APPROPRIATE BUSINESS PLANNING FOR DAIRY: AN OVERLOOKED FACET
Mamta, Ajay Kumar, Rajneesh Sirohi and Vishakha Gaur
Department of Livestock Production Management, DUVASU, Mathura.
Dairy farming is one of the oldest occupations in human history, but it’s also one of the most challenging industries to run. In addition to animal rearing, it encompasses a variety of commercial domains including animal health, breeding and reproduction, transportation, storage, and management of feed and fodder. These are all specialized fields that need extensive expertise. Many farmers faces monetary losses, and many more often have to close their business doors as a result of ignorance about the abilities needed to become a profitable dairy farmer. There is a need to evaluate some mistakes that dairy farmers ought to steer clear of to ensure that the dairy business is successful.
Many people enter the dairy industry with little or no experience. Many new dairy producers are sometimes unaware that they are working with live animals rather than just equipment. Both a great deal of expertise and patience are needed for dairy farming. Many of the new farmers, who had just acquired the animals, mainly focused on milking without realizing that the cows ought to become pregnant by the fourth or fifth month after calving. The significance of promptly recognizing heat signs (identify the animal’s estrus promptly, one can perform artificial insemination and successfully pregnant it) in dairy animals is something that many farmers tend to neglect. There are several reasons why dairy farming might yield low benefits. Generally these problems are related to animals and are considered as major reasons yet avoid business planning related issues, failing which are the primary reason for failure in the dairy business
Dairy farming is more than keeping animals
There is more to dairy farming than just raising livestock. The major problem with commercial dairy farmers is the lack of proper planning before execution of the project. Dairy farming encompasses much more than just keeping animals. It involves a comprehensive approach that integrates various aspects of agricultural science, economics, technology, and business management. The different approaches and the related actions regarding planning of dairy business are mentioned as follows.
Animal husbandry- includes knowledge about breeding and genetics, health management of animals, providing balanced diets for different categories of animals, Formulating and adjusting rations based on nutritional needs, using supplements and additives as necessary to ensure optimal milk production and animal well-being.
Crop and feed management – Growing and managing crops to produce high-quality forage and silage for the herd. Adopting practices for proper storage and processing of feed to maintain nutritional value and prevent spoilage.
Environmental management- Develop effective waste management systems to recycle manure and reduce pollution. Mainly waste management, sustainable practices regarding adopting practices such as rotational grazing, conservation tillage, and integrated pest management to protect the environment. Water management by ensuring efficient use of water resources for animal hydration, cleaning, and irrigation purposes.
Technology and infrastructure- Enhance farm efficiency through the use of advanced machinery and optimized processes. Judicious use of milking technology using automated milking systems, milk cooling tanks, and quality testing equipment to improve efficiency and product quality. Construction of farm infrastructures and maintenance of barns, milking parlors, feed storage facilities, and waste management systems. Data management by Utilizing farm management software for record-keeping, monitoring animal performance, and making data-driven decisions.
Business and financial management- financial planning Budgeting, financial forecasting, and managing cash flow to ensure economic viability. Cost management by Monitoring and controlling expenses related to feed, labor, veterinary care, and equipment maintenance. Exploring various revenue streams such as milk sales, value-added products, agro-tourism, and renewable energy production. Stay informed about advances in dairy science, technology, and management practices to continuously improve farm operations
Marketing and sales- market research including understanding consumer preferences, market trends, and competition to inform product development and marketing strategies. Branding and promotion, developing a brand identity and marketing campaigns to differentiate products and attract customers. Building positive relationships with the local community, and engaging in outreach and education programs. Promoting ethical practices, animal welfare, and sustainable development
Human resource management- Generate employment opportunities for local communities, contributing to socio-economic development. Provide training and educational opportunities for employees and local farmers to improve dairy farming practices. Share knowledge and best practices with other farmers and the wider agricultural community.
So, to create a comprehensive and effective plan for a dairy project one needs to define the objectives of starting a project, whether to achieve profitability through efficient milk production, value-added dairy products, and diversified income streams. By setting clear and comprehensive objectives, a dairy project can align its operations with its goals, ensuring a focused approach to achieving long-term success and sustainability. First important step is to analyze the feasibility of the project, for which take care of the following-
- Go for market research to assess the demand for dairy products in your target market, including potential customers and competitors.
- Evaluate the availability of essential resources such as water, feed, and labor.
- Understand the legal and regulatory requirements, including permits, licenses, and environmental regulations.
- Prepare a detailed financial plan, including initial investment, operational costs, projected income, and cash flow and funding
- Explore government grants and subsidies for dairy farming. Apply for agricultural loans from banks or financial institutions
- Conduct a cost-benefit analysis to determine the potential profitability of the project.
- Purchase insurance to protect against risks such as disease outbreaks, natural disasters, and market fluctuations
Make the business plan-
- Decide on the scale of the dairy farm (small, medium, large) and the type of products (milk, cheese, yogurt)
- Define the short-term and long-term goals of the dairy project
- Outline the daily operations, including milking schedules, feeding routines, and herd management
- Develop a strategy for marketing your products, including pricing, distribution channels, and promotion.
- Develop contingency plans for emergencies and unexpected events
Site selection – Select the suitable site after considering topography and effective drainage, clear, safe, clean surroundings, avoid foul smell surroundings, soil type, the orientation of the plot, accessibility to the main road, availability of cheaper, regular, plenty, skilled labor, marketing, enough and continuous water supply and electricity supply.
Infrastructure development –While it is important to keep the costs low during the construction of dairy sheds, it is extremely important to use housing designs that reduce the accumulation and stagnation of dairy waste and help increase cleanliness. Accumulation of water, cow dung, and urine in areas where dairy animals rest leads to the spread of various types of diseases such as mastitis which severely reduce the milk production of these animals. Hence choose and design dairy housing using scientific principles that improve hygiene and reduce labour costs. Remember, for different climatic zones different kinds of designs are needed. Construct or renovate barns, milking parlors, feed storage and staff quarters. Set up fencing and prepare pastures for grazing.
Commercial farmers often built enormous barns and purchased a large number of animals all at once. It is quite hard to handle the related issues when one is new to dairy farming and has a big herd. The procurement of animals should have been done in a phased manner to maintain consistent monthly milk yield.
Choose high-yield and disease-resistant dairy breeds. Implement a breeding program to maintain and improve herd quality. Develop a plan for regular health check-ups, vaccinations, and balanced nutrition. Ensure a consistent supply of high-quality feed through own production or reliable suppliers.
Many owners depended on others to take care of the farm who themselves were not very knowledgeable about dairy farming to take care of the venture. Dairy farming requires full-time owners’ attention 24 hours a day. Thus recruit reliable, skilled labor for various farm operations. Provide time to time training to them about modern dairy farming techniques, animal health management, and use of equipment.
It is best to visit the existing farm of the area and note down their innovative ideas. A techno-economic feasibility study for the proposed dairy-farming project is most crucial. Collect relevant and factual information from all available resources plan wisely taking into account various technical parameters considered for preparing the reports and the bank ability to consider return on investment, repayment schedule security aspects, etc. Make Executable Project plans with the help of competent consultants and experienced project managers. The use computer computer-simulated modeling techniques can be explored for project’s techno-economic feasibility.
Planning is a crucial aspect of any dairy project, encompassing everything from the initial conception to ongoing operations. Thorough planning in a dairy project ensures that resources are used efficiently, risks are managed, operations run smoothly, and the project is economically viable and environmentally sustainable. It lays the foundation for long-term success and resilience in the face of challenges.
