After deatiled study on theroy & practicals in the filed of Dairy Farm, I could say that many times commercial dairy farming is not profitable bcoz (1)cost of cattle yielding 10L (including transportation) is more than 55000.(2)for every 10 animals u need one manpower costing morethan 5000/month (3) Feeding cost per month during yielding period is more than 2200 per month per cattle & it is around 1400-1500 during dry period.(4)you must have your own market, where you should sell 1L milk for >Rs30. (5) Average milk of all yielding cattles should not be less than 9L per day, which is very difficult to achieve.
You can calculate profit by considering all the above facts along with Initial investment & its EMI per month, water & Electricity & mis.expenses & medical expenses & unpredictable expenses.
Dont be too optimistic...dont forget you are investing lakhs of rupees
If you can seel 1L milk for more than Rs.32, you can start .....otherwise need to think a lot.
Dairy Farming is a business in which most attention has to be given on Feeding & Management. This particular aspect has been overlooked & neglected by most of the people entering into Dairy Business.
Unfortunately most of the people as well as consultants (of course, more than 99.99% are from Dairy Processing side & others : Theoretical experts from reading on google.com) place too much importance on climate, housing & shed construction.
It should be noted by entrepreneurs that hardly one in million Dairy farmers use computers & as such no realistic information on ( Indian) Dairy farming is available on NET nor the subject can be discussed on mails.
Lets understand the simple basics:
* No business breaks even in 1st year. It usually takes 4-5 years. However in dairy farming we can start earning from Day one since we always buy cows in milking.
* The approximate investment for 100 cow farm is around 1 Lac per animal (amounting to 1 CRORE) which can roughly be divided into cost of animal, cost of construction & cost of Machinery. It has to be kept in mind that this cost is Only ONCE & gets depreciated over a period to ZERO.
* The major cost then is daily recurring cost of (balanced) Feed & labour that too labour cost is fixed for ONE year at least. However the cost of feeding changes daily depending upon the ingredients used.
* Today this (Feeding & labour) cost will not exceed Rs. 20,000/- per day in any part of India. At the same time this 100 cow farm will yield minimum 1000 litres per day which can easily be sold @ Rs. 25,000/- giving us a clear profit of Rs. 5000/- per day not to mention the cow dung which will be minimum 1500 kgs & is being sold @ Re. 1/- per Kg. (The milk can be sold easily for Rs. 25/- as it is with high fat & not TONED down )
This clearly shows a 100 cow farm will fetch Rs. 6,500/- per day which is more than 23 lacs per year.
With good manufacturing practices & a Standard Operating Procedure we can easily reduce the daily costs of Feeding by Rs. 2 - 4000/- which can give us additional profit of minimum 7 Lacs per year.
Please feel free to call me ANYTIME to discuss this in detail.
Explaining is much easier than writing. No mails please.
Cattle Nutrition & Management
Iam so impressed with your realistic figures analysed using practical experience.
yes, feeding procedures, monitoring of day to day business & value additions like vermi compost.. yields profits to commericail dairyfarms.
all of you requested to share practical experience to encourge newcomers.
I do agree with you what actually you have said. Recently, I have visited to one of the dairys near London and it is really amazing. It is 80% managed by the machineries and other latest equipments and I must say that it is well organised. Apparently, an average yield of milk is between 26-28 litres /day /cow. The most of the cows are Jersey and Holstein Friesian breed.
I was bit surprised that, why do we get an average 10 litres/day/cow in India? Although we have got the same bread like Jersey and Holstein Friesian in India! Is it because of our climatic conditions, is there any way that we can increase the yield of milk to at least 15 litres /day /cow ? Possibly by having a good fodder management?
From the following web page: indg.in/agriculture/animalhusbandary/breeds-of-cattle-and-their-selection#anc8
It indicates that the on an average for above breed cows gives 25 litres of milk per day, is that true?
I believe that if we work hard to get more yield by keeping cows healthy and improving the fodder management of each cow. I am right?
I am planning to establish a dairy in near future. I do welcome any comments and advice form you all experts.
Last edited by kirankumar123; August 30th, 2011 at 05:46 PM.
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Please note that in a 100 animal farm all the animals are not milking & the cycle is maintained in such a way that around 60% of the animals are always milking.
As a result you will have a a continuous & constant supply of milk for sale.
The animals in this case are giving around 15-20 litres of milk on an average & as such the calculation shows 1000 litres /day.
For a newcomer it is always wiser to start with a low yielding animal as he is not experienced however he can gradually increase the average milk yield.
( Or it will be like a fellow who does not even know how to drive a car PROPERLY wants to enter the RACE with a Ferrari & inends to Win too).
Once again I will request you all to please do call me ANYTIME ( 24 X 7 ) so that I can explain dairy farming in precise details very easily & sytematically. You may find my number on linkedin or any of the Replies in Blogs.
Dairy farming is not at a subject to be discussed on Mails.
Thanks again for your advice. I like that example of a Learner driver going to F1 Race!
I would like to say that, if there was no profit in this business why would people still having large dairies and how come we Indians are the number one milk producers in the world! However, donít forget that many of us still drink white tea and coffee every day..
I am fully convinced that profit can be made by experience and hard work.
This forum is meant for sharing useful rational information.
It is glad to hear that you are starting dairyfarm with 1000 cows, but how can you expect Project Report just like that to submit to partner. even if somebody send to you will you rely completly on that report. people going for such a very voluminous project never expect report from websites, they directly hire one consultant, sorry it should be consultancy.
I would like to add few about fodder
if you are really interested dairy farming ,plse try to grow green fodder eg. Napier grass,Subabul high density planting,maize, dual purpose sorghum etc,
Go for enriched biocomposting of cow dung (biofertilizers`+ Selected nutrients) can make cowdung to good quality organic fertilizer- cost will be around Rs.4-5/kg.
Cow urine can be distilled and fermented with medicinal plants can make good quality growth promotor
For distillation and fuel can be generated with the help of bio gas.
If any agri wastes like press mud is there go for large scale vermicompost units etc
I tried these system in middle east for company farm and in Idukki,kerala with small farmers. From that cow dung is costlier than milk.
D.S.Sureshkumar,MSc(Ag.Biotech),PGDBM,PhD Scholar (Biotech)
Biofarms R & D Center,Idukki,Kerala