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Dairy Farm Business Plan Template

Written by Dave Lavinsky

dairy farm business plan

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.

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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.

Click here to see how a Growthink business plan writer can create your business plan for you.

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?

Other Helpful Business Plan Articles & Templates

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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.

Pleasant Hill Dairy Farm Pro Forma Projections

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.

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How to Start a Dairy Farm

Last Updated: December 19, 2023 Approved

This article was co-authored by Karin Lindquist . Karin Lindquist earned a BSc in Agriculture as an Animal Science major from the University of Alberta, Canada. She has over 20 years of experience working with cattle and crops. She's worked for a mixed-practice veterinarian, as a sales representative in a farm supply store, and as a research assistant doing rangeland, soil, and crop research. She currently works as a forage and beef agriculture extension specialist, advising farmers on a variety of issues relating to their cattle and the forages they grow and harvest. There are 9 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 105 testimonials and 92% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 1,333,901 times.

Dairy farms take a lot of money and capital to start up, way more than a meat operation does. Know what you're getting into and how you want to get into it before you decide to start a dairy farm. Even if you grew up on a farm, managing your own means sitting down for long, careful planning sessions. This guide will help you through these, but remember that local knowledge is invaluable for any farmer.

Planning Your Dairy Farm

Step 1 Research species and breed.

  • Rule out breeds that can't thrive in your climate.
  • For each breed, divide annual upkeep cost by annual milk production to find production cost per unit of milk.
  • Is there local demand for the breed's milk (based on species and milk fat %)? What about for butter and cheese (where a high fat % is useful)?
  • How much time and money does it take to raise a calf to milk-producing age? How much can you sell the male calves for?

Step 2 Decide on a food source.

  • Livestock need about 4% of their weight in forage each day. Ideally, your pasture should produce more than this at peak season, so you can stockpile the surplus for winter.
  • Renting land is usually better than purchasing for a new farm. Wait until your farm is well-established and you no longer need the financial flexibility.

Step 3 Create a breeding plan.

  • Artificial insemination programs are now widespread in India and many African countries. The savings are not as significant and the programs vary in quality, but it is still usually worth it.
  • Male:female herd ratio varies between species and with the male's age. A young bull can typically service 20–25 cows, while a healthy, mature bull may be able to handle up to 40. [2] X Trustworthy Source University of Georgia Cooperative Extension Division of the University of Georgia focused on research and community education Go to source

Step 4 Study farming practices.

  • If this is all new to you, try to get some work experience on another dairy farm first.

Step 5 Invest in capital.

  • A sterile facility for storing milk, and for pasteurizing if required in your area
  • Dry, sunny sheds or barns 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, plus water transport system to tanks in pasture
  • Irrigation system for pasture (optional) [5] X Research source
  • Note — if possible, give yourself room to expand to a larger herd

Step 6 Find a good source for animals.

  • Contact government institutions about subsidies and loans for farmers before you take out a loan from a bank.
  • Use the average milk prices (or slightly lower) over the past few years when estimating future profits. You don't want your business to go under if milk prices drop.
  • As a rule of thumb, you'll need one laborer per 10 milk animals, and one per 20 "dry" animals. [7] X Research source This includes you and your family.

Learning the Basics

Step 1 Mark each individual animal.

  • Equipment shared between farms can spread disease. Try to confirm where the equipment has been used and whether the animals there were healthy. [8] X Research source
  • Disease-carrying ticks are a major problem for livestock. [9] X Research source Inspect animals for ticks regularly, and keep the shed area clear of brush.

Step 3 Give the animals proper nutrition.

  • Mineral licks and/or mineral supplements are an important part of the animal's diet.
  • Moldy feed or feed stored in the same area as pesticides and other contaminants can transfer dangerous toxins to the milk. [10] X Research source
  • Dairy animals have high nutrition requirements compared to animals raised for meat. Improper nutrition can lead to lower milk production or lower quality milk.

Step 4 Milk the animal frequently.

  • If you've never milked an animal before, learn how to milk a cow or goat.

Step 5 Understand the breeding cycle.

  • Unlike farms that raise livestock for meat, you will be calving all year round to keep milk production steady. Keeping track of where each animal is in the cycle is vital so you can stick to a plan that keeps your income as regular as possible.

Step 6 Plan for changes in your herd.

Community Q&A

Community Answer

  • Herd health is very important for dairy operations. Dairy cows can get sick quite easily, and are more prone to injury to their feet and udders than beef cows are, and are also prone to milk fever and ketosis after calving. In order to have a healthy dairy herd, stringent health practices must be in place. Thanks Helpful 1 Not Helpful 0
  • Make sure you have good practices to make your cows as comfortable as possible during the time you're milking them. Thanks Helpful 1 Not Helpful 1
  • Allow your calves to milk for at least a month to give them enough strength. Thanks Helpful 1 Not Helpful 0

business plan small dairy farm

  • Don't go in to this operation thinking it's going to be a smooth ride. You will be very busy from before sunrise to past sunset every day, doing everything from milking cows to red tape to fixing machinery. It helps to have trusty hired hands, but you will need to supervise them to keep the farm running smoothly. Thanks Helpful 91 Not Helpful 40
  • Starting a dairy farm is very expensive. Going too far into debt can be very risky without a second job to rely on, since a shift in grain or milk prices could bankrupt you. If you don't have the finances yet, consider raising animals for meat instead. Thanks Helpful 79 Not Helpful 37

You Might Also Like

Start a Farm

  • ↑ http://www.cias.wisc.edu/starting-your-own-dairy-farm/
  • ↑ http://extension.uga.edu/publications/detail.cfm?number=C553
  • ↑ http://www.vethelplineindia.co.in/starting-a-dairy-farm-india/
  • ↑ http://www.yourarticlelibrary.com/dairy-farm-management/dairy-cattle-housing-and-layout-of-dairy-farm/36250/
  • ↑ http://onpasture.com/2014/06/16/should-i-irrigate-my-pastures/
  • ↑ http://www.sites.ext.vt.edu/newsletter-archive/dairy/2004-02/lactation.html
  • ↑ http://www.vethelplineindia.co.in/wp-content/uploads/2012/12/GoodDairyFarmingPractice_FAO.pdf
  • ↑ http://agrifarming.in/dairy-farming
  • ↑ http://dairy.ahdb.org.uk/technical-information/animal-health-welfare/cow-culling/

About This Article

If you want to start a dairy farm, decide which species and breed you'd like to keep, such as cows, goats, or water buffalo. Then, choose a food source, such as feed, hay, or grazing, and with the cost of labor and land in mind. Once you've decided on these, make a breeding plan, which might involve paying for a bull's service or doing artificial insemination. Make sure you know about the care requirements for dairy animals of all ages, since you will have both adult and baby animals. When you're ready to start the farm, make sure you have all permits in order and make a business plan to propose to investors. For tips on learning the basics of dairy farming and taking care of dairy animals, read on! Did this summary help you? Yes No

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The Ultimate Guide to Starting a Small Dairy Farm

How to Start a Small Dairy Farm? – The Ultimate Guide

Dairy farming is an agricultural practice that involves the mass production of milk. We primarily associate dairy with cows, but camels, sheep and goats also produce milk.

The milk may either be processed on-site, transported to a dairy factory for processing or sent to retail sellers.

A dairy is a farm dedicated to producing milk and other products such as cheese and butter.

dairy-work

Specialized dairy farmers collect milk from dairy cattle every day. Their daily activities include milking and feeding the cows, along with helping mothers to deliver their babies (calves).

Dairy farming is a business that revolves around the good health of mother cows to produce high-grade milk and give birth to calves that become the next generation of your dairy farm and help it to grow organically. Therefore, dairy farmers are required to draft a detailed program for cow health, reproduction and calf care. They need to work with a vet to formulate a comprehensive health care plan so that your dairy runs smoothly with zero downtime.

doctor

Providing your cattle with the necessary nutrients is imperative to increase milk production. Thus, dairy farmers are required to consult nutritionists to develop meal plans for their cattle.

In the next section, we are going to talk about how to set up a dairy farm.

How To Set Up a Small Dairy Farm

First things first, setting up a dairy farm requires both money and capital—way more than any corporate business.

Even if you grew up on a farm or are an experienced businessperson, this guide will certainly help you start a cow farm.

Planning is Crucial

Step 1: Planning is crucial

There is a lot of planning involved in this step. Start with a type of dairy cattle to raise for milk production.

The most prevalent dairy cattle are cows, goats, sheep and buffalos. You need to rule out the cattle that cannot survive in your region’s climate.

Next, think about the food to feed your cattle. It is advisable to set up the food source in your dairy farm to save money in the long run.

If you are new to dairy farming, then you will have to devote a considerable amount of time to learning farming practices—even if you hire dairy farmers to manage your farm.

business plan small dairy farm

A dairy requires capital, a space for the cattle to leave, a feed store, a milking parlor and a sterile facility for storing milk. So, pay heed to these aspects and make an initial capital investment for long-term gains.

You may have to contact your state’s government to get a license for running a dairy farm. After that, you should research the local milk market to link up with milk companies and retailers.

Step 2: Learn the basics

You and everyone in your team must undergo training to learn the basics of how to manage cattle. This is crucial to ensure your cattle stay healthy and produce a good amount of milk each day.

Learn the fundamentals about how to give your cattle the proper nutrients.

Do not forget to learn the art of milking a cow. It takes a combination of practice and patience to master it.

business plan small dairy farm

Why Start a Dairy Farm?

The milk industry is one of the few that survived the COVID-19 lockdowns and restrictions because we all need milk to boost our immunity.

Below, we’ve rounded up some compelling reasons to start a milk farm in 2021 and beyond:

  • The dairy industry does not depend on rainfall. Therefore, your dairy farm will run profitably regardless of the weather conditions. You will not suffer losses even when rainfall is below average or so heavy that it causes a flood.
  • Milk prices have never fallen in the history of mankind. Even if the supply is greater than the demand, the price remains the same.
  • The demand for milk and its products is always strong. Both vegetarians and non-vegetarians drink milk.
  • Milk is easier to market than many other industrial products. There is no need to set up franchise shops or inject thousands of dollars into marketing your dairy products.
  • Dairy farming is the only agricultural industry where income is generated each month.

Things You Need To Know

Develop a business plan and swot analysis.

To start a small dairy farm, you need to draft a plan that answers the following questions: 

  • How many cows do you want to breed? 
  • How are you going to market your milk and other products? 
  • Do you require any additional workers? 

The business plan must shed light on cash flow and expectations. A SWOT analysis must not be overlooked. It involves identifying the strengths, weaknesses, opportunities and threats associated with owning a dairy farm.

Consult the Experts

You should consult dairy farming experts. They can assist you with creating a business plan for your small dairy farm and developing a management system. It would be best to learn about the day-to-day from someone you know who runs a dairy farm. One thing to note here is that what worked for their farm may not necessarily work for yours. Gain as much knowledge as possible from consulting bankers, veterinarians and nutritionists.

Create a Cropping and Feeding Program

Creating a cropping and feeding program is essential. You must talk to certified nutritionists to know the best rations for calves, lactating cows and dry cows. Regardless of if you opt for TMR (total mixed ration), graze cattle or a combination of the two, your dairy cows need nutrients to produce high-quality milk and grow calves.

Waste Management

Your business plan must have a proper mechanism to deal with cattle waste (e.g. urine and dung) in order to maintain farm hygiene and prevent bad odors from spreading on the farm. The most effective technique is treating the waste with safe chemicals. The shed area needs to be well-ventilated and the floors must not be slippery.

Build Equity

To set up and run a dairy farm, you need to make a large capital investment. This capital includes the land for the shed where the cattle will stay and an area for maintaining equipment.

Dairy Farming Is a Biological System

When drafting your business plan, you have to keep in mind that dairy farming is a biological system that depends upon your cattle’s ability to lead a healthy life and produce milk or calves. Detailed programs for good health reproduction and calf care are needed alongside the nutritional plan. Work with a veterinarian on this.

One Size Does Not Fit All

Not all dairy farms are the same. As such, one approach doesn’t always work for all of them. Most dairy farms connect with brands and supply them with milk, while some bottle and produce their milk products. Figure out what works best for you.

You Are a Manager First

Since dairy farming is a business, management is important. You should have a plan and an overview of all the pieces of the puzzle to ensure the business is running successfully.

Major Investments and Expenses

business plan small dairy farm

The biggest investment and assets of your dairy farm are the dairy cattle. You have to decide on a breed of cattle. Some breeds are good for producing milk, but it lacks the cream and protein for cheese-making.

Pieces of equipment

Pieces of Equipment

The three most important pieces of equipment on a modern dairy farm are a cream separator , pasteurizer machine and butter churn . 

As its name suggests, a cream separator separates cream from the milk produced. It works on the principle of centrifugal force to remove cream from whole milk. It has a conical discs in the bowl that rotates 6,000 to 10,000 revolutions per minute. The centrifugal force runs the milk through the holes of the discs. 

A milk pasteurizer is a multi-function tool that helps in making products like cheese or yogurt. It also eliminates pathogenic bacteria that are harmful to human health and preserves the milk’s quality. 

A butter chum is a device that converts cream into butter. The churning process divides the cream into butter and buttermilk. It is a device that is easy to use and does not require intensive training to learn. There are several types of butter chums on the market, but a plunger churn that contains a stick and wooden barrel is the preferred choice.

business plan small dairy farm

Milking cows produce milk that can further be processed to produce other staples of the American diet like cheese, cream, butter , custard, casein and yogurt . According to the International Dairy Food Association, the U.S. dairy industry is worth $628 billion.

What Are the Challenges and Opportunities?  

Disease control : Raising cows is always a challenge. You have to ensure the good health of your cattle. To that end, regular checkups are key. Train your team to look for signs of any health problems because timely treatment is crucial for quick recovery and minimal downtime. Let your cattle loose in a special shaded area to keep them fit, as moving will decrease bloating. If you must, appoint a vet to take care of the farm.

Capital for dairy farm

Capital : For young entrepreneurs with not enough products, investing in the capital could be a major roadblock.

Opportunities

Stable Milk Cost : Dairy prices are always climbing. They don’t fall like the Sensex.

Market Your Products : If you want to make high profits, produce, market and deliver products to your end-users.

cattle farming business

The Bottom Line

By now, you probably have a clear idea of what dairy farming is, how to set up a dairy farm and why now is the right time to take the plunge. One thing is for sure: You have to consider dairy farming as a business and your dairy cattle as your biggest assets. Therefore, they require the best care to make sure your business’s revenue grows with each passing fiscal year. Also, patience is the key for every business, so give your dairy farm time to settle down and drive revenue.

If you have anything to add from your dairy farming experience, feel free to share it in the comments section below. Our readers would love to hear from you!

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Dairy Farm Business Plan

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High demand, an extensive marketplace, and a recurring revenue model make starting a dairy farm business a lucrative and rewarding profession.

Anyone can start a dairy farm, but you will need a detailed business plan when it comes to growing your business and raising funds for it.

Need help writing a business plan for your dairy farm? You’re at the right place. Our dairy farm business plan template will help you get started.

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Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

  • Fill in the blanks – Outline
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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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business plan small dairy farm

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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400+ Free Business Plans Template

400+ Free Business Plans Template

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

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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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How to Start a Profitable Dairy Farming Business [11 Steps]

Nick

By Nick Cotter Updated Feb 05, 2024

image of a dairy farming business

Business Steps:

1. perform market analysis., 2. draft a dairy farming business plan., 3. develop a dairy farming brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for dairy farming., 6. open a business bank account and secure funding as needed., 7. set pricing for dairy farming services., 8. acquire dairy farming equipment and supplies., 9. obtain business insurance for dairy farming, if required., 10. begin marketing your dairy farming services., 11. expand your dairy farming business..

Starting a dairy farming business requires a comprehensive understanding of the market. A thorough market analysis will help you identify the demand for dairy products, understand the competitive landscape, and determine the best strategies for entry. Here are some essential steps to guide you through the market analysis process:

  • Research the local and regional demand for dairy products, focusing on consumer preferences, consumption trends, and potential gaps in the market.
  • Analyze the competition by identifying existing dairy farms, their product offerings, pricing strategies, and market share. This will help you find your unique selling proposition.
  • Examine the supply chain for dairy farming, including the availability of feed, veterinary services, and access to markets for selling your products.
  • Study the regulatory environment to understand the licensing, health regulations, and environmental standards you need to comply with in your dairy farming business.
  • Consider the impact of economic factors such as milk prices, input costs, and subsidies that could affect the profitability of your dairy farm.
  • Assess the risks involved in dairy farming, including disease outbreaks, price volatility, and climate-related challenges.

image of a dairy farming business

Are dairy farming businesses profitable?

Yes, dairy farming businesses can be profitable, depending on the size of the operation and other factors such as the type of cows being milked, the market for milk and other dairy products, and the cost and availability of feed and other resources. Dairy farming can also be a labor-intensive business that requires substantial investments in both time and money.

A comprehensive dairy farming business plan is essential as it serves as a roadmap for your venture, outlining your business's goals, strategies, and financial projections. Here's a guide to help you draft an effective business plan:

  • Executive Summary: Summarize your dairy farming business, including the mission statement, farm details, and the products you plan to offer.
  • Company Description: Provide detailed information about your farm, the ownership structure, location, and the competitive advantages of your dairy business.
  • Market Analysis: Research the dairy industry, identify your target market, analyze competitors, and understand consumer demands and trends.
  • Organization and Management: Outline your farm's organizational structure, detailing the roles and responsibilities of the management team.
  • Products and Services: Describe the dairy products you will produce, such as milk, cheese, yogurt, or butter, and any additional services you may offer.
  • Marketing and Sales Strategy: Explain how you plan to attract and retain customers, including your sales strategy and promotional activities.
  • Financial Projections: Present a financial plan with projections for income, expenses, cash flow, and a break-even analysis.
  • Appendix: Include any additional documentation that supports your business plan, such as resumes, permits, or legal documents.

How does a dairy farming business make money?

Dairy farming businesses make money by selling the milk, butter, cheese, and other products from the cows to customers. They have the ability to reach a wide variety of target audiences, from grocery stores and restaurants to cheese tastings and farmer's markets. For example, an air duct cleaning business can target homeowners and commercial customers who need their air ducts inspected and cleaned annually. Additionally, they could offer services such as carpet cleanings and air filter changes as part of their business model.

Building a brand in the dairy farming industry involves emphasizing the quality, purity, and ethical practices of your production. Your brand should communicate trust and commitment to natural, wholesome dairy products. Focus on these key elements:

  • Brand Values: Highlight your commitment to sustainable farming, animal welfare, and natural products.
  • Visual Branding: Develop a logo and packaging that convey freshness, purity, and the farm-to-table concept.
  • Product Differentiation: Showcase any unique aspects of your dairy products, such as organic certification or specialty items.
  • Community Engagement: Build brand loyalty by engaging with your community through farm tours, local markets, and educational initiatives.

How to come up with a name for your dairy farming business?

Coming up with a name for your dairy farming business requires a creative and thoughtful approach. Consider starting by brainstorming words that evoke feelings related to dairy farming, such as freshness, wholesomeness, or nature. Then consider words and phrases that will capture the spirit of your business and reflect its unique purpose. If ideas don’t come easily, try using word association to help generate new perspectives on the name. Finally, it is important to ensure that the chosen name is easy to pronounce and remember, as well as being distinct enough to be recognisable when marketing your business.

image of ZenBusiness logo

Formalizing your business registration is a critical step in legitimizing your dairy farming enterprise. This process can vary depending on your location, but it typically involves a few common steps to ensure that your business is recognized by the law and ready to operate. Follow these guidelines to get your dairy farm legally established:

  • Choose a Business Structure: Decide whether your dairy farm will be a sole proprietorship, partnership, limited liability company (LLC), or a corporation. Each structure has different legal and tax implications.
  • Register Your Business Name: Select a unique name for your dairy business and register it with the appropriate state authority. Check for trademarks to avoid infringement.
  • Obtain Necessary Licenses and Permits: Research and secure all required local, state, and federal licenses and permits for operating a dairy farm, including health permits and land use approvals.
  • Get an Employer Identification Number (EIN): If you plan to hire employees, apply for an EIN from the IRS for tax purposes.
  • Register for State and Local Taxes: Register with your state's taxation department to obtain a tax identification number, worker's compensation, unemployment, and disability insurance.
  • File Your Business Formation Documents: Submit articles of incorporation or organization with your state's business filing office, if forming an LLC or corporation.

Resources to help get you started:

Explore crucial materials designed for dairy farming entrepreneurs, featuring publications, industry reports, newsletters, and more to illuminate market trends, operational excellence, and strategic growth advice:

  • Dairy Herd Management : Offers insights on herd management strategies, health tips, and the latest technology trends in the dairy industry. Link .
  • Hoards Dairyman : An industry-leading publication providing research, dairy economics, and product news. Link .
  • The Dairy Site : Delivers news, analysis, and articles on dairy market trends, animal health, and farming efficiencies. Link .
  • Farm Journal's MILK : Focuses on business information and industry data for dairy producers. Link .
  • Progressive Dairy : Highlights innovative practices, production tips, and management techniques for dairy farmers. Link .
  • Dairy Foods Magazine : Covers dairy processing, sustainability practices, and market dynamics affecting the dairy industry. Link .

Starting a dairy farm involves navigating through various regulations to ensure your business is compliant with local, state, and federal laws. Acquiring the necessary licenses and permits is a critical step that legitimizes your operations and helps maintain public health standards. Below is a guide to help you through this process:

  • Research Local Zoning Laws: Check with your local zoning office to ensure that your land is zoned for agricultural use and specifically for dairy farming.
  • Obtain a Business License: Register your dairy farm as a business with your city or county, and obtain a general business license.
  • Dairy Permit: Contact your state's Department of Agriculture to apply for a dairy permit, which usually requires an inspection of your facilities to ensure they meet health and safety standards.
  • Environmental Permits: You may need permits related to waste management and water use. Check with the Environmental Protection Agency (EPA) or equivalent state agency.
  • Building Permits: If you're constructing new facilities or altering existing ones, you'll need to secure building permits from your local government.
  • Health Department Permits: Consult your local health department about any additional permits related to the handling and processing of milk and dairy products.

What licenses and permits are needed to run a dairy farming business?

The licenses and permits required to run a dairy farming business will vary depending on the location and type of business. Generally, you will need to acquire a local business license, as well as any necessary permits for keeping and raising livestock. In addition, nearby ordinances may require additional permits, such as water discharge permits or zoning permits. You may also need to obtain a dairy license from your state agriculture department, or the state's Department of Environmental Protection.

Starting a dairy farming business requires careful financial planning and management. A dedicated business bank account is essential for keeping personal and business finances separate and professional. Additionally, securing adequate funding is crucial for covering startup costs and ensuring smooth operations. Follow these steps to set your dairy farm on a firm financial foundation:

  • Choose the right bank: Research banks that offer business accounts with favorable terms. Consider factors like fees, services, and any agricultural business incentives they may provide.
  • Prepare the necessary documents: Typically, you'll need your business registration details, tax identification number, and personal identification to open an account.
  • Explore funding options: Look into grants, loans, and investors that specialize in agriculture or small businesses. Government programs may offer favorable terms for rural businesses.
  • Develop a business plan: A solid business plan will not only help you secure funding but also guide your business decisions. Make sure it includes financial projections and a clear strategy for growth.
  • Consider equipment financing: Dairy farming requires substantial equipment. Leasing or getting a loan for equipment can help manage cash flow.
  • Monitor your financial health: Regularly review your finances to ensure your business stays on track. Professional accounting software or a dedicated accountant can assist with this.

Setting the right prices for your dairy farming services is crucial to ensure a profitable business while remaining competitive in the market. Careful consideration of your costs, market rates, and the value you offer to customers is essential. Below is guidance to help you establish your pricing strategy:

  • Analyze Costs: Calculate all the costs involved in your dairy operation, including feed, labor, equipment, maintenance, and overheads. Your prices should cover these costs and allow for a reasonable profit margin.
  • Competitive Pricing: Research what other dairy farms charge for similar services. Use this information to set competitive prices, but don't undervalue your services just to undercut the competition.
  • Value-Based Pricing: Consider the unique aspects of your services that might warrant a higher price, such as organic certification, premium quality, or specialized products.
  • Flexible Pricing Models: Develop pricing models that can accommodate different customers, such as wholesale rates for large orders or retail prices for direct-to-consumer sales.
  • Review and Adjust: Regularly review your pricing to ensure it reflects any changes in costs, market demand, and the overall economic climate. Be prepared to adjust prices as necessary to stay competitive and profitable.

What does it cost to start a dairy farming business?

Initiating a dairy farming business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $400000 for launching such an business. Please note, not all of these costs may be necessary to start up your dairy farming business.

Starting a dairy farm requires careful planning and acquisition of essential equipment and supplies to ensure that your operation runs smoothly and efficiently. From milking machines to feed, each item plays a pivotal role in the health of your livestock and the quality of the dairy products you produce. Consider the following list of necessary equipment and supplies as you embark on your dairy farming venture.

  • Milking Equipment: Purchase reliable milking machines, stainless steel milk buckets, teat cups, and sanitizing systems to ensure a hygienic milking process.
  • Housing Supplies: Invest in comfortable and spacious cow barns or sheds with proper ventilation, bedding materials, and manure management systems.
  • Feeding Equipment: Acquire feeders, water troughs, silos for feed storage, and a mixer wagon for preparing and distributing a balanced diet.
  • Health and Hygiene Supplies: Keep a stock of veterinary supplies, such as medicines, vaccines, and first aid kits, alongside cleaning agents and equipment for barn hygiene.
  • Refrigeration System: Ensure you have a cooling tank or bulk milk cooler to maintain the quality of milk post-harvest.
  • Fencing and Security: Install secure fencing around the perimeter and invest in security cameras or systems to protect your livestock and property.
  • Record Keeping and Management Tools: Utilize dairy management software or maintain logs for breeding, production, and health records of your herd.

List of software, tools and supplies needed to start a dairy farming business:

  • Livestock feed (per ton): $160 - $400
  • Milking machines: $3,000 - $7,000
  • Cattle stalls/shelters: $4,000 - $7,000
  • Breeding supplies (mate selection, semen analysis, etc.): $250 - $1000
  • Farm management software: $60 - $150/month
  • Computer hardware and software: $500 - $1500
  • Cow ID tags and record keeping supplies: $100 - $500
  • Cattle handling equipment: $2,000 -$5,000
  • Direct-marketing supplies (labels, containers):$200-$500
  • Water supply equipment (tanks, pumps):$900-$3,500

It is crucial to protect your dairy farming venture with the appropriate business insurance. This will safeguard against potential risks and ensure that your operations can continue smoothly in the event of unforeseen circumstances. Here is a guide to obtaining business insurance for your dairy farm:

  • Research different types of insurance: Look into property insurance, liability insurance, livestock insurance, and product liability insurance to cover various aspects of your dairy farm.
  • Assess your farm's specific needs: Evaluate the size of your operation, the number of animals, equipment, buildings, and any special requirements to determine the coverage you need.
  • Consult with insurance professionals: Speak to agents who specialize in agricultural insurance to get advice on the best policies for your situation.
  • Compare quotes: Obtain quotes from several insurance companies to find the most comprehensive coverage at a competitive price.
  • Review the policy details: Carefully read the terms and conditions of the insurance policy to understand what is covered and any exclusions or limitations.
  • Stay compliant: Ensure that your insurance meets any legal requirements in your region for dairy farming businesses.
  • Regularly review your coverage: As your dairy farm grows or changes, periodically reassess your insurance needs to make sure you remain adequately protected.

Marketing your dairy farming services is key to attracting customers and building partnerships. Developing a strong brand and outreach strategy will help your dairy farm stand out in the market. Here are some essential steps to effectively promote your dairy farm:

  • Identify Your Target Market: Understand who your ideal customers are, whether they are local grocers, restaurants, or direct consumers.
  • Develop a Brand: Create a memorable brand name, logo, and slogan that reflects the quality and values of your dairy products.
  • Online Presence: Build a professional website and engage with customers through social media platforms to increase visibility.
  • Community Engagement: Participate in local farmer's markets, fairs, and agricultural shows to showcase your products and network with potential clients.
  • Advertising: Invest in advertising through local newspapers, radio, or online platforms targeting audiences interested in dairy products.
  • Customer Experience: Provide excellent customer service and encourage word-of-mouth referrals by ensuring customer satisfaction.

Expanding a dairy farming business requires strategic planning and careful consideration of both market demands and resource management. This phase is crucial for sustainable growth and long-term success. Here are key points to consider:

  • Assess Market Demand: Understand local and regional dairy product demands. Consider expanding product lines or entering new markets.
  • Upgrade Facilities: Invest in modernizing milking equipment and storage facilities to increase efficiency and production capacity.
  • Enhance Animal Welfare: Implement practices for better health and productivity of the herd, such as improved feeding, housing, and veterinary care.
  • Invest in Technology: Utilize technology for herd management, milk quality control, and operational efficiency.
  • Staff Training: Train staff in advanced dairy farming techniques and management practices to ensure high productivity and quality standards.
  • Financial Management: Plan for financial investments and seek funding opportunities. Maintain a balance between debt and profitability.
  • Environmental Sustainability: Adopt eco-friendly practices like waste management and renewable energy sources to reduce the environmental impact.
  • Network and Collaborate: Engage with dairy associations, local farmers, and agribusiness experts for insights and partnership opportunities.
  • Marketing Strategies: Develop strong marketing campaigns to promote products and build brand recognition.

How to write a business plan for a dairy farm?

dairy farm business plan

Putting together a business plan for a dairy farm can be daunting - especially if you're creating a business for the first time - but with this comprehensive guide, you'll have the necessary tools to do it confidently.

We will explore why writing one is so important in both starting up and growing an existing dairy farm, as well as what should go into making an effective plan - from its structure to content - and what tools can be used to streamline the process and avoid errors.

Without further ado, let us begin!

In this guide:

Why write a business plan for a dairy farm?

What information is needed to create a business plan for a dairy farm.

  • How do I build a financial forecast for a dairy farm?

The written part of a dairy farm business plan

  • What tool should I use to write my dairy farm business plan?

Having a clear understanding of why you want to write a business plan for your dairy farm will make it simpler for you to grasp the rationale behind its structure and content. So before delving into the plan's actual details, let's take a moment to remind ourselves of the primary reasons why you'd want to create a dairy farm business plan.

To have a clear roadmap to grow the business

Running a small business is tough! Economic cycles bring growth and recessions, while the business landscape is ever-changing with new technologies, regulations, competitors, and consumer behaviours emerging constantly.

In such a dynamic context, operating a business without a clear roadmap is akin to driving blindfolded: it's risky, to say the least. That's why crafting a business plan for your dairy farm is vital to establish a successful and sustainable venture.

To create an effective business plan, you'll need to assess your current position (if you're already in business) and define where you want the business to be in the next three to five years.

Once you have a clear destination for your dairy farm, you'll have to:

  • Identify the necessary resources (human, equipment, and capital) needed to reach your goals,
  • Determine the pace at which the business needs to progress to meet its objectives as scheduled,
  • Recognize and address the potential risks you may encounter along the way.

Engaging in this process regularly proves advantageous for both startups and established companies. It empowers you to make informed decisions about resource allocation, ensuring the long-term success of your business.

To get visibility on future cash flows

If your small dairy farm runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your dairy farm's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your dairy farm business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your dairy farm's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your dairy farm.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your dairy farm and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your dairy farm's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your dairy farm, let's explore what information is required to create a compelling plan.

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Writing a dairy farm business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your business plan!

Carrying out market research for a dairy farm

Carrying out market research before writing a business plan for a dairy farm is essential to ensure that the financial projections are accurate and realistic.

Market research helps you gain insight into your target customer base, competitors, pricing strategies and other key factors which can have an impact on the commercial success of your business.

In particular, it is useful in forecasting revenue as it provides valuable data regarding potential customers’ spending habits and preferences.

You might discover that there may be an increasing demand for organic and grass-fed dairy products on the market. Additionally, research could indicate that there may be potential for creating new products or services that appeal to a wider customer demographic.

This information can then be used to create more accurate financial projections which will help investors make informed decisions about investing in your dairy farm.

dairy farm business plan entrepreneur

Developing the sales and marketing plan for a dairy farm

As you embark on creating your dairy farm business plan, it is crucial to budget sales and marketing expenses beforehand.

A well-defined sales and marketing plan should include precise projections of the actions required to acquire and retain customers. It will also outline the necessary workforce to execute these initiatives and the budget required for promotions, advertising, and other marketing efforts.

This approach ensures that the appropriate amount of resources is allocated to these activities, aligning with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a dairy farm

Whether you are at the beginning stages of your dairy farm or expanding its horizons, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is vital to ensure your business's success.

To achieve this, both the recruitment and investment plans must align coherently with the projected timing and level of growth in your forecast. It is essential to secure appropriate funding for these plans.

A dairy farm might incur staffing costs such as salaries for farmhands, veterinarians, and other personnel, as well as general operating costs such as insurance and taxes. In addition, the farm might need to purchase or rent equipment such as milking machines, tractors, and animal feed, and may also need to pay for fuel, maintenance, and repairs.

To create a financial forecast that accurately represents your business's outlook, remember to factor in other day-to-day operating expenses.

Now that you have all the necessary information, it's time to dive in and start creating your business plan and developing the financial forecast for your dairy farm.

What goes into your dairy farm's financial forecast?

The financial forecast of your dairy farm's business plan will enable you to assess the growth, profitability, funding requirements, and cash generation potential of your business in the coming years.

The four key outputs of a financial forecast for a dairy farm are:

  • The profit and loss (P&L) statement ,
  • The projected balance sheet ,
  • The cash flow forecast ,
  • And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

Your dairy farm forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

forecasted profit and loss statement in a dairy farm business plan

Ideally, your reader will want to see:

  • Growth above the inflation level
  • Expanding profit margins
  • Positive net profit throughout the plan

Expectations for an established dairy farm will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The forecasted balance sheet of your dairy farm

The projected balance sheet of your dairy farm will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

  • Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
  • Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
  • Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

projected balance sheet in a dairy farm business plan example

Analysing your dairy farm projected balance sheet provides an understanding of your dairy farm's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your dairy farm's liquidity and solvency:

  • A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
  • A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The cash flow forecast

A projected cash flow statement for a dairy farm is used to show how much cash the business is generating or consuming.

cash flow forecast in a dairy farm business plan example

The cash flow forecast is usually organized by nature to show three key metrics:

  • The operating cash flow: do the core business activities generate or consume cash?
  • The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
  • The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your dairy farm business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the dairy farm is appropriately funded.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting a dairy farm.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

sources and uses table in a dairy farm business plan

This table helps size the investment required to set up the dairy farm, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your dairy farm business plan, let's have a look at the written part of the plan.

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The written part of a dairy farm business plan is composed of 7 main sections:

  • The executive summary
  • The presentation of the company
  • The products and services
  • The market analysis
  • The strategy
  • The operations
  • The financial plan

Throughout these sections, you will seek to provide the reader with the details and context needed for them to form a view on whether or not your business plan is achievable and your forecast a realistic possibility.

Let's go through the content of each section in more detail!

1. The executive summary

In your dairy farm's business plan, the first section is the executive summary — a captivating overview of your plan that aims to pique the reader's interest and leave them eager to learn more about your business.

When crafting the executive summary, start with an introduction to your business, including its name, concept, location, how long it has been running, and what sets it apart. Briefly mention the products and services you plan to offer and your target customer profile.

Following that, provide an overview of the addressable market for your dairy farm, current trends, and potential growth opportunities.

Next, include a summary of key financial figures like projected revenues, profits, and cash flows.

Finally, in the "ask" section, detail any funding requirements you may have.

2. The presentation of the company

As you build your dairy farm business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide valuable insights into the legal structure of the business, the identities of the owners, and their respective investments and ownership stakes. This level of transparency is vital, particularly if you're seeking financing, as it clarifies which legal entity will receive the funds and who holds the reins of the business.

Moving to the location part, you'll offer a comprehensive view of the company's premises and articulate why this specific location is strategic for the business, emphasizing factors like catchment area, accessibility, and nearby amenities.

When describing the location of your dairy farm, you may want to emphasize the access to essential resources that it offers. The area could have a reliable supply of water and natural feed, as well as room for grazing and milking. Additionally, the region might have good transport links to other areas, allowing for the easy distribution of milk. Furthermore, you could mention the potential for the farm to take advantage of any government assistance programs that may be available for the area.

Lastly, you should introduce your esteemed management team. Provide a thorough explanation of each member's role, background, and extensive experience.

It's equally important to highlight any past successes the management team has achieved and underscore the duration they've been working together. This information will instil trust in potential lenders or investors, showcasing the strength and expertise of your leadership team and their ability to deliver the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your dairy farm might offer fresh, locally-sourced milk, cream, butter, yogurt, and cheese to customers. This gives customers access to high quality products that are free from preservatives and additives. Additionally, your farm could offer tour packages and educational seminars to customers, providing them with an engaging experience that will help them to deepen their understanding of the dairy industry and the work that goes into producing dairy products. Finally, customers could also be offered the chance to take part in volunteer activities such as helping to feed and care for the cows or participating in the harvesting of crops for animal feed.

dairy farm business plan products and services

4. The market analysis

When outlining your market analysis in the dairy farm business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your dairy farm, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your dairy farm targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include health-conscious consumers. These are people looking for dairy products that are made from high-quality ingredients and produced in an environmentally-friendly manner. They are willing to pay a premium for sustainably-sourced dairy products.

In the competition subsection, introduce your main competitors and explain what sets your dairy farm apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your dairy farm.

5. The strategy section

When crafting the strategy section of your business plan for your dairy farm, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your dairy farm faces a number of potential risks. For example, you may face a risk of increased feed costs if local grain prices rise. Additionally, your herd could be at risk of disease if biosecurity protocols are not followed. If either of these risks become reality, it could significantly reduce the profitability of your farm.

6. The operations section

The operations of your dairy farm must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your dairy farm - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You could have key assets such as the land and buildings used to house the cows and the staff, as well as the cows themselves. These assets could be protected with IP such as trademarks for your brand of milk or cheese, and copyright for the design of the packaging. You might also have patents for any innovations or inventions you have created to improve your production processes.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a dairy farm business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my dairy farm's business plan?

In this section, we will be reviewing the two main solutions for creating a dairy farm business plan:

  • Using specialized online business plan software,
  • Outsourcing the plan to the business plan writer.

Using an online business plan software for your dairy farm's business plan

The modern and most efficient way to write a dairy farm business plan is to use business plan software .

There are several advantages to using specialized software:

  • You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
  • You are guided through the writing process by detailed instructions and examples for each part of the plan
  • You can access a library of dozens of complete business plan samples and templates for inspiration
  • You get a professional business plan, formatted and ready to be sent to your bank or investors
  • You can easily track your actual financial performance against your financial forecast
  • You can create scenarios to stress test your forecast's main assumptions
  • You can easily update your forecast as time goes by to maintain visibility on future cash flows
  • You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

Screenshot from The Business Plan Shop's Financial Forecasting Software

Hiring a business plan writer to write your dairy farm's business plan

Outsourcing your dairy farm business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the dairy farm business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.

Why not create your dairy farm's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a dairy farm business plan is not advisable. Allow me to explain the reasons.

Firstly, creating an accurate and error-free financial forecast on Excel or any spreadsheet demands technical expertise in accounting principles and financial modelling. Without a degree in finance and accounting and significant financial modelling experience, it's unlikely that the reader will fully trust your numbers.

Secondly, relying on spreadsheets is inefficient. While it may have been the go-to option in the past, technology has evolved, and software now performs such tasks much faster and more accurately.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software offers ease in comparing actuals versus forecasts and maintaining up-to-date forecasts for clear visibility on future cash flows, as we discussed earlier in this guide. Such tasks are cumbersome when using spreadsheets.

Now, let's address the written part of your dairy farm business plan. While it may be less prone to errors, using software can significantly boost productivity. Word processors lack instructions and examples for each section of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they lack automated formatting capabilities.

In summary, while some entrepreneurs may consider Word or Excel for their business plan, it's far from the best or most efficient solution when compared to specialized software.

  • Having an up-to-date business plan is key to maintaining visibility on your future cash flows.
  • A business plan has 2 parts: a financial forecast highlighting the expected growth, profitability and cash generation of the business; and a written part which provides the context needed to interpret and assess the quality of the forecast.
  • Using business plan software is the modern way of writing and maintaining business plans.

We hope that this guide helped you to better understand how to write the business plan for a dairy farm. If you still have questions, do not hesitate to contact us.

Also on The Business Plan Shop

  • How to write a 5 years business plan
  • Business plan myths

Know someone who owns or wants to start a dairy farm? Share this article with them!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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StartupBiz Global

Starting Dairy Farming Business Plan (PDF)

Dairy Farming Business Plan

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.

milk cow farm 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.

Pre-Written Dairy Farming Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the dairy farming business, we encourage you to purchase our well-researched and comprehensive dairy farming business plan. We introduced the business plans after discovering that many were venturing into the dairy cattle production business without enough knowledge and understanding of how to run the dairy milk production business, how to keep the dairy cows, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global dairy business plan will make it easier for you to launch and run your dairy cattle farming business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the milk cows farming business.

Uses of the Dairy Farming Business Plan (PDF, Word And Excel)

The milk cows farm business plan can be used for many purposes including:

  • Raising capital from investors/friends/relatives
  • Applying for a bank loan
  • Start-up guide to launch your milk cows farming business
  • As a dairy farming business proposal
  • Assessing profitability of the dairy milk production business
  • Finding a business partner
  • Assessing the initial start-up costs so that you know how much to save
  • Manual for current business owners to help in business and strategy formulation

Contents of the Dairy Business Plan (PDF, Word And Excel)

The dairy farming business plan include, but not limited to:

  • Marketing Strategy
  • Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
  • Risk Analysis
  • Industry Analysis
  • Market Analysis
  • SWOT & PEST Analysis
  • Operational Requirements (Including technical aspects of how to keep the dairy cattle, feed requirements etc)
  • Operational Strategy
  • Why some people in dairy farming business fail, so that you can avoid their mistakes
  • Ways to raise capital to start your dairy milk farm business

The Pre-written dairy farm business plan package consists of 4 files

  • Dairy Farming Business Plan – PDF file (Comprehensive Version – 124 Pages)
  • Dairy Cows Farm Business Plan – Editable Word File (Comprehensive Version – 124 Pages)
  • Dairy Cattle Farming Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 52 pages)
  • Dairy Farming Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the number of dairy cattle, selling price of the milk etc, and all the other financial statements will automatically adjust to reflect the change.

Click below to download the Contents Page of the Dairy Farming Business Plan (PDF)

dairy farming business plan pdf

Testimonial 8

Just wanted to say I am very happy with the business plan and I will gladly recommend your products, thank you very much and have a great day.

Testimonial 5

I was able to understand the business side of farming because of your business plan. You did extensive research; the business plan was well prepared and fully detailed.  It made everything clear, and I have somewhere to start now. I am confident that I am going to succeed in my business because of the guidance from your business plan.

Testimonial 1

StartupBiz Global provided a very professional and comprehensive business plan which I used for my business. The business plan was easy to edit, and I was able to get the funding which I wanted. I highly recommend their business plans.

Testimonial 3

I was extremely lucky to come across StartupBiz Global. Their business plan exceeded my expectations, and most importantly I was able to secure a loan from my bank. Thank you guys, now my dreams are coming true!

Testimonial 7

I found Startupbiz Global online when I was in desperate need of a business plan. I was overwhelmed by the quality of the business plan, it’s comprehensive and well researched! I did not have to wait to get the business plan, I got it instantly after payment. I highly recommend Startupbiz Global, and would happily use them again in the future.

Testimonial 4

The business plan which I purchased from your website saved me TIME and MONEY! The layout of the business plan was excellent. The financial statements were detailed and easy for me to edit. I will come back to purchase another business plan soon.

Testimonial 6

I purchased a business plan from you, and I’m glad to inform you that I was able to get my loan, and I’m starting my poultry farming business on the 1 st of July. This was made possible because of your business plan. Thank you very much, you made my dream come true.

Testimonial 2

Many thanks for your incredibly efficient service and thorough business plan. I am very impressed with the business plan. Before I bought the business plan, I tried to do my own business plan – it was such a nightmare and it turned out badly, also not to mention the stress it caused me. I wish I knew about your website earlier!

Get the Dairy Farming Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

milk cow farm business plan

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your dairy farming business! Check out our collection of business plans  , and more business ideas .

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ProfitableVenture

Dairy Farming Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Agriculture Industry » Livestock Farming » Cattle and Dairy

Are you about starting a dairy farming business? If YES, here is a complete sample dairy farming business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a dairy farming business . We also took it further by analyzing and drafting a sample dairy farming marketing plan template backed up by actionable guerrilla marketing ideas for dairy farms. So let’s proceed to the business planning section.

We all take in dairy foods on a regular basis; in fact there isn’t any home that doesn’t consume dairy foods. This primarily is one of the reasons why those who have built a business around the dairy industry are making a great deal of income on a daily basis. One of the businesses that revolved around the diary trade is starting a dairy farm.

It pays that one does all that needs to be done in order to start with the right footing. As such one, one can   undertake a thorough and exhaustive research. Thereafter think towards getting a firsthand knowledge of the industry by sitting under the tutelage of someone who has a firsthand experience and dealing with the trade.

You will also be required to write a business plan. One of the good things about business plans is that they serve as a great guide and blueprint to fly with. There are plenty business plan experts out there; to save you the troubles and fees that you will have to pay. A sample dairy farms business plan has been put together for your use;

A Sample Dairy Farming Business Plan Template

1. industry overview.

There are several business opportunities available in the agricultural industry and dairy farming is one of them. One good thing about the agriculture industry is that there is market for all the produce from the industry.  A dairy farm is of course a thriving and profitable business because of usefulness of beef and milk.

People eat beef, drink their milk, and use their fur and skin. With cattle milk, cheese can be made, along with other dairy products. Companies in the dairy farms industry primarily raise cattle for milk.

Although this industry basically engage in the sale of raw milk and excludes the production of drinkable fluid milk and processed dairy products like butter, cheese and powdered milk, some dairy farms can still go ahead to accommodate other related business within the industry as long as they have the capacity to do so.

In recent time, the price of raw milk has been highly volatile, resulting to fluctuations in revenue for the Dairy Farms industry.

For example, in 2011, the price of milk bounced back from the recession and pushed up by increasing global demand, resulting to appreciable growth in revenue generation. It was projected that in 2016, an oversupply of dairy products is expected to cause revenue to deep further in the industry.

However, despite all the volatility, the industry is expected to experience appreciable growth going forward. For the time being, the price of cattle feed, which typically makes up about half of the average dairy farm’s total expenses, has been nose diving as far back as 2014, significantly strengthening industry profit margins.

The Dairy Farms Industry is indeed a large industry and pretty much active in countries such as United States of America, Israel, Argentine, Holland, Egypt, China, Germany, Turkey and Nigeria et al. There is no single dairy farm company that has dominate market share in the industry hence smaller dairy farms business can successfully make profits.

Statistics has it that in the united states of America alone, there are about 42,536 registered and licensed dairy farms business responsible for employing about 345,672 and the industry rakes in a whooping sum of $47 billion annually. The industry is projected to enjoy 1.3 percent annual growth.

As an aspiring entrepreneur who is looking towards leveraging on the agriculture industry to generate huge income, then one of your best bet is to start dairy farms business. Dairy farms business is all about mass – breeding of cattle (cows, oxen, bulls, bullocks, steers, heifers and calf et al) for the sole aim of generating raw milk in commercial quantities and of cause making profits.

Just like any other business, if you are able to conduct your market research and feasibility studies before launching your dairy farms, you are more likely not going to struggle to sell your raw milk and other dairy products because there are loads of people out there we eat beef, drink milk and industries that make use of byproducts from cattle in manufacturing their products.

Lastly, there are few barriers to entry into the dairy farms industry. Usually, all inputs are readily available. In the nearest future, players in this industry may face the highest costs associated with accessing technology, especially in relation to genetic modification engineering in livestock breeding.

So also, intellectual property rights protecting new inventions and technology may mean that new entrepreneurs coming into the industry will need to pay license fees and this of course will cause increase in the start – up fee for starting a dairy farm cum cattle rearing business.

2. Executive Summary

Columbus & Sons Dairy Farms, LLC is a registered and world class dairy farms company that will be based in the outskirt of Pierre, South Dakota – United States. We have done our detailed market research and feasibility studies and we were able to secure a hundred acres of land to build our dairy farming business.

Our dairy farms business is a going to be standard one hence will be involved in commercial breeding of cows, oxen, bulls, bullocks, steers, heifers and calf et al for the main aim of producing raw milk in commercial quantities. We will also be involved in boarding services, breeding services, dairy support services, livestock health services, farrier services, and shearing services et al.

We are in the dairy farms business because we want to leverage on the vast opportunities available in the dairy farms industry, to contribute our quota in growing the U.S. economy, in national food (raw milk) production, meat, raw materials production for industries, to export agriculture produce from the United States to other countries and over and above to make profit.

Columbus & Sons Dairy Farms, LLC is well positioned to become one of the leading brands in the dairy farms industry in the United States of America, which is why we have been able to source for the best hands and equipment to run the business.

We have put process and strategies in place that will help us employ best practices when it comes to producing raw milk in commercial quantities and conforming to the rules and regulation as required by the regulating bodies in the United States of America.

At Columbus & Sons Dairy Farms, LLC our customer’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Columbus & Sons Dairy Farms, LLC is a private registered dairy farms company that is owned and managed by Columbus Parker and is immediate family members. The company will be fully and single handedly financed by the owner – Columbus Parker and his immediate family members at least for a period of time.

Before starting Columbus & Sons Dairy Farms, LLC, Columbus Parker has worked with some of the leading dairy farms in the United States of America. He has a degree in Agriculture Economics and well over 10 years of experience.

3. Our Products and Services

Columbus & Sons Dairy Farms, LLC is a licensed dairy farms business that is committed to producing raw milk in commercial quantities for both the United States’ market and the global market. We are in the dairy farms industry for the purpose of generating profits and we are going to do all that is permitted by the laws in the United States of America to achieve our business goals.

These are the areas we will concentrate on in our dairy farms business. If need arises we will definitely add more related animal breeding services to our list;

  • Milking dairy cattle
  • Dairy support services
  • Dairy cattle farming
  • Farrier services
  • Sale and export of cotton wool and other dairy products
  • Sale of Cattle and milk
  • Sale of processed meat (beef) / can – beef (Processed Diary foods, and can beef et al)
  • Shearing services
  • Dairy farming related consultancy and advisory services

4. Our Mission and Vision Statement

  • Our Vision is to become one of the leading dairy farms business brands not just in Pierre – South Dakota, but also in the United States of America.
  • Our mission is to sell our raw milk and other dairy farms products in commercial quantities both locally, nationally and internationally.
  • We want to build a dairy farms business that can favorably compete with other leading dairy farms brands in the United States of America and in the globe.

Our Business Structure

Columbus & Sons Dairy Farms, LLC is a dairy farms company that intend starting small in Pierre – South Dakota, but hope to grow big in order to compete favorably with leading dairy farms in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands in and around Pierre – South Dakota.

At Columbus & Sons Dairy Farms, LLC, we will ensure that we hire people that are qualified, hardworking, dedicated, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the management of the dairy farms. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions. Below is the business structure of Columbus & Sons Dairy Farms, LLC;

  • Chief Operating Officer

General Dairy Farm Manager

Administrator / Accountant

  • Sales and Marketing Executive
  • Farm / Field Employees
  • Front Desk Officer

5. Job Roles and Responsibilities

Chief Operating Officer:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Responsible for providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Responsible for the planning, management and coordinating all farm activities across the various sections on behalf of the organization
  • Supervise other section manager
  • Ensures compliance during project executions
  • Provides advice on the management of farming activities across all section
  • Responsible for carrying out risk assessment
  • Uses IT systems and software to keep track of people and progress of the growth of cattle
  • Responsible for overseeing the accounting, costing and sale of raw milk and other dairy products
  • Represent the organization’s interest at various stakeholders meetings
  • Ensures that dairy farm goals desired result are achieved, the most efficient resources (manpower, equipment, tools and chemicals et al) are utilized and different interests involved are satisfied. Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Oversee the smooth running of the daily farming activities across the various farming sections.
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Defines job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Responsible for financial forecasting and risks analysis.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the farms
  • Serves as internal auditor for the farms

Sales and Marketing Officer

  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of new business
  • Writes winning proposal documents, negotiate fees and rates in line with company policy
  • Responsible for handling business research, marker surveys and feasibility studies for clients
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding increase sales
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the company

Field Workers / Contract Staff

  • Responsible for milking cattle as instructed by the general dairy farms manager
  • Responsible for feeding cattle and other livestock as instructed by the supervisor
  • Responsible for cleaning the cattle ranch
  • Change the water in the water trough / trench as instructed by the supervisor on a regular basis
  • Handles farm implements and machines as instructed by the section manager / supervisor
  • Assist in handling the breeding of cattle
  • Carries out task in line with the stated job description
  • Assist in transport working tools and equipment from the dairy farm and back to the designated store room
  • Handles any other duties as assigned by the dairy farm manager

Client Service Executive / Front Desk Officer

  • Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the cattle ranch manager in an effective and timely manner
  • Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
  • Receives parcels / documents for the company
  • Distributes mails in the organization
  • Handles any other duties as assigned my the line manager

6. SWOT Analysis

Columbus & Sons Dairy Farms, LLC do not intend to launch out a business on a trial and error platform hence the need to conduct a proper SWOT analysis.

We know that if we get it right from the onset, we would have succeeded in creating the foundation that will help us build a standard dairy farms business that will favorably compete with leading dairy farms in the United States of America and in the rest part of the world.

As a standard dairy farms business, we look forward to maximizing our strength and opportunities and also to work around our weaknesses and threats. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Columbus & Sons Dairy Farms, LLC;

Our strength as a cattle rearing business is the fact that we have healthy relationships with loads of major players (agriculture merchants) in the dairy farms industry; both suppliers and buyers of raw milk in commercial quantity within and outside of the United States.

We have some of the latest cattle rearing machines; tools and equipment that will help us breed our cattle (cows, oxen, bulls, bullocks, steers, heifers and calf et al) in commercial quantities with less stress. Aside from our relationship (network) and equipment, we can confidently boast that we have some the most experienced hands in the dairy farms industry under our payroll.

Our weakness could be that we are a new dairy farms business in the United States and we may not have the required cash to pump into the publicity of our business. We are aware of this and from our projection will overcome this weakness with time and turn it to a major advantage for the business.

  • Opportunities:

The opportunities that are available to us cannot be quantified. The fact that almost everybody in the world drinks milk and dairy farms products makes the business highly marketable.

We know that there are loads of homeowners, businesses and industries that will source for raw milk and other dairy products both in the United States of America and other parts of the world. We are well positioned to take advantage of these opportunities as they come our way.

Some of the threats and challenges that we are likely going to face when we start our own dairy farms are global economic downturn that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics), unfavorable government policies and the arrival of a competitor (a dairy farm or even cattle rearing farm that are also into production of raw milk) within same location.

There is hardly anything you can do as regards this threats and challenges other than to be optimistic that things will continue to work for your good.

7. MARKET ANALYSIS

  • Market Trends

A close study of the dairy farming industry shows that most dairy farms that has the capacity do not just concentrate in the commercial production of raw milk for households and businesses that are involved in the production of fluid milk products, cheese, dry, condensed and evaporated milk, creamery butter and yogurt et al.

They go as far as establishing a standard milk and beef processing company in line with their core business. It is a means of maximizing profits and increasing source of revenue generation.

Despite the fact that dairy farm has been in existence since time immemorial, that does not in any way make the industry to be over saturated; dairy farmers are exploring new technology to continue to improve raw milk production processes and also meat and milk preservation and packaging process. The fact that there is always a ready market for raw milk and other dairy products makes the business evergreen.

Lastly, one of the notable trends in dairy farms industry is that with the recent advancement in technology dairy farmers can now improve the various breeds of the animals they are breeding so as to increase the quantity of milk they produce per time.

As a matter of fact, it is now easier for dairy farmers to comfortably import the kind of breed of domestic animal they want to breed from any country of their choice and also advancement in technology has made it easier to cross – breed different animal.

8. Our Target Market

As expected, the target market of those who are the end consumer of dairy farms produce and also those who benefits from the business value chain of the agriculture industry is all encompassing; it is far – reaching. Every household consumes produce from livestock farms be it meat, milk, and the skin (leather) used for bags, belts and shoes production et al.

So also a large chunk of manufacturing companies depends on dairy farms for some of their raw materials. In essence a dairy farmer should be able to sell his or her raw milk and other dairy products to as many people as possible.

We will ensure that we position our business to attract consumers of raw milk and other dairy products not just in the United States of America alone but also other parts of the world which is why we will be exporting some of our dairy farm produce either in raw form or processed form to other countries of the world.

Our Competitive Advantage

From experience, entrepreneurs are known to flock towards an industry that is known to generate consistent income which is why there are more dairy farms in the United States of America and of course in most parts of the world.

As a matter of fact, entrepreneurs are encouraged by the government to embrace commercial farming / dairy farming. This is so because part of the success of any nation is her ability to cultivate her own food and also export foods to other nations of the world.

Columbus & Sons Dairy Farms, LLC is fully aware that there are competitions when it comes to selling raw milk and other dairy products all over the globe, which is why we decided to carry out thorough market research and feasibility studies so as to know how to take advantage of the available market in the United States and in other parts of the world.

We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable dairy farming processes that can help us sell our raw milk and other dairy products at competitive prices, good network and excellent relationship management.

Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we will operate an all – round standard dairy farms that will be involved in diverse areas such as animal rearing and meat and milk processing and packaging plant. With this, we will be able to take advantage of all the available opportunities within the industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups dairy farms companies in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Columbus & Sons Dairy Farms, LLC is in the dairy farms industry for the purpose of maximizing profits hence we have decided to explore all the available opportunities within the industry to achieve our corporate goals and objectives. In essence we are not going to rely only on the sale of raw milk and other dairy products to generate income for the business. Below are the sources we intend exploring to generate income for Columbus & Sons Dairy Farms, LLC;

10. Sales Forecast

From the survey conducted, we were are able to discover that the sales generated by a dairy farm depends on the size and capacity of the dairy farms and of course the network of the business.

We have perfected or sales and marketing strategies and we are set to hit the ground running and we are quite optimistic that we will meet or even surpass our set sales target of generating enough income / profits from the year of operations and build the business from survival to sustainability.

We have been able to critically examine the dairy farms industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some workable assumptions as well with respect to the nature of dairy farms business that we run.

Below are the projections that we were able to come up with for the first three years of running Columbus & Sons Dairy Farms, LLC;

  • First Fiscal Year-: $250,000
  • Second Fiscal Year-: $650,000
  • Third Fiscal Year-: $900,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics), and unfavorable government policies.

  • Marketing Strategy and Sales Strategy

It is a known fact that the reason why some dairy farms hardly make good profits is their inability to sell off their raw milk and other dairy products to a larger market. In view of that, we decided to set up a standard meat and milk processing and packing plant to help us maximize profits.

Over and above, we have perfected our sale and marketing strategies first by networking with agriculture merchants and companies that rely on raw materials from the dairy farms industry who are likely to refer become our customers. In summary, Columbus & Sons Dairy Farms, LLC will adopt the following strategies in marketing our cattle rearing produce;

  • Introduce our business by sending introductory letters alongside our brochure to stake holders in the agriculture industry, companies that rely on the dairy farms industry for their raw materials, hotels and restaurants and agriculture produce merchant et al.
  • Advertise our business in agro – allied and food related magazines and websites
  • List our dairy farms on yellow pages ads (local directories)
  • Attend related agriculture and food expos, seminars, and business fairs et al
  • Leverage on the internet to promote our business
  • Engage in direct marketing
  • Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means (both conventional and non – conventional means) to advertise and promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means.

We know that it is important to create strategies that will help us boost our brand awareness and to create a corporate identity for our cattle rearing business. Below are the platforms we want to leverage on to boost our dairy farms brand and to promote and advertise our business;

  • Place adverts on both print (newspapers and magazines) and electronic media platforms
  • Sponsor relevant community based events / programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our business
  • Install our Bill Boards on strategic locations all around Pierre – South Dakota
  • Engage in road show from time to time in targeted neighborhoods
  • Distribute our fliers and handbills in target areas
  • Contact corporate organizations and residence in our target areas by calling them up and informing them of Columbus & Sons Dairy Farms, LLC and the dairy farm produce we sell
  • List our dairy farms in local directories / yellow pages
  • Advertise our dairy farms in our official website and employ strategies that will help us pull traffic to the site.
  • Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.

12. Our Pricing Strategy

We are fully aware that some of the key factors that will help us sell our raw milk and other dairy farm products at the right price that will guarantee that us making profits is dependent on our strategy while some of the factors are beyond our control.

For example, if the climatic condition is unfavorable and if there is natural disaster in the location where we have our dairy farm, then it will directly affect the prices of our raw milk and other dairy farm products.

The truth is that, if we want to get the right pricing structure for our raw milk and other dairy products, then we must ensure that we choose a good location for our dairy farms, choose a good breed that will guarantee steady and multiple breeding (prolific breeds), cut the cost of running our farm to the barest minimum

And of course try as much as possible to attract buyer to our farm as against taking our raw milk and other dairy products to the market to source for buyers; with this, we would have successfully eliminate the cost of transporting the goods to the market and other logistics that can impact on our operational cost.

We are quite aware that one of the easiest means of penetrating the market and acquiring loads of customers for all our raw milk and other dairy products is to sell them at competitive prices hence we will do all we can to ensure that the prices of our produce are going to be what other dairy farms and even commercial livestock farmers who are into the sale of raw milk would look towards beating.

One thing is certain, the nature of dairy farms business we are involved in makes it possible for farmers to place prices for their raw milk and other dairy products based on their discretion without following the benchmark in the industry. The truth is that it is one of the means of avoiding running into loss. The easier you sell off your raw milk and other dairy products the better for your business.

  • Payment Options

The payment policy adopted by Columbus & Sons Dairy Farms, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Columbus & Sons Dairy Farms, LLC will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft
  • Payment via mobile money

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our raw milk and other dairy products.

13. Startup Expenditure (Budget)

When it comes to calculating the cost of starting a dairy farm, there are some key factors that should serve as a guide. The capacity of the raw milk to be produced per time and other related dairy products will determines the total cost of setting up the business.

Besides, in setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a dairy farms business; it might differ in other countries due to the value of their money. Below are some of the basic areas we will spend our start – up capital in setting up our dairy farms;

  • The Total Fee for incorporating the Business (dairy farm) in United States of America – $750.
  • The amount needed to acquire / lease a dairy farm land  – $50,000
  • The amount required for preparing the farm land (cattle ranch / dairy farm) – $50,000
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of Columbus & Sons Dairy Farms, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The total cost for hiring Business Consultant – $2,500.
  • The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400
  • The amount required for the purchase of the first set of cattle – $10,000
  • The cost for acquiring the required working tools and equipment and milking machines et al– $50,000
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The Cost of Launching an official Website – $600
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000

Going by the report from detailed research and feasibility studies conducted, we will need an average of $700,000 to start a standard dairy farms business in the United States of America.

Generating Funding / Startup Capital for Columbus & Sons Dairy Farms, LLC

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as commercial poultry farming.

No doubt raising startup capital for a business might not come cheap, but it is a task that an entrepreneur must go through. Columbus & Sons Dairy Farms, LLC is a family business that is solely owned and financed by Columbus Packer and his immediate family members.

They do not intend to welcome any external business partners, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources. These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from my Bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $400,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Columbus & Sons Dairy Farms, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to sell our raw milk and other dairy products a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Columbus & Sons Dairy Farms, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

  • Business Name Availability Check:>Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing of farm land and building of standard dairy farm: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party / launching party planning: In Progress
  • Compilation of our list of products that will be available in our dairy farms: Completed
  • Establishing business relationship with vendors – key players and merchant in the industry: In Progress

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What is  a dairy farm, 1. create a business plan and conduct a swot analysis, 2. consult the professionals, 3. establish a crop and feeding program, 4. develop a waste management strategy, 5. build your equity over time, 6. farming of dairy cows is a biological systems, 1. select a product to create, 2. acquaint yourself with the ins and outs of your product, 3. determine your financial situation, 4. purchase your property, 5. plan & strategize, share this post on your network, you may also like these articles, 5+ sample bread bakery business plan in pdf.

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Dairy Farm Business Plan Template

DEC.08, 2017

dairy farming business plan

Do you want to start dairy farm business?

Have you got some cash to invest and you are planning to start a dairy farm ? Well, if that’s the case then you are going the right way. Dairy products are a compulsory ingredient of our food and there will not be a single home that does not consume dairy products. Another advantage is that people need dairy foods on a regular basis, nearly every day.

The biggest advantage in starting this dairy farming business plan , which gives it an edge on other startups, is that it gives us the maximum rate of return on our relatively small investment group business plan as compared to other businesses. So, by investing in this dairy farming business plan you can make some serious cash on a daily basis.

Despite having all these perks, this business also has a dark side which is its difficult planning at the initial stage. It has got more constraints as compared to the normal businesses out there, that is why before starting it, you need to have a well-structured dairy farming business plan covering even the tiniest bit of details.

To help you avoid all the trouble of thinking about everything and making a plan yourself, we are providing a detailed dairy farming business plan of a startup “Milk&Milk” which is soon going to be launched.

Executive Summary

2.1 the business.

Milk&Milk will be a registered American dairy farming business plan based in Spring Valley, a village in the Rockland County of New York, at a 40-minute drive from the center of New York City. Nearly 80 acres of land in the outskirt of village has been selected and acquired as the farm site after detailed market analysis.

2.2 Management

Milk&Milk is primarily a milk producing company, involved in the breeding of milk-producing animals to produce large quantities of milk for commercial purposes but the company will also produce other dairy products. Being located in a village, the dairy farming business plan will have a continuous supply of all resources including the food for the animals. To manage the animals and resources efficiently, Michael has decided to hire a large workforce consisting of local inhabitants so as to ensure quality of their products.

2.3 Customers

The company aims to serve whole Rockland County along with a major portion of New York City’s residential zone.

2.4 Target of the Company

Michael’s target is to become one of the best natural dairy products producer of New York City.

Company Summary

3.1 company owner.

Milk&Milk is solely owned and operated by Michael Benrick who has more the 20 years’ experience of working in leading dairy farm companies, especially Nestle.

3.2 Why the Business is being started

Throughout his serving career, Michael did not feel happy about the mechanical procedures of production of dairy products which resulted in the loss of their natural characteristics. He had always thought to bring innovation in the traditional procedures of production while maintaining the nutrients and natural characteristics in the dairy products. It was last year, when he actually said ‘goodbye’ to Nestle and started working on his own dairy products farm.

3.3 How the Business will be started

Michael worked on his idea for about a year and developed a detailed dairy farming business plan covering everything, even the future forecasted demands. He took help from his friend, Anna, who is a financial expert in Nestle, and crafted a detailed map about the cost to start a dairy farm .

Michael has forecasted following costs for expenses, assets, investment, and loans for the Start-up.

How the Business will be started -dairy farming business plan

The detailed start-up requirements, start-up funding, start-up expenses, total assets, total funding required, total liabilities, total planned investment, total capital and liabilities as forecasted by company’s analysts, is given below:

Services for customers

Milk&Milk will not only produce milk and other dairy products for commercial purposes but the company also aims to provide various cattle related products and services to its customers. The main services incorporated in its new dairy farm business plan  are as follows:

  • Production of milk, butter, cheese, yogurt, cream, and other cultured dairy foods
  • Production of canned beef
  • Farrier and shearing services
  • Consultancy services

Marketing Analysis of dairy farming business

The most important and difficult part in developing a good dairy farm business plan is its marketing analysis that’s why Michael obtained the services of marketing experts to help him develop a good dairy farming business plan . He went through various dairy farming business plan samples  before selecting the best dairy farm business plan template  to work on.

The success or failure a startup totally depends upon how they market themselves to target their specific customer groups. A successful marketing strategy can only be developed after knowing the target audience and potential customers. Michael has carried out at extensive research with marketing experts to know their target customers and focus their marketing strategy towards them.

5.1 Marketing Segmentation

Milk&Milk will target all customers ranging from individual buyers to multinational retail stores. The marketing experts have identified following type of target audience which can become the potential customers of the company.

Marketing Segmentation - dairy farming business plan

The detailed marketing segmentation comprising of the company’s target audience and sale of the dairy packages unit are as follows:

5.1.1 Individual Buyers:

Milk&Milk will open three small retail locations in its initial phase, in the first year of its startup. One retail location will be in Rockland County and the other two will be in New York City. Through these retail locations, the company will target individual buyers residing in these areas who will be needing our dairy products on a regular basis throughout the year.

5.1.2 Departmental Stores:

Milk&Milk will supply its dairy products to various other retail and grocery stores. These departmental stores will make up the bulk of company’s customers and more than half of our products will be sold to them. These stores will also be needing our products on a daily basis throughout the year.

5.1.3 Restaurants and Hotels:

Milk&Milk will also supply their dairy products and beef to various restaurants and hotels on a regular basis throughout the year. These restaurants will become our biggest consumer after the departmental stores.

5.1.4 Companies and Businesses:

Milk&Milk will also supply milk to various companies and businesses based in New York City. The companies need a continuous supply of milk for making tea for their crew on a daily basis. Michael had already been contacted by a few medium sized companies to provide their canned milk on weekly basis.

5.1.5 Dairy Farm Owners:

The company will also provide consultancy and advisory services like farrier and shearing to the various farm owners located in Rockland County.

The detailed market analysis of our potential customers is given in the following table:

Milk&Milk aims to become the best dairy products company of New York within next 5 years of its launch and one of the leading dairy farm companies of America within next 10 years. We aim to provide highest quality dairy products to our consumers within affordable prices. We will keep all our dairy products as much original and natural as possible. We will only produce the required amount of products as forecasted by our analysts to reduce the use of preservatives and other artificial additives. Michael has already started planning for his goal of reviving natural dairy products.

5.2 Business Target

At our company, we will also provide a top-notch customer service. Our every employee and salesperson will treat our customers with utmost respect so as to build a long-lasting relationship with them. We will also provide highest quality consultancy and advisory services to the farmers located in the Rockland County.

5.3 Product Pricing

Setting the prices of products is the most difficult part of any dairy farming business plan , especially for a risky business like dairy farm. If the prices of our products are higher as compared to our competitors then people would not get attracted towards us, similarly if the prices are lower then it will be difficult to achieve our MARR (minimum attractive rate of return).

Considering all restraints and aspects, Michael has priced some of the products, milk and flavored yogurt, slightly higher than competitor’s products so as to balance the cost needed to manufacture high quality natural products and to avoid financial problems in the dairy farm business management . While most of our products can be bought in nearly the same price as the similar products of other companies.

Planning the sales strategy can be very complicated especially for a person with no prior knowledge. To make a small dairy farming business plan  of your own business, you can take help from the sales strategy of this sample dairy farm business plan .

The sales strategy of Milk&Milk developed by Michael and his friend Anna, a finance expert, is as follows:

6.1 Competitive Analysis:

Milk&Milk will have various competitors ranging from small dairy products manufacturers to multinational corporations. Our competitors may have established businesses and low product prices but no one will surpass us when it comes to the quality of products. Our competitive edge over other dairy farm businesses and dairy products manufacturers will be the ‘naturality’ of our products which is lacked by nearly all of our competitors. We are sure that people will prefer our slightly high-priced but natural products as compared to other dairy products available in market.

6.2 Sales Strategy

We will introduce our startup to our target customers and stake holders in the agriculture industry by sending brochures and introductory letters. We will attend all subsequent business fairs, food seminars and expos, and will carry out a large-scale social media campaign for our advertisement. We will send a free sample of our dairy products to several hotels and restaurants so that they can know the superior quality of our products. We will also offer discounts and gifts on our products present in several retail stores.

6.3 Sales Forecast

We believe that if people try our products, they will then use them for the rest of their lives thus the sales pattern will always increase with years. Our customers will be needing our products throughout the year. By analyzing our market segmentation strategy , our experts have forecasted the following sales on yearly basis which are summarized in the column charts.

Sales Forecast - dairy farming business plan

The detailed information about sales forecast, total unit sales, total sales is given in the following table:

Personnel plan

Michael acquired the services of a Human Resource Manager who instructed him how to write a business plan for a dairy farm  incorporating the HR aspect. Michael, with the help of HR Manager and financial experts developed the following plan for the staff needed for the company along with their average salaries.

7.1 Company Staff

Michael will act as the Chief Operating Officer of the company. The company will initially hire following people:

  • 1 General Dairy Farm Manager to manage the overall operations in dairy farm and the production unit.
  • 2 Administrators / Accountants to maintain financial records.
  • 2 Engineers responsible for operating and maintaining packaging unit.
  • 4 Sales and Marketing Executives responsible for delivering products to retailers and discover new ventures.
  • 20 Farm / Field / Packaging Employees for operating the farm and production unit.
  • 4 Drivers to transport products to various retail locations, hotels and restaurants.
  • 1 Front Desk Officer to act as a receptionist in the company headquarters.

To ensure the best quality service, all employees will be selected through vigorous testing and will be trained for a month before starting their jobs.

7.2 Average Salary of Employees

The following table shows the forecasted data about employees and their salaries for next three years.

Financial Plan

Michael has developed the following financial plan with the help of Anna, which outlines the financial development of Milk&Milk over the next three years. The finance experts helped him to figure out <strong>how much does it cost to start a dairy farm<strong>.

Michael had been planning this dairy farming business plan for years and thus had saved up for this venture. That’s why the company will be solely financed by him and he will also control the direction of business to make sure that it is expanding at the forecasted rate. No equity funding or outside loan will be required unless the company expands faster than forecasted.

8.1 Important Assumptions

The company’s financial projections are forecasted on the basis of following assumptions. These assumptions are quite conservative and are also expected to show deviation but to a limited level such that the company’s major financial strategy will not be affected.

8.2 Brake-even Analysis

The following graph shows the company’s Brake-even Analysis.

2 Brake-even Analysis - dairy farming business plan

The following table shows the company’s Brake-even Analysis.

8.3 Projected Profit and Losss

The following charts show the company’s expected Profit and Loss situation on the monthly and yearly basis.

8.3.1 Profit Monthly

Profit Monthly - dairy farming business plan

8.3.2 Profit Yearly

Profit Yearly - dairy farming business plan

8.3.3 Gross Margin Monthly

Gross Margin Monthly - dairy farming business plan

8.3.4 Gross Margin Yearly

The following table shows detailed information about profit and loss, and total cost of sales.

Gross Margin Yearly- dairy farming business plan

8.4 Projected Cash Flow

The following column diagram shows the projected cash flow.

dairy farming business plan - cash flow

The following table shows detailed data about pro forma cash flow, subtotal cash from operations, subtotal cash received, sub-total spent on operations, subtotal cash spent.

8.5 Projected Balance Sheet

The following projected balance sheet shows data about total current assets, total long-term assets, total assets, subtotal current liabilities, total liabilities, total capital, total liabilities and capital.

8.6 Business Ratios

The following table shows data about business ratios, ratio analysis, total assets, net worth.

Download Dairy Farm Business Plan Sample in pdf

OGScapital writer specializes business plan themes such as cattle farming business plan , chicken farming business plan , goat farming business plan , pig farm business plan , poultry farming business plan and helps you understand benefits of business continuity planning , etc.

business plan small dairy farm

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Comments (4)

business plan small dairy farm

Hi, is very interested.

The business plan template is indeed very good and it does not capture any loan amount borrowed for how long did the farmer save before starting the farm. It does not also show how many animals he started with, as a guide many people may want to know is it 10 or 50 or 100 animals economical for a small scale farmer. Sorry if my questions are in the story but I scanned through. Thank you.

business plan small dairy farm

Thank you for your comment. If you need assistance in writing your business plan please contact us by email: [email protected] or call us at USA +1-619-727-5304, UK +44-203-318-1069, Canada +1-613-699-7822, Australia +61-385-956-735.

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business plan small dairy farm

Starting a Dairy Goat Farming Business Plan

Make sure you've got the right dairy goat supplies to get started.

Starting a Dairy Goat Farming Business Plan

Reading Time: 5 minutes

Adding a dairy goat farming business plan to your homestead goals takes careful thought and preparation. In addition to purchasing the necessary livestock, dairy goat supplies must be purchased and the facility readied. Take a look at some ideas that will get you on a successful path to a dairy goat farming business plan.

One of the first questions is why choose goats or sheep for a dairy over the more traditional dairy cow operation? Goat milk is higher in calcium and healthy fat, giving it more nutritional bang per gallon. Goat milk is not as widely accepted in the United States, as cow milk, but the rest of the world has been largely drinking goat milk for hundreds of years. Goat milk is easily digested, even by people with lactose intolerance. The reason for this has to do with the protein structure of the milk compared to cow milk. Goat milk is also lower in cholesterol.

Goat Breeds

All goats share certain characteristics, no matter if they are kept for meat, breeding, milk, fiber or pets. Goats do not like being alone. Plan to have at least two goats. If you only want one goat for milk, keeping a neutered male goat (wether) is a good option. All goats will produce milk after giving birth. Certain breeds of goats are better milk producers. These breeds are often sought out when writing up a dairy goat farming business plan. Good genetics and breeding play a big part in the performance of any breed.

Full-size breeds of dairy goats include the Saanen, LaMancha, Toggenburg, Alpine, Nubian, and Oberhasli. Nigerian Dwarf goats are smaller and yet an excellent producer of high-quality milk. Often a smaller goat breed such as the Nigerian Dwarf is exactly what a family will look for when organizing a dairy goat farming business plan.

Saanens originated in Switzerland. They are one of the larger dairy goat breeds. Their milk production is high and the butterfat content is on the lower end of the goat milk spectrum. Saanen goats are all white or cream colored. The Sable goat breed is related to the Saanen and is the name for colored Saanens.

Nubian goats are a well-known dairy goat. Nubians have gentle personalities and rather loud voices. The breed is characterized by its Roman noses and long droopy ears. The milk is rich in butterfat.

A popular breed of dairy goat is the LaMancha. They appear earless but actually do have small ears. This breed is accepted in any color and is a good dairy goat. The appearance makes them easy to identify between the breeds.

Toggenburgs are favored by some dairy farmers because they are believed to have a longer lactation period after kidding.

The Alpine goat has a long and interconnected breed history that also includes some breeding with the Oberhasli and Saanen breeds. For your research into a dairy goat farming business plan, look into the Brittish Alpine, Swiss Alpine, and French Alpine breeding lines.

business plan small dairy farm

Goat Care and Maintenance

The daily care is something to be considered when forming a dairy goat farming business plan. Goats will require a dry living area, as wet pasture and goats are not often seen together. At the very least, a large run in shed should be provided and maintained with dry bedding. Fresh water, grain, and grazing or provided hay or forage are necessary each day. Goats are hardy and with consistent care, simple to raise. With good management and observation, you will learn what is normal behavior for the individual animals. Goats who become ill commonly go downhill quickly so it is good to have a baseline, in your mind, of how your normal healthy animal behaves.

Hoof care is required on a regular basis. The timing for retrimming can vary from season to season. Keeping a close eye on the hoof health will prevent other hoof health issues from cropping up. An overgrown hoof can harbor small stones, wet manure, and bacteria, possibly leading to lameness and hoof rot.

It is not hard to learn how to trim goat hooves. The use of a goat milking stand can help bring the goat up closer to your level and keep you from bending over. The trimmers are found in most agriculture supply stores or catalogs. Ask an experienced goat farmer to show you how to trim the hoof. The outer edges of hoof material are trimmed. You should never cut into the center or frog portion of the hoof.

The Daily Milking

Most importantly, milking must be done. Milking the does has to be done or the animal will be in pain and can develop mastitis. The normal practice is to milk every twelve hours. That’s twice a day, every day, for the eight to ten months of milk production. The first step includes cleaning the teats and stripping some milk out, before beginning to milk. Caring for any dairy animal is a heavy obligation to take on and only for the dedicated farm owner.

The Goat Dairy Facility

In a small family operation, you may be able to avoid having a separate building for housing and milking your goats. With a larger business plan, the milking is often done in a separate structure. With either set-up, cleanliness is the key to success.

The barn will have stalls for the goats. These may be shared as goats do not like to be alone. Birthing stalls are necessary on a dairy farm because you won’t have milk if you don’t have does giving birth. Private birthing stalls allow the does to give birth in a quiet environment and bond with the kids.

Fencing is needed. Rotational grazing practice should be employed so count on at least two or three separate grazing paddocks or pastures. Depending on your flock size you may require more pasture areas. Letting one area lie fallow, allows regrowth and gives the parasites time to die off. Goats are more likely to escape fencing than sheep. Strong fencing that cannot be climbed is a good starting place when planning your fences. Goats can jump, too. Be sure the fence is high enough to prevent goats jumping to freedom.

Business Plan

As you finalize your dairy goat farming business plan, decide where your goat milk will go. Are you planning to sell the raw milk to a local dairy for processing? Maybe you are going to produce cheese and yogurt for sale at the farmer’s market. No matter what direction you choose to go, having the plan details worked out ahead of time is smart. Contact the proposed buyers of your product and start a business relationship. Learn what is expected from a wholesale milk producer. Other products can be sold from your goat farm including, breeding stock, pet quality animals, and meat.

business plan small dairy farm

Do you have a dairy goat farming business plan? Are you finding success raising dairy goats? Let us know in the comments below.

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4 thoughts on “Starting a Dairy Goat Farming Business Plan”

I am interested in goat farming in Jaharkhand State, India. Please advise me with complete structure plan, management and profitibility.

I am interested in dairy farming in Botswana. I would like you to assist in a sound business plan on all products that can be made from dairy goats farming

I’m interested in dairy farming in Rustenburg (Mabeskraal village) to be pricise. Would like to have your assistance in a sound business plan on all the products that can be made from dairy goats products

I like raising dairy goats and thank for that piece of advice I’m looking forward to being a billionaire through rearing dairy goats.

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Dairy Farming Business Plan Guide

Table of contents, for frequently asked dairy farm questions: read here., for green fodder production: read here., for silage making process: read here., dairy farming business plan guide:.

Dairy Farming Business Plan.

Dairy Farming Business Plan – Introduction to Dairy Farming:- No matter what the season is and no matter what the place is “There is always a great demand for milk” in India. Due to the population increase and consumption of milk tremendously increasing day by day. The rising unemployment and people who are looking for starting a dairy farm in recent years are almost doubled. Milk production in India is expected to grow at about 3 to 4% every year. There are many people who want to get into the small-scale or large-scale dairy farming business. However, due to lack of knowledge and initial investment involved they are unable to set up a dairy unit. We advise you not to get into this dairy business unless you dedicate your effort and time on your farm round the clock. You are not necessarily starting a dairy farm on a commercial scale; you can start on a small-scale business and expand it to a large scale once you are aware of ins and outs of dairy farming.

Before starting a dairy farm, makes sure to follow these:

  • Dairy Farming Business Plan #1- However as a beginner, you should definitely get some professional training from Agriculture Universities or Training centers of the Animal Husbandry Department or Krishi Vigyan Kendras or any private training dairy consultancies.
  • Dairy Farming Business Plan #2 – Visit local dairy farms and talk to the management so you can get an idea of managing the farm. Always question them about “problems” and ask how they are overcoming them.
  • Dairy Farming Business Plan #3 – Read any dairy magazines, online dairy blogs, and YouTube videos to get an overall idea of farming.
  • Dairy Farming Business Plan #4 – If you don’t have capital investment and want to get a subsidy and loan the dairy farm, visit your local agriculture/co-operative banks for more information.
  • Dairy Farming Business Plan #5 – As feed or fodder is the main component of dairy farming that directly impacts the profits; you must have good knowledge of green fodder cultivation practices and silage-making procedures. You can study the feed and fodder market in your region to find out the feasible and economical fodder solution.
  • Dairy Farming Business Plan #6 – Initially, you must visit some cattle markets to observe animals on sale and talk with persons engaged with purchasing animals to get an idea of the best breed, animal prices, and milk yield of animals. You can also learn some negotiation skills.
  • Dairy Farming Business Plan #7 – You should learn good labour management skills.

To encourage the rural agriculture sector and increase the milk production as per demand, NABARD (National Bank For Agriculture & Rural Development) helping farmers by providing subsidies on dairy farms and dairy farming loans through approved banks. One can avail of this by visiting your nearest commercial or co-operative or rural agriculture banks. One can get decent profits in dairy farming under good dairy management practices. In the following write-up, let us talk about the “Dairy Farming Business Plan” in detail. Let us take an example of 15 dairy cow farming.

Dairy Farming Business Plan – Requirements of Dairy Farming in India:- There are some components of dairy farming you should be aware of before setting up a dairy farm.

  • Land – You must have some cultivated land for growing green fodder crops for your cattle on the farm. The land area depends on the number of animals (cows or buffalo’s). Usually, 2 acres of land is sufficient to feed about 15 cows.
  • Shed – There must be a proper and covered secured shed in place before getting cows into your farm.
  • Water – Clean and abundant water facility is required for both cattle and to grow the green fodder.
  • Fodder – As cows need three types of fodder for best milk yield and high-fat content, you must have good fodder management from growing fodder to feeding fodder on daily basis. Dry fodder, green fodder, and feed concentrate (for extra nutrition) are required to feed the cows in your dairy.
  • Breed Selection – Selection of a good breed of cows that yield more milk is essential in dairy farming. Good milk yielding cows such as “Jersy”, “Red Sindhi” “Holstein Friesian (HF cows)”, “Sahiwal”, “Gir”, “Deoni” and “Ongole” etc.
  • Labour – Labour is a major task in dairy farming, the selected labour should be very good at handling the farm activities including growing green fodder. It is better to give one or two days of training so that they can understand the routine activities of dairy.
  • Vaccinations – To control diseases and protect cow health, you must have a proper vaccination schedule. For this purpose, you can hire a veterinary doctor for routine checkups and medication of cows. For the vaccination schedule, see the vaccination schedule table at the bottom of this article.

HF Cow.

Dairy Farming Business Plan – Shed Construction:- Well ventilated and the spacious shed is required for dairy farming. Hygienic conditions are very important in the shed for cattle health. When it comes to space, it is recommended to have 8 feet x 12 feet area for 1 cow. So total space required for 15 cows is about 120 feet x 12 feet. However, this area is not fixed and depends on cow size. Cow feeders should be constructed in between with a separation wall so that the cows can be fed from both sides facing head to head each other; this is what is called a “Head to Head arrangement”.

Care should be taken while constructing the dairy shed. The selected location should be elevated to prevent any water stagnation around the shed and it also provides well ventilation (sunlight and air). The dairy shed roof should be made with asbestos sheets and the floor should be made of either bricks or cement with enough inclination. This can provide good drainage for cattle urine and excrete. The shed should be cleaned daily to maintain hygienic conditions. Collect the manure on daily basis and store it somewhere outside of the shed. You can also make an outlet to the shed so that whenever the shed is cleaned the cow urine any leftover manure can flow into the field. All electrical fittings and water supply requirements should be fully filled as per need in hot areas, it may need to have fans and coolers for cows, especially in summer.

Dairy Farming Business Plan – Fodder Management:- Fodder management is very important in dairy farming. The daily milk yield of a cow depends on the type of fodder and the nutritional facts of the given fodder. High-yielding cows should be given 1 kg of concentrate along with mineral mixture to get 2.5 liters of milk yield. For example, if a cow yields 15 liters of milk daily then these cows should be given 6 kg of concentrate with a mineral mixture.

There are three types of fodder that can be provided under dairy fodder management practices.

  • Dry fodder: wheat hay, kutti (rice / pady straw), chokar (wheat bran),
  • Green fodder: Any leguminous crops which are good in protein supplements. For example Any gram crop, barseem, maize/corn, masoor, and hybrid grass-like CO-3 and CO-4, niper grass etc.. These green fodder crops can be utilized to make silage. This silage is very nutritious and milk yield will be increased. Silage making is very important and especially it is needed in dry periods. The link will be given at the bottom of the article about “steps in involved in silage making or how to make silage for cattle”. Generally, 2 to 3 acres of fertile land enough to grow green fodders for 15 cows. However, the yield of green fodder depends on many factors.
  • Concentrate and Mineral Mixture: Mineral mixture:- It is necessary to provide concentrate feed along with a mineral mixer on regular basis to prevent cows from mineral deficiency. All three types such as dry green and mineral mixture should be accurate proportions for best milk yield.

Note: The cost of feed may depend on the animal milk capacity. On average, the feed may cost about 200 to 250 rupees/day/cow.

Dairy Farming Business Plan – Water Supply:- Clean water supply is required for drinking and cleaning purposes of the shed. Arrangements can be done by providing overhead tanks on the shed.

Dairy Farming Business Plan – Selection of Dairy Breeds:- Successful dairy farming requires a good breed selection of cows. Select the dairy cow/cattle breed that is suitable for your climatic conditions and high milking capacity. You can visit your local farms and can observe the different breed types that are suitable. A crossbreed of HF cows (Holstein Frisian) with Indian Sahiwal. Or Jersey with Sahiwal or Jersey with Red Sindhi is preferable for the good milk yield. It is preferred to select the breed which produces milk of 20 to 25 liters/day. Artificial insemination plays a major role to cross with high-yielding breeds.

Jersey Cow.

Dairy Farming Business Plan – Cow and Calves Management and Care:- Artificial insemination or mating of cows should be carried out after every 3 months (90 days) of calving. Indian cattle breeds take 3 years in reaching the maturity phase whereas high yield  Jersey crossbreed or HF cows reach maturity at 16 to 18 months and they will be ready for mating. In general, for every 13 months, cows should be calving. The lactation period of cows should be 300 days and the service period should be 90-120 days. The gestation period of cows is going to be 266 days. More attention and care are needed in the case of pregnant cows as they need more nutrition during this stage. Concentrate & mineral mixture should be given during the gestation period of cows and this feed intake should be increased as time passes to ensure proper growth of calves and their udder.

Dairy Farming Business Plan – Vaccination Program in Dairy Cow Farming:- Before giving any vaccination in dairy, deworming should be done to get better results. However, deworming should be carried out frequently and the veterinary doctor is your point of contact for this. The following table is the typical vaccination schedule in dairy farming.

Dairy Farming Business Plan – Vaccination Schedule in Dairy Farming:

Dairy Farming Business Plan – Bottom Line:- The above write-up can be assumed for Dairy Farming Business Plan in Tamil Nadu, Karnataka, Kerala, Telangana, Andhra Pradesh, Gujarat, Rajasthan, Punjab, Haryana, West Bengal, Madhya Pradesh, Uttar Pradesh, Bihar, Maharashtra, and other states of India. However, the labour cost, Cow breeds, feed cost, or green fodder production cost and inputs may slightly vary from region to region. You can expect excellent profits with proper dairy management practices, perfect planning, and dedication completely to the farm 24/7.

In case if you are interested in this: Quail Farming Business Plan .

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54 COMMENTS

Hello, my name is Anuj purwar, I am a student. And want to start organic farming with two members team MAYANK SHINHA and rishab pandey. We planned for a loan by the bank and use hydraulic solar panels energy for electricity which help us in earning money because of this electricity were given to our nearly farmers who use petrol, diesel water pump by which we decrease less use of pratrol. We are 17-19 year old and planed for this. We need your support to prove ourselves and promote the organic forming and start online sale of our crops from us to customers directly.

I am not sure about your question. You say solar and talk about Organic.

Read here about : Organic Farming .

Selling electricity to anyone except the government is prohibited in india. Please make sure you are not breaking any law.

GUPTA DAIRY FARM KARNAL Supplying Pure Breed and vaccinated Murrah Buffalo, Sahiwal Breed Cattle, Jersey Cow, Dairy Cow, Cow Heifer, Buffalo Heifer, Australian Cow, American Cow, and other types of Cows and Buffaloes…

We don’t sell any livestock or agriculture produce.

we don’t call or have personal support. You can post comments and get reply.

Respected Concerned person/ / Can you deliver the cows and buffalos throughout india?

Dear sir, I want to open new dairy farm in Jhabua (MadhyaPradesh). I have required 10 Buffalo with good quality and can give 10-15 litre milk per day. please send me the details about buffalo , price, purchasing locations , transportation etc.

regards dinesh bhayal

We don’t sell any cattle/buffaloes.

You must be an adult for eligibility of the loan for dairy farming.

hi i want to set up dairy farm, kindly suggest me the details in pdf, want to do at odisha. if u have, [email protected]

Soon we will introduce farming or agriculture pdf’s to download.

Hello, Can any one suggest the process of dairy loan. I will start dairy farming immediately.

For Dairy farming subsidy and loan, read this: Dairy Farming Subsidy .

You mean for dairy shed construction and design?

Above article is really helping. I have around 7 Bigha land in Kotdwar-Uttarakhand and looking to get in to dairy farm business, Can I expect a professional help from you ? like in Planning the dairy farm, loans and subsidy, good milk yielding cows and buffalo.

Glad the information is helping at least some people. We don’t have personal consulting support at this point in time. However, you talk to NABARD branch in your city for qualified agriculture/farming loans.

Hai, my name is Mohith and I from Telagana state, I want to start Cow farm. Please guide me.

Well, Mohith Dairy farming needs investment, patience and hard work along with dedication. You can not trust the third person in this business as feed management and care is utmost priorities of dairy cow farming. From, NABARD you can get a subsidy and loan for setting up a dairy cow farm. Here is some information which may be helpful: Dairy Farming Subsidy .

Dairy Cow Farming Project Report t .

Sir, I am from Odisha. I am interested to start a Dairy Farming In Odisha where can I get assistance? and necessary help. Please advise.

NABARD is your point of contact for any livestock subsidy. You can read >DAIRY FARMING SUBSIDY .

Hi, I am Prashant Deshmukh. I really interested to start a new Dairy farm business in Maharashtra. How to start, please guide me.

Well, to start a dairy farm, you must have proper planning, dedication. It requires your hard work. First, decide which dairy breed, you would like to go for. Feed management is very important in dairy farming. Make sure you have enough laborers to handle the farm. Our advice is to start with less number of cows and start increasing as you get more experience. Apart from this marketing is another factor for your dairy products. Here is some information which may help you. Read: DAIRY COW FARMING PROJECT REPORT .

Hello Sir, I am Rohidas Sapke and looking to start my own dairy farm business. Can you advise me is there any private institute who gives training on How to handle dairy farms/animal care/business related things and all?

Very soon, we will update training and consulting services addresses.

I am exploring possibility of dairy farming near Raipur in Uttarakhand.The subject is new to me as I am not a professional from this field.I would like to see a viable business plan,if you have one,for a midsized investment. Regards

It is really a resourceful information on every aspect. Thank you Can you please write on financial breakups, for shed, cows , fodder cost etc all occurring expenses. just as a template it will give an idea for us on financial planning.

Check these:

Dairy Farming FAQ .

How To Get NABARD Subsidy and Loan .

Dairy Shed Design and Construction .

Dairy Cow Farming Project Report .

Sir, I am 37 yrs old from Barshi, in Solapur district. We have some farm land and wish to start a dairy business from scratch. How can I start?

Read this: Dairy Farming FAQ .

Dear Sir, I really appreciate the guideline for my knowledge I am an MBA qualified. I hate jobs, I love business have a full plan to start a dairy farm business I have 5 acre land in one place 4 acre land in other areas which are in a part. Anyhow, I made a contact in our area and there is no a single dairy farm. This would be a great opportunity for me. But need knowledge of this business.

Umar Saood from pakistan currently working in UAE

Dairy farming is not simple as you think. However, with proper planning, dedication and hard work defiantly will pay you off. You cannot depend and trust third person.

To have complete idea. You better read all the dairy farming articles.

Read: Dairy Farming Information .

I am Mahesh and I want to know whether Coorg, Karnataka is best suited for HF breed cows, since we have 2 to 3 acres of land is coorg but due to heavy rain during June to October, we are still worried whether we can go-ahead for dairy farming with HF breeds. Your guidance and suggestions will help us further.

Hi I am a pure science graduate and I have interest in polyhouse and hydroponic agriculture. I want to start cultivation of vegetables in a small area like 1000 sq.m for commercial purposes..n establish my career on it. I like to spread it through out my state working as a professional consultant too. For this, I need proper training and guide and financial resources. Now plz help me to know all about high tech poly house, hydroponics that can help me to build my financial path as a grower and as a consultant too. Plese, help me show me the way. Thank u.

Dear sir new dairy farming business open in my village Bila gujarat so plz help me loan and ideas 7778014786 my WhatsApp number

hello sir, i am 20 yrs old and i want to open dairy farm. can you tell me about problems we face in this field.

Hello Mr. Reddy, Thanks for your effort to put this content in internet, it is very much informative. I am very much interested to start a dairy farm, but need proper guidance to set up this. I’m gathering information from youtube channels and some blogs like your. I may contact you to get some information.

Thanks Sahoo

very useful information sir Thank you

Hello sir, Iam r kanaka raj Ex-Servicemen Army I live from andaman and nicobar Islands. I want to open dairy farm. Can you tell me about problems we face in this field.

Please suggest the training institutes for dairy farming short courses.

Regards Mahesh

Subject: New Dairy Farm

This is Harish (farmer) from Telangana state, I’m really interested to start to start new dairy farm in my village I am having 5 acres land, Hence pls could you advice that from where to get the good livestock’s and what is the cost per cow. Pls could you share with me the shed diagram how to build for at least 10-12 cows.

Kind regards: Harish

Hi, Can you explain this business in financial terms….like cost of animals…on average how much they can produce milk….cost of milk….animal maintenance cost etc…if you can provide a table then it will be very useful

Dear sir I have plan to start up a dairy farm but I don’t have any idea I need some guid line to start up I need some ideas can u tell how can help me on this can u help me on this

My name is Obeng Kingsley an M. PHIL student at University of Ghana pursuing Agricultural science. I am currently rearing sheep but facing challenges in the housing system. I need advise on housing management system. thanks

Dear sir, I want to open new dairy farm in CUMBUM (Andhra Pradesh). I have required 10 Buffalo with good quality and can give 20-30 litre milk per day. please send me the details about buffalo , price, purchasing locations , transportation etc. is it supporting goverment like subsidy and any extra allowance.let me know sir,i donot have any idea.ping me your phone number sir.i need to talk to you..ok sir.

regards, SUDHARSHANREDDY.J

Hi, Do you have any worksheet to make business plan? I need to calculate EBITDA for my Dairy Venture.

Thanks in advance.

thanks so much for such relevant information that will guide us in our development in business.

hi, I want to set up a dairy farm, kindly suggest to me the details in pdf, want to do it at Haveri.

can you please inform me about loans from centre govt subsidy and financial loans ?

i want starting small scale from kerala . please suggest to me rules and regulations

can you suggest names high feeding cows ?

I want to start Cow farming. How much amount will be required for 15 number Cow farming inclusive of Construction, feeder, medical treatment and labour cost etc.

How much monthly income i get with 15 cows?

Hi everyone I am planing for Dairy farming.can any one tell about the cost and land requirements & government rules

nice information

The information about diary farming are very nice. I am very interested to farm which my own please help me regarding this business.

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Guide to Lotus Cultivation: How to Propagate, Plant, Grow, Care,...

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Tools for Developing a Business Plan for a Dairy Operation

Photo Credit Free-Photos from Pixabay

Photo Credit Free-Photos from Pixabay

For ag professionals or producers who want to develop a business plan for the dairy operation, this library of resources provides tools that may be useful.

The site includes a Business Plan Template, Business Planning Factsheets, a Case Farm example to show how a finished product may look, and a set of Financial Resource Documents. These documents are a collection of sample reports that show the type of financial information to include in a plan. There is also a folder of Financial Tools at the site that includes both Excel spreadsheets and fillable PDF forms that can be used to create these financial reports.

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Evaluating and Conditioning Cull Cattle for Market

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Dairy in Kansas

The Premier Dairy Frontier!

More Cows Works for MasCow Dairy

June 13, 2014 By Dairy in Kansas

By Jennifer M. Latzke, High Plains Journal

With 4,000 cows, the folks at MasCow Dairy of Moscow, Kansas, figured the bilingual play on words was an appropriate name.

“Mas cow” in Spanish means “more cows,” after all. And the production and marketing advantages that come with “more cows” are working for MasCow Dairy and the other two dairies operated by Ag Oasis.

Dairy Cows

MasCow is in a prime location in southwest Kansas—what is quickly becoming the Dairy Case of the state. There are advantages to operating a larger dairy in the region, Wacker explained.

First, there is enough land that a larger dairy can spread out and not sit right on top of neighbors. While dairies like theirs follow Kansas Department of Health and Environment rules, the lack of a lot of surface waters helps keep their environmental impact low. There’s also a favorable climate for cows, as drier weather means cleaner pens and better cow comfort. If there’s an upside to drought, it’s that it means dry pens for dairy cows, Wacker said.

Read Complete High Plains Journal Story

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2023 Farm Bill contains no plan to cap payments to big farms or give help to small farms

Like much of the news anymore, the initial numbers from the 2022 Census of Agriculture were accurately reported, quickly downplayed — or even worse, ignored — by most Big Ag groups, and then just pushed aside by the rush of the next day’s news.

That’s a mistake because the numbers, released Feb. 13 by the U.S. Department of Agriculture’s (USDA) National Agricultural Statistics Service (NASS) , show the rapid maturity and coming old age of U.S. agriculture. 

But these numbers, like old soldiers, won’t just fade away. They’re real and consequential.

Farm and Food: Alan's father loved to fish and would take his boys down to the Kaskaskia on a lazy Sunday

For example, according to NASS, the number of U.S. farms plunged by 142,000, or 7%, in the five years between 2017 and 2022. It’s the largest drop in farm numbers over the last four ag census periods and the lowest total number of U.S. farms since 1850 when the U.S. was a nation of just 31 states and four territories.

Equally shocking is the confounding fact that this slide happened at the same time Congress and USDA were shoveling billions into farm programs to support farmers and ranchers.

According to a Feb. 20 report titled “Unsustainable: the State of the Farm Safety Net,” published by the National Sustainable Agriculture Coalition , the federal government “distributed” $142 billion “through farm safety net programs” from 2017 to 2022.

The biggest bite over those five years was “ad hoc spending,” money not budgeted in any Farm Bill; it totaled $67 billion. Next came federal crop insurance, the principal revenue-supporting device in U.S. ag policy; it cost $46 billion. And pulling into third was “commodity programs” at $29 billion.

How do you send $142 billion in taxpayer dollars to farmers in five years and still end up with the fewest number of American farms in 172 years? The Census offers clues.

According to it, the only farm size category that increased in numbers was farms “operating 5,000 acres” or more. These biggies controlled 42% of all farmland in 2022. Additionally, 6% of farms with $1 million-plus in annual sales owned 32% of U.S. farmland and generated 75% of all ag sales nationwide.

That ever-bigger bigness was matched by an ever-graying grayness. According to the Census, the average age of U.S. farmers jumped from 57.5 in 2017 to 58.1 in 2022. More to the point, in 2017, one out of four U.S. farmers were 65 years old or older; in 2022, it was one out of three, or an increase of 12% in the ratio.

In the meantime, the number of farmers aged 35 to 65 dropped 9%.

In fairness, the number of farmers with less than 10 years’ experience — a group USDA calls “beginning farmers” — grew 11%, a pleasant surprise except for the rude fact that these “beginners” were an average 47.1 years old.

After reviewing the hard numbers, Secretary of Agriculture Tom Vilsack suggested that they prove the Biden Administration is on the right track in its call for a “different model” of agriculture that lends a big hand to small- and medium-sized farmers while continuing to support big farmers, too.

But there’s nothing different in that “different model.” In fact, the proposed — and still not done — 2023 Farm Bill contains no plan to cap program payments to the biggest of the bigs and offers no favoritism to the “farms in the middle,” the smaller-sized farms that survive mostly through substantial off-farm income.

The facts are that our relentless drive to wring profit out of our nation’s soil, water and rural communities has built a highly productive, very fragile, top-down food structure that leans heavily on federal subsidies, environmental degradation and the slow liquidation of rural America. 

That system isn’t sustainable — and neither are we — without change.

Alan Guebert is an agricultural journalist. See past columns at  farmandfoodfile.com . © 2024 ag comm

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  2. Essentials of A Dairy Farming Business Plan

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COMMENTS

  1. Dairy Farm Business Plan Template & How-To Guide [Updated 2024]

    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 ...

  2. Dairy Farm Business Plan Template (2024)

    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 ...

  3. How to Start a Dairy Farm: 15 Steps (with Pictures)

    Wait to buy the second half the herd until the first group is about to go dry, so your farm can produce milk year round. 7. Research the local milk market. If you're starting with just a few animals, talk to nearby dairy farmers for advice on selling to local stores and individuals.

  4. How to Start a Small Dairy Farm?

    Step 1: Planning is crucial. There is a lot of planning involved in this step. Start with a type of dairy cattle to raise for milk production. The most prevalent dairy cattle are cows, goats, sheep and buffalos. You need to rule out the cattle that cannot survive in your region's climate.

  5. Dairy Farm Business Plan [Free Template

    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 ...

  6. The #1 Dairy Farming Business Plan Template & Guidebook

    However, with the right planning, you can improve your chances of success. The #1 Dairy Farming Business Plan Template & Guidebook provides an easy-to-follow and comprehensive guide to help you develop a comprehensive business plan for your dairy farming venture. This template and guidebook covers all key areas of developing a successful dairy ...

  7. 8 Things You Need to Know Before Starting Your Own Dairy Farm

    Consider creating a farm management team or profit team that engages your consultants to be active participants in the farm's progress. Develop a Business Plan and SWOT Analysis It is important to remember that a dairy farm is a business. Development of detailed business plan and a SWOT analysis (Strengths, Weaknesses, Opportunities, and ...

  8. How to Start a Profitable Dairy Farming Business [11 Steps]

    2. Draft a dairy farming business plan. 3. Develop a dairy farming brand. 4. Formalize your business registration. 5. Acquire necessary licenses and permits for dairy farming. 6. Open a business bank account and secure funding as needed. 7. Set pricing for dairy farming services. 8. Acquire dairy farming equipment and supplies. 9.

  9. How to write a business plan for a dairy farm?

    The written part of a dairy farm business plan. The written part of a dairy farm business plan is composed of 7 main sections: The executive summary; The presentation of the company; The products and services; The market analysis; The strategy; The operations; The financial plan

  10. How To Plan, Start, and Manage a Dairy Farm Business

    Planning waste management. Waste management is one of the most challenging parts of managing a dairy farm business, as dairy cattle produce impressive amounts of manure each day. The numbers speak for themselves: A 1,400-pound dairy cow can generate around 120 pounds (1.9 cubic feet) of feces and urine each day.

  11. 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 ...

  12. Dairy Farming Business Plan [Sample Template]

    Marketing promotion expenses for the grand opening of Columbus & Sons Dairy Farms, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580. The total cost for hiring Business Consultant - $2,500.

  13. 28+ SAMPLE Dairy Farm Business Plan in PDF

    What Is a Dairy Farm?. Dairy farming is a type of agriculture in which milk is produced over an extended time and then processed for ultimate sale as a dairy product. Dairy farming dates back to the early Neolithic period, around the seventh millennium BC, throughout Europe and Africa. According to statistics, agriculture and allied businesses employ 10.3% of the workforce in the United States.

  14. Dairy Farm Business Plan Template

    2.1 The Business. Milk&Milk will be a registered American dairy farming business plan based in Spring Valley, a village in the Rockland County of New York, at a 40-minute drive from the center of New York City. Nearly 80 acres of land in the outskirt of village has been selected and acquired as the farm site after detailed market analysis.

  15. Starting a Dairy Goat Farming Business Plan

    The daily care is something to be considered when forming a dairy goat farming business plan. Goats will require a dry living area, as wet pasture and goats are not often seen together. At the very least, a large run in shed should be provided and maintained with dry bedding. Fresh water, grain, and grazing or provided hay or forage are ...

  16. Dairy Farming Business Plan Guide

    Dairy Farming Business Plan - Shed Construction:- Well ventilated and the spacious shed is required for dairy farming. Hygienic conditions are very important in the shed for cattle health. When it comes to space, it is recommended to have 8 feet x 12 feet area for 1 cow. So total space required for 15 cows is about 120 feet x 12 feet.

  17. Tools for Developing a Business Plan for a Dairy Operation

    Resources and tools to develop a business plan. For ag professionals or producers who want to develop a business plan for the dairy operation, this library of resources provides tools that may be useful. The site includes a Business Plan Template, Business Planning Factsheets, a Case Farm example to show how a finished product may look, and a ...

  18. An In-Depth Guide to Starting a Successful Small-Scale Dairy Farming

    Dairy Farming Business Plan Guide _ Agri Farming - Free download as PDF File (.pdf), Text File (.txt) or read online for free. Scribd is the world's largest social reading and publishing site.

  19. PDF DAIRY

    ansas is a national leader in the development of Secure Milk Supply plans at dairy operations, and 14 Kansas dairies• K ave completed or are in the process of developing site-specific biosecurity plans as of February 2019.h n 2015, a dairy in southwest Kansas became the first dairy in the state to implement a Water Conservation Area (WCA)• I

  20. Dairy Industry

    The dairy food industry has developed new milk based beverages and products beyond traditional dairy products to meet consumer demand. Technology exists to extract the various milk components from the raw milk leading to protein concentration, reduced lactose, casein extraction and other processes. FDA and the industry are working together to ...

  21. Our Story

    Brian came from his own family run dairy farm, helping grow the herd from 1,800-2,400 milking cows. ... Ag Oasis remains a family business with the addition of Jeffrey Hemann, Brian's son. Seeing the need to create an environment of structure and accountability, Jeff came on board as the facility supervisor at Mas Cow Dairy. ...

  22. More Cows Works for MasCow Dairy

    By Jennifer M. Latzke, High Plains Journal With 4,000 cows, the folks at MasCow Dairy of Moscow, Kansas, figured the bilingual play on words was an appropriate name. "Mas cow" in Spanish means "more cows," after all. And the production and marketing advantages that come with "more cows" are working for MasCow Dairy and the

  23. Farm and Food: Rapid maturity and coming old age of U.S. agriculture

    For example, according to NASS, the number of U.S. farms plunged by 142,000, or 7%, in the five years between 2017 and 2022. It's the largest drop in farm numbers over the last four ag census ...