10 Steps to build a profitable Dairy Business?

Managing a professional dairy farm that gives good ROI is not that easy. Many entrepreneurs are entering into the dairy business, If you are planning to start a scalable Dairy business, It requires a massive investment in time and money as well as education and expert knowledge of the market. A cattle farmer has to always be prepared for the inevitable challenges faced by the industry today. Devotion and dedication to livestock health and farm maintenance as well as honing business and marketing skills are all necessary for cattle production.

Here are 10 major focus area that will ensure a profitable business:

With so many areas to consider, it may seem overwhelming or like it takes the fun out of your dream in the first place. Fortunately today we have many service providers, experts, and cattle managers that can guide us to success. We’ve assembled some helpful pro tips from the industry’s finest to help encourage and support your Dairy Business. 

1. CHOOSE YOUR CATTLE BREED

This is the most essential part. If this goes wrong, everything will go wrong no matter what. Few points to consider while making the breed selection: 

• Your area’s climate and microclimate
• Your goals for raising cattle
• Current and future market trends
• Practice viable mating and breeding systems

2. CARE FOR YOUR LAND AND FORAGE

Assess your land and foraging needs for the amount and size of livestock you’ll be raising.

• Forage production amounts
• Soil quality
• Feed management systems

3. ALWAYS PROTECT AND PRIORITIZE ANIMAL HEALTH

While proper nutrition is critical to raising healthy and productive cattle, there are plenty of other health factors to take into account. Just as with raising kids, you want to always be placing your cattle’s welfare ahead of all else. Injuries, illness, and poor health can be costly and devastating to a cattle business. This is why prevention is the best solution in ensuring your cattle stay healthy.

Best Practice: 

• Have veterinarian support
• Get cattle vaccinated
• Treat injuries and diseases immediately

4. KNOW HOW TO MAINTAIN AND MANAGE YOUR FACILITIES

Your ability to keep your facilities in order and use your land to your advantage determines your return. 

When it comes to facility management, here are some tips to consider:

• Prepare your facilities for your livestock
• Invest in proper facilities including fences
• Know the best locations for your water sources and fence lines

5. UNDERSTAND THE PHYSICAL AND LIFESTYLE REQUIREMENTS OF CATTLE FOR FARMING

The reality is that cattle raising is a lifestyle. It is a huge responsibility that comes with a lot of factors to consider in terms of how it will affect your life. It’s also an incredibly rewarding experience and an honorable profession that can be financially lucrative and provide an excellent lifestyle.

Here are some physical and lifestyle considerations:

• Are you prepared for full-time work?
• Are you physically fit and active enough for physical farm labor?
• Does your temperament match that of the cattle breed?

6. BECOME A GOOD MARKETER

To run a business, you’ll need to be prepared to advertise, maintain regular connections with your customer, even attend expos and lots more marketing activities. Here are some things to consider:

• Develop a marketing plan
• Always be networking
• Treat your business reputation like gold
• Use your story as part of your marketing

7. DEVELOP SOLID BUSINESS OPERATIONS AND MANAGEMENT SKILLS

Managing an excellent farm operation often depends on developing best practices that will improve efficiency and maximize your resources — all in an effort to produce the best possible product. Here are some important business operations and management practices to consider:

• Perform ongoing evaluations and analyses
• Become excellent at making decisions
• Work toward optimizing and maximizing farming operations

8. do FINANCIAL PLANNING

A financial plan covers many different items in business operations. These can include day-to-day business expenses and revenues, planning for financial challenges, or knowing how to reinvest back into your own business. Points to consider:

• Prepare and monitor budgets
• Maintain full records for tax purposes
• Purchase adequate health and liability insurance
• Understand how to reinvest in your own business

9. HAVE A CONTINGENCY PLAN

By nature, the cattle business can have its up and downs. This is inevitable. Hence planning for these inconsistencies is essential. 

• Who will take over if you become incapacitated?
• Do you have a qualified animal sitter who can care for your livestock while you are away?
• What financial plans do you have if a disease spreads through your livestock?
• Are you financially and mentally prepared to handle the ebbs and flows of the cattle market?

10. IMPLEMENT A LEARNING PLAN

Your ability to stay informed and continue learning and implementing best practices will ensure you develop a thriving business.

• Develop a working relationship with a mentor or other experienced experts
• Subscribe to livestock trade journals and newsletters
• Develop a relationship with your local university agriculture program

We wish you happy dairy farming!

You can reach out the www.pashushala.com to get help in any of the above-mentioned fields. 

Email: info@pashushala.com