows needs a total investment of approximately Rs. 70.55 million out of which, capital cost of the project is Rs. 68.55 million with working capital of Rs. 1.99 million.

How much money is required to start a dairy farm in India? ›

How much money is needed to start a dairy farm? 20 lakh is the investment range to start the small scale dairy farm in rural or urban areas of India. The investment required to start a large scale dairy farming business can exceed up to Rs. 1 crore or even more.

What is profit margin in dairy farming India? ›

416 liters of milk are obtained daily from these 35 cattle while the average price of one liter is Rs 60. In this way, his total income per day is Rs 24,960 while the total expenditure per day comes to Rs 14,900. Hence, he gets a net profit of Rs. 3, 01,800 per month which is a huge profit.

What type of land is best for a dairy farm? ›

The main reason why dairy farms are located on flat ground is related to farming practices. Growing crops for grain, silage and hay for the dairy operation is important to the dairy farmer and growing crops efficiently is best on flatter ground.

What is the profit margin on milk? ›

Earning structure: Average returns on MRP of Amul products will be 2.5 per cent on a milk pouch, 10 per cent on milk products and 20 per cent commission on ice cream.

How much land do dairy farms need? ›

IMPORTANT NOTE: A dairy farm of 10-cows requires an area of 25 kanals of land for cultivation of fodder crops.

How do I start a small dairy farm? ›

8 Things You Need to Know Before Starting Your Own Dairy Farm
  1. Develop a Business Plan and SWOT Analysis. ...
  2. Consult the Experts. ...
  3. Create a Cropping and Feeding Program. ...
  4. Create a Waste Management Plan. ...
  5. Build Your Equity Over Time. ...
  6. Dairy Farming is a Biological System. ...
  7. One Size Does Not Fit All. ...
  8. You are a Manager First.
18 Sept 2014

How much loan can I get on a dairy farm? ›

The loan amount that you can avail can be 75% to 85% of the total investment of your dairy farm.

How much does it cost for 1 cow? ›

Generally, a cow costs between $2,200 and $5,300 per cow. The actual cost depends on its weight, gender, and breed. Yearlings sell for between $850 and $1,550. Cows will also differ in price based on whether or not they are dairy cows or beef cows.

Which cow is costly in India? ›

Traders say a Gir cow costs as much as Rs45,000 to Rs50,000, this is at par with the price of Jersey or Holstein, which has a three time higher milk output.

How much space do you need for 10 cows? ›

An area of 100 square feet per head for a stock of 10 calves and an increase of 50 square feet for every additional calf will make a good paddock.

Which cow gives more milk per day? ›

A Holstein Friesian cow Jogan in Karnal has yielded 76.61kg milk in 24 hours, which is the highest milk production by a cross-bred cow, said scientists at the National Dairy Research Institute (NDRI) here.

Can a small dairy be profitable? ›

Some small operations may be exceptionally well-managed, while others may have below-average input prices or above-average product prices. As a result, even though small farms show losses on average, some can be quite profitable.

Which cow gives more milk? ›

Holstein Friesian has the highest milk production of all breeds worldwide. The Holstein Friesian is the most widespread cattle breed in the world; it is present in more than 150 countries. The lactation period is 305 days.

How many dairy cows can one person manage? ›

If you figures 2200 hours in a year, at 8 hours per cow one person could handle 275 cows," Lattz says.

How much space do you need for 1 dairy cow? ›

Generally, it's recommended you have 2-5 acres per cow.

How much land do you need for 1 cow? ›

You may have heard a rule-of-thumb is that it takes 1.5 to 2 acres to feed a cow calf pair for 12 months. That means we should be able to have 10 to 13 cows. Let's see how this rule-of-thumb holds up. It looks like our rule-of-thumb held up pretty good, 11 cows on 20 acres, is 1.8 acres per cow.

How is profit calculated in dairy farming? ›

Deducting the expense of the cattle feed, which is approximately Rs. 130/day for a cow, the approximate profit earned per cattle for a day is Rs. 770. These are rough estimates that are being calculated taking into account just two factors- the selling price of milk, and expenditure on cattle feed.

Do dairy farms make money? ›

Dairy farmers can make anywhere from $15,000 to $120,000+ a year, with an average of about $43,000 yearly. To understand how much dairy farmers make in a year, it's important to compare the costs of running the dairy farm with the profit of selling products. This allows for a widespread of income across dairy farmers.

Is running a dairy farm profitable? ›

Dairy farming is profitable for large farms with at least several hundred cows up. Small farms are usually unprofitable.

Is dairy business profitable? ›

Dairy farming, despite being less profitable, is practiced to ensure nutrition for the family. The Operation Flood brought farmers together to market their milk at reasonable prices and also transformed India from being a minuscule milk producer to the world's largest one.

Can a small dairy be profitable? ›

Some small operations may be exceptionally well-managed, while others may have below-average input prices or above-average product prices. As a result, even though small farms show losses on average, some can be quite profitable.

What is the profit in dairy products? ›

Deducting the expense of the cattle feed, which is approximately Rs. 130/day for a cow, the approximate profit earned per cattle for a day is Rs. 770. These are rough estimates that are being calculated taking into account just two factors- the selling price of milk, and expenditure on cattle feed.

Is owning a dairy farm profitable? ›

On average farms with less than 250 cows will make just $125 to $170 per cow in 2020, while those with more than 1000 or 5000 cows will earn about three to five times that level. The least profitable region is expected to be the Southwest, and farms below 250 cows are expected to lose money in 2022.

How much land is required for dairy farm? ›

On an average 4 to 5 dairy animals along with their followers can be maintained on an acre of well fertile agricultural land with assured irrigation facilities. Now-a-days with the availability of total mixed rations (TMR) in the market, the requirement of land for fodder cultivation can be reduced.

How do I start a small dairy business? ›

Q. How do I start a dairy business?
  1. Choose a Good Location.
  2. Choose the type of cow or buffalo.
  3. Register your dairy business with respective authorities.
  4. Get all your licences and permits.
  5. If you're farming with cattle, rent or buy the necessary types of equipment.
  6. Create a market strategy for your target customers.
23 Dec 2020

How can I start my own dairy farm business? ›

Before starting a dairy farm, makes sure to follow these: Dairy Farming Business Plan #1- However as a beginner, you should definitely get some professional training from Agriculture Universities or Training centers of the Animal Husbandry Department or Krishi Vigyan Kendras or any private training dairy consultancies.

Are dairy farmers losing money? ›

Crisis in Farm Country

Many farmers can no longer afford to stay in business and dairy farms are closing in record numbers. In 2020, more than 2,500 US dairies (seven percent of all US dairy farms) shuttered their doors.

What is the future of dairy farming? ›

Dairy consumption will increase because it provides essential nutrients more efficiently than many other agricultural systems. Dairy farming will become modernized in developing countries and milk production per cow will increase, doubling in countries with advanced dairying systems.

Which cow gives more milk per day? ›

A Holstein Friesian cow Jogan in Karnal has yielded 76.61kg milk in 24 hours, which is the highest milk production by a cross-bred cow, said scientists at the National Dairy Research Institute (NDRI) here.

How much money does 1 dairy cow make a year? ›

Some of this advantage can be attributed to the higher amount of milk sold per cow at higher than the five-year average price, but a bigger share was due to the high government payments these farms received. Revenue per cow averaged $5,609/cow/year compared to the multiple year average of $4,911.

How can I increase my milk sales? ›

  1. Split your herd. ...
  2. Organize a marketing group. ...
  3. Set up a milk-collection.
  4. Start a small processing plant. ...
  5. Improve feeding in the dry season. ...
  6. Improve animal health care. ...
  7. Improve hygiene. ...
  8. Deliver it quickly.

Is dairy agriculture income? ›

A. dairy farming is not an agricultural income.

How much do dairy owners make? ›

How much does a Dairy Farm Owner make in California? As of Sep 19, 2022, the average annual pay for a Dairy Farm Owner in California is $45,277 a year. Just in case you need a simple salary calculator, that works out to be approximately $21.77 an hour. This is the equivalent of $870/week or $3,773/month.

How many cows do you need for a dairy farm? ›

The largest U.S. dairy farms have over 15,000 cows, though farms with 1,000–5,000 cows are more common. Large dairy farms account for most inventory and production in Western States, and a growing share of produc- tion elsewhere.

Why is there no money in farming? ›

Rising input costs, shrinking production values, commodity specialization, and challenges to land access all appear to be connected to declining farm operator livelihoods, the new study in Frontiers of Sustainable Food Systems concludes.

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