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Monday, April 15, 2024

What You Need to Consider Before Starting Your Dairy Farm Business?

Having a basic understanding of things related to dairy farming is essential for starting a dairy farm from the ground up. 

Dairy farms require several prerequisite conditions, including financial, a dairy loan and time commitments. You should clearly understand the plan and management schedule when getting into the dairy farm business. The following are some important factors to consider:

Accessing funding or loan for startup business in India

Establishing a dairy farm requires investment in (financial resources). Farmers should be able to purchase farm equipment, build a shed, purchase animals, and buy feed for them. Through the subsidy schemes of NABARD, farmers are provided with financial assistance. Leading NBFCs offer a quick loan for startup business in India, among other loans for such kinds of business requirements. 

Farm location 

Dairy farms on rented land are always more expensive than farms on your land. If the farm is within 10 kilometers of the city, the product can be sold there easily.

Cultivation of feeding area 

Farmers or individuals starting their own farms must always plan to cultivate cattle fodder on their land. Generally, green fodder, such as grass, sorghum, etc., is grown in a small area within the farm. Seeds are used to propagate these grasses, and up to 70-80 tons of grass are estimated to be produced per acre. 

It would be best to begin grass cultivation at least 60-70 days beforehand when you introduce farm animals. The price of dry fodder is lower after harvest season but becomes more expensive during the summer or drought period. Therefore, dry fodder should be stored for at least one year.

Construction of supporting equipment 

Grass cultivation should be done concurrently with bore well construction and shed construction. The cultivation of grass requires groundwater. Electric wires can be used to provide irrigation from a bore well. 

A single-phase motor has been installed on the farm as an additional security measure. Basic farm equipment includes chaff cutters, single-phase generators, milk cans, cleaning and sanitation tools, and other farm management tools.

Farm dimensions 

The sheds should be 75 x 30 feet to accommodate 30 buffaloes. The farm sheds should be equipped with a calf shed, two workers’ rooms (12 x 10 ft), one storeroom (12 x 10 ft) and a manager’s or owner’s room (12 x 10 ft).

Networking with dairy agencies 

Before starting a farm, getting a milk agency to sell the owner’s produce and products is a must. As another option, the farmer can directly sell his products to local hotels and households.

The dairy farm should be properly staffed with workers handling and maintaining dairy cattle. A backup plan of one or two additional dairy farmers should always be in place. Ten dairy cows need one worker.

Livestock purchase

It’s recommended that the farm purchase two batches of animals, i.e., ten cows after five months and approximately 19 dairy cattle after five months. It is always good to buy a bull from the first batch. Before purchasing any animals, consult an expert.

Focus on increasing labour resources

Those who wish to start a dairy farm business must have a strong desire and passion for dairy farming. In this business, you have to be patient and put in a lot of work. Dairy farmers and others in the dairy farming business must have a basic understanding of farming techniques. Different training centres teach individuals the best ways to farm efficiently.

Industry demographics

There is no restriction on the demographic and psychographic composition of consumers of dairy products. There is a wide market for dairy farm products since children, adults, and even pets drink milk. So if you intend to define the demographics for your dairy farm produce business, make sure you include all aspects. A dairy farmer must supply fresh milk and cheese to businesses, households and dairy manufacturing companies.

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