Without any doubt, it is a fact that India is the largest milk-producing country in the world, owing to the high population of cows and buffaloes present here. The growth rate of this industry since Independence has been very fast at 3 %. In this growth, livestock in India plays an important role contributing around 4.11 % to the GDP and 25.6 % to the total agricultural GDP. Rural small-scale dairy farmers also make a contribution of 62% to the total milk production of the country.
After rice, Milk is the second largest agricultural commodity produced. Due to the evolving population, and rapid urbanization, the demand for milk is increasing day by day hence the need for increasing milk supply too, which is the main cause of why dairy farming in India is rapidly expanding.
So, in this article, one will learn about Dairy Farming Business Idea, appealing scenario of Dairy Farming in India, the establishment of dairy farms, how one can build his/her dairy farm with minimal inputs, and the profits associated.
Dairy Farming Business Idea in India
So, if one wants to start a dairy business in India or wants to obtain an all-season opportunity after looking at the demand for milk or milk products, the following are some of the points that one can start their business with.
Dairy farming in India is always a thriving market due to high milk production in India and is the cause why dairy is the top-ranking commodity in India. The main components that one should look for are:
- A good dairy business plan: before starting any venture, one should always have a clear plan that defines the goals, strategies, and financial matters, so the same goes with the person who is going to start dairy farming in India.
- Conduct market research: before starting dairy farming, the person should investigate the demand for milk and its products in his area and the competition if exists.
- Land: it depends upon how many cattle the dairy farmer has. The fields/land are used to produce feed for the cattle. Usually, 1 acre of land is optimal to feed 7-10 cows.
- Select the Right Breed: the dairy farmer should choose the cattle breed that produces more amount of milk along with which a proper vaccination of the cattle should be done to prevent them from diseases. Cow’s milk has a lower fat percentage than buffalo’s milk. The Latter one is more suitable for producing butter and ghee.
- Shed Area: every dairy farmer should have some covered area as a shed where he/she keeps the cattle to prevent them from adversities of weather.
- Cattle Nourishment: Nutritious fodder should be always available for healthy cattle and to take care of their nourishment.
- Legal Formalities: Necessary licenses and permissions to start up a dairy farm should be obtained legally by a dairy farmer. It varies from location to location. For opening a dairy farm, one can get a Dairy loan from NABARD i.e. up to 33 % subsidy on loans under the Dairy Entrepreneurship Development Scheme (DEDS) from approved banks.
- Assured Dairy Farm business Loan: initial financing help should be taken from the bank so that one can cover the startup costs of dairy farming in India.
- Market strategies: dairy farmer should use some market strategy so that to make people know about his products/services.
How Much Does a Dairy Farm Cost?
Given below is an approximate idea of how much will it cost a person to establish a dairy farm or to start a dairy farming in India.
- An approximate amount of 10-20 lacs rupees is required initially to set up a small-scale dairy farm in India in a rural region.
- NABARD is also providing a subsidy of 33.33 % on loans up to 7 lacs rupees under the Dairy entrepreneurship development scheme through eligible banks.
The cost varies significantly and depends upon many factors like the location of the farm, operational scale, infrastructure, and type of cattle breed that is used. The approximate breakdown of cost is as under:
- Land: the cost varies from Rs, 1,00,000/- to 10,00,000/- per acre. The small farmer can opt for a small farm in 1 acre to several acres for establishing a large dairy farm.
- Building a Cattle Shed: the shed should be well-constructed and safe for the health and productivity of the cows. The general cost of building a shed ranges from Rs 50,000- Rs. 1,50,000/- which depends upon the number of cows, a dairy farmer is keeping in it.
- Acquire a Cow: This factor depends upon the quality of milk that a cattle is producing. Some Indian cattle breeds like that of Sahiwal generally cost around 60,000-75,000/-, whereas the cost of Gir cow usually lies in the range of Rs. 30,000/- to Rs. 2,00,000/- due to its good milk-yielding quality.
Another high-yielding breed Holstein Friesian typically costs around 1.5 lacs to a dairy farmer while the average cost of a Jersey cow ranges from 40,000-60,000/ cow.
- Medicinal Costs: to maintain healthy cattle, one should take care of the regular medicines or vaccinations of the cattle, which generally cost around Rs.10,000/-.
- Cattle Feed: Nutritional feed should be given to cattle to maintain them in good health and for their physical fitness. It generally amounts to Rs. 40,000/-.
Also Read
- 20 Indian Cattle Breeds
- 10 Exotic Breeds of Cattle
- HF Cow (Holstein Friesian): Characteristics, Cost
A Profitable Business
After knowing about the dairy farming business and the input/costs that it requires, one will surely have this doubt in mind is dairy farming in India profitable? Or How much earning does a dairy farmer make? The answers to these questions are given below for all aspiring dairy farmers.
Though this business is a thousand years old and is still increasing its scope. Yet, only recently it has become a profitable one. The main reasons are:
- Due to the high demand for milk/cheese/other dairy products, dairy farming in India also requires less investment costs in comparison to other types of farming.
- Milk Profit Margin: the profitability also depends upon how many cows the dairy farmer has, the quality of the milk, and at what price he is selling the milk. The milk should be of high quality to increase the milk’s profit margin.
- On average, with just 10 cows, a dairy farmer in India earns between a range of 8,000 to 1 lacs per month and approx daily Rs. 750-1000/- after deducting the cost of cattle feed. Hence, Dairy farming in India is one of the ways to obtain a steady income and is crucial for the nation’s agricultural heritage.
- Government support: to support dairy farming in India, the Indian government to all the new and existing dairy farmers with the initiatives like National Dairy Development Board (NDDB). The main aim of this board is to develop the infrastructure required, promote the improved version of cattle breeds along with financial help to small and marginal farmers,
Schemes Associated to Dairy Farming Business in India
1-Rashtriya Gokul Mission:
It was launched in December 2014, to preserve and promote the indigenous cattle breeds of India. Since it is important to meet the nation’s increasing demand for milk, this scheme is crucial for supplementing the cow’s productivity and milk output.
This Scheme comes under the Rashtriya Gokul Mission for a while of 2021- 2026, with an overall outlay of Rs 2400 crores. It also increases the profitability of the small and marginal dairy farmers.
2-Dairy Infrastructure Development Scheme (DIDS):
This fund has been established in collaboration with the National Bank for Agriculture and Rural Development (NABARD), with an overall budget of Rs. 11,184 Cr. The main aim of this scheme is to upgrade the outdated milk processing and chilling plants along with some value addition to dairy infrastructure.
Under this scheme, there is also a provision of the installation of electronic milk adulteration testing equipment at the village level to provide pure milk to all consumers.
3-National Programme for Dairy Development (NPDD):
Enhancement in the milk quality and its products are the main objectives of this scheme, thereby increasing the share of organized milk procurement. The scheme has two sub-components:
- The first component has its focus on strengthening the infrastructure of types of equipment for quality milk testing and primary chilling facilities of all the milk producers for a period of 5 years i.e.(2021-2026).
- The second component provides financial help from JICA to establish the necessary dairy infrastructure to bring forth the market linkage for the produce of villages and also to nourish the capacity building of stakeholders of dairy farming in India.
Also Read
Wind up:
From the above-given information, now, one will get to know about the importance of milk and milk products and how much profitable dairy farming in India is. It is one of the best and most profitable options, particularly for small and marginal farmers who are equipped with the resources, knowledge, and skills required for dairy farming owing to its all-season demand. Since it is already a highly demanded business, the marketing costs are ultimately lower than the investment costs to start a farm. In the end, there is nothing to worry about dairy farming in India if one is going to start its venture too, provided some basic knowledge, skills, and resources he should have.
