Invest in Dairy Business and earn 30% returns Per year

[ezeevivek]

Ah .. great discussion by Manas and Prateek but limited to arguments and some one sided comments by dairyman (Is that Mr. Sant You?).

I am not doing dairy farming but I have researched this field for last more than 1 year and gone through every possible info I could get (online and offline both).

As per my knowledge what Manas said is quite achievable but what Prateek said is more of experienced work, although I feel both are lacking on proper marketing of the product side. I know someone told me in very begining that:

"If You Dont Know The Premium of The Quality of Milk Produced, then Dont Get into This Business"

Both Prateek and Manas selling major part of their dairy milk produced to cooperatives or bulk buyers at 17 to 19 Rs / ltr. If I am correct then Prateek sells some Ghee, Paneer etc but more of towards bulk selling of milk to Parag dairy etc.

In current scenario most of the profits are earned by marketer or middle man rather than producer, earlier I met one person near Jhajjar, Haryana who had around 18 quality HF & Sahiwal cows and producing around 350 lpd. But the most interesting part was he sells that milk at 30 Rs per litre in near by areas directly to consumers, so if you deduct 4 Rs for logistics then still he is getting 26 rs/ltr which is way ahead of what Manas and Prateek is getting.

Value addition is one more aspect where you can improve your profit by almost 25% which includes selling of Ghee, Paneer, Dahi (Curd), Skimmed Milk, Flavoured Milk with proper planning.

Lastly how so ever you are successful and running business for years but still way behind from your partners oversease.

Take an example of Israel - In last 60 years they have converted every single cattle to CB HF ... aka Israely HF producing more than 8000-10000 ltr per lactation and we complain that our climate dont suit HFs.

Same with Brazil, they imported GIR from India around 60 years back and now India is planning to import from them as their GIRs produce more than 8000 ltr per lactation.

Conclusion is - There is lot of hope in this field but proper knowledge and execution required with utmost dedication.

 

[prateekvaish]

Fundamentals of project planning !

Dear Vivek,

The fundamentals of project planning is "Never anticipate any profit but provide against all probable losses". What you say is correct that premium milk marketing has great scope. Efficiency parameters on a dairy farm should be average lactation yield, average intercalving period, calf survival rate, average maturity age of heifers, % of repeat breeders, reduction in average culling rate etc. If a dairy farm is profitable it should be on the minimum selling price of milk. Now, whether to retail milk or not depends on the Annual Business Plan of the Farm. Advantages of retailing milk are :-
1. Higher prices for milk by 25% to 50%.
2. Greater revenues
3. Greater ROI
Constraints in retailing milk are:-
1. Increase in operations like Logistics and retailing.
2. 100% of reatil is not possible because neither the production in a farm is constant nor the demand of consumers.
3. Increasing pressure of demand may add other activities like milk collection.
4. Any surplus will result into processing and thus increase in inventories or say increase the working capital deployed.
Now, The question a dairy farmer has to ask that is the primary task of a dairy farm is to market milk and milk products or to produce milk and make sure that every drop produced is sold, to rear heifers, to develop better breeds, to maintain stock in prime health etc. Accordingly they can write their farm's mission statement. I firmly believe that dairy farming is primarily concerned with breeding of livestock and is much more than Milk and cow dung. Now, I agaim agree with vivek's opinion that every dairy farmer should aim at getting maximum price for quality milk produced at their farm (its so obvious). Now, we have created a new division known as "Food Business" and not only we are processing milk but also ventured into reataurant business. Now, these should be are part of forward vertical integration of business and should be treated as separate SBUs (Stategic business units). The milk from the farm should be passed in the books of these units at a Transfer price and similarly the fodder from the agricultural farm should be written at a transfer price in the books of the dairy farm. It should actually make no difference whether one purchases fodder or grows it because an opportunity cost is always there. Same is the case with milk marketing.

As far as Israel is concerned, they have worked on two things i.e. Genetics and Housing. Genetics were initially imported from Canada and US. Even in India breeders are importing genetics from semax canada and World Wide Sire US. Next step is going to be genome tested semen. As far as housing methods are concerned India can not copy Isreal as they get good beef value after culling and the average productive lifespan in isreal is very less. In India because of laws and religious sentiments cow slaughtering is not possible and hence its advisable to part of with little productivity with longivity. I agree with Vivek that yes, great scope is in dairying and livestock rearing.
i will also request Vivek to start a new thread as this thread was started by Manas for raising funds so lets honor the purpose of Manas.Thanks and regards,
PrateekVice President Operations
Model Dairy Farm Services
Naramau, G.T. Road , Kanpur
Phones :- 09936286478
Email :- prateekvaish@yahoo.com info@modeldairyfarm.com
Visit us on web at Model Dairy Farm

Ah .. great discussion by Manas and Prateek but limited to arguments and some one sided comments by dairyman (Is that Mr. Sant You?).

I am not doing dairy farming but I have researched this field for last more than 1 year and gone through every possible info I could get (online and offline both).

As per my knowledge what Manas said is quite achievable but what Prateek said is more of experienced work, although I feel both are lacking on proper marketing of the product side. I know someone told me in very begining that:

"If You Dont Know The Premium of The Quality of Milk Produced, then Dont Get into This Business"

Both Prateek and Manas selling major part of their dairy milk produced to cooperatives or bulk buyers at 17 to 19 Rs / ltr. If I am correct then Prateek sells some Ghee, Paneer etc but more of towards bulk selling of milk to Parag dairy etc.

In current scenario most of the profits are earned by marketer or middle man rather than producer, earlier I met one person near Jhajjar, Haryana who had around 18 quality HF & Sahiwal cows and producing around 350 lpd. But the most interesting part was he sells that milk at 30 Rs per litre in near by areas directly to consumers, so if you deduct 4 Rs for logistics then still he is getting 26 rs/ltr which is way ahead of what Manas and Prateek is getting.

Value addition is one more aspect where you can improve your profit by almost 25% which includes selling of Ghee, Paneer, Dahi (Curd), Skimmed Milk, Flavoured Milk with proper planning.

Lastly how so ever you are successful and running business for years but still way behind from your partners oversease.

Take an example of Israel - In last 60 years they have converted every single cattle to CB HF ... aka Israely HF producing more than 8000-10000 ltr per lactation and we complain that our climate dont suit HFs.

Same with Brazil, they imported GIR from India around 60 years back and now India is planning to import from them as their GIRs produce more than 8000 ltr per lactation.

Conclusion is - There is lot of hope in this field but proper knowledge and execution required with utmost dedication.

 

[cnsant]

Clarity for Mr. Vivek......

Dear Forever online Internet Expert,

Please note that ( UNLIKE YOU) I am using this site under my own name i.e. cnsant.

I do not discuss DAIRY FARMING as it is not for discussions on net which is why you will not find any comments from me except asking poeple to CALL so as to discuss this Dairy Farming.

I was in Israel last Novemeber & the national average is 12,000 litres per lactation & not 8-10000 as you have given.

Please avoid further comments for you may be always online but I dont have time for the same.

You have my mobile number ; you can give me a miss call if you want to Save MONEY on your calls ( Internet of course is FREE).

I will definitely call you.

With warm regards,

Dr.Chandrakiran Sant
Dairy Advisor
(Cattle Nutrition & Management)

 

[manas reddy]

Thanks

Hi Mohan(Agri lover),

Great to hear from you again, and thanks for the feedback.

As you talked about the security, the dairy farm will be mortgaged against the loan provided by the investors and a mortgage deed will be issued, i have also checked for mortgaging the same property to different creditors, it is possible..

A property can me mortgaged to second, third and subsequent creditors as long as the total loan taken from all creditors does not exceed the market value or perceived value of the property

only difference between the creditors will be that in the event of liquidation the first creditor will hold the lien (i.e. the right to recover the principle), once the 1st creditor is compensated then its the turn of the second creditor to get paid and so on

so who ever is investing first is the most secure, INVEST NOW!!!!!!!

 

[manas reddy]

Vivek's comments

Dear Mr. Vivek,

Your point on higher profitability is true and very much possible, the model that i am working with now is the optimal model for start up business

i have a ready market, regular income, fixed price (we get by monthly payment which is good for working capital) and lower operations, also to be able to sell milk directly to consumers (hotels and homes) you need to have a larger scale of operations which ensures continuous supply and financial capability to guard against late payments and unforeseen risks in production and processing.

once we have a production of 2500 liters/day we will go for direct marketing of milk and allied products which will give an increased profit.

and also as mr. prateek rightly said, Breeding and raising heifers is very profitable if done right.

That is why i have mentioned in one of my earlier posts that there is no business like dairy farming, the more you grow the more opportunities you get to increase the profit margin

 

[manas reddy]

Invest now

We are looking for partners and investors to fuel this growth plan, we have investment options starting from 50,000/- Rupees to a few lakhs, with a guaranteed return of 30% Per Annum, investment of 2,00,000/- Rupees for a period of 3 years will get you returns of 5000/- rupees every month or a total sum of 4,00,000/- Rupees after completion of 3 year term

You will get the returns irrespective of the performance of the business and you don’t have to work, the investment are provided security of the dairy farm and a personal guarantee by the farm owners

 

[manas reddy]

Dairy farm investment

Hi All,

i have sent the information to all who have sent me a private message, waiting to hear back from you, please share your contact details as well for me to contact you

Have a great day!!!

Manas Reddy

 

[ezeevivek]

Ah ....

Ah..... Dr Sant .... once again you showed aggression, I just asked "Is that you?"

What is the problem with you ? If you dont have time then why do you read websites and comment and ask people for consultancy.

NDRI scientists also go to various countries but how capable they are I think Prateek can comment on this. 60 years of operation and what they developed is KF and KS (failed breed).

I know what you did at one farm at Kolhapur, please dont ever call me or comment like this.

Thanks,

Dear Forever online Internet Expert,

Please note that ( UNLIKE YOU) I am using this site under my own name i.e. cnsant.

I do not discuss DAIRY FARMING as it is not for discussions on net which is why you will not find any comments from me except asking poeple to CALL so as to discuss this Dairy Farming.

I was in Israel last Novemeber & the national average is 12,000 litres per lactation & not 8-10000 as you have given.

Please avoid further comments for you may be always online but I dont have time for the same.

You have my mobile number ; you can give me a miss call if you want to Save MONEY on your calls ( Internet of course is FREE).

I will definitely call you.

With warm regards,

Dr.Chandrakiran Sant
Dairy Advisor
(Cattle Nutrition & Management)

 

[ezeevivek]

Thanks dude !!

Thanks dude, I respect your knowledge and achievements, will try to follow what you said...!

Also I sent you a mail from my personal id, I hope you remember me !!

Dear Vivek,

The fundamentals of project planning is "Never anticipate any profit but provide against all probable losses". What you say is correct that premium milk marketing has great scope. Efficiency parameters on a dairy farm should be average lactation yield, average intercalving period, calf survival rate, average maturity age of heifers, % of repeat breeders, reduction in average culling rate etc. If a dairy farm is profitable it should be on the minimum selling price of milk. Now, whether to retail milk or not depends on the Annual Business Plan of the Farm. Advantages of retailing milk are :-
1. Higher prices for milk by 25% to 50%.
2. Greater revenues
3. Greater ROI
Constraints in retailing milk are:-
1. Increase in operations like Logistics and retailing.
2. 100% of reatil is not possible because neither the production in a farm is constant nor the demand of consumers.
3. Increasing pressure of demand may add other activities like milk collection.
4. Any surplus will result into processing and thus increase in inventories or say increase the working capital deployed.
Now, The question a dairy farmer has to ask that is the primary task of a dairy farm is to market milk and milk products or to produce milk and make sure that every drop produced is sold, to rear heifers, to develop better breeds, to maintain stock in prime health etc. Accordingly they can write their farm's mission statement. I firmly believe that dairy farming is primarily concerned with breeding of livestock and is much more than Milk and cow dung. Now, I agaim agree with vivek's opinion that every dairy farmer should aim at getting maximum price for quality milk produced at their farm (its so obvious). Now, we have created a new division known as "Food Business" and not only we are processing milk but also ventured into reataurant business. Now, these should be are part of forward vertical integration of business and should be treated as separate SBUs (Stategic business units). The milk from the farm should be passed in the books of these units at a Transfer price and similarly the fodder from the agricultural farm should be written at a transfer price in the books of the dairy farm. It should actually make no difference whether one purchases fodder or grows it because an opportunity cost is always there. Same is the case with milk marketing.

As far as Israel is concerned, they have worked on two things i.e. Genetics and Housing. Genetics were initially imported from Canada and US. Even in India breeders are importing genetics from semax canada and World Wide Sire US. Next step is going to be genome tested semen. As far as housing methods are concerned India can not copy Isreal as they get good beef value after culling and the average productive lifespan in isreal is very less. In India because of laws and religious sentiments cow slaughtering is not possible and hence its advisable to part of with little productivity with longivity. I agree with Vivek that yes, great scope is in dairying and livestock rearing.
i will also request Vivek to start a new thread as this thread was started by Manas for raising funds so lets honor the purpose of Manas.Thanks and regards,
PrateekVice President Operations
Model Dairy Farm Services
Naramau, G.T. Road , Kanpur
Phones :- 09936286478
Email :- prateekvaish@yahoo.com info@modeldairyfarm.com
Visit us on web at Model Dairy Farm

 

[cnsant]

Ah....

Dear Vivek,

I do have a problem when my name is put ( by YOU) unnecessarily into a thread.

It would have been ideal to avoid any reference to me.

Till today I have never posted any comment on this particular thread thus it was surprising to see your expert (ise which is self proclaimed after one year study on google/NET) comment.

I try to help people coming into dairy business on mutual convenience / agreement only & not otherwise.

However majority of NET savvy people FEEL that everything is free ( as internet is free) which is not possible as " There is no free lunch in the world".

Please do let us know what I did at farm in Kolhapur : its news to me.

You are most welcome to comment.

A wise man does not RUN after the dogs barking at him.

With warm regards,

Dr.Chandrakiran Sant
Dairy Advisor
( Cattle Nutrition & Management)

 

[manas reddy]

Arguments

looks like we are having arguments more than sharing of information

This post is to attract investments no to attract any trouble, please post relevant queries only

 

[manas reddy]

Getting back on track

i am planning to raise Rs.8,00,000/-, in the from of investments (Loans) to purchase 16 HF cows, as mentioned earlier all the infrastructure has already been put up and i need funds to buy the cows only

Click on the link for few more pics

Farm House | Facebook

the security, the dairy farm will be mortgaged against the loan provided by the investors and a mortgage deed will be issued, i have also checked for mortgaging the same property to different creditors, it is possible..

A property can me mortgaged to second, third and subsequent creditors as long as the total loan taken from all creditors does not exceed the market value or perceived value of the property

only difference between the creditors will be that in the event of liquidation the first creditor will hold the lien (i.e. the right to recover the principle), once the 1st creditor is compensated then its the turn of the second creditor to get paid and so on

so who ever is investing first is the most secure, INVEST NOW!!!!!!!

i have a ready market, regular income, fixed price (we get by monthly payment which is good for working capital) and lower operations,

once we have a production of 2500 liters/day we will go for direct marketing of milk and allied products which will give an increased profit.

and also as mr. prateek rightly said, Breeding and raising heifers is very profitable if done right.

Please let me know if you have any queries

 

[rajesira]

hai

hai guys dont try to cheat the poor people i am maintaing dairy farm since 25 years i never got more than 40% as my best in my life

 

[manas reddy]

Clarification

Dear Rajesh,

Please read through the post before commenting, we have discussed this earlier as well.

people have visited the farm and posted the feedback, you can see the photos if you want

before commenting please give me details of the kind(Breed) number and production of each of dairy animals you have at your dairy farm

if you are not making more than 40% profit then, there is a huge scope for improvement, please send me your contact details, i can help you increase the profit in your farm

Manas Reddy

hai guys dont try to cheat the poor people i am maintaing dairy farm since 25 years i never got more than 40% as my best in my life

 

[manas reddy]

Getting back on track

i am planning to raise Rs.8,00,000/-, in the from of investments (Loans) to purchase 16 HF cows, as mentioned earlier all the infrastructure has already been put up and i need funds to buy the cows only

Click on the link for few more pics

Farm House | Facebook

the security, the dairy farm will be mortgaged against the loan provided by the investors and a mortgage deed will be issued, i have also checked for mortgaging the same property to different creditors, it is possible..

A property can me mortgaged to second, third and subsequent creditors as long as the total loan taken from all creditors does not exceed the market value or perceived value of the property

only difference between the creditors will be that in the event of liquidation the first creditor will hold the lien (i.e. the right to recover the principle), once the 1st creditor is compensated then its the turn of the second creditor to get paid and so on

so who ever is investing first is the most secure, INVEST NOW!!!!!!!

i have a ready market, regular income, fixed price (we get by monthly payment which is good for working capital) and lower operations,

once we have a production of 2500 liters/day we will go for direct marketing of milk and allied products which will give an increased profit.

and also as mr. prateek rightly said, Breeding and raising heifers is very profitable if done right.

Please let me know if you have any queries

 

[manas reddy]

Partnership

Hi All,

apart from investment option we are also looking for partners who can be a part of the project, let me know if you are interested

 

[manas reddy]

Weekend

Hi All,

The weekend is around the corner, once again i invite interested parties to visit the farm, to make investment decisions

Manas Reddy

 

[niksnarayana]

Need more info on partnership

Hi
What do you propose in partnership? We started our dairy 6 months back and we are at 200 lts / day at the moment. We plan to increase to 400 lts by July end and if everything goes well then 1000 lts by end of this year.
Our farm is located on Mysore-Ooty road.

Please give more information what you have in mind for partnership.

Nikhil

Hi All,

apart from investment option we are also looking for partners who can be a part of the project, let me know if you are interested

 

[manas reddy]

Mr. Narayana,

Let me briefly explain

our family i.e my brother and parents have been working on this project since few years now, my brother is trained in dairy farming.

over the past year we have invested close to 12 lakhs in the farm from our own savings and put up the infrastructure such as the cow shed 50ft * 33ft for 20 HF cows, storage and accommodation for workers, purchased 2 HP chauf cutter and manual milking machine.

we now have 4 cows at the farm and need 16 more to complete

we have been talking to banks for the past few months however nothing has materialized due to various reasons one of which due to the farm being on the Karnataka and A.P border.

i am looking for loans from investors for which i will pay an interest of 2.5% PM, people can invest in upwards of Rs.50000/-

alternatively i am also open to partnership in the project if some one is ready to invest in upwards of 4lakh.

i am doing this because i don't like to wait for the banks to give a loan, i don't know when it can happen, if i get a loan from the bank i can use it for further expansion or to repay the loans taken in the above discussed arrangement

please send me your contact details as a private message to know more

Have a great day!!!!

Manas Reddy

Hi
What do you propose in partnership? We started our dairy 6 months back and we are at 200 lts / day at the moment. We plan to increase to 400 lts by July end and if everything goes well then 1000 lts by end of this year.
Our farm is located on Mysore-Ooty road.

Please give more information what you have in mind for partnership.

Nikhil

 

[manas reddy]

A new day

I have been getting good response and interest to the post, however we are yet to finalize on investments, people who are genuinely interested in investing please send me a message