Dairy farming entails the raising of cows, the milking of such cows, and the sale of the milk. Dairy cow farming is a lucrative sector, and many people around the world are making money by beginning dairy milk farms. However, adequate knowledge of how to effectively keep milk cows, strong management skills, and a good dairy farming business plan are needed to develop a profitable, sustainable milk dairy farming business.
Related Project: Dairy Farming
Dairy farming is a profitable industry that employs millions of people, but there are a few things you should know before getting into the dairy milk processing business. You must choose the size of your dairy farming project, such as the number of cows in your herd; the location of your milk dairy farming company, such as a dairy farm; and your target market. The amount of money you have and the size of your target market will influence your decisions.
BREEDING STOCK FOR DAIRY FARMING BUSINESS
You’ll need dairy breeding stock, such as bulls (male cattle) and milking cows, to start a dairy milk production company (female cattle). A dairy farm can also be run without bulls if the milking cows are bred using artificial insemination. Since milk development occurs only after the cows have given birth to calves, the cows should be bred every year. The dairy breed you choose has a significant impact on the success of your milk production company.
Your dairy farm’s milk production potential would be determined by the breeds you chose. Few breeds are better at delivering high-quality milk than others. The amount of milk produced is also dependent on the milk cow’s breed. Breeds vary in terms of breeding age, active lifetime, tolerance to diverse environments and climates, calving ease, feed transfer, disease resistance, and average birth weight, among other factors. Holsteins, Jerseys, Brown Swiss/Braunvieh, Ayrshire, Guernsey, and Dairy Shorthorn are among the most common breeds used in the dairy farming industry.
FEED AND NUTRITION
The dairy farming business‘s feeding policy should ensure that sufficient nutrition is given to both cows and calves at all levels of development and throughout the year. This can be achieved while holding an eye on feed prices since they have a significant impact on the dairy milk farming business‘ profitability.
Dairy farming feeding systems are usually dependent on field grazing in tandem with supplemental feed. Concentrates, hay, barley, fodder, salts & minerals, silage, commercial dairy cow foods, and grains are examples of supplemental feed for dairy cows.
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MARKET FOR DAIRY MILK
The global milk industry is enormous and growing; annual milk production exceeds 800 million tonnes. Your dairy farm will sell both raw and refined milk. Dairy milk is sold to milk producers, grocery stores, colleges, businesses, individuals, and organizations, among others. A good marketing strategy for your milk dairy farming company should be included in your dairy farming business plan.
The Indian dairy market was valued at about USD 144.55 billion in 2020, according to a recent study by EMR titled, ‘Indian Dairy Market Report and Forecast 2021-2026.’ Furthermore, over the projected period of 2021-2026, the market is projected to expand at a CAGR of 6%.
NABARD
The National Bank for Agriculture and Rural Development (NABARD) is a financial institution that focuses on agriculture and rural development. Although NABARD is a bank, it only deals directly with customers; instead, it collaborates with other banks and co-operatives to provide services. The central government allocates a portion of the dairy subsidy to NABARD in the annual budget, and NABARD partners with other banks to transfer the funds to farmers.
Dairy Entrepreneurship Development Scheme (DEDS)
DEDS is a government subsidy that encourages dairy farmers to expand. The scheme’s goals are as follows:
- To encourage the establishment of new dairy farms that provide clean milk.
- Encourage the rearing of heifer calves to preserve the healthy breeding stock.
- Bringing institutional improvements to the unorganized sector so that initial milk processing can be done at the village level.
- To improve the consistency of milk and traditional technologies used to process it on a commercial scale.
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