- What is Dairy Farming?
In dairy farming, animals like cow, buffalo are raised to produce milk and its products like cheese, curd, butter etc. Milk is an essential food item, so its demand always remains.
- Types of Dairy Farming
Small scale dairy farm: 2-5 animals, family run.
Commercial dairy farm: Large scale, with machines and modern technology.
Mixed farming: Other farming (like crops) along with dairy.
- Why do dairy farming?
Constant demand for milk and milk products.
Subsidies and schemes from the government.
Means of employment and additional income.
Possible in both rural and urban areas.
Better use of resources by synergizing with crop farming.
- Location selection for dairy farm
Availability of water.
Good roads and connectivity for milk supply.
Good source of greenery (fodder).
Mild and comfortable climate.
Veterinary hospital and medicines nearby.
- Breed Selection
Indian breeds: Gir, Sahiwal, Red Sindhi, Tharparkar (good in summer).
Crossbreed: Holstein Friesian (HF), Jersey (high milk yield).
Choose according to your region, like climate and fodder.
- Infrastructure Required
Shed: Ventilated, clean, dry place.
Milking room: Clean place for milking.
Feed store: Place to store fodder.
Water system: Clean water should be available at all times.
Dung management: Making bio-fertilizer from dung.
Equipment: Milking machine (if possible), feed mixer, milk storage tanks.
- Feed and Nutrition
Green fodder: Grass, maize, jowar, bajra.
Dry feed: wheat straw, bran.
Concentrate feed: feed made from grains, fish, oil seeds.
Mineral and vitamin supplements.
Clean water available 24 hours.
Regular and correct amount of feed.
- Breeding and care of calves
Artificial insemination (AI) or natural breeding.
Good care of pregnant cows.
Proper nutrition, hygiene and vaccination of calves.
- Milk production and quality
Daily hygiene.
Washing hands while milking.
Cooling milk immediately.
Prevention of adulteration.
- Marketing and sales
Nearest dairy mill or dairy collection center.
Selling milk directly to the consumer.
Making and selling milk products (cheese, curd, butter).
Branding and packaging.
- Economic Aspects (Cost & Profit)
Initial investment: Animal purchase, shed construction, equipment.
Operational cost: Fodder, medicine, salary, electricity, water.
Profit: More milk and products from good breed, regular care, better management.
Government scheme: Subsidy, loan facility for dairy farms in many states.
- Main challenges and suggestions
Proper arrangement of fodder.
Prevention from animal diseases.
Focus on milk quality.
Adopting new technology (like milking machine, feed mixer).
10 Animals Dairy Farm Business Plan (Full Details)
- Initial Investment
Expense Item Estimated Cost (₹)
Buying 10 healthy cows/buffaloes ₹3,00,000 – ₹7,00,000
Shed Construction ₹3,00,000 – ₹5,00,000
Milking Machine ₹1,00,000 – ₹1,50,000
Milk Cooler/Cooling Tank ₹1,50,000 – ₹3,00,000
Feed Mixer Machine ₹50,000 – ₹1,00,000
Paneer Making Kit ₹20,000 – ₹50,000
Butter and Ghee Making Machine ₹1,00,000 – ₹1,50,000
Other equipment (tankers, containers, water tanks) ₹50,000 – ₹1,00,000
Total initial cost ₹10,70,000 – ₹20,50,000
- Monthly Expenses (Operational Cost)
Item of Expense Estimated Monthly Cost (₹)
Fodder (greenery + dry + concentrate) ₹40,000 – ₹60,000
Medicine, vaccination and veterinary care ₹5,000 – ₹10,000
Labor Salary ₹8,000 – ₹15,000
Electricity, water, other expenses ₹5,000 – ₹8,000
Total Monthly Expenses ₹58,000 – ₹93,000
- Monthly Income
Average milk production per animal = 8-10 litres/day
10 animals total milk production = 80-100 litres/day
Price of milk = ₹50-₹60/litre
Income from milk:
Quantity of milk Price per litre Daily income (₹) Monthly income (₹)
80 litres ₹50 ₹4,000 ₹1,20,000
100 litres ₹60 ₹6,000 ₹1,80,000
Additional income from products (estimate):
Product Monthly production Selling price (₹) Monthly income (₹)
Cottage cheese (10-15 kg) 12 kg ₹400/kg ₹4,800
Curd (50 kg) 50 kg ₹60/kg ₹3,000
Butter/Ghee 5-10 kg ₹800/kg ₹6,000
- Total Monthly Estimated Profit
Monthly Income (Milk + Products) = ₹1,20,000 – ₹1,80,000 + ₹13,800 = approx ₹1,33,800 – ₹1,93,800
Monthly Expenses = ₹58,000 – ₹93,000
Monthly Net Profit = ₹75,000 – ₹1,00,000 (approx)
- Machines and Equipment Required (Details)
Machine/Equipment Used Estimated Cost (₹)
Milking Machine For Extracting Milk ₹1,00,000 – ₹1,50,000
Milk Cooler/Cooling Tank For cooling milk quickly ₹1,50,000 – ₹3,00,000
Feed Mixer Machine For mixing feed ₹50,000 – ₹1,00,000
Paneer Making Kit For making paneer ₹20,000 – ₹50,000
Butter/Ghee Making Machine For making butter and ghee ₹1,00,000 – ₹1,50,000
Tankers and Containers For Milk and Product Storage ₹50,000 – ₹1,00,000
- Key Points of Dairy Farm Business
Take full care of animal health, get vaccination done at the right time.
Always give high quality feed and in right quantity.
Cleanliness is important to maintain the quality of milk.
Sell the products in the market with packing and branding.
Make sure to take advantage of government subsidies and schemes.
Easy recipes and machines used to make dairy products
- Milk
How to store: Immediately after extracting the milk, put it in a cooler/cooling tank so that the milk does not spoil.
Machines required: Milking machine, milk cooler.
- Curd
Ingredients:
Fresh milk: 1 liter
Culture of curd (pre-made curd): 2-3 tablespoons
Method:
- Boil the milk and cool it to 40-45°C.
- Add the curd culture to the milk.
- Keep it in a lukewarm place for 6-8 hours.
- Store in the refrigerator after the curd is set.
Machines:
Heater or stove to heat the milk.
Milk cooler for pasteurization.
- Paneer
Ingredients:
Milk: 5 liters
Lemon juice or vinegar: 100 ml
Method:
- Boil the milk.
- As soon as the milk boils, add lemon juice to it and mix gently.
- The milk will curdle and the water will separate.
- Filter it in a clean cloth and squeeze it.
- Press the paneer under a heavy weight for 1-2 hours.
- Paneer is ready, keep it in the fridge.
Machine:
Paneer making kit (leather filter cloth, press machine).
- Butter
Ingredients:
Cream (milk cream or cream extracted for butter)
Method:
- Put the cream in the butter maker machine.
- The machine separates the butter and whey.
- Wash the butter with water and pack it.
Machine:
Butter maker machine.
- Ghee
Ingredients:
Butter or whey
Method:
- Cook the butter or whey in a large vessel on low flame.
- When the butter melts and the water evaporates and the color changes, then the ghee is ready.
- Cool it and keep it in a clean container.
Machine:
Ghee making machine (if on a large scale).
- Use of machines
Name of machine Use Things to keep in mind
Milking machine Quick and clean milking Keep the animal clean so that it does not get stressed
Milk cooler Quick cooling of milk Keep the temperature between 4-5°C
Feed mixer machine Mixing the fodder Keep the feed nutritious
Paneer making kit Make the process of making paneer simple Add the right amount of acid (lemon/vinegar)
Butter maker machine Make butter Keep the quality of cream good
Ghee making machine Make ghee It is important to cook on low flame
Dairy Products: Ingredients, Packing, and Marketing
- Curd
Ingredients:
Fresh milk: 1 liter
Curd culture: 2-3 tablespoons
Packing:
Plastic or glass containers (100-200 grams)
Labeling: Brand name, date, ingredients, and expiry date
Marketing tips:
Sell to local shops, sweet shops, and online home delivery.
Tell the benefits of fresh and homemade curd on social media.
- Paneer
Ingredients:
Milk: 5 liters
Lemon juice or vinegar: 100 ml
Packing:
Vacuum packing or plastic box (250 grams to 1 kg)
Store in refrigerator to keep fresh
Marketing tips:
Supply to hotels, restaurants, and supermarkets.
Share paneer recipes and health benefits on social media.
- Butter
Ingredients:
Cream
Packing:
Vacuum packing or small containers (100-500 grams)
Store in the fridge and label
Marketing tips:
Sell to local bakeries, home cooks, and shops.
Emphasis on taste and purity.
- Ghee
Ingredients:
Butter or whey
Packing:
Glass bottles or tin containers (250 grams, 500 grams, 1 kg)
Good labeling and packing is a must
Marketing tips:
Explain the benefits of Ayurvedic and pure ghee.
Sell in the local market as well as on online platforms.
- Marketing and sales tips
Build a brand: Create a good name and logo.
Promote on social media: Be active on Facebook, Instagram, WhatsApp groups.
Focus on quality: Maintain the freshness and taste of the product.
Check the competition: Study the local and online market.
Direct sales and home delivery: Reach the consumer directly.
Take advantage of government schemes: Participate in farmer fairs, exhibitions.
Complete packing and marketing plan for dairy products
- Packing Details
Product Packing Material Packing Size Packing Tips
Milk Plastic pack, tetra pack 500 ml, 1 liter Store in the refrigerator, clean packing is a must
Curd Plastic or glass container 100 gm, 200 gm Well sealed packing, label
Cheese Vacuum pack, plastic box 250 gm, 500 gm, 1 kg Keep in the refrigerator, vacuum packing maintains freshness
Butter Small container or vacuum pack 100 gm, 250 gm Keep cold, pack in clean container
Ghee Glass bottles, tin container 250 gm, 500 gm, 1 kg Good labeling is a must, store in an airtight container
- Labeling Must-Haves
Product name
Production date
Expiry date
List of ingredients
Manufacturer’s name and address
Use-by date Method (if necessary)
Store method
- Marketing Strategy
3.1 Local Marketing
Supply dairy products to local grocery, milk shops, and vegetable market.
Make local sweets and restaurants customers too.
Start home delivery service.
3.2 Digital Marketing
Create pages on social media platforms like Facebook, Instagram, WhatsApp.
Share fresh pictures and videos of the products.
Tell health benefits and recipes.
Make arrangements to take orders online.
3.3 Promotions and Offers
Offer discounts for the first 1-2 months.
Keep referral or cashback offers.
Give special packing and offers on festivals.
- Sales Channels
Channel Benefits
Local grocery and milk shops Quick access to customers, low transport cost
Restaurants and sweet shops High volume orders, regular customers
Online marketplace High reach, brand building
Home delivery Customer convenience, direct feedback
- Estimated Monthly Revenue
Suppose 80 liters of milk is obtained daily from 10 animals.
Around ₹1,50,000 – ₹2,00,000 monthly income from sale of milk and products.
This can be increased with marketing and good packaging.
- Some important suggestions
Quality is the most important – pay special attention to the freshness and cleanliness of milk and products.
Take feedback from customers and keep improving.
Try new products like flavored curd or masala butter.
Take advantage of government schemes, like Pradhan Mantri Dairy Yojana.
