Dairy farming involves breeding cows, milking them, and selling the milk. Dairy cattle farming is a very profitable business, and many people are making money all over the world by starting dairy milk farming businesses. However, to build a successful, sustainable milk dairy farming business, you require sufficient knowledge of how to efficiently keep the milk cows, good management skills, and a good dairy farming business plan. This article will outline how to start the dairy farming project, and the dairy farming business plan – PDF, Word and Excel.
Dairy farming is a lucrative business, providing income for millions of people, but there are some essential things you need to do before you venture into the dairy milk production business. You have to decide on the size of your dairy farming project i.e. the size of your dairy herd; location of the milk dairy farming business e.g. a dairy farm , and your target market. These choices will be affected by the amount of capital you have, and the size of your target market.
If you do not have a lot of capital, you can always start small and grow your milk dairy farming project overtime. You also need to carry out market research (Who are you going to sell the milk to? At what price?) and write a dairy farming business plan before you start the dairy farm project.
What you need
Land is an important factor when you are starting a dairy farm business. When selecting land for your dairy farm, some important considerations include: availability of quality and consistent water supply, the size of the land, quality of grass and grazing pasture and the soil type is it affects pasture quality. Other factors include availability of already made infrastructure like good road network, milk facilities, dependable electricity, pens, sheds, buildings. Constructing buildings for a dairy farm is expensive, so it would be an advantage if some buildings are already there.
Housing And Equipment For Dairy Farming Business
To be successful in the dairy farming business, it’s important that you provide good and adequate housing for the dairy cows. Housing for dairy cows is required for several reasons: protecting the dairy cattle from adverse weather conditions, confining the milk cows when they are not grazing, and to allow easier management and control of the dairy milk herd. The best dairy design depends on the local climatic conditions, budgetary constraints and availability of bedding materials. When designing housing for the dairy milk herd, take into consideration the need to provide adequate space, feed & water facilities, milking facilities, waste management and livestock handling features.
There are many different structures which can be used for a dairy milk farm, and these include free-stall, tunnels, composite barns, dry lots, tie-stall facilities and dairy sheds. Other dairy milk cow structures include milking parlour, sick/isolation pens, calving boxes, crowding pens, sorting corrals, working chutes & gates, and squeeze gates. However the necessity of the structures depends on the size of the dairy farming business.
The dairy farm also requires good fencing, so as to contain the milk cows and manage their grazing. Dairy farm fencing can be by barbed wire, high tensile smooth wire or electric fencing. Equipment necessary for a cattle dairy farming business include cows drinking equipment, feeding equipment, buckets & pails, milking equipment, storage tanks, milk processing equipment, livestock trailer, and manure spreader. Your dairy farming business plan should take into account the cost of purchasing or renting the land, structures and buying the equipment.
Breeding Stock for Dairy Farming Business
To start a dairy milk production business, you require the dairy breeding stock: bulls (male cattle) and milking cows (female cattle). A dairy farm can also be operated without bulls, by using artificial insemination for breeding the milking cows. The cows should breed every year, as milk production only happens after the cows have given birth to calves. The decision of which dairy breed to use is important, and affects the success of your milk production business.
The breeds you choose will affect the milk production potential of your dairy farming business. Some breeds are better than others at producing good milk quality. The quantity of milk produced also varies depending on the breed of the milk cow. Other characteristics which vary among breeds include breeding age, productive lifespan, adaptation to different environmental conditions & climates, calving ease, feed conversion, diseases resistance, and average birth weight. The most popular breeds used in the the dairy farming business include Holsteins, Jersey, Brown Swiss/Braunvieh, Ayrshire, Guernsey, Dairy Shorthorn among others.
Feed And Nutrition
Success of your dairy milk production business is also affected by the feeding programme which you use. The feeding program of the dairy farming business should ensure that adequate nutrition is provided to both the cows and calves at all growth stages and during all seasons. This should be done while keeping an eye on the feed costs, as they greatly affect profitability of the dairy milk farming business. Dairy cattle need a daily supply of all nutrients required for maintenance and production: milk, meat, growth and pregnancy.Failure to provide adequate feeding for the milk cows and calves results in low milk production, poor reproductive performance, poor growth of the calves and poor disease resistance. These factors all lead to reduced revenues for the dairy milk production business, thus lower profits. Feeding programs of dairy farming are usually based on pasture grazing, in combination with supplementary feed. The supplementary feed for dairy cows include concentrates, hay, corn, fodder, salts & minerals, silage, commercial dairy cow feeds and grains.
Capital for Dairy Farming Business
The amount of capital required for the milk dairy farming business depends on the size of the project. When starting a dairy milk production business, most of the capital goes to acquiring the land, building infrastructure, and buying the dairy cows & bulls. You can get a loan from the bank, or funding from investors, to use as capital to start your dairy farming business. If you plan to raise capital from investors and a loan from the bank, you need a good dairy farming business plan. If you don’t have access to investors and bank loan, you can use your personal savings and start small, and grow your dairy farming business overtime. Dairy cattle farming is very profitable, so if you reinvest the profits you get, you can grow over time. Even if you are not planning to get a loan, you should still get a dairy farming project plan to guide you in starting and operating the business. It is essential for you to have a dairy farming business plan before you venture into the dairy milk production business, so that you know all the costs involved and you make an informed decision.
Market for Dairy Milk
Milk is often regarded as being nature’s most complete food because it provides many of the nutrients which are essential for the growth of the human body. Being an excellent source of protein and having an abundance of vitamins and minerals, particularly calcium, milk can make a positive contribution to the health of a nation.
The market for milk is very huge and is ever increasing, annual milk global demand exceeds 800 million tonnes. Your dairy farming business can sell raw or processed milk. The market for dairy milk includes supplying to milk processors, grocery stores, schools, companies, individual households, organisations etc. It’s important for the dairy farming business plan to include a proper marketing plan to use in your milk dairy farming business.
Pre-Written Dairy Farming Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements
For an in-depth analysis of the dairy farming business, we encourage you to purchase our well-researched and comprehensive dairy farming business plan. We introduced the business plans after discovering that many were venturing into the dairy cattle production business without enough knowledge and understanding of how to run the dairy milk production business, how to keep the dairy cows, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.
The StartupBiz Global dairy business plan will make it easier for you to launch and run your dairy cattle farming business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the milk cows farming business.
Uses of the Dairy Farming Business Plan (PDF, Word And Excel)
The milk cows farm business plan can be used for many purposes including:
- Raising capital from investors/friends/relatives
- Applying for a bank loan
- Start-up guide to launch your milk cows farming business
- As a dairy farming business proposal
- Assessing profitability of the dairy milk production business
- Finding a business partner
- Assessing the initial start-up costs so that you know how much to save
- Manual for current business owners to help in business and strategy formulation
Contents of the Dairy Business Plan (PDF, Word And Excel)
The dairy farming business plan include, but not limited to:
- Industry Analysis
- Marketing Strategy
- Market Analysis
- Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
- Risk Analysis
- SWOT & PEST Analysis
- Operational Requirements (Including technical aspects of how to keep the dairy cattle, feed requirements etc)
- Operational Strategy
- Why some people in dairy farming business fail, so that you can avoid their mistakes
- Ways to raise capital to start your dairy milk farm business
The Pre-written dairy farm business plan package consists of 4 files
- Dairy Farming Business Plan – PDF file (Comprehensive Version – 124 Pages)
- Dairy Cows Farm Business Plan – Editable Word File (Comprehensive Version – 124 Pages)
- Dairy Cattle Farming Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 52 pages)
- Dairy Farming Business Plan Automated Financial Statements – (Editable Excel File)
Our premium Excel financial statements gives you the ability to input the number of dairy cattle you want to work with, the costs which apply to your country e.t.c., and the financial statements will be automatically generated. The Excel template comes with a complete set of financial statements, with prices in US Dollars, which you have to edit, to input the prices in your country’s currency e.g. Shillings, Rupees, Rands, Pesos, Pounds e.t.c . When you download it, you just adjust the figures on the inputs sheet (Required details include the number of dairy cattle, costs of feed, salaries, selling prices of the milk etc). After entering the required details, the excel template will automatically generate all the financial statements (Monthly Cash Flow Projections, Income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization).
Click below to download the Contents Page of the Dairy Farming Business Plan (PDF)
Get the Dairy Farming Business Plan (PDF, Word And Excel)
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