Abstract

DAIRY FIRM:
First it is more stressed that to start the dairy farm, one will be dedicatedly involved to the
business 24/7. On a new starter, it is not necessary to start the dairy farm in commercial scale.
We can start on a small- scale business and it will expand into a large scale. Once we will aware
of INS and OUTS of dairy farming practically, keeping in the view for starting of dairy farm, the
assigned person will be go through as bellow.
1. The assigned person will go through a training programmed from Agricultural university or
training center of animal husbandry department or Krishi Vigyan Kendra or any private trading
dairy consultants.
2. Collectively study of dairy magazines, online dairy blogs and you-tube videos to get the idea of
overall all development and daily to daily developments initiative to the farm on production and
profitability point of view.
3. As the feed or fodder is the main component of dairy farm, the assigned person must have
taken the good knowledge on green fodder cultivation, practice and silage making procedure.
Also, the assigned person will go through the internet, market to know and finding of feasible
and economical fodder solution.
4. 4. The assigned person need to visit some cattle market to observe sell, purchase of best breed,
animal prices and milk yield of animals.
5. The assigned person will undergo a study of good labor management.

LOCATION:
The location need to be consider as perfect as par as because the location is the main backbone of
the project at where each and every thing as per the requirement will be chip for the entrepreneur
and each and every thing will be readily available to the entrepreneur as per requirement. Except
this there need to be good marketing area, the products can be sale without any hinderances and
the regular customer will available easily. Except this for creating infrastructure, the investing
capital need to less as possible as. The investment in infrastructure is the investment in purchase
of land and built the building for starting of the business.

The requirements of dairy farm

A. Land: -

6. 5 Acres of Cultivation land is required for green fodder Crops.

7. 1 Acre of Land is required to set up the office as well as shed.

B. Shed: -

8. 100 Sqft for a cow

9. 50 Sqft for a calf
So, 3000 Sqft for cattle shed and 1500 Sqft for Calf shed.
The shed need to be construct as per hygienic conditions such as keeping in view of Ventilation,
Clement

temperature, Cleaning etc.

C. Water

10. One boarding at cattle shed

11. One boring at fodder cultivation field.

D. Fodder
The assigned will go details with concerned department or specialist for good fodder management
system as it is

directly affect the milk production.

12. Green Fodder

13. Dry Fodder
14. Feed Concentrate

E. Breed Selection

15. Holstein Frisian with Indian Sahiwal.

16. Jersey with Red Sindhi

17. Note: - Artificial insemination plays major role to cross the high yielding breeds.

F. Labor: The assigned person will select the labor in good way and the labor need to be hard working
and

undergo for a training regarding handling of farm activities and growing of Green fodders.

G. Vaccination: The assigned person need to be well known about to control the diseases and protect
the cow/calf heath and need to have a proper vaccination schedule. So, a veterinary doctor will higher
on routine basis.

The average milk yield will be as below per cow.

DAYS MILK YEILD PER DAY (In Ltrs) TOTAL PRODUCTION (In a
year)
0-30 23 690
30-90 26.5 1590
90-150 24 1440
150-210 21.5 1290
210-300 17 1530
Total 6540
Average Ltr. of Milk Per cow 21.8
in a complete year
Capital Requirement:
A Land - Main Capital of Group
5 acres of cultivated land 1500000
1 acre of land for Office and Shed 700000
Total 2200000
( Twenty two lakhs in rupees)
B Capital For Dairy Farm
Animals
Cost of HF cows (@75000 per animal) 2250000
Transportation Charges (@ 3000 per unit) 90000
Insurance (@5% per animal) 112500
Shed and other Infrastructures
Shed (4500 Sq Ft) 500000
Automated Milk Equipment 150000
Water Storage (Including of Boring and motor) 50000
Office (With storage of feed, equipment, labour and 200000
staff)
Generator 60000
Chaff cutter 75000
Electricity 20000
Other Equipments
Aluminum Milk Cans (40 ltrs @ Rs. 2500 each) 50000
Zinc buckets (5), Wheel barrels (2) 20000
Others 20000
Fodder Stock and Cultivation
Green Fodders (5 acres) (Legume & Non-legume) 60000
Straw (15 trucks, @Rs. 8000 per truck) 120000
Total 3777500
Land cost paid to group for 1st year 150000
Total Amount 3927500
(Thirty-Nine Lakhs, Twenty-
seven thousand, five
hundred in rupees)
Year wise Projected Profitability statement
Anticipated Receipts (Rs in Lakhs)

Sl. No. Description Years

1 2 3 4 5
1 Sale of Milk 37.26 49.27 49.27 49.27 49.27
2 Sale of Manure 1 1.6 1.6 1.6 1.6
3 Sale of Proceeds 0.2 2 2 2 2
of Culled
Animals
4 Sale of Surplus 0 2 3 3 3
breedable
females
Total 38.46 54.87 55.87 55.87 55.87
Income
Note:

1.The Sale price of milk is taken Rs. 30/- to cooperate society. But milk can be marketed privately to
hotels, shops etc at Rs 35/- per Ltr.

2. 100% utilization of 1st batch of 15 animals calculated in 1st 6 months and 65% utilization
is calculated for further remaining 6 months of the year with a average of 20 Ltrs. of Milk per day.

3. 75% Percentage utilization ratio of 30 animals is calculated for next 4 years.

4. The hike on sale price and cost price is taken in proportion. So it is constant for 5 years.

5. Even though high quality semen with 90% female cow yield ratio will be used , the sex ratio to be
around 5 to 10%. So 5 nos. of female calves in the 1st year end and 12 nos. of female calves for
remaining 4 years is used for calculation. The female calves will be sold to the promoters after their
pregnant (1.5 years of age) for farm expand purpose.

6. Only a percentage of the female calves are sold. The remaining shall be replaced every year after
the 2nd year to make sure the performance of herd is optimal.
COMPETITOR'S MARKET SHARE:
Sl. no. Company name Share (in %)
1 Kamdhenu 7
2 Nav jeevan 2
3 Prithiviraj 3
4 Amul 3
5 Local 10
6 Omfed 75