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Home»INNOVATION»How To Start a Dairy Farm Business in India
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How To Start a Dairy Farm Business in India

EditorialBy EditorialJuly 1, 2025No Comments6 Mins Read
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How To Start a Dairy Farm Business in India
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Milk became a necessity in every household no matter where you are from India, US, UK, Italy; you just name it. I don’t think we can describe a country’s food culture without mentioning milk in it. When a baby is born for 7 to 8 months, their only diet is milk, be it their mother or cow milk. So today, we are going to talk about the benefits of opening a Dairy Farm in India and all the processes you have to go through to make it a profitable business. To find the secret behind it, you can continue browsing this article.

Why Dairy Farm Business Is A Profitable Business?

  • If a person opens a sweet shop, they need milk in large quantities every day to prepare all the sweets. Because as we know it in India, most of the sweets are prepared from the milk. Especially during the festive seasons, the sweet shop owner needs the triple amount of milk compared to the ordinary day. So if you are opening a Dairy Farm, you can contact the local sweet shop owners in your city and sell your milk in bulk to them.
  • In every home, people need milk daily to prepare their tea, milk and make yogurt, sometimes kheer, paneer, and sweet dishes from it and also prepare malai and ghee. You just name it. Every household milk requirement is different based on how many family members are in their family? So you can start selling milk to the people living in your area or even city if you have a vehicle to reach distant places.
  • The third reason that you should definitely look into opening a Dairy Farm. If there is any Ice Cream factory near you or factories which sell milk in packets and boxes? They are always on the lookout for the people who can sell them good quality milk in large amounts. If you can strike a deal with them, there would be no stopping you to become successful in this business, and because they are factories, they are going to pay you on time.

Business Idea: 15 Small Business Ideas 2020 in Low Investment

Now when we already talked about the benefits of opening a Dairy Farm business, we can move to the next most crucial topic: how are you going to be able to open this business and what you can do to make it successful?

Costs of Opening a Dairy Farm

  • Now, if we talk about the costs of starting a Dairy Farm, essentially, you need at least 4,00,000 to 5,00,000 to open a decent dairy farm, which can bring you a fair amount of money, so you don’t end up drowning in debt. You would need 1,00,000 to 2,00,000 for hay for every month if you got too many cows and Buffalos on your farm. But to purchase these Buffalos and Cows, you need a hefty amount of money.
  • A right breed cow or Buffalo can cost you over 1,00,000, but if you have a limited budget, you could find people who can sell you a cow for 25,000. But make sure you are purchasing a healthy cow or Buffalo, that provides you with a decent quantity of milk daily. You don’t want to end up regretting your purchase. So make sure you check it properly before making the purchase.
  • Now a farm is not complete without workers who are going to milk the cow. You can find workers for your farm at different rates. You can find a person who works at cheap rates every month, like 5000 to 7000. You must keep the workers happy and pay them decently every month, so they are loyal and stay with you for a long time.

Important: Earn by Making Dairy Products, Govt. Will Help Start a Dairy Business

Requirements of a Dairy Farm

  • Now it is never a good idea to jump into a business without knowing anything about it. Am I right? You can end up losing all money instead of earning your livelihood. So it is in your best interest that you visit every single Dairy Farm owner and worker near you and discuss everything you want to find out about the Dairy Farm. Like how you can find a good client? Where can you buy hay from at a reasonable price?
  • What type of breed of cow should you choose for your farm? How much do you need to pay the workers? And the other essential things that you should know about Dairy Farm, how you can open a farm without a good land. Make sure that you have your own land(property) instead of renting a place. It is the best idea to have vehicles to reach distant places to sell your milk.
  • Now, as a first-timer, you can buy 15 to 20 cows at first, so you don’t end up spending a lot of money in the beginning. But as the demand for the milk from your customers grows and your business starts becoming successful, you can increase the number of cows, and maybe in the future, you can keep 100 cows in your farm easily without becoming indebted to someone.

Which Breed of The Cow is Best to Provide You With More Milk?

In India, you can find lots of cows when people start a Dairy Farm business. Here are some of the best cows that you can choose from when beginning your farm:- Sahiwal, Gir, Rathi, Tharparkar, and Red Sindhi. But one of the best cows which every Dairy Farm owner prefers in India to make a tremendous amount of profit is HF (Holstein) cow. It’s a foreign breed cow that can give you from a minimum of 10,000 litres to 30,000 litres of milk per year, and the quality of the milk supplied by this cow is satisfactory and healthy for people. You can buy this cow from 50,000 to 70,000.

Business Idea: 40 Best Agriculture Business Ideas With High Profits at Low Cost

Insurance Policy for Your Farm and Cows

Every person who is entering the business world it is a wise choice to get an Insurance Policy. If you are investigating a massive amount of money in that business? The same goes for the Dairy Farm business. As an owner of Dairy Farm, you should know just like human cattle also get sick, and there some uncertain things happen in life. That’s why the government and banks launched this “Pashu Dhan Bima Yojana Policy.” This policy is going to cover up the cost of Death of a cattle because of a disease, Surgical operation of your cattle, and if terrorist attack acts affected your cattle and also Dairy Farm somehow.

So here were some of the tricks and information for your knowledge. If you are thinking about opening a Dairy Farm? I hope this article was helpful and answered most of your questions related to this topic.

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