Dairy Farming Business

DAIRY FARMING BUSINESS- WHAT IS THE MARKET AND REQUIREMENT FOR ENTREPRENEURS TO INVEST IN THIS BUSINESS?

Investment in a business should be done by going through the whole explanation of the business and knowing all pros and cons of including in it. Otherwise, you might fall in a ditch during investing in the business. So we will give an all-inclusive report on investing in the dairy farming business. Commercial and small scale dairy farming in India is no doubt playing an important role in the total milk production and economy of our country. And almost all regions of India are suitable for setting up a dairy farming business. Most of the dairy farmers in India are raising animals in small scale traditional methods. They are not aware of modern farming methods and improved techniques for dairy farming. As a result, some farmers are losing their investment instead of being benefited. Proper business plan, well management, and care can ensure maximum production and profit from a dairy farming business.

Related Projects:- Milk & Dairy Products

NPCS’s full project report goals to offer you with all the expressive info required. The following are the conclusive points on why to participate in this business:

  • Benefits of starting dairy farming - Dairy farming business is an old-fashioned good that can easily be sold in almost every habitation of India. And dairy products market is the active whole year. It is eco-friendly and it doesn’t contaminate the atmosphere. Also, it doesn’t require highly expert labor. Great business chances for jobless educated fresh people. Proper preparation and administration can ensure supreme production. Highly useful natural Indian and foreign kinds are proper for farming permitting the climate and atmosphere of India.
INDIAN DAIRY MARKET BREAKUP

 

 

  • Primary Steps - Setting up a dairy farming business in India is not so easy. You have to go through several important steps for setting up dairy farming in India. Consider the following tips while starting a dairy farming business in India.
  1. Choose the goal and objective of your farm contains accommodation, feeding, , amount of animals to be sustained, etc.
  2. Visit some marketable dairy farms and talk over with the knowledgeable farm holders about dairy farming systems and secrets. to examine various farming schemes and extremely extend your knowledge.
  3. Starting a farm at an industrial scale, then try to work inside a present farm for six months.
  4. Analyze the availability of food and its costs. You also have to stock food for opposing seasons.
  5. Hire hardworking labor with some applied experience. Visit your nearest market occasionally and observe the price and demand for live animals and dairy products.
  6. Keeping good condition with market help you for getting the suitable value of your products and purchasing essential supplies.
  • Feeding - always try their regular food. Because green food helps the animal to produce more milk and helps the creator to reduce nourishing costs. Dairy animals need more water than other animals. Generally, a milk-producing animal requires five liters of water for producing one-liter milk. So, always serve them a sufficient quantity of clean and fresh water.

Related Books:- Milk Processing, Dairy & Dairy Products, Poultry Industries

MILK DEMAND-SUPPLY PROJECTION IN INDIA

S.No. Year/Period Supply (In million tonnes) Demand (In million tonnes)
1.) 2016-2017 162 148
2.) 2017 -2018 194 174
3.) 2018-2019 203 182
4.) 2019-2020   276 246
5.) 2020-2021 289 256

  • Housing - Good habitat play a substantial role in keeping the animal healthy, sicknesses free and productive Generally 40 square feet inside the hut and 80 square feet open space is compulsory per animal. In small scale manufacture for 20 animals, you have to ensure obtainability of 3000 square feet land area. For medium-scale producers with 100 animals, 15,000 square feet space is required. Essential facilities include proper ventilation, sufficient flow of fresh and clean air, sufficient space, etc.
  • Management and Current Challenges -. Try to keep the animals free from all categories of cattle diseases. Inoculate them timely. Offer them nutritious food and clean water frequently. Make a standard of essential drugs and other capitals. Dairy product has huge response through India. You can easily sell your goods in almost every residences in our country. High substructure and feeding cost is the main restraint of dairy farming. Most of the farmers don’t serious about the total expenditure and profit from this business. Getting projected milk production to be governed by the proper breeding process. Dairy farming requires careful, proper care, good organization and you have to be attentive always for industrial purpose, you have to employ several practiced people with high pay.

Every business goes with some additional advantages and problems. On average, commercial dairy farming in India is profitable. If you want to start this business, try to learn more about it and visit as many farms as possible.Finally, this is a good sign for the future of our dairy farming. The Government needs to essence on attracting investors. India can prove to be a world power in pending years by coming investment in this sector elegantly.

Related Videos:- Milk & Dairy Products

NPCS’s project consultancy and market investigation fields put frontward the developing opportunity for the dairy farming business at an industrial level.

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ABOUT NPCS

 

NIIR PROJECT CONSULTANCY SERVICES (NPCS) is a reliable name in the industrial world for offering integrated technical consultancy services. NPCS is manned by engineers, planners, specialists, financial experts, economic analysts and design specialists with extensive experience in the related industries.

Our various services are: Detailed Project Report,  Business Plan for Manufacturing Plant, Start-up Ideas, Business Ideas for Entrepreneurs, Start up Business Opportunities, entrepreneurship projects, Successful Business Plan, Industry Trends, Market Research, Manufacturing Process, Machinery, Raw Materials, project report, Cost and Revenue, Pre-feasibility study for Profitable Manufacturing Business, Project Identification, Project Feasibility and Market Study, Identification of Profitable Industrial Project Opportunities, Business Opportunities, Investment Opportunities for Most Profitable Business in India, Manufacturing Business Ideas, Preparation of Project Profile, Pre-Investment and Pre-Feasibility Study, Market Research Study, Preparation of Techno-Economic Feasibility Report, Identification and Section of Plant, Process, Equipment, General Guidance, Startup Help, Technical and Commercial Counseling for setting up new industrial project and Most Profitable Small Scale Business.

NPCS also publishes varies process technology, technical, reference, self employment and startup books, directory, business and industry database, bankable detailed project report, market research report on various industries, small scale industry and profit making business. Besides being used by manufacturers, industrialists and entrepreneurs, our publications are also used by professionals including project engineers, information services bureau, consultants and project consultancy firms as one of the input in their research.

Our Detailed Project report aims at providing all the critical data required by any entrepreneur vying to venture into Project. While expanding a current business or while venturing into new business, entrepreneurs are often faced with the dilemma of zeroing in on a suitable product/line.

 


And before diversifying/venturing into any product, wish to study the following aspects of the identified product:


• Good Present/Future Demand
• Export-Import Market Potential
• Raw Material & Manpower Availability
• Project Costs and Payback Period


We at NPCS, through our reliable expertise in the project consultancy and market research field, Provides exhaustive information about the project, which satisfies all the above mentioned requirements and has high growth potential in the markets. And through our report we aim to help you make sound and informed business decision.

 

The report contains all the data which will help an entrepreneur find answers to questions like:

• Why I should invest in this project?
• What will drive the growth of the product?
• What are the costs involved?
• What will be the market potential?


The report first focuses on enhancing the basic knowledge of the entrepreneur about the main product, by elucidating details like product definition, its uses and applications, industry segmentation as well as an overall overview of the industry sector in India. The report then helps an entrepreneur identify the target customer group of its product. It further helps in making sound investment decision by listing and then elaborating on factors that will contribute to the growth of product consumption in India and also talks about the foreign trade of the product along with the list of top importing and top exporting countries. Report includes graphical representation and forecasts of key data discussed in the above mentioned segment. It further explicates the growth potential of the product.

The report includes other market data like key players in the Industry segment along with their contact information and recent developments. It includes crucial information like raw material requirements, list of machinery and manufacturing process for the plant. Core project financials like plant capacity, costs involved in setting up of project, working capital requirements, projected revenue and profit are further listed in the report.


Reasons for buying the report:

• This report helps you to identify a profitable project for investing or diversifying into by throwing light to crucial areas like industry size, demand of the product and reasons for investing in the product.

• This report provides vital information on the product like its definition, characteristics and segmentation.

• This report helps you market and place the product correctly by identifying the target customer group of the product.

• This report helps you understand the viability of the project by disclosing details like raw materials required, manufacturing process, project costs and snapshot of other project financials.

• The report provides forecasts of key parameters which helps to anticipate the industry performance and make sound business decision.

 

Our Approach:


• Our research reports broadly cover Indian markets, present analysis, outlook and forecast.

• The market forecasts are developed on the basis of secondary research and are cross-validated through interactions with the industry players. 

• We use reliable sources of information and databases.  And information from such sources is processed by us and included in the report.

 

Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

 

 

Ø  Introduction

·         Project Introduction

·         Project Objective and Strategy

·         Concise History of the Product

·         Properties

·         BIS (Bureau of Indian Standards) Provision & Specification

·         Uses & Applications

 

Ø  Market Study and Assessment

·         Current Indian Market Scenario

·         Present Market Demand and Supply

·         Estimated Future Market Demand and Forecast

·         Statistics of Import & Export

·         Names & Addresses of Existing Units (Present Players)

·         Market Opportunity

 

Ø  Raw Material

·         List of Raw Materials

·         Properties of Raw Materials

·         Prescribed Quality of Raw Materials

·         List of Suppliers and Manufacturers

 

Ø  Personnel (Manpower) Requirements

·         Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel

 

Ø  Plant and Machinery

·         List of Plant & Machinery

·         Miscellaneous Items

·         Appliances & Equipments

·         Laboratory Equipments & Accessories

·         Electrification

·         Electric Load & Water

·         Maintenance Cost

·         Sources of Plant & Machinery (Suppliers and Manufacturers)

 

Ø  Manufacturing Process and Formulations

·         Detailed Process of Manufacture with Formulation

·         Packaging Required

·         Process Flow Sheet Diagram

 

Ø  Infrastructure and Utilities

·         Project Location

·         Requirement of Land Area

·         Rates of the Land

·         Built Up Area

·         Construction Schedule

·         Plant Layout and Requirement of Utilities

 

Project at a Glance

Along with financial details as under:

 

  •     Assumptions for Profitability workings

  •    Plant Economics

  •    Production Schedule

  •    Land & Building

            Factory Land & Building

            Site Development Expenses

  •    Plant & Machinery

             Indigenous Machineries

            Other Machineries (Miscellaneous, Laboratory etc.)

  •    Other Fixed Assets

            Furniture & Fixtures

            Pre-operative and Preliminary Expenses

            Technical Knowhow

            Provision of Contingencies

  •   Working Capital Requirement Per Month

             Raw Material

            Packing Material

            Lab & ETP Chemical Cost

           Consumable Store

  •   Overheads Required Per Month And Per Annum

         Utilities & Overheads (Power, Water and Fuel Expenses etc.)

             Royalty and Other Charges

            Selling and Distribution Expenses

  •    Salary and Wages

  •    Turnover Per Annum

  •   Share Capital

            Equity Capital

            Preference Share Capital

 

  •    Annexure 1:: Cost of Project and Means of Finance

  •    Annexure 2::  Profitability and Net Cash Accruals

                Revenue/Income/Realisation

                Expenses/Cost of Products/Services/Items

                Gross Profit

                Financial Charges     

                Total Cost of Sales

                Net Profit After Taxes

                Net Cash Accruals

  •   Annexure 3 :: Assessment of Working Capital requirements

                Current Assets

                Gross Working. Capital

                Current Liabilities

                Net Working Capital

                Working Note for Calculation of Work-in-process

  •    Annexure 4 :: Sources and Disposition of Funds

  •    Annexure 5 :: Projected Balance Sheets

                ROI (Average of Fixed Assets)

                RONW (Average of Share Capital)

                ROI (Average of Total Assets)

  •    Annexure 6 :: Profitability ratios

                D.S.C.R

                Earnings Per Share (EPS)

               

             Debt Equity Ratio

        Annexure 7   :: Break-Even Analysis

                Variable Cost & Expenses

                Semi-Var./Semi-Fixed Exp.

                Profit Volume Ratio (PVR)

                Fixed Expenses / Cost 

                B.E.P

  •   Annexure 8 to 11:: Sensitivity Analysis-Price/Volume

            Resultant N.P.B.T

            Resultant D.S.C.R

   Resultant PV Ratio

   Resultant DER

  Resultant ROI

          Resultant BEP

  •    Annexure 12 :: Shareholding Pattern and Stake Status

        Equity Capital

        Preference Share Capital

  •   Annexure 13 :: Quantitative Details-Output/Sales/Stocks

        Determined Capacity P.A of Products/Services

        Achievable Efficiency/Yield % of Products/Services/Items 

        Net Usable Load/Capacity of Products/Services/Items   

       Expected Sales/ Revenue/ Income of Products/ Services/ Items   

  •    Annexure 14 :: Product wise domestic Sales Realisation

  •    Annexure 15 :: Total Raw Material Cost

  •    Annexure 16 :: Raw Material Cost per unit

  •    Annexure 17 :: Total Lab & ETP Chemical Cost

  •    Annexure 18  :: Consumables, Store etc.,

  •    Annexure 19  :: Packing Material Cost

  •    Annexure 20  :: Packing Material Cost Per Unit

  •    Annexure 21 :: Employees Expenses

  •    Annexure 22 :: Fuel Expenses

  •    Annexure 23 :: Power/Electricity Expenses

  •    Annexure 24 :: Royalty & Other Charges

  •    Annexure 25 :: Repairs & Maintenance Exp.

  •    Annexure 26 :: Other Mfg. Expenses

  •    Annexure 27 :: Administration Expenses

  •    Annexure 28 :: Selling Expenses

  •    Annexure 29 :: Depreciation Charges – as per Books (Total)

  •   Annexure 30   :: Depreciation Charges – as per Books (P & M)

  •   Annexure 31   :: Depreciation Charges - As per IT Act WDV (Total)

  •   Annexure 32   :: Depreciation Charges - As per IT Act WDV (P & M)

  •   Annexure 33   :: Interest and Repayment - Term Loans

  •   Annexure 34   :: Tax on Profits

  •   Annexure 35   ::Projected Pay-Back Period And IRR