Author:
Prof. Dr. Riaz Virk
Director Institute of Animal & Dairy Sciences
University of Agriculture, Faisalabad
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Dairying is one of the most important means of providing livelihood and nutritional security to the rural masses. The importance of dairy enterprise in the national economy can be gauged from the fact that the value of output from milk is nearly one-fourth of the value from the agricultural sector. The livestock activities, among which dairy farming predominates, employ about 8.5 million workers in the country. Milk and milk products account for 9.2 and 12.4 percent of protein intake in rural and urban areas, respectively. This article strives to evaluate the techno-economic viability of small, medium, and large-sized commercial model dairy farms.
Before entering in dairy business one should check related information and answer these questions;
- Which one from the above-given dairy sub-sectors is the best for him and in which he has got skills/knowledge or resources?
- If he has got knowledge or skills then what is the level of these skills?
- Can he execute business alone or will he need the help of professionals?
- How much capital does he have?
- Is it enough to start and sustain the business during hardship?
- What is his vision?
- Does he want to run a small business or target the mega-industry?
- How can he achieve these targets?
- What resources does he use to reach these targets?
- Has he got a loyal team?
- Is his team professionally sound to achieve these targets and able to solve different problems and meet challenges that will come along?
- Animal production is not only a single-dimensional phenomenon of increasing animal production but now it is a multidimensional approach with targets to get safe animal products and efficient utilization of natural resources with minimum environmental pollution.
Prerequisites:
The major
requirements for the setting up of a dairy farm are the availability of quality
animals, land for the construction of sheds and for the production of fodder,
and capital for the purchase of dairy animals, construction of dairy sheds and
allied structures along with the purchase of equipment and machinery. It would
be ideal if the entrepreneur owns enough land for construction of the cattle
sheds and to grow fodder. Alternatively, the land for the production of fodder
can be taken on lease or the fodder can be purchased from the market. The
capital required could be raised through loans from nationalized banks which
can be repaid in easy installments.
Choice of dairy animal:
The choice
of dairy animal will depend on the demand of milk and market price of the milk.
It would be worthwhile to conduct a market survey of the potential area where
the farm is to be set up regarding the consumer preferences for cow or buffalo
milk and the comparative prices offered. However it would be advisable to
initially start with both cows and buffaloes in suitable combination and
subsequently depending on the demand and price of milk increase the number of
cows or the buffaloes as the case may be.
It is advised to start with high yielding cows/buffaloes as feed cost
per kg of milk comes down as the yield of animal increases. It is better to
purchase the animals in two batches. The second batch should be purchased when
the animals of first batch are in late stage of lactation so that the
production level is maintained more or less uniform throughout the year.
Housing: The land required for the
construction of dairy sheds and ancillary structures including the milking parlor,
maternity pens, straw store, feed store, implements room, milk room, chaff
cutter shed, manure pit, roads and alleys between and office, etc. works out to
be about 500 sq. ft. per animal for a dairy unit of 20 animals. The land
required is reduced to about 350 sq. ft. per animal if the herd strength is
increased to 50 animals or higher as the area required for the milk room, roads
and alleys, chaff cutter shed, office, implements room does not increase
proportionately. Per animal area will be further reduced if the farm size is
further increased. The dairy building should be made of locally available cheap
construction materials and very costly building structures and expensive sheds
should be avoided.
Sustainable Feed/Fodder
supply: The other
important requirement for setting up of a successful commercial dairy farm is
the land for fodder cultivation. The land should be well fertile with assured
irrigation facilities so that all the seasonal fodder crops could be
successfully raised and abundant good quality green fodder is available for
feeding throughout the year. The land is required for the construction of dairy
sheds and other farm structures as well as for the production of fodder. The
land required for fodder production depends on the carrying capacity of the
land. On an average 4 to 5 dairy animals along with their followers can be
maintained on an acre of well fertile agricultural land with assured irrigation
facilities. However, the farm productivity would be higher and the cost of milk
production is lower if farm grown good quality green fodder is available in
plenty. After following the total mixed rations (TMR) based feeding regime, the
requirement of land for fodder cultivation can be suitably reduced. The place
where the dairy farm is to be set up should have a source of good quality water
for drinking by animals and for the cleaning, washing etc. the dairy farm
equipment & premises. The cost of milk production is lower if cows are fed
on good quality abundant green fodders and homemade quality concentrate
mixture.
Laborers:
Dairy farming is a labor-intensive enterprise as compared to crop production and other allied
enterprises. It has been estimated that on average one person can look after
all activities of 10 milking animals along with their followers excluding the
work of harvesting fodder. Some routine activities such as milking (machine
as well as hand milking), heat detection, care of down-calvers and neonates, etc. require experienced and dedicated workers. Therefore in case one decides
to set up a new farm about half of the workers should have earlier experience
of working at a dairy farm. Two or three workers have to be trained for the
specialized jobs at the dairy farm such as AI, first aid, identification,
de-worming etc. Besides, at large farms technically qualified persons in the
field of dairying will have to be hired such as the farm manager, veterinarian,
stockman, and the ministerial staff.
Mechanization: On farms maintaining more than 20
milch animals, machine milking may be economical and more convenient as
compared to hand milking. Installation of fans and mist cooling devices in
animal sheds for protection against heat stress is also a must if one wishes to
keep high yielding crossbred cows. Dairy farms with 50 or more milch animals
may also require a milk cooler, electricity generator set and a utility vehicle
for the procurement of farm supplies and marketing of produce besides a tractor
with implements for the cultivation of fodders and their harvesting,
transportation chaffing, processing etc. However, at a large dairy farm
integrated with a milk processing plant or situated in the milk shed area of a
milk processing plant with a high level of mechanization and automation keeping
of high milk producing crossbred cows is likely to be more economical than the
buffaloes.
Adoption of Improved Technologies: To believe that the modernization
would always be at the cost of the animal welfare may not be always true. To
the contrary, many developments in housing, feeding, milking and other areas of
animal production have helped to ensure improved wellbeing of the animals.
Modern housing designs, milking parlor, mistress cooling devises, chilled
drinking water during summers, individual bedded pens for young calves,
exercise before calving, night feeding to ensure higher rate of day time
calving, mechanical lifting of excreta etc. could all contribute to better
animal welfare. Some standard practices
with temporary painful procedures like, dehorning, dystocia management,
castration, identification methods, foot care, removal of extra teats in young
age etc. can be justified in terms of long term welfare of the animals.
Marketing: The market price of the milk is the
major determinant of the profitability of dairy farming. The removal of
middlemen in milk marketing and selling the milk directly to consumers is
therefore a must for sustainable and viable dairy farming. In fact most of
commercial milk producers in the country comprise of this category who market
milk readily in cities by themselves. The cornerstone of successful dairying is
the elimination of middlemen in the marketing of milk and the producers
themselves have to devise their marketing mechanism so that the producers
directly sells the milk and value added milk products to the consumers. The
price of cow milk is lower than the buffalo milk due to lower milk fat content.
There may be lower consumer preference for fresh cow milk. The higher grades of
crosses though producing higher milk may not be adapted to all climatic
conditions prevailing in the country. The buffalo males after weaning and other
unwanted animals also fetch good price as meat animals. The buffalo males are
also good work animals. However higher calf mortality, slower rate of growth,
late maturity and higher calving interval (15-18 months) are some of the
detriments in buffalo farming. The net income will have a upward swing from the
fourth year onwards as farm born high producing fresh cows are added and low
producing old cows are sold out from the herd.
Small to
Medium Scale Dairying: An average
farm family desirous of venturing into a commercial scale dairy farming as a
specialized occupation may initially start with about 20-30 dairy animals
extendable to 50 dairy animals, preferably a combination of crossbred cows and
buffaloes. Such a farm unit shall provide full time employment to 2-3 workmen
and shall generate sufficient income to sustain a middle class family. Further
construction of modern animal housing facilities, mechanical fodder chaffing,
machine milking, milk chilling and other infrastructure shall be better
utilized and economically viable if the farm size comprises a minimum of 30
high-yielding dairy cows. The size of
the farm can be raised gradually to 50 animals or more in the proportion of 25
cows and 25 buffaloes as the farmer stabilizes in dairying. The established
business firms having the necessary capital for investing in dairy production
and who are in a position to hire technical personnel for the management of the
farm may set up large dairy farms starting with 100 to 500 high-grade crossbred
cows and a suitable number of superior buffaloes and gradually raise the farm
size further as per requirement. It will be prudent to start from a small size
as a large number of animals with desired production levels may not be
available or difficult to procure at the same time. Further, the farm-bred cows,
under ideal management conditions, will be better producers than the purchased
cows.
Crossbred
Cow v/s Buffalo Dairy Farms: The potential entrepreneur may start the dairy farm either with crossbred cows or with improved breeds of buffaloes or a rightful combination
of both high-yielding crossbred cows and buffaloes.
Crossbred
Cow Farms: The
important economic characteristics to be considered while selecting the dairy
animal are: Crossbred cows are the economical producers of milk under good
feeding and management conditions. They are high producers of milk with
production levels of 4000 to 5000 kg of milk in standard lactation quite
attainable. The level of exotic inheritance of half-bred can further be
upgraded to 62.5 and even up to 75 percent in subsequent generations as the
husbandry practices get stabilized and the dairy entrepreneur gets experience in the management of high-grade cows. These high-grade cows can produce under local
conditions of feeding and management an average of about 5000 to 6000 kg of
milk in a lactation period. The average milk fat content of crossbred cows is
low (3.5 to 4.0 %) as compared to buffaloes and indigenous cows. They grow at a
faster rate mature early and come into production at about 28 to 30 months
of age. They breed comparatively regularly if proper care is given and produce
one calf every 13-14 months. In hilly regions and coastal areas Jersey crosses
may be more suitable. They are more amenable to modern husbandry practices such
as calf weaning and machine milking. In fact, many such farms with high levels of
mechanization including mechanical feeding, cleaning, machine milking, and other
modernized management aids coming up in the country are looking to maintain the
high-grade crossbred cows. These are available in sufficient numbers in some established markets at reasonable prices. The male crossbred cattle calves
can also be used for meat purposes.
Buffalo
Dairy Farms: Good breeds
of buffaloes like Nili-Ravi and Kundi are economical producers of milk and thus
suitable for commercial dairy farming. Elite buffaloes belonging can yield
3000-3500 kg or even more milk in lactation. The buffalo milk is rich in fat
content which usually ranges from 6.0 to 9.0 percent and is thus priced around
30-40 % higher than the cow milk. Moreover, buffaloes could be maintained on
fibrous feed residues and hence offer higher scope for reducing feed costs.
Buffaloes are well adapted under the diversified agro-climatic conditions of
the country and are less likely to suffer from mastitis, milk fever and
parasitic infestations as compared to crossbred cows.
Commercial dairy farms: It is the need of hour is to
promote dairy farming on commercial lines in the country. This would not only
provide a quantum jump in the milk production but would also benefits to
address the quality issues. Commercial dairy farms to be set up near the urban
areas to take advantage of the higher milk prices round the year without
involving middlemen or the commercial farms are to be integrated with milk
processing units. There would be the lesser transportation charges and lesser
will be the loss due to spoilage of highly perishable milk and milk products
during storage and transportation. Ideally the big dairy farms should be
located nearer to towns but not in towns due to the compliance of environmental
protocols and higher costs of inputs especially fodder make them difficult to
sustain. Dairy farming units are opened at safe distance from the municipal
limits, can earn good returns as they can sell milk at high prices to the
consumers directly.
Smart
dairy farming: It is generally defined as information and
technology-based farm management system to identify, analyse and manage
variability within farm management for optimum farm performance, profitability
and sustainability. It is technology based measures and analyses for physiological
values, behavioural display and production indicators in individual animals. Automated
milking systems save labour in addition to milk recording individual animal and
total yield of animals at a dairy farm. Milk recording system for daily milk
yield and changes in intake is made easy. Activity monitors detect abnormal
activity, warning signs of illness or infection. Pedometer’s use helps to
tracks cow activity and helps in breeding. Record keeping and digital
monitoring with the use of computer, tablet, and phone apps collect data for
farmer’s future decisions. Automated calf feeders are adjustable
for the calves' age & weight to grow faster and stay healthy. The calf carries
a transponder to follow a daily intake for a computer-controlled milk-feeding system fairly well. Systems can also be combined with automatic weighing and
health observation for calf welfare and ease in farm operations, animal
welfare, production efficiency, and profitability. Innovative technological
applications could be used to monitor the welfare of animals, physiological
status, and early identification of diseases. Electronic records for milking,
heat detection, weighing, and barn environment are routine demands of dairy
farm operations. Some sensors are available for auto-disease detection and physiological
data recording.
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