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Investment in dairy farming depends on the number of adult cows we would like to have on-farm. A rough calculation is around Rs. 1,00,000 to 2,00,000 per adult cow is required to set up a dairy farm. This includes cow cost, equipment cost, and infrastructure cost. This is excluding land costs.
Dairy farming is a land-intensive business that requires around 600 to 800 sq.ft. of land per adult cow. This includes space require for housing, feed storage, roads, milk room, and office.
Ideally it is suggested to start a dairy farm with 3-5 cows & then expand from their based on your revenue & business model
Given the slightly higher investment required & other variables of the region like labor costs, distance from market, mode of transportation & competition, profit margins for dairy farming vary are from 14% to 37%. This includes the cost of setup & front-end management.
Subsidies available for small-scale dairy farming is around 25% to 33%. You can learn more about the same from this link.
In terms of licensing – FSSAI Registration is a basic license required for all small-scale dairy farmers having 500 liters of milk per day.
Clean unadulterated liquid milk, Homemade ghee, Paneer, A2 liquid milk, vermicompost, Jeevamrut, PROAM etc are various commercial products that can be generated from dairy farms opening up more sources of revenues for farmers.
Cattle dairy farming,
Milk processing and milk product manufacturing,
Organic manure production etc are various agri-business a dairy farmer can venture into while maintaining a diversified source of income.