Dairy sector of our nation is one of the strongest sectors, which is rapidly increasing over the past decades. But is Dairy Business Profitable  ? Almost every year new entrepreneur steps into this business with the hope of rapid growth and business expansion. Let us understand whether dairy business is indeed a profitable business or not?

There is no doubt in the fact that India is one of the largest dairy producers in the world. This fact itself throws a positive light towards the question we are pondering over. Dairy business incorporates the process and methods of production of milk and its products. This business is a complex process that requires nifty workers. From the collection of milk to the packaging and delivery of the final products, dairy business is a vast field that includes different phases of production to look upon.

Through the following 5 points, let’s be sure whether this business is a profitable option in our country or not:

1. Dairy business yields profit but the profitability depends on various factors. Our major expense goes into mainly land, building, equipments and animals. If we miss out on any important factors while choosing these assets, it can adversely affect the whole production process.

2. Arranging labours is also one such important facet that determines the success of the business. Establishing a dairy plant in rural areas won’t help you find labours instantly. Since you have to outsource that from other states, the process might take a lot of time.

3. Similarly, you have to keep an account of the daily cost incurred in feeding otherwise it can turn out to be a loss. Referring to the number given by NABARD is highly helpful. You should keep an account of your own project cost and maintain a cash-flow statement.

4. The morbidity can affect the whole profitability. Factors like low yield during lactation, high number of dry days, etc can hit your business badly. Morbidity is taken more seriously than mortality.

5. Having potential skills also helps to determine the success of the business. Gathering a minimum of 6 months of experience under well-established firms helps for the better understanding of the whole scenario. This also helps to prevent major mistakes that can take a huge toll on your business.
From the above-mentioned points, it is clear that dairy farming is indeed a profitable business until you keep certain important things in mind. You must be aware of all the pros and cons of this particular industry to help it flourish. You should make the right choices while striving for success.
Consult an expert!
Getting an expert advice is always beneficial in every sense. Amol Ghodke is a dairy industry expert who has pioneered various successful projects in this industry. He has worked with well-known brands over his career of 12 years and thus holds a firsthand and in-depth knowledge of the functioning of the whole dairy industry. His expertise proves to work as a guiding hand for the emerging entrepreneurs in shaping a bright career. Book your consultation now!