4 Things to Keep in Mind, When You Start new Dairy Farm.
Recent days in urban areas and metro cities milk consumer are becoming more and more aware about the quality of milk, frequent news of adulteration in milk have make a major shift in consumer buying behavior. Farm Fresh Milk, Gir Cow Milk, A2 Cow Milk, Desi Cow Milk, Untouched Milk, Cow Milk, Zero bacteria milk are the most used marketing term for selling milk at premium rate.
Looking at lucrative selling rate of milk more and more educated and young generation are getting attracted to start new Dairy farms near by urban area. due to many YouTube channels and other readily available resources its become very easy to start new dairy farms. Even some of the websites provides ready made business plans and easily available financing make the business even more attracted for the people who do not have very hands on experience of Dairy Farming
But that's just the one side of the story. Dairy farming have many odds which no one mention in the any of the Video or ready made business plan.
Following are 4 major points which have to be taken in consideration before starting new dairy farm.
1. Dairy farming is business of 24X7.
Most of the urban young people start dairy farm keeping in mind that its part time business. but they are totally wrong. dairy farming is 24X7 job. Dairy animal need to be fed and milch every day without fail on fixed time. dairy animal does not understand the concept of holiday. even on morning of Diwali or your birthday you have to be at farm to manage daily operation such as milking & feeding. slight change in milking or feeding schedule can disturb the milk production for minimum one week. any change in feeding and milking schedule can result in substantial drop in milk production and it is lot more difficult to bring back milk production to original level.
2. Dealing with live stock.
When we go through the ready made business plan they are mostly represents the financial data or costing and revenue. but not a single business plan mention the assumption they have taken. Dairy farming is business of live stock. If we compare dairy farming with some other business your dairy animal are your machine which converts input feed into milk. but the twits is every animal are having different genetic capability. so there is no guaranty that on same input you will fetch same output from every single animal. so dairy farming business does not have any predictability like other businesses.
3.Affordability of Latest Technology
In India mostly 3 kind of dairy animal available Indigenous cow, Buffalo & Cross breed exotic cows. out of all these three Cross Breed cows are giving best yield of 4500-5000 Lit milk / Lactation on the other side in western country these cross breed cows gives minimum 9000 lit/ Lactation. also due to tropical environmental condition of country these cross breed cows are more prone for various health issue which result in much higher milk production cost.
On the other hand capital expenditure of some must have technological aid are very high, which leads to longer payback period of capital expenditure. this condition becoming bottle neck for bringing economy of scale in Dairy Farming Business.
4 Dependency on Labor
Lack of affordability of large capital expenditure leads Indian dairy farms to have more and more operation managed by labor than technology. which makes this business highly depended on the labors. irregularity of labor due to festival, marriage seasons, & sickness are very common throughout the country, and due these reason daily operation get disturb which leads to losses for new comers.
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