micro dairy business plan

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From farm to table: setting up a micro dairy for small-scale, boutique production.

The world of dairy production is not limited to large-scale operations. For those passionate about sustainable farming and high-quality dairy products, setting up a micro dairy can be a rewarding endeavor.

In this comprehensive guide, we will delve into the industry, discuss what it takes to get started, explore the best breeds for cows and goats, highlight various specialties for micro dairies, provide insights into costs, and offer tips on branding and marketing. We’ll also showcase some real micro dairy producers who have made a mark in the industry.

The Micro Dairy Industry

The micro dairy industry has gained momentum in recent years, driven by consumer demand for locally sourced, artisanal dairy products. Micro dairies typically focus on small-scale production, allowing for more hands-on care of the animals and attention to the quality of the final products. These dairies often prioritize sustainable and ethical practices, connecting consumers with the origin of their dairy products.

Getting Started: What You Need & What To Know

Starting a micro dairy on your property as a homesteader, hobby farmer, or small farmer can be an exciting and rewarding venture. However, there are several key considerations and requirements to keep in mind to ensure a successful and sustainable operation. Here’s a quick overview of what you’ll need to get started:

Research and Planning : Begin by conducting thorough research on dairy farming practices, local regulations, and market demand for dairy products in your area. Understand the specific requirements for establishing a micro dairy and the necessary permits or licenses you may need.

Adequate Space and Facilities : Evaluate your property to ensure you have enough space to accommodate your dairy operation. You’ll need a dedicated area for the cows, including grazing land and a shelter or barn for housing them. Additionally, you’ll require milking parlors or a milking station, storage facilities for milk, and a processing area if you plan to process the milk on-site.

Suitable Breeds : Choose a dairy cattle breed that suits your specific goals and the local climate. Popular breeds for small-scale dairy farming include Jerseys, Guernseys, and Brown Swiss. Consider acquiring young heifers and raising them on your property, or purchasing mature cows from reputable sources. Aim to have a small herd size initially, perhaps 2 to 5 cows, as this is more manageable for beginners. For goats, you’ll likely want to stick to either the Alpine or Nubian breeds. 

Feed and Nutrition : Develop a feeding plan that meets the nutritional requirements of your cattle. Pasture grazing should be a significant component, supplemented with hay, silage, and possibly grain-based feeds. Consult with a local veterinarian or an experienced dairy farmer to ensure your feeding regimen is well-balanced and supports optimal milk production.

Milking Equipment : Invest in suitable milking equipment, including a milking machine or hand-operated milking devices. Ensure that all equipment is clean, well-maintained, and in compliance with hygiene standards. You may also need milk cooling and storage equipment, such as bulk milk tanks or smaller refrigeration units.

Double Milking Machine for Cows

A good example of a possible milking machine you may choose, this one (Dakoa does not recommend any particular brand or model) retails for around $2,000.

• Milk Handling and Processing : Decide whether you want to sell raw milk or process it into value-added products such as cheese, yogurt, or butter. If you plan to process milk, you’ll need appropriate equipment and facilities, including pasteurization equipment, cheese vats, and packaging materials. Ensure you comply with local health and safety regulations regarding milk handling and processing.
• Marketing and Distribution : Identify your target market and develop a marketing strategy to reach potential customers. This could include selling directly to consumers through on-farm sales, farmers markets, or establishing relationships with local stores, cafés, and restaurants. Consider creating a brand and promoting your products through online platforms and social media as well.
• Financial Planning : Prepare a comprehensive business plan that outlines your goals, projected expenses, and potential revenue streams. Consider startup costs, ongoing operational expenses, and any loans or grants that may be available for small-scale agricultural ventures. Ensure you have a clear understanding of the financial viability of your micro dairy before committing significant resources.
• Knowledge and Skills : Acquire the necessary knowledge and skills to manage a dairy operation successfully. Attend workshops, training programs, or seek mentorship from experienced dairy farmers to learn about best practices in cattle management, milk production, and dairy processing.
• Compliance and Regulations : Familiarize yourself with local regulations, licensing requirements, and health and safety standards related to dairy farming and milk processing. Ensure that you adhere to these regulations to maintain a legal and reputable operation.

Remember, starting a micro dairy requires hard work, dedication, and a commitment to animal welfare and sustainable practices. Continuously educate yourself, adapt to market demands, and seek support from the farming community to enhance your chances of success.

Best Breeds for Cows

Here’s an overview of the popular dairy cattle breeds for small-scale farming, including Jerseys, Guernseys, and Brown Swiss, and their characteristics in terms of milk production, output, meat, care, temperament, and size:

Known for their rich, creamy milk with high butterfat and protein content, Jersey cows are popular among micro dairy producers. They are docile, efficient grazers, and adapt well to various climates.

• Milk Production : Jerseys are known for their high butterfat content, making their milk ideal for producing rich and flavorful dairy products such as cheese, butter, and ice cream. While they have a smaller frame compared to other breeds, Jerseys are efficient milk producers.
• Milk Output : Jerseys produce a moderate amount of milk per day, typically ranging from 4 to 6 gallons.
• Meat : Jerseys are not primarily bred for meat production, as their focus is on milk production. However, their calves can be raised for beef if desired.
• Care : Jerseys are generally hardy and adaptable to various climates. They require adequate grazing pasture, good quality hay, and proper nutrition to maintain their milk production.
• Temperament : Jerseys are known for their docile and friendly nature, making them easier to handle and work with, especially for small-scale operations.
• Size : Jerseys are a smaller breed, with cows weighing between 900 and 1,200 pounds (410 to 540 kg) and standing about 4 to 4.5 feet tall at the shoulder.

Guernsey cows produce milk with a golden hue due to the high beta-carotene content in their diet. They are renowned for their gentle nature and ability to thrive on pasture-based systems.

• Milk Production : Guernseys are recognized for their milk’s golden color and high butterfat content, which produces rich and creamy dairy products. They have good milk production capabilities and are efficient converters of feed into milk.
• Milk Output : Guernseys produce a moderate to high amount of milk, averaging around 6 to 8 gallons per day.
• Meat : Like Jerseys, Guernseys are not primarily raised for meat production, but their calves can be used for beef.
• Care : Guernseys require proper nutrition and a well-balanced diet to maintain their milk production. They are adaptable to different climates and can thrive on pasture-based feeding systems.
• Temperament : Guernseys are generally known for their calm temperament, making them easy to handle and work with.
• Size : Guernseys are medium-sized cows, with adult females weighing between 1,000 to 1,400 pounds (450 to 635 kg) and standing about 4.5 to 5 feet tall at the shoulder.

Brown Swiss

Highly valued for exceptional milk production and longevity, Brown Swiss cows offer a well-balanced milk composition suitable for various dairy products. Their hardiness, adaptability to different climates, and calm temperament make them popular among small-scale dairy farmers.

• Milk Production : Brown Swiss cows are renowned for their exceptional milk production and longevity. Their milk has a good balance of butterfat and protein content, making it suitable for a wide range of dairy products.
• Milk Output : Brown Swiss cows produce a relatively high volume of milk, typically ranging from 6 to 10 gallons per day. Meat: While Brown Swiss are primarily known for milk production, their calves can be raised for beef. They have good meat quality.
• Care : Brown Swiss cattle are known for their hardiness and adaptability to various environmental conditions. They are generally low-maintenance and have a good feed conversion efficiency.
• Temperament : Brown Swiss cows are usually calm and gentle, although individual temperaments can vary. They are generally easy to handle and work with.
• Size : Brown Swiss cows are larger compared to Jerseys and Guernseys. Females can weigh between 1,200 to 1,800 pounds (540 to 820 kg) and stand about 4.5 to 5.5 feet tall at the shoulder.

Each of these breeds has its unique strengths, and the choice depends on your specific goals, preferences, and the characteristics that align with your farm’s needs. Be sure to consider factors such as milk production, temperament, care requirements, and the overall suitability to your local climate and farming conditions when selecting a breed for your small-scale dairy operation. The right breed can make a huge difference!

Best Breeds for Goats

Don’t automatically assume your boutique dairy farm must be cattle-based. Why not tap into a growing niche and choose to focus on goats instead?

Here’s an overview of two popular goat breeds for small-scale dairy farming , including Alpine and Nubian goats, and their characteristics in terms of milk production, output, meat, care, temperament, and size:

Alpine Goats

Alpine goats are hardy and versatile, thriving in various environments. They produce a good amount of milk with medium butterfat content and are suitable for both dairy and meat purposes.

• Milk Production : Alpine goats are known for their excellent milk production. They produce a good quantity of milk with a moderate to high butterfat content, making their milk suitable for various dairy products.
• Milk Output : Alpine goats can produce around 1 to 2 gallons of milk per day, depending on factors such as genetics, nutrition, and lactation stage.
• Meat : While Alpine goats are primarily raised for milk production, their offspring can be used for meat production. They have decent meat quality.
• Care : Alpine goats are hardy and adaptable to different climates. They require a well-balanced diet with adequate pasture grazing, hay, and supplemental feed to maintain their milk production.
• Temperament : Alpine goats are generally known for their friendly and easygoing nature. They are social animals and can be quite docile, making them manageable and suitable for small-scale operations.
• Size : Alpine goats are of medium size, with females weighing between 135 and 155 pounds (61 to 70 kg) and standing about 30 to 32 inches tall at the shoulder.

Nubian Goats

Nubian goats are prized for their high milk production and sweet, flavorful milk. They are known for their distinctive long ears and adaptability to different climates.

• Milk Production : Nubian goats are popular for their high milk production and rich, creamy milk. They have a high butterfat content, making their milk desirable for making cheese, butter, and other dairy products.
• Milk Output : Nubian goats can produce around 1.5 to 3 gallons of milk per day, depending on various factors such as genetics, nutrition, and lactation stage.
• Meat : While Nubian goats are primarily bred for milk production, their offspring can also be used for meat production. They have good meat quality.
• Care : Nubian goats have specific nutritional requirements and need a well-balanced diet, including good quality forage and proper supplementation. They can adapt to different climates, but are more susceptible to extreme heat compared to other breeds.
• Temperament : Nubian goats are known for their friendly and outgoing personalities. They can be quite vocal and assertive compared to other breeds, but are generally affectionate and social.
• Size : Nubian goats are relatively large in size compared to some other breeds. Does typically weigh between 135 and 175 pounds (61 to 79 kg) and stand about 30 to 32 inches tall at the shoulder.

Specialties for Micro Dairies: Create That Boutique Farm-to-Hand Experience

A micro dairy creamery offers a unique opportunity to produce artisanal butters, creams, and cultured dairy products like yogurt and sour cream. 

With small-scale production, micro dairies can focus on crafting these products in small batches, allowing for meticulous attention to detail and the creation of distinctive flavors and textures. 

By using their own high-quality milk, micro dairies can ensure the exceptional taste and quality of their creamery products, appealing to discerning customers who value small-batch, locally sourced dairy.

Cheese Production

Micro dairies specializing in cheese production can delight in crafting handcrafted cheeses that cater to diverse tastes.

From classic varieties like cheddar, gouda, and feta to delicate soft cheeses like camembert, micro dairies can experiment with different recipes, aging techniques, and flavor profiles.

Small-scale production allows for closer monitoring and care during the cheese-making process, resulting in unique and flavorful cheeses that stand out in the market.

Micro dairies can also leverage their flexibility to create limited edition or seasonal cheeses, attracting cheese enthusiasts seeking exceptional and distinctive offerings.

Micro dairies can create delectable, small-batch ice cream that showcases the richness and quality of their own high-grade milk.

With the ability to control every step of the production process, micro dairies can craft ice cream with superior taste and texture.

They have the freedom to experiment with a wide range of flavors, incorporating locally sourced, seasonal ingredients to create unique and exciting taste experiences.

Moreover, micro dairies can cater to niche dietary preferences by offering specialized options such as vegan or lactose-free ice creams, expanding their customer base and meeting the needs of a diverse consumer market.

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By specializing in these areas, micro dairies can differentiate themselves from larger-scale operations and offer consumers a truly distinctive and high-quality dairy experience. They can  showcase their craftsmanship, creativity, and commitment to producing exceptional dairy products that capture the essence of local and artisanal production.

Cost Considerations

Starting a micro dairy isn’t cheap, but there are resources like grants you can apply for as well as small business agricultural loans. Make sure you have enough financing when you first start up to cover your micro enterprise for at least a year, just in case.

Here are a few things you’ll need to consider and budget for moving forward:

The cost of acquiring cows or goats can vary depending on factors such as breed, age, and quality. Prices may range from a few hundred to several thousand dollars per animal. It’s important to research different breeds and their market prices to find animals that align with your budget and desired production goals.

Also, make sure to consider the ongoing costs of maintaining the health and well-being of the animals, such as veterinary care, vaccinations, and deworming.

Infrastructure

Building suitable housing, milking parlors, fencing, and purchasing milking equipment are crucial investments for a micro dairy. The infrastructure costs can vary widely depending on factors such as the size of the operation, the complexity of the facilities, and the availability of existing structures.

It’s highly recommended to consult with experts or experienced farmers to determine the appropriate infrastructure requirements and estimate the associated costs. Investing in quality infrastructure is essential for ensuring animal welfare, milk quality, and operational efficiency.

Feed and Supplies

Micro dairies need to budget for animal feed, supplements, bedding, and general supplies. The cost of feed can vary based on factors such as the type of forage available, the nutritional requirements of the animals, and the local market prices.

Proper nutrition is crucial for the health and productivity of the animals, so it’s important to allocate sufficient funds for high-quality feed. Don’t forget other supplies like cleaning agents, milking supplies, and bedding materials, as they are essential for maintaining a clean and hygienic environment.

Labor costs should also be taken into account when establishing a micro dairy. While small-scale operations may not require extensive labor, it is important to consider the time and effort involved in daily milking, feeding, animal care, and general farm maintenance.

If additional help is needed, budgeting for hired labor or considering partnerships or cooperative models can be beneficial.

Assessing the labor requirements and associated costs will help determine the feasibility and sustainability of the micro dairy venture.

Marketing and Licensing

Micro dairies should allocate resources for marketing efforts, such as branding, packaging, and promotional activities.

Developing a strong brand and establishing relationships with local markets, restaurants, and retail outlets can help create a customer base for the dairy products.

Additionally, ensure compliance with relevant licensing, permits, and regulations governing dairy production in your region.

Research the costs associated with obtaining necessary licenses and certifications to ensure legal compliance and product quality assurance.

Profitability and Pricing

It’s essential to consider the profitability of the micro dairy business and establish appropriate pricing for the dairy products.

Conduct a thorough analysis of the production costs, including feed, labor, infrastructure, and other overhead expenses, to determine the break-even point and potential profit margins.

Research local market prices for comparable products and factor in the uniqueness and quality of your offerings when setting prices. Regularly review and adjust pricing based on market demand, input costs, and profitability goals to ensure the financial sustainability of the micro dairy.

By carefully considering these cost factors and conducting thorough research and financial planning, aspiring micro dairy farmers can make informed decisions and establish a viable and sustainable operation.

Branding & Marketing Your Boutique Dairy

Crafting a unique and compelling brand for your small-scale boutique dairy farm is essential for attracting customers and standing out in the market.

Here are some valuable strategies and best practices to help you earn success before your competitors:

Use Your Unique Story

Develop a brand story that resonates with consumers and showcases what sets your micro dairy apart. Highlight elements such as sustainable practices, animal welfare, or your connection to the local community.

Share your journey, values, and the passion that drives your dairy farm. Consumers appreciate transparency and enjoy knowing the story behind their dairy products.

Highlight Your Product Quality

Place a strong emphasis on the exceptional quality of your dairy products. Highlight the benefits of small-scale production, where meticulous attention to detail ensures superior taste and freshness.

Emphasize the use of locally sourced, high-quality ingredients and traditional production methods. Consider obtaining certifications or labels that validate the quality and authenticity of your products, as this can build trust among consumers.

Develop Local Partnerships

Forge partnerships with local restaurants, cafés, farmers’ markets, and specialty food stores to showcase and sell your dairy products.

Collaborate with chefs and culinary professionals who value locally sourced, artisanal ingredients. Participate in community events, food festivals, and tastings to build brand awareness and establish personal connections with potential customers.

Consider offering special promotions or exclusive products for your local partners to incentivize collaboration and increase brand exposure.

Lean Into Educational Initiatives

Educate consumers about the benefits of small-scale dairy farming and the value of supporting local, sustainable agriculture.

Organize farm tours, workshops, or educational events where visitors can learn about the milking process, animal care, or cheese-making. Offer educational resources on your website, such as blog posts, videos, or recipes, to enhance customer engagement and foster a sense of connection with your brand.

Stand Out With Packaging and Design

Invest in eye-catching and professional packaging that reflects the unique character of your brand. Use high-quality materials and consider eco-friendly options to align with sustainability values.

The design should be visually appealing, showcasing your brand identity and evoking the desired emotions in consumers. Clear labeling that highlights key product attributes, such as the breed of the animals or the nutritional benefits of the milk, can also add value and differentiate your products.

Develop a Strong Online Presence

Establish a strong online presence to reach a broader audience and engage with potential customers. Create a user-friendly website that showcases your brand story, product range, and any certifications or awards.

Utilize social media platforms to share behind-the-scenes glimpses of your farm, introduce your team, and post engaging content related to dairy production and local food culture.

Interact with your audience, respond to inquiries, and encourage customer reviews and testimonials to build trust and credibility.

Get Great at Customer Engagement

Foster strong relationships with your customers by offering exceptional customer service and creating opportunities for feedback and dialogue.

Respond promptly to inquiries, address concerns , and express gratitude for their support. Consider loyalty programs, exclusive events, or newsletters to reward customer loyalty and keep them informed about new product offerings or upcoming farm activities.

Building a brand for your small-scale boutique dairy farm requires consistent effort, creativity, and a deep understanding of your target market.

By focusing on your unique story, product quality, local partnerships, and customer engagement, you can create a strong brand identity that resonates with consumers and establishes your micro dairy as a trusted and sought-after source of premium dairy products.

Finding Inspiration With Real Success Stories

Sweet grass dairy.

Sweet Grass Dairy, in Thomasville, Georgia, is known for its award-winning artisanal cheeses made from the milk of their grass-fed Jersey cows that happily meander throughout the property. They prioritize sustainable farming practices and have gained recognition for their commitment to quality.

• sweetgrassdairy.com

Stroud Micro Dairy

Stroud Micro Dairy is a co-op small dairy farm located in Stroud, UK that produces raw milk, yogurt, and raw milk kefir. With a commitment to regenerative farming and soil health, Stroud focuses on the well-being of their animals, people, and nature. Due to economic realities in the UK, Stroud is presently shut down until next year.

• stroudmicrodairy.co.uk

Setting up a micro dairy offers the opportunity to create high-quality, artisanal dairy products while promoting sustainability and local connections.

By selecting the best breeds, focusing on unique specialties, and employing effective branding and marketing strategies, micro dairy producers can carve out a niche in the dairy industry.

Inspired by real micro dairy pioneers, aspiring micro dairy owners can embark on a fulfilling journey of creating exceptional dairy products that delight consumers and support sustainable farming practices.

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Dairy Farm Business Plan Template

Written by Dave Lavinsky

Dairy Farm Business Plan

You’ve come to the right place to create your Dairy Farm business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Dairy Farms.

Below is a template to help you create each section of your Dairy Farm business plan.

Executive Summary

Business overview.

Pleasant Hill Dairy Farm is a startup dairy farm located in Cashton, Wisconsin. The company is founded by Jon and Susan Hartford, former managers of a corporate dairy farm business. Jon and Susan managed the production of milk, cheese and yogurt on ten farms within their former business and successfully grew the business in eight years from 1M to 4M in yearly revenue. They are known for their respectful, flexible and visionary management style.

Pleasant Hill Dairy Farm will provide a fresh alternative to corporate dairy farming. Pleasant Hill Dairy Farm will provide a one-stop shop for artisan cheeses, goat and cow milk, goat, sheep and cow cheeses, and a variety of garden fresh produce. All are organically processed and prepared for individual customers who are seeking the purity of organic, wholesome milk, cheese and produce.

Product Offering

The following are the products and services that Pleasant Hill Dairy Farm will provide:

• Organic cow and goat milk
• Organic cream and half-and-half
• Organic artisan cow, sheep and goat cheeses
• Organic fresh daily produce from the Pleasant Hill garden
• Garden and farm tours for guests
• Event venue: garden and farm locations
• Volunteer “Farmer for a Day” Program

Customer Focus

Pleasant Hill Dairy Farm will target all residents and visitors within the region. They will target consumers seeking artisan cheeses and vendors who sell the cheeses. They will target wedding planners and other party organizers. They will target volunteers for special programs that highlight the community importance of privately-owned farms.

Management Team

Pleasant Hill Dairy Farm will be owned and operated by Jon and Susan Hartford. They’ve recruited their former associate, Tom Watkins, to be their new Field Manager. In addition, they’ve recruited Sheila Watkins to be the Office Manager and caretaker of forms, filing and administrative tasks.

Success Factors

Pleasant Hill Dairy Farm will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team of Pleasant Hill Dairy Farm
• Unique artisan cheeses, organic milks, fresh produce and other farm-fresh items.
• Event venues for small or large parties and weddings, each with sunset views, garden patios and comfortable seating for guests.
• Opportunities for consumers to experience small farming via “Farmer for a Day” and other introductory experiences.
• Pleasant Hill Dairy Farm offers the best pricing in town. Their pricing structure is the most cost-effective compared to the competition.

Financial Highlights

Pleasant Hill Dairy Farm is seeking $200,000 in debt financing to launch its Pleasant Hill Dairy Farm. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for Pleasant Hill Dairy Farm.

Company Overview

Who is pleasant hill dairy farm.

Pleasant Hill Dairy Farm is a newly established, owner-operated dairy farm in Cashton, Wisconsin. Pleasant Hill Dairy Farm will be the unique, cost-effective, and engaging authentic dairy farm for visitors from the city and the surrounding communities. Pleasant Hill Dairy Farm will provide a comprehensive menu of artisan cheeses, milks and product for all customers to purchase. Their unique approach includes an offer for visitors to become a “Farmer for a Day” to better understand the importance of private farming by families rather than large conglomerates.

  Pleasant Hill Dairy Farm will be able to produce a variety of flavorful organic cheeses, organic milk from cows and goats, and a dairy selection of fresh produce from the farm. In addition, visitors can experience the joys of farming and get a “hands on” feeling for the occupation by becoming farmers for one day. The addition of offering event venues captures the beauty of the farm and will add to the revenue of the farm by maximizing the use of the land and natural beauty of the area. The team of professionals are highly qualified and experienced in dairy farming and the hospitality industry.

Pleasant Hill Dairy Farm provides exceptional artisan cheeses not to be found elsewhere and organic milks that consumers are searching for. The staff prides itself on delivering the best customer service as they engage with enthusiasm on behalf of their private farm-based business.

Pleasant Hill Dairy Farm History

Pleasant Hill Dairy Farm was purchased in 2018 by Jon and Susan Harfford. They have grown the 20 acre farm and animal population to include 5 acres of farm produce available year round and livestock including 45 sheep, 22 goats and 35 dairy cows. The Hartfords built barns, tack rooms, offices and a small store to accommodate all that is necessary to provide and sell products to the general public. They also constructed event venue areas for special occasions to add to the revenue stream for their business. Their approach is that consumers will love the artisan flavors of organic cheeses and appreciate their organic milks. The produce sold will be fresh from their gardens every day, which is appealing to consumers.

Since incorporation, Pleasant Hill Dairy Farm has achieved the following milestones:

• Registered Pleasant Hill Dairy Farm, LLC to transact business in the state of Wisconsin.
• Has a contract in place for a 10,000 square foot office near the entrance of their farm Reached out to numerous contacts to include Pleasant Hill Dairy Farm as an event venue.
• Contacted wholesalers with invitations to sell Pleasant Hill cheeses and milks.
• Began recruiting a staff of six and office personnel to work at Pleasant Hill Dairy Farm.

Pleasant Hill Dairy Farm Products and Services

The following will be the products and services Pleasant Hill Dairy Farm will provide:

• Uncured fresh artisan cheeses
• Cured and aged artisan cheeses
• Goat, sheep and cow yogurt
• Fresh farm produce harvested daily
• Farm tours for visitors
• “Farmer for a Day” guest program
• Event venues for weddings and parties

Industry Analysis

The dairy farm industry is expected to grow over the next five years to over $66 billion. The growth will be driven by consumers’ interest and consumption of organic dairy products and produce. In addition, the growth will also be driven by the consumers’ interest in sustainable farming methods. Many, if not most, consumers also look toward future farming practices that embrace advanced agricultural practices and technology, while at the same time minimizing the ecological footprint.

While some of the costs will increase due to the expense of livestock welfare requirements and farming supplies, including feed, the costs will decrease as artisan cheeses are introduced and consumers become familiar with the specialized, rich flavors of organic cheese, milk and yogurt products. Farms will become more valuable as land ownership shifts, however the farms that include a variety of uses for their farms, such as event venues, community outreach programs and other offers, will see appreciation for farms by consumers also grow.

Customer Analysis

Demographic profile of target market.

Customer Segmentation

Pleasant Hill Dairy Farm will primarily target the following customer profiles:

• All residents and visitors in the region of Cashton
• Consumers shopping for organic produce and dairy products
• Consumers shopping for artisan cheeses
• Event organizers and wedding planners
• Consumers seeking a farming experience or expanded knowledge of the land

Competitive Analysis

Direct and indirect competitors.

Pleasant Hill Dairy Farm will face competition from other companies with similar business profiles. A description of each competitor company is below.

PureBloom Dairy Ranch

PureBloom Dairy Ranch is owned and operated by the Granger Corporation, a C-corporation based in Milwaukee, Wisconsin. The company includes over 100 employees, along with multiple ranch managers and field staff. PureBloom Dairy Ranch is owned in conjunction with 56 ranches within the corporation, where milk and milk products are derived from large herds of Holstein cows. The corporation sells the milk and milk products primarily to chain retail grocery stores within Wisconsin and several neighboring states.

PureBloom Dairy Ranch provides milk and milk products to grocery stores within the Cashton region and also provides milk to the school district and state government eateries under yearly contracts. The milk and milk products are the products of cows that have ingested antibiotics; the milk and milk products are not organic.

Evergreen Dairy Farm

Evergreen Dairy Farm is owned and operated by Tracy Hanson, who specializes in providing cheeses for aficionados around the nation. The cheese is made from the milk of goats and sheep and is often cured for over one year while ripening. Flavors of the Evergreen Farm cheeses include Blue River cheese, French Pastry Cream Cheese, and other select artisan cheeses. The cheeses sold by Evergreen Dairy Farm are offered at twice the price of Pleasant Hill Dairy Farm cheeses, due to long ripening times and the costs associated with creating small batch cheeses for ecommerce returns. The company was founded in 2018 and has a small, faithful following of cheese lovers from around the nation.

Townsend & Hatch Farms

Larry Townsend and Gerry Hatch formed the Townsend & Hatch Farms in 2015 to carry on their family tradition of dairy farming. The 126-acre farm holds sheep, cows, goats and llamas, all prized for their rich, creamy milk products. Townsend & Hatch Farms has a primary focus of providing high-end consumer goods to specialty providers within the US dairy industry. As such, they do not offer sales within the local area, but provide bulk orders of milk products to select customers in restaurants, upscale spas and resorts. Their pricing of products is generally 150% higher than that of other organic milk farmers. The reputation of Townsend & Hatch Farms has grown exponentially over the past eight years and the company has grown to a 3M enterprise with several ranch and field managers and office staff.

Competitive Advantage

Pleasant Hill Dairy Farm will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Pleasant Hill Dairy Farm will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide pure, organic milks and milk products at reasonable prices.
• Unique artisan cheeses available only at Pleasant Hill Dairy Farm
• Opportunities for community learning and engagement via “Farmer for a Day” programs and guest tours of the farm
• Farm fresh, organic produce offered daily
• Event venues of weddings and other occasions located in serene, beautiful surroundings
• Unbeatable pricing for their customers; they will offer the lowest pricing in the city.

Promotions Strategy

The promotions strategies for Pleasant Hill Dairy Farm are as follows:

Word of Mouth/Referrals

Pleasant Hill Dairy Farm has built up an extensive list of contacts over the years by providing exceptional service and expertise in their former managerial roles. The contacts will follow Jon and Susan Hartford to their new company and help spread the word of Pleasant Hill Dairy Farm.

Professional Associations and Networking

Jon and Susan Hartford will join various community and trade associations. This will increase their visibility within the artisan and organic milk products market.

Print Advertising

Two weeks prior to launch, a direct-mail piece will be sent to all Cashton city and regional residents, inviting them to visit Pleasant Hill Dairy Farm to tour the farm. They will also be offered discounted pricing for milk, yogurt and artisan cheeses. During the launch, visitors will be offered taste-testings of cheeses to encourage purchases.

Website/SEO Marketing

Pleasant Hill Dairy Farm will fully utilize their website. The website will be well organized, informative, and list all the services that Pleasant Hill Dairy Farm provides. The website will also list their contact information and list their available products for sale. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “organic milk” or “Dairy farm near me,” Pleasant Hill Dairy Farm will be listed at the top of the search results.

The pricing of Pleasant Hill Dairy Farm will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Pleasant Hill Dairy Farm. Operation Functions:

• Jon Hartford will be the owner and President of the company. He will oversee all staff and manage client relations.
• Susan Hartford will be the Vice President of the company. She will oversee the growth of the business in property development and herd growth. Jon and Susan have spent the past year recruiting the following staff:
• Tom Watkins, their former Ranch Manager, will become their new Field Manager.
• Sheila Watkins, a former associate, will become the Office Manager and caretaker of forms, filing and administrative tasks.

Milestones:

Pleasant Hill Dairy Farm will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to build office space
• 5/15/202X – Finalize personnel and staff employment contracts for the Pleasant Hill Dairy Farm
• 6/1/202X – Finalize contracts for Pleasant Hill Dairy Farm wholesale clients
• 6/15/202X – Begin networking at association and trade events
• 6/22/202X – Begin moving into Pleasant Hill Dairy Farm office
• 7/1/202X – Pleasant Hill Dairy Farm opens its doors for business

Pleasant Hill Dairy Farm will be owned and operated by Jon and Susan Hartford. They recruited Tom Watkins to be their new Field Manager. In addition, they’ve recruited Sheila Watkins to be the Office Manager and caretaker of forms, filing and administrative tasks.

Jon Hartford and Susan Hartford were formerly employees of a large conglomerate dairy ranch company. Together, they managed fields and operations for eight years. During that time, they became convinced that dairy farms could operate more efficiently and produce better quality milk and milk products by becoming smaller and privatized, while concnetrating on organic farming methods. Together, they took certification courses at the University of Wisconsin in Organic Farming Practices and both won their certifications.

Jon and Susan Hartford recruited Tom Watkins, a former associate Field Manager, to become the Field Manager for their new business. Tom is known as an exemplary field manager, highly-knowledgeable about the livestock in the fields, and responsive to all requests and needs within his position.

Sheila Watkins was also recruited to become the Office Manager. She worked with Jon and Susan for eight years and is known for her honesty and highly-organized administrative skills.

Financial Plan

Key revenue & costs.

The revenue drivers for Pleasant Hill Dairy Farm are the fees they will charge to consumers for their products and services.

The cost drivers will be the overhead costs required in order to staff Pleasant Hill Dairy Farm. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Pleasant Hill Dairy Farm is seeking $200,000 in debt financing to launch its dairy farm. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Customers Per Month: 205
• Average Revenue per Month: $30,250
• Office Build Out Costs: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Dairy Farm Business Plan FAQs

What is a dairy farm business plan.

A dairy farm business plan is a plan to start and/or grow your dairy farm business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Dairy Farm business plan using our Dairy Farm Business Plan Template here .

What are the Main Types of Dairy Farm Businesses? 

There are a number of different kinds of dairy farm businesses , some examples include: Freestall dairy farm, Drylot dairy farm, and Pasture-based dairy farm.

How Do You Get Funding for Your Dairy Farm Business Plan?

Dairy Farm businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Dairy Farm Business?

Starting a dairy farm business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Dairy Farm Business Plan - The first step in starting a business is to create a detailed dairy farm business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your dairy farm business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your dairy farm business is in compliance with local laws.

3. Register Your Dairy Farm Business - Once you have chosen a legal structure, the next step is to register your dairy farm business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your dairy farm business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Dairy Farm Equipment & Supplies - In order to start your dairy farm business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your dairy farm business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Starting Dairy Farming Business Plan (PDF)

Starting a dairy farming business is a rewarding and sustainable venture for entrepreneurs looking to make a significant impact in the agricultural sector. As the demand for dairy products continues to grow globally, the opportunity to enter this market is ripe with potential. Dairy farming not only promises a steady supply of products that are always in demand, such as milk, but it also offers the satisfaction of contributing to food security and the agricultural economy.

Milk and its products are cardinal parts of many people’s diets. This is what makes dairy farming such a lucrative livestock farming business idea. Dairy farming is a scalable business with projectable financial outlooks. It is a somewhat technical venture which requires specialized knowledge and skills. That is not a big problem though because you can always acquire the relevant knowledge and skills.  Dairy farming involves breeding cows, milking them, and selling the milk. To build a profitable, sustainable milk dairy farming business, you require sufficient knowledge of how to efficiently keep the milk cows, good business management skills, and a good dairy farming business plan. This article will outline how to start the dairy farming project, and the dairy farming business plan – PDF, Word and Excel.

Dairy farming is a lucrative business, providing income for many farmers, but there are some essential things you need to do before you venture into the dairy milk production business. You have to decide on the size of your dairy farming project (how many dairy cattle will you keep?); location of the milk dairy farming business, and your target market. These choices will be affected by the amount of capital you have, and the size of your target market. If you do not have a lot of capital, you can always start small and grow your milk dairy farming project overtime. You also need to carry out market research (Who are you going to sell the milk to? At what price?) and write a dairy farming business plan before you start the dairy farm project.

Market Research

Before venturing into dairy farming, conducting thorough market research is crucial. This process involves understanding the demand for dairy products in your target market, analyzing the competition, and identifying potential customers. The supply chain is a critical aspect of your market research when starting a dairy farming business. It involves mapping out the entire journey of your dairy products, from farm to consumer, as well as the sourcing of feed and equipment. Identify the key players in the supply chain, such as wholesalers, distributors, retailers, and transportation providers, and understand their roles and requirements. Additionally, assess the sources from which you’ll acquire feed for your cattle and equipment for your farm operations. Analyze the logistics and infrastructure needed to ensure a smooth flow of dairy products, feed, and equipment from their respective sources to your farm and, ultimately, to the end consumers. A well-optimized supply chain is vital for ensuring product freshness, minimizing wastage, and meeting delivery timelines, all of which are essential for the success of your dairy business. Also calculate the initial investment required to start your dairy farm, including the cost of land, livestock, infrastructure, and operational expenses. Develop a detailed financial plan, projecting income and expenses over the next few years. This will help you determine if your business is financially viable.

Part of your essential market research is understanding the pricing dynamics of milk in your target market. You need to ascertain the current price range for milk products and analyze any variations based on factors like quality, packaging, and distribution channels. Furthermore, it’s crucial to identify your potential customers, their preferences, and purchasing habits. Determine how frequently they order dairy products and in what quantities. This information will not only help you set competitive pricing for your dairy products but also tailor your production and marketing strategies to meet the specific demands of your customer base, ensuring a successful entry and sustained growth in the dairy farming business.

Land for Dairy Cattle Farming Business

A substantial portion of land is need for dairy farming. This is because there are several things that must be accommodated. On average, between 1.5 and 2 acres must be available per cow and calf grazing. You also need a number of dairy farm structures for different purposes. For instance, you need dedicated areas for watering, waste management, equipment storage, milking processes, milk storage, feed storage, and maternity, amongst others. These can be self-contained in separate stalls, barns, or rooms, actual buildings. If there are dairy farm workers and they have to stay onsite, living quarters for them would be needed. Put all that together and factor in the number of cows to have a good idea of the total land size you would need for your dairy farm business.

Another consideration is the general climate of a chosen area. An ideal place would be where the climate promotes the growth of rich pastures. The land should have good water drainage. The soils should have good drainage as well. Those elements are critically important for infrastructural development on the dairy farm. The cattle dairy farm location should not be too close to public spaces e.g. residential areas. It is also important to ascertain that the land in question can be used for dairy farming business. Generally, there are procedures and regulations to be adhered to. Checking with the relevant local authorities is a must. Consider availability of quality and consistent water supply, the size of the land, quality of grass and grazing pasture and the soil type is it affects pasture quality.  Other factors include availability of already made infrastructure like good road network, milk facilities, dependable electricity, pens, sheds, buildings. Constructing buildings for a dairy farm is expensive, so it would be an advantage if some buildings are already there. 

Housing For Dairy Farm Business

To be successful in the dairy farming business, it’s important that you provide good and adequate housing for the dairy cows. Housing for dairy cows is required for several reasons: protecting the dairy cattle from adverse weather conditions, confining the milk cows when they are not grazing, and to allow easier management and control of the dairy milk herd. The best dairy design depends on the local climatic conditions, budgetary constraints and availability of bedding materials. When designing housing for the dairy milk herd, take into consideration the need to provide adequate space, feed & water facilities, milking facilities, waste management and livestock handling features.  There are many different structures which can be used for a dairy milk farm, and these include free-stall, tunnels, composite barns, dry lots, tie-stall facilities and dairy sheds. Other dairy milk cow structures include milking parlour, sick/isolation pens, calving boxes, crowding pens, sorting corrals, working chutes & gates, and squeeze gates. However the necessity of the structures depends on the size of the dairy farming business. 

The housing needs for dairy farming business are informed by the different production stages. The dairy milking herd needs to be housed in its own area. They can be housed in stalls or barns which come in different designs. For instance, if you have a small dairy herd you can set up tie stalls. Typically many dairy farmers start off with what are called bedded-pack barns. These are basically enclosed sheds where there is no flooring but just the basic earth. It is usually from this that many, over time, transition or upgrade to more sophisticated dairy farm housing. When it comes to dairy cattle heifers, the hoop barns are the most common housing. Age-wise we are looking at cows between 6 months and heifers. Dairy hoop barns have different designs. One type of hoop barns has a dome-shaped roof. Another type is like a shed, one-sided with a single slope roof. There can be variations to the dairy housing depending on the size of the heifers. More tweaks become necessary as the heifers grow in size. Dairy calves can be housed in hutches. The hutches can be placed outdoors, which is typical. However, adverse weather conditions can make it necessary to place them indoors. The best indoor environment can be barns. From weaning till they are around 6 months old, you can use simple sheds. Just as long as you can provide the pasture they need. Alternatively, you can use hoop sheds. To control and streamline their feeding you can install headlocks. This will ensure they feed orderly without tussling with each other. The dairy farm also requires good fencing, so as to contain the milk cows and manage their grazing. Dairy farm fencing can be by barbed wire, high tensile smooth wire or electric fencing. The dairy milk farm business plan should include the costs of constructing the housing.

Dairy Farm Equipment

There is a wide range of equipment needed in dairy farming business. What you will need depends on your scale or production i.e. number of dairy cows. The other factor is the level of sophistication of your dairy farming operation. At the most basic you need protective clothing such as overalls, boots, gloves, and the like. For day to operations you need equipment such as tractors, trailers, ropes, chains, and loaders. You also need feeders and drinkers – these can be items or in the form of mechanized or digitized systems.

Tags or a tagging system is needed for the dairy cows. Specialized cutters or grinders for hay (or straw) come in handy. You can also have specialized cutters or grinders for green fodder. Ventilation equipment is of importance and so is waste management equipment e.g. manure pits. Milking equipment is obviously required. You will need milk cans or tanks; depends on your capacity. Milking machines, pasteurizers, and homogenizers also come in. The cost of buying the equipment should be included in the dairy cattle farming business plan. 

Breeding Stock for Dairy Farming Business

To start a dairy milk production business, you require the dairy breeding stock: bulls (male cattle) and milking cows (female cattle). A dairy farm can also be operated without bulls, by using artificial insemination for breeding the milking cows. The cows should breed every year, as milk production only happens after the cows have given birth to calves. The decision of which dairy breed to use is important, and affects the success of your milk production business.

The breeds you choose will affect the milk production potential of your dairy farming business. Some breeds are better than others at producing good milk quality. The quantity of milk produced also varies depending on the breed of the milk cow. Other characteristics which vary among breeds include breeding age, productive lifespan, adaptation to different environmental conditions & climates, calving ease, feed conversion, diseases resistance, and average birth weight. When choosing breeding stock it is usually wise to look for purebreds. Purebreds normally have detailed information available on their breeding and ancestry history. Some of the most common breeds used in the dairy farming business are Holstein, Red and White, Jersey, Brown Swiss, Guernsey, Ayrshire, Milking Shorthorn. Other noteworthy breeds are Kerry, Dutch Belted, Dexter, and Milking Devon. The dairy farm business plan should include the costs of acquiring the dairy cattle breeding stock.

Feed And Nutrition

Feeds for dairy cattle come in two broad forms namely concentrates and forages. There are also dairy supplementary feeding options that can be considered. Concentrates (usually grain-based) are important because of their high energy and protein content. Forages are essential for the dairy cows as they are good sources of fiber and are typically legume or grass-based. Supplementary feeding of dairy cattle fills gaps that can be there nutrition-wise. For example, molasses is calcium-rich, amongst other essential nutrients. There are 3 common feeding approaches that are used. These are feeding using total mixed ratios, component feeding, and using pastures. Total mixed ratios entail proportionately mixed all-in-one meals. Component feeding as the name suggests involves feeding component by component e.g. forages, concentrates, and so on. Using pastures is by the commonly known paddocking system.

The success of your dairy milk production business is affected by the feeding system that you use. The feeding program of the dairy farming business should ensure that adequate nutrition is provided to both the cows and calves at all growth stages and during all seasons. This should be done while keeping an eye on the feed costs, as they greatly affect profitability of the dairy milk farming business. Dairy cattle need a daily supply of all nutrients required for maintenance and production: milk, meat, growth and pregnancy. Failure to provide adequate feeding for the milk cows and calves results in low milk production, poor reproductive performance, poor growth of the calves and poor disease resistance. These factors all lead to reduced revenues for the dairy milk production business, thus lower profits. The common feeding programs of dairy farming business are usually based on pasture grazing, in combination with supplementary feed. The supplementary feed for dairy cows include concentrates, hay, corn, fodder, salts & minerals, silage, commercial dairy cow feeds and grains. The feed costs should be included in the dairy farming business plan.

Health & Disease Management

Ensuring the health and well-being of your dairy herd is paramount to the success of your dairy farming business. A comprehensive health and disease management program is essential to maintain the productivity of your cattle and the quality of your dairy products. Regular health checks, observation of behavior, and adherence to recommended vaccination schedules are critical components of routine health monitoring. A comprehensive disease prevention and control strategy is vital. This includes implementing quarantine procedures for new animals entering your farm and biosecurity measures to minimize the risk of disease transmission. Preparedness for disease outbreaks, including isolating and treating sick cattle promptly, is crucial to prevent the spread of illness within the herd.

Proper nutrition, sanitation, and hygiene play a pivotal role in preventing diseases and maintaining herd health. A balanced diet tailored to the specific nutritional needs of your cattle, along with clean living conditions and access to clean water, are vital. In addition, establishing a strong partnership with a qualified veterinarian, maintaining meticulous records, and providing proper training to farm staff are essential for effective health and disease management. Effective record-keeping is another cornerstone of health and disease management. Maintaining detailed records of your herd’s health history, including vaccinations, treatments, and observed health issues, allows you to track trends, make informed decisions, and continuously improve your health management practices. Prioritizing these measures not only safeguards the welfare of your cattle but also contributes to the production of high-quality dairy products, ultimately ensuring the success and sustainability of your dairy farming business.

Dairy Farming Business Model

In the dairy farming business model, your primary assets are your bulls and milk cows, which are carefully managed to ensure a sustainable source of income. The process begins with the mating of these cattle, either through natural reproduction or artificial insemination, to produce calves. Once the milk cows give birth, they commence milk production, which becomes a core revenue stream for your operation. The milk produced can be sold to various markets and consumers, contributing significantly to your income.

In addition to milk production, the management of the calves born is crucial. Some of these calves can be raised to replace the breeding cattle in your herd, ensuring the continuity of your dairy operation. Others can be sold at birth, providing an additional source of revenue. To maintain the health and productivity of your herd, you’ll also need to cull some breeding cows over time due to factors like old age or poor milk production, and these cows can be sold as well. While the business incurs expenses, particularly in feed costs, the revenue generated from selling milk, calves, and culled cattle far exceeds these input costs and operating expenses, resulting in a healthy profit. This cyclical and sustainable approach ensures a continuous source of income for your dairy farming business, making it a viable and lucrative venture.

Capital for Dairy Farming Business

The amount of capital required for the milk dairy farming business depends on the size of the project. When starting a dairy milk production business, most of the capital goes to acquiring the land, building infrastructure, and buying the dairy cows & bulls. You can get a loan from the bank, or funding from investors, to use as capital to start your dairy farming business. If you plan to raise capital from investors and a loan from the bank, you need a good dairy farming business plan. If you don’t have access to investors and bank loan, you can use your personal savings and start small, and grow your dairy farming business overtime. Dairy cattle farming is very profitable, so if you reinvest the profits you get, you can grow over time. Even if you are not planning to get a loan, you should still get a dairy farming project plan to guide you in starting and operating the business. It is essential for you to have a dairy farming business plan before you venture into the dairy milk production business, so that you know all the costs involved and you make an informed decision.

Market for Dairy Milk

Milk is often regarded as being nature’s most complete food because it provides many of the nutrients which are essential for the growth of the human body. Being an excellent source of protein and having an abundance of vitamins and minerals, particularly calcium, milk can make a positive contribution to the health of a nation.

The market for milk is very huge and is ever increasing, annual milk global demand exceeds 800 million tonnes. Your dairy farming business can sell raw or processed milk. The market for dairy milk includes supplying to milk processors, grocery stores, schools, companies, individual households, organisations etc. It’s important for the dairy farming business plan to include a proper marketing plan to use in your milk dairy farming business.

Keys to Profitability in Dairy Farming

Achieving profitability in the dairy farming business is a multifaceted endeavor that demands a strategic approach and a deep understanding of industry dynamics. Several crucial keys can unlock the path to profitability and financial sustainability. First and foremost, efficient herd management is essential. Selecting cattle with high-quality genetics, implementing effective breeding programs, and maintaining proper nutrition can enhance milk production while reducing operational costs. Regular health checks and disease prevention strategies are equally vital to minimize veterinary expenses and maintain overall herd health.

Optimizing feed and nutrition is another pivotal factor. Balancing your cattle’s diet with the right feed and nutrition can maximize milk production and minimize feed costs. Regular assessments of feed quality and collaboration with nutritionists can ensure that your dairy cattle receive the necessary nutrients for optimal health and productivity. Sustainable farming practices are increasingly important, not only for environmental reasons but also for cost reduction. Responsible waste management, efficient water usage, and energy-efficient facilities can lower operational expenses and appeal to eco-conscious consumers.

Controlling costs and streamlining efficiency are critical for profitability. Regularly reviewing expenses and identifying areas for cost-cutting without compromising animal welfare can have a substantial impact on your bottom line. Diversifying income streams beyond milk sales can mitigate risks associated with market fluctuations. Exploring opportunities such as selling surplus calves or producing value-added dairy products can help stabilize revenue. Effective marketing and branding, supported by a strong brand identity and customer engagement, can set your dairy farm apart in the competitive market and even command premium prices for your products.

Advantages of Dairy Farming Business

Launching a dairy farming venture comes with a host of distinct advantages that make it an appealing agricultural pursuit. Central to these benefits is the stable and unwavering demand for dairy products. Staples like milk, cheese, yogurt, and butter maintain a consistent presence in households worldwide, ensuring a dependable source of income for dairy farmers. This steady demand provides a reliable source of income, reducing the uncertainty that can be associated with other agricultural ventures. Furthermore, the potential for high returns on investment adds to the allure of dairy farming. With proper care and management, dairy cattle can produce milk for several years, providing an ongoing revenue stream. Additionally, the production of value-added dairy products, such as cheese and yogurt, can command premium prices in the market, further enhancing profitability. Dairy farming also offers diversification opportunities, allowing farmers to explore various income streams beyond milk sales. These can include selling surplus calves, producing dairy-based products, or even engaging in agritourism activities on the farm. Such diversification not only strengthens financial stability but also reduces risk, contributing to the sustainability of the business. A well-maintained dairy herd can provide long-term potential for your business. Cows can produce milk for several lactation cycles, and if managed properly, they can remain productive for years. This longevity offers stability and the opportunity to build a sustainable, generational farming legacy.

Why You Need A Dairy Farming Business Plan

A business plan is an essential tool for financial planning and management. It helps you estimate the initial capital required to start your dairy farm, including expenses for land, cattle, infrastructure, and operational costs. With a well-defined financial plan, you can budget more effectively. A dairy farm business plan is instrumental in helping you gain a comprehensive understanding of the profitability of your dairy farming business and the myriad factors that influence it. It serves as a financial compass, allowing you to assess the potential income and expenses associated with your operation, thereby providing a clear view of your farm’s profitability. Factors such as the cost of feed, veterinary care, labor, milk prices, and market demand all play pivotal roles in determining the bottom line. With this insight, you can make informed decisions to optimize profitability by identifying cost-saving opportunities, diversifying income streams, and implementing strategies to mitigate risks, ensuring the long-term financial success of your dairy farming venture. A well-crafted business plan also serves as a powerful tool for securing funding. When seeking financial support from investors, lenders, or potential partners, a comprehensive business plan demonstrates your commitment, professionalism, and a clear strategy for success. A robust business plan not only showcases your dedication but also provides prospective funders with the information they need to evaluate the viability and potential return on investment of your dairy farming business, making it a crucial asset in securing the necessary capital for your agricultural endeavor.

Pre-Written Dairy Farming Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the dairy farming business, we encourage you to purchase our well-researched and comprehensive dairy farming business plan. We introduced the business plans after discovering that many were venturing into the dairy cattle production business without enough knowledge and understanding of how to run the dairy milk production business, how to keep the dairy cows, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global dairy business plan will make it easier for you to launch and run your dairy cattle farming business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the milk cows farming business.

Uses of the Dairy Farming Business Plan (PDF, Word And Excel)

The milk cows farm business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your milk cows farming business
• As a dairy farming business proposal
• Assessing profitability of the dairy milk production business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Dairy Business Plan (PDF, Word And Excel)

The dairy farming business plan include, but not limited to:

• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Risk Analysis
• Industry Analysis
• Market Analysis
• SWOT & PEST Analysis
• Operational Requirements (Including technical aspects of how to keep the dairy cattle, feed requirements etc)
• Operational Strategy
• Why some people in dairy farming business fail, so that you can avoid their mistakes
• Ways to raise capital to start your dairy milk farm business

The Pre-written dairy farm business plan package consists of 4 files

• Dairy Farming Business Plan – PDF file (Comprehensive Version – 124 Pages)
• Dairy Cows Farm Business Plan – Editable Word File (Comprehensive Version – 124 Pages)
• Dairy Cattle Farming Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 52 pages)
• Dairy Farming Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the number of dairy cattle, selling price of the milk etc, and all the other financial statements will automatically adjust to reflect the change.

Click below to download the Contents Page of the Dairy Farming Business Plan (PDF)

Testimonial 4

The business plan which I purchased from your website saved me TIME and MONEY! The layout of the business plan was excellent. The financial statements were detailed and easy for me to edit. I will come back to purchase another business plan soon.

Testimonial 5

I was able to understand the business side of farming because of your business plan. You did extensive research; the business plan was well prepared and fully detailed.  It made everything clear, and I have somewhere to start now. I am confident that I am going to succeed in my business because of the guidance from your business plan.

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I purchased a business plan from you, and I’m glad to inform you that I was able to get my loan, and I’m starting my poultry farming business on the 1 st of July. This was made possible because of your business plan. Thank you very much, you made my dream come true.

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Testimonial 1

StartupBiz Global provided a very professional and comprehensive business plan which I used for my business. The business plan was easy to edit, and I was able to get the funding which I wanted. I highly recommend their business plans.

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Get the Dairy Farming Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your dairy farming business! Check out our collection of business plans  , and more business ideas .

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Dairy Farming Business Plan Guide

Table of contents, for frequently asked dairy farm questions: read here., for green fodder production: read here., for silage making process: read here., dairy farming business plan guide:.

Dairy Farming Business Plan – Introduction to Dairy Farming:- No matter what the season is and no matter what the place is “There is always a great demand for milk” in India. Due to the population increase and consumption of milk tremendously increasing day by day. The rising unemployment and people who are looking for starting a dairy farm in recent years are almost doubled. Milk production in India is expected to grow at about 3 to 4% every year. There are many people who want to get into the small-scale or large-scale dairy farming business. However, due to lack of knowledge and initial investment involved they are unable to set up a dairy unit. We advise you not to get into this dairy business unless you dedicate your effort and time on your farm round the clock. You are not necessarily starting a dairy farm on a commercial scale; you can start on a small-scale business and expand it to a large scale once you are aware of ins and outs of dairy farming.

Before starting a dairy farm, makes sure to follow these:

• Dairy Farming Business Plan #1- However as a beginner, you should definitely get some professional training from Agriculture Universities or Training centers of the Animal Husbandry Department or Krishi Vigyan Kendras or any private training dairy consultancies.
• Dairy Farming Business Plan #2 – Visit local dairy farms and talk to the management so you can get an idea of managing the farm. Always question them about “problems” and ask how they are overcoming them.
• Dairy Farming Business Plan #3 – Read any dairy magazines, online dairy blogs, and YouTube videos to get an overall idea of farming.
• Dairy Farming Business Plan #4 – If you don’t have capital investment and want to get a subsidy and loan the dairy farm, visit your local agriculture/co-operative banks for more information.
• Dairy Farming Business Plan #5 – As feed or fodder is the main component of dairy farming that directly impacts the profits; you must have good knowledge of green fodder cultivation practices and silage-making procedures. You can study the feed and fodder market in your region to find out the feasible and economical fodder solution.
• Dairy Farming Business Plan #6 – Initially, you must visit some cattle markets to observe animals on sale and talk with persons engaged with purchasing animals to get an idea of the best breed, animal prices, and milk yield of animals. You can also learn some negotiation skills.
• Dairy Farming Business Plan #7 – You should learn good labour management skills.

To encourage the rural agriculture sector and increase the milk production as per demand, NABARD (National Bank For Agriculture & Rural Development) helping farmers by providing subsidies on dairy farms and dairy farming loans through approved banks. One can avail of this by visiting your nearest commercial or co-operative or rural agriculture banks. One can get decent profits in dairy farming under good dairy management practices. In the following write-up, let us talk about the “Dairy Farming Business Plan” in detail. Let us take an example of 15 dairy cow farming.

Dairy Farming Business Plan – Requirements of Dairy Farming in India:- There are some components of dairy farming you should be aware of before setting up a dairy farm.

• Land – You must have some cultivated land for growing green fodder crops for your cattle on the farm. The land area depends on the number of animals (cows or buffalo’s). Usually, 2 acres of land is sufficient to feed about 15 cows.
• Shed – There must be a proper and covered secured shed in place before getting cows into your farm.
• Water – Clean and abundant water facility is required for both cattle and to grow the green fodder.
• Fodder – As cows need three types of fodder for best milk yield and high-fat content, you must have good fodder management from growing fodder to feeding fodder on daily basis. Dry fodder, green fodder, and feed concentrate (for extra nutrition) are required to feed the cows in your dairy.
• Breed Selection – Selection of a good breed of cows that yield more milk is essential in dairy farming. Good milk yielding cows such as “Jersy”, “Red Sindhi” “Holstein Friesian (HF cows)”, “Sahiwal”, “Gir”, “Deoni” and “Ongole” etc.
• Labour – Labour is a major task in dairy farming, the selected labour should be very good at handling the farm activities including growing green fodder. It is better to give one or two days of training so that they can understand the routine activities of dairy.
• Vaccinations – To control diseases and protect cow health, you must have a proper vaccination schedule. For this purpose, you can hire a veterinary doctor for routine checkups and medication of cows. For the vaccination schedule, see the vaccination schedule table at the bottom of this article.

Dairy Farming Business Plan – Shed Construction:- Well ventilated and the spacious shed is required for dairy farming. Hygienic conditions are very important in the shed for cattle health. When it comes to space, it is recommended to have 8 feet x 12 feet area for 1 cow. So total space required for 15 cows is about 120 feet x 12 feet. However, this area is not fixed and depends on cow size. Cow feeders should be constructed in between with a separation wall so that the cows can be fed from both sides facing head to head each other; this is what is called a “Head to Head arrangement”.

Care should be taken while constructing the dairy shed. The selected location should be elevated to prevent any water stagnation around the shed and it also provides well ventilation (sunlight and air). The dairy shed roof should be made with asbestos sheets and the floor should be made of either bricks or cement with enough inclination. This can provide good drainage for cattle urine and excrete. The shed should be cleaned daily to maintain hygienic conditions. Collect the manure on daily basis and store it somewhere outside of the shed. You can also make an outlet to the shed so that whenever the shed is cleaned the cow urine any leftover manure can flow into the field. All electrical fittings and water supply requirements should be fully filled as per need in hot areas, it may need to have fans and coolers for cows, especially in summer.

Dairy Farming Business Plan – Fodder Management:- Fodder management is very important in dairy farming. The daily milk yield of a cow depends on the type of fodder and the nutritional facts of the given fodder. High-yielding cows should be given 1 kg of concentrate along with mineral mixture to get 2.5 liters of milk yield. For example, if a cow yields 15 liters of milk daily then these cows should be given 6 kg of concentrate with a mineral mixture.

There are three types of fodder that can be provided under dairy fodder management practices.

• Dry fodder: wheat hay, kutti (rice / pady straw), chokar (wheat bran),
• Green fodder: Any leguminous crops which are good in protein supplements. For example Any gram crop, barseem, maize/corn, masoor, and hybrid grass-like CO-3 and CO-4, niper grass etc.. These green fodder crops can be utilized to make silage. This silage is very nutritious and milk yield will be increased. Silage making is very important and especially it is needed in dry periods. The link will be given at the bottom of the article about “steps in involved in silage making or how to make silage for cattle”. Generally, 2 to 3 acres of fertile land enough to grow green fodders for 15 cows. However, the yield of green fodder depends on many factors.
• Concentrate and Mineral Mixture: Mineral mixture:- It is necessary to provide concentrate feed along with a mineral mixer on regular basis to prevent cows from mineral deficiency. All three types such as dry green and mineral mixture should be accurate proportions for best milk yield.

Note: The cost of feed may depend on the animal milk capacity. On average, the feed may cost about 200 to 250 rupees/day/cow.

Dairy Farming Business Plan – Water Supply:- Clean water supply is required for drinking and cleaning purposes of the shed. Arrangements can be done by providing overhead tanks on the shed.

Dairy Farming Business Plan – Selection of Dairy Breeds:- Successful dairy farming requires a good breed selection of cows. Select the dairy cow/cattle breed that is suitable for your climatic conditions and high milking capacity. You can visit your local farms and can observe the different breed types that are suitable. A crossbreed of HF cows (Holstein Frisian) with Indian Sahiwal. Or Jersey with Sahiwal or Jersey with Red Sindhi is preferable for the good milk yield. It is preferred to select the breed which produces milk of 20 to 25 liters/day. Artificial insemination plays a major role to cross with high-yielding breeds.

Dairy Farming Business Plan – Cow and Calves Management and Care:- Artificial insemination or mating of cows should be carried out after every 3 months (90 days) of calving. Indian cattle breeds take 3 years in reaching the maturity phase whereas high yield  Jersey crossbreed or HF cows reach maturity at 16 to 18 months and they will be ready for mating. In general, for every 13 months, cows should be calving. The lactation period of cows should be 300 days and the service period should be 90-120 days. The gestation period of cows is going to be 266 days. More attention and care are needed in the case of pregnant cows as they need more nutrition during this stage. Concentrate & mineral mixture should be given during the gestation period of cows and this feed intake should be increased as time passes to ensure proper growth of calves and their udder.

Dairy Farming Business Plan – Vaccination Program in Dairy Cow Farming:- Before giving any vaccination in dairy, deworming should be done to get better results. However, deworming should be carried out frequently and the veterinary doctor is your point of contact for this. The following table is the typical vaccination schedule in dairy farming.

Dairy Farming Business Plan – Vaccination Schedule in Dairy Farming:

Dairy Farming Business Plan – Bottom Line:- The above write-up can be assumed for Dairy Farming Business Plan in Tamil Nadu, Karnataka, Kerala, Telangana, Andhra Pradesh, Gujarat, Rajasthan, Punjab, Haryana, West Bengal, Madhya Pradesh, Uttar Pradesh, Bihar, Maharashtra, and other states of India. However, the labour cost, Cow breeds, feed cost, or green fodder production cost and inputs may slightly vary from region to region. You can expect excellent profits with proper dairy management practices, perfect planning, and dedication completely to the farm 24/7.

In case if you are interested in this: Quail Farming Business Plan .

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54 COMMENTS

Hello, my name is Anuj purwar, I am a student. And want to start organic farming with two members team MAYANK SHINHA and rishab pandey. We planned for a loan by the bank and use hydraulic solar panels energy for electricity which help us in earning money because of this electricity were given to our nearly farmers who use petrol, diesel water pump by which we decrease less use of pratrol. We are 17-19 year old and planed for this. We need your support to prove ourselves and promote the organic forming and start online sale of our crops from us to customers directly.

I am not sure about your question. You say solar and talk about Organic.

Read here about : Organic Farming .

Selling electricity to anyone except the government is prohibited in india. Please make sure you are not breaking any law.

GUPTA DAIRY FARM KARNAL Supplying Pure Breed and vaccinated Murrah Buffalo, Sahiwal Breed Cattle, Jersey Cow, Dairy Cow, Cow Heifer, Buffalo Heifer, Australian Cow, American Cow, and other types of Cows and Buffaloes…

We don’t sell any livestock or agriculture produce.

we don’t call or have personal support. You can post comments and get reply.

Respected Concerned person/ / Can you deliver the cows and buffalos throughout india?

Dear sir, I want to open new dairy farm in Jhabua (MadhyaPradesh). I have required 10 Buffalo with good quality and can give 10-15 litre milk per day. please send me the details about buffalo , price, purchasing locations , transportation etc.

regards dinesh bhayal

We don’t sell any cattle/buffaloes.

You must be an adult for eligibility of the loan for dairy farming.

hi i want to set up dairy farm, kindly suggest me the details in pdf, want to do at odisha. if u have, [email protected]

Soon we will introduce farming or agriculture pdf’s to download.

Hello, Can any one suggest the process of dairy loan. I will start dairy farming immediately.

For Dairy farming subsidy and loan, read this: Dairy Farming Subsidy .

You mean for dairy shed construction and design?

Above article is really helping. I have around 7 Bigha land in Kotdwar-Uttarakhand and looking to get in to dairy farm business, Can I expect a professional help from you ? like in Planning the dairy farm, loans and subsidy, good milk yielding cows and buffalo.

Glad the information is helping at least some people. We don’t have personal consulting support at this point in time. However, you talk to NABARD branch in your city for qualified agriculture/farming loans.

Hai, my name is Mohith and I from Telagana state, I want to start Cow farm. Please guide me.

Well, Mohith Dairy farming needs investment, patience and hard work along with dedication. You can not trust the third person in this business as feed management and care is utmost priorities of dairy cow farming. From, NABARD you can get a subsidy and loan for setting up a dairy cow farm. Here is some information which may be helpful: Dairy Farming Subsidy .

Dairy Cow Farming Project Report t .

Sir, I am from Odisha. I am interested to start a Dairy Farming In Odisha where can I get assistance? and necessary help. Please advise.

NABARD is your point of contact for any livestock subsidy. You can read >DAIRY FARMING SUBSIDY .

Hi, I am Prashant Deshmukh. I really interested to start a new Dairy farm business in Maharashtra. How to start, please guide me.

Well, to start a dairy farm, you must have proper planning, dedication. It requires your hard work. First, decide which dairy breed, you would like to go for. Feed management is very important in dairy farming. Make sure you have enough laborers to handle the farm. Our advice is to start with less number of cows and start increasing as you get more experience. Apart from this marketing is another factor for your dairy products. Here is some information which may help you. Read: DAIRY COW FARMING PROJECT REPORT .

Hello Sir, I am Rohidas Sapke and looking to start my own dairy farm business. Can you advise me is there any private institute who gives training on How to handle dairy farms/animal care/business related things and all?

Very soon, we will update training and consulting services addresses.

I am exploring possibility of dairy farming near Raipur in Uttarakhand.The subject is new to me as I am not a professional from this field.I would like to see a viable business plan,if you have one,for a midsized investment. Regards

It is really a resourceful information on every aspect. Thank you Can you please write on financial breakups, for shed, cows , fodder cost etc all occurring expenses. just as a template it will give an idea for us on financial planning.

Check these:

Dairy Farming FAQ .

How To Get NABARD Subsidy and Loan .

Dairy Shed Design and Construction .

Dairy Cow Farming Project Report .

Sir, I am 37 yrs old from Barshi, in Solapur district. We have some farm land and wish to start a dairy business from scratch. How can I start?

Read this: Dairy Farming FAQ .

Dear Sir, I really appreciate the guideline for my knowledge I am an MBA qualified. I hate jobs, I love business have a full plan to start a dairy farm business I have 5 acre land in one place 4 acre land in other areas which are in a part. Anyhow, I made a contact in our area and there is no a single dairy farm. This would be a great opportunity for me. But need knowledge of this business.

Umar Saood from pakistan currently working in UAE

Dairy farming is not simple as you think. However, with proper planning, dedication and hard work defiantly will pay you off. You cannot depend and trust third person.

To have complete idea. You better read all the dairy farming articles.

Read: Dairy Farming Information .

I am Mahesh and I want to know whether Coorg, Karnataka is best suited for HF breed cows, since we have 2 to 3 acres of land is coorg but due to heavy rain during June to October, we are still worried whether we can go-ahead for dairy farming with HF breeds. Your guidance and suggestions will help us further.

Hi I am a pure science graduate and I have interest in polyhouse and hydroponic agriculture. I want to start cultivation of vegetables in a small area like 1000 sq.m for commercial purposes..n establish my career on it. I like to spread it through out my state working as a professional consultant too. For this, I need proper training and guide and financial resources. Now plz help me to know all about high tech poly house, hydroponics that can help me to build my financial path as a grower and as a consultant too. Plese, help me show me the way. Thank u.

Dear sir new dairy farming business open in my village Bila gujarat so plz help me loan and ideas 7778014786 my WhatsApp number

hello sir, i am 20 yrs old and i want to open dairy farm. can you tell me about problems we face in this field.

Hello Mr. Reddy, Thanks for your effort to put this content in internet, it is very much informative. I am very much interested to start a dairy farm, but need proper guidance to set up this. I’m gathering information from youtube channels and some blogs like your. I may contact you to get some information.

Thanks Sahoo

very useful information sir Thank you

Hello sir, Iam r kanaka raj Ex-Servicemen Army I live from andaman and nicobar Islands. I want to open dairy farm. Can you tell me about problems we face in this field.

Please suggest the training institutes for dairy farming short courses.

Regards Mahesh

Subject: New Dairy Farm

This is Harish (farmer) from Telangana state, I’m really interested to start to start new dairy farm in my village I am having 5 acres land, Hence pls could you advice that from where to get the good livestock’s and what is the cost per cow. Pls could you share with me the shed diagram how to build for at least 10-12 cows.

Kind regards: Harish

Hi, Can you explain this business in financial terms….like cost of animals…on average how much they can produce milk….cost of milk….animal maintenance cost etc…if you can provide a table then it will be very useful

Dear sir I have plan to start up a dairy farm but I don’t have any idea I need some guid line to start up I need some ideas can u tell how can help me on this can u help me on this

My name is Obeng Kingsley an M. PHIL student at University of Ghana pursuing Agricultural science. I am currently rearing sheep but facing challenges in the housing system. I need advise on housing management system. thanks

Dear sir, I want to open new dairy farm in CUMBUM (Andhra Pradesh). I have required 10 Buffalo with good quality and can give 20-30 litre milk per day. please send me the details about buffalo , price, purchasing locations , transportation etc. is it supporting goverment like subsidy and any extra allowance.let me know sir,i donot have any idea.ping me your phone number sir.i need to talk to you..ok sir.

regards, SUDHARSHANREDDY.J

Hi, Do you have any worksheet to make business plan? I need to calculate EBITDA for my Dairy Venture.

Thanks in advance.

thanks so much for such relevant information that will guide us in our development in business.

hi, I want to set up a dairy farm, kindly suggest to me the details in pdf, want to do it at Haveri.

can you please inform me about loans from centre govt subsidy and financial loans ?

i want starting small scale from kerala . please suggest to me rules and regulations

can you suggest names high feeding cows ?

I want to start Cow farming. How much amount will be required for 15 number Cow farming inclusive of Construction, feeder, medical treatment and labour cost etc.

How much monthly income i get with 15 cows?

Hi everyone I am planing for Dairy farming.can any one tell about the cost and land requirements & government rules

nice information

The information about diary farming are very nice. I am very interested to farm which my own please help me regarding this business.

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How to Start A Successful Farmstead Micro-Creamery

In our community of homesteaders, some people raise milking animals for their personal use, and others make an income by starting a micro-creamery out of their homestead.

We’re fortunate because we have a great, third-generation micro-creamery and meat farm nearby, so we can enjoy homemade dairy goods.

Having an established dairy to reach out to can make starting your own much easier. But many people aren’t that fortunate. If you’re hoping to start a micro-creamery, consider this your friendly, neighborhood advice for getting started. 

Table of Contents

What is a micro-creamery.

A micro-creamery or micro-dairy is a small-scale dairy business. Mirco-creameries can produce milk, cream, butter, cheese, yogurt, or other dairy products. Sometimes, they produce unique products like kefir, creamy popsicles, milk soaps, or ice cream.

Whatever the products, dairy items sold at a micro-creamery are produced from the milk of animals kept by the dairy owners so they are locally raised. They’re often offered sustainable, grass-fed, or organic food. 

At a micro-creamery, the dairy herd is kept small and manageable. Micro-creameries are small-scale family farms. Herd size maxes out at ten animals or so. Sometimes, micro-creameries have only a few animals.

The product amount is limited by the size of the dairy and is usually sold either on-site or at a local farm stand or farmer’s market. 

Because everything is so small, buying from a micro-creamery gives you a chance to get to know your local farmer. You know how the animals are raised and the products are made, and you can see the production from beginning to end.

Plus, you get to know the people making your products. Regular customers often spend time talking about their lives, diets, beliefs, and goals. Picking up dairy becomes less of an errand and more of a social opportunity. 

Whether you’re raising cows, goats, sheep, or any other dairy animal, keeping a micro-creamery could be a great way to produce a little extra income, build community, and offer quality food to your neighbors. 

How Much Can You Earn From A Micro-Creamery?

If you’re looking for a way to help support your homesteading lifestyle, a micro-creamery can help a lot. Depending on your location, a gallon of fresh, raw milk can sell for anywhere from $5-12.

If you’re also offering yogurts, cheeses, butter, and cream, your creamery has a few options to offer at a slightly higher price point. 

Offering yogurts, butter, cheeses, or sour creams for sale is also a great way to extend the shelf life of your products. If you’re selling fresh milk, and it isn’t selling quickly enough, you can make products that freeze well or have a longer shelf life. 

Many micro-creameries can make $4,000-10,000 each year. If you’re running the dairy to pay for feed and animal expenses, that extra $4,000 can make homesteading much more accessible to afford. 

What Do I Need to Get Started?

The first thing you need to get started with a micro-creamery is a plan. Start by determining the laws, codes, and licensing you need to sell dairy products in your state.

Right now, about two-thirds of states in the US allow the sale of raw milk. If you’re in one of those states, you’ll need to understand how, where, and to whom you can sell. If your state forbids the sale of raw dairy, you’ll need to understand the pasteurization process. 

A great way to fully understand the laws in your area is to meet with your local USDA office. Come up with a list of questions you can ask before your appointment, and expect to have a long conversation with a lot of data. 

Questions to Ask At the USDA or Farm Bureau:

If you don’t know the dairy laws of your state, start by asking about those.

Can I sell raw dairy? Can I sell homemade food products? Where can I sell them? Can I use a CSA to sell pasteurized or raw dairy? What types of dairy products can I sell at my farm? Why types can I sell at a farmer’s market? Can I sell at local stores? Then, consider other questions about distribution. What sort of containers can I use to hold my dairy products? Do they need to be glass? What sort of labeling is required? What information is essential on my labeling? Can I reuse containers?

Licensing is also an important subject to ask about. Each state, and often even different counties within each state, will have different licensing requirements. Make sure you understand them.

Probe further if the answers seem vague or confusing. Your farm bureau agent is there to help you. As frustrating as it feels to have to run your business plan by a government agent, that agent is there to give you the information you need to succeed. 

Understanding these requirements now will save you years of frustration later. Running an unlicensed dairy could ruin your chances of running a successful micro-creamery in the future. 

Clean Equipment and Housing

Often, homesteaders raise goats or cows casually for years before branching out into a micro-creamery business. When they decide to go into business, often old equipment has to be improved, sinks and milk storage have to be upgraded.

Depending on your region, a variety of changes might have to happen so the production setup is ready for inspection. 

A licensed dairy, no matter how small, will be inspected regularly. Inspections should be easy as long as you know what the inspectors will be looking for by understanding the local requirements.

Inspectors want to ensure your animals are well cared for, healthy, and clean. They also need to make sure that your milk storage area is clean, your storage containers are sterile, and that your milk processing conforms to state requirements. 

Quality, clean equipment is one of the most important investments you’ll make as a micro-creamery, so research well and invest in quality basics. Don’t get tempted by quick-fix, additional equipment that you won’t use or that is difficult to clean. 

Choosing A Dairy Animal

If you don’t have a family cow or goat but want to start a creamery, now is the time to look into all the varieties of dairy animals. Most micro-dairies in the US tend to focus on either cows or goats . But you can also raise sheep for milk .

Specialty dairies can be quite popular. Some people raise both cows and goats, to have two types of milk for sale. Others seek out unique animals to attract attention or offer something special at the market.

While cows and goats are the most popular options, sheep, camels, water buffalo, or yaks can make fascinating dairy animals. A micro-creamery specializing in camel milk probably won’t have as many customers as one specializing in cow’s milk, but it will probably have more devoted customers. 

The most important aspect is choosing an animal you enjoy working with. If you’re uncomfortable handling camels, you won’t enjoy raising them. If cows bore you, you’ll quickly lose passion for your new business.

Choose an animal you want to raise and build a market for that animal instead of finding a market and choosing an animal based on anticipated profit. 

If, however, you’re already raising cows, and want to transition to camels, move slowly. It’s ok to start a cow’s milk micro-dairy with the herd you have and gradually transition to the more exotic animals. Just be careful to warn your customers in advance!

Financing Your Micro-Creamery

Even if you’ve been raising dairy animals for years, stepping into business with them can be expensive. New equipment costs money. If you need to upgrade your herd or barns, that will cost even more. If you’re building your business from the ground up, there are land, animal, feed, and other expenses. 

Containers, labels, licensing fees, farmers’ market fees, and any marketing you do can also be costly. Look closely at your projected expenses and make a business plan. If you don’t have the capital to get started, don’t worry.

There are a few lending institutions that do make loans for micro-creameries. Make a few appointments with trusted banks and credit unions to see if they offer small business loans like this. If not, there are other options. In the United States, there are a few agricultural institutions that offer financial help to small-scale farm start-ups. Check out the USDA’s Farm Service Agency , Rural Development , and the Natural Resources Conservation Service for financial help. 

Also, consider visiting your local agricultural fair and walking around to the information booths. There are usually a few state-specific organizations that can help point you in the right direction.

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Dairy Farm Business Plan Template [Updated 2024]

Dairy Farm Business Plan Template

If you want to start a Dairy Farm or expand your current Dairy Farm, you need a business plan.

The following Dairy Farm business plan template gives you the key elements to include in a winning Dairy Farm business plan.

You can download our business plan template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of your Dairy Farm business plan: I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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Dairy Farm Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

The Ultimate Guide to Setting Up Your Own Mini Dairy Plant

• Mini Dairy Plant

Overview of Mini Dairy Plants

Mini dairy plants are small-scale facilities where milk is processed into various dairy products. These plants are designed for local or regional markets, and they can range in size from small setups to larger operations. In a mini dairy plant, milk is typically pasteurized, homogenized, and then processed into products like milk, yogurt, cheese, and butter. The setup of these plants can vary based on the desired products and production capacity, making them versatile for different needs.

MilK Pasteurization Plant with Homogenizer and Separator

Tanks for the Storage of Milk Inside the Plant

Cold Storage for Milk Storage

Ice Bank tank IBT- For Chilled Water Generation

Khoa vat for the milk boiling , sweet preparation, milk packaging machine.

Boiler for Hot Water Generation

Benefits of Setting Up a Mini Dairy Plant

Setting up a mini dairy plant has numerous benefits. By having your own dairy plant, you have control over the entire production process, ensuring the quality and freshness of your dairy products. You can also customize your products to meet the preferences of your customers, giving you a competitive edge in the market. Additionally, setting up a mini dairy plant allows you to create a sustainable source of income while contributing to the local economy by providing employment opportunities.

Planning Your Mini Dairy Plant

To start planning your mini dairy plant, first, decide on the scale of your operation. Consider factors like the space you have available and the amount of milk you want to process . Next, think about the equipment you will need, such as milking machines, refrigeration units, and pasteurization equipment . It’s crucial to also consider regulatory requirements and obtain any necessary permits. Lastly, create a business plan outlining your goals, target market, and financial projections. This initial planning phase is crucial for the success of your mini dairy plant.

Choosing Dairy Equipment and Machinery

Selecting the right dairy equipment and machinery is crucial for setting up your mini dairy plant. Consider the following points before making your decision:

• Evaluate the production capacity you need to determine the appropriate size and capabilities of the equipment.
• Research different types of machinery available in the market to find options that suit your specific requirements and budget.
• Ensure that the equipment is easy to operate and maintain to streamline your production process.
• Look for quality and durability in the machinery to guarantee a long-lasting investment for your dairy plant.

Understanding Dairy Processing

Dairy processing involves turning raw milk into products like butter, yogurt, and cheese. This process involves pasteurization to kill harmful bacteria, homogenization to prevent cream separation, and separation to remove fat. Additionally, dairy processing includes fermentation to make products like yogurt. Understanding these steps is crucial in setting up a successful mini dairy plant.

Ensuring Food Safety and Quality Control

It’s essential to maintain strict standards for food safety and quality control when setting up your mini dairy plant. Here are some key points to keep in mind:

• Implementing proper sanitation practices is crucial to prevent contamination and ensure the production of safe dairy products.
• Regularly testing the quality of raw materials, such as milk, and the finished products is necessary to meet regulatory requirements and consumer expectations.
• Training your staff on hygiene practices and quality control measures is vital to uphold the integrity of your dairy products.
• Monitoring and documenting all processes, from milk collection to packaging, helps track and address any potential issues that may arise.
• Investing in reliable equipment and technology that support food safety practices can enhance the overall quality of your dairy products.

Regulatory Requirements for Mini Dairy Plants

To set up your own mini dairy plant, you must adhere to certain regulations put in place by the government. These regulations aim to ensure the quality and safety of dairy products consumed by the public. Here are some key regulatory requirements you need to consider:

• Obtain necessary permits and licenses from local health authorities to operate a dairy plant.
• Follow strict hygiene and sanitation practices throughout the dairy plant to maintain cleanliness and prevent contamination of dairy products.
• Regularly test and monitor the quality of milk and dairy products to ensure they meet the required standards.
• Comply with labeling requirements for all dairy products to provide consumers with accurate and relevant information.
• Implement proper waste disposal methods to maintain environmental and public health standards.

By meeting these regulatory requirements, you can successfully set up and operate your own mini dairy plant while ensuring the safety and quality of your dairy products.

Marketing Your Dairy Products

Marketing your dairy products is crucial for the success of your mini dairy plant. You need to reach out to potential customers and let them know about the quality and variety of dairy products you offer. Here are some key points to consider when marketing your dairy products:

• Identify your target market and understand their preferences.
• Utilize social media platforms to promote your products and engage with customers.
• Collaborate with local stores or farmers’ markets to showcase and sell your dairy products.
• Offer promotions or discounts to attract new customers and retain existing ones.
• Ensure your packaging is attractive and informative to catch the eye of consumers.
• Collect feedback from customers to improve your products and marketing strategies.
• Remember, effective marketing can help you build a loyal customer base and grow your mini dairy plant .

Managing Operations and Maintenance

When it comes to managing operations and maintenance of your mini dairy plant, it’s essential to establish a regular maintenance schedule to keep equipment running smoothly. Here are some key points to consider:

Regularly clean and sanitize all equipment to prevent contamination and ensure quality dairy products. Monitor the temperature and humidity levels in the plant to maintain optimal conditions for dairy production. Conduct routine inspections of machinery to identify any potential issues early on and prevent costly breakdowns. Train your staff on proper equipment handling and maintenance procedures to ensure efficient plant operations. By staying proactive and organized in your maintenance efforts, you can guarantee a successful and sustainable dairy plant operation.

Success Stories in Mini Dairy Plant Setup

Success stories in mini dairy plant setup can be a great source of inspiration for aspiring entrepreneurs. Learning from others who have successfully established their own mini dairy plants can provide valuable insights and tips to help you navigate through the challenges of setting up your venture. By studying these success stories, you can gain a practical understanding of the key factors that contribute to a thriving mini dairy plant, such as efficient operations, effective marketing strategies, and sustainable growth tactics.

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Micro Farm Business Plan Template

Written by Dave Lavinsky

Micro Farm Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their micro farms. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a micro farm business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Micro Farm Business Plan?

A business plan provides a snapshot of your micro farm as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Micro Farm

If you’re looking to start a micro farm, or grow your existing micro farm, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your micro farm in order to improve your chances of success. Your micro farm business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Micro Farms

With regards to funding, the main sources of funding for a micro farm are personal savings, credit cards, bank loans, USDA microloans, and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for micro farms.

Finish Your Business Plan Today!

How to write a business plan for a micro farm.

If you want to start a micro farm or expand your current one, you need a business plan. Below are links to each section of your micro farm business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of micro farm you are operating and the status. For example, are you a startup, do you have a micro farm that you would like to grow, or are you operating multiple micro farms?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the micro farm industry. Discuss the type of micro farm you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of micro farm you are operating.

For example, you might operate one of the following types of micro farms:

• Vertical Micro Farm : this type of micro farm focuses on maximizing growing space by planting vertically. Crops are typically grown in either a greenhouse or other outbuilding, where the environment can be controlled. These farms typically use the hydroponic or aeroponic method of farming.
• Short Season Crop Micro Farm: this type of micro farm specializes in growing crops that can be harvested quickly (example: baby spinach, microgreens, sprouts) so that multiple harvests may be completed in a year.
• Animal/Animal Product Micro Farms: this type of micro farm focuses on livestock such as dairy cows or bees.

In addition to explaining the type of micro farm you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of successful harvests, number of supply contracts, reaching X amount in sales, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the micro farm industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the micro farm industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your micro farm business plan:

• How big is the micro farm industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your micro farm? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your micro farm business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: consumers, restaurants, grocers, and wholesalers.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of micro farm you operate. Clearly, restaurants would respond to different marketing promotions than grocery stores, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other micro farms.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes grocery stores or other produce distributors, or consumers who maintain their own gardens. You need to mention such competition as well.

With regards to direct competition, you want to describe the other micro farms with which you compete. Most likely, your direct competitors will be micro farms located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What type of micro farm are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide high-demand products?
• Will you provide products that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a micro farm business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of micro farm company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to microgreens, will you provide mushrooms, or honey, or any services like outreach or consulting?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your micro farm. Document your location and mention how the location will impact your success. For example, is your micro farm located in an urban area, or will you offer products from a farm stand, or ecommerce website, etc.  Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your micro farm marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your micro farm, including planting and tending crops, harvesting, packaging products, meeting with potential customers, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sign your Xth supply contract, or when you hope to reach $X in revenue. It could also be when you expect to launch a micro farm in a new market.  

Management Team

To demonstrate your micro farm’s ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing micro farms. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in farming or successfully managing a wholesale operation.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you grow a single crop at a time or will you grow a variety of produce? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your micro farm, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a micro farm:

• Cost of building out the growing facility (vertical, aquaponic, etc.).
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your property deed/lease or existing supply contracts.   Summary Putting together a business plan for your micro farm is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the micro farm industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful micro farm.  

  OR, Let Us Develop Your Plan For You Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s business plan writers can create your business plan for you. Other Helpful Business Plan Articles & Templates

How to Start a Profitable Dairy Farming Business [11 Steps]

By Nick Cotter Updated Feb 05, 2024

Business Steps:

1. perform market analysis., 2. draft a dairy farming business plan., 3. develop a dairy farming brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for dairy farming., 6. open a business bank account and secure funding as needed., 7. set pricing for dairy farming services., 8. acquire dairy farming equipment and supplies., 9. obtain business insurance for dairy farming, if required., 10. begin marketing your dairy farming services., 11. expand your dairy farming business..

Starting a dairy farming business requires a comprehensive understanding of the market. A thorough market analysis will help you identify the demand for dairy products, understand the competitive landscape, and determine the best strategies for entry. Here are some essential steps to guide you through the market analysis process:

• Research the local and regional demand for dairy products, focusing on consumer preferences, consumption trends, and potential gaps in the market.
• Analyze the competition by identifying existing dairy farms, their product offerings, pricing strategies, and market share. This will help you find your unique selling proposition.
• Examine the supply chain for dairy farming, including the availability of feed, veterinary services, and access to markets for selling your products.
• Study the regulatory environment to understand the licensing, health regulations, and environmental standards you need to comply with in your dairy farming business.
• Consider the impact of economic factors such as milk prices, input costs, and subsidies that could affect the profitability of your dairy farm.
• Assess the risks involved in dairy farming, including disease outbreaks, price volatility, and climate-related challenges.

Are dairy farming businesses profitable?

Yes, dairy farming businesses can be profitable, depending on the size of the operation and other factors such as the type of cows being milked, the market for milk and other dairy products, and the cost and availability of feed and other resources. Dairy farming can also be a labor-intensive business that requires substantial investments in both time and money.

A comprehensive dairy farming business plan is essential as it serves as a roadmap for your venture, outlining your business's goals, strategies, and financial projections. Here's a guide to help you draft an effective business plan:

• Executive Summary: Summarize your dairy farming business, including the mission statement, farm details, and the products you plan to offer.
• Company Description: Provide detailed information about your farm, the ownership structure, location, and the competitive advantages of your dairy business.
• Market Analysis: Research the dairy industry, identify your target market, analyze competitors, and understand consumer demands and trends.
• Organization and Management: Outline your farm's organizational structure, detailing the roles and responsibilities of the management team.
• Products and Services: Describe the dairy products you will produce, such as milk, cheese, yogurt, or butter, and any additional services you may offer.
• Marketing and Sales Strategy: Explain how you plan to attract and retain customers, including your sales strategy and promotional activities.
• Financial Projections: Present a financial plan with projections for income, expenses, cash flow, and a break-even analysis.
• Appendix: Include any additional documentation that supports your business plan, such as resumes, permits, or legal documents.

How does a dairy farming business make money?

Dairy farming businesses make money by selling the milk, butter, cheese, and other products from the cows to customers. They have the ability to reach a wide variety of target audiences, from grocery stores and restaurants to cheese tastings and farmer's markets. For example, an air duct cleaning business can target homeowners and commercial customers who need their air ducts inspected and cleaned annually. Additionally, they could offer services such as carpet cleanings and air filter changes as part of their business model.

Building a brand in the dairy farming industry involves emphasizing the quality, purity, and ethical practices of your production. Your brand should communicate trust and commitment to natural, wholesome dairy products. Focus on these key elements:

• Brand Values: Highlight your commitment to sustainable farming, animal welfare, and natural products.
• Visual Branding: Develop a logo and packaging that convey freshness, purity, and the farm-to-table concept.
• Product Differentiation: Showcase any unique aspects of your dairy products, such as organic certification or specialty items.
• Community Engagement: Build brand loyalty by engaging with your community through farm tours, local markets, and educational initiatives.

How to come up with a name for your dairy farming business?

Coming up with a name for your dairy farming business requires a creative and thoughtful approach. Consider starting by brainstorming words that evoke feelings related to dairy farming, such as freshness, wholesomeness, or nature. Then consider words and phrases that will capture the spirit of your business and reflect its unique purpose. If ideas don’t come easily, try using word association to help generate new perspectives on the name. Finally, it is important to ensure that the chosen name is easy to pronounce and remember, as well as being distinct enough to be recognisable when marketing your business.

Formalizing your business registration is a critical step in legitimizing your dairy farming enterprise. This process can vary depending on your location, but it typically involves a few common steps to ensure that your business is recognized by the law and ready to operate. Follow these guidelines to get your dairy farm legally established:

• Choose a Business Structure: Decide whether your dairy farm will be a sole proprietorship, partnership, limited liability company (LLC), or a corporation. Each structure has different legal and tax implications.
• Register Your Business Name: Select a unique name for your dairy business and register it with the appropriate state authority. Check for trademarks to avoid infringement.
• Obtain Necessary Licenses and Permits: Research and secure all required local, state, and federal licenses and permits for operating a dairy farm, including health permits and land use approvals.
• Get an Employer Identification Number (EIN): If you plan to hire employees, apply for an EIN from the IRS for tax purposes.
• Register for State and Local Taxes: Register with your state's taxation department to obtain a tax identification number, worker's compensation, unemployment, and disability insurance.
• File Your Business Formation Documents: Submit articles of incorporation or organization with your state's business filing office, if forming an LLC or corporation.

Resources to help get you started:

Explore crucial materials designed for dairy farming entrepreneurs, featuring publications, industry reports, newsletters, and more to illuminate market trends, operational excellence, and strategic growth advice:

• Dairy Herd Management : Offers insights on herd management strategies, health tips, and the latest technology trends in the dairy industry. Link .
• Hoards Dairyman : An industry-leading publication providing research, dairy economics, and product news. Link .
• The Dairy Site : Delivers news, analysis, and articles on dairy market trends, animal health, and farming efficiencies. Link .
• Farm Journal's MILK : Focuses on business information and industry data for dairy producers. Link .
• Progressive Dairy : Highlights innovative practices, production tips, and management techniques for dairy farmers. Link .
• Dairy Foods Magazine : Covers dairy processing, sustainability practices, and market dynamics affecting the dairy industry. Link .

Starting a dairy farm involves navigating through various regulations to ensure your business is compliant with local, state, and federal laws. Acquiring the necessary licenses and permits is a critical step that legitimizes your operations and helps maintain public health standards. Below is a guide to help you through this process:

• Research Local Zoning Laws: Check with your local zoning office to ensure that your land is zoned for agricultural use and specifically for dairy farming.
• Obtain a Business License: Register your dairy farm as a business with your city or county, and obtain a general business license.
• Dairy Permit: Contact your state's Department of Agriculture to apply for a dairy permit, which usually requires an inspection of your facilities to ensure they meet health and safety standards.
• Environmental Permits: You may need permits related to waste management and water use. Check with the Environmental Protection Agency (EPA) or equivalent state agency.
• Building Permits: If you're constructing new facilities or altering existing ones, you'll need to secure building permits from your local government.
• Health Department Permits: Consult your local health department about any additional permits related to the handling and processing of milk and dairy products.

What licenses and permits are needed to run a dairy farming business?

The licenses and permits required to run a dairy farming business will vary depending on the location and type of business. Generally, you will need to acquire a local business license, as well as any necessary permits for keeping and raising livestock. In addition, nearby ordinances may require additional permits, such as water discharge permits or zoning permits. You may also need to obtain a dairy license from your state agriculture department, or the state's Department of Environmental Protection.

Starting a dairy farming business requires careful financial planning and management. A dedicated business bank account is essential for keeping personal and business finances separate and professional. Additionally, securing adequate funding is crucial for covering startup costs and ensuring smooth operations. Follow these steps to set your dairy farm on a firm financial foundation:

• Choose the right bank: Research banks that offer business accounts with favorable terms. Consider factors like fees, services, and any agricultural business incentives they may provide.
• Prepare the necessary documents: Typically, you'll need your business registration details, tax identification number, and personal identification to open an account.
• Explore funding options: Look into grants, loans, and investors that specialize in agriculture or small businesses. Government programs may offer favorable terms for rural businesses.
• Develop a business plan: A solid business plan will not only help you secure funding but also guide your business decisions. Make sure it includes financial projections and a clear strategy for growth.
• Consider equipment financing: Dairy farming requires substantial equipment. Leasing or getting a loan for equipment can help manage cash flow.
• Monitor your financial health: Regularly review your finances to ensure your business stays on track. Professional accounting software or a dedicated accountant can assist with this.

Setting the right prices for your dairy farming services is crucial to ensure a profitable business while remaining competitive in the market. Careful consideration of your costs, market rates, and the value you offer to customers is essential. Below is guidance to help you establish your pricing strategy:

• Analyze Costs: Calculate all the costs involved in your dairy operation, including feed, labor, equipment, maintenance, and overheads. Your prices should cover these costs and allow for a reasonable profit margin.
• Competitive Pricing: Research what other dairy farms charge for similar services. Use this information to set competitive prices, but don't undervalue your services just to undercut the competition.
• Value-Based Pricing: Consider the unique aspects of your services that might warrant a higher price, such as organic certification, premium quality, or specialized products.
• Flexible Pricing Models: Develop pricing models that can accommodate different customers, such as wholesale rates for large orders or retail prices for direct-to-consumer sales.
• Review and Adjust: Regularly review your pricing to ensure it reflects any changes in costs, market demand, and the overall economic climate. Be prepared to adjust prices as necessary to stay competitive and profitable.

What does it cost to start a dairy farming business?

Initiating a dairy farming business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $400000 for launching such an business. Please note, not all of these costs may be necessary to start up your dairy farming business.

Starting a dairy farm requires careful planning and acquisition of essential equipment and supplies to ensure that your operation runs smoothly and efficiently. From milking machines to feed, each item plays a pivotal role in the health of your livestock and the quality of the dairy products you produce. Consider the following list of necessary equipment and supplies as you embark on your dairy farming venture.

• Milking Equipment: Purchase reliable milking machines, stainless steel milk buckets, teat cups, and sanitizing systems to ensure a hygienic milking process.
• Housing Supplies: Invest in comfortable and spacious cow barns or sheds with proper ventilation, bedding materials, and manure management systems.
• Feeding Equipment: Acquire feeders, water troughs, silos for feed storage, and a mixer wagon for preparing and distributing a balanced diet.
• Health and Hygiene Supplies: Keep a stock of veterinary supplies, such as medicines, vaccines, and first aid kits, alongside cleaning agents and equipment for barn hygiene.
• Refrigeration System: Ensure you have a cooling tank or bulk milk cooler to maintain the quality of milk post-harvest.
• Fencing and Security: Install secure fencing around the perimeter and invest in security cameras or systems to protect your livestock and property.
• Record Keeping and Management Tools: Utilize dairy management software or maintain logs for breeding, production, and health records of your herd.

List of software, tools and supplies needed to start a dairy farming business:

• Livestock feed (per ton): $160 - $400
• Milking machines: $3,000 - $7,000
• Cattle stalls/shelters: $4,000 - $7,000
• Breeding supplies (mate selection, semen analysis, etc.): $250 - $1000
• Farm management software: $60 - $150/month
• Computer hardware and software: $500 - $1500
• Cow ID tags and record keeping supplies: $100 - $500
• Cattle handling equipment: $2,000 -$5,000
• Direct-marketing supplies (labels, containers):$200-$500
• Water supply equipment (tanks, pumps):$900-$3,500

It is crucial to protect your dairy farming venture with the appropriate business insurance. This will safeguard against potential risks and ensure that your operations can continue smoothly in the event of unforeseen circumstances. Here is a guide to obtaining business insurance for your dairy farm:

• Research different types of insurance: Look into property insurance, liability insurance, livestock insurance, and product liability insurance to cover various aspects of your dairy farm.
• Assess your farm's specific needs: Evaluate the size of your operation, the number of animals, equipment, buildings, and any special requirements to determine the coverage you need.
• Consult with insurance professionals: Speak to agents who specialize in agricultural insurance to get advice on the best policies for your situation.
• Compare quotes: Obtain quotes from several insurance companies to find the most comprehensive coverage at a competitive price.
• Review the policy details: Carefully read the terms and conditions of the insurance policy to understand what is covered and any exclusions or limitations.
• Stay compliant: Ensure that your insurance meets any legal requirements in your region for dairy farming businesses.
• Regularly review your coverage: As your dairy farm grows or changes, periodically reassess your insurance needs to make sure you remain adequately protected.

Marketing your dairy farming services is key to attracting customers and building partnerships. Developing a strong brand and outreach strategy will help your dairy farm stand out in the market. Here are some essential steps to effectively promote your dairy farm:

• Identify Your Target Market: Understand who your ideal customers are, whether they are local grocers, restaurants, or direct consumers.
• Develop a Brand: Create a memorable brand name, logo, and slogan that reflects the quality and values of your dairy products.
• Online Presence: Build a professional website and engage with customers through social media platforms to increase visibility.
• Community Engagement: Participate in local farmer's markets, fairs, and agricultural shows to showcase your products and network with potential clients.
• Advertising: Invest in advertising through local newspapers, radio, or online platforms targeting audiences interested in dairy products.
• Customer Experience: Provide excellent customer service and encourage word-of-mouth referrals by ensuring customer satisfaction.

Expanding a dairy farming business requires strategic planning and careful consideration of both market demands and resource management. This phase is crucial for sustainable growth and long-term success. Here are key points to consider:

• Assess Market Demand: Understand local and regional dairy product demands. Consider expanding product lines or entering new markets.
• Upgrade Facilities: Invest in modernizing milking equipment and storage facilities to increase efficiency and production capacity.
• Enhance Animal Welfare: Implement practices for better health and productivity of the herd, such as improved feeding, housing, and veterinary care.
• Invest in Technology: Utilize technology for herd management, milk quality control, and operational efficiency.
• Staff Training: Train staff in advanced dairy farming techniques and management practices to ensure high productivity and quality standards.
• Financial Management: Plan for financial investments and seek funding opportunities. Maintain a balance between debt and profitability.
• Environmental Sustainability: Adopt eco-friendly practices like waste management and renewable energy sources to reduce the environmental impact.
• Network and Collaborate: Engage with dairy associations, local farmers, and agribusiness experts for insights and partnership opportunities.
• Marketing Strategies: Develop strong marketing campaigns to promote products and build brand recognition.

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8 Things You Need to Know Before Starting Your Own Dairy Farm

Develop a Business Plan and SWOT Analysis

It is important to remember that a dairy farm is a business. Development of detailed business plan and a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) of your plan and the resources you have available will be critical to the success of your business. How many cows will you milk? Where will you market your milk? Will you hire employees? How much money do you need to live on after the dairy bills are all paid? Your business plan should include a cash flow plan that will help you set reasonable expectations for your expenses and cost of production.

Consult the Experts

Even if you grew up on a dairy and learned how to feed and milk cows from your parents and grandparents it is important to consult experts in the dairy industry as you develop your business plan and design your management system. Other dairy producers are great resources. Attend field days and open houses on dairy farms in your area and other parts of the state or country. When visiting other farms find out what has worked well on those farms and what has not worked, but keep in mind that just because something worked on one farm does not mean it will work for you on your farm. In addition to farmers, talk to veterinarians, nutritionists, agronomists, bankers, extension educators, and others that can provide different perspectives on management of your dairy.

Create a Cropping and Feeding Program

Whether you are going to feed a TMR (total mixed ration), graze your cattle, or some combination of both; dairy cattle require a certain set of nutrients to support themselves, produce milk, and grow a calf. Work with a nutritionist to develop rations for your lactating cows and dry cows and heifers if these animals are to be raised on the farm. Many dairy farms in Pennsylvania produce most if not all their own forages and many of their concentrate (grain) needs. Raising all your own feed takes land and time, not to mention equipment for planting and harvesting the crops. Hiring custom operators to plant and harvest crops, or making arrangements with neighbors to share equipment and labor can reduce your capital investment as you get started with your dairy business and are building capital. Double cropping systems, with small grain crops following corn silage, are used successfully on many Pennsylvania farms.

Create a Waste Management Plan

Dairy cattle produce a lot of manure. While this manure is often referred to as waste, if managed and used properly it can be a great resource on the farm. Manure management will be tied closely to your cropping and feeding program. If you are able to use a double cropping system on your farm it will not only allow you to produce more feed but will also allow you to apply more manure to your land. Alternatives to direct land application of manure include composting and anaerobic digestion of manure, while these options may provide additional revenue and other benefits to your dairy they will also increase the capital investment required to get your dairy started. Every farm will need a manure management plan, but depending on the size of your farm a nutrient management plan may also be required. Check with your county Conservation District or local Extension office for more information.

Build Your Equity Over Time

Dairy farming requires a large capital investment. Land, buildings, equipment, and cows are expensive and few new dairy farmers will have the capital required to purchase everything when they get started in business. Many beginning farmers begin by purchasing their cows first and renting the farm and land. These initial animals are your farms equity.

Dairy Farming is a Biological System

The dairy farm is dependent on the cow's ability to live a healthy life, produce milk, and have calves that can become the next generation of the farm. Dairy farming requires detailed programs for herd health, reproduction and calf care in addition to the nutrition and financial aspects on the farm. Working with your veterinarian, genetics representatives and extension agents can help you develop comprehensive farm plans to create a positive future.

One Size Does Not Fit All

All dairy farms are different based on the producer's wishes, resource requirements, market needs and more. Multiple systems exist and can be profitable. Some producers contract out their replacements to a custom heifer raiser while others diversify by selling crops, raising steers or creating a home-bottling plant. How you farm will depend on your desires, resources, and drive.

You are a Manager First

All these previous items are just pieces of the puzzle. In order to succeed you will need to combine each aspect of management into a whole farm plan. However, you don't need to do it all. Work with trusted consultants to help you build a plan, and stick with your strengths. If you love milking cows but hate planting corn, find someone to work with who does, or contract that work out to a third party. Consider creating a farm management team or profit team that engages your consultants to be active participants in the farm's progress.

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Milky Day Blog

Milk processing, cheese making, organic dairy food & products

How to Run a Micro-Dairy in the US: This Is the Story of Brian Johnston

Brian Johnston is living proof that the U.S. micro-dairy business is profitable. He is a fourth-generation farmer from Tennessee who dedicated all his life to his small dairy business.

Luckily, Brian agreed to an interview with us to share his experience with our readers. We asked him a lot of different questions and were surprised by his in-depth knowledge on the dairy industry. His story is full of passion and drama, and we hope you will find it useful.

At what age did you get involved in the dairy business? What made you choose it?

I grew up on a dairy farm. I am a fourth-generation dairy farmer and the last in my family. We milked Guernseys, Jerseys and numerous cross-breed cattle. My grandfather liked to “play with colors.” We never knew what color the calf would come out. Since the 1960s, there have been so many changes in the dairy industry. Once upon a time, one could milk a few cows and still make a decent living.

Today, one must produce 3,500 pounds or roughly 1,600 kg of milk daily to get a truck to pick it up. At age 50+, I don’t want to work that hard in my “antique” facilities. The facility requirements are regulated very tightly, and even now, the processing dairies have implemented a “herd health plan” where they send veterinarians out to assess your herd’s health. Most don’t know which end of a cow is which and are just out of school. Egos are significant, the experience is small. Most have never seen a cow in real life.

Now, you run a micro-dairy business. What were the main reasons why you started it and was that hard to do? Which cow breed would you recommend for beginners to start with and why?

I started the micro-dairy business because I LOVE cows. I would be lost without them. In the U.S., we have “emotional support animals.” Cows are mine. My friends laugh at me about that. Cows have been my best friends since I was a little child. 

Thinking of starting your own small dairy farm? Find out what equipment you will need from our quick round-up of all vital dairy machines: https://milkyday.com/blog/2020/08/24/milk-processing-equipment-for-small-scale-dairy-farm/

After seven years, I quit working for the neighbors that milk 110+ cows because I couldn’t keep working a 50-60-hour/week job for my dad and milking that many cows. My dad needs more of my attention as he ages and I needed to be able to devote time to him and his care. 

Important! How do you think, are you ready for running a small dairy business?  Download our Checklist with 15 Things You Should Consider Before Starting a Small Dairy Business. It will help you to avoid some costly mistakes.

I started with Jerseys because they are somewhat easy to find and inexpensive. I am trying to help sustain some rare-breed cows here from the States, but they aren’t as easily attained or as cheap. I choose my breeds based on butterfat/cream and cheese yield capabilities. I do not want quantity — I want quality milk. It’s not how much. It’s how good the milk is.

The Jerseys and Guernseys have A2A2 proteins that make it easier to digest for those with milk allergies too. Guernseys and Jerseys are the easiest to handle and tend to be the calmest. There is also a breed called Dexter that is small for a homestead dairy. They produce good milk and meat and are also calm. Dexters weigh about 600 pounds (275 kg). Most cows will treat you well if you make them pets.

Holsteins have a larger quantity of milk, but they do not have the cream and proteins good for cheese-making. They carry the A1A1 gene for protein as well. The cheese yield is not as good (10 kg milk to 1 kg cheese, compared to 8 ½ kg milk to 1 kg cheese for Guernseys and Jerseys). I am actually crossing my cows with Normandes. This will help get rid of some of the inbreeding issues from the American breeds and will maintain cream and cheese yields.

Question from sub-Saharan Africa: People there have cows primarily for beef-eating purposes and secondarily for the production of local milk and tofu. Do you think it is possible to cross-breed a high-yielding, quality milk-producing cow from the USA or Europe (e.g. Jersey) with a local breed to produce milk, butter and cheese from home just like you?

Crossing dairy breeds with local breeds is a good idea no matter where you live. In sub-Saharan Africa, the local/native breeds have been bred over the years to tolerate heat and drought and foraging conditions. Crossing dairy breeds with them will raise the milk yield but still maintain the ability to deal with local weather and foraging conditions. They will have what is called “hybrid vigor.”

Deciding what to breed back to is the choice after that. European dairy cows have been bred to still maintain a good carcass for butchering. U.S. cows have been bred to be too skinny and “frail” in my opinion. 

There are a lot of grass-fed vs. grain-fed discussions on the internet. What is your approach? Is it seasonal or year-round? If seasonal, when do you plan the birth of your calves?

The grass-fed vs. grain-fed debate has gone on since the advent of livestock feed yards. Cows in confinement tend to milk more consistently than pastured cows and one can control what the cows eat more carefully. I only feed enough concentrate in the barn to keep the cows healthy and calm. I feed about a 1:3 ratio on production (1 kg feed to 3 kg milk). Otherwise, my cows only get grass and hay. I let them do the foraging.

The cream content is higher in the winter because of the longer-stemmed forage and less heat. You can always feed to warm up a cow, but you can only do so much to cool them off — especially when temps are in the 30s Celsius with high humidity like here this summer. 

The proven research is that grass/hay-fed meat and milk are much healthier for you than the confinement-fed animals here in the States. The natural grasses and browsing that cows do produce the meat and milk with the vitamins and minerals and healthy fats, as opposed to feeding yard-fed animals. Most large commercial producers in the States feed waste food products from the food manufacturing industry (old bread, candy, etc.) to fatten the meat animals quickly, not necessarily being worried about the quality of meat. 

I do milk my cows year-round. I stagger the calving process as much as possible to keep a steady flow of milk. Again, customers can be fickle and they are the hardest part of the industry.

As a micro-dairy owner, what equipment did you need to start with? How much money did it cost you to start this business?

The only equipment for a micro-dairy owner is a bucket, some sort of filter and a refrigerator. And loads and loads of clean, fresh water. I use bleach as a post-milking teat diluted ¼ to 1 to keep udder infections down (¼ liter bleach to ¾ liter of water). I also use bleach and dish detergent and a brush to clean my milking equipment.

The highest costs were the purchase of the cow, fence repair and remodel of my building. Any building without a draft is a good place to milk. Even something just three-sided and out of the rain. We in the States think that heating and insulation are necessary, but I have milked by hand in a two-sided shed with a roof. The other thing one needs is patience and devotion. 

Cows must be milked daily to continue milk production. Some milk once a day. I personally don’t think that is good and I milk twice a day. But it depends on the milk production of each cow and your preferences and practices. Cleanliness is the most important key of all milk production and processing. 

Explore our equipment suited for different volumes of milk for use at home and on small to medium dairy farms: https://milkyday.com/

If you need any guidance when choosing the machine, just drop us a line — we are always ready to help you!

Dollar amounts for exact figures: $500-$700 per cow from a local dairy. I get their second-hand cows (age, low udder, three teats, not fitting into the dairy system). Fencing was just what had to be done before I could have cows. My situation cost $1,500. The original building I milked in was an old chicken house built from reclaimed lumber. I am ashamed to tell you what I have spent remodeling the dairy facilities.

As far as I know, it’s much easier for dairies to sell milk only, but you decided to produce dairy products. Why?

I would love to just sell milk. My life would be a whole lot easier. But customers are fickle. I have my regulars and I have my irregular regulars, then I have the one-time wonders and the ones that call every three months. Cows produce milk daily. I started making cheeses and butter to save the milk from going to waste. Now, I have a following for the butter and cheeses. I feed the skim milk and whey products to my chickens.

Please tell me more about the commercial side of your business. What products do you make and how do you sell them? Who are your main customers?

My main customers are from the internet and a website in my state promoting raw milk. Some are word of mouth. They tend to be families. Many are from Europe and the Middle Eastern countries where raw milk is prized. Some are Hispanic, and they tend to make cheeses to sell to their friends and families. They are the quantity buyers. I even have a list of folks I rotate through selling colostrum. 

My best-selling products are milk, butter and cheese curds. I make a Colby and a gouda cheese that are pretty good too. Some butter customers want the European-style cultured butter. Some want unsalted butter and some want ghee or clarified butter. Most want the golden butter I have from the Jersey and Guernsey cows. 

State laws say I cannot sell to a grocery. We have a “pet milk” or “herd share” requirement for raw milk. I incorporate the herd share costs into my products. I just have to have a sign on my refrigerator saying the legal statement. I only do dairy products at this point other than eggs. I am limited on time for anything else. There was a time I raised a garden and sold vegetables. I also ground grains and baked fresh bread along with jellies/jams.

In the raw milk vs. pasteurized milk debate, which side do you take?

I want raw milk. That is one big reason I milk cows. It is easier for the body to digest and we need healthy fats to lubricate our joints. 

In the days before we had all the cleansing products available and the knowledge of how to keep things clean, I understand the reason for pasteurization. The downside is that the body cannot digest the milk as well.

The ultra-pasteurized milk cooks the milk until all the proteins are denatured and are not good for you at all. I go to extra lengths to make sure my milk is of the highest standards of cleanliness — only because I drink and use the milk myself. If I have to medicate a cow, I will not sell the milk until the withdrawal time has passed or I have had the milk tested to make sure there is no drug residue in the milk. One cannot make cheese with milk that contains antibiotics. 

Not all farmers are so conscious about their products, unfortunately. Learn why you should choose pasteurized milk every time you don’t trust a seller completely: https://milkyday.com/blog/2019/11/18/ultra-pasteurized-milk-is-it-bad-how-is-it-made/

What kind of insurance do you have to cover yourself if one of your customers gets sick? Do you deal with this kind of dairy farm insurance?

My homeowners/farm insurance policy covers me if anyone gets ill. We recently had a farm in our state that had a legal battle over an illness. They went out of business and it was horrible for the family. Even though it was never proven that the disease came from raw milk consumption, the bacteria were found on that farm. Our senators tried to ban all raw milk sales in our state. Thankfully, that didn’t work.

What equipment is essential for running a micro-dairy? Do you use some special fridge for your products? How do you ripen and keep them?

I personally use a milking system. I had the pipeline from when I had a larger herd of cows. I think a milking system of some sort tends to make sure the milk is more sanitary than hand milking. But that doesn’t mean one can’t milk by hand and keep it clean. A bucket milker for one cow is fairly easy to clean. Again, bleach and dish detergent and a brush.

I just have regular refrigerators for my products. The cheese ripens in a refrigerator that no longer gets as cold as it used to, but it still works for that. I don’t ripen much unless I am making cheeses. Then room temperature or the specified temperature of the process is what I use. 

I know that you use a homemade butter churn you made by yourself. Was that easy to do and how much money did you invest in it?

My butter churn is a simple drill press from a hardware/tool store. It was on sale. I buy all I can on sale so I don’t waste money. A simple rust-resistant paint-stirring paddle from any hardware store will work. In small batches, a kitchen blender will work to make butter. I think the drill press cost me $125 plus sales tax. The paint paddle was inexpensive. The stainless-steel kettle was bought off the internet and it was more expensive ($150 or so), but it’s 37 liters and I use it for cheese-making as well as butter-making. 

What advice would you give to people who would like to start and run a micro-dairy as well? 

Advice? I guess the answer to that is: Whoever does a micro-dairy and deals with the public needs patience and people skills. That is as important as cow care and product-making skills. 

Devotion and dedication is also something. If you already milk cows, you know the requirements of that. Otherwise, never getting a day away from the cows might make you angry and frustrated. Even with a small herd, I have issues happen that make me want to tear out my hair. I am single because my ex didn’t want cows or the dedication that it requires. 

Remember, customer satisfaction is the priority, so cleanliness and quality products go with that. If your product or your attitude is sour, one cannot be successful. 

Would you like to share some easy butter or cheese recipes for beginners with our subscribers?

I purchased a cheese-making recipe book from the internet on cheesemaking.com .

There are many books out there. I don’t have any personal favorites. It has been trial and error on what sells well and customer preferences. 

All I can report on butter- and cheese-making is, MAKE SURE ALL IS SCRUPULOUSLY CLEAN! I have had cheese fails and sour butter because I didn’t make sure my equipment was sterile. Again, bleach, soap and hot water are my friends.

Wanna hear a cool thing? You can make your own homemade mozzarella using a milk pasteurizer! Find out how: https://milkyday.com/blog/2016/11/09/want-to-make-fresh-mozzarella-cheese-at-home-its-easy-with-mini-milk-pasteurizer/

What are your plans for the future?

I mentor a special-needs boy and sometimes his sister on Sundays. They come to help me and we learn so much about farming and cows and have a fun time doing so. I currently don’t have any plans set up for the future. I am divorced. I have no children except my dog, cows and chickens.

I know I will keep doing this as long as I possibly and physically can. I am hoping by the time my father retires, I will have enough income from the micro-dairy to not have to work a job. That way, I will be able to care for him as he ages.

Brian was very open with us. We hope you enjoyed this interview as we did.

IMPORTANT NOTICE. It is wise to check requirements and codes in your local jurisdiction for you to be in compliance with local laws governing the sales of raw milk and dairy products.

Leave your comments if you would like to share your ideas with us.

Wonderful story, thanks for sharing!

Business Plan

A business plan organises your ideas for your dairy farm, creating a roadmap for success. this page reveals that businesses with a plan perform better, as it aligns everyone, identifies opportunities, and avoids problems. the process involves assessing your current situation, considering options, setting priorities, and tracking progress. while the business manager leads the plan, everyone contributes, maintaining focus and building credibility. your plan should answer critical questions about your farm's purpose, status, ambitions, strategies, and success indicators. regularly update your plan to adapt to changing circumstances. guidance is provided to create a comprehensive plan, including vision statements, goals, and actions..

Writing a business plan helps you organise your thoughts and map out the road to where you want to take your business.

Research shows that businesses with a business plan perform better than those without.

Why write a business plan?

Writing a business plan helps you organise your thoughts and map out the road to where you want to take your business.  An effective business plan lays the blueprint for future business success. A business plan:

• Helps you organise your thoughts and road map where you want to take your business
• Aligns owners, investors and staff
• Demonstrates you are looking at all possibilities
• Gives you confidence you have the best chance of making your business succeed
• Helps you identify opportunities you may never have otherwise recognised – and avoid potentially expensive problems you wouldn’t have otherwise seen coming.

How does business planning work?

Business planning challenges you to think through your ideas and identify possible issues and opportunities.

• Provides a process to consider where you are now, look at options, seek advice, and select the most important things to take forward.
• Gives you direction, a map to follow, and a sense of urgency - helping you, your staff and advisers prioritise effort.
• Allows you to measure progress towards  goals  and take action to ensure you keep on track
• Builds credibility and convinces others (including lenders) you know what you're doing.

Who is responsible for the business plan?

The business manager is responsible for the business plan, but good plans are contributed to by staff and advisers, overseen by directors, trustees and owners; reviewed by financiers, and implemented by staff, so all pull in the same direction

What questions should a good business plan answer?

• What are we about?
• Where are we now?
• Where do we want to be?
• How will we get there?
• How will we know we’ve succeeded?

How often do I update my business plan?

At least annually, because no situation stays the same for long; your business will face new challenges and opportunities over the years which is why it’s essential you regularly review and update your business plan.

Write your business plan

Create a business plan suitable for sharing with your bank, potential investors, business partners, farm advisory team or staff.

• Farm Business Plan  (Editable pdf)
• Farm Business Plan  (Word doc)
• Farm Business Plan template guide  (pdf)

Need help creating your vision statements and goals and actions for your business plan? Use the interactive QuickPlan tool to select from examples or create your own.

Starting afresh or revisiting your business planning? Create your vision, assess your situation, set goals and actions; and plan your succession and governance.

Additional Resources

Related content.

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Dairy Farming Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Agriculture Industry » Livestock Farming » Cattle and Dairy

Are you about starting a dairy farming business? If YES, here is a complete sample dairy farming business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a dairy farming business . We also took it further by analyzing and drafting a sample dairy farming marketing plan template backed up by actionable guerrilla marketing ideas for dairy farms. So let’s proceed to the business planning section.

We all take in dairy foods on a regular basis; in fact there isn’t any home that doesn’t consume dairy foods. This primarily is one of the reasons why those who have built a business around the dairy industry are making a great deal of income on a daily basis. One of the businesses that revolved around the diary trade is starting a dairy farm.

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It pays that one does all that needs to be done in order to start with the right footing. As such one, one can   undertake a thorough and exhaustive research. Thereafter think towards getting a firsthand knowledge of the industry by sitting under the tutelage of someone who has a firsthand experience and dealing with the trade.

You will also be required to write a business plan. One of the good things about business plans is that they serve as a great guide and blueprint to fly with. There are plenty business plan experts out there; to save you the troubles and fees that you will have to pay. A sample dairy farms business plan has been put together for your use;

A Sample Dairy Farming Business Plan Template

1. industry overview.

There are several business opportunities available in the agricultural industry and dairy farming is one of them. One good thing about the agriculture industry is that there is market for all the produce from the industry.  A dairy farm is of course a thriving and profitable business because of usefulness of beef and milk.

People eat beef, drink their milk, and use their fur and skin. With cattle milk, cheese can be made, along with other dairy products. Companies in the dairy farms industry primarily raise cattle for milk.

Although this industry basically engage in the sale of raw milk and excludes the production of drinkable fluid milk and processed dairy products like butter, cheese and powdered milk, some dairy farms can still go ahead to accommodate other related business within the industry as long as they have the capacity to do so.

In recent time, the price of raw milk has been highly volatile, resulting to fluctuations in revenue for the Dairy Farms industry.

For example, in 2011, the price of milk bounced back from the recession and pushed up by increasing global demand, resulting to appreciable growth in revenue generation. It was projected that in 2016, an oversupply of dairy products is expected to cause revenue to deep further in the industry.

However, despite all the volatility, the industry is expected to experience appreciable growth going forward. For the time being, the price of cattle feed, which typically makes up about half of the average dairy farm’s total expenses, has been nose diving as far back as 2014, significantly strengthening industry profit margins.

The Dairy Farms Industry is indeed a large industry and pretty much active in countries such as United States of America, Israel, Argentine, Holland, Egypt, China, Germany, Turkey and Nigeria et al. There is no single dairy farm company that has dominate market share in the industry hence smaller dairy farms business can successfully make profits.

Statistics has it that in the united states of America alone, there are about 42,536 registered and licensed dairy farms business responsible for employing about 345,672 and the industry rakes in a whooping sum of $47 billion annually. The industry is projected to enjoy 1.3 percent annual growth.

As an aspiring entrepreneur who is looking towards leveraging on the agriculture industry to generate huge income, then one of your best bet is to start dairy farms business. Dairy farms business is all about mass – breeding of cattle (cows, oxen, bulls, bullocks, steers, heifers and calf et al) for the sole aim of generating raw milk in commercial quantities and of cause making profits.

Just like any other business, if you are able to conduct your market research and feasibility studies before launching your dairy farms, you are more likely not going to struggle to sell your raw milk and other dairy products because there are loads of people out there we eat beef, drink milk and industries that make use of byproducts from cattle in manufacturing their products.

Lastly, there are few barriers to entry into the dairy farms industry. Usually, all inputs are readily available. In the nearest future, players in this industry may face the highest costs associated with accessing technology, especially in relation to genetic modification engineering in livestock breeding.

So also, intellectual property rights protecting new inventions and technology may mean that new entrepreneurs coming into the industry will need to pay license fees and this of course will cause increase in the start – up fee for starting a dairy farm cum cattle rearing business.

2. Executive Summary

Columbus & Sons Dairy Farms, LLC is a registered and world class dairy farms company that will be based in the outskirt of Pierre, South Dakota – United States. We have done our detailed market research and feasibility studies and we were able to secure a hundred acres of land to build our dairy farming business.

Our dairy farms business is a going to be standard one hence will be involved in commercial breeding of cows, oxen, bulls, bullocks, steers, heifers and calf et al for the main aim of producing raw milk in commercial quantities. We will also be involved in boarding services, breeding services, dairy support services, livestock health services, farrier services, and shearing services et al.

We are in the dairy farms business because we want to leverage on the vast opportunities available in the dairy farms industry, to contribute our quota in growing the U.S. economy, in national food (raw milk) production, meat, raw materials production for industries, to export agriculture produce from the United States to other countries and over and above to make profit.

Columbus & Sons Dairy Farms, LLC is well positioned to become one of the leading brands in the dairy farms industry in the United States of America, which is why we have been able to source for the best hands and equipment to run the business.

We have put process and strategies in place that will help us employ best practices when it comes to producing raw milk in commercial quantities and conforming to the rules and regulation as required by the regulating bodies in the United States of America.

At Columbus & Sons Dairy Farms, LLC our customer’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Columbus & Sons Dairy Farms, LLC is a private registered dairy farms company that is owned and managed by Columbus Parker and is immediate family members. The company will be fully and single handedly financed by the owner – Columbus Parker and his immediate family members at least for a period of time.

Before starting Columbus & Sons Dairy Farms, LLC, Columbus Parker has worked with some of the leading dairy farms in the United States of America. He has a degree in Agriculture Economics and well over 10 years of experience.

3. Our Products and Services

Columbus & Sons Dairy Farms, LLC is a licensed dairy farms business that is committed to producing raw milk in commercial quantities for both the United States’ market and the global market. We are in the dairy farms industry for the purpose of generating profits and we are going to do all that is permitted by the laws in the United States of America to achieve our business goals.

These are the areas we will concentrate on in our dairy farms business. If need arises we will definitely add more related animal breeding services to our list;

• Milking dairy cattle
• Dairy support services
• Dairy cattle farming
• Farrier services
• Sale and export of cotton wool and other dairy products
• Sale of Cattle and milk
• Sale of processed meat (beef) / can – beef (Processed Diary foods, and can beef et al)
• Shearing services
• Dairy farming related consultancy and advisory services

4. Our Mission and Vision Statement

• Our Vision is to become one of the leading dairy farms business brands not just in Pierre – South Dakota, but also in the United States of America.
• Our mission is to sell our raw milk and other dairy farms products in commercial quantities both locally, nationally and internationally.
• We want to build a dairy farms business that can favorably compete with other leading dairy farms brands in the United States of America and in the globe.

Our Business Structure

Columbus & Sons Dairy Farms, LLC is a dairy farms company that intend starting small in Pierre – South Dakota, but hope to grow big in order to compete favorably with leading dairy farms in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands in and around Pierre – South Dakota.

At Columbus & Sons Dairy Farms, LLC, we will ensure that we hire people that are qualified, hardworking, dedicated, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the management of the dairy farms. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions. Below is the business structure of Columbus & Sons Dairy Farms, LLC;

• Chief Operating Officer

General Dairy Farm Manager

Administrator / Accountant

• Sales and Marketing Executive
• Farm / Field Employees
• Front Desk Officer

5. Job Roles and Responsibilities

Chief Operating Officer:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for the planning, management and coordinating all farm activities across the various sections on behalf of the organization
• Supervise other section manager
• Ensures compliance during project executions
• Provides advice on the management of farming activities across all section
• Responsible for carrying out risk assessment
• Uses IT systems and software to keep track of people and progress of the growth of cattle
• Responsible for overseeing the accounting, costing and sale of raw milk and other dairy products
• Represent the organization’s interest at various stakeholders meetings
• Ensures that dairy farm goals desired result are achieved, the most efficient resources (manpower, equipment, tools and chemicals et al) are utilized and different interests involved are satisfied. Responsible for preparing financial reports, budgets, and financial statements for the organization
• Oversee the smooth running of the daily farming activities across the various farming sections.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Responsible for financial forecasting and risks analysis.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the farms
• Serves as internal auditor for the farms

Sales and Marketing Officer

• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of new business
• Writes winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company

Field Workers / Contract Staff

• Responsible for milking cattle as instructed by the general dairy farms manager
• Responsible for feeding cattle and other livestock as instructed by the supervisor
• Responsible for cleaning the cattle ranch
• Change the water in the water trough / trench as instructed by the supervisor on a regular basis
• Handles farm implements and machines as instructed by the section manager / supervisor
• Assist in handling the breeding of cattle
• Carries out task in line with the stated job description
• Assist in transport working tools and equipment from the dairy farm and back to the designated store room
• Handles any other duties as assigned by the dairy farm manager

Client Service Executive / Front Desk Officer

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the cattle ranch manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels / documents for the company
• Distributes mails in the organization
• Handles any other duties as assigned my the line manager

6. SWOT Analysis

Columbus & Sons Dairy Farms, LLC do not intend to launch out a business on a trial and error platform hence the need to conduct a proper SWOT analysis.

We know that if we get it right from the onset, we would have succeeded in creating the foundation that will help us build a standard dairy farms business that will favorably compete with leading dairy farms in the United States of America and in the rest part of the world.

As a standard dairy farms business, we look forward to maximizing our strength and opportunities and also to work around our weaknesses and threats. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Columbus & Sons Dairy Farms, LLC;

Our strength as a cattle rearing business is the fact that we have healthy relationships with loads of major players (agriculture merchants) in the dairy farms industry; both suppliers and buyers of raw milk in commercial quantity within and outside of the United States.

We have some of the latest cattle rearing machines; tools and equipment that will help us breed our cattle (cows, oxen, bulls, bullocks, steers, heifers and calf et al) in commercial quantities with less stress. Aside from our relationship (network) and equipment, we can confidently boast that we have some the most experienced hands in the dairy farms industry under our payroll.

Our weakness could be that we are a new dairy farms business in the United States and we may not have the required cash to pump into the publicity of our business. We are aware of this and from our projection will overcome this weakness with time and turn it to a major advantage for the business.

• Opportunities:

The opportunities that are available to us cannot be quantified. The fact that almost everybody in the world drinks milk and dairy farms products makes the business highly marketable.

We know that there are loads of homeowners, businesses and industries that will source for raw milk and other dairy products both in the United States of America and other parts of the world. We are well positioned to take advantage of these opportunities as they come our way.

Some of the threats and challenges that we are likely going to face when we start our own dairy farms are global economic downturn that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics), unfavorable government policies and the arrival of a competitor (a dairy farm or even cattle rearing farm that are also into production of raw milk) within same location.

There is hardly anything you can do as regards this threats and challenges other than to be optimistic that things will continue to work for your good.

7. MARKET ANALYSIS

• Market Trends

A close study of the dairy farming industry shows that most dairy farms that has the capacity do not just concentrate in the commercial production of raw milk for households and businesses that are involved in the production of fluid milk products, cheese, dry, condensed and evaporated milk, creamery butter and yogurt et al.

They go as far as establishing a standard milk and beef processing company in line with their core business. It is a means of maximizing profits and increasing source of revenue generation.

Despite the fact that dairy farm has been in existence since time immemorial, that does not in any way make the industry to be over saturated; dairy farmers are exploring new technology to continue to improve raw milk production processes and also meat and milk preservation and packaging process. The fact that there is always a ready market for raw milk and other dairy products makes the business evergreen.

Lastly, one of the notable trends in dairy farms industry is that with the recent advancement in technology dairy farmers can now improve the various breeds of the animals they are breeding so as to increase the quantity of milk they produce per time.

As a matter of fact, it is now easier for dairy farmers to comfortably import the kind of breed of domestic animal they want to breed from any country of their choice and also advancement in technology has made it easier to cross – breed different animal.

8. Our Target Market

As expected, the target market of those who are the end consumer of dairy farms produce and also those who benefits from the business value chain of the agriculture industry is all encompassing; it is far – reaching. Every household consumes produce from livestock farms be it meat, milk, and the skin (leather) used for bags, belts and shoes production et al.

So also a large chunk of manufacturing companies depends on dairy farms for some of their raw materials. In essence a dairy farmer should be able to sell his or her raw milk and other dairy products to as many people as possible.

We will ensure that we position our business to attract consumers of raw milk and other dairy products not just in the United States of America alone but also other parts of the world which is why we will be exporting some of our dairy farm produce either in raw form or processed form to other countries of the world.

Our Competitive Advantage

From experience, entrepreneurs are known to flock towards an industry that is known to generate consistent income which is why there are more dairy farms in the United States of America and of course in most parts of the world.

As a matter of fact, entrepreneurs are encouraged by the government to embrace commercial farming / dairy farming. This is so because part of the success of any nation is her ability to cultivate her own food and also export foods to other nations of the world.

Columbus & Sons Dairy Farms, LLC is fully aware that there are competitions when it comes to selling raw milk and other dairy products all over the globe, which is why we decided to carry out thorough market research and feasibility studies so as to know how to take advantage of the available market in the United States and in other parts of the world.

We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable dairy farming processes that can help us sell our raw milk and other dairy products at competitive prices, good network and excellent relationship management.

Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we will operate an all – round standard dairy farms that will be involved in diverse areas such as animal rearing and meat and milk processing and packaging plant. With this, we will be able to take advantage of all the available opportunities within the industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups dairy farms companies in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Columbus & Sons Dairy Farms, LLC is in the dairy farms industry for the purpose of maximizing profits hence we have decided to explore all the available opportunities within the industry to achieve our corporate goals and objectives. In essence we are not going to rely only on the sale of raw milk and other dairy products to generate income for the business. Below are the sources we intend exploring to generate income for Columbus & Sons Dairy Farms, LLC;

10. Sales Forecast

From the survey conducted, we were are able to discover that the sales generated by a dairy farm depends on the size and capacity of the dairy farms and of course the network of the business.

We have perfected or sales and marketing strategies and we are set to hit the ground running and we are quite optimistic that we will meet or even surpass our set sales target of generating enough income / profits from the year of operations and build the business from survival to sustainability.

We have been able to critically examine the dairy farms industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some workable assumptions as well with respect to the nature of dairy farms business that we run.

Below are the projections that we were able to come up with for the first three years of running Columbus & Sons Dairy Farms, LLC;

• First Fiscal Year-: $250,000
• Second Fiscal Year-: $650,000
• Third Fiscal Year-: $900,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics), and unfavorable government policies.

• Marketing Strategy and Sales Strategy

It is a known fact that the reason why some dairy farms hardly make good profits is their inability to sell off their raw milk and other dairy products to a larger market. In view of that, we decided to set up a standard meat and milk processing and packing plant to help us maximize profits.

Over and above, we have perfected our sale and marketing strategies first by networking with agriculture merchants and companies that rely on raw materials from the dairy farms industry who are likely to refer become our customers. In summary, Columbus & Sons Dairy Farms, LLC will adopt the following strategies in marketing our cattle rearing produce;

• Introduce our business by sending introductory letters alongside our brochure to stake holders in the agriculture industry, companies that rely on the dairy farms industry for their raw materials, hotels and restaurants and agriculture produce merchant et al.
• Advertise our business in agro – allied and food related magazines and websites
• List our dairy farms on yellow pages ads (local directories)
• Attend related agriculture and food expos, seminars, and business fairs et al
• Leverage on the internet to promote our business
• Engage in direct marketing
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means (both conventional and non – conventional means) to advertise and promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means.

We know that it is important to create strategies that will help us boost our brand awareness and to create a corporate identity for our cattle rearing business. Below are the platforms we want to leverage on to boost our dairy farms brand and to promote and advertise our business;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our business
• Install our Bill Boards on strategic locations all around Pierre – South Dakota
• Engage in road show from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact corporate organizations and residence in our target areas by calling them up and informing them of Columbus & Sons Dairy Farms, LLC and the dairy farm produce we sell
• List our dairy farms in local directories / yellow pages
• Advertise our dairy farms in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.

12. Our Pricing Strategy

We are fully aware that some of the key factors that will help us sell our raw milk and other dairy farm products at the right price that will guarantee that us making profits is dependent on our strategy while some of the factors are beyond our control.

For example, if the climatic condition is unfavorable and if there is natural disaster in the location where we have our dairy farm, then it will directly affect the prices of our raw milk and other dairy farm products.

The truth is that, if we want to get the right pricing structure for our raw milk and other dairy products, then we must ensure that we choose a good location for our dairy farms, choose a good breed that will guarantee steady and multiple breeding (prolific breeds), cut the cost of running our farm to the barest minimum

And of course try as much as possible to attract buyer to our farm as against taking our raw milk and other dairy products to the market to source for buyers; with this, we would have successfully eliminate the cost of transporting the goods to the market and other logistics that can impact on our operational cost.

We are quite aware that one of the easiest means of penetrating the market and acquiring loads of customers for all our raw milk and other dairy products is to sell them at competitive prices hence we will do all we can to ensure that the prices of our produce are going to be what other dairy farms and even commercial livestock farmers who are into the sale of raw milk would look towards beating.

One thing is certain, the nature of dairy farms business we are involved in makes it possible for farmers to place prices for their raw milk and other dairy products based on their discretion without following the benchmark in the industry. The truth is that it is one of the means of avoiding running into loss. The easier you sell off your raw milk and other dairy products the better for your business.

• Payment Options

The payment policy adopted by Columbus & Sons Dairy Farms, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Columbus & Sons Dairy Farms, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment via mobile money

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our raw milk and other dairy products.

13. Startup Expenditure (Budget)

When it comes to calculating the cost of starting a dairy farm, there are some key factors that should serve as a guide. The capacity of the raw milk to be produced per time and other related dairy products will determines the total cost of setting up the business.

Besides, in setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a dairy farms business; it might differ in other countries due to the value of their money. Below are some of the basic areas we will spend our start – up capital in setting up our dairy farms;

• The Total Fee for incorporating the Business (dairy farm) in United States of America – $750.
• The amount needed to acquire / lease a dairy farm land  – $50,000
• The amount required for preparing the farm land (cattle ranch / dairy farm) – $50,000
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of Columbus & Sons Dairy Farms, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• The total cost for hiring Business Consultant – $2,500.
• The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400
• The amount required for the purchase of the first set of cattle – $10,000
• The cost for acquiring the required working tools and equipment and milking machines et al– $50,000
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The Cost of Launching an official Website – $600
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000

Going by the report from detailed research and feasibility studies conducted, we will need an average of $700,000 to start a standard dairy farms business in the United States of America.

Generating Funding / Startup Capital for Columbus & Sons Dairy Farms, LLC

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as commercial poultry farming.

No doubt raising startup capital for a business might not come cheap, but it is a task that an entrepreneur must go through. Columbus & Sons Dairy Farms, LLC is a family business that is solely owned and financed by Columbus Packer and his immediate family members.

They do not intend to welcome any external business partners, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources. These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $400,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Columbus & Sons Dairy Farms, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to sell our raw milk and other dairy products a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Columbus & Sons Dairy Farms, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of farm land and building of standard dairy farm: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Compilation of our list of products that will be available in our dairy farms: Completed
• Establishing business relationship with vendors – key players and merchant in the industry: In Progress

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Small Goat Dairy Business with Plan

Learn how to start a small goat dairy business to support the farm while producing feta goat cheese using a small goat dairy business plan.

Probably every back-to-the-lander has dreamed about making his or her homestead pay its way. These monetary ruminations tend to crop up at two times: while the would-be entrepreneur is either pouring out pounds of expensive feed to contentedly munching, “freeloading” livestock or climbing into the car, probably before daybreak, to commute to a necessary but unrewarding job in the nearest metropolis.

Well, the fact is that some folks actually have broken that “live on the farm, work in the city” cycle and earn respectable incomes from their small homesteads. For example, Gerald and Suzanne Aiello — owners of Belle Terre Farms in the rolling countryside near Orange, Virginia — have figured out a way to make their herd of 40 Nubian dairy goats pay for the farm’s upkeep, provide capital for additional building and development and furnish an income for the couple and their two daughters. The keystone of this successful homestead business is a cheesemaking program — modeled on similar farm-based operations in Europe — through which the Aiellos turn out a tangy feta cheese from raw goat’s milk. The undertaking has the potential of bringing in a net income of $30,000 or more a year.

Of course, Suzanne and Jerry didn’t just drift into this profitable farm business. Rather, their success is the result of what they half-seriously refer to as their five-year plan: a carefully plotted homestead management program in which the Aiellos’ long-range goals for Belle Terre were meshed — after a good bit of planning and research — with the resources at hand (consisting of a small herd of sleek Nubians and the entire family’s willingness to work).

Brainstorming How to Make Money on a Homestead

Like most owners of small-scale dairy herds, the Aiellos were quick to recognize that the market for milk is diminishing — a trend that started in 1964 and doesn’t seem likely to reverse. (In fact, one dairy journal has estimated that the goat’s milk requirements for the entire state of Virginia could be fulfilled by one 120-doe herd!) So, several years ago, instead of trying to sell their surplus milk, Jerry and Suzanne decided to put it to work on their farm by using the liquid as feed to raise veal and pork for sale.

Unfortunately, both of these ventures proved to be so labor-intensive that the family decided the revenue gained was not worth the time required to bring it in. In the veal-raising enterprize, for example, each milking doe could feed two calves a year. A day-old calf cost $120 and was milk-fed for 60 to 80 days. About 80 percent of the calves were sold privately for about $400 apiece, or $3.50 per dressed pound. The remaining animals were peddled at the livestock market where a calf would all too often sell for not much more than the price Jerry and Suzanne had paid for it in the first place.

Obviously, then, the veal operation’s cash flow was poor — and death losses, which amounted to one or two calves a year, were devastating to the small-scale program.

Some sharp-pencil figuring convinced the Belle Terre owners that, even if they increased their herd size and were able to find enough customers who wanted milk-fed veal, the operation’s gross would still not produce much in the way of net profit. It would be an enormous drain on the family’s time. The swine-raising scheme turned out to be pretty much the same story. (“We found that hogs just weren’t compatible with our lifestyle,” Jerry comments.)

Deciding to Start a Cheesemaking Operating

That’s the situation the Aiellos found themselves facing in 1978: They had 55 acres (more than half of which was nurtured-back-to-health pasture), a carefully bred herd of proven milk producers and a growing dissatisfaction with the notion of raising livestock for slaughter.

About that time, Jerry saw an article in Hoard’s Dairyman that described the University of Minnesota’s Farmstead Cheese Program. Simply stated, this program — which was implemented in 1976 — encouraged owners of small- to medium-sized dairy cow herds to set up farm-based cheesemaking operations (such enterprises have been common in Europe for many years) and sell the products retail. The initial cost of establishing a cheese plant was estimated at a steep $30,000 — but the farmers who made the investment found ready customers for their wares. Moreover, the dairy operators were no longer plagued by the triple problems characteristic of small-scale milk producers: finding a market, storing the milk and arranging for its transportation to a processing plant.

The article jolted Jerry.

“Bells went off in my head,” he recalls. “I figured that there wasn’t any reason the program couldn’t be scaled down to goat-size.”

Upon further investigation, the Aiellos decided they had the raw material to establish their own cheesemaking operation: the Nubians, a 17-by-35-foot cinder-block building (then used as a goat barn) that could be turned into the “factory” and a firm conviction that it would be possible to whittle the capital costs down to a manageable sum.

Rules and Regulations of Making Cheese

Jerry’s first job was to find out what steps were required for the operation to comply with Virginia Department of Agriculture dairy regulations.

“The agriculture folks were fantastic,” Jerry said. “They assigned a dairy inspector to work with us and that man realized, from the outset, that we weren’t going to be a large-scale dairy plant. We were just a small operation on a family farm.”

The inspector adapted and interpreted some of the existing regulations to fit Belle Terre’s circumstances. Further along in the project, he even helped the Aiellos design the facility and track down equipment for it. Encouraged by the agriculture department’s receptive attitude, Jerry then tackled his next big task: building a barn to house the goats that were to be evicted from the cheese plant-to-be.

In August of 1978 Jerry started to construct a 50-by-80-foot goat barn. His plan — which included provisions for hay and grain storage, pens for kidding and weaning, feeding troughs and a large lounging area — was designed to allow one-person construction. Two storage sheds, placed at opposing ends of the barn, support a free-span trussed roof. The result is a handsome, functional 125-goat structure built at a materials cost of $7,000.

Once the goats were moved into their new shelter, Jerry was free to begin turning the cinder-block shell into a cheese factory. First, the dirt floor was dug out, drains were set and a concrete slab was poured. Then, to comply with regulations requiring all aspects of the cheesemaking operation to be physically separated (even though the compartments could be under the same roof), Jerry partitioned the building — using six-inch concrete blocks — making a four-station milking parlor, a milk storage room, a cheesemake room and a receiving vestibule.

The vestibule was designed to satisfy the requirement that, in the event the Aiellos someday decide to buy additional milk for cheesemaking, they have a separate room to receive the “imported” liquid. Furthermore, the regulations also specified that none of the rooms in the actual factory could open into each other. As a result, the 10-foot vestibule contains four doors.

“It looks a little weird,” Jerry admits, “but we comply with the rules.”

In addition to keeping the costs down by doing his own construction, Jerry was able to save money by making some wise buys on used equipment. A 150-gallon refrigerated milk storage container was bought, used, from a small dairy for $250 (it would have cost $2,500 new). The double-walled stainless steel cheesemaking vat is actually a second refrigerated storage tank, purchased for $150. Jerry resourcefully replumbed the unit and installed a 5,500-watt element to heat the water that’s circulated between the vat’s walls.

Milk is transferred from the storage area to the cheesemaking room by means of a circulating pump (it was bought used, too) and Tygon tubing (purchased new, at an excruciating $5.00 a foot). In compliance with dairy regulations, the wall opening through which the tubing is inserted can be capped, so the milk storage and cheesemaking rooms are fully separated.

After checking into the cost of new coolers in which to age the cheese (the best deal was $5,000 for an unassembled unit), the Aiellos purchased the body of a refrigerated truck for $700 and paid a mechanic another $100 to set the “box” in working order. Stainless steel sinks, a water heater, drain lines, epoxy paint and wall coverings and other necessities were bought after judicious comparison shopping. In all, the total cost of remodeling and equipping the cinder-block building for cheesemaking came to around $10,000.

How a Dairy Goat Cheesemaking Business Works

The future cheese magnate of Orange, Virginia (with the assistance of his wife, and daughters Amy and Jessica) hand-milks 20 does a day, a chore that requires 1-1/2 hours each morning and evening. The dairy product — collected in stainless steel pails — is poured into the refrigerated storage tank. When the tank is full (at least once a week), Jerry pumps all the milk through the tubing into the cheesemaking room’s vat. He heats it to the desired temperature, adds the rennet and cultures, cuts the curd with special stainless steel knives and drains off the whey. Then, all the Aiellos pitch in and pack the feta into pint-size glass jars, affix attractive blue-and-red “Belle Terre Farmhouse Cheese” labels (which they designed themselves) and store the containers in the cooler for the 60-day aging required by law. The entire process yields about 200 jars per cheese run of crumbly, tangy white feta.

The decision to make feta — rather than another type of cheese — was not lightly arrived at. From the beginning, the Aiellos were determined to use raw goat’s milk.

“We’d originally hoped to produce Gouda,” Jerry said. “But then Suzanne came up with the idea of feta, which is traditionally made in Greece from sheep or goat’s milk.”

Feta turned out to be a good choice because it doesn’t require the expensive cheese press and additional labor (brining, turning, paraffining and so forth) that Gouda needs.

“The feta is a one-day cheese,” Jerry points out. “When we finish packaging it and put it in the cooler, we don’t have to look at it again until we deliver it two months later.”

Small Goat Dairy Business Bottom Line

Since they were unwilling to invest the time required to staff a farm-based retail store, Jerry and Suzanne decided to sell their feta through a wholesaler. For each pint jar, they receive $2.50 or roughly 50¢ for the jar and label and $2.00 for the labor, utilities and other expenses related to producing the milk. Jerry figures that Belle Terre’s feta wholesales for about $2.66 a pound. Therefore, because approximately five pounds of milk will yield one pound of feta, the Aiellos receive about 53¢ per pound for the milk produced by their Nubians (or roughly double the amount the raw liquid might sell for).

After their 60 days of aging, the cheese-filled jars are packed 12 to a case and delivered to a wholesale food broker in Richmond, Virginia. The feta is then shipped to grocery chains for retail sale.

By manufacturing a relatively low-laborcheese , Jerry and Suzanne have been able to minimize production costs. This fact makes it possible for them to wholesale the product at a figure that allows the stores to add their usual markup and still put the feta on supermarket shelves at a price competitive with that of most commercial cow’s milk cheese.

The Aiellos believe that once the Belle Terre operation is in full swing, the feta should net about $3,000 a month, which translates to about $1,000 of annual income per doe. (In contrast, during the veal-raising venture, the Aiellos earned about $300 per milking doe each year.)

A Profitable Small Goat Dairy Business

Careful herd management is an integral part of Belle Terre’s five-year plan. From a foundation of seven registered Nubians, the Aiellos have built up a milking “core” of 20 does. They hope to increase the total to 25 during 1982 and to 30 — the maximum practical number that they can hand-milk — by 1983.

The breeding program is arranged to allow a 305-day annual lactation period during which each doe produces an average of 2,000 pounds of 5 percent butterfat milk. This schedule permits the family to take a break from cheesemaking during December and January (and gives the animals a rest, as well).

Does are bred beginning in September and most of the kids are born from mid-February to mid-April. During the past few years, the couple has carefully upgraded the herd by purchasing quality bucks from the West Coast (they have four now) and they’ve achieved an average of just under three kids per doe during each breeding season.

In 1981, about 60 registered Nubian kids were born. Of these, 15 young does were selected — on the basis of their conformation and milk-producing potential — to be added to the Belle Terre herd. Another 20 or so does were sold for between $250 and $300 apiece.

Of the 20 or 25 buck kids born, seven or eight quality animals, expected to become good breeding stock, were sold for between $300 and $400 each. The other bucks were auctioned at the livestock market (at a loss) for about $25 apiece. Jerry and Suzanne try to market their kids before the animals reach two months of age, in order to avoid running up prohibitive feed and shipping costs.

The Aiellos estimate that each doe brings in $500 each year from kid sales — an amount that just about equals her upkeep!

You can see, then, that the sale of registered stock is an important part of Belle Terre’s income . . . and the Aiellos anticipate grossing as much as $15,000 annually from this facet of their enterprize over the next few years. They emphasize that any homesteader who’s seriously thinking about starting a goat herd should purchase registered animals with an eye toward future income from the sale of offspring.

The Future of Dairy Farming

As mentioned before, Jerry and Suzanne designed their cheese plant to comply with the regulations concerning purchased milk in case they decide to expand their operation and need more raw material than their herd can supply. If the feta sells as well as anticipated, they plan to start buying additional milk in 1982.

The Aiellos are already licensed to buy milk, and — during August 1981, when a MOTHER EARTH NEWS staffer talked with them — they expected to base the price they’ll pay for raw goat’s milk on the liquid’s butterfat content. (The butterfat percentage is a fairly good indicator of the milk’s protein content, and hence of cheese yield.) Jerry estimates a cost of perhaps 25¢ a pound for 5 percent butterfat goat’s milk.

Although it’s likely that many small-scale goat owners would choose to sell milk to Belle Terre rather than invest in their own cheesemaking facilities, the Aiellos would like to see more homesteaders making farm cheese. According to their calculations, it would require a herd of about 20 does to reach the break-even point. At the other end of the spectrum, 30 seems to be the maximum number of does that a family-sized operation can manage without bringing in additional help.

The idea of competition doesn’t bother the Aiellos at all.

“On the contrary, I think it’d be great if four or five farms in Virginia were to start making different varieties of goat’s milk cheese, perhaps under one label, so that there would be an entire product line,” Jerry asserts. “It would help the state’s goat industry immensely.”

If such a venture came to pass, it could lead to cooperative advertising and marketing — both of which can be quite expensive for a single homestead operation.

How to Make a Homestead Business Profitable

At this point, small-farm owners who’ve tried fruitlessly to start homestead businesses are likely wondering exactly why Belle Terre is having the success that’s eluded other enterprises. There seem to be several very good reasons.

“We had a plan for each year and learned what we needed to know before we did anything, Jerry says. “Second, we had no outside labor costs. Third, Suzanne, who is a physical therapist, has continued to work while I ran the farm … her income financed the venture and we could eat. Fourth, we took a business-like approach by establishing our cheesemaking operation to conform with dairy regulations and that helped us gain the support of our banker.”

Finally, the Aiellos aren’t afraid to look into the future and see where they want to be — or to invest time and energy researching their goals. Their five-year plan just may be the key to finding success on 55 rolling acres in Virginia.

Originally titled “A Goat’s Milk Cheesemaking Business” in the January/February 1982 issue of MOTHER EARTH NEWS.

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‘Ridiculous’: Dairy brand power bill surge spells concern for Australian businesses

Sky News host Caleb Bond discusses the power bill rise “reality” for businesses as fruit and dairy business ‘Nippy’s’ monthly power bill doubles following a plan change in a power crisis.

“This is the reality for business … can you imagine if you were a small business and you have taken every measure you possibly can, the solar panels, etcetera to try to cut your costs and your power deal changes and overnight your power costs double,” Mr Bond said.

“It would be impossible for so many businesses to stay afloat it is just ridiculous.”