Dairy Farming Setup in India is Looking for Startup Funding

Opportunity Snapshot

  • Country: India India
  • Industry: Agriculture
  • Stage: Start-up
  • Investment size: $70,000 / min. $50,000
  • Type of investment: Debt, Equity
Jars with Milk

Investment Opportunity

We are looking to set up a dairy farm in Bihar or Jharkhand. We have land available in both locations. We are requiring an investor for our project.

Enhancement in milk processing has necessitated the increased demand for milk and this triggered the setting up of many commercial dairy units in medium and small scale in different parts of the country. Introduction of high yielding crossbred cows, the easy accessibility of improved technologies, and availability of compounded feed are the other factors responsible for this shift from traditional mixed farming production to specialized dairy production system Dairying with high yielding crossbred cows has generated ample scope for developing the dairy farming on commercial lines as a business enterprise.

Dairy farming is best suited both for uneducated and the educated unemployed rural youth as they may already be possessing some experience of working with the animals and they may also be owning some land for setting up the dairy farm.

Competitive Advantage

Milk is one of the widely and extensively used items in Indian cuisine throughout country. India has the privilege to be the largest producer of liquid milk but still there is a gap between demand and supply. The country production of milk is one hundred and twelve million ton and there is increase of production of milk in the country at the rate of 3.5 million ton per year but it is not enough to meet the demand in the country of milk which is increasing at the rate of six million ton per year. So this is massive gap of demand and supply of milk. With milk product exports forming around 5 per cent of India's total milk production, and domestic demand for dairy products remaining strong, there is the demand-supply gap. The demand for milk and value-added dairy products in the domestic market has been growing at over 6 to 8 per cent per annum because of increasing income, rising aspirations, and consequent growth in per capita milk consumption. The demand for milk more than doubled on the religious occasion like Maha Shivratri. Apart from 'abhishek' rituals, milk is also required for the preparation of thandai which is consumed as prasad by the devotees. A number of vendors, thandai shop owners and sweet makers purchase milk in bulk one day in advance. There is good demand of milk during peak wedding season also.
Milk can be sold to milk cooperative societies as well as entrepreneur can develop his network of consumers. Milk can be sold in the immediate market directly to customers, hotels, hospitals, sweet makers etc. Hotels and some
general customers (can be around 30%) prefer pure buffalo milk where as hospitals, sanitariums prefer cow’s milk. One can reach buy back agreement with either district milk union or with private milk marketing company.

Rationale for the deal

Project Location:
The dairy farm will be located in an area where there is assured market of milk round the year. It is easily accessible to the main road.

Feed & Fodder cultivation:
Fertile land with assured irrigation facilities is available so that all the seasonal fodder crops could be successfully raised and abundant good quality green fodders will be made available for animal feeding throughout the year.

Good quality fresh water for animal drinking and for the cleaning, washing etc. is available

Adequate supply of electricity is available.

Honest, economic and regular supplies of labours are available.

Veterinary Aid:
Veterinary Hospital, Artificial Insemination Center/Livestock Aid Centers are available close to the dairy farm.

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