Dairy Farming

Presented ByRamandeep Verma

Sanjay SinghAbhishek Singh

Harish KumarAshish PundirManoj Kumar

Introduction

Gives good opportunity for those who are looking for long term business.

While the farming sector is more or less stagnant, the dairy sector has seen much activity.

In the past 15 years, milk production in India has doubled and is now over 113 million in a year.

Second largest producer of milk.

Future

India milk production is growing at about 3-4 per cent per annum.

However, due to increasing population, per capita availability of milk is expected to increase by only about 1.5 per cent per annum.

For an economy growing at about 8 per cent per annum, this increase in availability will be grossly inadequate.

Production growing at only 3-4 per cent and consumption growing at more than double the rate leads to a mismatch between demand and supply.

4p’s of project

Products – Milk, Curds, Ghee,Paneer etc

Price – According to market demand, competition based pricing.

Place – Varanasi(Uttar Pradesh) Promotion – Advertisements,

banners, etc

Know Your Marketplace

Strengths, Weaknesses, Opportunities, and Threats (SWOT)

Trends and changes:

Market analysis

Segmentation

Prioritizing target markets

Who Are Your Customers?

Customersvs.

Consumers

Customer: firm or person that buys

your product

Consumer: firm or person that eventually uses

your product

Competitor

Make sure you are distinctively differentfrom your competition in areas of importance to your customers.

Competitive analysis Positioning

Determining the Marketing Strategy

The set of controllable variables that will accomplish the marketing objectives:

Product strategyPlace (distribution) strategyPromotion (communication) strategyPricing strategy

Promotion Strategy

Advertising Creating a farm logo. Brouchers for retailers. advertisement by local channel & news paper.

Personal Selling Telling your customers how you create value. We distributes to the retailers.

Public Relations Being a good neighbor Being involved in the community Open selling

Price Strategy

Price is the cost the customer can bear in order to obtain the product. It includes:

list price discounts payment period credit terms

Pricing Methods

Value-Based Pricing Competitive strategy pricing

Cost-Based Pricing Add a standard markup to the cost of the

product Competition-Based Pricing

Set price based on following competitors’ prices

Value-Based Pricing

• Government & customer Oriented

• Based on customer’s perceived value

• Match price to perceived value

• Brand loyalty

Competition-Based Pricing Price decision based on actions of

competition Less attention on cost or product

demand Large firms all charge the same price Smaller firms follow lead of large

firms, may offer a slightly lower price

Price Expectations

Assess the situation Historic patterns (seasonal) Basis patterns

The current situation Outlook source

Finance of Dairy Farming

General

Status of beneficiary : Partnership Total investment : 50,00,000 rs. Contribution amount : 10,00,000 * 5 Area : 1360 * 15 = 20,400 sq ft. Numbers of Animals : 30 Numbers of staff : 7

Land and Location

Location : Chitaipur near NH VaranasiTotal area 1360 * 15 = 20,400Details cost estimates with various

structures 1. sheds2. store rooms3. quarters4. small shopCost : 8,00,000 rs.. Water facility : 1,00,000 rs.

Equipments & Machinery

Cans : 40 ltr * 4 * 5500 = 22000 20 ltr * 5 * 2200 =11000 10 ltr * 5 * 1200 = 6000 Cooler : 4 * 2500 = 10000 Chaff cutter : 6000 Milk cream separator machine :

94000 Deep freezers :25000*2=50000 Delivery van : 300,000 rs.

Feeding

Source of fodder and feed - Green fodder

- Dry fodder - Concentrates Fodder expenses

-2500/animal/month Requirement and costs -

2500*30=75000

Animals

Proposed Breeds-Jarsi cow, Mehsana

Place of purchase-Punjab ,Haryana

Cost of animal (Rs.)1. Cow -35000-400002. Buffalo -50000-55000

Marketing of Milk

Source of sales : Dairy

Price realized - (Rs. per liter of milk)-20-25/ltr

Payment period- daily & monthly basis.

Total Infrastructure’s Civil Structure 10,00,000 Equipment & Machinery(FA) 9,00,000 Animals (FA) 15,00,000 Feed

75000/pm*12=9,00,000 Salary

5000*6/pm*12=3,60,000 Admin Salary

10000*1/pm*12=1,20,000 Other Expenses

Medical ChargesTransportationElectricity 2,20,000

Output

Milk production 20 buffalo*18 ltr = 360/day*250days

=90000 ltr 10 cow *14 ltr = 140/day*250days = 35000

ltr sale of milk 70% of total milk Save 30% for shop Purpose(assumption) Curd (5000 ltr to 5000 kg) Ghee (20000 ltr to 2000 kg) Cream (2500 ltr to 250 kg Paneer (10000 ltr to 4000 kg)

Profit

Milk 87500*20=17,50,000 Rs Shop

curd 250000Ghee 500000Cream 3750Paneer 800000

Total 1553750Grand Total =1750000+1553750

=3303750 Rs

HR & Operation Of

Dairy Farming

HUMAN RESOURCE Operation and HR is main task of

the dairy and milking of cows was traditionally a labor-intensive operation and still is in less developed countries.

Small farms need several people to milk and care of animals.

CONT…..

Recruitment of dairy farm employees is a major management problem due to the long hours of work, low pay, and poor working conditions on dairy farms

Hired employees create a unique set of management challenges for dairy farm operators.

The demand for labor depends on enterprise and on specific growing conditions that determine when and how much labor is required.

Availability of full-time employees is the most common pre-expansion human resource management challenge that dairy producers face

Requirements of Business

Total workers : 07

1) Admin worker : 012) Worker : 043) Helper : 024) If required can be increased

Employees assigned responsibilities according to their abilities and preferences for doing different tasks

Recruitment and SelectionRecruitments through : Local areas Local advertisements References Mouth to Mouth advertisements

Selection basis

Interviewing the worker on : Communication Behavior and nature Qualification(according to work) Working conditions Skills and abilities Past experience

Wages and compensations Wages depended on whether an

employee was provided with any facilities or not.

Farm occasionally provided bonuses to employees based on his perception of their commitment and productivity at work.

Healthcare insurance plans to employees.

Medical facilities to employees and their families(First aid only).

Others facilities like education(2 child up to 8th class), increment in wages etc.

Removal and Termination Poor working condition or not punctual at

time. Poor working relationship with coworkers. Persistently refusing to follow the milking

routines. Alcoholic nature. Fighting with workers. Bad verbal communication

Operations in dairy

Productivity Breeding Feed and Fodder Storage of milk Selling in market Caring and health of animals in dairy Shop activities Purchase of feed and fodders from

market.

Operation

A plan that provides directions so a business can plan its future and helps it avoid bumps in the road.

The time you spend making your business plan thorough and accurate, and keeping it up-to-date for future aspects and success.

Distribution of work

Admin work : 01 man (Shop a/c & sales of total products)

Worker : 04 men (Milking and shop)

Helper : 02 men (other works of dairy)

Works in dairy & shop

5:00 – 5:30: Providing feed and fodder to the animals.

6:00 – 7:00: Milking and storage of milk and filling in containers.

7:00 – 8:00: Milk transported to the Mandi.

7:30 – 21:00 : Timing of shop All the work of shop done in

between. Milking does twice a day