How to write a step-by-step business plan for an effective dairy farm
A well-calculated farm business plan is of great importance for organizing your own business in the field of animal husbandry. Meat and dairy products are of particular interest. At the same time, you can organize a small family business, in which there will be only about a dozen cows, or plan the organization of a farm for 100 heads of cattle and more. In both cases, you need to start with clear, well-thought-out actions for each specific project.
The importance of individual business planning
Before starting any business, you need to think carefully about everything. At the planning stage, it is important to determine the priority tasks on which the success of the private economy directly depends. Creating a business plan for a farm should begin with defining the general focus, format of a specific production.
Based on these indicators, it is necessary to study the market, pricing policy, possible competition, to establish preliminary contacts with potential buyers of manufactured products.
Among them, contacts with meat processing enterprises, dairies and leather dressing firms deserve special attention.
Having decided on the direction of activity, it is important to make calculations of the area of the optimal territory for running a specific farm, equipment and building materials.
How to start your business in the countryside
Before organizing a livestock farm, it is important to assess your capabilities, the seriousness of your aspirations. In addition, you need to carefully think over the necessary equipment, make a calculation of a detailed business plan for breeding cattle, which includes financial costs, payback time, and profit levels. It will be useful and necessary to study the basics of production of meat, dairy products, technology of raising cattle. Only by relying on proven knowledge, you can properly organize an effective business.
From the very beginning, the following steps should be taken:
- choose the right place for building a cowshed;
- explore the possibilities of renting ready-made premises;
- purchase the necessary equipment;
- ensure that the temperature inside the wintering house is kept at least 12 degrees Celsius;
- make sure there are nearby summer pastures for livestock;
- form a productive herd;
- it is better to start from a small farm with a maximum of 50 heads, and then expand the scale of the business;
- a small dairy with a packaging line will become an important part of a dairy farm, the business plan of which is focused on processing its own products.
Actions and funds to start your own livestock business
To start a business, you can rent a ready-made cowshed and adjacent land. This will require a certain start-up capital. The state program of concessional lending can help a novice entrepreneur in organizing a farm for 50 cattle.
Today the situation on the dairy market is such that demand significantly exceeds supply. This is despite the large number of enterprises involved in milk production.
The need for import substitution has led to an increase in demand for domestically produced goods and influenced the fact that the state today provides support to small farms engaged in milk production. Therefore, a business plan to open a 10-head cow farm can be an excellent source of income.
Country Dairy Industry Overview
Milk is an essential commodity. The demand for it remains stable both in the event of a crisis and when income decreases. At the same time, alternative goods, for example, goat milk, have little chance of displacing the main object of demand.
Until 2021, dairy production volumes were decreasing, and only by 2021, productivity growth began again. At the same time, an interesting trend emerged - the volume of small-scale industries increased on the market, which outstripped large dairies in terms of development speed.
Also in Russia there is a lack of production of its own cheeses and other dairy products.
Another "breakthrough" in the dairy business was observed after the introduction of the trade embargo. The main importer at the moment is Belarus. The state began to actively support farmers under the program "Development of dairy farming".
The peculiarity of the milk business is the need for large investments at the first stage, because of which the payback comes only after 3-5 years, which requires careful planning of activities, a well-thought-out business plan and continuous development.
Support and loans for dairy production
Since there is a huge demand for milk among the population, and the organization of milk production requires high costs, the Ministry of Agriculture provides all possible support to entrepreneurs in 3 different areas.
- partial reimbursement of expenses on business projects - up to 40% of the costs incurred for the purchase of new equipment for modernization and up to half of the cost of the purchase of new highly productive breeds of cows are reimbursed;
- subsidy per liter of milk sold (only of the highest quality) - you need to submit a subsidy to the local administration department;
- subsidizing part of the loan when applying for a bank loan to start a business (only in accredited banks) - the federal budget covers up to 100 % refinancing rate, regional - 3% of the amount taken.
The distribution of subsidies depends on which regions are more or less manufacturing enterprises. When deciding where exactly to open a business, it is recommended to study the data of official statistics.
At a cost of up to 20,000 rubles per head, raising bulls for meat allows you to earn up to 100,000 rubles per carcass. But for a business selling meat to bring money, investments will be required for the construction or rent of a cowshed, the purchase of equipment for maintenance and slaughter. You will also have to purchase cattle, feed, hire workers who will take care of the animals. With a competent organization, the business will pay off in a year and a half.
Business advantages and disadvantages
The business of breeding and selling bull carcasses has advantages.
Beef is in demand due to its taste and healthy composition. In 100 grams: carbohydrates - 0%, proteins - up to 26%, fats - up to 15% and 205 kcal. Also, bull meat contains vitamins A, B, D, C, calcium, iron, magnesium.
In addition, the market for beef is wide: from cafes and restaurants to factories for the production of semi-finished products.
In addition to bull meat, you can sell manure up to 200 rubles per bag, and skins up to 15,000 apiece.
Now about the cons. For a business to be successful, you need to know how to properly care for cattle. Details below, in the section "Care features".
You will have to spend a lot of time and effort cleaning the barn and caring for the animals.
Another drawback is bull aggression. The problem is solved by amputation of horns and separate stalls for each animal.
The business of raising gobies for meat for sale requires formalization. There are three options:
- personal subsidiary farm (PSH);
- individual entrepreneurship (IE);
- peasant farm (PFH).
According to the calculated set of the consumer basket approved for 2021, the consumption rate of meat and meat products for the average Russian is about 60 kg per year, milk and dairy products - about 300 kg per year. The actual figures are usually an order of magnitude higher. If you look at these figures from the perspective of not a consumer, but an entrepreneur, you can see a favorable ratio and the opportunity to make good money in the production of meat and dairy products.
Livestock as a business from scratch can take different forms, scales and performance indicators. This article will discuss how to organize a cow breeding business and how profitable it can be.
Cow Breeding Farm
A former farm, abandoned old-style premises can become a place for keeping cows. Building your own cattle farm from scratch is quite a costly business, and you also need to get all the necessary documents for the construction. It is much easier to rent an area of an abandoned farm and make repairs there.
The optimum temperature for keeping cows is not lower than 12 degrees. An important nuance is also the absence of drafts in the room where animals are kept.
After setting up the farm, you can start buying animals, while taking into account the purpose for which you organized the farm. In order to choose the right breed, use the help of an experienced breeder.
Breeding cows for milk
If your goal is to breed cows to sell milk, then you need to choose a breed that is characterized by high milk yield. Usually such cows can be distinguished by the barrel-shaped body, underdeveloped muscles, thin bones. Such animals have an elongated head and slender horns. They also have large, bowl-shaped udders. Selling milk as a business is a pretty good way to make money for the villagers. Many villagers sell milk in bulk to the factory, but, as a rule, it is not profitable, it is better to look for a distribution channel on your own. Alternatively, you can sell milk and fermented milk products on the market or conclude agreements with retail outlets (supermarkets, shops).
Breeding cows for meat
Another option for earning money on cattle breeding. Such a business, which is also profitable, with a well-established sales market for finished products. Therefore, before starting this business, make sure that the idea is profitable. Related Videos
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Feedback on a business plan for growing cattle
Thanks to a professional business plan, we received a loan from Rosselkhozbank in the amount of 240 million rubles and significantly expanded production volumes. The experience of interaction with professionals in their field is always pleasing, this is just such a case.
Feedback on the business plan for opening a pig farm
In the course of cooperation, we received a business plan with a convenient financial model. The developed business plan allowed us to receive investments for the development of a pig-breeding complex in the amount of 340 million rubles.
Director of the Aprelskoye farm, Yekaterinburg
Feedback on the livestock business plan
Feedback on the livestock business plan Thanks to a well-designed business plan, we were granted a credit line for 43.7 million rubles. Thank you that the head of the company personally supervised our project. When drawing up the plan, all my wishes were taken into account. I am very pleased with your work. Good luck!
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