How to Start a Dairy Farming Business
The average dairy farming business owner makes between $230,000 and $260,000 and there is more to starting this business than just milking cows. This article will reveal every important details on how to start a dairy farming business.
There are factors to consider before going into this business, the knowledge you must acquire and the right way to go about opening a dairy farm. We are used to getting our milk, butter and cheese from cows but a few other sources exist and one of them produce much healthier milk than cows.
Know your dairy farm animals
Dairy animals are animals that are meant to produce milk and bring forth offspring that would grow up to become milk producers. These animals are the heart and soul of this business and a comprehensive understanding of them will help you make the right choices and provide the necessary conditions to optimize their production.
A large portion of dairy products come from cows. However, there are beef-producing cows and dairy producing cows. Meat-producing cows are a particular breed of cows that are reared to produce meat, that’s why they often spot a bulkier frame with thick masses of meat compared to the dairy-producing cows which have a thinner frame due to the fact that their nutrition is targeted towards enhancing their milk production.
Cows react to weather conditions differently due to factors like the thickness of their skin and also the thickness of their fur. The atmospheric conditions must be favorable for these animals to keep them from dying. Cows with thicker furs will withstand cold weather better than others, while the light-furred cow will bask in warmer temperatures.
There are different classes of dairy cows based on their physical attributes which include colors, spots and stripes, and most importantly their ability to produce milk.
The most sought after breed of dairy cattle are the Holsteins. These cows originated from The Netherlands before they started gaining international acclaim a few centuries ago. Holsteins are the undisputed heavyweight champions of dairy cows in the sense that they are responsible for up to nine gallons of milk per day! In the United States, for example, 90% of the cows in dairy farms are Holsteins. The popular black-and-white cow you see on covers of milk containers are usually Holsteins.
The milking shorthorns are perhaps the oldest known breed of dairy cows to move across continents for their milk producing abilities. They are relatively easy to maintain and they sport a dark brown color.
Another unique breed is the Guernsey which produces gold-colored milk. The color of the vitamin A-rich milk they produce makes them sought after. They originated from Britain but are believed to be French crossbred cows.
The Dunlops (or Ayrshires) are white cows with brown patches that are known for their durability. They are more dominant compared to other breeds and they hail from Scotland.
Cows are not the only dairy producers as other animals like goats and buffalos have been said to produce healthier milk than cows. Goat milk has smaller pieces of fat which makes it easier to digest than cow milk. Although all types of milk contain lactose, lactose-intolerant people who have problems consuming cow milk have little to no problem digesting goat milk. Goats also consume less food and water compared to cows which makes them a good alternative.
Buffalos are also a healthier class of dairy animals as they produce milk that have up to 43% less cholesterol and about 40% more protein than the average cow. Due to its health benefits, people, especially children who don’t react well to cow milk have a good alternative in buffalo milk.
Knowing the different options there are and the nature of these animals will help you make a good business plan for your business.
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Considerations About Dairy Farming
A dairy farming business is one of the most rewarding branches of agriculture there is but in order to run a successful one, you should consider some factors.
Produce or buy from other producers
Starting a dairy farming business is not cheap; the average cattle costs between $1,300 and $1,600 per piece. This is one of the reasons why people who go into this business start by being either wholesalers or retailers of cattle so that they can start to earn some profit as soon as they launch their business. Producing everything from the baby cattle until when they grow up and begin making calves is the more profitable option but it would take time, money, more equipment and manpower to achieve it. If you are able to bear the financial burden then go for the full package, but if for some reason you don’t have all the resources to start from scratch, consider buying from other dairy farmers and then sell the dairy products.
Ease of access to buyer
Before starting your business or opening your farm, do some research and make sure that the location will favor smooth transaction and movement to and from the farm. The complications farmers face when attempting to transport their farm produce to the market, especially in developing regions, discourage customers from going to them. Be sure that there is a good road network in the vicinity so that your customers will not deem it too stressful to go to your farm to check out the merchandise before they make a purchase. The closer your dairy farm is to the market, the better your chances are of making more sales.
Your duty as a dairy farming business owner
Owning a dairy farm is a big responsibility and a lot is at stake in this business. You have a few important roles to play in order to run this business successfully. These responsibilities include the following:
Feeding the animals
The more you grow into the business, the more the farm animals grow on you. Some farmers even call their animals by name and others go as far as to treat them as if they were their children. Feeding the animals is very important and whether you are just in it for the money or you love the animals, you have no choice but to feed them. Feeding dairy animals is not as straightforward as it may seem because these animals are different from other types of cattle. Some cattle are fed to gain muscles and enough meat while others are fed to boost their reproduction or production of milk. This realization will guide you in making the right food choices for your cattle. Many big cattle-rearing, or dairy farming businesses, hire nutritionists to guide them concerning the right food to feed their farm animals, while some even pay the nutritionists to be completely responsible for everything regarding the nutrition of the animals. The manner in which you feed your dairy animals, the quality of the feed, and how often you feed them will make them develop better and ensure that they are capable of producing top quality dairy products.
Sheltering the animals
Providing shelter for your farm animals is a priority and this is what you should put in place. This goes beyond just making a roof over their heads; you must consider some factors that will help you achieve this. It won’t be wise to provide the same type of shelter with the same conditions for every type of dairy animal in your farm, make plans for expansion among other things. The breed, size and health condition should determine the type of shelter you provide. As cattle grow bigger and taller, there should be an option to expand their space. Pregnant farm animals will also require different shelter conditions for their health demands and you should make a quarantine shed for infected animals so that they would not transmit the infection to others. Consider the spacing and how many animals would ideally fit into a compartment.
Nurturing the animals
The animals must be monitored, checked on regularly to keep track on their development and growth from their birth until when they also become old enough to reproduce. As the owner of the business, you may not have to do this alone, and even when you hire someone else to do this for you, you must be available to supervise the development. You will see to it that they are well fed, well vaccinated and kept safe because they are the reason why you are in business.
Orchestrate the marketing and sale of the dairy products
The first person who would be responsible for how the dairy products reach the customers is the owner of the business. Before your business grows into that which can afford to employ different professionals in different vital positions, you will be in charge of most of the important aspects. Your duty will involve getting buyers for your products and making sure that they get to the buyers. It would save you time and money if your farm or production site was easy to reach so that instead of going to them, your customers will come to you.
Security
In business, there are different means of providing security for one’s valuables, goods and even services and all these apply also to a dairy farming business. The most important piece of this business is the animal that will be producing the dairy products and they are the treasures you must seek to protect first. It is the farmer or business owner’s duty to make sure that the animals are safe by putting a few things in place in the form of proactive and reactive security measures. The first thing is to ask yourself what could stand as a threat to their safety, that’s how you start making plans to counter the threats. They could be diseases, accidents, predators, harsh weather conditions, and thieves.
Dairy producing animals are susceptible to diseases just like any other farm animal and these diseases can be communicable. Some of these diseases can wipe out scores of cattle at once due to the rate at which they spread and it is up to you to make sure that doesn’t happen. Common cattle diseases like the Bovine Respiratory Disease Complex (BRDC), Clostridial Disease (also known as Blackleg) and Mad Cow Disease can easily kill cows on your farmland. Mad Cow Disease, for example, doesn’t only kill cows but it also affects the consumers of the infected cow’s meat or milk. Knowing a few things about cattle diseases and their medication will help you take better care of them but to run a successful dairy farming business, you will need to get professional help from the vet.
Accidents occur in every animal farm but your job is to make sure that the likelihood of having accidents is reduced drastically. A few things could be hazardous to the dairy animals while on some days, it could be something totally unexpected. The simple thing to do as the farm owner is to make sure that you eliminate any likelihood of accidents by removing anything that could be an obstacle in the way of these animals especially when they are going out in the fields. Look out for holes and make sure that any ditch is filled up in order to avoid any case where your cattle fall into one. Make sure that there are no sharp farming tools on the ground and be certain that their shed is safe from fire outbreaks by forbidding the use of matches, lighters or anything that could start a fire.
A lot of things could go wrong when rearing animals that’s why you must be aware of their reaction to certain things like the way their tone changes, a sudden loss of appetite or strength and their total state of health. Monitor their health improvements, especially the young calves and pregnant cattle, in order to be available whenever they need help.
Predators come in different forms and shapes depending on the area where your farm or barn is located. Some areas get lots of unwanted attention from reptiles and they will most likely have the upper hand over the herd due to the fact that cattle are not the fastest of animals. In other areas, cattle face threats from wild animals especially when they are out in the fields to eat and all these things must be properly planned for or else you could lose your valuable mammals.
Make your farm or barn a fortress by implementing sturdy barricades to shield them from any invasion by predators. Look out for holes on the fences or near their shed and block them to prevent snakes from creeping in. Some people bell their cows for different reasons; a troubled cow that spots danger will move more vigorously than normal and with a bell around its neck, the bell would also ring more forcefully than usual which would signal trouble. This old technique can also be used by you as another security “alarm system”. Meet with other experienced cattle-breeders and ask them for tips on how best to provide security for your dairy animals to get more tested and trusted tips.
Humans are perhaps the biggest security threats to your cattle. Protecting farm animals from human invasion is one of the toughest and most expensive duties you will have to perform. Other predators might be more poisonous or deadlier but they can never be as smart as the human predator. Security alarm systems and CCTV should be some of the security measures you should consider putting in place on your farm. The stressful part is that human predators and thieves keep finding more cunning ways to invade your farm and as a result, you will work harder and probably spend more to find better ways to thwart their schemes.
Steps to launching a dairy farming business
Get firsthand dairy farming experience
The importance of having experience with working with dairy animals cannot be overemphasized; dairy animals are different, they need special attention, and the post production phase takes time to master. Most of the dairy farming business owners in the world are farmers, and some of them were born and raised on farmlands. The experience gotten from learning the production process of dairy products down to the marketing and sale of the products will put you in a good place to run this business. Although you can hire professionals to monitor the whole process, a little knowledge will benefit you.
Make a blueprint
Some people place value on things based on how expensive or how difficult it was to get them. A dairy farming business costs between $650,000 and $900,000 to start which means it is expensive and if you happen to place value on what you have by that, then the least you can do is plan properly for it. The whole process of setting up your business must be premeditated and there must be a record of how the business will be run, how it will be financed, what the finances will cover, the human resources you’ll need, the number and breed of animals, how you wish to purchase them, how you’ll sell them, the problems you might face in the business and every other important question as to what the business would look like.
After getting your business plan done, visit the local government establishments set up specially to give licenses to your type of business and request to be granted license to run a dairy farming business. Every state or province has policies and different criteria for starting such a business. Running a dairy farm will contribute noise and air pollution to the environment that’s why these government institutions are there to make sure that you are informed on the best ways for your business and the location to coexist in peace.
Get insurance
Rearing animals for is a risky business, the more animals there are, the more the risk. Animals transmit diseases very fast and before you know it, they all have it. Some farmers have woken up to meet scores of farm animals lying lifeless on the floor and the amount of loss that must have wrought would be enough to wreck any business that is not insured. Insuring your business is a life saver; animals are susceptible to diseases, attacks, accidents, natural disasters and even natural death but insurance will save the day. you mustn’t start a dairy farming business without insuring the business, if there is a type of business that needs insurance more than others, it’s a dairy farming business.
Get a farmland
A dairy farm will house the dairy animals, farm equipment, workers, and even the business owner sometimes. Where the farmland will be sited must be carefully selected so that the business will not be negatively impacted in the future. Hire professional to make shacks for the cattle and then get the equipment you will need to run the farm. Create a storage unit for the feed, medicine and the dairy products. Be sure to make the farmland secure and set up a quarantine unit for sick animals. When all is set, you may start rearing your cattle and produce dairy products.
Join a dairy farmers’ association
Dairy farmers need all the help they can get, especially the starters- this applies to those who are only interested in owning a business as well. The first ones to know about changes or recent happenings that will affect dairy farming are those in an association. The meetings they hold will serve as an avenue to get information and other benefits for your business. Getting a loan, buying dairy farm equipment and dairy animals will become easier and even cheaper when you start getting introduced to trusted industry dealers in the association. Joining an association that caters to business owners and stakeholders in this industry will help you know more about the industry and with time, you could be invited to become one of the top persons calling the shots in the industry.
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Finally
It’s high time you started your own business and information is the key to relevance in this industry. Pay close attention to your valuable dairy-producing mammals and give them quality nutrition to get the best out of them. The dairy animal is your business’s cynosure; live it, love it, nurture it, and eat it, literally.