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How to Start a Dairy Farm Business in India


Milking Success: A Step-by-Step Guide to Launching a Profitable Dairy Farm Business in India

Are you ready to elevate your dairy farming into a profitable business?

Look no further!

This comprehensive guide is built in a manner that would walk you through the essential steps in launching a successful dairy farm business in India. Be it hunting for the right cattle breed or setting up the infrastructure to implement management practices, we have you covered. 

With India being one of the world's largest milk producers and consumers, the dairy industry is a lucrative business option, offering immense potential for growth and profitability. Afterall, it is the implementation of the right strategies and market opportunities that you can build a thriving dairy farm business that not only meets the demand for high-quality milk but also generates substantial revenue. 

This guide will provide you with everything you need to know to ensure a solid foundation for your dairy farm business. 

Whether you are a novice farmer looking to start from scratch or an experienced entrepreneur seeking to expand your business, this guide will be your go-to resource for gauging success in the Indian dairy industry. 

Get ready to milk the opportunities and embark on a profitable venture.

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Unravelling the Potential: Exploring India's Favourable Landscape for Dairy Processing

India supports a wealth of production of about 146 million, making it the largest milk producer globally. As mentioned by the Ministry of Food Processing Industries, India's milk production is expected to reach around 180 million MT by 2020, from the current 146 million MT, where the projected demand (by NDDB) was anticipated to reach around 200 million MT. 

But, as propounded, the Indian Dairy Market is deemed to contribute as one of the largest and quickest growing ways to reach the markets in the world. Considering these details, India has managed to transcend and reach a higher position in milk production globally, catering to the rising bovine population. Accordingly, it is noteworthy that the existing potential for the Indian milch herd remains untapped & unattended. As their record suggests, the per capita availability of milk had reached around 322 grams per day, which had been relatively higher than the world average of 239.7 grams per day. 

As noted, the growth drivers of this essential demand are due to the increasing health concerns and the disposable incomes topping the charts of milk products in India. For instance, to cater to this high-rising demand, dairy players have entered the dairy segment, having products such as flavored milk, cheese, yogurt & butter, etc. 

Pros of Dairy Farm Business in India

Dairy Farm business in India is one of the most gainful and advantageous businesses, which offers prospects and is anticipated to make considerable strides in the long run. To Harvest the rewards, you must understand why it is a profitable idea for many in the first place- 

  • The demand for dairy products is skyrocketing, reaching untapped potential while living the benefits it offers. Because of this, growth remains evident while also contributing to the rewarding business in India.
  • Within this sector, you form solidified relationships with people across different sectors while establishing a network that endorses or appreciates long-term growth.
  • Once you adapt to how the business functions, you may find this venture easier than it seems. You can easily cope with the model and get things done quickly. 

Step-By-Step Procedure to Start a Dairy Farm Business in India

If you hail from the Dairy Business and are looking to establish a business in India, then you must consider these steps, which are as follows-

Step 1- Research your Dairy Business Plan                      

Before carrying out the business operations, you must ensure you are pursuing your business objectives and have an overall mission. Have a plan of action for your dairy farming business so the management can fastrack this process and encourage you to procure the business loans or subsidies.

It is to be noted that having a dairy business is highly lucrative, with the undying demand for milk production in India. As a full-time season business, milk production must rise, encouraging entrepreneurs. 

Step 2- Selecting the Right breed of Dairy cows

Whenever you choose a breed of cows, you must ensure the following factors contribute to producing healthy and high-quality milk. Let us read the same-

  • Health and immunity are the most important factors when choosing a cow. Having one can lead to quality milk production and a productive life. 
  • Make sure you check the cow's milk production history, which would indicate whether a cow is deemed fit. 
  • A cow within the appropriate age range is essential for milk production since this is when they produce the most milk. 

Step 3- Setting up the infrastructure for a Dairy Farm

Dairy farms require well-ventilated, spacious facilities for animals. Among other things, there are various arrangements that you must look for to ensure that you invest wisely and expend rightfully. Let us have a look at the things which you should consider-

  • One must ensure sufficient land, depending on the number of animals (cows and buffaloes) a business usually owns.
  • One must consider ensuring a good slope & effective drainage system. Alongside, a footbath with disinfectants should be provided at the gate.
  • Installing a Shed is a must to protect them against the harsh weather conditions and keep them safe.
  • Ensure better living conditions for the animals, along with waste disposal 
  • If you are trying to scale your business, keep a space for the land where you can encourage crop cultivation, along with other processes.

Step 4- Dairy Farm Management and Feeding Practices

Monitoring Management and feeding practices closely is crucial to operating a dairy farm successfully. To ensure the management during the feeding practices, you must remember the following- 

  • Cows produce colostrum milk during calving, which has antibodies for a calf's immunity. The cow lactates for about ten months until impregnation. For instance, a healthy diet is essential for quality milk production. One must ensure the cows are fed adequate nutrients to achieve milking potential during peak lactation. 
  • Calves that have just been born must be kept separately in a ventilated and dry environment. 
  • Arrangements must be made to protect the calves against extreme weather conditions, mainly during the first two months. 
  • Vaccination of claves must be adequately ensured and taken off. 

Step 5- Dairy Farm Business Plan and Financial Projections

For beginning a venture, such as a Dairy Farm Business, the National Bank for Agriculture and Rural Development (NABARD) initiated something called the Dairy Entrepreneurship Development Scheme (DEDS), where the farmers can reap the benefits from the subsidies acquired on dairy farming loans, which are usually approved and found eligible on NBFCs and banks. 
Within this, farmers may undertake as much as 33.33% subsidy of the total project cost on the dairy farming loans, as much as Rs 7 Lakh, by visiting the approved Regional Rural Banks (RRBs) or commercial banks. Accordingly, the applicants can avail of these subsidies and any loan-regarding information by visiting NBFC and the nearest bank.

Considering the government incentives, you would still have to consider various points to have a financial plan. You may even need to purchase cows or buffaloes to arrange for fodder, transport, and shelter. This is not it, as beginning a dairy business in India covers costs in various aspects, ranging from insurance to medical facilities.

Step 6- Marketing and selling Dairy products in India

Starting a business is one thing, but keeping it alive is rare. To keep it running & ongoing, let your target audiences know about your high-quality products. No wonder there lies high competition in business, and it is through business promotions only (be it an online review or word of mouth) that you can convince your customers and increase sales in the future.

Therefore, we can establish a dairy farm business in India with it being a stepwise process involving choosing the business plan, the right breed, setting the infrastructure, feeding practices along marketing of these produced Dairy Products.

Final Thoughts

Suppose you wish to establish a successful dairy farm business in India. In that case, you must conduct thorough market research, choose a suitable location, acquire cattle, and use efficient management practices by adhering to regulatory guidelines. Consider animal health, seek technologies that uplift your business motives, and opt for marketing channels to pursue sustainable growth.

Public Limited Company

A public limited business structure is great for long run but has more regulatory. Apart from all the advantages of private limited company. It has the ability to have any number of members, ease in transfer of shareholding and more transparency.


If you are into food business with revenue below 12 Lakhs, you must obtain an FSSAI Registration before starting operations. Corpseed can help you to obtain FSSAI registration for your business.

FSSAI Central

FSSAI Central License PAN India in no time. In case you want to import/export or sell your products on an E-Commerce Website, you must obtain an FSSAI Central License. Team Corpseed will help you to obtain FSSAI central license.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.


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Hansika Bhardwaj is a versatile writer, editor and poet.  She is a graduate of the University of Delhi with a specialisation in English Literature. As a cherry on the cake, she has worked with various companies dealing with various types o...

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