Dairy Farming Business In India Cost, Profit, Business Plan, Requirements | SkillsAndTech

Dairy Farming Business In India Cost, Profit, Business Plan, Requirements | SkillsAndTech

This article will widen your horizon of knowledge concerning dairy farming and dairy farming business plan. Let’s begin with the introduction to dairy farming.

Dairy Farming: An Introduction

Regardless of the location and season, there is always a tremendous demand for milk all over India. The increase in population has also doubled the rate of milk consumption in India. In our country, unemployment is on another level, and thus, young business enthusiasts are taking a keen interest in the dairy farm business. Many people want to commence this business, but due to lack of knowledge and market awareness concerning the same, they hesitate to put their feet in this business.

Dairy farming business is a lucrative business choice nowadays. It is an eco-friendly business, and it can be commenced in all seasons. It is deemed a thousand times better option as compared to a job. One of the noteworthy features associated with dairy farming is that it doesn’t require highly skilled and competent labour. You can easily set up this form of business without much worry.

Before initiating a dairy farming business anywhere in India, it is essential to have a sound dairy farming business plan. You will have to dedicate your time as well as efforts on your dairy farm round the clock. It’s not necessary that you have to commence your dairy farm on a commercial level. You can begin your journey on a small scale, and with the progress of your business, you can develop it as a large-scale venture.

Components of Dairy Farming Business Plan

There are various requirements of the dairy farming business plan.

Given below are the components of dairy farming that one must know before commencing this form of business-

Land: Farm owners must take a keen interest in the maintenance of cultivated areas or land for growing fodder crops for the purpose of cattle. Normally, the land area relies on the number of cattle that are likely to get stored. Generally, 1 acre of land is enough to feed around 7 to 10 cows.

Shed: There should be a well-covered area constructed in the farmland before inviting the cows into your farm.

Labour: Labour is the soul of the dairy farming business plan. In the dairy farming business, the chosen labour must hold expertise in handling the activities related to the farm entailing growing green fodder. It’s crucial to extend at least one to two days of training to the labour force so that they can get well versed with routine activities taking place at dairy farms.

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Selection & Vaccination of Breed: To generate more milk, there must be decent cow breed selection. It’s important to opt for a breed that yields more milk and can give momentum to the dairy farming business. Well-known milk yielding cows are Gir, Red Sindhi, Ongole, Sahiwal, and others.

Furthermore, to bring diseases under control and preserve cow’s health, their caretaker must have a strict schedule for vaccination. Hiring a veterinary doctor will be a great move as it will ensure routine checkups as well as proper medication for cows.

Water and Fodder: Both of these components must be available in desirable quantities; as water promotes the growth of green fodder & fodder further plays a significant role in the proper nourishment of cattle.

Dairy Farming Business Plan in Brief

As a beginner, you must visit some Agriculture Universities or Training Centers associated with the Animal Husbandry Department or Private Training Dairy Consultancy or any Krishi Vigyan Kendras to acquire some professional training.

Go through online dairy blog websites, dairy magazines, as well as Youtube Videos to accumulate more knowledge regarding the concept of farming.

Move to the local dairy farms and consult management so that you may acquire knowledge with respect to the management of the farm. Ask them about the various problems they face and learn how they overcome the problems.

One of the noteworthy points mentioned in the dairy farming business plan is that if you are willing to commence dairy farm business, then you would have to learn sound labour management skills.

As we all know that fodder or feed is the prime element of dairy farming that impacts profitability up to a great extent, dairy farm business enthusiasts should acquire an in-depth understanding of silage-making procedures as well as green fodder cultivation exercises.

In case you don’t have capital investment and wish to acquire a subsidy & loan the dairy farm, you should visit your cooperative banks/local agriculture for further information.

At an initial level, you need to visit some cattle markets to witness animals on sale & communicate with individuals engrossed with buying animals to acquire an idea of the reasonable animal prices, best breed, as well as milk yield of animals.  Besides this, you can learn negotiation skills.

Shed Construction

  • Proper ventilation, as well as a spacious shed, is needed for dairy farming.
  • In order to maintain the cattle health, the construction of a shed is crucial.
  • It ensures hygienic conditions for cattle.
  • The space requirement with respect to shed construction is 8 feet * 12 feet area for one cow. Therefore, the entire space needed for 15 cows is around 120 feet * 12 feet.
  • Nevertheless, nothing is fixed with regard to the area, and things depend on the size of the cow.
  • Cow feeders must be built in between with a wall of separation so that the cows can be fed via Head to Head Arrangement in which cows get fed from both sides facing head to head each other.
  • The dairy shed roof must be prepared with asbestos sheets & the floor must be made of either cement or bricks with sufficient inclination.
  • It can grant proper drainage for cattle urine & excrete. In order to maintain a hygienic state, the shed must be cleaned daily. 
  • At the time of construction of the shed, care must be taken.
  • The location must be elevated to prevent any form of water stagnation surrounding the shed, and it also delivers proper ventilation (air and sunlight).

Dairy Farming Business Plan

  • A dairy farming business plan includes a good dairy breed selection as it will help in successful dairy farming.
  • Opt for the dairy cow/cattle breed that meets the requirements of climatic conditions as well as high milking capacity.
  • You may take a tour of the local farms, and you can proceed ahead for observing the various breed types.
  • A crossbreed of Holstein Frisian with Indian Sahiwal or Jersey with Red Sindhi or Jersey with Sahiwal is in high demand due to its good milk production capability.
  • You need to opt for a breed that is capable of producing 20 to 25 litres/day.
  • Artificial insemination has a key role to play with respect to cross with high-yielding breeds. 

Fodder Management

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In dairy farming, fodder management is extremely crucial. The daily milk yield of a cow is based on the type of fodder as well as the nutritional facts associated with the available fodder. High-yielding cows must receive 1 kg of concentrate and mineral mixture to obtain 2.5 litres of milk produce. Suppose that, if a cow yields 15 litres of milk on a regular basis, then that cow must be given around 6 kg of concentrate along with a mineral mixture.

Under Dairy Fodder Management Practices, three types of fodder can be provided. The three types of fodder are mentioned below-

Green Fodder

All the leguminous crops which are enriched with protein supplements belong to the green fodder family. For example, any gram crop, masoor, berseem, corn/maize, as well as hybrid grass such as CO-3 & CO-4, nipper grass, and more. Such green fodder crops can be used to prepare silage. This silage is considered highly nutritious, and milk yield is likely to increase. Silage making is crucial, and it is mainly required in dry periods. Usually, 2 to 3 acre of fertile land is needed to produce green fodders for 15 cows. Nevertheless, the yield of green fodder relies on several factors.

Dry Fodder

It encompasses choker (wheat bran), kutti(rice/paddy straw), and wheat hay.

Concentrate & Mineral Mixture- 

It is needed to grant concentrate feed and a mineral mixture on a daily basis so that cows won’t have to suffer due to deficiency of minerals. All three types must be appropriate proportion for adequate milk yield.

The cost of feed must depend upon the milk capacity of the animal. The feed may stay in the range of 200 to 250 Rs./day/cow on an average basis.

Management of Cow & Calves under Dairy Farming Business Plan

  • Mating of cows (Also known as artificial insemination) must be carried out after the time frame of every 3 months of calving.
  • It takes around 3 years for Indian cattle breeds to reach the phase of maturity whereas HF cows or high yield jersey crossbreed reach the phase of maturity, in the time frame of 16 to 18 months, and they will be prepared for mating.
  • Cow must be calving for every 13 months in general.
  • The period of lactation associated with cows is 300 days, and the service period must be 90 to 120 days.
  • Furthermore, the gestation period is of 266 days.
  • In the case of pregnant cows, more care and attention is required as during this stage, they need more nutrition.
  • In the gestation period, cows must receive proper concentrate as well as a mineral mixture.
  • With each passing day, the feed intake must be increased in order to ensure proper growth and development of calves as well as their udder.

Water Supply

One of the major requirements is the clean water supply with respect to drinking & cleaning purposes of the shed. By providing overhead tanks, arrangements can be carried out.

Dairy Farming Business Plan: Vaccination Program

Before proceeding ahead for giving any vaccination in the dairy industry, deworming must take place to obtain fruitful outcomes. Nevertheless, deworming must be carried out regularly, and the veterinary doctor is likely to be your point of contact concerning the same. The diseases monitored under the vaccination program are- Foot and Mouth Diseases, Theileriosis, Rabies, Brucella, Anthrax, Hemorrhagic Septicemia, and other diseases.

Legal Requirements and Permissions to Set Up a Dairy Farm

The legal steps are different in all the states. It depends on whether you strive to process milk and its products. The information concerning license and permits may be applied to dairy farm license in Uttar Pradesh, dairy farm license in West Bengal, dairy farm license in Punjab, dairy farm license in Haryana, dairy farm license in Maharashtra, dairy farm license in Rajasthan, dairy farm license in Haryana, dairy farm license in Madhya Pradesh, dairy farm license in Chhattisgarh, dairy farm license in Bihar, and other states of India.

The basic steps are mentioned below-

Registration of Firm:

You may start the small to medium Business either a Proprietorship or Partnership Firm.

If you are starting this Business as One Person Company, then you have to register your firm as a proprietorship.

For Partnership operation, you have to register as a limited liability partnership (LLP) or Pvt. Ltd. Company with
Registrar of Companies (ROC).

GST Registration:

it is mandatory to get the GST number to run the business; you need to apply for the GST registration.

Trade License:

obtain trade license from local authorities

MSME/SSI Registration:

this MSME/SSI Registration will help you to get schemes and facility for the business offers by the state government

BIS certification:

BIS has mentioned the specific quality standard for Business. ISI specification for the

Trade Mark:

you can secure your brand with trademark registration

IEC code: 

IEC code is essential for the export of the product

Safety and Standard Authority of India (FSSAI):

This business is categories under food processing business; therefore, you must have to take the FSSAI license.


state insurance which is an insurance scheme for workers.

ESI Registration:

Employees provident fund is compulsory for the business where more than 20 employees are working.

To comply with the above processes and registration, one might need any legal expert who would help in absolute legal compliance to meet industrial standards. 

Scope for Dairy Farming

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India is empowered with the vastest livestock population in the entire world. It reports about 57.3 % of the world’s buffalo population & 14.7 % of the cattle population. Therefore, there is an incredible scope for boosting milk production via profitable dairy farming.


The dairy farming business in India can generate a rosy picture for dairy business owners. This form of business’s huge potential is because people nowadays have become more health-conscious and have entailed milk and milk products in their daily diet regime. Amid the pandemic, people have been focusing more on strengthening their immune system, and therefore, the demand for milk, especially the A2 Cow milk, has gained pace in the Indian market. Before commencing a dairy farm business, you should be ready with your dairy farming business plan.

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