How to start a dairy farm business in India ?- Here’s the full guide

Author :
Traffic Tail
| Updated On :
July 20, 2023

Dairy farming is not a new business. It has been there for centuries. It is just passing on from generation to generation. Under this business, animals are raised to produce milk. Animals like a cow, buffalo, or goat. As the demand for milk is almost everywhere in every part of this world, so this business is getting a good pace. 

Earlier the dairy farm business was there, but it is being managed with old traditional techniques. Now with the new advanced techniques, this business is specialized in so many things. 

How to start a dairy farm business in India

Producing milk is not as easy as it looks, it requires a lot of care and feeding to the animals. Also, it is very important to take care of every need of the animal besides your own. 

The most common practice of dairy farming is being performed in rural areas, which run this business to earn a livelihood. But from the last many years, dairy production is being increased in other regions of India. There has been seen a spike in dairy production in India. The dairy farming business is an important part of our economy just like the agriculture.

If you want to be the one to add value to the economy of our country, then read this whole article to know how you can start a dairy farming business in India

What is the dairy farm business?

It refers to the type of agriculture business which involves in the production of milk from dairy animals which are cows, buffalo, or goat. A dairy farm is a place where these domestic animals are being taken care of and use to produce milk.

The dairy farm business is incomplete without the animals who produce the milk every day, which is used in making further dairy products and sold out in the market. 

We know, how much we Indians love to have dairy products almost daily in our day-to-day lives. Even some part of India like Punjab uses one of the dairy products in every food they eat which is Ghee. They eat ghee in everything they eat. It’s like they cannot live without eating ghee and butter. 

Cattle farm

Also, dairy products are rich in protein and vitamins and always consider good for health, if they are less in fat because fat is not considered good for our healthy life. So, the dairy worker takes care of everything while working on this business. 

Can the dairy farm business be profitable?

It is almost everyone’s question before starting not just dairy farm business but every business because we are human beings, and we need certainties. 

There is no doubt that this business is worth everything. It is profitable and worth running. But only if you are serious enough to make it big. Because if you will continue to run it on small scale it will remain on a small scale if you want it to become big and be a part of the economy you must put effort into it. 

The cost of setting up this business would not be much but the profit out of it would be tremendous if you work smartly. You know the demand for dairy products is high, so try to make your dairy products reach the market. 

If you are working on this business as your side business, then it hardly demands any efforts but if you are wholly depending on this business then you have to work hard for this. You must only focus on growing your business. 

Why am I saying it is profitable? Because dairy products are being used in everything, from home to any restaurant business, dairy products are in demand daily. So, to cater to the daily need of dairy products people depends on dairy farms. 

Benefits of dairy farm business

When we start something, we look into the benefits it would give us to make sure that we know everything before starting the business. So, that we must be ready with everything it needs. Here is the list of benefits we will be having from this business;

  1. Less investment– To start this business, there is a requirement of very little investment in comparison to any other business. You can start your business with less investment and increase it later when you started to earn.

    Also, this business is traditional, and you don’t have to use all the advanced techniques at the start, you can implement them later after making sure that you are good to experiment with anything.

  2. Eco-friendly– You know dairy farm business falls under agriculture which is an eco-friendly practice. It doesn’t create any pollution and is purely safe to start. It doesn’t affect the mother earth and the beautiful nature around us. 

  3. Unskilled labor– For starting this business you don’t need highly skilled labor. You can easily appoint someone from a rural region who knows how to take care of domestic animals and what to feed them. So, starting with unskilled labor would not be a bad idea. It will be affordable and worthy.

  4. Business opportunities– As you know, there are a bunch of people who are unemployed and seeking to work. So, this business can provide them with employment. This would create a great opportunity for young people to start their career managing this business.

  5. Continuous demand– You know the demand for dairy products never goes off, even the product becomes costlier. Some people need milk daily irrespective of what price it is being sold. So, that is why this business is profitable in the market. It has continuous demand in the market.

You May Also Like These Articles

Difficulties of dairy farm business

Everything has difficulty in one way or other. Have you seen anything without any difficulty? I guess, No. I have never seen, too. Even I have seen people growing strong out of their difficulties.

When you are running a business, there is going to be difficulties for sure, only you must know how to tackle them. To cater to those difficulties, you must know what kind of difficulties you are going to have. So, here is the list of difficulties which this business is going to face;

  1. No proper calculation– Some people don’t calculate properly the total cost they are going to bear to run this business. They calculate one by one when it incurred. I think this is the wrong way of deciding how much you are going to spend. In this way, they forget that the feeding will cost them, housing will cost them, breeding will cost them and so many more things. They will lose profit in this way. 

  2. Lack of management– Generally, there are not many people involved in the dairy farm business. They think that they can run it with fewer people, which results in poor management. Because running a business is not an easy task, it is just like any other business in the market.

    You have to manage the commercial accounts of your business, takes care of animals, feed them on time, arrange their food, etc. You will need to do all this and for this, you need a group of people to do separate things. 

  3. Perishable products– You know the things made up of milk are generally perishable. They need proper preservation and for that, you need to process things early/on time. So, taking care of this fact you must work constantly. You cannot afford to hold anything. 

Sign up for our exclusive newsletters.

Subscribe to check out our popular Tips & Tricks for business owners.

Requirements of Dairy farm business

When you start a business, you always find yourself confused with the requirements of the business. And as you know, requirements vary from business to business. You cannot use the same set of requirements for every kind of business. So, here I am listing the requirements of the dairy farm business;

  1. A piece of Land– The first and the most important thing you need while starting this business is Land. Without land, you cannot perform the activities you require to do to run this business. The area of land depends on the number of animals you have. Also, you require land to grow green fodder for your animals, because that’s what they going to eat.

  2. A shed– Before you start doing this business, you must have a place where the animals will live that will be called a shed. A shed will be a place where animals will normally be seated and rest which is fully ventilated with a good drainage facility. 

  3. A lot of water– As you know, water is the necessity of life without water we cannot think of any life on earth. So, to start this business you are going to need a lot of water for proper drainage, for animals to drink, bathe, and to grow crops or fodder in the field for animals. You must make sure that you have a proper water supply to run this business.

  4. A fodder– Fodder in simple words is the food of your domestic animals. When you are starting this business, you must make sure that you feed them enough food. With having enough and healthy food they will yield a good amount of milk. So, fodder management is necessary for feeding them on daily basis.

  5. Selection of Breed– When you are going to start this business, you also have to select a breed that yields a good amount of milk. So, selecting the right breed becomes important for your business to grow. 

  6. A few laborers– You cannot deny the fact that you are going to hire a few laborers to help you run this business. You cannot run this business on your own, you need to hire people who are good at handling the dairy farm.

  7. Vaccinate the animals– If you want your cattle to be disease-free, you need to vaccinate your animals with a proper vaccination schedule. For this, you will need the help of a veterinary doctor. This is the right way to keep your animal’s diseases free. 

Steps on how to start a dairy farm business in India

We are on verge of completing our article, but it cannot be completed without a few steps to follow. These steps will guide you towards your ultimate goal of opening a dairy farm business. So, without wasting any time let’s just start with our steps;

Learn about the dairy farm business

This is the most important step before jumping into this business or any business, you must study and learn about the business you are going to start. When you directly start a business without grabbing any in-depth knowledge in it, you fail to cope up with things that come your way.

So, the right way is to learn about what the dairy farm business is, what are the things you should keep in mind while doing it, and how you will manage the things. Also, you can study breeds and which animal to choose for this business. 

Make a business plan

After you have studied the dairy farm business, it’s now time to make a business plan about the same. Under the business plan, you decide so many things and you jot them down. For having a more understanding of this business, you should visit the dairy farm around you and take down important things which you can also consider in your business.

Cow milk supply

Draft a business plan stating all the things you need, how you are going to start, what further things you will need, and how you are going to manage the things which come in the way. This is what the business plan going to be about. 

Research the Market

Before starting a business, you must know which market you are going to deal with and which market you are targeting. Otherwise, it cannot be possible to target the right market without researching about the same.

You must dig deep down to research every bit and piece of the market you are going to deal with. Only then you will be able to choose the right market for your business to grow. With the right knowledge of the market, you will know how much the demand is there and of which dairy product. It is important to know that the product you are going to launch is in demand or not. 

Deciding breeds

Another important step of the dairy farm business is choosing a breed that can provide you with enough milk that you can do business with. Deciding which breed you are going to have is an important aspect of this business. Some of the Indian cow breeds are Sahiwal, Gir, Tharpakar, Red Sindhi, which provide quality milk.

Also, you have to make sure while deciding the breed that the cow you are choosing matches the climate you are having in your region. All these things must be kept in mind while choosing a breed because it decides the future of your business which depends on the breed you choose. 

Choose to house

Just like we live in a house, they also live in a house which you provide them. The shed must be properly built, and the floor must be made with bricks and should not be slippery. There must be a proper drainage system so that their excrete must not lie there all the time.

There must be proper hygiene for them. Besides this, all the facilities of their food and water must be there. So, make sure that you provide them with good housing and treat them like a family member. 

Feed good Food

Another important thing to keep in mind that you feed them healthy and full of nutrients food which keeps them healthy and diseases free. The fodder you choose to crop must have healthy ingredients in it.

Also, you have to feed them in the right amount that’s what they require while yielding milk. Focus on giving more and more green food. With the right food, they also need a good amount of water, if you want them to yield a good amount of milk then you also have to feed them a lot of water. Cows and other dairy animals demand more water than any other animal. 

Care and manage the cattle

Taking care of your cattle is an important thing to do in this business. You have to manage the cattle properly and take care of their needs every day. For example, noting the time when you feed them when you vaccinate them when you clean their place when you take them for a bath, and so many other things.

Try to keep their place clean and hygienic, so that they don’t get any diseases. Give them food that has enough nutrients and protein. Also, keep an eye on them what they are eating besides their regular food. Because a lot of time the cows eat unnecessary things like garbage or any polythene-like stuff whichever lies in front of them.

Plan investment and cost

Here comes the thing which you have to make sure of before going ahead. You must calculate the cost you will incur and the investment you are planning to invest. Generally, the dairy farm business doesn’t need a lot of investment because for this business you don’t need any luxury things, it is part of agriculture that doesn’t require a lot of investment.

On the other hand, you must calculate the cost you are going to incur for buying cows and constructing their shed. Also, when you will hire a few people to work with you and manage things then you also have to pay them, which will be your expense. As you will grow, the money you will earn can invest in the advanced things you need for your business to grow more. 

Registering the business

Without this step, you cannot go further. If you think that it is part of agriculture and it doesn’t require registration, then you are completely wrong. It is just like other businesses and just like those businesses it also requires registration under the valid Act.

You also need to have a valid license for running the business. And if you are selling dairy products to consumers from your area then you need to have a Food Safety and Standards Authority of India license. 

Make a website

Now, knowing how you can start the business it’s time to understand how you can run it in the right way. To reach your audience, to reach the people you want to sell the products, you need to have a website where you can share the details and important particulars of your business.

Dairy farm website

Through a website, you can gain a lot of audience and prospects for your business. If you don’t know how to start a website and run it, you can contact us at Traffic Tail. We can make your website and earn you a lot of traffic. We have been in this business so long and know every aspect of it. 

From the above points, I hope you have got an idea of where to start and how to start the dairy farm business

Is marketing important for the dairy farm business?

I guess yes. It is important in every part of the business. I think without marketing your business may sound baseless. Because marketing creates a base for your business. That’s how people will be going to know about you.

It doesn’t matter what kind of business you are into unless you portray your business in front of your customers. There is no business without customers and no customers without marketing. It is important to find out the way of marketing, whether you want it on a large scale or want to target a few people. Marketing also helps you in targeting the right market for your business. 

Here are a few points on how you can do marketing under this business;

  1. Promotion– Promotion is the most common way of marketing your business. You can promote your website or maybe through words of mouth by telling a few people about your business and who in turn will tell some more people about it. You can also promote your business by attending a few events, where you can share your dairy products with customers who can become your prospects. 
  2. Advertisement– Another mode of marketing where you advertise your goods in front of people so that they can make a move to buy. The advertisement needs planning and proper preparation for targeting your customers in such a way that they end up buying your products. You can do advertisements by posting about your business at different places. You can advertise through billboards, notice boards, and shops in your area by printing posters of your business. 
  3. Online marketing– This is a new way of doing marketing, which is adopted by a lot of successful businesses because they know where their customers are mostly present. You can do this by starting a website as we have discussed above. Start pitching your customers online. In this way, you can market your business as well as build your brand. Once you will build your brand online, you will be going to have a lot of leads for your business. 

This is how marketing can be done in three different ways. You can choose any of the ways which fit you best. 


After reading this blog, you must be having a lot of questions which you will be going to find in the form of FAQ below. Besides this, you must get an idea of how you can start a dairy farm business.

Everything has been written in a precise manner to make you completely understand how it goes. There is nothing to worry about starting a dairy farm business, even it can be the best choice because this business is very profitable. If you stuck somewhere, you could check this blog on the website of Traffic Tail

Frequently Asked Questions

Q1. What is the dairy farm business?

Ans. Dairy farm business refers to the type of agriculture business which involves in the production of milk from dairy animals which are cows, buffalo, or goat. A dairy farm is a place where these domestic animals are being taken care of and use to produce milk. It is one of the parts of agriculture. 

Q2. Is a dairy farm business profitable?

Ans. Yes, the dairy farm business is profitable. Only if you learn the ways to make great profits out of it. As you know, the demand for milk and milk-related products is very high. They are in demand irrespective of the price which is the plus point of this business. Also, these products are used in everything which adds to their demand more. 

Q3. What are the benefits of the Dairy farm business?

There are numerous benefits of dairy farm business which are written below; 

  1. Less Investment
  2. Eco-friendly
  3. Unskilled labor
  4. Business opportunities
  5. Continuous demand

Q4. What are the difficulties faced by the dairy farm business?

Ans. Everything has its problems which you must tackle while running a business. So, here is the list of a few of them;

  1. No proper calculation
  2. Lack of management
  3. Perishable product

Q5. What do I require to start the dairy farm business?

Ans. Every business has its requirements, and we are here to help you with your confusion. Here is the list of things you require to start a dairy farm product.

  1. A piece of land
  2. A shed
  3. A lot of water
  4. A Fodder
  5. Selection of breed
  6. A few labours
  7. Vaccination to animals 

These are the major requirements that you cannot compromise. Besides this, you may need a few more things which you will get to know with time. 

Q6. How can I start my dairy farm business in India?

Ans. Here is the short and crisp guide with steps to follow for starting your dairy farm business;

  1. Learn about the dairy farm business
  2. Make a decision plan
  3. Research about the market
  4. Decide the breed
  5. Choose a house
  6. Feed good food
  7. Care and management of the cattle
  8. Plan investment and cost
  9. Registration of business
  10. Make a website

Q7. How can I market my dairy farm business?

Marketing is the base of a business. If you want to make a strong business base, you have to focus on the marketing of your business. You can do marketing in the following ways;

  1. Promotion
  2. Advertising
  3. Online marketing

These are the most common ways of marketing your business among your customers. 

Related Posts

Request a FREE Proposal Now!

Just fill in the form, and let our experts handle the rest. Here’s what will happen next: