September 23, 2021
Startup Make Money Business Ideas

15 Steps To Start Your Dairy Farm

15 Steps To Start Your Dairy Farm

Opening your own dairy farm can be tough and requires a lot of hard work. Many people want their own dairy farm but they lack essential knowledge. Many people will leave this article in the beginning because of its length, but if you are serious about your business idea you should read this article till the end to get all the insight into a dairy farm business.
Throughout this article, we will learn how to start your dairy farm and make it profitable.

Dairy Industry in India

The demand for dairy products is increasing day by day in the world. India is one of the major producers of milk in the world. The consumption of milk in India is one of the highest in the world and holds a 26% share with the world on a milk consumption basis. The demand and consumption of dairy products in India is increasing at 2.3% per year, which makes this industry lucrative as there will always a demand in the market. It is a good time to start your dairy farm right now so you can be a part of this growing industry.

How to Get Started

The initial push is very important for any business activity. Since you know the potential of this industry now the question arises “How to Get Started?”
In order to open a dairy business, you need to follow certain steps and procedures, follow the article to know even further. Now, let’s jump in to know all things you need to consider to start your dairy business.

Choose What Kind of Dairy Business You Want

This is a very important step and one of the most crucial step because it can make or break your business. The nature of your Dairy business depends on this step. So it becomes very important for any business to take this decision precisely. The decision can be influenced by –

Type of Investment (Your Budget)

It is one of the most influencing factors in any business. The Investment needed to set up a dairy farm is huge, there are a lot of costs involved in a dairy business.

  • Farm Area
  • Equipment
  • Farm Vehicle
  • Electricity Bills
  • License fee
  • Insurance
  • Veterinary care
  • milking machines
  • sterilizing machines

And their are even more costs excluding these. So one need to take care of all the costs before taking their decision on dairy concept.

Do SWOT Analysis

It is very important for a new business owner to do a swot analysis of his business as well as their competitor’s business. The swot analysis of a business will give a clear understanding of the strength, weakness, opportunity, and threat of a business. Competitor’s swot analysis is also very important. You should do this analysis thoroughly.

Develop Your Business Plan

Developing a business plan gives a clear understanding of your business concept. A business plan includes all the aspects from-

  • Business Name
  • Company Overview
  • Market Analysis
  • Financial Costing

This is very important if you want investment from outsiders such as banks, angel investor.

Consult Dairy Experts

No matter which field you want to go to, there is always an expert who knows each and every bit of knowledge to make wonders in the field. It is very important to take expert advice on running a profitable business. An expert can give a clear understanding of all the activities of dairy farming. In order to develop your business plan, it is very important to consult an expert in the dairy fields. It is suggested to work on fields before starting your own dairy farm. while visiting you should take a note of what has worked well on the farm and what is not, but don’t fully rely on it as what worked for them may not work for you too.

Get Funding to Finance Your Diary

It is very essential to have capital all the time in the dairy business. You need to maintain your working capital for your daily activities. There will be a lot of costs involved during the process so it is suggested to take a source of finance to fund your business plan.

  • Bootstrap
  • Bank Loan
  • Angel Investor

It is essential to make a business plan before pitching to angel investors or banks.

Research Local Dairy Market

It is essential to talk to local dairy shop owners for their advice as they are the ones dealing with the customers. Visit a local market and talk to the local people, observe what is the trend of the market. You will get knowledge of what is the market demand for dairy product. You can also make your business connection before starting your farm if you can convince the local stores to sell them with a low-profit margin.

Permits and Licenses

Before opening your farm you should do all the necessary paperwork. There are some licenses required to set up dairy farms, and licenses vary from country to country. It is important to obtain all the license to legally start your business.

Mark Each Animal Accordingly

It is necessary for the government to mark a tag on each animal and legally register your dairy animal. As your animal will be insured if in case some mishappening occurred you will get the insurance amount if there will be a tag on the animal.

Maintain Proper Hygiene

It is important to maintain proper hygiene in the dairy farm. The farm should be clean enough so that there will not be any disease. Similarly, animals should be clean every other day and should perform proper vaccination from time to time.

Give Proper Food to Animals

It is important to give a healthy diet to the animals full of nutrition. The cow will give proper milk if they get a proper diet. So for more profits, you should give your animals a healthy and balanced diet. A healthy diet will help the animal to give high-quality milk which has high demand in the market.

Prosper Healthcare

It is important to check the health of your high quality milk producing animals regularly.

  • In case when there is a sick unit of a cow on a farm, then you should separate it from the group to avoid any transmission of disease to a healthy animal.
  • The vaccination of animals should be strictly followed at regular intervals.
  • The floor should not be wet and should not be slippery.

Milk Your Animal Frequently

Milk producing animal gives milk 3 times a day. It is very important to maintain this cycle in a proper clean location. Proper hygiene should be taken care of in the case of the milking process because animals can get deadly infections.
It is important to learn how to milk a cow if you don’t know, you can learn from any local people.

Create Waste Management

It is important to have proper waste management in dairy farm. There will be a lot of animals producing tonnes of manure every single day. If you can handle this manure then you can easily convert manure into a resource of income.
Many people purchase cow dung for their plants, you can sell these in the market and make profits. Also, you can use these for your own, you can grow your own crops to feed your animal, it will reduce cost and increase your profit margin.

Contact Local Suppliers

This is a part where you have to sell your dairy products. You should maintain a list of suppliers to supply your products in the market. The supplier will sell your product in the market and you will start getting more orders after having a lot of suppliers.

Follow Proper Routine

Now it is the last step where you have to manage all the activities throughout the day. You need to do these regularly to sustain yourself in the market. The routine should follow all time, you can also hire some staff to do it for you.

Now you have all the necessary information to start your dairy farm. Now start working on your farm to make it successful.

About Author

Vardaan Srivastava

My name is Vardaan Srivastava, I am pursuing BBA from Indraprastha University. I am a financial blogger and currently have 3 websites. I am on a mission to increase financial literacy around the world. I am the founder of the SkilledCave Website in case you want to connect with me you can mail me at

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