Dairy Farming Project Report For Setting Up A Dairy Farm

Dairy Farming Project Report

About Dairy Farming 🐮

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.

🐄 Advantages of Dairy Farming 🐄

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 Farming🐄🐄

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  –  – 87  – 45

🐮 Lactation Period And Dry’s Day of Buffalo 🐄

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

Declaration

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.

🐮 Cost Of Setting Up a Dairy Farm in India 🐄

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.

Income

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

🐮 Profit Margin in Dairy Farming 🐮

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.

🐄🐄 Have a Great Success in your Dair Farm 🐮🐮 🐄🐄

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