How To start dairy farming business from scratch ? Confident Guide to starting Dairy farming

How To start dairy farming business from scratch ? Since founding our Website PowerGotha, enthusiast from Cities who want to turn to villages for sustainable business and life, have been asking this fundamental question regularly.

While there’s no perfect answer to that, there’s universal method by which you can learn any business. Dairy Farming is no exception.

Few fundamental steps need to be followed to start a successful dairy farming business. I’m listing them below.

How to Start Dairy farming  – steps involved

1. 1. Learn
   2. Start
   3. Run
   4. Maintain
   5. Grow

We’ll discuss them one by one.

1. Learn – How to start Dairy Farming

It is said that, to start any business you need to have capital, space, manpower, technology etc.

My opinion is however slightly different.  To start any business and run it successfully, one needs to have knowledge and training about the business he wants to enter into.

Without the know-how of how to run the business and all the small knit gritties of the same, any new venture is doomed from the start.

Dairy farming is no exception to this rule.

You need to learn basics of cow farming.  

These basics might involve

Various Cow Breeds
How to rear a heifer (calf),
Know about heat of animal
How to Take care of pregnant cows
Manage delivery
Milking procedure
Clean milk production
Dairy farm management techniques
Loose housing
Stress free Cows
Fodder management
Silage making
Health and Disease Management for cows
Breeding Policy
Economics of the dairy farm
Taking care of milk produced
Marketing of products
How To survive when milk prices are low?

Update 2020: There’s a course available online on How to Start Dairy farming.

You can see below beautiful low cost dairy farm showing loose housing and healthy heifers.

A typical Dairy farm in Maharashtra with Loose housing

2. Start – How to start Dairy Farming

Whereas for all new entrants’ in dairy farming, entrepreneurial dream starts from having a 100 cow farm, it is recommended to start as small as possible    

However starting a farm with 1-2 cows makes no sense at all.  If both the cows get dry in similar timeframe, you’re left with no produce at all.  And it is extremely difficult to maintain milk cycle.

I recommend starting a dairy farm of 5 cows/buffalos.  Now the question will be, which breed to select for starting dairy farming in India ? Some breeds have been discussed here.  

You can buy 5 pregnant animals to start with.  The same can be bought from animal bazaars or from existing dairy farms.

Sponsored:  Get independence day offer on Dairy Course online A to Z of Dairy Farming by Teplu.

Dairy farming online course

3. Run – How to start Dairy Farming

To run a successful dairy farm, you need few basic and fundamental things

• Loose housing
• Cool and dry (floor) shade for animals to rest
• 24 hours clean water availability
• Around the year fodder availability

In loose housing, the animals are free to roam around within boundaries of the dairy farm.   They can drink water as per their requirement. The lactating cows need 4-5 liters of water intake from different sources to produce 1 liter of milk.

The freedom to roam around makes the cows stress free.

Holstein Frisian cows (the black and white cows) or Jersey (the brown cow) need colder environments due to their European origins.  In India crossbreeds are reared, which are more resistant and tolerant of Indian weather. They need shade which has cold shadows which allows them to live stress free. The shade can be provided from high cost cement sheets, iron sheets to low cost shade net, bamboo shade etc. Iron sheets for roofing are popular – a white reflector paint can be used to cool down temperature below the iron sheet roof.

However, the best shade is from Trees within the boundaries of your dairy farm – nothing can match that.  You’ll see cows happily resting most of the time under dry floor of trees.

How To start Dairy Farming in India : Wonderful sight of Cows enjoying cool shade of Natural trees

The other input for milk production is Fodder.  Cows need a mixed ration of Green, Dry fodder and cattle feed along with supplements such as calcium etc.

To maintain a healthy milk production level, green fodder availability is must.  In any country it is difficult to have top quality green fodder such as Maize hence a better option of Silage is recommended. 

Silage is storage of green fodder at the time of harvesting so that it is available for year around.  How to make silage in your own farm ? And what type of silage storage method to use? Our guide on types of silage can help you here.

4. Maintain  (Management) – How to start dairy farming in India

It is relatively easy to start a dairy farm than it is to manage it.  Best practices for profitable dairy farm are often overlooked for other factors.

Dairy farm management techniques come handy.  

Labour cost involved in traditional Indian Dairy farm where most of the time and energy is spent in keeping the floor clean where the cows are tied, cleaning the cows, management of cow dung, supply of drinking water, feeding etc

Loose housing gets rid of all the above shortcomings.  Loose housing also, keeps cows healthy, stress free, dry.  It reduces labour cost. It generates a free by-product in the form of high quality cow dung manure which is heavily sought after by all agriculture farmers.

Silage making if adopted, reduces cost of fodder and ensures high quality green fodder 365 days a year. This results in high quality milk at maintained levels.

How To start Dairy Farming in India: Bag Silage in 1000 KG bag

Keeping your dairy farm clean of bacteria involves adopting bio-security measures such as separate footwear for farms, keeping floor dry all the time, using Calcium Carbonate (Chuna) at entries, using sanitizer.  

This ensures disease free farm for most periods.  

5. Grow – How to start Dairy Farming

No other business produces, production material from production material 😉

A car cannot manufacture another car.

However, in dairy farming a cow gives birth to another cow.

If 40 per cent female calf birth rate is assumed 2 female cows are produced in the first year.  Within five years your farm can grow upto 20 animals with births within your dairy farm itself, without having to buy a single cow from outside.

How to start Dairy Farming : Investment and Income 

High quality cows are available upwards from 80000 INR, however, ensuring you are getting a good quality cow (without any deformity or shortcoming and high yield) is extremely difficult. Just like finding a great second hand car is difficult.

This is a capital intensive business – can be started using 5-10 lakh of initial capital.  Various schemes and subsidy are available through state and central Govt department as well as Nabard.

Banks too can extend you a credit.

Crossbreed cows are known to have given yields of 4000 litres in a milk cycle.  Milk rate in Maharashtra ranges from 20-30 INR per liter depending upon rates of milk powder worldwide.

Assuming 3600 liters per cow per year means 50 liters per day with 5 lactating cows in your farm.   Selling milk at average sale rate of Rs. 20 per liter translates to 1000 INR of revenue every day.

If fodder cost can be maintained at 60% of the output, it gives you good profitability.

Cow dung manure which is sold at Rs. 2-3 for a KG in wholesale is extra income.  If you sell high quality calves produced in your farm – this too can be a source of income.  You can learn about profit loss in dairy farm here

How to Start Dairy farming : Dairy Farming Business Profit Loss Calculator

All said, this business can turn a rosy picture only in the long run where high yielding, high quality cows are produced your farm, and you are able to produce clean high quality, antibiotic free, and with low bacterial count.  

The deal is even better if you are able to market the produce of your farm on your own instead of selling it to organized collection centers.

-Dr Shailesh Madane

If you are sure about starting a new Dairy Farm, you may find Online Dairy Farming course useful.

If you already have a dairy farm running, Download latest version of our app from here for Dairy Farm Management Click here to get started.

Sponsored:  Get independence day offer on Dairy Course online A to Z of Dairy Farming by Teplu.

Dairy farming online course