Start Dairy Business In India?
Is Dairy Business Profitable?
Starting a dairy farm is ordinarily referred to as 'an all-season opportunity' as there is a steady demand for milk and milk products in India or anyplace in the globe. It demands 14 to 18 hours per day towards the business. Milk production in India is always on a high with over 3% – 4% increase each year.
For all these reasons, the dairy farming business is emerging as a thriving market for business people. The operation of a dairy farm is an amalgamation of extensive efforts, a significant amount of time, and useful resources. Along with these come a multitude of exercises such as cleaning the farm, management of sheds, feeding the cattle, or even the washing and milking of animals. Let's understand how you can get started with one.
How safe is the dairy business?
Dairy farming is a safe business for the following reasons:
- It is eco-friendly and does not cause environmental pollution as compared to other industries.
- The requirement for skilled labor is relatively less.
- The dairy product market is active around the year.
- The minimum investment on inventory. (No need to stock raw materials in huge quantities.)
- The entire establishment can be shifted to a new location (if the need arises e.g. Fire, Floods, etc.)
- One can insure animals.
- Less energy requirement. Biogas plants fed with cow dung can supply maximum energy to meet farms day to day requirements. The decomposed slurry of such plants can also be effectively used as organic manure.
Dairy Business Plan
So let's have a look at the components of the dairy farming business which are to be utilised before and after starting the business:
- Land: those who own the farm are required to keep cultivated fields or land for producing fodder yields for the cattle. Its size depends on the total number of cattle which are kept. Normally, 1 acre of land is adequate to feed 7 to 10 cows.
- The required breed of cattle and their vaccination: For more milk, the cattle breeds are required to be selected well. For disease control of cattle and to protect their health, a proper vaccination schedule needs to be followed.
- Shed: It is a covered area in the farmland to be built before taking in cattle; this is where the cattle are to be kept.
- Cattle fodder and water: These are to be kept in abundance, as water is required for the growth of green fodder and cattle nourishment.
Limitations and Constraints:
- Breeding of animals and getting expected milk yield is a biological phenomenon, which depends upon various factors.
- Dairy farming besides good planning requires a hardworking, reliable, and alert manager. In India, usually, persons from the family take the responsibility.
- Inadequate management of feeding, herd health, and lack of quality control in various stages of production can cause major loss affecting the profitability of the entire venture.
Starting the Farm – How to begin with:
- One needs to decide first on the aims and objectives of the farm. Every year there should be a progressive aim for breeding (including the number of animals to be maintained) and production.
- You can visit dairy farms that run on a commercial basis and have a discussion with experienced farm owners. You need not have to rely much on others’ experience, analyze every event logically, and if needed consult with local Veterinarians for more information.
- If you plan to manage the farm on your own, look for opportunities to work for an existing farm for a minimum period of six months.
- Develop interest and study feed and fodder’s market in your region, its difficulties in relation to seasons.
- Manage a good team of laborers. You need to choose hardworking reliable persons preferably with some experience. You can also train them for specific jobs.
- Visit the cattle market occasionally. Observe animals on sale and talk with persons engaged with purchasing animals.
- Read magazines and websites on Dairy Industry and keep yourself informed.
Getting some initial professional training…
Opportunities for training are available with most of them:
- Agricultural/Veterinary Universities of various states
- Krishi Vigyan Kendras
- State Department of Animal Husbandry
- State Institute of Rural Development
How Can I Get A Dairy Loan From Nabard?
Up to 33% Subsidy on Loans which can be Rs. 7 Lakh for Opening Dairy Farm. The National Bank for Agriculture and Rural Development (NABARD) initiated a subsidy scheme under Dairy Entrepreneurship Development Scheme (DEDS) provides farmers with benefits in getting subsidies on dairy farming loans through approved banks.
Farmers can get a 33.33% subsidy of the entire project cost on dairy farming loans amounting up to Rs. 7 lakh by visiting the approved Regional Rural Banks (RRBs). Or the commercial and co-operative banks. The applicants can also gather all necessary information related to subsidy and loan facilities from the nearest bank's representative.
Key in Magic
It is not child’s play to maintain a cattle farm. Yet with much zeal and technology at hand, it can yield profits. We should be prepared for a few challenges like cattle breeding, and the availability of milk which is dependent on nature; sometimes these factors can be beyond our control. Alert, hardworking, and responsible managers can do magic. Quality control is also necessary at every step of production.