Dairy farming in gujarat

In this presentation I have mentioned all the opportunities in starting a dairy farm in Gujarat

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Introduction

Dairy farming is a class of agricultural, or an animal husbandry, enterprise, for long-term
production of milk, usually from dairy cows but also from goats, sheep and camels, which
may be either processed on-site or transported to a dairy factory for processing and eventual
retail sale. Most dairy farms sell the male calves born by their cows, usually for veal
production, or breeding depending on quality of the bull calf, rather than raising non-milk-
producing stock. Many dairy farms also grow their own feed, typically including corn, and
hay. This is fed directly to the cows, or is stored as silage for use during the winter season.
A profitable dairy farming needs a complete study about Dairy farming Information and in-
depth knowledge. Dairy farming can be an excellent opportunity for self-employment of
unemployed youth. It is a good source of income generation for small/marginal farmers and
agricultural laborers. As we know India is one of the largest milk producers in the world, and
the demand for milk and milk products is increasing rapidly. So, there is an immense scope of
dairy farming in India. The increasing cost of feed ingredients and its seasonal variability can
balance by undertaking fodder cultivation.

Developing circumstance
Dairy is right now the top-positioning product in India, with the estimation of yield in 2004 at
1.179 billion rupees (US$39 million), which is practically equivalent to the consolidated yield
estimation of rice and wheat. Regardless of the significance of the dairy part in by and large
GDP, it gets less government planning than the horticulture area. Further, there has been no
moved interest in the improvement of significant worth included or creative items, nor any
genuine exertion to help and modernize the casual area.

Considering the expanding request driven by the developing populace, higher salaries and
more wellbeing awareness, the stoppage in dairy industry development is seriously troubling.
In view of evaluations by the National Dairy Development Board (NDDB), the interest for
milk is probably going to arrive at 180 million tons by 2022. To supply the market, a normal
steady increment of 5 million tons for each annum throughout the following 15 years is
required – a multiplying of the normal gradual rate accomplished in the course of recent
years. Without adequate expanded creation, India should depend on the world market for
imports. Also, as a result of the gigantic volume required, it will influence worldwide milk
costs. Hence, concentrating on regions for nearby dairy improvement is basic.

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Market structure
Until 2002, cooperatives traditionally were the dominant players in the formal sector. With
liberalization of the dairy industry, private investment has increased quite significantly.
However, the organized sector’s share in milk procurement is very low because a large
proportion of the milk and milk products are sold through the informal channel. The informal
demand absorbs approximately 41 percent of the milk and milk products produced in the
country, accounting for about 75 percent of the marketable surplus of milk. The formal
channel, with its packaged milk and dairy products, accounts for only about 25 percent of the
marketable surplus, which is about 15 percent of production.

Market Structure
Performance Still large share of produce; 85% of marketable surplus
goes through informal channel
Quality of milk through informal channel is an issue and
to some extent in formal channel as well
Competitive structure Little competition to cooperatives because private
sector was not allowed in the sector until recently
Entry of supermarkets in retailing of milk is increasing
the competitive structure
Governance (value chain type) Governance of cooperative structures is constaining
efficiency and expansion
Role of "lead" or organizing firms Role of lead agency has been hampered by government
interference in cooperatives
Farmer organization Immense scope for improving management and
governance through farmer organizations
Marketing chain capacity and
efficiency
Scope for enhancing efficiency of distribution
Distribution channels Cooperatives have a well-developed distribution channel
in urban areas
How market signals are conveyed
or distorted
Government and political interference in price setting,
limits prices being determined by market forces.

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Flow of milk through different channels
Share of
marketable
surplus
% of production
Total production
(million tonnes)
Use

45% 45 Home consumption
55% 55
Marketable surplus sold in urban and
rural markets (informal and formal)
34.5% 19% 19
Sold in urban markets as loose
unpackaged milk
40% 22% 22
Sold as processed products through
informal markets
14.5% 8% 8
Sold as packaged milk through formal
markets
12.7 % 7 % 7
Sold as packaged milk products
through formal markets

Factor conditions
Factor conditions for dairying involve the nature of creatures, HR and specialized aptitudes,
land accessibility, capital, credit, foundation and different sources of info applicable to the
worth chain, as the accompanying clarifies.
The nature of creatures is basic in deciding its milk efficiency and subsequently by and large
generation. Presently, low profitability per creature blocks advancement of the dairy area. In
spite of being the world's biggest milk maker, India's efficiency per creature is extremely low,
at 987 kg for every lactation, contrasted and the worldwide normal of 2 038 kg for each
lactation.
The low profitability is a consequence of insufficient steers and bison rearing projects,
constrained augmentation and the executives on dairy venture improvement, customary
encouraging practices that are not founded on logical nourishing strategies, and restricted
accessibility and reasonableness of value feed and grub. What's more, the constrained
stockpile of value creatures is exacerbated by approaches restricting interstate development
of creatures. Indigenous steers and wild ox make up 45 percent of the nation's all out mulch
populace, rather than the cross-reproduced dairy animals at 10 percent.
Creature wellbeing and rearing administrations arrangement, veterinary foundation
advancement and inoculations are the duty of the state government. These administrations
have generally been accommodated free or at a sponsored rate. In the previous barely any
years, there has been expanding mindfulness that the state pays intensely to offer these

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administrations, which are effectively accessible to ranchers (Ahuja et al.). Thus, numerous
states have founded incomplete or full-cost recuperation charges for offering the types of
assistance.

Factor conditions
Herd:
Herd inventory Very large number of indigenous animals with low
productivity and a small portion of cross-breeds
Breed Lack of policy focus on strengthening indigenous breeds
Very poor awareness of quality feed, which hinders
productivity
Feed Farmers not interested in quality feed because of the low
price of milk
Increasing feed costs
Veterinary medicine Availability is not an issue
Veterinary medicine costs Duplicate or cheap medicines
Human capacity:
Farmer technical capacity Knowledge and new techniques are not accessible
Support services technical
capacity
Accessibility to good quality veterinary services is an issue
in many parts of the country
Organization and managerial
capacity
Organizational and managerial capacity of farmer
cooperatives is very poor
Entrepreneurial capacity Entrepreneurial capacity is hindered by a low capacity to
take risks
Credit or finance market
Formal credit mechanisms Access to formal credit mechanisms is very poor
Informal credit mechanisms Accessible but at very high interest
External economies
Transmission of learning Very poor extension support services, leading to very poor
knowledge transfer
Social capital and trust Strong social capital and trust in the villages, which can
sustain dairy farmer organizations if properly managed

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Business Model

 Dairy Farming
 Production Unit, Halol Gujarat

In Gujarat, Dairy industry is well-established at present and is taken as a model for other
states of the country. The dairy sector in the state is given a key importance as it is a business
that helps generate the best alternative source of income and employment for poor, rural
farmers. Milch animal-holders feed and nourish dairy animals with crop residuals
and agriculture by-products that are available with them. And many districts of the Gujarat
are experiencing shortage of fodder and feed due to negligible and
inadequate irrigation facilities in those regions even today. The growth of dairy development
in Gujarat was very fast due to assured market, and there are reasonably good prices for milk
supplied to the dairy and easy access for all to health care services offered by the co-operative
dairy sector. The State Government policy is supporting dairy industry development through
co-operative sector.
Dairy farming Business in Gujarat is one of the safe business for the following reasons:
 Dairy farm is an eco-friendly project and does not cause environmental pollution when
compared to other industries.
 Dairy farm doesn’t require skilled labor.
 There will a good market for Dairy product round the year.
 A dairy farm doesn’t need huge investment on inventory.
 Dairy farm can be shifted to one place to another, if need arises e.g. Fire, Floods etc.
 There is insurance coverage for dairy animals.
 A dairy farm doesn’t need more energy. We can build a Biogas plant, which can be fed with
cow dung can supply maximum energy to meet farms day to day requirement.

Starting Dairy Farming – How to begin with:
One needs to decide first on the aims and objective of the farm. Every year there should be a
progressive aim for breeding (including number of animals to be maintained) and production.
You can visit dairy farms that run on commercial basis and have a discussion with
experienced farm owners. You need not have to rely much on others experience, analyze
every event logically and if needed consult with local Veterinarians for more information.
If you plan to manage the farm on your own, look for opportunities to work for an existing
farm for a minimum period of six months.
Develop interest and study feed and fodder’s market in your region, its difficulties in relation
to seasons.
Manage a good team of labourers. You need to choose hardworking reliable persons
preferably with some experience. You can also train them for specific jobs.

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Visit the cattle market occasionally. Observe animals on sale and talk with persons engaged
with purchasing of animals.

Loans for Dairy Farming in Gujarat:
SBI is offering two bank loan schemes for Dairy related agricultural projects. The first one is
-SBI Scheme For Dairy Societies- that provides finance for creating infrastructure like
Construction of Milk house or Society office, Purchase of Automatic milk collection system,
transport vehicles, Bulk chilling unit; and the second one is SBI Dairy Plus Agriculture loan
scheme that provides finance for milk producing societies recognized private milk dairies
posting profits in the past two years.
SBI DAIRY PLUS AGRICULTURE LOAN SCHEME : gives loans from 50000 to 5 Lakhs
SBI DAIRY SCHEME FOR Dairy Societies: LIMIT OF LOAN FOR DAIRY
SOCIETIES: Milk house or society office Rs. 2 lakh, Automatic milk collection system Rs. 1
lakh, Milk transportation Rs. 3 lakh, Chilling Unit Rs. 4 lakhs.

Subsidies for Diary Farming by Gujarat Government:
Scheme for subsidy on interest for starting a Commercial Dairy Farm with 1 to 20 milch
animals.
Dairy farming is an important source of constant subsidiary income. The small and poor
farmers can purchase 1 to 20 animals as per their need and capacity to maintain. If any bank
recognized by Indian Reserve Bank sanction loan for any dairy animal cow & buffalo, the
beneficiary can get interest subsidy @ 12 % interest on the bank loan amount (as per unit cost
of NABARD guidelines). It also provides a good quality organic manure for improving. Crop
fertility & crop yields. Dung is also used as fuel for domestic purposes. The surplus fodder of
agricultural by products is utilized by animals & converted into value-add products viz. Milk,
Meat etc.
NABARD Dairy Farming Subsidy Schemes:
Type1:For establishment of small dairy units with crossbred cows/ indigenous descript milch
cows like Sahiwal, Red Sindhi, Gir, Rathi etc / graded buffaloes up to 10 to 15 animals.
Investment: the investment will be Rs 5.00 lakh for 10 animal units – minimum unit size is 2
animals with an upper limit of 10 animals.
Subsidy: 25% of the investment (33 .33 % for SC / ST farmers,).The Subsidy shall be
restricted depending on the unit size.
Type2: Rearing of heifer calves – cross bred, indigenous descript milch breeds of cattle and
of graded buffaloes – upto 20 calves.
Investment: Rs 4.80 lakh for 20 calf unit – minimum unit size of 5 calves with an upper limit
of 20 calves.
Subsidy: 25% of the investment (33.33 % for SC / ST farmers. The Subsidy shall be
restricted depending on the unit size.

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Type3: Vericompost (with milch animal unit.To be considered with milch animals and not
separately).
Investment: Rs. 20,000/-
Subsidy: 25% of the investment (33.33 % for SC / ST farmers).
Type4: Purchase of milking machines /milkotesters/bulk milk cooling units (upto 2000 lit
capacity).
Investment: Rs 18 lakh.
Subsidy: 25% of the investment (33.33 % for SC / ST farmers).
Type5: Purchase of dairy processing equipment for manufacture of indigenous milk products.
Investment: Rs 12 lakh.
Subsidy: 25% of the investment (33.33 % for SC / ST farmers).
Type6: Establishment of dairy product transportation facilities and cold chain.
Investment: Rs 24 lakh.
Subsidy: 25% of the investment (33.33 % for SC / ST farmers).
Type7: Cold storage facilities for milk and milk products.
Investment: Rs 30 lakh.
Subsidy: 25% of the investment (33.33 % for SC / ST farmers) .
Type8: Dairy marketing outlet / Dairy parlour.
Investment: Rs 56,000/-
Subsidy: 25% of the investment (33.33 % for SC / ST farmers) .

Reasons To Invest
The Indian dairy market is amongst the largest and fastest growing markets in the world.
Growing private sector investment in dairy farming, supply chain, processing facilities and
backward integration is providing further impetus to India’s dairy industry. Read on to know
why it is profitable to invest in Dairy Franchise.
 Rising Demand
Demand for dairy products in India is likely to grow significantly in the coming years, driven
by more consumers, higher incomes and greater interest in nutrition. The demand for quality
dairy products is rising and production is also rising in many developing countries.
Consumption of processed and packaged dairy products is increasing in urban areas. Because
of the increasing competition from the private sector, several national and international
brands have entered the market and expanded consumers’ expectation of quality.

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 Health and wellness
Consumer demand for healthy products is growing and this is being reflected in spending
patterns. According to a recent study, 74% of consumers pay close attention to the nutritional
content of the foods they purchase. Today’s people are willing to pay up to 10 per cent more
for a healthy version of a product. The dairy sector is well positioned to capitalise on this
trend, due to the increasing use of protein for satiety, training and weight management.
Furthermore, there is a growing demand for ‘functional foods’ which carry specific health
benefits. Dairy is playing a key role in this sector, through products such as probiotic
yoghurts and cholesterol-lowering butters.
 Amul’s Success Story
Amul’s success had a huge impact on Indian Dairy Industry. Amul is now making way for
entrepreneurs by offering franchisees without any royalty or revenue share. The interested
person would, however, have to invest something in between Rs 1.5 lakh to Rs 6 lakh for
setting up of the shop. The owner can make from Rs 5 lakh to Rs 10 lakh per month through
these franchisees. This will not only provide thriving business opportunities for aspiring
entrepreneurs but will also boost up the Indian Dairy Sector.

Conclusion of Dairy Farming In Gujarat
Despite of scarcity of water in Gujarat, the development of the dairy industry as compared to
other states of India is better. Moreover, the Amul dairy, renowned in Asia is from Gujarat.
Animal keepers of Gujarat are illiterate, poor and inexperienced; however, they are very
deeply involved in this profession, though this occupation has some problems if intense
efforts are made to eliminate these problems, the farmer of Gujarat could become prosperous
and self-esteemed and could accomplish respectful position in the whole world. At present,
still, the dairy industry is entirely owned by cooperative sector. If, any private sector enters
into competition against this, a competitive atmosphere would be created and reduced
production cost of dairy products could create a boom in demand of these products. On the
other hand, the milk producer of Gujarat could get better benefit from the competition, which
is like engine for the development of the industry.

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Our Business

1.DETAILS OF ACTIVITIES

 Procurement of Tech. know how/ transfer of technology.
 Market survey, tie ups
 Selection of site – Halol, Gujarat
 Preparation of project report
 Registration and financing
 Placement of orders for machinery and receipt of machines.
 Recruitment of staff and training.
 Alteration in rental premises.
 Electrification and commissioning Trial production.


2. LEGAL OBLIGATIONS
 FSSAI license registration
 MSME Registration
 Obtaining PAN and CIN of the new company after performing due diligence
 Open bank account with these 2 documents.
 Apply for GSTN on the GST portal.
 Register AD (Authorized Dealer).

3. QUALITY CONTROL AND STADARD:
You may like to follow various standards suggested by BIS (BUREAU OF INDIAN
STANDARDS) in connection with dairy farm.
BIS IS 11799:1986 (R2002): Recommendations for Cattle Housing In Rural Areas
BIS IS 11942:1986 (R2002): Recommendations for Gaushalas and Other Organized Milk
Producers
BIS IS 12237:1987 (Reaffirmed 2004): Recommendations for loose housing system for
animals.

4. POLLUTION CONTROL:
This process is pollution free, however NOC from the Pollution Department may be obtained.

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5. FINANCIAL ASPECTS.
 Fixed Capital
 Land & Building
 Land 17500 Sq. feet
 Office Building, Stores etc.
 Workshop shed 200 sq. meters.

6. PRODUCTION CAPACITY (per annum):
Quantity: 4.2 lac litres


Factors that influence the Dairy Farming in Gujarat:

It is very difficult for any industry to achieve the peak of development and production,
because they have to encounter many problems before reaching there. These problems
depend on two factors: (1) Natural factors and (2) Psychological factors. The problems
created by psychological factors could be as under:
 Shortage of Milch Animals of Better Breed:
Every farmer of Gujarat keeps milch animals for milk production for own use. But both, male
and female animals are of inferior breed quality. However, at present in the research
laboratory of dairy industries, an artificially cultured cells are produced from high quality
males, but, most of the farmers of orthodox ideology are not ready to accept these new-
cultured seeds.
 Lack of Protein and Fat Rich Food:
The Majority of the farmers of Gujarat live below the poverty line. Because of this, farmers
are not getting enough quantity of protein-reach food for their own family consumption, the
female animals before and after delivery do not get ample protein and fat reach food which
results in to decrease in production of milk and fat in the milk. Ultimately, farmers are at a
loss.
 Scarcity of Green Fodder:
Green fodder is the main food of animals. But, due to the scarcity of water, shortage of
irrigation resources, high prices of good quality seeds in Gujarat, the green fodder is not
being grown in ample quantity for the animals. As a result, during the summer
and winter animals have to depend only on dry fodder. Consequently, decrease in per-animal
milk productivity leads to decrease of total milk production of entire Gujarat. Hence, people
have to face an increase in milk and milk product prices.
 Absence of Sheds for Milch Animals:

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Clean and convenient sheds give mental peace to the animals. Also, sheds protect against
heat, cold and rain. This has a direct effect on productivity and quality of the milk. This
profession has developed in rural areas where people don’t have enough capital to construct
permanent sheds because of which milch and pregnant animals are badly affected during
summer. Due to excess heat the fat in the milk decreases hence farmers get low price of the
milk. Also, because of these milch animals being kept in open, during monsoon they become
victim of different diseases from poisonous insect and mosquito bites.
 Shortage of Veterinary Facilities in Rural Area:
There is a shortage of veterinary doctors in Gujarat from the beginning. Hence, the veterinary
services could not be made available to the every smallest village possible. As a result,
instances like non-availability of artificial insemination treatment after reproduction period,
not getting timely protection against diseases, absence of service of the doctor at the time of
delivery resulting in death of females or kid have increased.
 Poor Animal Keepers:
It is everybody’s dream to set-up and develops a business. But, capital, the driving force for it
disappoints farmers. In the absence of necessary capital, animal keepers could not develop in
the areas like enough nutritious food, veterinary treatment, shed facilities for animals and
milk preservation. The direct effect of this is seen on the dairy industry.

Limitations and Constraints of Dairy Farming in Gujarat:
 Breeding of animals and getting expected milk yield is a biological phenomenon, which is
influenced by many factors.
 Dairy farming along with planning requires hardworking, reliable and alert manager. In many
farms, usually persons from the family take the responsibility.
 Improper management of feeding heard health and poor-quality control in various stages of
production can cause major loss affecting the profitability of the entire venture.