Dairy Farming Business Guide For Beginners

Before discussing more about dairy farming business, let us explain what is actually dairy farming. Dairy farming is actually a class of agriculture for long term milk production. And the milk is processed for eventual sale of a dairy product.

Depending on the size of your farm, the milk can be processed either on the farm or at a dairy plant.

Although, any mammal can produce milk, but commercial dairy farms are generally one-species enterprises. Today dairy farms generally consist of highly milk producing dairy cows in the developed countries.

Along with cows, other species used in commercial dairy farms include buffaloes, goats, sheep and camels. In some countries such as in Italy, donkey dairies are growing in popularity to produce an alternative milk source for human infants.[1]

Cattle were domesticated as early as 12,000 years ago as a food source. The earliest evidence of using domesticated cows for dairy production is the seventh millennium BC – the early Neolithic era – in northwestern Anatolia.

But in the last century or so, people started commercial dairy production specializing in dairy production alone. Such dairy farms are focused on only milk production.

Advantages of Commercial Dairy Farming Business

Commercial dairy farming is a very popular and common business throughout the world. There are many benefits or advantages of starting commercial dairy production. Here we are describing more about the top advantages of starting this business.

  • Main advantage of dairy farming business is the huge demand of milk and milk products throughout the world.
  • It is a very popular business throughout the world.
  • Demand of milk and milk products will never decrease, rather it will increase gradually.
  • Marketing milk and milk products is very easy. You will be able to easily sell the products in the local market.
  • It’s an Eco-friendly business and will not pollute the environment.
  • You can start either small scale or large scale production depending on your budget and other facilities.
  • If you start small scale production, then you can utilize your family labor.
  • It can be a great income and employment source for the educated unemployed young people.
  • There are numerous highly milk productive cow, buffalo or goat breeds available to choose from. You can choose any depending on the availability in your area.
  • Commercial milk production business require high investment. And you can apply for bank loan if you have a good business plan.
  • Milk is very nutritious, and consuming milk regularly has many advantages. And you can enjoy fresh milk if you start your own dairy farming business.

How to Start Dairy Farming Business

Starting dairy farming business is not too easy. You have to learn more about this business before starting. So, it will be better if you can complete a dairy management training before starting this business.

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For successful production, you have to go through some step by step process for making good profits from this business. Here we are trying to describe more information about starting and operating this business from feeding, breeding to caring, milking and marketing.

Select A Good Location

First of all, select a very good location for starting your dairy farming business. It will be better if you can select the land in calm and noise free place.

Ensure all types of required facilities are available near your selected location.

Good transportation system is a must. So, it will be better for you if there are good transportation system available in your selected location.

Select Right Breed

Selecting the right breed is the most important part of commercial dairy farming business. You can choose cow, buffalo, goat, sheep or camel for commercial dairy production. But buffaloes, cows and goats most popular.

If you are willing to start your farm with buffaloes, then the best breeds are Murrah, Surti, Jafarabadi, Anatolian, Nili-Ravi, Egyptian, Mediterranean, Pandharpuri, Nagpuri, Bhadawari and Romanian buffalo.

The best dairy cow breeds are Ayrshire, Brown Swiss, Guernsey, Gir, Holstein Friesian, Jersey, Milking Shorthorn, Red Sindhi, Tharparkar, Sahiwal etc.

And best milk producing goat breeds include Saanen, Toggenburg, Anglo Nubian, Jamunapari, Beetal etc.


After selecting the right breed, make a good house for your animals. And ensure all the required facilities are available for the animals.

A good house not only provide the animals a good shelter, but also keep the animals safe from adverse weather conditions and wild animals or other predators.

Exact amount of space inside the house depends on the size of the animal. For example, a mature cow require around 40 square feet space inside the house.


Feeding the animals with very good quality and nutritious food is the most important part of commercial dairy production. Because good food always ensure good production and also good health of the animals.

So, always try to provide your animals with adequate amount of high quality and nutritious food.

Never provide them contaminated feeds or polluted water. And always try to provide them with enough green feeds as per their demand. Milk producing animals always require adequate amount of greens in their diet.

Dairy animals drink a lot of water daily. So, ensure availability of adequate amount of clean and fresh water for your animals.


Most of the dairy animals are very good breeders. They will breed easily if you keep good ratio of males and females in your flock. You can also consider artificial insemination for breeding.


Milking the animals in the right way is another important part of commercial dairy production. You can milk either by machine or by hand depending on the size of your flock.

Caring & Other Management

Taking good care of the animals is very important for successful dairy production. So, always try to take good care of your animals. Feed them nutritious food and provide sufficient amount of clean and fresh water.

Monitor their health on a regular basis. Vaccinate them timely and always try to keep good contact with a vet in your area. Always try to clean their house regularly.


Marketing milk or milk products is very easy. Both milk and milk products have very good demand and value in the market. So, you will probably be able to easily sell the products in the local market.

Although, you should set your marketing strategies before starting this business. You can contact with any company or sell in your local market.

These are the common steps and ways for starting and operating a successful dairy farming business. Hope this guide has helped you! Good luck & may God bless you!

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