Well, from a hot cup of tea in the morning to a cold ice cream for dessert in the evening, we all consume milk in one form or another. Contributing to 4% of India's GDP, India's dairy industry is one of the country's most suitable potential business options.
So, dairy farming is definitely an idea to consider.
Once you have decided to start your dairy business, here is a detailed and informative guide to starting a dairy business. This guide will save you from any type of apprehension that may arise in your mind regarding the Indian dairy industry. We've covered all the steps in this comprehensive guide for your dairy business.
Here are the steps to start a dairy business:
1 .PHYSICAL PLAN
Before opening a potential business, a dairy business plan should be formulated. A plan could be formulated considering several factors, the most important of which are market requirements. The ultimate goal is to serve consumers, so it is very beneficial to research the target area where you want to set up your dairy business.
Decisive factors include geography, household types, income, local culture, etc. Based on these factors, the following options should be included in your fitness plan:
The type of animals you want to keep such as cows, buffaloes, goats, etc.
Number of animals - 10, 15, 20, etc.
The facilities you want to accommodate: milking facility, wintering facility, housing facility... From morning ice cold to evening dessert, each of us consumes milk in one form or another. is one of the most suitable potential options for doing business in the country.
2. Choose location
Based on the requirements of your physical plan, an ideal location should be selected where all facilities are available at a price that maximizes your profits. The location you choose for your dairy business in India should be in the region, city or state where you want to incorporate your business.
The area of the site must be large enough to accommodate all the facilities. It can be installed in a room that belongs to you or in a room that is rented to you. In the latter case, the clauses of the contract must be respected. Some ideal dairy farms according to various advantages are:
Close to cities: Secure market, reduced transport costs, lower losses, high prices
In rural areas: lower labor and input costs, land for fodder cultivation
An ideal location to start a dairy business is in towns near cities and usually on highways.
3. Plan Investment
After a thorough estimate of the total costs you will need to run your dairy business, you need to create a dairy business plan to organize your finances. Your investment is directly linked to the machines, installations, land and animals you choose.
There are various government programs and private aid that you can use to organize your finances. Here are the investment sources you might consider:
Your own savings
Bank loans
Borrowings from non-institutional assets like relatives
Self-help groups
Subsidies by NABARD/Government
4. Obtain Licensing
Once you have decided on your source of capital, you are ready for registration and licensing. These licenses have a flat fee and can be processed sooner for an additional fee. These licenses are:
Dairy Farm License
Trade License
Shed License
FSSAI License
Company Registration Certificate
Registration with ROC or Registrar of Firms
5. Purchase of Assets
After financing and licensing, the next unique approach to starting a dairy business is to purchase the necessary assets, animals, and machinery. This step is considered essential as it will determine the future of your dairy business in India. This requires important decisions:
Purchase of animals
Decisions about different breeds and classes of animals determine the quality of the milk produced. Here are some of the favorite species of the following animals:
COWS: Cross-bred cows of Zebu and nondescript breeds with exotic breeds like Jersey bulls, Brown Swiss, Holstein Friesian, Sahiwal herds
BUFFALOS:Mehsana, Elite buffaloes, Murrah, Nil-Ravi
6. Purchase of Machinery(Consider us)
The machinery required for your dairy farm is dependent on the size of your dairy farm. The equipment required for your dairy farm is distributed in three broad categories:
Equipments: Bulk Milk Cooler(BMC), Milk Analyzers , Khoya machine , Pasteurisers, homogenisers, tanks, separators, milking machines, Cream Machines, Lab Glassware, Milk Pumps etc
Chemicals: These mainly includes as testing chemical to check any Adulteration in milk as well as fat and SNFs that benefits the consumer.
Milk testing kits(Urea, Salt, Maltos, Sucrose, Detergent etc)
Milk cultures(Used for making curd)
8. Hire employees
The dairy business is labor-intensive work that demands employees and staff for several small and large number of activities.
Technically trained workers in areas like first aid, milking, etc.
Helper workers trained or untrained
Managerial staff like managers, heads
Support staff
Stockmen
Veterinarian
Transport men
9. Marketing
Your survey of starting a dairy business will be incomplete without business marketing. You can create buzz in your business with various potential marketing strategies such as advertisements, branding campaigns, startups, and business proposals. These strategies would make your business a truly successful one.
It cannot therefore be denied that the dairy industry in India could truly be one of the life-changing business opportunities. With a growing fondness for dairy products, the demand for dairy companies would be eternal.
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