Dairy Farming Business

DAIRY FARMING BUSINESS- WHAT IS THE MARKET AND REQUIREMENT FOR ENTREPRENEURS TO INVEST IN THIS BUSINESS?

Investment in a business should be done by going through the whole explanation of the business and knowing all pros and cons of including in it. Otherwise, you might fall in a ditch during investing in the business. So we will give an all-inclusive report on investing in the dairy farming business. Commercial and small scale dairy farming in India is no doubt playing an important role in the total milk production and economy of our country. And almost all regions of India are suitable for setting up a dairy farming business. Most of the dairy farmers in India are raising animals in small scale traditional methods. They are not aware of modern farming methods and improved techniques for dairy farming. As a result, some farmers are losing their investment instead of being benefited. Proper business plan, well management, and care can ensure maximum production and profit from a dairy farming business.

Related Projects:- Milk & Dairy Products

NPCS’s full project report goals to offer you with all the expressive info required. The following are the conclusive points on why to participate in this business:

Benefits of starting dairy farming - Dairy farming business is an old-fashioned good that can easily be sold in almost every habitation of India. And dairy products market is the active whole year. It is eco-friendly and it doesn’t contaminate the atmosphere. Also, it doesn’t require highly expert labor. Great business chances for jobless educated fresh people. Proper preparation and administration can ensure supreme production. Highly useful natural Indian and foreign kinds are proper for farming permitting the climate and atmosphere of India.

INDIAN DAIRY MARKET BREAKUP

Primary Steps - Setting up a dairy farming business in India is not so easy. You have to go through several important steps for setting up dairy farming in India. Consider the following tips while starting a dairy farming business in India.

Choose the goal and objective of your farm contains accommodation, feeding, , amount of animals to be sustained, etc.
Visit some marketable dairy farms and talk over with the knowledgeable farm holders about dairy farming systems and secrets. to examine various farming schemes and extremely extend your knowledge.
Starting a farm at an industrial scale, then try to work inside a present farm for six months.
Analyze the availability of food and its costs. You also have to stock food for opposing seasons.
Hire hardworking labor with some applied experience. Visit your nearest market occasionally and observe the price and demand for live animals and dairy products.
Keeping good condition with market help you for getting the suitable value of your products and purchasing essential supplies.

Feeding - always try their regular food. Because green food helps the animal to produce more milk and helps the creator to reduce nourishing costs. Dairy animals need more water than other animals. Generally, a milk-producing animal requires five liters of water for producing one-liter milk. So, always serve them a sufficient quantity of clean and fresh water.

MILK DEMAND-SUPPLY PROJECTION IN INDIA

S.No.	Year/Period	Supply (In million tonnes)	Demand (In million tonnes)
1.)	2016-2017	162	148
2.)	2017 -2018	194	174
3.)	2018-2019	203	182
4.)	2019-2020	276	246
5.)	2020-2021	289	256

Housing - Good habitat play a substantial role in keeping the animal healthy, sicknesses free and productive Generally 40 square feet inside the hut and 80 square feet open space is compulsory per animal. In small scale manufacture for 20 animals, you have to ensure obtainability of 3000 square feet land area. For medium-scale producers with 100 animals, 15,000 square feet space is required. Essential facilities include proper ventilation, sufficient flow of fresh and clean air, sufficient space, etc.
Management and Current Challenges -. Try to keep the animals free from all categories of cattle diseases. Inoculate them timely. Offer them nutritious food and clean water frequently. Make a standard of essential drugs and other capitals. Dairy product has huge response through India. You can easily sell your goods in almost every residences in our country. High substructure and feeding cost is the main restraint of dairy farming. Most of the farmers don’t serious about the total expenditure and profit from this business. Getting projected milk production to be governed by the proper breeding process. Dairy farming requires careful, proper care, good organization and you have to be attentive always for industrial purpose, you have to employ several practiced people with high pay.

Every business goes with some additional advantages and problems. On average, commercial dairy farming in India is profitable. If you want to start this business, try to learn more about it and visit as many farms as possible.Finally, this is a good sign for the future of our dairy farming. The Government needs to essence on attracting investors. India can prove to be a world power in pending years by coming investment in this sector elegantly.

Related Videos:- Milk & Dairy Products

NPCS’s project consultancy and market investigation fields put frontward the developing opportunity for the dairy farming business at an industrial level.

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Introduction

Project Introduction
Project Objective and Strategy
Concise History of the Product
Properties
BIS (Bureau of Indian Standards) Provision & Specification
Uses & Applications

Market Study and Assessment

Current Indian Market Scenario
Present Market Demand and Supply
Estimated Future Market Demand and Forecast
Statistics of Import & Export
Names & Addresses of Existing Units (Present Players)
Market Opportunity

Raw Material

List of Raw Materials
Properties of Raw Materials
Prescribed Quality of Raw Materials
List of Suppliers and Manufacturers

Personnel (Manpower) Requirements

Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel

Plant and Machinery

List of Plant & Machinery
Miscellaneous Items
Appliances & Equipments
Laboratory Equipments & Accessories
Electrification
Electric Load & Water
Maintenance Cost
Sources of Plant & Machinery (Suppliers and Manufacturers)

Manufacturing Process and Formulations

Detailed Process of Manufacture with Formulation
Packaging Required
Process Flow Sheet Diagram

Infrastructure and Utilities

Project Location
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Built Up Area
Construction Schedule
Plant Layout and Requirement of Utilities

Project at a Glance

Assumptions for Profitability workings	Plant Economics
Production Schedule
Land & Building Factory Land & Building Site Development Expenses
Plant & Machinery Indigenous Machineries Other Machineries (Miscellaneous, Laboratory etc.)
Other Fixed Assets Furniture & Fixtures Pre-operative and Preliminary Expenses Technical Knowhow Provision of Contingencies
Working Capital Requirement Per Month Raw Material Packing Material Lab & ETP Chemical Cost Consumable Store
Overheads Required Per Month And Per Annum Utilities & Overheads (Power, Water and Fuel Expenses etc.) Royalty and Other Charges Selling and Distribution Expenses
Salary and Wages	Turnover Per Annum
Share Capital Equity Capital Preference Share Capital
Annexure 1:: Cost of Project and Means of Finance
Annexure 2:: Profitability and Net Cash Accruals Revenue/Income/Realisation Expenses/Cost of Products/Services/Items Gross Profit Financial Charges Total Cost of Sales Net Profit After Taxes Net Cash Accruals
Annexure 3 :: Assessment of Working Capital requirements Current Assets Gross Working. Capital Current Liabilities Net Working Capital Working Note for Calculation of Work-in-process
Annexure 4 :: Sources and Disposition of Funds
Annexure 5 :: Projected Balance Sheets ROI (Average of Fixed Assets) RONW (Average of Share Capital) ROI (Average of Total Assets)
Annexure 6 :: Profitability ratios D.S.C.R Earnings Per Share (EPS) Debt Equity Ratio
Annexure 7 :: Break-Even Analysis Variable Cost & Expenses Semi-Var./Semi-Fixed Exp. Profit Volume Ratio (PVR) Fixed Expenses / Cost B.E.P
Annexure 8 to 11:: Sensitivity Analysis-Price/Volume Resultant N.P.B.T Resultant D.S.C.R Resultant PV Ratio Resultant DER Resultant ROI Resultant BEP
Annexure 12 :: Shareholding Pattern and Stake Status Equity Capital Preference Share Capital
Annexure 13 :: Quantitative Details-Output/Sales/Stocks Determined Capacity P.A of Products/Services Achievable Efficiency/Yield % of Products/Services/Items Net Usable Load/Capacity of Products/Services/Items Expected Sales/ Revenue/ Income of Products/ Services/ Items
Annexure 14 :: Product wise domestic Sales Realisation	Annexure 15 :: Total Raw Material Cost
Annexure 16 :: Raw Material Cost per unit	Annexure 17 :: Total Lab & ETP Chemical Cost
Annexure 18 :: Consumables, Store etc.,	Annexure 19 :: Packing Material Cost
Annexure 20 :: Packing Material Cost Per Unit	Annexure 21 :: Employees Expenses
Annexure 22 :: Fuel Expenses	Annexure 23 :: Power/Electricity Expenses
Annexure 24 :: Royalty & Other Charges	Annexure 25 :: Repairs & Maintenance Exp.
Annexure 26 :: Other Mfg. Expenses	Annexure 27 :: Administration Expenses
Annexure 28 :: Selling Expenses	Annexure 29 :: Depreciation Charges – as per Books (Total)
Annexure 30 :: Depreciation Charges – as per Books (P & M)	Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)
Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)	Annexure 33 :: Interest and Repayment - Term Loans
Annexure 34 :: Tax on Profits	Annexure 35 ::Projected Pay-Back Period And IRR