Starting Profitable Dairy Farm Business in 2023 | Cow Farming Business Plan 2023

Starting a Profitable Dairy Farm Business can be a rewarding and profitable venture for those who are passionate about working with animals and producing high-quality dairy products.

Before Starting Dairy Farming, you must do thoroughly market research and plan before diving into Dairying . Here are some steps to consider when starting a dairy farming business.

How to start , in my opinion is not a big deal. The actual thing is to make the livestock business sustainable after the start. So In this Post, We will Speak about all Important factors that will affect Cow Farming Business Plan as follows:-

• What is Dairy Farming?
• Who Should Start the Dairy Farm Business?
• Which types of dairy animals should you buy?
• What are the Basic Requirement of Cow Farming?
• How much Initial Capital is required For Starting a Dairy Farming Business?
• How many Animals Should you in the Start?
• What are advantages and disadvantages of Dairy Farming?
• Selection of Suitable Farm Location of Livestock
• Complete Process of dairy farming
• Marketing of Dairy Products

What is Dairy Farming?

Dairy Farming is one of the Profitable Business in which an Entrepreneur feed and raise different Mother animal such as Cow, Goat, and other livestock animals for Purpose of milk Production and Meat.

With the Increasing demand in the Milk and dairy Products, dairy Farm industry has flourished a lot in the Last few decades. Nowadays, the demand in the Dairy products include cheese, butter, yogurt, ice cream, and milk is increasing day after day.

Who Should Start the Dairy Farm Business?

• Person Should proper knowledge or Experience of dairy Farming. Otherwise , You will Lost all your Capital.
• A Person who have Proper Education about the Dairy Animal, their Feed, & animals diseases etc.
• Person should select the Milk Producing animals free from all diseases at the time of buy.
• Before Purchasing any Dairy Animals, You must do Complete medical Check up of animals and demand its previous medical Report from sellers.
• Before Starting your Own Dairy Farm, You must Spend time or did a Job at other dairy Farm for at least 6 Months- 1 year.
• You must do Conversation with owner of existing Dairy Farm about this Selection of Animals, Market trend and Dairy rules & regulation.
• You must be informed about the Dairy Farming rule & regulation implemented by the government.
• You Should fulfil all legal Formality and get Dairy Farm Approval from local Authority.

What are the Basic Requirement of Cow Farming?

• Land Requirements:–
  • For the Dairy Farming, You need a bigger Piece of land approximately 3-5 Acres. So, You should setup your dairy Farm outside town. So , you can acquire more land in less Price.
• Selecting the right breed of cows
  • The whole Profitability of Dairy Farming is Upon buying right Animals that survive in every Climate and Produce maximum Milk
  • For this Purpose, you should consult three to four existing dairy Farmer and seek their help in buying Cows, Goat and buffalo etc.
• Construction of Farm House:-
  • Farm should be Air Conditioned and well-lighted.
  • Farm should be Constructed in such a way that animals should stay safe in any natural Calamity.
  • Dairy Farm should have Proper shower Area for animals.
  • Along Dairy Farm, you must have 1-2 Acres Land where different feed for animals can be Produced.
• Labour
  • You should hired such Person who have already work in dairy Farm and have Proper knowledge about the animals.
  • Labor should be Present 24 hours in the dairy farm for Care taking of animals.
  • As Per Our Survey, You need One Per For every 10 Animals and at least One Cleaner For the cleaning Purpose.
  • Your team should know when to Provide Feed and water to Animals.

How much Initial Capital is required For Starting a Dairy Farming Business?

We have Conducted a Survey about the Initial Capital required to Start your own Dairy Farm from different Cow Farming Owners. After Asking Different Question , we have find out following results

Items	Approximate Cost
Leasing a large farm land	$200,000
Legal expenses for obtaining licenses and permits	$15,300
Fee For Registering your Dairy Farm with local Authority	$750
Construction of a standard cattle ranch/dairy farm facility with the right fencing	$300,000
Purchasing Dairy Animals For First time	$300-$700 Per Animal
Operational Cost For First 3- Months	$60,000
Purchasing Required working tools and equipment/machines (milking machine and milk collector, milk storage tank and container, water trough, rake, shovel, spade, wheel barrow, cart etc)	$150,000
Cost for store equipment (cash register, security, ventilation, signage)	$13,750
Marketing/ Promotional Cost	$3,580
Insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium	$30,400
Miscellaneous	$5,000

Besides, it is easier to start and run a dairy farm from scratch to profitability without leveraging on a known brand name. People will patronize your milk or cattle or meat based on accessibility and pricing as against relying on a brand name.

How many Animals Should you need in the Start?

In the Starting Phase, You Should Start your Business with as less Animals as you can. Doing Practically Business is much more toxic and difficult than just making Decision.

Many Expert said that You should Start Dairy Farming with at least 10-12 Cows, oxen, or buffalos. But in our Opinion, you Should only Purchase 3-4 Animals first time. Or even better, if you do a Job as Dairy Farmer at some existing Farm to gain Practical knowledge.

Spend time with animals, take care of them, face all problems during that time. After that if you think, you can do this business then purchase more animals.

Selection of Suitable Farm Location of Livestock

• Your Livestock Farm Should be situated away from residential area otherwise you will face legal issue Everyday.(if Situated in town area).
• Your Dairy Farm should have Proper access to Road so the dairy Products such Milk, Cheese, yogurt etc. should be easily transported to residential area and Market easily.
• Dairy Farm should be built in the area in which Veterinary Doctors and hospital is easily available.
• The soil should be fertilized in the area so Food for animals is easily Produced in less Price.
• Dairy Labor is Easily available at affordable rate in that location.
• Government is Providing Subsidy to Dairy Farmer on Electricity and Other item in that area.

Pros and Cons of Dairy Farm Business

Every Business has a Bright Face as well as Dark side. In the same ways, there are some benefits and drawback of Cow farming is given below

Pros of Cow Farming	Cons of Cow Farming
The demand for milk and dairy products is increasing day after day that indicate huge return.	The Initial Cost of Acquiring Land, Buying Animals and other dairy equipment is very high.
Dairy farming can be a highly profitable business if managed efficiently.	Dairy cows are prone to a variety of diseases, including mastitis, lameness, and respiratory infections
Government also give subsidies, loans, and other financial assistance to boost Dairy Industry.	The price of milk and dairy products can fluctuate based on supply and demand, weather conditions, and other factors.
It allows Farmer to work and live on their farm, providing a sense of independence and control over their lives.	Dairy farming is a labor-intensive business, as cows need to be milked and fed twice a day, seven days a week
The Dairy Farming Business will Expand by adding more cows or increasing production with proper management and successful operations	There are often concerns about the treatment of dairy cows, including their living conditions and the use of growth hormones and antibiotics

Types of Dairy Breed For Cow Farming

There are several types of dairy breeds that are commonly used for dairy farming.

These include:

1. Holstein:
   • This breed is the most popular dairy breed in the United States and is known for its high milk production.
2. Jersey:
   • This breed is known for producing milk with a high butterfat content, which makes it ideal for making cheese and butter.
3. Guernsey:
   • This breed is known for producing milk with a high protein and butterfat content, which makes it ideal for making cheese and other dairy products.
4. Brown Swiss:
   • This breed is known for producing milk with a high protein and butterfat content, which makes it ideal for making cheese and other dairy products.
5. Ayrshire:
   • This breed is known for producing milk with a high protein and butterfat content, which makes it ideal for making cheese and other dairy products.
6. Milking Shorthorn:
   • This breed is known for producing milk with a high protein and butterfat content, which makes it ideal for making cheese and other dairy products.
7. Red and White Holstein:
   • This breed is known for producing milk with a high protein and butterfat content, which makes it ideal for making cheese and other dairy products.
8. Swedish Red:
   • This breed is known for producing high amounts of milk with a high protein and fat content.

Marketing of Dairy Products

In order to Market Your Dairy Product, you should let Know Your relative, Friends and neighbors about your Dairy Farm and Ask them to try Your Dairy Product For at least one time.

1. Identify your target market: Consider who your potential customers are, such as local retailers, restaurants, schools, or other institutions that might be interested in purchasing your dairy products.
2. Determine your pricing strategy: Consider the costs of production and distribution, as well as market demand, to determine the price point for your products.
3. Develop a branding and packaging strategy: Create a unique brand and packaging design that will help your products stand out on the shelves and appeal to your target market.
4. Create a marketing and advertising plan: Determine the best channels to reach your target market, such as social media, local advertising, or direct mail campaigns.
5. Explore partnerships and collaborations: Consider partnering with local retailers or restaurants to promote your products, or collaborating with other local food producers to create unique, value-added products.
6. Implement a customer loyalty program: Encourage repeat business by offering incentives such as discounts or special offers to loyal customers.
7. Utilize online platforms: Utilize online platforms, such as a website or e-commerce platform, to reach a wider audience and make it easier for customers to purchase your products.

By implementing a comprehensive marketing plan, you can effectively promote your dairy farm business and increase sales of your products.

How to Calculate Your Return From Cow Farming?

In Order to Calculate Your Return From Dairy Farm Business , You Can use following approximate daily income –

Income

No of Milking Animal You Own	5
Daily Milk production	50 Ltrs. (Avg. 10 ltr per Buffalo)
Cost Per Litre( if You Sell to Milk Dealer)	$ 3
Total Income	50*3$= 150$ Per day
Total Income ( If You Sell to End Consumer at $3.2 Per Litre)	50*3.2$= 160$ Per day

Expenses

Food Cost Per Animal (Including expenses for food like grass or water etc)	$ 10
Labor Cost Per Animal	3$
Electricity	5$
Other Expense Per Animal	$1-2
Total Expenses Per Animal	19$
Total Expense Per Days	20$ *5= 100$

So, Net daily income= 150-100 = 50 $
Gross monthly income=50* 30= 1500 $
Unforeseen Expense in a Month ( For Medical, Maintenance)= 300 $

Net monthly income= 1500-300= $1200

Question to Ask When You are Starting Dairy Farming Business?

1. Who will handle Your Farm Either by Your Self or employees?
   • If You manage Your Farm by Yourself.
     • Do You have Dairy Farming Experience or not?
     • Are You available at Your Farm 24/7 in Your Farm
     • Do you have helping hands in your own family who will manage the Farm in Case You are Sick or not Present due to Emergency.
     • Whether have passion for such work and e. What is your target and time horizon.
   • If wants to work with employees,
     • Will you get the dedicated staff For Your Cow Farm and you can bear their Salaries or Not?
2. Availability of Water and it’s cost.
3. How Will You Deliver Your Dairy Product to End Consumers? Can You bear the transportation Cost of Milk and Dairy Products?
4. How many Cow and which type of Cow Bread will You Buy?
5. Will You Purchase the land or lease Land for Cow Farm?
6. Have You Enough Capital for development of infrastructure ?
7. Soil Fertility of nearby area where from fodder is to be procured.
8. How will You Market Your Product in the Market?
9. Does Your Farm has easy access from the main connecting road?
10. Which Method of producing milk will You use?
    • Conventional/Traditional, Integrated or intensive, Organic or inorganic and Stall fed or sun grazed
11. Availability of Electricity and it’s rate per unit
12. Government Subsidies, if available for dairy.
13. Is Veterinary Doctors & Animals Hospital Available easily in Your Area?
14. Availability of medicines required for treatment
15. List of willing buyers who are ready to purchase milk at rate offered by you and in the time slot desired by consumer.

Conclusion

We try to Cover to each and Every aspect of dairy Farming in detail From Start to End. Hopefully after reading our this small guide about Starting Dairy Farming business. You will have no question left in the mind about Cow Farming and you easily make your Final Decision. If Still You have any Question, Lets us Know in the Comment Section below.