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vikashanandjha

Contributor
Sukhpur
Bihar
India

  Joined: Dec 24, 2009
  Posts: 9
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How to make dairy farming business profitable?
   
Dear Sir,

My question is - How to make dairy farming business profitable?

I understand that I must take training on dairy farming before starting the business. But before taking training I want to calculate the profitability of the business. First of all I want to calculate the feeding cost of Murrah buffalo. I have gathered some information over internet. According to these information the feeding cost of Murrah buffalo will be as follow :

In Lactation (300 days):-

Cereal fodder – 30 kg X Rs-3.00/- per kg X 300 = 27,000 /-
Legume -10 kg X Rs-4.50 /- per kg X 300 = 13,500/-
Dry fodder -7 kg X Rs- 5.00/- per kg X 300 = 10,500/-
Concentrate -12 kg X Rs- 12.00/- per kg X 300 = 43,200/-
Mineral mixture – 0.075 kg X Rs-100.00/- per kg X 300 = 2,250/-
Total --- 96,450/-

Dry Period: (150 days)-

Cereal fodder –30 kg X Rs-3.00/- per kg X 150 = 13,500/-
Legume - 10 kg X Rs-4.50/- per kg X 150 = 6,750/-
Dry fodder - 7 kg X Rs- 5.00/- per kg X 150 = 5,250/-
Concentrate -3.5 kg X Rs- 12.00/- per kg X 150 = 6,300/-
Mineral mixture – 0.050 kg X Rs-100.00/- per kg X 150 = 750/-
Total --- 32,550/-

Total feeding cost during one cycle = 96,450/- + 32,550/- = 129,000/-

Murrah buffalo gives at an average 2000 ltrs. milk in one lactation. So even if i can mange to sell milk at Rs-30.00/- per ltr. the income will be = 2000 X 30.00 = 60,000/-

Other incomes (sell of dung and sell of male calf) are much less then other expanses (labour, electricity, water, transportation, veterinary, feeding cost of calf up to 3 years of age etc.).

If the above information is not reliable please provide me the current reliable information and also provide approximate cost of feeding the calf till 3 years of age from the date of birth.

Waiting for your positive response.

With best regards
Vikash Anand Jha.




[Feb 9, 2010 10:33:39 PM] Print Post Report threaten post: please login first  Go to top 

baramati

Certifed Expert
Baramati, Pune Dist
Maharashtra
India

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  Expert Name: Dr. D.P.Bhoite
Phone Number: 02112-255207


Re: How to make dairy farming business profitable?
   

See you have gathered information on internet,so now try to get information (Practical & from local source ) from different buffalo dairy farmers in Supaul districts for the same economics.For this you need to do actual survey in field.Also it is well known that profitability in dairy farming decreases when managament is poor,feed & fodder totally purchased from outside & if milk is sold for collection centres with less price or it sold without value addition.
The figures like dry fodder cost Rs- 5.00 is too much (In our area it is Rs.3.00/-).The dose for concentrate is 500 gm (Formulation) for 1 litre so you have mentioned 12 kg for 24 litres ( It is not correct ).Maximum mlk production for murrah is 12 to 18 litres .Production cost for green legume & ceral is Re- 0.60 & re- 1.30 in our farm so it is then not physiable to do dairy farming on totally purchased green fodders having higher costs.So once again think on these aspects ,do survey for good running & failed buffalo farm & get the data for analysis.

 

[Above information is based on recommendations from National Agriculture Research System. The Effectiveness of the recommendations varies from place to place with changes in natural resource and climate. Farmers are advised to use the information on their own responsibility. KVK Baramati shall not be responsible for any consequences.]
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[Edit 1 times, last edit by baramati at Feb 16, 2010 5:33:14 PM]
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vikashanandjha

Contributor
Sukhpur
Bihar
India

  Joined: Dec 24, 2009
  Posts: 9
  Status: Offline


Re: How to make dairy farming business profitable?
   

Dear Sir,

Any information regarding feed formulation for calf up to age of three years and average cost of feeding.

I also want to know : how to start milk collection centre (If possible in detail)?

With best regards

Vikash Anand Jha.


[Feb 16, 2010 5:53:26 PM] Print Post Report threaten post: please login first  Go to top 

baramati

Certifed Expert
Baramati, Pune Dist
Maharashtra
India

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  Joined: Dec 1, 2003
  Posts: 15643
  Status: Offline

  Expert Name: Dr. D.P.Bhoite
Phone Number: 02112-255207


Re: How to make dairy farming business profitable?
   

The cost of rearing animals may differ from region to region as well as market situation (Location specific).The crossbred heifer requires 300 litre sof milk in initial period of three month,120 kg of Calf starter for six months,green fodder average 10 kg per day & concentrate 1.5 kg per day as well as mineral mixture 50 gms per day so it is better to do calculation by your own by filling location specific prices for each component including labour & maintenance charges for calf rearing in your area.
For milk collection centres ,you may see following link-
http://www.nabard.org/modelbankprojects/animal_milkcollect.asp
or
http://www.nabard.org/modelbankprojects/animal_bulkmilk.asp

[Above information is based on recommendations from National Agriculture Research System. The Effectiveness of the recommendations varies from place to place with changes in natural resource and climate. Farmers are advised to use the information on their own responsibility. KVK Baramati shall not be responsible for any consequences.]
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[Edit 1 times, last edit by baramati at Feb 22, 2010 11:55:56 AM]
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saugatlahiri

Contributor
varasnai
Uttar Pradesh
India

  Joined: Dec 4, 2010
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Re: How to make dairy farming business profitable?
   
sir,
i want to start my dairy business in varanasi.i also as i get any financial support from govt.& bank as i am a agriculture graduate.
[Dec 4, 2010 5:29:01 PM] Print Post Report threaten post: please login first  Go to top 

baramati

Certifed Expert
Baramati, Pune Dist
Maharashtra
India

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  Joined: Dec 1, 2003
  Posts: 15643
  Status: Offline

  Expert Name: Dr. D.P.Bhoite
Phone Number: 02112-255207


Re: How to make dairy farming business profitable?
   
To know profitability of dairy farm,first you may better to go through following points :-
Whichever is the business, want to become profitable needs following things (Dairy point of view):-
1)Quality animals:- Animals which can sustain in perticular climatic conditions & having proper dairy character needed for dairy business.Eg- In Konkan region, there is high rainfall in rainy season and drought situation on summer season.so the kind of animals which are suitable for this region may be Jersey cows,Surti & Mehsana buffaloes.
2)Management- As the production of animal is increases according to high quality animals demand for good quality fodder,concentrate,water,housing and care is needed more .If this is not fulfilled ,then dairy owner can have a loss in terms of less milk production as well as economic losses.So it is necessary for dairy owner to access his strength for providing this kind of facilities for its animals.So for that if dairy owner has good kind of knowledge (By training & practice)and will to do whatever work in his dairy farm,then he can be profitable dairy farmer.As per my knowledge this is 24 hours business & it can not be as supervisor's job.
3)Facilities:- Whatever facilities required for dairy like availability of farm land,availability of fodder throughout the year,availability of veterinarian,skill for first aid treatment,skill for feed formulation is important for dairy farmer.Dairy owner must provide minimum kind of facilities which are needed for his animals.
4)Market- Before producing milk or other dairy product,it is better to search what are market opprtunities in your area.See if there is no any dairy farm functioning in your srea what are the resions behind it?If there is no any farmer who dare to take this entreprice then it is opportunity to you set up good quality of dairy farm.If market is not there ,try to create your own market by creating demand for your product in the market.
5)Value addition- In business of dairy farming,it is better to not to rely on only one entreprise or product eg- Milk,If you do value addition in milk to prepare Khoa,Shrikhand,basundi etc.,You will get more money,If you do value addition in cowdung by preparing vermicompost you will get more money .
So think on this aspect, Do personal visits for survey the area,try to find out market as well as study market chains developed in that perticular area.Then make decision for dairy farming .
6)To be updated- For dairy owner it is necessary to aware about new practices & changes in dairy farming.So for that he must take training before starting the dairy or any animals related enterprise & after that timely necessary trainings to become updated .New practices,trends & changes in management will be helpfult to reduce the losses & improve production of animals.He must be adaptive & positive in nature & willing to take responcibilities or change as & when needed.
7) Keep records- Some farmers which do not have land but are successfully run dairy business because they keep records for feed,fodder,Milk production,Reproduction,health & management aspects.In which they can get ideas as well as point our problematic points or situatuation to avaiod losses.Today,many dairy farmers are not keeping records as like businessman,so they do know what is the status of the dairy they are running now.
On the above points,you may decide number of animals to be kept for dairy farming which can run sucessfully.Alos visit to nearest dairy farmsrs which are running their farms very well & then share the ideas with them for runing successful dairy farm.
………………………………………………………………………………………….
Being an AGriculture graduate,you should first approach to local barnaches of Nationalised & cooperative banks which offers loan for dairy farming.
Also possibly take training on Agricliics & Agribusiness for 2 months duration in your state.For this you may approach to local agriculture universities in your state.
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[Above information is based on recommendations from National Agriculture Research System. The Effectiveness of the recommendations varies from place to place with changes in natural resource and climate. Farmers are advised to use the information on their own responsibility. KVK Baramati shall not be responsible for any consequences.]
[Dec 16, 2010 10:46:21 AM] Print Post    Weather Info Report threaten post: please login first  Go to top 

baramati

Certifed Expert
Baramati, Pune Dist
Maharashtra
India

Member's Photo

  Joined: Dec 1, 2003
  Posts: 15643
  Status: Offline

  Expert Name: Dr. D.P.Bhoite
Phone Number: 02112-255207


Re: How to make dairy farming business profitable?
   
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