How to Start Dairy Farming Business: ₹2 Lakh Cost & Profit
The basic Dairy Farm (2 animals) costs ₹2 lakh. A small dairy start with 2 milch animals. No subsidy is counted in this model; your share is about ₹20 thousand,
The basic Dairy Farm (2 animals) costs ₹2 lakh. A small dairy start with 2 milch animals. No subsidy is counted in this model; your share is about ₹20 thousand, the rest is a bank loan. In year 3, sales are about ₹2.7 lakh with net profit ~39% of sales (estimate).
01Where will the money come from?
Total cost ₹2 lakh
From your pocket only ₹20 thousand — the rest is a bank loan.
What does the money go into?
- Machinery₹1.7 lakh
- Working capital₹26 thousand
02Income over 5 years
Yearly sales (blue bar) · Net profit (green)
net profit ~39% of sales · payback ~1.4 years · Includes interest, depreciation and a 5% yearly rise in costs.
035 steps to start
- Get trainedLearn the work, find buyers
- Prepare the siteShed/room, power, water
- Get a DPR madeProject report as the bank needs it
- Apply for bank loanBank loan; check state schemes
- Produce and sellIncome starts from year 1
04Who is it right for?
053 mistakes that cause losses
06Machines and items you need
The basic dairy farm unit needs these items. Total cost is ₹2 lakh — building/civil ₹0 thousand, machinery ₹1.7 lakh and working capital ₹26 thousand.
| Item | What it is for |
|---|---|
| 2 crossbred HF cows | Good breed, checked by a vet — the main cost |
| Pucca shed (~120 sq ft) | Financed separately — NABARD norm ₹200/sq ft |
| Feeding trough and water | Clean water at all times |
| Chaff cutter | Cuts green/dry fodder — less waste |
| Milk vessels and cans | Steel, cleaned daily |
| Animal insurance | Covers death or disease — required with a loan |
| Feed for the first months | Part of working capital |
Before the DPR, take fresh quotations from 2–3 suppliers — the bank asks for them.
07How the work is done — from start to sale
- Choose the breed: Buy cows in their 1st or 2nd lactation with good yield.
- Prepare the shed: Airy, sloped floor, drain and water.
- Balanced feed: Green fodder, dry fodder, concentrate and mineral mixture daily.
- Vaccines and medicine: FMD and HS vaccines; deworming every 3–4 months.
- Milking: Twice a day with clean hands and vessels.
- Daily sale: To a co-operative, dairy or direct customers.
- Timely breeding: Artificial insemination; about 13 months between calvings.
08Monthly view (year 3)
Yearly figures divided by 12, so you can see what comes in and goes out each month.
| Item | Per month |
|---|---|
| SalesMonthly average | ₹22 thousand |
| Total costRaw material, labour, power, interest and depreciation | ₹14 thousand |
| Net profitSales − total cost | ₹9 thousand |
| Loan instalment (EMI)₹1.8 lakh loan, 11% interest, 6 years (after 1-year moratorium) | ₹3,389 |
The bank checks that profit and depreciation cover the EMI comfortably. Sales will vary by season — keep 2–3 months of expenses aside.
09What if things change? (year-3 profit)
| Situation | Yearly profit |
|---|---|
| As estimated | ₹1 lakh |
| Selling price 10% lower | ₹78 thousand |
| Selling price 20% lower | ₹51 thousand |
| Selling price 10% higher | ₹1.3 lakh |
| Costs 10% higher | ₹88 thousand |
Costs are kept the same when price changes. The biggest risk is the selling price — fix buyers and prices first.
10Where to sell?
- Milk co-operative / BMC — Assured purchase, paid every 10 days.
- Private dairy — Price by fat and SNF.
- Door-to-door customers — Higher price, but daily delivery.
- Dung / manure — Extra income — not counted in the model.
- Calves — Future income or herd growth — not counted in the model.
11Frequently asked questions
Is it fine to start with 2 animals?
Yes, NABARD's unit model is for 2 animals; increase the number after gaining experience.
What government support is there for the Dairy Farm (2 animals)?
No subsidy is counted here; check your state's animal husbandry schemes separately.
How much can the Dairy Farm (2 animals) earn?
Year-3 sales are about ₹2.7 lakh with net profit ~39% of sales; payback ~1.4 years.
How much do 2 cows earn per month?
At 12 litres/day, ₹35/litre, year-3 sales are about ₹22 thousand a month and net profit about ₹9 thousand a month. Dung and calves are not included.
Is there a subsidy for a dairy farm?
There is no direct central capital subsidy for the basic 2-cow unit — it runs on a bank loan and KCC (animal husbandry). Some states have their own schemes; bigger units may qualify for other schemes.
Where can I get a dairy farm project report PDF?
See the bank-ready DPR: Dairy farm project report (DPR) →
Cost, machines, licences, subsidy and bank-loan steps — in one PDF, on WhatsApp.
This pack has: Dairy Farming · Milk Chilling Centre (BMC) · Cattle Feed Plant
After payment, the PDF comes to the same WhatsApp number.
Dairy Farm (2 animals) — Want to start?
Tell us your district and budget — an expert will suggest the next step for free.
Chat on WhatsApp+91 85305 77758Full details →Learn first: ₹99 masterclass · Instagram · Facebook · YouTube
Last checked: 01-10-2026. Figures are based on government model reports and are indicative; get fresh quotes and local prices before the DPR. The bank decides the loan/subsidy — we help you prepare. Depends on the scheme continuing.
Utkrishi Team
Utkrishi – एग्री बिज़नेस, DPR, सब्सिडी और बैंक लोन में मदद। WhatsApp +91 90961 12806 · कॉल +91 85305 77758