Dairy Farming in India: How to Start & Business Guide for Beginners

Commercial and small scale dairy farming in India is no doubt playing an important role in the total milk production and economy of our country. And almost all regions of India are suitable for setting up dairy farming business.

Most of the dairy farmers in India are raising animals in small scale scale traditional methods. They are not aware about the modern farming methods and improved techniques for dairy farming.

As a result, some farmers are loosing their investment instead of being benefited. Proper business plan, well management and care can ensure maximum production and profit from dairy farming business. We have described here the importance, setting up steps and some problems of dairy farming in India.

Why Dairy Farming in India?

There are many benefits of starting dairy farming business in India. Here I am describing the main importance and benefits of dairy farming in India.

  • Dairy farming business is a traditional business. So, you don’t have to worry about marketing your products. You can easily sell your products in almost every place of India. And dairy product market is active round the year.
  • Dairy farming is eco-friendly and it doesn’t pollute the environment.
  • Dairy farming business doesn’t required highly skilled labor. You can easily setup small scale dairy farm with your family labor.
  • Great business opportunities for unemployed educated young people. Proper plan and management can ensure maximum production.
  • Numerous highly productive native Indian and foreign breeds are suitable for farming according to the climate and environment of India.
  • You can apply for loan in your local NGO or banks.dairy farming, dairy farming business, commercial dairy farming, commercial dairy farming business, dairy farming business in India, commercial dairy farming in India, dairy farming business plan, dairy farming in India information

How to Start Dairy Farm in India?

Setting up dairy farming business in India is not so easy. You have to go through several important steps for setting up dairy farming in India. Consider the following tips while starting dairy farming business in India.

  • First of all, you have to decide the aim and objective of your farm (includes housing, feeding, breeding, number of animals to be maintained etc.
  • Try to visit some commercial dairy farms. Discuss with the experienced farm owners about his dairy farming system and secrets. Try to visit as much farms as possible. This will help you to analyze various farming systems and extremely broaden your knowledge.
  • While visiting various farms, try to analyze their every event deeply.
  • Visit your nearest veterinarians and discuss about the possibilities of dairy farming in your area.
  • If your plan is to maintain the farm by your own, then try to work for an existing farm for at least six months.
  • Be conscious about the availability of food and its costs. You also have to stock food for adverse seasons.
  • You have to employ hardworking labor with some practical experience. In some cases you can also train them for specific dairy farm jobs.
  • Visit your nearest market occasionally and observe the price and demand of live animals and dairy products. Keeping good relation with market help you for getting proper value of your products and purchasing necessary commodities.
  • And lastly, try to learn more and more about dairy farming in India. Read a lots of books, visit numerous farms, gather experience, make proper business plan and finally do it.


There are numerous native Indian and highly productive foreign breeds available. You can choose any of them. You can raise both cows and buffaloes together in separate rows under same shed. Cow’s milk is lower in fat than buffaloes milk. Visit the market and try to understand which product has high demand.

For profitable commercial dairy production Murrah, Surti, Mehasani, Jaffrabadi, Badhawari etc. are common and popular buffalo milch breeds. Gir, Sahiwal, Red Sindhi, Tharparkar are popular cow breed. You can also go with highly productive foreign breeds like Holstein Friesian, Brown Swiss, Jersey etc. All those breeds are suitable for farming in the Indian weather. Always keep in mind the market while choosing breeds for your dairy farming business.


Good housing play an important role for keeping the animal healthy, diseases free and productive. For proper production you should give your animal required space inside the house. Generally 40 square feet inside shed and 80 square feet open space is required per animal.

In small scale production for 20 animals, you have to ensure availability of 3000 square feet land area. For medium scale producers with 100 animals, 13,000 to 15,000 square feet space is required. However, ensure availability of all types of essential facilities in the house. Essential facilities includes proper ventilation, sufficient flow of fresh and clean air, sufficient space etc.


Feeding good and high quality nutritious foods ensure proper growth and good health of the animals. So, always try to feed them sufficient amount of nutritious food. Try to add as much green food as possible with their regular food. Because, green food helps the animal to produce more milk and helps the producer to reduce feeding costs.

If possible, try to make a grazing place for your animals. Along with nutritious foods, always provide them sufficient amount of clean and fresh water. Dairy animals need more water than other animals. Generally, a milk producing animal need five liters of water for producing one liter milk. So, always serve them sufficient amount of clean and fresh water.
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Care & Management

Taking good care is the key to every livestock farming business. So, you also have to take good care of your animals. Try to keep the animals free from all types of cattle diseases. Vaccinate them timely. Provide them nutritious food and clean water regularly. Make a stock of necessary medicines and other materials.


Marketing your products is not a problem in India. Dairy product has huge demand throughout the India. You can easily sell your products in almost every places of our country. So, don’t worry about marketing, just take good care of your animals.

Problems of Dairy Farming in India

Every business has some problems or difficulties. Dairy cow farming also has some problems. The main limitations and constraints of dairy farming in India are listed below.

  • High infrastructure and feeding cost is the main constraint of dairy farming business.
  • Most of the farmers don’t serious about the total expenditure and profit from this business. The don’t count the value of green food which they grow with their crop.
  • Breeding process of animal depends on various factors. It is a biological phenomenon and getting expected milk production depends on proper breeding process. But most of our farmers are not conscious about this due to lack of proper publicity and public announcement by the government.
  • In accordance with making good business plan, dairy farming requires hardworking, proper care, good management and you have to be alert always. In our country, one of the family member take care of the animals. But for commercial purpose, you have to employ several experienced people with high salary.

Every business go with some additional advantages and problems. On an average, commercial dairy farming in India is profitable. If you want to start this business, try to learn more about it and visit as much farms as possible.

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