dairy farm business plan in bangladesh pdf

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Dairy Farming In Bangladesh – Business Plan

Table of contents, advantages of dairy farming in bangladesh, objectives of dairy farming in bangladesh, steps to start dairy farming in bangladesh, recommendations for successful operation of dairy farming in bangladesh, breeds for dairy farming in bangladesh, types of dairy farms in bangladesh, feed requirement for dairy farming in bangladesh, the nutritional contribution of dairy milk in bangladesh, potential for dairy industry development in bangladesh, policies for dairy production in bangladesh, lack of disease/parasites control in dairy farming in bangladesh, milk yields and milk production per capita in bangladesh.

Dairy Farming in Bangladesh

Dairy farming business is a profitable business that mainly focused on producing milk. Dairy development in developing countries has played a main role in increasing milk production, generating employment opportunities, improving income level in rural areas, and improving the nutritional standards of the people, especially for small and marginal farmers. Dairy farming contributes 18.6% of the agricultural GDP and 2.41% of the national GDP, and it excludes the livelihood contributions of the dairy farmers in the country. Dairy farming is the only industry where income is ensured each month.

In Bangladesh, dairy is the important livestock product produced by smallholder crop-livestock farmers where most of the rural household keeps a cow to cultivate and also to produce milk for family consumption. The dairy cow plays an important role in maintaining the strong agricultural economy of Bangladesh. The district of Sirajganj is one of the major milk-producing districts in Bangladesh.

A Step-by-Step Guide to Dairy Farming In Bangladesh , and Business Plan

Dairying in Bangladesh is a good source of income for small and marginal farmers. The dairy feeds required for milk production can be met from their limited land resources as most of the milch animals are ruminants and the majority of their food can be derived from forages, coarse roughages, and byproducts not utilized by human beings, without incurring much additional cost. Dairy animals, comprising cows and buffaloes, are the major livestock and hold an important place in the national economy of Bangladesh. Apart from their role in milk production, they contribute a huge quantity of organic manure and it is one of the major inputs in Bangladesh agriculture.

• The initial investment in the dairy farming business in Bangladesh is low in comparison to other Industries.
• It is an environment-friendly business.
• The milk product demand is increasing rapidly.
• The milk demand has always increased. Consumption of dairy products is on the rise by vegetarians and non-vegetarians.
• Compared to products from other industries, milk marketing is very easy. There is no requirement for special shops and expenses of marketing are also low for any dairy products.
• The dairy farming business is the only industry where income is guaranteed every month.

Starting a dairy farming business is one of the best business ideas in Bangladesh. To start a dairy farming business in Bangladesh you need to employ a big amount of money, and labor, etc., and manage them efficiently. Also, you will have to deal with keeping the cattle healthy because there is a risk of diseases. Normally, dairy in the country is practiced as a part of a crop-livestock farming system with 1 or 2 cows. The average milk production in Bangladesh is less because of the low productivity of dairy animals, and lack of proper care.

In case if you miss this: Tilapia Fish Farming In Tanks .

In the Mymensingh district in Bangladesh, small and large-scale dairy farms have been increasing day by day. Especially low-income group of people has taken this dairy farming as a profitable business. To establish a plan for dairy development in this region, it is essential to know details about the management practices and performances of different types of dairy breeds in Bangladesh. Thus it requires the following objectives;

i) To estimate the existing status regarding breeding, feeding, housing, milking, milk marketing, and management aspects of small dairy farms.

ii) Also, to compare the productive and reproductive performances of crossbred and indigenous cows reared in small dairy farms.

iii) To find the costs and returns of small dairy farms.

The economics of dairying can be made more profitable business by improving the productivity of dairy cows. The development of this sub-sector can be considered as an important strategy for poverty alleviation which is a main objective of the Government.

Step 1) Research dairy breeds – The common dairy animals are cows, goats (good for a small farm), or water buffalo. Each one has many dairy breeds, and local knowledge is the best way to choose between them. Contact government institutions, and established dairy farms and ask for information to help you make the decision;

• Rule outbreeds that can’t thrive in your climate conditions.
• For each dairy breed, divide annual upkeep cost by annual milk production to find production cost per unit of milk.
• Is there local demand for the milk breed’s based on species
• How much time and money does the dairy farming business take to raise

Step 2) Business Plan and SWOT Analysis (strengths, weaknesses, opportunities, and threats)

To start a dairy farming business in Bangladesh, keep in mind that it’s a business like other businesses. That’s why you must develop a detailed dairy business plan along with a SWOT analysis are crucial for you. It will help you set reasonable expectations for your expenses and production cost; your business plan includes a cash flow plan. So, any kind of business must write a dairy business plan. It comes with almost all the things that your dairy business need, such as;

• Potential management system
• Human resources
• Potential market

Step 3) Consult the Experts

It’s important to consult experts in the dairy business plan and the great resources are the other dairy producers. That’s why attending open houses on dairy farms not only in your area but other parts of the country. Also, you should talk to veterinarians, nutritionists, extension educators, and others that can provide different perspectives on the management of dairy apart from the farmers.

Step 4) Cropping and Feeding Program

Dairy cattle need certain nutrients to support themselves, produce milk, and grow a calf whether you are going to feed a TMR (total mixed ration), graze your cattle, or some combination of both. If these dairy animals are to be raised on the farms then work with a nutritionist to develop rations. As you get started with the dairy business and are building capital, you need to hire laborers to harvest. Then, that makes arrangements with neighbors to share equipment and labor to reduce investment. This is a necessary step for the dairy farming business in Bangladesh.

Step 5) Waste Management Plan

If you’re in the dairy farming business in Bangladesh there will come out a lot of manure. It can be a great resource on the farm is managed and then used properly while this manure is referred to as waste. It will not only allow you to produce more feed but will also allow you to apply more manure to land if you can use a double-cropping system on your farm. Among the alternatives to the direct land application of manure are composting and anaerobic digestion. They will increase the capital investment required to get your dairy started while these options may provide additional revenue and other benefits to your diary.

Step 6) Investment

A dairy farming business requires a large investment. Buying an existing dairy farm makes the business simpler, and also saves money if you’re willing to do some repairs yourself. Whether you plan to buy or start it all yourself, makes sure you’ll have the below facilities;

• Dry, sunny sheds protected from weather and temperature changes
• Milking parlor with stanchions
• Feed storage and manure storage
• Separate living space for calves
• Equipment (including tractors) and equipment storage area
• Well for watering cattle, and also water transport system to tanks in the pasture
• Irrigation system for pasture

Step 7) Market Research

Before starting your dairy farming business in Bangladesh this is one of the important tasks you should do. You should perform thorough research on the potential market so that you can understand the position. You’ll be able to know aftermarket research;

• How much milk it will demand in the future
• You’ll be supplying to individuals
• It’s a company or not

Bangladesh suffers from an acute shortage of livestock products such as milk, meat, and eggs. Therefore, Bangladesh Government has given priority to dairy development at the farmer’s level to increase the supply of milk from small dairy farms. To achieve a regular income and a more market-oriented production pattern in dairy farming, it is essential to analyze the socioeconomic conditions of dairy farmers and their effects on dairy income in rural Bangladesh. Labor is the primary resource in dairy farming.

Proper labor management is a must for earning profits in dairy farming in the present-day competitive market. The output can serve as an input for a large scale on the evaluation of dairy policy in the country. However, dairy farmers are still facing to take decisions on how best to milk production and how much to produce within their limited resources. Constraints are the barriers coming in the way of successful dairy farming faced by the dairy farmers. Identification of constraints faced by them is very important to make necessary interventions and formulation of strategies for the uplift of smallholder dairy farming. The important findings for successful dairy farming are given below;

• Most farmers followed the stall feeding system.
• Cross breeder cow’s milk production is 5 times greater than that of natural breeder cows.
• The supply of all vaccines is not sufficient. These are costly also. The vaccine supplied by the government is also effective.
• The recurring cost is higher. So, the cost of production of dairy products is higher if we compare it to the other countries.
• Attract of many diseases is found. Diseases are more severe in the rainy season.
• Also, there is great demand for milk in Dhaka city.
• Farmers know about modern technology but most of the farmers do not use these technologies.

Most of the farmers believe that the dairy farming business is a profitable enterprise and can be more profitable if Government gives support on feed cost, marketing, loan, and management training. The below recommendations can be suggested as broad guidelines for the successful operation of a dairy farm;

• The shortage of feeds and fodder can partially be overcome by introducing the cultivation of HYV fodder. The government and non-government organizations play an important role in disseminating the technology of HYV fodder cultivation in rural areas.
• Veterinary care and services to the farm owners must be strengthened.
• Regular short training program on different management of dairying must be arranged for the farm owners and short-term institutional loans or credit should be given to actual farm owners and to be checked regularly.
• The price of milk must be fixed at a reasonable level and the milk-marketing system must be improved. Milk preservation facilities must be created for the farmer to ensure the marketing of their product.
• Some improvements must be made to communication, power, water supply, and modern storage facilities for dairy products.
• Both the public and the private sectors must introduce some methods to make bank credit available to smallholders on easy terms and through simplified procedures.

The Bangladesh farmers have been rearing three categories of cattle they are pure breed, crossbreed, and local. The local breed variety is less prone to diseases and is heat tolerant. In Bangladesh, the best local cattle are available in some selected locations such as Pabna, Sirajganj, Chittagong, and Munshiganj areas. In Pabna and Sirajganj area medium-type cattle are seen as called Pabna cattle.

To develop the production potentialities of the local cattle, some efforts made to crossbreed with different exotic breeds several times in the past. The introduced breeds are Holstein-Friesian, Jersy, Sahiwal, Sindhi, Australian, Sahiwal-Friesian, etc. And, some exotic pure breeds, their crossbreeds, and up-graded cattle are found in the government dairy farms, commercial dairy farms, and in urban and semi-urban areas of Bangladesh.

Cattle breed relatively homogeneous variety within a species having similar appearance and developed by deliberate selection. No specific cattle breed has been established in Bangladesh. Then, with the long natural selection, some improved indigenous varieties of cattle exist in the country. Though, this is results from the centenary selection of better animals for increasing milk production. Improved breed varieties are Pabna Cattle, Red Chittagong, Munshiganj Cattle, and North Bengal Grey Cattle.

There are mainly three types of dairy farms in Bangladesh. These are

• Rural dairies,
• Pocket dairies and
• Metro dairies.

a) Rural dairies – About 68% of rural people get cattle/buffalo and the number of cattle/buffalo per family is 3.5. Some cows per family in a rural area is 1.5 and on average each cow gives about 0.8-liter milk per day.

b) Pocket dairies – Some places in Bangladesh are milk-producing areas are Baghabari of Serajgang district, Munshiganj district, and Tekerhat of Matharipur district, etc.

c) Metro dairies – Metro dairies are developed in urban areas and most of them are small in size. The total food for their cattle at a higher cost but the farming in these areas is profitable because the price of milk in these areas is high. Farmer easily gets training, medicine, and vaccine, etc compare to the rural people and these farmers are more conscious than the farmer of rural area.

Livestock is one of the main components of the farming systems that play a vital role in agriculture. The cattle feed available in Bangladesh can be grouped into agro-industrial by-products which include agricultural crop residues such as straws, and sugarcane tops, etc.; by-products from agro-industries like molasses, oil-cakes, pineapple wastes, and shrimp waste, etc.; and milling by-products such as brans. Tree leaves, indigenous grasses, and cultivated fodder contribute to the bulk. The total area for Bhadoi and Rabi fodder is about 6,312 hectares, producing only about 47,000 m tons of fodder crops. It is estimated that about 190,000 m tons of grain are available for livestock feeding, contributing only about 15.7% of the total amount of concentrate feed.

The dairy cow requires mainly five classes of nutrients like energy, protein, minerals, vitamins, and water. Though, lactating cows react immediately to a reduction in the amount or quality of feed by a drop in milk production. The availability of feed and fodder is the main constraint in developing the full potential of the livestock sector. Unless adequate feeding is first provided for, no substantial improvement in milk yield can be achieved.

It is well known that milk is an ideal food for humans mainly to sustain growth in children, fetal growth in pregnant women, and milk production during lactation. Also, it has been described as nature’s most perfect food. Its main constituents, who supply energy and building materials for the young, are accompanied by several nutrients like minerals, vitamins, and organic compounds.

Cost of feed mainly included expenses on paddy straw, green grass, and concentrate, etc. The purchased feeds were valued based on the average prices paid for the items. Home supplied feeds were also charge based on the average prices prevailing in the market. Only a few owners produced green grass.

The milk production demand is growing at a faster rate than supply because of the rapid increase in population. Then, there is a need to know the existing demand, its growth over time, and the existing supply possibilities. All livestock require food, water, and a suitable environment for survival. Also, recent trials have shown that rapid improvement of the local cattle in the tropics can be attained by cross-breeding, using semen from high-quality animals. Then, such cross-bred animals produce satisfactorily, survive well under the local conditions and have the necessary heat tolerance. There are other factors, which favor livestock production in the tropics. The capital investment for buildings, etc. need not be as high as in the temperate zones. Only a simple building with a floor and a roof are necessary, as against the expensive building to keep out the cold in temperate countries. Due to the heavy rains that occur throughout the year, and capital cost for irrigation, etc. need not be as high. These all factors help to reduce the costs of milk production. Among animal products, milk has a high nutritional value. It has all ingredients required by the human body in proper proportions and an easily digestible form. It is essential that this sector, like every other sector of tropical agriculture, must be modernized and made more productive as quickly as possible.

You may also check this: How To Grow Vegetables Hydroponically .

Economic policies

1. Production policies – The commercial dairy industry growth is constrained by inadequate and irregular supplies and high costs for feed concentrates. The government has given high priority to the Bangladesh dairy industry development to alleviate the serious and growing gap between domestic consumption and production.

2. Marketing structure – Dairy development programs must be adopted on an integrated view, incorporating production enhancement, procurement, processing, and marketing of milk.

To meet the ever-increasing demands for milk follow some points;

1) Through breeding by artificial insemination or natural services. An ideal dairy cow in the present socio-economic situation has the potential of yielding on average 2,500 liters in 290 to 305 days, with an inter-calving period of 13 to 15 months and age at first calving from 28 to 33 months. The application of improved methods of breeding has greatly increased dairy cattle productivity in Bangladesh.

2) The constraint of feeds and fodder is considered the greatest problem facing the dairy cattle development in Bangladesh.

3) The main objective of dairy cattle development in Bangladesh through smallholders is to achieve greater production of milk and meat. Only dairy cattle development can be increased when an assured guaranteed market or an incentive price for the product will be offered. In Bangladesh, the important factor with an adverse effect on dairy production is the lack of a well-organized marketing system, particularly in the case of milk, which is highly perishable. While there is great demand for such products in urban areas, the supply of these products cannot be ensured without an organized marketing system and transport facilities. To ensure fair prices, an efficient and effective marketing system must be developed.

4) Improvements must be made to communication, power, water supply, and modern storage facilities for dairy products.

5) Smallholder dairy production must be encouraged at the village level, where roadside grass and rice straw are available.

6) The public and the private sectors should introduce ways to make bank credit available to smallholders on easy terms and through simplified procedures.

7) Powdered milk imports must be reduced to encourage dairying in Bangladesh. National Milk Development Co-operation should be established.

Diseases and parasites are a main problem for the dairy industry in Bangladesh.

Some diseases like rinderpest, contagious bovine pleuropneumonia, and foot and mouth disease cause high mortality and severe economic loss. Also, the improved varieties of cow breeds like Australian Sabiwal, Hariana, and Friesian need proper medical attention in the tropical environment. Though, the medical facilities are poor at district and Thana level livestock offices. The prices of essential animal drugs are high. A 30% increase in cattle production would be possible if these diseases were properly controlled.

The vaccination program of the Livestock Department is limited because of budgetary constraints. Only in this method will educationists and research and extension workers reach an adequate level of competence for their important task. To increase dairy production in Bangladesh, it is necessary to overcome economic as well as technical constraints. Although livestock research has been neglected in favor of research into crop production, the livestock research that has taken place has thus far focused on technical issues. Also, there is a lack of trained personnel at all levels as well as a lack of training facilities.

On average a Bangladeshi cow is reported to produce approximately 200 kg/year, which is below 30% of the production of an Indian cow. This low milk yield in Bangladesh is due to poor feed resources and low milk productivity, etc.

A comparatively low national milk production and a high population result in a per capita milk production in Bangladesh of about 13 kg/capita/year, which is approximately 16% of the per capita milk production achieved in India.

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Starting Dairy Farming Business Plan (PDF)

Starting a dairy farming business is a rewarding and sustainable venture for entrepreneurs looking to make a significant impact in the agricultural sector. As the demand for dairy products continues to grow globally, the opportunity to enter this market is ripe with potential. Dairy farming not only promises a steady supply of products that are always in demand, such as milk, but it also offers the satisfaction of contributing to food security and the agricultural economy.

Milk and its products are cardinal parts of many people’s diets. This is what makes dairy farming such a lucrative livestock farming business idea. Dairy farming is a scalable business with projectable financial outlooks. It is a somewhat technical venture which requires specialized knowledge and skills. That is not a big problem though because you can always acquire the relevant knowledge and skills.  Dairy farming involves breeding cows, milking them, and selling the milk. To build a profitable, sustainable milk dairy farming business, you require sufficient knowledge of how to efficiently keep the milk cows, good business management skills, and a good dairy farming business plan. This article will outline how to start the dairy farming project, and the dairy farming business plan – PDF, Word and Excel.

Dairy farming is a lucrative business, providing income for many farmers, but there are some essential things you need to do before you venture into the dairy milk production business. You have to decide on the size of your dairy farming project (how many dairy cattle will you keep?); location of the milk dairy farming business, and your target market. These choices will be affected by the amount of capital you have, and the size of your target market. If you do not have a lot of capital, you can always start small and grow your milk dairy farming project overtime. You also need to carry out market research (Who are you going to sell the milk to? At what price?) and write a dairy farming business plan before you start the dairy farm project.

Market Research

Before venturing into dairy farming, conducting thorough market research is crucial. This process involves understanding the demand for dairy products in your target market, analyzing the competition, and identifying potential customers. The supply chain is a critical aspect of your market research when starting a dairy farming business. It involves mapping out the entire journey of your dairy products, from farm to consumer, as well as the sourcing of feed and equipment. Identify the key players in the supply chain, such as wholesalers, distributors, retailers, and transportation providers, and understand their roles and requirements. Additionally, assess the sources from which you’ll acquire feed for your cattle and equipment for your farm operations. Analyze the logistics and infrastructure needed to ensure a smooth flow of dairy products, feed, and equipment from their respective sources to your farm and, ultimately, to the end consumers. A well-optimized supply chain is vital for ensuring product freshness, minimizing wastage, and meeting delivery timelines, all of which are essential for the success of your dairy business. Also calculate the initial investment required to start your dairy farm, including the cost of land, livestock, infrastructure, and operational expenses. Develop a detailed financial plan, projecting income and expenses over the next few years. This will help you determine if your business is financially viable.

Part of your essential market research is understanding the pricing dynamics of milk in your target market. You need to ascertain the current price range for milk products and analyze any variations based on factors like quality, packaging, and distribution channels. Furthermore, it’s crucial to identify your potential customers, their preferences, and purchasing habits. Determine how frequently they order dairy products and in what quantities. This information will not only help you set competitive pricing for your dairy products but also tailor your production and marketing strategies to meet the specific demands of your customer base, ensuring a successful entry and sustained growth in the dairy farming business.

Land for Dairy Cattle Farming Business

A substantial portion of land is need for dairy farming. This is because there are several things that must be accommodated. On average, between 1.5 and 2 acres must be available per cow and calf grazing. You also need a number of dairy farm structures for different purposes. For instance, you need dedicated areas for watering, waste management, equipment storage, milking processes, milk storage, feed storage, and maternity, amongst others. These can be self-contained in separate stalls, barns, or rooms, actual buildings. If there are dairy farm workers and they have to stay onsite, living quarters for them would be needed. Put all that together and factor in the number of cows to have a good idea of the total land size you would need for your dairy farm business.

Another consideration is the general climate of a chosen area. An ideal place would be where the climate promotes the growth of rich pastures. The land should have good water drainage. The soils should have good drainage as well. Those elements are critically important for infrastructural development on the dairy farm. The cattle dairy farm location should not be too close to public spaces e.g. residential areas. It is also important to ascertain that the land in question can be used for dairy farming business. Generally, there are procedures and regulations to be adhered to. Checking with the relevant local authorities is a must. Consider availability of quality and consistent water supply, the size of the land, quality of grass and grazing pasture and the soil type is it affects pasture quality.  Other factors include availability of already made infrastructure like good road network, milk facilities, dependable electricity, pens, sheds, buildings. Constructing buildings for a dairy farm is expensive, so it would be an advantage if some buildings are already there. 

Housing For Dairy Farm Business

To be successful in the dairy farming business, it’s important that you provide good and adequate housing for the dairy cows. Housing for dairy cows is required for several reasons: protecting the dairy cattle from adverse weather conditions, confining the milk cows when they are not grazing, and to allow easier management and control of the dairy milk herd. The best dairy design depends on the local climatic conditions, budgetary constraints and availability of bedding materials. When designing housing for the dairy milk herd, take into consideration the need to provide adequate space, feed & water facilities, milking facilities, waste management and livestock handling features.  There are many different structures which can be used for a dairy milk farm, and these include free-stall, tunnels, composite barns, dry lots, tie-stall facilities and dairy sheds. Other dairy milk cow structures include milking parlour, sick/isolation pens, calving boxes, crowding pens, sorting corrals, working chutes & gates, and squeeze gates. However the necessity of the structures depends on the size of the dairy farming business. 

The housing needs for dairy farming business are informed by the different production stages. The dairy milking herd needs to be housed in its own area. They can be housed in stalls or barns which come in different designs. For instance, if you have a small dairy herd you can set up tie stalls. Typically many dairy farmers start off with what are called bedded-pack barns. These are basically enclosed sheds where there is no flooring but just the basic earth. It is usually from this that many, over time, transition or upgrade to more sophisticated dairy farm housing. When it comes to dairy cattle heifers, the hoop barns are the most common housing. Age-wise we are looking at cows between 6 months and heifers. Dairy hoop barns have different designs. One type of hoop barns has a dome-shaped roof. Another type is like a shed, one-sided with a single slope roof. There can be variations to the dairy housing depending on the size of the heifers. More tweaks become necessary as the heifers grow in size. Dairy calves can be housed in hutches. The hutches can be placed outdoors, which is typical. However, adverse weather conditions can make it necessary to place them indoors. The best indoor environment can be barns. From weaning till they are around 6 months old, you can use simple sheds. Just as long as you can provide the pasture they need. Alternatively, you can use hoop sheds. To control and streamline their feeding you can install headlocks. This will ensure they feed orderly without tussling with each other. The dairy farm also requires good fencing, so as to contain the milk cows and manage their grazing. Dairy farm fencing can be by barbed wire, high tensile smooth wire or electric fencing. The dairy milk farm business plan should include the costs of constructing the housing.

Dairy Farm Equipment

There is a wide range of equipment needed in dairy farming business. What you will need depends on your scale or production i.e. number of dairy cows. The other factor is the level of sophistication of your dairy farming operation. At the most basic you need protective clothing such as overalls, boots, gloves, and the like. For day to operations you need equipment such as tractors, trailers, ropes, chains, and loaders. You also need feeders and drinkers – these can be items or in the form of mechanized or digitized systems.

Tags or a tagging system is needed for the dairy cows. Specialized cutters or grinders for hay (or straw) come in handy. You can also have specialized cutters or grinders for green fodder. Ventilation equipment is of importance and so is waste management equipment e.g. manure pits. Milking equipment is obviously required. You will need milk cans or tanks; depends on your capacity. Milking machines, pasteurizers, and homogenizers also come in. The cost of buying the equipment should be included in the dairy cattle farming business plan. 

Breeding Stock for Dairy Farming Business

To start a dairy milk production business, you require the dairy breeding stock: bulls (male cattle) and milking cows (female cattle). A dairy farm can also be operated without bulls, by using artificial insemination for breeding the milking cows. The cows should breed every year, as milk production only happens after the cows have given birth to calves. The decision of which dairy breed to use is important, and affects the success of your milk production business.

The breeds you choose will affect the milk production potential of your dairy farming business. Some breeds are better than others at producing good milk quality. The quantity of milk produced also varies depending on the breed of the milk cow. Other characteristics which vary among breeds include breeding age, productive lifespan, adaptation to different environmental conditions & climates, calving ease, feed conversion, diseases resistance, and average birth weight. When choosing breeding stock it is usually wise to look for purebreds. Purebreds normally have detailed information available on their breeding and ancestry history. Some of the most common breeds used in the dairy farming business are Holstein, Red and White, Jersey, Brown Swiss, Guernsey, Ayrshire, Milking Shorthorn. Other noteworthy breeds are Kerry, Dutch Belted, Dexter, and Milking Devon. The dairy farm business plan should include the costs of acquiring the dairy cattle breeding stock.

Feed And Nutrition

Feeds for dairy cattle come in two broad forms namely concentrates and forages. There are also dairy supplementary feeding options that can be considered. Concentrates (usually grain-based) are important because of their high energy and protein content. Forages are essential for the dairy cows as they are good sources of fiber and are typically legume or grass-based. Supplementary feeding of dairy cattle fills gaps that can be there nutrition-wise. For example, molasses is calcium-rich, amongst other essential nutrients. There are 3 common feeding approaches that are used. These are feeding using total mixed ratios, component feeding, and using pastures. Total mixed ratios entail proportionately mixed all-in-one meals. Component feeding as the name suggests involves feeding component by component e.g. forages, concentrates, and so on. Using pastures is by the commonly known paddocking system.

The success of your dairy milk production business is affected by the feeding system that you use. The feeding program of the dairy farming business should ensure that adequate nutrition is provided to both the cows and calves at all growth stages and during all seasons. This should be done while keeping an eye on the feed costs, as they greatly affect profitability of the dairy milk farming business. Dairy cattle need a daily supply of all nutrients required for maintenance and production: milk, meat, growth and pregnancy. Failure to provide adequate feeding for the milk cows and calves results in low milk production, poor reproductive performance, poor growth of the calves and poor disease resistance. These factors all lead to reduced revenues for the dairy milk production business, thus lower profits. The common feeding programs of dairy farming business are usually based on pasture grazing, in combination with supplementary feed. The supplementary feed for dairy cows include concentrates, hay, corn, fodder, salts & minerals, silage, commercial dairy cow feeds and grains. The feed costs should be included in the dairy farming business plan.

Health & Disease Management

Ensuring the health and well-being of your dairy herd is paramount to the success of your dairy farming business. A comprehensive health and disease management program is essential to maintain the productivity of your cattle and the quality of your dairy products. Regular health checks, observation of behavior, and adherence to recommended vaccination schedules are critical components of routine health monitoring. A comprehensive disease prevention and control strategy is vital. This includes implementing quarantine procedures for new animals entering your farm and biosecurity measures to minimize the risk of disease transmission. Preparedness for disease outbreaks, including isolating and treating sick cattle promptly, is crucial to prevent the spread of illness within the herd.

Proper nutrition, sanitation, and hygiene play a pivotal role in preventing diseases and maintaining herd health. A balanced diet tailored to the specific nutritional needs of your cattle, along with clean living conditions and access to clean water, are vital. In addition, establishing a strong partnership with a qualified veterinarian, maintaining meticulous records, and providing proper training to farm staff are essential for effective health and disease management. Effective record-keeping is another cornerstone of health and disease management. Maintaining detailed records of your herd’s health history, including vaccinations, treatments, and observed health issues, allows you to track trends, make informed decisions, and continuously improve your health management practices. Prioritizing these measures not only safeguards the welfare of your cattle but also contributes to the production of high-quality dairy products, ultimately ensuring the success and sustainability of your dairy farming business.

Dairy Farming Business Model

In the dairy farming business model, your primary assets are your bulls and milk cows, which are carefully managed to ensure a sustainable source of income. The process begins with the mating of these cattle, either through natural reproduction or artificial insemination, to produce calves. Once the milk cows give birth, they commence milk production, which becomes a core revenue stream for your operation. The milk produced can be sold to various markets and consumers, contributing significantly to your income.

In addition to milk production, the management of the calves born is crucial. Some of these calves can be raised to replace the breeding cattle in your herd, ensuring the continuity of your dairy operation. Others can be sold at birth, providing an additional source of revenue. To maintain the health and productivity of your herd, you’ll also need to cull some breeding cows over time due to factors like old age or poor milk production, and these cows can be sold as well. While the business incurs expenses, particularly in feed costs, the revenue generated from selling milk, calves, and culled cattle far exceeds these input costs and operating expenses, resulting in a healthy profit. This cyclical and sustainable approach ensures a continuous source of income for your dairy farming business, making it a viable and lucrative venture.

Capital for Dairy Farming Business

The amount of capital required for the milk dairy farming business depends on the size of the project. When starting a dairy milk production business, most of the capital goes to acquiring the land, building infrastructure, and buying the dairy cows & bulls. You can get a loan from the bank, or funding from investors, to use as capital to start your dairy farming business. If you plan to raise capital from investors and a loan from the bank, you need a good dairy farming business plan. If you don’t have access to investors and bank loan, you can use your personal savings and start small, and grow your dairy farming business overtime. Dairy cattle farming is very profitable, so if you reinvest the profits you get, you can grow over time. Even if you are not planning to get a loan, you should still get a dairy farming project plan to guide you in starting and operating the business. It is essential for you to have a dairy farming business plan before you venture into the dairy milk production business, so that you know all the costs involved and you make an informed decision.

Market for Dairy Milk

Milk is often regarded as being nature’s most complete food because it provides many of the nutrients which are essential for the growth of the human body. Being an excellent source of protein and having an abundance of vitamins and minerals, particularly calcium, milk can make a positive contribution to the health of a nation.

The market for milk is very huge and is ever increasing, annual milk global demand exceeds 800 million tonnes. Your dairy farming business can sell raw or processed milk. The market for dairy milk includes supplying to milk processors, grocery stores, schools, companies, individual households, organisations etc. It’s important for the dairy farming business plan to include a proper marketing plan to use in your milk dairy farming business.

Keys to Profitability in Dairy Farming

Achieving profitability in the dairy farming business is a multifaceted endeavor that demands a strategic approach and a deep understanding of industry dynamics. Several crucial keys can unlock the path to profitability and financial sustainability. First and foremost, efficient herd management is essential. Selecting cattle with high-quality genetics, implementing effective breeding programs, and maintaining proper nutrition can enhance milk production while reducing operational costs. Regular health checks and disease prevention strategies are equally vital to minimize veterinary expenses and maintain overall herd health.

Optimizing feed and nutrition is another pivotal factor. Balancing your cattle’s diet with the right feed and nutrition can maximize milk production and minimize feed costs. Regular assessments of feed quality and collaboration with nutritionists can ensure that your dairy cattle receive the necessary nutrients for optimal health and productivity. Sustainable farming practices are increasingly important, not only for environmental reasons but also for cost reduction. Responsible waste management, efficient water usage, and energy-efficient facilities can lower operational expenses and appeal to eco-conscious consumers.

Controlling costs and streamlining efficiency are critical for profitability. Regularly reviewing expenses and identifying areas for cost-cutting without compromising animal welfare can have a substantial impact on your bottom line. Diversifying income streams beyond milk sales can mitigate risks associated with market fluctuations. Exploring opportunities such as selling surplus calves or producing value-added dairy products can help stabilize revenue. Effective marketing and branding, supported by a strong brand identity and customer engagement, can set your dairy farm apart in the competitive market and even command premium prices for your products.

Advantages of Dairy Farming Business

Launching a dairy farming venture comes with a host of distinct advantages that make it an appealing agricultural pursuit. Central to these benefits is the stable and unwavering demand for dairy products. Staples like milk, cheese, yogurt, and butter maintain a consistent presence in households worldwide, ensuring a dependable source of income for dairy farmers. This steady demand provides a reliable source of income, reducing the uncertainty that can be associated with other agricultural ventures. Furthermore, the potential for high returns on investment adds to the allure of dairy farming. With proper care and management, dairy cattle can produce milk for several years, providing an ongoing revenue stream. Additionally, the production of value-added dairy products, such as cheese and yogurt, can command premium prices in the market, further enhancing profitability. Dairy farming also offers diversification opportunities, allowing farmers to explore various income streams beyond milk sales. These can include selling surplus calves, producing dairy-based products, or even engaging in agritourism activities on the farm. Such diversification not only strengthens financial stability but also reduces risk, contributing to the sustainability of the business. A well-maintained dairy herd can provide long-term potential for your business. Cows can produce milk for several lactation cycles, and if managed properly, they can remain productive for years. This longevity offers stability and the opportunity to build a sustainable, generational farming legacy.

Why You Need A Dairy Farming Business Plan

A business plan is an essential tool for financial planning and management. It helps you estimate the initial capital required to start your dairy farm, including expenses for land, cattle, infrastructure, and operational costs. With a well-defined financial plan, you can budget more effectively. A dairy farm business plan is instrumental in helping you gain a comprehensive understanding of the profitability of your dairy farming business and the myriad factors that influence it. It serves as a financial compass, allowing you to assess the potential income and expenses associated with your operation, thereby providing a clear view of your farm’s profitability. Factors such as the cost of feed, veterinary care, labor, milk prices, and market demand all play pivotal roles in determining the bottom line. With this insight, you can make informed decisions to optimize profitability by identifying cost-saving opportunities, diversifying income streams, and implementing strategies to mitigate risks, ensuring the long-term financial success of your dairy farming venture. A well-crafted business plan also serves as a powerful tool for securing funding. When seeking financial support from investors, lenders, or potential partners, a comprehensive business plan demonstrates your commitment, professionalism, and a clear strategy for success. A robust business plan not only showcases your dedication but also provides prospective funders with the information they need to evaluate the viability and potential return on investment of your dairy farming business, making it a crucial asset in securing the necessary capital for your agricultural endeavor.

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Economic analysis of dairy farming in Bangladesh

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• Published: 13 July 2018
• Volume 51 , pages 55–64, ( 2019 )

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• Apurba Kumar Datta   ORCID: orcid.org/0000-0002-8089-9225 1 ,
• Mohammed Ziaul Haider 1 &
• Sumon Kumar Ghosh 1  

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A study was conducted to analyze the dairy farming sector of Bangladesh from an economic viewpoint. Primary data was collected from smallholder dairy farms using survey questionnaires. A Cobb-Douglas production function and multiple regression models were estimated to analyze farm milk productivity and gross margin of the dairy farms. Surveyed dairy farms owned on an average 3.07 milking cows comprising 0.37 indigenous and 2.70 crossbred cows. Average milk productivity was 7.80 liter per cow per day, in which indigenous cow milk productivity was 1.9 1iter per day and crossbred cow milk productivity was 6.48 liter per cow per day. The study found that average daily milk production of small, medium, and large dairy farms were 5.45, 32.50, and 59.83 liter, respectively. Average monthly revenue and cost of milk production were US$ 79 and US$ 21 per cow, resulting in the average net return of US$ 58 per cow per month. Both quantitative estimation and t test results indicated a positive and statistically significant relationship between farm size and milk productivity and gross margin. The study findings also indicate that crossbred cows are providing higher economic benefits to the dairy farmers compared to the indigenous breeds. Despite being smallholder and subsistence, dairy farming shows potential for increasing returns to scale, and hence, there is a scope for further growth of the sector.

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Datta, A.K., Haider, M.Z. & Ghosh, S.K. Economic analysis of dairy farming in Bangladesh. Trop Anim Health Prod 51 , 55–64 (2019). https://doi.org/10.1007/s11250-018-1659-7

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Published : 13 July 2018

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What’s Next for The Dairy Industry?

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Introduction

The dairy sector in Bangladesh has experienced steady growth in the last few decades despite constant challenges. From its humble beginnings as a cottage industry not too long ago, the dairy industry in Bangladesh has evolved with the emergence of multiple home-grown industrial processors. In the context of an economy that is still dependent on agriculture at large, the dairy sector can add great value in terms of creating employment opportunities, establishing food security, and supplying protein to the meals of people. Although Bangladesh is yet to reap the benefits of a mature industry from this sector, it holds immense potential to contribute to creating economic value at the national level. 

However, the industry is still riddled with problems that are holding it back from realizing its full potential. In terms of per capita milk consumption, Bangladesh stands near the bottom of the global list. Regionally, per capita milk consumption in South Asia is one of the lowest in the world. As it combats a perpetual supply deficit in the market, the dairy industry in Bangladesh looks to advance towards self-sufficiency.

Market Overview

According to the Department of Livestock Services of the Government, milk production in Bangladesh amounted to 10.68 million metric tons in the 2019-20 fiscal year. Between 2010 and 2020, the domestic production of milk has grown five times, with a CAGR of 16.25%. [1]  

The growth in production in the last ten years has been fairly linear with a few spikes. The largest growths were observed in the years 2012 and 2016. Various factors including the introduction of efficient methods, zoological factors, the advent of industrial processors, etc. appear to have expedited the growth in milk production in Bangladesh.

Product Variants and Derivatives

While the primary product in the market is liquid milk, various milk derivatives including cheese, milk and cream, milk oils and fats, curdled milk and cream, butter, ice cream, yogurt, etc. constitute the market. There are different variants within the liquid milk segment as well. Flavored milk is one of the popular variants in the market, which largely depends on imported ingredients to be processed.

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Availability and value chain.

Despite the increase in production, the industry has not been able to fulfill the domestic requirement yet. Currently, the per capita availability of milk stands at 175.63 ml/day whereas the minimum recommended daily intake is 250 ml. As opposed to the current supply of 106.80 lakh metric tons, the demand for milk in the market stands at 152.02 lakh metric tons. [1]  This shortfall implies that self-sufficiency in the dairy sector is still outlying. 

The value chain in the Bangladesh Dairy industry can be primarily divided into two models: the informal Traditional Markets Model and the Formal Processed Market Model. [2] The dairy sector in Bangladesh is making its shift towards achieving scale through the growth of industrial processors of dairy products. However, the lion’s share of the total domestic production of milk is channeled through informal trades. As IFCN reported in 2019, the industrial processors can collect only 9% of total milk production, and 91% is traded informally. [3]  In the informal portion of the market, the milk directly goes to consumers from farmers. In the formal division of the market, various models are followed including the cooperative model where the farmers contribute to the cooperatives that channel the milk to industrial processes to ultimately reach the consumers.

Profitability

Currently, the overall scenario in the industry is not very profitable for industrial processors. According to Milk Vita, the entity is incurring higher costs per liter than what they can charge for it. Despite the high demand in the market, the financial attractiveness of formal dairy farming is not there, primarily because of the high processing costs.

Competitive Landscape

As it is mentioned earlier, the market is mainly divided into formal and informal sections. The market structure is similar to an oligopoly, being dominated by a handful of major players. The market leader in the industry is Milk Vita with 40% of the market share. Founded in 1974, the government-run cooperative organization is the pioneer of formal milk processing in Bangladesh. Milk Vita is followed by BRAC’s Aarong and Pran with 24% of the market each. Pran is the fastest growing among all the market players and the leader in terms of producing UHT milk in Bangladesh. Farm Fresh, a concern of Akij Food and Beverages, holds 2% of the market, which is followed by some other minor players. [4]

Major Challenges in the Industry

Despite the huge demand and growth potential, the advancement of the industry is impeded by several challenges in the ecosystem:

Inadequate Funding

Although the livestock and poultry sector as a whole received a bigger allocation of the Government Budget of FY 2020-21 than the previous ones, the sector is still not getting enough attention. Issues like a shortage of medicine and feed for the cattle, and inadequate training of staff due to lack of necessary funds are ultimately resulting in poor product quality and low dairy production.

High Cost of Production and Inadequate Prices

One of the major problems that riddle the dairy industry is that the farmers are being deprived of fair prices for their produce. According to Milk Vita, the largest industrial processor in the country, a farmer is offered only 35-40 taka for a liter of milk depending on the fat level, whereas the cost of production is on average 43 taka a liter, driven by cost pressures such as increasing prices of fodder and raw feed ingredients. Insufficient prices act as a deterrent to farmers to produce milk for industrial processors and maintain the quality of the milk.

Low-Quality Produce

As the informal segment of the industry is dominated by small farmers and market intermediaries, quality control processes are inadequate or non-existent. As a result, the quality of milk is not being ensured. In addition to that as farmers do not get the fair price for their produce, they are often tempted to adulterate milk to increase quantity to cover their costs. In a study conducted in the Barishal district, it was observed that 100% of the samples collected were adulterated with water. Apart from that, other adulterants present in the samples were cane sugar (26%), powdered milk (14%) and starch (12%). [5]

Low Production

As a result of some of the problems mentioned earlier, the domestic production of milk is still too low to realize its full potential. One of the main reasons behind low production is the absence of high-yielding breeds in the country. As most of the produced milk comes from marginal farmers who rear low-yielding local breeds, the bottleneck in the supply chain is slowing down the growth in the sector. To put it into context, an average local breed cattle’s yield is around one-twentieth of that of a cross-breed of local and 62.5% HF. [4]

Import Dependence

As the domestic production is not yet sufficient to cover the demand for milk in the country, the market is still heavily dependent on imports. Despite the growth in domestic production, the import quantity of milk and milk derivatives has increased over the decades. According to International Trade Center, powdered and solid milk products worth $365.87 million were imported in the year 2019. [6]

How the Pandemic affected the Dairy Industry

In an industry that is already facing challenges on multiple fronts, the coronavirus pandemic came as a deadly blow. The key issues that the dairy industry in Bangladesh faced during the pandemic are:

Decreased Sales and Waste of Produce

After Bangladesh reported its first case of COVID infection in March 2020, the average family income dropped as high as 74% in two months. [7] Consequently, household expenses were squeezed, which impacted the sales of most goods including milk. As reported in May 2020 by Care Bangladesh, 4 million liters of milk worth 18.9 crore taka were being wasted due to insufficient demand every day during the first wave of coronavirus in Bangladesh. [8] The slowdown during the pandemic caused economic hardship for the farmers at the grassroots. As most of the dairy farmers are daily earners, imposed restrictions to curb infections took a toll on them. Many were forced to quit to seek a livelihood in other activities.

Dampened Outlook of the Industry

The dairy industry in Bangladesh had been experiencing a steady growth in terms of production for the last few decades. In continuation of the recent trend, the growth was expected to continue in 2020 as well. However, due to the impact of the pandemic the projected growth of the industry dropped from 5.5% to 2.1% in 2020. [9]

Possible Ways to Overcome the Challenges

Establishment of a dairy development board.

A dedicated board for the development of the dairy industry can be established to work towards the welfare of the farmers and consumers. The board can work with the objective of ensuring fair prices for the farmers through different initiatives. National Dairy Development Board of neighboring nation India can be set as a benchmark in this regard. With an effort to develop the national dairy ecosystem, NDDB India works on animal breeding, ensuring nutrition and good health of cattle, product and process development, cooperative training, quality assurance, sectoral analysis, and so on. With a similar socio-economic context prevailing in the country, Bangladesh could benefit from such an initiative as well.

Establishment of a Development Cooperatives

The establishment of dairy cooperative societies with the farmers can go a long way in solving farmer grievances. The cooperatives need to work towards ensuring proper price and quality. Prioritizing the marginal farmers’ interest, the development cooperative models in the dairy industry can greatly contribute towards the sector’s overall growth.

Equipping Farmers with Modern Technology

The dairy sector in Bangladesh is still practicing the traditional ways of cattle rearing at large. Integrating modern technologies in the traditional way of farming can help increase milk production. Automation in the collection, processing, and manufacturing processes can help achieve scale and reduce cost per unit. Methods like artificial insemination for quality breeding are now widely used across the world. Integrating such methods in the country’s dairy sector can expedite its growth to exponents. The current practices in the dairy industry in Bangladesh also lack large-scale farming. As most of the produce comes from marginal farmers who rear cattle within the household, the industry is not being able to grab the economies of scale. As a result, the overall cost of production goes up. Introducing large-scale farms equipped with modern technologies can bring down the cost of production and ensure profitability for all stakeholders.

Awareness about Milk Consumption

Emphasizing PR and marketing efforts to spread mass awareness about milk consumption and its benefits can be a way forward for the industry to overcome the challenge of low consumption. The current level of milk consumption in Bangladesh is much lower than the recommended daily intake. To push this number up, dedicated awareness campaigns can be launched. Increased use of milk in local cuisine can also work as a contributing factor to increase overall milk consumption.

The implementation of the mentioned steps can bring positive changes not only on the supply side but also on the demand side of the market. According to the forecast of DLS, the dairy industry in Bangladesh is on track to achieve self-sufficiency by 2029. [3]  With adequate measures taken, the timeline of this projection can be shortened to cover the whole domestic demand and Bangladesh can even realize ambitions of a dairy export industry.

Faiyaz Uddin Ayeshik , Content Writer and Saif Nazrul , Senior Business Consultant & Project Manager, at LightCastle Partners, have prepared the write-up. LightCastle Partners would like to thank Mr. Md. Tofayel Ahmed from Milk Vita for the interview insights. For further clarifications, contact here: [email protected]

• 1. Livestock Economy at a glance 2019-2020 – Department of Livestock Services
• 2. Bangladesh: Social gains from dairy development – FAO
• 3. Forecasting milk production in Bangladesh toward achieving self-sufficiency – Livestock Research for Rural Development
• 4. The dairy and beef value chain in Bangladesh – UNIDO
• 5. Adulteration of raw milk in the rural areas of Barisal district of Bangladesh – Bangladesh Journal of Animal Science
• 6. Sector Trade Performance-Bangladesh – International Trade Centre
• 7. Coronavirus: Economy down, poverty up in Bangladesh – Deutsche Welle
• 8. SDC-Shomosti – Rapid Livestock Assessment – Care Bangladesh
• 9. The impact of COVID-19 on the dairy industry of Bangladesh – The Business Standard

WRITTEN BY: LightCastle Analytics Wing

At LightCastle, we take a data-driven approach to create opportunities for growth and impact. We consult and collaborate with development partners, the public sector, and private organizations to promote inclusive economic growth that positively changes the lives of people at scale. Being a data-driven and transparent organization, we believe in democratizing knowledge and information among the stakeholders of the economy to drive inclusive growth.

For further clarifications, contact here: [email protected]

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Dairy Farm Business Plan

Free Business Plan Template

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How to Write A Dairy Farm Business Plan?

Writing a dairy farm business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

• This section may include the name of your dairy farm, its location, when it was founded, the type of dairy farm (E.g., conventional dairy farm, organic dairy farm, farmstead dairy farm), etc.

Market Opportunity:

Dairy farm products:.

• For instance, you may include milk and milk products as dairy farm products, and organic and grass-fed and pasture-raised cattle as some of your USPs.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

• Conventional dairy farm
• Organic dairy farm
• Farmstead dairy farm
• Pasture-based dairy farm
• Describe the legal structure of your dairy farm, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

• Additionally, If you have received any awards or recognition for excellent work, describe them.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

• For instance, health-conscious individuals, specialty diet consumers, and organic shoppers would be an ideal target audience for a pasture-based dairy farm.

Market size and growth potential:

• For instance, the dairy farm industry was 59.3 billion dollars in 2022. It is extremely crucial to define the segment of your target market and its growth potential.

Competitive Analysis:

Market trends:.

• For instance, plant-fed dairy farming has a booming market; explain how you plan on dealing with this potential growth opportunity.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your dairy farming business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Milk Varieties:

Mention different varieties of milk you will offer at your dairy farm. This will include full-fat milk, low-fat milk, grass-fed derived milk, skimmed milk, etc.

Dairy products:

Mention the dairy farm products you will offer. This list may include dairy products like cheese, butter, yogurt, cream, ice cream, and much more. Also, mention the different varieties of these products you will offer.

Parts and Accessories:

Quality measures:.

• This may include ensuring animal health and welfare, milk testing and quality control, sanitation and hygiene practices, etc.

Additional Services

In short, this section of your dairy farm plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

• For example, grass-fed milk produce, organic and sustainable practices, and farm-to-table sales could be some of the great USPs for a local pasture-raised dairy farm.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your dairy farm business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your dairy farm, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

• Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your dairy farm management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

• It should include, key executives(e.g. CEO.), senior management, and other department managers (e.g. farm manager, herd manager.) involved in the dairy farm operations, including their education, professional background, and any relevant experience in the dairy farm industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your dairy farm services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the dairy farm industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your dairy farm business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

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This sample dairy farm business plan will provide an idea for writing a successful dairy farm plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our dairy farm business plan pdf .

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Frequently asked questions, why do you need a dairy farm business plan.

A business plan is an essential tool for anyone looking to start or run a successful dairy farm. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your dairy farm.

How to get funding for your dairy farm business?

There are several ways to get funding for your dairy farm, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

What is the easiest way to write your dairy farm business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any dairy farm business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How detailed should the financial projections be in my dairy farm business plan?

The level of detail of the financial projections of your dairy farm may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

What key components should a dairy farm business plan include?

The following are the key components your dairy farm business plan must include:

• Executive summary
• Business Overview
• Market Analysis
• Products and services
• Sales and marketing strategies
• Operations plan
• Management team
• Financial plan

Can a good dairy farm business plan help me secure funding?

Indeed. A well-crafted dairy farm business plan will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Dairy Farm Business Plan Template

Written by Dave Lavinsky

Dairy Farming Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their dairy farming businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a dairy farming business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your dairy farm as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a dairy farm, or grow your existing dairy farm, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your dairy farm in order to improve your chances of success. Your dairy farming business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Dairy Farming Businesses

With regards to funding, the main sources of funding for a dairy business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for dairy farming businesses.

    Finish Your Business Plan Today!

How to write a business plan for a dairy farming business.

If you want to start a dairy business or expand your current one, you need a business plan. Below we detail what should be included in each section of your dairy farming business plan:  

Executive Summary

Your executive summary provides an introduction to your dairy farming business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of dairy farm you are operating and the status. For example, are you a startup, do you have a dairy farm that you would like to grow, or are you operating dairy farming businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the dairy farm industry. Discuss the type of dairy farm you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of dairy farm you are operating.

For example, you might operate one of the following types of dairy farming businesses:

• Freestall dairy farm : this type of dairy farm provides plenty of ventilation for ultimate comfort for the cow as well as freestall barns which allow the cows more freedom to eat, drink, and rest wherever they like.
• Drylot dairy farm: this type of dairy farm is suitable for drier climates and cows are given access to shade and shelter on a large dry-dirt ot for relaxation. The cows have plenty of room for feed and water and free reign to eat and drink as they please.
• Pasture-based dairy farm: this type of dairy farm is a more traditional setup where cows receive an “all access pass” to green pastures to graze and rest when they are not being milked in the milking parlor. This type of dairy farm also provides cows feed and water in the barns and provide enough cover for inclement weather when needed.

In addition to explaining the type of dairy farm you will operate, the Company Analysis section of your dairy farming business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, reaching X amount of customers served, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the dairy farm industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the dairy farm industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your dairy farming business plan:

• How big is the dairy farm industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your dairy farm? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your dairy farming business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: grocery retailers, families, and individual buyers. 

As you can imagine, the customer segment(s) you choose will have a great impact on the type of dairy farm you operate. Clearly, families would respond to different marketing promotions than grocery retailers, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.  

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other local dairy farms. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes grocery stores, farmers markets, milk alternatives (vegan), etc.

With regards to direct competition, you want to describe the other dairy farming businesses with which you compete. Most likely, your direct competitors will be dairy farms located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What type of dairy farm are they?
• What areas do they serve?
• What types of customers do they serve?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide dairy farm products that your competitors don’t offer?
• Will your cows be raised in a better facility?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a dairy farming business, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of dairy farm that you documented in your Company Analysis. Then, detail the specific services you will be offering. For example, in addition to dairy farm products, will you provide a petting zoo, cheese making training, and any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your dairy farm. Document your location and mention how the location will impact your success. For example, is your dairy farm located in a rural setting, on the outskirts of a metropolitan area, the countryside, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your dairy farm marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Commercials
• Social media marketing
• Local radio advertising
• Word-of-mouth

Operations Plan

While the earlier sections of your dairy farming business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your dairy farm, including cleaning and maintaining the dairy farm and cows, milking the cows, bottling of milk, cheese production, marketing, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to obtain your XXth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your dairy farm to a new location.  

Management Team

To demonstrate your dairy farm’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing dairy farms. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a dairy farm or a large profitable farm.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you start with X number of cows or will you expand your cow inventory slowly ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your dairy farm, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a dairy farm:

• Cost of dairy farm construction and barn build-out
• Cost of dairy farm supplies, cows, and equipment
• Cost of marketing the dairy farm
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your list of products your dairy farm will offer, types of customers you will be targeting, and the areas your dairy farm will serve.  

Putting together a business plan for your dairy farming business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the dairy farm industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful dairy farm.  

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies that have gone on to achieve tremendous success.

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Dairy Farming Business Plan FAQs

What is the easiest way to complete my dairy farming business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your dairy farming business plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of dairy farming business you are operating and the status; for example, are you a startup, do you have a dairy farming business that you would like to grow, or are you operating a chain of dairy farming businesses?

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The aim of the study was to survey the chemical composition, antimicrobial and antioxidant activities of Dittrichia graveolens essential oil in in vitro conditions. GC-FID and GC-MS analyses were performed to evaluate the chemical composition of essential oil. The antimicrobial activity against different kinds of microorganisms was determined by microbroth dilution assay. The antioxidant activity was evaluated by DPPH free radical scavenging system. Studies of chemical composition of essential oil revealed the presence of borneol (38.2%) and bornyl acetate (14.9%) as major constituents. Essential oil showed strong antimicrobial activity against Enterococcus faecalis isolates and Bacillus cereus. Staphylococcus aureus and Escherichia coli are less sensitive to the oil. The strong antimicrobial activity of oil against clinical isolates of bacteria was demonstrated. In addition, D. graveolens oil notably reduced the concentration of DPPH free radical with higher efficacy than that of t...

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Yasufumi Murakami

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Management of laryngeal and hypopharyngeal squamous cell carcinoma (LHSCC) remains highly challenging due to highly variable therapeutic responses. By establishing an in vitro model for LHSCC based on conditional reprogramming (CR), a cell-culture technique, we aim to investigate its potential value on personalized cancer therapies. Herein, a panel of 28 human LHSCC CR cells were established from 50 tumor tissues using the CR method. They retained tumorigenic potential upon xenotransplantation and recapitulated molecular characteristics of LHSCC. Differential responses to anticancer drugs and radiotherapy were detected in vitro. CR cells could be transformed to xenograft and organoid, and they shared comparable drug responses. The clinical drug responses were consistent with in vitro drug responses. Collectively, the patient-derived CR cell model could promisingly be utilized in clinical decision-making and assisted in the selection of personalized therapies for LHSCC.

fatma bozkaya yetkin

Turkiye icin gecmisi cok eskilere dayanmayan ve kultur ve tabiat varliklarini koruma mevzuatina 2004 yilinda yapilan degisiklikle, “yonetim alani” ve “yonetim plani” tanimlariyla giren “alan yonetimi planlari”, alan tanimlanmasi, kulturel miras degerinin belirlenmesi, mevcut durum analizlerinin yapilmasi, alanin gelecegini etkileyecek ve korumanin devamliligini saglayacak politika ve hedeflerin gelistirilmesi ile uygulama ve izleme faaliyetlerini kapsamaktadir. Alan yonetimi, sit alanlarinin korunmasini ve surdurulebilirligini saglamak uzere ortaya konulmus bir yonetim bicimi olmakla birlikte, ozellikle insanligin yogun ilgisini ceken ve turistik niteligi nedeniyle daha hassaslasan alanlarin korunup surdurulmesinde buyuk onem arz etmektedir. Bu calismada, yonetim planlari ve kulturel turizm baglaminda kavramsal cerceve olusturulmus, Şanliurfa ozelinde, Gobekli Tepe, Harran ve Balikligol Arkeolojik Sit Alani Yonetim Planlari ile kultur turizmi iliskisi incelenerek mevcut durum analiz...

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Background: A number of microorganisms are capable of degrading amylase and only a few of these microorganisms produce significant quantities of enzymes capable of completely hydrolyzing the amylase. Fungi are the main amylase-producing microorganisms. Aims: The present study targeted to screen Penicillium species isolated locally from soil for amylase production. Materials and Methods: In this research, fungal species belonging to genera penicillum species were isolated from soil and screened for their ability to degrade cellulose (lactose, fructose, sucrose and dextrose) for enzyme activity. Enzymatic fungi were evaluated after 7 days for the production of amylase enzymes by lactophenol microscopic examination. The concentrations for 7 days of production were formulated by dilution method as 0.148 mg/ml, 0.313 mg/ml, 0.303 mg/ml, 0.127 mg/ml, 0.161 mg/ml, 0.079 mg/ml and 0.099 mg/ml respectively. Results: The maximum amylase production was obtained on the 2nd day of production whi...

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Dairy Farm Business Plan Template

Written by Dave Lavinsky

Dairy Farm Business Plan

You’ve come to the right place to create your Dairy Farm business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Dairy Farms.

Below is a template to help you create each section of your Dairy Farm business plan.

Executive Summary

Business overview.

Pleasant Hill Dairy Farm is a startup dairy farm located in Cashton, Wisconsin. The company is founded by Jon and Susan Hartford, former managers of a corporate dairy farm business. Jon and Susan managed the production of milk, cheese and yogurt on ten farms within their former business and successfully grew the business in eight years from 1M to 4M in yearly revenue. They are known for their respectful, flexible and visionary management style.

Pleasant Hill Dairy Farm will provide a fresh alternative to corporate dairy farming. Pleasant Hill Dairy Farm will provide a one-stop shop for artisan cheeses, goat and cow milk, goat, sheep and cow cheeses, and a variety of garden fresh produce. All are organically processed and prepared for individual customers who are seeking the purity of organic, wholesome milk, cheese and produce.

Product Offering

The following are the products and services that Pleasant Hill Dairy Farm will provide:

• Organic cow and goat milk
• Organic cream and half-and-half
• Organic artisan cow, sheep and goat cheeses
• Organic fresh daily produce from the Pleasant Hill garden
• Garden and farm tours for guests
• Event venue: garden and farm locations
• Volunteer “Farmer for a Day” Program

Customer Focus

Pleasant Hill Dairy Farm will target all residents and visitors within the region. They will target consumers seeking artisan cheeses and vendors who sell the cheeses. They will target wedding planners and other party organizers. They will target volunteers for special programs that highlight the community importance of privately-owned farms.

Management Team

Pleasant Hill Dairy Farm will be owned and operated by Jon and Susan Hartford. They’ve recruited their former associate, Tom Watkins, to be their new Field Manager. In addition, they’ve recruited Sheila Watkins to be the Office Manager and caretaker of forms, filing and administrative tasks.

Success Factors

Pleasant Hill Dairy Farm will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team of Pleasant Hill Dairy Farm
• Unique artisan cheeses, organic milks, fresh produce and other farm-fresh items.
• Event venues for small or large parties and weddings, each with sunset views, garden patios and comfortable seating for guests.
• Opportunities for consumers to experience small farming via “Farmer for a Day” and other introductory experiences.
• Pleasant Hill Dairy Farm offers the best pricing in town. Their pricing structure is the most cost-effective compared to the competition.

Financial Highlights

Pleasant Hill Dairy Farm is seeking $200,000 in debt financing to launch its Pleasant Hill Dairy Farm. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for Pleasant Hill Dairy Farm.

Company Overview

Who is pleasant hill dairy farm.

Pleasant Hill Dairy Farm is a newly established, owner-operated dairy farm in Cashton, Wisconsin. Pleasant Hill Dairy Farm will be the unique, cost-effective, and engaging authentic dairy farm for visitors from the city and the surrounding communities. Pleasant Hill Dairy Farm will provide a comprehensive menu of artisan cheeses, milks and product for all customers to purchase. Their unique approach includes an offer for visitors to become a “Farmer for a Day” to better understand the importance of private farming by families rather than large conglomerates.

  Pleasant Hill Dairy Farm will be able to produce a variety of flavorful organic cheeses, organic milk from cows and goats, and a dairy selection of fresh produce from the farm. In addition, visitors can experience the joys of farming and get a “hands on” feeling for the occupation by becoming farmers for one day. The addition of offering event venues captures the beauty of the farm and will add to the revenue of the farm by maximizing the use of the land and natural beauty of the area. The team of professionals are highly qualified and experienced in dairy farming and the hospitality industry.

Pleasant Hill Dairy Farm provides exceptional artisan cheeses not to be found elsewhere and organic milks that consumers are searching for. The staff prides itself on delivering the best customer service as they engage with enthusiasm on behalf of their private farm-based business.

Pleasant Hill Dairy Farm History

Pleasant Hill Dairy Farm was purchased in 2018 by Jon and Susan Harfford. They have grown the 20 acre farm and animal population to include 5 acres of farm produce available year round and livestock including 45 sheep, 22 goats and 35 dairy cows. The Hartfords built barns, tack rooms, offices and a small store to accommodate all that is necessary to provide and sell products to the general public. They also constructed event venue areas for special occasions to add to the revenue stream for their business. Their approach is that consumers will love the artisan flavors of organic cheeses and appreciate their organic milks. The produce sold will be fresh from their gardens every day, which is appealing to consumers.

Since incorporation, Pleasant Hill Dairy Farm has achieved the following milestones:

• Registered Pleasant Hill Dairy Farm, LLC to transact business in the state of Wisconsin.
• Has a contract in place for a 10,000 square foot office near the entrance of their farm Reached out to numerous contacts to include Pleasant Hill Dairy Farm as an event venue.
• Contacted wholesalers with invitations to sell Pleasant Hill cheeses and milks.
• Began recruiting a staff of six and office personnel to work at Pleasant Hill Dairy Farm.

Pleasant Hill Dairy Farm Products and Services

The following will be the products and services Pleasant Hill Dairy Farm will provide:

• Uncured fresh artisan cheeses
• Cured and aged artisan cheeses
• Goat, sheep and cow yogurt
• Fresh farm produce harvested daily
• Farm tours for visitors
• “Farmer for a Day” guest program
• Event venues for weddings and parties

Industry Analysis

The dairy farm industry is expected to grow over the next five years to over $66 billion. The growth will be driven by consumers’ interest and consumption of organic dairy products and produce. In addition, the growth will also be driven by the consumers’ interest in sustainable farming methods. Many, if not most, consumers also look toward future farming practices that embrace advanced agricultural practices and technology, while at the same time minimizing the ecological footprint.

While some of the costs will increase due to the expense of livestock welfare requirements and farming supplies, including feed, the costs will decrease as artisan cheeses are introduced and consumers become familiar with the specialized, rich flavors of organic cheese, milk and yogurt products. Farms will become more valuable as land ownership shifts, however the farms that include a variety of uses for their farms, such as event venues, community outreach programs and other offers, will see appreciation for farms by consumers also grow.

Customer Analysis

Demographic profile of target market, customer segmentation.

Pleasant Hill Dairy Farm will primarily target the following customer profiles:

• All residents and visitors in the region of Cashton
• Consumers shopping for organic produce and dairy products
• Consumers shopping for artisan cheeses
• Event organizers and wedding planners
• Consumers seeking a farming experience or expanded knowledge of the land

Competitive Analysis

Direct and indirect competitors.

Pleasant Hill Dairy Farm will face competition from other companies with similar business profiles. A description of each competitor company is below.

PureBloom Dairy Ranch

PureBloom Dairy Ranch is owned and operated by the Granger Corporation, a C-corporation based in Milwaukee, Wisconsin. The company includes over 100 employees, along with multiple ranch managers and field staff. PureBloom Dairy Ranch is owned in conjunction with 56 ranches within the corporation, where milk and milk products are derived from large herds of Holstein cows. The corporation sells the milk and milk products primarily to chain retail grocery stores within Wisconsin and several neighboring states.

PureBloom Dairy Ranch provides milk and milk products to grocery stores within the Cashton region and also provides milk to the school district and state government eateries under yearly contracts. The milk and milk products are the products of cows that have ingested antibiotics; the milk and milk products are not organic.

Evergreen Dairy Farm

Evergreen Dairy Farm is owned and operated by Tracy Hanson, who specializes in providing cheeses for aficionados around the nation. The cheese is made from the milk of goats and sheep and is often cured for over one year while ripening. Flavors of the Evergreen Farm cheeses include Blue River cheese, French Pastry Cream Cheese, and other select artisan cheeses. The cheeses sold by Evergreen Dairy Farm are offered at twice the price of Pleasant Hill Dairy Farm cheeses, due to long ripening times and the costs associated with creating small batch cheeses for ecommerce returns. The company was founded in 2018 and has a small, faithful following of cheese lovers from around the nation.

Townsend & Hatch Farms

Larry Townsend and Gerry Hatch formed the Townsend & Hatch Farms in 2015 to carry on their family tradition of dairy farming. The 126-acre farm holds sheep, cows, goats and llamas, all prized for their rich, creamy milk products. Townsend & Hatch Farms has a primary focus of providing high-end consumer goods to specialty providers within the US dairy industry. As such, they do not offer sales within the local area, but provide bulk orders of milk products to select customers in restaurants, upscale spas and resorts. Their pricing of products is generally 150% higher than that of other organic milk farmers. The reputation of Townsend & Hatch Farms has grown exponentially over the past eight years and the company has grown to a 3M enterprise with several ranch and field managers and office staff.

Competitive Advantage

Pleasant Hill Dairy Farm will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Pleasant Hill Dairy Farm will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide pure, organic milks and milk products at reasonable prices.
• Unique artisan cheeses available only at Pleasant Hill Dairy Farm
• Opportunities for community learning and engagement via “Farmer for a Day” programs and guest tours of the farm
• Farm fresh, organic produce offered daily
• Event venues of weddings and other occasions located in serene, beautiful surroundings
• Unbeatable pricing for their customers; they will offer the lowest pricing in the city.

Promotions Strategy

The promotions strategies for Pleasant Hill Dairy Farm are as follows:

Word of Mouth/Referrals

Pleasant Hill Dairy Farm has built up an extensive list of contacts over the years by providing exceptional service and expertise in their former managerial roles. The contacts will follow Jon and Susan Hartford to their new company and help spread the word of Pleasant Hill Dairy Farm.

Professional Associations and Networking

Jon and Susan Hartford will join various community and trade associations. This will increase their visibility within the artisan and organic milk products market.

Print Advertising

Two weeks prior to launch, a direct-mail piece will be sent to all Cashton city and regional residents, inviting them to visit Pleasant Hill Dairy Farm to tour the farm. They will also be offered discounted pricing for milk, yogurt and artisan cheeses. During the launch, visitors will be offered taste-testings of cheeses to encourage purchases.

Website/SEO Marketing

Pleasant Hill Dairy Farm will fully utilize their website. The website will be well organized, informative, and list all the services that Pleasant Hill Dairy Farm provides. The website will also list their contact information and list their available products for sale. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “organic milk” or “Dairy farm near me,” Pleasant Hill Dairy Farm will be listed at the top of the search results.

The pricing of Pleasant Hill Dairy Farm will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Pleasant Hill Dairy Farm. Operation Functions:

• Jon Hartford will be the owner and President of the company. He will oversee all staff and manage client relations.
• Susan Hartford will be the Vice President of the company. She will oversee the growth of the business in property development and herd growth. Jon and Susan have spent the past year recruiting the following staff:
• Tom Watkins, their former Ranch Manager, will become their new Field Manager.
• Sheila Watkins, a former associate, will become the Office Manager and caretaker of forms, filing and administrative tasks.

Milestones:

Pleasant Hill Dairy Farm will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to build office space
• 5/15/202X – Finalize personnel and staff employment contracts for the Pleasant Hill Dairy Farm
• 6/1/202X – Finalize contracts for Pleasant Hill Dairy Farm wholesale clients
• 6/15/202X – Begin networking at association and trade events
• 6/22/202X – Begin moving into Pleasant Hill Dairy Farm office
• 7/1/202X – Pleasant Hill Dairy Farm opens its doors for business

Pleasant Hill Dairy Farm will be owned and operated by Jon and Susan Hartford. They recruited Tom Watkins to be their new Field Manager. In addition, they’ve recruited Sheila Watkins to be the Office Manager and caretaker of forms, filing and administrative tasks.

Jon Hartford and Susan Hartford were formerly employees of a large conglomerate dairy ranch company. Together, they managed fields and operations for eight years. During that time, they became convinced that dairy farms could operate more efficiently and produce better quality milk and milk products by becoming smaller and privatized, while concnetrating on organic farming methods. Together, they took certification courses at the University of Wisconsin in Organic Farming Practices and both won their certifications.

Jon and Susan Hartford recruited Tom Watkins, a former associate Field Manager, to become the Field Manager for their new business. Tom is known as an exemplary field manager, highly-knowledgeable about the livestock in the fields, and responsive to all requests and needs within his position.

Sheila Watkins was also recruited to become the Office Manager. She worked with Jon and Susan for eight years and is known for her honesty and highly-organized administrative skills.

Financial Plan

Key revenue & costs.

The revenue drivers for Pleasant Hill Dairy Farm are the fees they will charge to consumers for their products and services.

The cost drivers will be the overhead costs required in order to staff Pleasant Hill Dairy Farm. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Pleasant Hill Dairy Farm is seeking $200,000 in debt financing to launch its dairy farm. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Customers Per Month: 205
• Average Revenue per Month: $30,250
• Office Build Out Costs: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, dairy farm business plan faqs, what is a dairy farm business plan.

A dairy farm business plan is a plan to start and/or grow your dairy farm business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Dairy Farm business plan using our Dairy Farm Business Plan Template here .

What are the Main Types of Dairy Farm Businesses? 

There are a number of different kinds of dairy farm businesses , some examples include: Freestall dairy farm, Drylot dairy farm, and Pasture-based dairy farm.

How Do You Get Funding for Your Dairy Farm Business Plan?

Dairy Farm businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Dairy Farm Business?

Starting a dairy farm business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Dairy Farm Business Plan - The first step in starting a business is to create a detailed dairy farm business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your dairy farm business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your dairy farm business is in compliance with local laws.

3. Register Your Dairy Farm Business - Once you have chosen a legal structure, the next step is to register your dairy farm business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your dairy farm business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Dairy Farm Equipment & Supplies - In order to start your dairy farm business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your dairy farm business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.