Yes, dairy farming is profitable in India. But the profitability depends on various factors like capital expenditure, recurring expenses, feeding expense, labour, management, feed conversion ratio(FCR), morbidity etc. Here are few factors that are important for increasing profitability in dairy farming.

How to make a dairy farm profitable?

1. Around ¼ th of the project cost is spent as capital cost and rest are working capital. Animal cost is the prime cost in capital cost and rest is towards shed construction, tools and equipment and other construction costs like fencing, borewell etc. Except the animals everything is depreciating in nature. Animals do not need high-tech expensive sheds, they just need comfortable living space with a good drainage system. So, creative low cost housing can increase profit in dairy farms.
2. Dairy farming is not for those who do not like animals. To make profit one must have skills at micromanage level or hire experienced dairy farm managers. Before starting a dairy farm one should visit other dairy farms and work for them to get some first hand experience.
3. Profitability depends greatly on efficient daily management but finding hard working labour is a problem for dairy farming in India.
4. There are tonnes of readymade feeding formula but you must work on your own to find out the right combination which will not only give a higher FCR but also be economical.
5. Feed cost is the main recurring cost in dairy farming. Cultivating green fodder can reduce the overall feeding cost.
6. Mortality in animals due to various reasons can reduce profitability.
7. Non-productive or under-productive cows are a more serious concern regarding profitability in dairy farms. This situation can arise for various reasons like diseases, mismanagement, low water intake, low feed conversion efficiency, mastitis etc.
8. Make use of the waste generated in the farm. Cow dung can be used to produce biogas and the decomposed slurry can be converted into vermicompost. The produced biogas can be used for energy requirements in the farm and the vermicompost can be used to cultivate green fodder or sold to other farmers for organic farming in open markets.

You would like to buy our dairy farm project report to calculate profit and cost in dairy farming in India. Also, there is a project report on vermicomposting to convert cow dung into valuable vermicompost.