Cost of Setting up a Dairy Farm in India

livestock farming

Cost of setting up a dairy farm

The cost of setting up a dairy farm in India depends on the size. There are other considerations like learning dairy farming, feeding and setup costs. What are the one time investment, recurring cost, total project cost income. More are sourcing the Buffalo/cow, business registration, equipment and marketing.

Dairy Farming

First step is to write a dairy business plan and feasibility study. Then learn about the industry, study the competition and secure funding. Other considerations are labor, transportation, shed, feeding and purchase of starter herd.

Dairy farming involves rearing cows/buffalos for milk production. Milk is harvested from lactating cows through manual or mechanical process.once allparameters are considered eatimate the cost of setting up a dairy farm.

Cost of setting up a dairy farm
abondance cattle

Things to Consider

Write a dairy business plan

Feasibility study

Learn the trade

Study the competition

Secure funding

Labor cost




Purchase of buffalo

Advantages of dairy farming

Advantages of dairy farming includes low investment for small hold farmers. Initial investment depends on size of enterprise and there are many government initiatives.

Other advantages are low maintenance, availability of feed fodder, rapid income generation. The product is in high demand, many loans or subsidies, availability of veterinarian service.


  1. low investment for small hold farmers
  2. Initial investment depends on size
  3. many government initiatives
  4. low maintenance
  5. availability of feed fodder
  6. rapid income generation
  7. product in high demand
  8. many loans or subsidies
  9. availability of veterinarian service

Things to Setting up Dairy Farm

Things you need to set up a dairy farm is the buffalo, transportation, milking capacity. Others are shed area per animal, dairy equipment electric feed cutter. Others are medical, insurance, dry/solid/green fodder. More include labor (wages) utilities, water and interest rate from loans.

Biofloc aquatic system

cost of setting up a dairy farm


Investment are cost of fodder cutter, shedding, dairy equipment, purchase of stock. Cost of fodder cutter Rs 50,000, diary equipment Rs 10,000 x10 buffalo. Others are shedding for calves 200 x 120 feet, 10 milking cattle shed space 500 x 120 feet. Cost of purchase of buffalo 10 x 50, 000

  1. Estimate cost 10 Murrah Buffalo

Breed of buffalo is Murrah Buffalo average cost for young Rs10, 000 adult Rs 50,000. Area requirement per animal is 50 square feet, transportation costs per animal Rs 1000

  • Milking Shed – Rs 125 per sq. feet
  • Medical –Rs 150 per animal
  • Solid fodder Rs 20 , Dry fodder Rs per kg, Green fodder – Rs per kg
  • Interest rate 14% Loan duration 3-5 years, insurance 5%
  • Milking duration 240 days, Milking rate in market Rs 40
  • Utilities Rs 220 per annum
  • Labor wages Rs 6200

Recurring cost

Recurring cost include insurance, fodder for one month, utility, medical and home grown fodder. More are labor costs, medicines, cost of non-lactation period and lactation period.

Fodder Plan

Feeder plan for buffalo dairy farming is estimated on type of fodder. Types of fodder are solid fodder, dry fodder or green fodder. Use solid fodder Rs per kg, dry fodder Rs 3 per kg, Green fodder 2 per kg.

Estimates during lactation period is based on supplied quality and daily costs. Other considerations are during non-lactation period for quantity supplied or daily costs.

Types of Fodder

  • Solid fodder
  • Green fodder
  • Dry fodder

Lactation Period

Lactation period of buffalo during dry days per first batch 1 year 1250, 2nd year 1150, 3 year period 1050, 4th year 1050 and 5th year 1000. 2nd batch 500 2nd year 1050, 3rd year 2250, 4th year 1400, 5th year 2400.

Non lactation period

None lactation period 1st year 150, 2nd 550, 3rd year 750, 4th year 750, 5th 750. Others are 2nd batch for second year 750, 3rd year 650, 4th 500 5th year 500.


Profit margin is determined from one time investment, recurring cost and income. Income generated is for milk sold per litter at current market prices.

Dairy cattle

Leave a Reply

Your email address will not be published. Required fields are marked *