The dairy industry in India is growing at a rapid rate. It has grown at the rate of 6.4 percent in the last 4-5 years. And with increasing per capita consumption, high population, and rising health consciousness among the masses, its growth shows no sign of slowing down any time soon. This is why a good number of people have started taking interest in the dairy business. How much profit does a dairy farmer make in India? This question has been asked by many aspiring dairy farmers.
To answer this question, We spoke to 5 dairy farmers to know how the profit in dairy farming in India looks like. Here are our findings:
The average selling price
The price of milk charged by different dairy farms varies between Rs.58 – Rs.60 for one liter. This includes the input cost of fodder, cattle management, electricity and water supply, etc.
We also came across farmers who charge a premium using marketing and strict quality control. There are better prospects for farmers aiming to convert conventional farming into an enterprise.
Income from a dairy farm
The income from a dairy farm depends on a variety of factors. If we try to estimate the income, this is how the figures look like- One liter of milk is sold at around Rs.60 in urban areas. With one cow giving at least 15 liters of milk in a day, revenue from the sale of milk of one cow comes around Rs.900. Deducting the expense of the cattle feed, which is approximately Rs.130/day for a cow, the approximate profit earned per cattle for a day is Rs.770. These are rough estimates that are being calculated taking into account just two factors- the selling price of milk, and expenditure on cattle feed. There are various other expenses that include deworming of the cattle, insemination, water, and electricity among others. The income stream is also not just restricted to the sale of milk only. There are also some other components in the dairy farming business that can be monetized.
Monetize by-products to increase profit
While milk and other dairy products will account for the primary products for a dairy farm. There are also farmers who sell the by-products of their dairy farms. These can be sold in the market to add to your income. The by-products include-
- Cow dung: Cow dung that can be dried and sold as cow dung manure. You can use dung drying machines to dry the cow dung and sell the organic manure in the market.
- Cow dung slurry: This slurry is a mixture of cow urine, cow dung, and water. You can use the water from the cowshed that is collected after bathing the cows. This mixture can easily be sold in the market. The slurry can be used as natural manure, biofertilizer, or even as a biopesticide.
- Gonandajala (obtained from a dead cow): Gonandajala is a fluid that can be formed by a cow’s corpse. This fluid has a high amount of nutrients that can be mixed in water and used as an organic fertilizer. This fertilizer is found to boost soil productivity.
- Cow Urine: Cow urine is in great demand with the rise of organic farming practices in the country. We came across a few dairy farmers based in Jaipur and Gujarat who have created an additional income stream by selling cow urine. Many organic farmers use cow urine as an alternative to chemical pesticides. People also use the urine of desi cows in various rituals.
Tips to cut the total cost
The dairy farming business can be highly profitable if the costs are managed effectively. The major running cost in the dairy farming business is the cost of cattle feed. Farmers can choose to cultivate fodder for the cattle on one part of their land. With cow dung manure and fertilizer already available, cultivating green fodder does not add much to the total cost. The cow dung that is available in abundance, can also be used as biogas. You can build your small biogas plant which can fulfill the energy requirement of the entire farm. Thus cutting the overall cost of running the farm. You can learn more about different aspects of the dairy farming business by connecting to the dairy farmers in your city here.
In this article, we have tried to break down the income one can earn from a dairy farm. However, the profits are suggestive and each dairy farm has different costs and their income also varies with the location.