Dairy Farming (500 Cows) - Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Feasibility Study, Investment Opportunities, Cost And Revenue, Plant Economics
|In India dairying has been practiced as a rural cottage industry since the remote past. Semi commercial dairying started with the establishment of military dairy farms and cooperative milk unions throughout the country towards the end of the Nineteenth century. However market milk technology may be considered to have commenced in 1950, with the functioning of the Central Dairy of Aarey milk colony, and milk product technology in 1956 with the establishment of AMUL Dairy, Anand. The importance of milk in human diet especially for children and expectant and nursing matters is vital. To meet the demand of the increasing population milk production in India has to be increased. It is neither possible nor desirable to increase the cattle and buffalo population to achieve this target. This can only be achieved by stepping up milk production of our bovine population by cross breeding of cows and use of improved cows and cow. Unlike rich countries like the U.K. and the U.S. dairying in India is a subsidiary occupation of almost all the farmers. More than 60 percent of the families involved in dairying belong to the small or marginal farmers or even agricultural labourers. Thus the dairy cattle or buffalo rearing has vast scope for improving economic and in turn, the nutritional status of such people mainly coming from rural area. This will also help in achieving the balance between economic development of urban and rural population. The development and maintenance of a superior dairy herd can be a source of considerable pride and satisfaction. Success in dairy farming, like any professional achievement, does not come easily. It requires the very best of anyone's ability to properly manage, feed, and breed a good herd of cows. Milk is considered as top most wholesome single food available in nature for health. Ancient Vedic literature is full of evidences of the beneficial and therapeutic properties of milk products. Milk often from the major ingredient of Ayurvedic medicine. Milk production is the largest single enterprise in British agriculture, with an annual output valued at over £2,000 million. Basically India is an agricultural country and livestock sector is an integral part of agriculture. It is the back-bone of India’s economy in the form of income, employment and foreign exchange earnings. It is estimated that dairying sector alone is contributing 15% of the Gross National Income. In our country, nearly 80% of people living in villages, 69% of them are engaged in agriculture, 43% of them are cultivators having a bit of cultivable land. Remaining 26% are agricultural labourers who are having one or two milch animals. For small farmers, landless and agriculture labourers, the livestock sector is giving sustainity for their lives. Applying the general definition of technology, we may define dairy technology as a combination of theoretical and practical knowledge based on a scientific background and the control of processes for the treatment and conversion of milk into milk products. During the development of dairy technology, the following classical milk product groups and technologies have been developed: market milk (fluid milk), acidified milk products, butter, cheese and long-shelf-life products, which characterize milk processing. With the increasing variety of milk products, as well as the innovations in machinery and plant design, the basic technologies for dairy processing are being constantly modified. Uses The term ‘milk’ refers to a heterogeneous mixture secreted by the healthy mammary glands containing fat, proteins and carbohydrates along with minerals and vitamins in the form of emulsion, colloidal suspension and true solution respectively in the continuous phase of water. In the other words milk may be defined as an emulsion of fat in a watery solution of sugar and mineral salts and with protein in a colloidal suspension. It is a normal secretion of the mammary gland of mammals. According to PFA Rules (1976) cow milk should contain not less than 8.5 per cent of milk solids – not fat and not less than 3.5 per cent of milk fat while less than 6.00 per cent of milk fat. If fresh milk is tested with litmus, the so-called “amphoteric reaction” will be found, that is, blue litmus turns red, and red litmus turns blue. Fresh milk has a hydrogen-ion concentration of approximately pH 6.6 (cow milk) to pH 6.7 (Buffalo milk) which indicates that it is really somewhat on the acid side of neutrality. On storage of milk at some more temperature for some time, the acidity found increased to some extent and this increased acidity is known as “Developed acidity”. 1. Milk is used as a food. 2. Used as a complete food of infant. 3. It is used to prepare curd, butter, ghee, cream and ice cream etc. 4. Milk is used in all homes. 5. It is used in hotels and restaurants as milk food preparation and in the preparation of tea. Market Survey Dairy farming from being traditional family run businesses today has grown hugely to an organized dairy industry with technological specializations in every part of the process. There has been tremendous growth in dairy farming equipment that helps modern dairy farms to manage thousands of dairy cows and buffaloes. This huge boost in the industry has created a lot of farming jobs for the people. But many of the dairy farms still manage and run organic dairy farms mostly in villages and supply the milk to get processed by large companies and finally sell to the retail outlets. Globalization is one of the greatest strategic challenges for all Industries as well as dairy Industry. Global dairy market, over the recent years, expanded mainly due to introduction of new dairy products, like omega-3 fatty acids-enriched milk, and A2 milk, probiotic dairy product and etc that beside health benefit played a vital role in the growth of global dairy market. The global market for Dairy Products is forecast to reach US$494 billion by the year 2015. Recovery in consumption post global recession, continuing population growth, rising demand from developing countries, trade liberalization, and continued growth in advertising are expected to fuel market growth. The demand for quality dairy products is rising in all over the world especially in developing countries, therefore to improve quality of milk and dairy product. India has the highest livestock population in the world with 50% of the buffaloes and 20% of the world’s cattle population, most of which are milch cows and milch buffaloes. India’s dairy industry is considered as one of the most successful development programs in the post-Independence period. India is the world’s largest milk producer, accounting for more than 13% of world’s total milk production. As it is the world’s largest consumer of dairy products, but consuming almost 100% of its own milk production. Dairy products are a major source of cheap and nutritious food to millions of people in India and the only acceptable source of animal protein for large vegetarian segment of Indian population, particularly among the landless, small and marginal farmers and women. In India, about three-fourth of the population live in rural areas and about 38% of them are poor. Milk production gives employment to more than 72mn dairy farmers. In terms of total production, India is the leading producer of milk in the world followed by USA. Although milk production has grown at a fast pace during the last three decades, but the milk processing industry is small compared to the huge amount of milk produced every year. Only 10% of all the milk is delivered to some 400 dairy plants. The following possibilities are open to the producer: • To sell direct to the consumer. • To sell to a retailer, e.g. supermarket, cafe, street vendor, etc. • To sell to processors or distributors, e.g. Clover, Parmalat, neighboring farm etc. • Process and sell to retailer or consumer. Dairy farmers can use any of these marketing channels to market their products. While, in the organized dairy industry, the cooperative milk processors have a 60% market share. The cooperative dairies process 90% of the collected milk as liquid milk whereas the private dairies process and sell only 20% of the milk collected as liquid milk and 80% for other dairy products with a focus on value-added products. Currently, India has emerged as the top milk producing country in the world. The overall production stands at 130 tonnes according to a report. The Indian dairy farming industry is growing rapidly to meet the demands of the consumers in milk and milk products. The government had started a National Dairy Plan Phase 1 (NDP P1) in 2012 with an estimated investment of more than 2000 crores that will be implemented till 2016 – 17. Few Indian Major Players are as under A B T Industries Ltd. Amrit Corp. Ltd. Amrut Industries Ltd. Anik Industries Ltd. Anmol Dairy Ltd. [Merged] Asian Lakto Inds. Ltd. Bansal Naturevest Ltd. Cavinkare Pvt. Ltd. Dempo Dairy Inds. Ltd. Dinshaw'S Dairy Foods Ltd. Farmax India Ltd. Goga Foods Ltd. Goldline Milkfood Ltd. Gujarat Co-Op. Milk Mktg. Federation Ltd. Haryana Milk Foods Ltd. Hatsun Agro Products Ltd. Heritage Foods (India) Ltd. India Dairy Products Ltd. Indian Potash Ltd. Indiana Dairy Specialities Ltd. Induri Farm Ltd. Industrial Progressive (India) Ltd. K S E Ltd. Kaira District Co-Op. Milk Producers' Union Ltd. Kisan Cold Storage & Refrigeration Service Ltd. L V P Foods Pvt. Ltd. M R Italian Chains Ltd. Metro Dairy Ltd. Milkfood Ltd. Mother Dairy Food Processing Ltd. [Merged] Mother Dairy Kerala Ltd. [Merged] Natural Sugar & Allied Inds. Ltd. Nikumbh Dairy Products Ltd. Panchmahal District Co-Op. Milk Producers' Union Ltd. Param Dairy Ltd. Pilani Industrial Corpn. Ltd. Premier Industries (India) Ltd. Rama Dairy Products Ltd. Ramya Agro Products Ltd. Ravileela Dairy Products Ltd. Reliance Dairy Foods Ltd. Rishabh Agro Inds. Ltd. Siddhivinayak Dairy & Food Products Ltd. Sri Skandan Inds. Ltd. Suman Agritech Ltd. Svera Agro Ltd. V R S Foods Ltd. Vadilal Dairy International Ltd. Vidya Dairy Vijay Agro Products Pvt. Ltd. Vital Foods Ltd.|
|Plant capacity: 25,20,000 LTS/Annum||Plant & machinery: Rs. 239 Lakhs|
|Working capital: -||T.C.I: Cost of Project: Rs 605 Lakhs|
|Return: 34.00%||Break even: 39.00%|
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