Dairy Farming Business Plan: Complete Cost, Expenses, and Profit Calculation
Introduction
10 Cow Dairy Farm Income , Dairy farming has always been the backbone of rural India, and today many young entrepreneurs are considering it as a profitable business opportunity. But before starting, one important question comes to mind: How much investment is required? What are the annual expenses? And most importantly, how much profit can be earned?
In this blog, we will go through a detailed calculation for starting a dairy farm with 10 cows. You’ll get a clear idea about the initial investment, running costs, revenue, and net profit so that you can plan your dairy farm without any financial loss.
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Initial Investment
To set up a small dairy farm, you need cows, proper infrastructure, and some basic machinery. Here’s the breakdown:
Cows Purchase: One cow costs around ₹50,000. For 10 cows = ₹5,00,000
Infrastructure (shed, water, basic facilities): ₹3,00,000
Machinery (milking machine, chaff cutter, etc.): ₹2,00,000
👉 Total Initial Investment = ₹10,00,000
Annual Expenses
Running a dairy farm requires recurring expenses every year. Let’s calculate:
1. Feed and Fodder
Each cow consumes around 20 kg of feed per day.
Yearly requirement = 7300 kg (per cow).
For 10 cows = 73,000 kg.
At an average cost of ₹30 per kg = ₹2,19,000.
Including green fodder cultivation or rented land, the total feed and fodder expense is around ₹3,00,000.
2. Veterinary and Medicines
Vaccinations, medicines, and regular check-ups = ₹50,000/year
3. Labor Cost
One worker can easily manage 10 cows.
Average salary = ₹12,000–₹15,000 per month
Total = ₹1,50,000/year
4. Miscellaneous Expenses
Small activities like maintenance, rituals, visitors, etc. = ₹50,000/year
Revenue from Dairy Farm
One cow gives on average 10 liters of milk per day.
Lactation period = 300 days/year
Per cow = 3000 liters annually
10 cows = 30,000 liters/year
If milk is sold at ₹40 per liter:
👉 Total Revenue = ₹12,00,000/year
Net Profit
Total Revenue: ₹12,00,000
Total Expenses: ₹5,80,000
Net Profit = ₹6,20,000/year
Return on Investment (ROI)
he formula is:
Profit ÷ Investment × 100
= 6,20,000 ÷ 10,00,000 × 100
= 62% ROI
This means dairy farming with 10 cows can give you more than 60% annual returns, making it one of the most profitable rural businesses.
Key Highlights
Investment required for 10 cows = ₹10 lakh
Yearly running cost = ₹5.8 lakh
Net annual profit = ₹6.2 lakh
ROI = 62% → Highly profitable business model
Conclusion
Dairy farming is not just a traditional livelihood but also a highly profitable business opportunity if planned correctly. With the right investment and proper management, you can earn a steady income while building a sustainable business.
Though the initial setup cost is higher, the long-term profit and strong ROI make dairy farming a golden opportunity for aspiring entrepreneurs.
Frequently Asked Questions (FAQ)
How much investment is required to start a dairy farm with 10 cows?
Starting a dairy farm with 10 cows requires an investment of around ₹10 lakh, including cow purchase, shed construction, and machinery.
What are the annual expenses of a 10-cow dairy farm?
The yearly expenses are around ₹5.8 lakh, which includes feed, fodder, veterinary care, labor, and miscellaneous costs.
How much milk does one cow produce per year?
On average, one cow produces about 3,000 liters of milk annually (10 liters per day for 300 days).
How much profit can a 10-cow dairy farm generate?
A 10-cow dairy farm can generate an annual net profit of approximately ₹6.2 lakh.
What is the ROI (Return on Investment) in dairy farming?
The ROI is about 62% annually, making dairy farming a highly profitable business opportunity.
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