Project report for Diary Farm (Cow)


Project report for diary farm is as follows

Dairying is an important source of subsidiary income to small/marginal farmers and agricultural labourers. In addition to milk, the manure from animals provides a good source of organic matter for improving soil fertility and crop yields. The gobar gas from the dung is used as fuel for domestic purposes as also for running engines for drawing water from well. The surplus fodder and agricultural by- products are gainfully utilised for feeding the animals. Almost all draught power for farm operations and transportation is supplied by bullocks. Since agriculture is mostly seasonal, there is a possibility of finding employment throughout the year for many persons through dairy farming. Thus, dairy also provides employment throughout the year. The main beneficiaries of dairy programmes are small/marginal farmers and landless labourers.  The Indian dairy market holds tremendous potential that can be harnessed with focussed strategies. Worth INR 5,000 billion in 2016, 80% of the industry remains unorganized. While multiple opportunities exist for dairy companies, rural focus and wellness/premium products will be primary. The dairy market in India reached a value of INR 9,168 Billion in 2018. Along with offering profitable business opportunities, the dairy industry in India serves as a tool of socio-economic development. Keeping this in view, the Government of India has introduced various schemes and initiatives aimed at the development of the dairy sector in the country. For instance, the “National Dairy Programme (Phase-I)” aims to improve cattle productivity and increase the production of milk expanding and strengthening and expanding the rural milk procurement infrastructure and provide greater market access to the farmers. On the other hand, the private participation in the Indian dairy sector has also increased over the past few years. Both national and international players are entering the dairy industry, attracted by the size and potential of the Indian market. The focus is being given to value-added products such as cheese, yogurt, probiotic drinks, etc. They are also introducing innovative products keeping in mind the specific requirements of the Indian consumers. These players are also improving their milk procurement network which is further facilitating the development of the dairy industry in India. Looking forward, the market is expected to reach a value of INR 21,971 Billion by 2024, exhibiting a CAGR of around 16% during 2019-2024.

Location, Land , Building & Utilities

A normal clean shed has to provide for the animal. Aminimum of 50 sqr feet /animal has to provide for each animal. An electric feed cutter will be an added advantage in order to save time and other diary equipments for the animalshould be inculded.

Product / Services & process

Diary farm is oldest and one of the most employed sector in India. India is globally the largest milk producing country since 1997. (an estimated 400 million litre per day currently) and consumer of milk in the world. However, the per capita consumption is low and we consume milk, ghee, butter (other value-added products of milk – curd, cheese, frozen paneer, flavoured yoghurt, flavoured milk). People prefer antibiotic and oxytocin-free milk, delivered in glass bottles instead of plastic bags. Today many are a lot more conscious about animal rights, environment etc and want to consume milk from small farms as animals graze freely instead of feeding on soy fodder and corn 

Market potential & Strategy

In India, the co-operatives and private dairies have access to only 20% of the milk produced. Approximately, 34% of the milk is sold in the unorganized market while 46% is consumed locally. This is in comparison to most of the developed nations where almost 90% of the surplus milk is passed through the organized sector The price of the premium milk is immaterial, there seems to be a market for that high priced organic milk. People are willing to spend on such products. The more the people spend on such products, the better for the economy.

India has seen a substantial increase in the per capita income and growth in disposable income has significantly improved the purchasing power over the past decade. Rapid urbanization has led to a major increase in the demand for packaged/processed foods, favorably impacting the dairy industry in the country. In the era of digitization and increased access to actionable information, the Indian populace is becoming health and product quality conscious, which has led to the improved variety of food products available in the country. The ever-increasing demand for value-added milk products has also increased the demand for milk production.

India is one of the world's largest producer and consumer of milk. It contributes to almost 9.5%of the global milk production. Government sources  from the Ministry of Agriculture and Farmers Welfare report that milk production has increased by 20.13% in 2016- 17 as compared to 2013-14. An entire population that views milk as a vital protein source, coupled with the fact that approximately 29% of India's 1.3 billion5 population is vegetarian, makes milk and milk-based value-added products highly sought-after food products.

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