Dairy Farming Project Report For Setting Up A Dairy Farm

Dairy Farming Project Report

About Dairy Farming¬†ūüźģ

Friends, as we know that dairy farming business plan in India is one of the best business plan to start in India. Since anyone can start this dairy farming business plan in India from small-scale level to commercial scale business. So, it is always a good idea to learn what is the costing for set up a dairy farm.

So, today, I am here with dairy farming project report that can help you in taking the decision that what dairy breed you should raise and what is the profit margin in the dairy farming business plan in India.

ūüźĄ¬†Advantages of Dairy Farming¬†ūüźĄ

Fodder Management in Dairy Farming

There are many advantages of starting a dairy farming business plan. Some of theme are listed below –

  1. Easy to start / Low Investment Requirement –¬† One can easily start this business plan with low initial investment. One can purchase a dairy mammal and can easily start earning from this business.
  2. Instant and rapid Income –¬†After starting this business plan, you will be able to get income from this business. Even you can get from the very first day of business if you got the milking cow or buffalo.
  3. Easily & cheaper fodder availability –¬†For the feeding purpose, you can easily get the fodder for your dairy breed at a very lower rate from the villages and surrounding area.
  4. Subsidies on loan –¬†There are numbers of schemes and loan available for starting the business of dairy farming. They also offer¬†big subsidies for this.
  5. Low Management Required –¬†For starting a dairy farming business, there is no need of much care and management excluding the pest and disease management in dairy farming.

How Much Costing is Required to Set up a new Dairy Farm?

However, it is not easy to start a business without learning the pre-investment capital for any business. This also helps to learn how much income you are going to learn in future? 

So, here I had mentioned all the economic parameters, which are essential for setting up a new dairy farm.

Management in Dairy Farming

The following is details for setting a new dairy farm business plan in India at small scale, for 10 dairy breed or 10 Buffaloes.

Specification Costing or Input in this Business Plan
Buffalo breed Murrah Buffalo
No’s of Animal to Raise 10¬†Murrah Buffalo
Animals in a Batch 5 no’s
Average Price of Murrah Buffalo (Mature) Rs 50,000
Average Price of Murrah Buffalo (Baby Buffalo) Rs 10,000
Cost of Transportation per Animal Rs 1000
Milking Capacity 10 Ltr per Animal
Area requires per animal 50 sq. feet per Animal
Cost of setting up the shed in dairy farming Averagely, Rs 120 per sq. feet
Cost of Electric Feed Cutter Rs 50,000
Cost of Dairy Farm Equipment Rs 1000 per Animal
Cost of Insurance 5 % of Animal Value (Rs 500 per Animal)
Cost of Medical Rs 1000 per Animal
Cost of Solid fodder Rs 15 per solid fodder
Cost of Dry fodder Rs 3 per kg of dry Fodder
Cost of Green Fodder Rs 2 per kg of green fodder
Labor Input 1 no’s
Cost of Labor (Salary) Rs 6000 per month
Cost of Electricity and Water Rs 200 per annum
Loan Interest Rate 12 % per annum
Loan Repayment Duration 5 Years
Milk Rate In the Market Rs 40 (least rate of Milk)
Milking Duration 240 Days
Non-milking Duration 150 Days

Feeding Plan in Buffalo Dairy FarmingūüźĄūüźĄ

Types of Fodder  Fodder Price per kg  During Lactation Period During Non-Lactation Period
Supplied Quantity Daily Cost Supplied Quantity Daily Cost
Solid Fodder Rs 15 5 75 2 30
Green Fodder 2 25 Grow your own 20  Grow your own
Dry Fodder 3 4 12 5 15
Total  Р Р87  Р45

ūüźģ¬†Lactation Period And Dry’s Day of Buffalo¬†ūüźĄ

Dairy Breeds

The following is the table of about the lactation period of buffalo along with dry days.

Lactation Period
1st Year 2nd Year 3rd Year 4th Year 5th Year
1st Batch 1250 1150 1050 1050 1000
2nd Batch 500 1050 1200 1400 1400
Total 1750 2250 2250 2450 2400
Non-Lactation Period
1st Year 2nd Year 3rd Year 4th Year 5th Year
1st Batch 150 550 750 750 750
2nd Batch 0 750 650 500 500
Total 150 1300 1400 1250 1250


Learn what does the above mention table state:

  1. For the 1st year, the milking days of the first batch are about 240 days whereas there are 90 non-milking days.
  2. In the 2nd year, the milking days are taken as 220 days whereas the non-milking period for them is 120 days
  3. In the 3rd year, this figure will be 220 and 150 days.
  4. In the 3rd year, this figure will be 200 and 150 days.
  5. In the 3rd year, this figure will be 200 and 150 days.

ūüźģ¬†Cost Of Setting Up a Dairy Farm in India¬†ūüźĄ

Shed in Dairy Farming Business

One Time Investment in Dairy Farming in India

Cost of Shedding for 10 milking cattle 60,000 sq. feet (500 X 120 feet)
Cost of shedding for calves 24000 sq. feet (200 X 120 feet)
Cost of Buying 10 Murrah Buffalo Rs 5,00,000 (10 X 50,000)
Cost of Dairy Equipment Rs 10,000 (10 X 1000)
Cost of fodder cutter Rs 50,000
Total Investment Rs 6,44,000

Recurring cost

Fodder Cost for One Month (5 dairy breed) Rs 12500 (520 X 30)
Cost of Insurance (5 % of base value) 25,000 (5 % of 5,00,000)
Cost of Growing fodder at home Rs 20,000
Cost of Electricity & medical expense Rs 12000
Total Cost  Rs 69500

Total Project Cost

Total project cost= Rs. 6,44,000 + Rs. 6,95,000 = Rs. 7,20,000

Costing and Income in Dairy Farming In India

Here below is a detailed description of the costing and income in dairy farming business in India.

Management in Dairy Farming

Costing or Investment

Cost or Investment 1st Year 2nd Year 3rd Year 4th Year 5th Year
Cost of fodder in a lactation period of during milking days Rs 136950 Rs 186750 Rs 186750 Rs 199200 Rs 199200
Cost of fodder in a non-lactation period of during dry days Rs 60000 Rs 54000 Rs 54000 Rs 48000 Rs 48000
Cost on Medicines Rs 10000 Rs 10000 Rs 10000 Rs 10000 Rs 10000
Cost of Insurance Rs 25000 Rs 25000 Rs 25000 Rs 25000 Rs 25000
Cost of Growing green fodder Rs 20000 Rs 20000 Rs 20000 Rs 20000 Rs 20000
Cost of Labor Wages Rs 72000 Rs 72000 Rs 72000 Rs 72000 Rs 72000
Total Cost along with addition expense Rs 365000 Rs 365000 Rs 369000 Rs 365000 Rs 365000

Please do note that All the prices or figures are mentioned on the basis of average income and initial input in buffalo farming. It may vary according to particular region and facility of various sources.


The average milk rate in the market is taken as Rs 40 per ltr of milk. (The lowest one, it is for explanation).

  1st Year 2nd Year 3rd Year 4th Year 5th Year
Income from selling milk Rs 6,00,000 Rs 6,50,000 Rs 7,00,000 Rs 7,50,000 Rs 7,50,000
Total Income Rs 6,00,000 Rs 6,50,000 Rs 7,00,000 Rs 7,50,000 Rs 7,50,000
Total Profit Rs 3,00,000 Rs 3,50,000 Rs 4,00,000 Rs 4,50,000 Rs 4,50,000

ūüźģ¬†Profit Margin in Dairy Farming¬†ūüźģ

Duration 1st Year 2nd Year 3rd Year 4th Year 5th Year
One time Investment Rs 644000
Recurring Cost Rs 263950 Rs 361750 Rs 361750 Rs 368200 Rs 368200
Income Rs 6,00,000 Rs 6,50,000 Rs 7,00,000 Rs 7,50,000 Rs 7,50,000
Pure Profit Rs – 3,00,000 Rs 2,90,000 Rs 3,50,000 Rs 3,90,000 Rs 3,90,000

Final Words

Dear friends, this is a project report for dairy farming business plan in India is made on the ideal condition and situation with least prices. All the figure are average figure base on the real life. So, that you can learn why you should go for a dairy farming business in India rather than going for any other busines.

So, friends, Just make a strategic plan and move ahead to earn millions from this business.

ūüźĄūüźĄ¬†Have a Great Success in your Dair Farm¬†ūüźģūüźģ¬†ūüźĄūüźĄ

How to Start Dairy Farming Business Plan | Guide & Information

Dairy Farming Business Plan In India About Dairy Farming

Do you know that India tops the list of milk production, all over the world? So, friends, today we are going to learn dairy farming as a business plan in India. We will also see a project report to learn the costing and investment required for starting a dairy farming business.

Friend, this business plan is being spread more and more because of too much profit in this business at small scale and large scale. This is also one the cheapest business to start, that can give you more income in a very short time period. Economically, this business plays a vital role in the economy of the country, providing plenty of job opportunity to numbers of people.

One can start this business by keeping only one or ten cattle also and can increase this business up to large scale in the following years. Anyone can start this business having Rs 50000 or one lack as the initial capital investment. The only thing that needs to care is the breeds. You should be well aware of which breeds should be raised so that your business can be more profitable.

Dairy Farming Business plan

The business of milking is very popular in every corner because everyone likes to drink milk daily and also uses many milk product regularly. But, cattle farming with modern milk production techniques or method in this business can help in earning a huge income in a very short interval. However, with a good and effective strategic plan in this business, anyone can earn millions of money from it. However, there are also some of the problems in the dairy farming business.

Nowadays, their many degrees are studied in this business such as agriculture,  dairy science, and other related fields degree. But, you need a good practical base experience in this field to become a successful milk producer. Small milk producers need big efforts and grow slowly, whereas big milk producers require more capital to obtain good returns from this business.

Whatever is this, this business requires good management and care such as milking (milk extraction), feeding, diseases control measures, whether it may be a small or large scale business. Also, a good support of veterinarians and nutrition experts is also required for managing animals health. Milking or extracting milk with advanced techniques is more beneficial rather than milking traditionally because it requires laborious effort as well supervision. Nowadays, with advanced technology in dairy farming, a farmer can milk a cattle, at least three times a day.

What is Importance of Dairy Farming in India

Milk production business in India is one traditional business because of there is an excellent demand for the milk, curd, buttermilk, and numbers of others dairy products and you can be sold them at every corner of the world throughout the year. This business is also encouraged by the govt. and other organization because this business is an eco-friendly business, which never pollutes the atmosphere in any way. And, also this business does not require much skill to manage.

Dairy Breeds

Besides this, this business also brings a great opportunity for these unemployed, educated and also the illiterate youth. If this business is done with proper planning and management, it gives maximum output. This business is successful in every type of climate and weather. There are many government schemes and loans available for starting a dairy farming business plan.

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However, to make it a successful business, it requires some responsibilities including the monitoring of animals health, essential medicines for them, proper & sufficient feeding, suitable milking equipment along with waste management. Whatever is this, starting a dairy business is easier than starting other business. You can supply your collected milk to your nearby region or to the companies for the process of dairy.

Point to Consider Before Starting a New Dairy Farm

Dairy Farming Business is easier than other businesses, but it requires proper care and management of cattle along with some task to do. So, before going to start a new dairy farm, here below are some pointers to consider. Learn them.

Management in Dairy Farming

  1. Dairy Breed: Starting a farm with proper species of cattle is require for good milk production.
  2. Milking Practice: As your business is totally depended on the milking, a good milk extraction practice is required.
  3. Feed & Water Supply for Cattle: To have healthy cattle, a proper and nutritious food is required along with sufficient amount of water.
  4. Good Infrastructure: A good infrastructure is needed for establishing a good dairy farm
  5. Practical Base Knowledge of Dairy: You should also have good practical base knowledge of cattle to earn more profit.
  6. Health and Safety of Cattles: Monitor the health and safety of your cattle because unhealthy cattle are unable to produce milk in more amount.
  7. Health Precaution: A good support of veterinarians and nutrition experts is also required for managing animals health.
  8. Affordable Environment for Cattle: A good environment around your business is also required to produce more milk.
  9. Cleanliness while Milking: This is the most important task in this business. As your business is mainly depended on the milk quality, a milk having not good quality is always refused by all.

So, always think on all these mentioned above point, before starting a new dairy farming business.

How to Start Dairy Farming Business

To start a dairy farming business, you need to have knowledge of some point. So, here below is the dairy farming guide for you. Learn it and be a successful milk producer.

Prepare a Good Shelter For Cattle

As cattle are large mammals, you need a large space for them for their comforts and protection as a housing. They can produce more milk under favorable conditions. You can favorable house depending on your investment and scale of business. A proper housing for cattle will helps you in protecting them from¬†strong sunlight,¬†high humidity,¬†snowfall,¬† frost, heavy rainfall,¬†strong winds, and also from endo as well ectoparasites. Also, try to maintain the house temp. so, that your raise cattle can produce more milk. A temp. ranging between 18 to 30 ‘C is considered as a comfortable temperature for all types of cattle like buffaloes, goat, cow, etc. Also, a temp, more than 50 ‘C will create a climatic stress for your cattle. A heavy rainfall with cold climate is also a major cause of¬†climatic stress.

Shed in Dairy Farming Business

Nowadays, there are several techniques, available to get relieved from such problem. Also, a well-ventilated shelter is also required for well milk production. A sufficient amount of fresh air through cattle housing is also required to ensure good health of dairy animals.

Select A Suitable Dairy Breed of Cattle

Selecting a proper breed of dairy cattle is also important in deciding the profit, a high milk producing cattle breeds can give you more profit with same costing and farm management. So, here below is the list of top cattle breeds which have tops in the milk-producing capacity along with their specification.

Dairy Breeds

Cattle Breeds Milk Producing Capacity Specification
Holstein Cattle Breed More than 11,000 ltr per year Best dairy breed which popular all over the world for higher milk production
Norwegian Red Cattle Breed More than 10,000 ltr per year Hardy dairy breed, well know for richness in milk
Kostroma Cattle Breed More than 10,000 ltr per year Long live dairy breeds
Brown Swiss Cattle Breed More than 9,000 ltr per year Milf from this breed is popular for cheese production
Swedish Red Cattle Breed More than 8,000 ltr per year Have long body size with robust structure
Ayrshire Cattle Breed More than 8,000 ltr per year A famous dairy brees which are easy to raise commercially
Angeln Cattle Breed More than 7,500 ltr per year This breed is famous for high milk fat
Guernsey cattle Breed More than 7,000 ltr per year Well known for producing A2 quality milk
Milking Shorthorn Dairy Breed More than 7,000 ltr per year
Pie Rouge des Plaines More than 6,500 ltr per year

However, select a dairy breed which is high in milk production, also is also have good disease resistant capacity in accordance with your climatic condition.

Fodder Management in Dairy Farming

For Profitable dairy farming, a proper food with clean and fresh water in sufficient amount is required in dairy farming business. It is a good idea to set a daily feeding schedule of dairy cows or cattle breeds.

You can use, Maize, Sorghum, Jowar, Bicolor, Pearl Millet or Bajra, Cowpea, Oats and many other green fodders to feed your dairy breeds. Presently, nowadays, there are numbers of nutritious fodder are available in the market, feeding with them is also beneficial for you in achieving a good quality of milk.

Dairy Farming Management

How much fodder to a dairy breed or cow feed per day? It depends on the size, weight, the milk-producing capacity of that dairy breeds, but provide a nutritious fodder to you dairy product in sufficient amount.

Dairy Farm Management

Keep to the daily hygiene of your farm. Basically, a good dairy management in livestock farm is to be carried out to keep the farm clean. Always clean your farm by disposing of you farm waste such as urine, dung, fodder waste… This will also help in minimizing the odor problem in your farm. Collect the urine and dung a proper site and sold to nearby farmers.

Cattle | Diseases, and Treatment

Cattle Tick

Tick infestation or Cattle Tick

In dairy farming, Tick infestation a common and also major disease that observed in all types of breeds, such as sheeps, goat, buffaloes, cows, and other such domestic animals. As tick is one of the parasitic diseases, it sucks the blood from the cattle and makes them unhealthy which causes less milk production. Tick infection also gives birth to numbers of skin diseases in cattle.

So, tick infection should be controlled as soon as they observed on the cattle. Since, there are many ways of controlling measure of tick infection, of which, the chemicals way such as spraying insecticides on cattle is the best way.

Presence of one tick on cattle can give birth up to more than 1500 young ones. So, for controlling tick, consider the following to control ticks.

  1. Keep cattle housing clean by removing the waste material from the shed.
  2. The tick can hide in the cracks and crevices, so remove them, if present in cattle housing.
  3. Spraying of recommended insecticides should be done under veterinarian instruction in the whole dairy farm.
  4. Check up on cattle should be done at an interval of 20 days, regularly. Take specific care in the beginning of monsoon and winter.

Never use BHC (Benzene Hexachloride powder), or DDT for controlling the ectoparasite, because the use of them is banned.

However, an intense sol. of common salt are successful in controlling ticks.

Cattle Breeding

Breeding cattle is also an important task to perform in this business. But, breeding cattle at the proper stage is more beneficial to breed a healthy and quality breed of a cattle. So, let us learn how to breed cattle successfully in following steps.

Fodder Management in Dairy Farming

Signs of Oestrus in the Cattle

The following is the list of some common sign of Oestrus in the cattle such as cows and buffaloes.

  • Frequent urination
  • Increased restlessness
  • Mounted standing from others
  • Gummy mucus stretching from vulva
  • Mucus spread on the private part.
  • Less milk production
  • Decreased in feed intake amount
  • Raising tail frequently

How Long Is a Cow in Heat?

Normally, most of the cattle breeds stand in a heat for 15 to 28 hrs. However, usually, an estrous breed of cow stand mounted for about 25 to 50 times during a single estrous period.

Breeding Cattle Successfully

If you observed them frequently or particularly, then go to a veterinary check sooner as possible, because of this long last for short time. You can go for manual breeding with the help of male cattle, but nowadays, there is less availability of male cattle easily.

Is it always safer to go at least one check-up of the pregnancy cattle after about 75 days from the treatment, it will help you in know the status of the cattle, whether it breed successfully or not? It will also help in faulty hormonal provocations.

Management for Successful Cattle Breeding

Observed heat signs in cattle, at least 3 times a day. Supervise every cattle to identifying the oestrus through breeding wheels and records. You can also use teaser bulls for this. Also, silent or weak oestrus is normal in buffalo and cow breeds in the postpartum period.

Calf Management in Dairy Farming

However, providing nutritious food at proper breeding age will help in attaining proper body weight and also reproduce a healthy and quality young one from raised cattle. However, a well qualified veterinary doctor can help you more in this, breeding cattle properly and also suggest the best, depending on the basis of condition and symptoms.

How Long Is a Cow Pregnant Before Giving Birth?

Normally, the Gestation length for cattle varies from 280 days to 295 days. But, almost, for most of the breeds, the gestation length for cattle is 284 days.

First Calving Age (Months)

Young ones from the cattle are become ready for breeding after about age of three years. However, a good quality and healthy dairy breeds can give birth to their first calve at about the age of 30 months.

Calf Management

Young ones of the breed should be fed sufficiently to improve their health and also quality. A sufficient food to these newborn calves can help them in attaining proper weight. Also, vaccination timely is the important task, which needs attention and care. Consult a well-qualified veterans doctor, for proper vaccination, time to time.

Milking Your Cattle or Milking Process

As your business is most dependent on the milk and milk products, you should have good knowledge of milking practice to earn profit from this business. If you have not a good practice of milking, then sometimes there are some chances of lowering the milk production capacity of any types of dairy breeds, which causes low milk production and less income from milk. So, here below is a guide for you learn the milking practices and how to manage it well.

Milking Practice in Dairy Farming

  1. Train Few Milkers: Train at least few workers from well-known milk machine company. It will help you in learning the milking biology, milking techniques, milking equipment, as well as how to maintain these acquired milking machines or equipment, more technically and practically.
  2. A good Supervision: If you are going to milking with milk extractor, it needs a good supervision, because machines do not have sense, they work till there is a light connection with them. A small mistake can lead to more loss.
  3. Maintain Hygiene: A proper hygiene of your dairy farm is to be done on the regular basis, including the hygiene of milking equipment, milking routing. Also, clean the cattle every day.
  4. Manual Milking: If you could not afford milk extracting equipment, then learn manual milking practice from your neighbors or hires few on salary base. Always select only calm cattle, if you are planning for this.
  5. Create Comfortable Atmosphere: For higher milk production, a well and comfortable atmosphere in your dairy farm is should be created, so that happy cattle milk more.

Dairy farm loan

In India, the central govt. is providing financial assistance for starting a new dairy farming business plan in the rural area for poor people. There are numbers of Government Dairy department, which are providing loan for this business depending on the scale of your business. However, NABARD (National Bank for Agriculture and Rural Development) is the best and most preferred for getting a loan for dairy farming.

Final Words

Friends, Dairy farming is really a profitable and fun giving business if done by raising suitable dairy breeds with modern dairy techniques. Also, a good dairy farming management will help you more. I hope that you learn the following in details, in this article.

  1. Dairy farming business plan
  2. Dairy farm in India & Some Important
  3. Dairy farming videos
  4. Dairy farm loan

Learn dairy farm project report here