Commercial Dairy Farming

Dairy Farming in India is having a profitable business. Milk production business is in demand in every state of India and in the whole world. Animals (cow and buffalo) are available in India and labour cost is very low in India to produce milk with hands or by machines.

It  is seen at many places that a Dairy Farmer (Kisan) is not  aware of  the  economics of his day to day business. This is because Milk production/Dairy  has  been a traditional form of business, which  is  being carried  on by generations by generations, as this need not need huge capital investment and skill. The pattern particularly of the feeding & watering has been quite the same for a long time.

It  is  seen that many of  the  Dairy Farmers who keep animals for Milk have very little or NO idea about the expenditures (per day/week) 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. Still, Dairy farming business is huge in demand and quite a profitable venture. New entrepreneurs can well venture into this trade.

Each ‘EIRI’ MARKET OVERVIEW CUM DETAILED TECHNO ECONOMIC FEASIBILITY REPORT (Complete Report) tentatively covers
•    Introduction
•    Properties
•    BIS (Bureau of Indian Standard) Specifications & Requirements
•    Uses & Applications
•    Present Indian Market Position (Not Survey)
•    Export & Import Statistics Data
•    Names and Addresses of Existing Units (Present Manufactures)
•    List of Plant & Machineries
•    Miscellaneous Items and Accessories
•    Instruments, Laboratory Equipments and Accessories
•    Electrification, Electric Load and Water
•    Maintenance, Suppliers/Manufacturers of Plant and Machineries
•    Dairy farming method/Flow Sheet Diagram
•    List of Raw Materials
•    Availability of Raw Materials
•    Requirement of Staff & Labour
•    Personnel Management
•    Skilled & Unskilled Labour
•    Requirement of Land Area
•    Built up Area
•    Plant Layout
Along with financial details as under:
•    Capacity of the Project
•    Land & Side Development Exp.
•    Buildings Cost
•    Plant & Machineries
•    Misc. Fixed Assets
•    Technical Know how Fees & Exp.
•    Preliminary Expenses
•    Pre-operative Expenses
•    Provision for Contingencies
Below mentioned financial statements (Annexure) will be  for 5 to 10 Years
•    Annexure:: Cost of Project and Means of Finance
•    Annexure:: Output, Profitability and Cash Flow Chart
•    Annexure:: Assessment of Working Capital requirements
•    Annexure:: Sources of Finance
•    Annexure:: Balance Sheets
•    Annexure:: Break-Even Analysis and profitability analysis.
•    Annexure:: Quantitative Details-Output/Sales/Stocks
•    Annexure:: Sales Realisation
•    Annexure:: Raw Material Cost
•    Annexure:: Other Raw Material Cost
•    Annexure:: Packing Material Cost
•    Annexure:: Consumables, Store etc.,
•    Annexure:: Employees Expenses
•    Annexure:: Fuel Expenses
•    Annexure:: Power/Electricity Expenses
•    Annexure:: Repairs & Maintenance Exp.
•    Annexure:: Other Mfg. Expenses
•    Annexure:: Administration Expenses
•    Annexure:: Selling Expenses
•    Annexure:: Depreciation Charges – Profitability
•    Annexure:: Depreciation Charges
•    Annexure:: Interest and Repayment – Term Loans
•    Annexure:: Tax on Profit
•    Annexure:: Assumptions for Profitability workings
•    Annexure:: Assessment of Working Capital