Dairy Industry is one of the largest businesses in India next to Agriculture. The turnover of “Milk & Milk Products” in the year 2006 was valued @ Rs. 2, 27,000 CRORES in which 55% accounted for liquid milk. This business has been growing @ 4 - 5% every year which is certainly faster than Agriculture.

Dairy Industry is one of the most promising businesses in India. This is a business wherein the returns (in terms of money) will be available to the Farmer within one month.

Today none other business can guarantee such Payments.

Dairy Business has been going on in the Country for innumerable number of years but is not at all being done scientifically.

The farmers are interested in dairy since it requires no formal education & has been in vogue since times immemorial. At the same time it is imperative that the approach to this farming needs to be changed by way of educating farmers & guide them both practically as well as commercially which will help them to economize their methods enabling them to make better ROI.

The dairy businesses done with proper Scientific Management will certainly guarantee returns of 25-32% of the investment. It is also possible to upgrade this business with other businesses viz. turning Dung into Vermicompost, which can be a real value addition, as it will help improving the agricultural output.

Major benefits of Dairy Farming :

1. Dairy farming is not at all dependent upon rainfall. Dairy farming is always possible even when there is NO RAINFALL whereas Agriculture is exclusively dependent on rainfall.
2. Selling rate of milk is fixed (has not fallen anytime even if the yield is surplus) even if it is sold to Dairy Cooperatives that exist all over the state.
3. The Payments to the milk producer are assured within 30 days maximum. Dairy farming is the only industry wherein there is regular income (at the most within 30 days) and a guarantee.
4. In dairy (unlike Agriculture) the Middlemen do NOT control the Sale prices. Constant price of Milk throughout the Year & has remained so for past 50 years.
5. Demand for Milk is increasing day by day. There is a high demand from cities as well as Industrial zone cities: consumption is on the rise by both vegetarians as well as non-vegetarians.
6. Every byproduct (dung / urine) can be sold.
7. Veterinary Aid available at most of the villages in India.
8. No direct competition from the foreign counterparts.
9. Incentives available from the Government both Central as well as State.
10. Marketing of the end product i.e. Milk is very easy (as compared to any other business) with no expenses incurred for marketing channels: no shop required.
11. Additional income is possible from byproducts viz. Manure; can be used to produce biogas on which household cooking can run OR dung can be used for Vermicomposting : which is a good source of fertilizer: useful in Agriculture. Possibility of generating Electricity also if the no. of animals is sizeable.
12. Easy availability of Feed & fodder all year round

Why Dairy business goes into losses….

It is commonly seen that most of the Farmers who keep animals for Milk have very little or NO idea about the expenses (per day) involved in raising the animals. It is interesting to note that the farmer is even unaware of the fact that the feeding cost of his animal comprises of more than 80% of the total cost of raising the animals. Perhaps the main reason for this may be that the farmer grows the majority of the green fodder in his own land & has never bothered about its cost.

At the same time it is seen that farmers have been following many myths in Dairy farming viz.

1. The animal has to be given WATER only twice a day.
2. More the animal eats; more will be the Milk production.
3. Only Green grass feeding is required for Milk production.
4. Natural Service is better than Artificial Insemination
5. The animal does not require mineral Mixture.
6. Feeding of oral Calcium will improve the Milk yield
7. It is necessary to give Jaggery & Colostrums to Cow etc.

Unfortunately this is scientifically very wrong. It leads to decreased milk yield making the farmer face more LOSSES.
Secondly it is also seen that a Dairy Farmer is not aware of the Economics’ of his day-to-day business. This is because Dairying has been a traditional form of business, which is being carried on by generations together. The pattern particularly of the feeding & watering has been quite the same for a long time.

Whereas in Poultry the improvement has taken place in a short span of time due to help of Science & technology, this is yet to see the light of the day in Dairy farming. A few years ago it was seen that a broiler chicken took 45 days to attain the weight of 1.5 kg but today only 32 days are more than sufficient to attain the same weight. This has been made possible with the help of scientific knowledge (w.r.t Management & Nutrition) being applied to the Poultry to improve its genetic potential. The same unfortunately cannot be said for the Dairy Farming industry. One of the major causes for this is that Dairy Farming is being looked at with a holistic view. The Cow is considered to be sacred with least emphasis being placed upon its productivity.

It is seen that most of the new entrants in the Dairy farming get mislaid by Companies making Milking Machines which give them false economics & by virtue of which the farmer
incur losses & close down their farms. These types of examples deter the further entrants in the Dairying.

Lastly it will be ideal for the new entrants into this field to get help from the Consultants who are well versed with all the aspects of Dairy farming viz.

1. Selection of proper (breed) animals for maximum productivity
2. Construction of proper Cattle Sheds

The costs incurred in 1 & 2 will be one time only & are depreciable.

However all the costs (given below in 3 - 7) as given below are Recurring & (do account for more than 80% of the farming costs) have to be controlled from day ONE to see that the farms make profits.
3. Management practices as regards to:-
• Economics of Dairy Farming
• Importance of balanced Nutrition
• Importance of growing greens
• Reproduction (Reproductive Cycle) Management
4. Nutrition: Feeds & Feeding
5. Preventive health Management: for preventing occurrence of diseases in the farm
6. Optimization of profits by value addition of Milk; making byproducts etc…
7. Productivity Enhancement: This will lead to farmers getting more milk from same number of animals , which will improve his profitability.