We are considering a business plan for a business such as a dairy farm

Unfortunately, in Russia and other CIS countries production not very tuned up. Only some categories of goods are in such a huge demand that entrepreneurs and businessmen are ready to invest in the production of a product. We are now talking not about the industry, with which everything is more or less normal, but exclusively about consumer goods. Now the CIS countries produce, in the vast majority of cases, only essential goods such as bakery products, sausages, dairy products, as well as alcoholic beverages (probably one of the most "trading" goods, unfortunately).

In this article, we will show a typical dairy farm business plan that you can implement on your own, as well as give information on how much money and effort you will need to organize such a business and what is the average profitability.

It is worth saying that dairy products are very popular with us, milk is not just a “drink”, or the “first” goods made from it (cheese, cottage cheese, yogurt, etc.), today it and dairy by-products are used in most industries. For example, the so-called milk powder, without which no bread-factory can do, as well as ice cream and many other types of products.

Previously, due to the shortage of “native” production in Russia and other neighboring countries, a lot of dairy products were sold from abroad, this is a huge minus for the entire economy, because such products are much more expensive than “our own” ones - this time, the profit from the sale does not go to the treasury ( in the form of taxes), as well as our residents (who would be engaged in production), and, for the most part, an imported manufacturer. But due to the high foreign exchange rate in recent years (and especially months), imports of dairy products have significantly decreased and there is a need for “our own” milk. So now you can make good money by opening a dairy farm, the only difficulty for most people is the absolute ignorance of this topic, because cows are living creatures and they need careful, special care.

Despite many difficulties, do not be afraid to start a business. Recently, the conditions have changed and now technology helps on such farms in most processes. And having drawn up a competent business plan for a dairy farm, or finding an existing one, you can calculate in advance how much money you will need to purchase cows, build premises, as well as all the necessary equipment and livestock maintenance (this is also a significant part of the costs, especially at the initial stage when money flies away for everything-everything).

How to open your own dairy farm and what to look for

Now we go directly to the dairy farm business plan - how, what and how much, as well as in what time frame. It is worth saying that there are 2 main directions in this field of activity and you, depending on financial capabilities, should immediately decide what you will pull. In most cases, newcomers want to “rise” in this type of business, so:

The first is the opening of an industrial farm of a huge scale (starting from 100 heads you can have huge incomes, with a competent organization of production, of course), which requires millions of investments (in rubles) at the initial stage. The second - "part-time work", or not the main type of activity, is suitable for those people who have money to organize their own business and live in rural areas (well, or near it, in order to be able to control all processes personally).

In the case of the first option, a huge plot of land is purchased, on which a modern farm is being built, taking into account the latest trends in this market (in other words, very expensive), the equipment is taken as automatically and best as possible, so that the least number of people take part in milk production. To do this, they buy "milking machines" that are available to cows around the clock, when they want - they approach them and "give" milk, respectively, the "organizers" of this process, which are needed on small farms, can not be involved and their wages can not be paid, but the equipment such a plan will cost oh so expensive. The same applies to the direct purchase of livestock, a cow costs, on average, from 40 to 100 thousand rubles, depending on the breed, “condition” (how and where it was grown, whether it has the necessary vaccinations and stuff like that) and size, so 100 heads will pull at least 5-10 million rubles.

The second option is suitable for most of our audience, as it can be implemented even with a small amount to start. In some not very progressive village, buying land or a barn, as well as reconstructing it, will not be too expensive, especially if you are an entrepreneur, you can save money at all stages and do some types of work yourself, or with the help of local residents, those who want to earn money, who will take much less money for the object than the "urban". For the purchase of 10-15 cows, you will need an amount of ~ 600-800 thousand rubles (or about 17-20 thousand dollars), you need a minimum of equipment, there is not too much feed at first either (namely, about growing cows and the nuances associated with this business, read on in our dairy farm business plan).

So decide for yourself whether you have enough strength and money to start such a business. At the initial stage, it will be very difficult, but in the future, when work will improve, it will be possible to have additional income without any problems and increase the livestock, becoming richer over time, which will allow you to modernize the farm and increase production even more.

Features of this type of business as a dairy farm

Russia's demand for milk is huge - today the required volume is much more than 60 million tons per year, so many will be able to squeeze into this business, ultimately there are still imported goods that can be displaced if you try hard (due to the conditions business, importers simply will not be able to compete with local manufacturers on price). For the right start of this, and any business, it is worth deciding on all stages of action and gaining knowledge about each of them, because any little thing at the initial stage can be for you both an opportunity to save extra money, and lose it if you are in the dark. We offer a basic business plan for a dairy farm, which allows you to get an overall picture of such a business as the production and subsequent sale of milk to buyers.

The most important thing here, as you already understood, is the cows, which are the producers of the main product - milk, therefore, providing them with everything necessary and properly caring for them, you will have a good milk yield and sales, otherwise it will be difficult even to return the initially invested money spent for the construction of a dairy farm and the purchase of livestock.

There is a close relationship between productivity and "live" weight of a cow. The larger the animal, the higher the efficiency, for example - a cow weighing 450 kg gives milk, more than its own weight, only 6.5 times, while having a mass of 750 kg (not even 2 times higher than the previous one), we will get "milk" 14 times the mass of a cow. And this is just one of the nuances, so it’s not worth saving on the necessary care and food, because the larger the animal, the more milk you get and the less the cost of one liter will be for you, as a producer.

The same applies to feed consumption - the more productive the cow, the less she consumes "per unit of product", or, more simply, a liter of milk. And this means the following - at the initial stage, you will need a maximum of cash injections in order to “feed” the cows to their best form, when they give a lot of milk, the cost of which will remain the lowest possible for you.

Who is the best dairy farm business plan for?

Of course, everyone can open their own dairy farm, but there are a huge number of nuances that make it much easier and more profitable to do it in a rural area (and living in it) than being a resident of a metropolis. If we consider a dairy farm as a business for beginners, then it will be most productive to build (or buy an abandoned barn from neighbors, if there is one), after which it is enough just to buy a dozen heads of cows. With the most efficient approach to raising livestock, in the near future you will be able to make good money selling milk to buyers.

Speaking of efficiency, we return to the topic of the mass of a cow - the more it is, the more milk it can give, so it’s definitely not worth holding money for feeding livestock - the larger it becomes, the less your costs for the production of one liter of milk become, accordingly, you can earn more on a dairy farm. The business plan for a dairy farm is quite simple - especially when it comes to a small farm near your own home. It will be enough just to have a room and a few heads of cattle (for starters), after when the money appears, the business can be scaled up, it’s just that initially you are unlikely to pull a large farm (for example, to open a dairy farm for 250 heads, you will have to spend tens of millions of rubles, which they can afford very few).