In different parts of the country, including rural or urban, dairy farming has gained massive popularity, significantly improving profit margin. Individuals willing to start their dairy farm business can secure a loan for dairy farming from leading financial institutions and NBFCs.
Being one of the potential contributors to the Indian GDP, dairy farming includes several expenses, such as purchasing raw materials, processing products, storage and warehousing etc. Therefore, by acquiring a loan for dairy farming, intending borrowers can fund these expenses and grow their business successfully.
6 things to know about a dairy farm
Whatever your financial background or experiences are, individuals planning to start their dairy farm must know the following –
Curate a business plan and SWOT analysis
It is essential to keep in mind that a dairy farm is a profitable business. Therefore, creating a detailed business plan and SWOT analysis before availing a loan for dairy farming will play a critical role in deciding the success of your business.
Essential factors like how many cows are to be milked, where to market the milk, requirement of employees etc. Individuals need to frame a proper business plan that must include a cash flow plan that will help them prepare reasonable expectations for their expenses and production costs.
Initiate a cropping and feeding program
Irrespective of feeding a TMR (total mixed ration), grazing your cattle, or even both; dairy cattle need a certain amount of nutrients to produce milk and give birth. Therefore, individuals wanting to raise cattle on their farm must consult a nutritionist about developing rations for their lactating and dry cows.
Consulting experts
Even if a borrower knows everything about dairy farming and how to feed the cattle. It is important to consult an expert before availing either a business loan or a separate dairy loan to establish a farm to ensure business growth and revenue.
Individuals can consult other dairy producers, attend field days and visit open houses in dairy farms in surrounding areas and different parts of the state or country. Visiting other dairy farms will give individuals a fair idea of what should be included in their business plan and help them design a management system.
Develop a waste management program
Dairy cattle produce substantial manure, also referred to as wastes. If this manure is manage and utilise properly. It can be a great resource for the farm. Proper manure management will be closely associate with feeding and cropping program. If individuals can utilise a double-cropping system on their farm, it will bring out more feed and apply more manure on their farm.
Strengthen equity over time
Like any other manufacturing business, dairy farming also involves substantial funding. Equipment, land, buildings, cows are expensive, and individuals planning to start their farms need to purchase everything. Initially, new borrowers purchase cows and rent out their land and farm. These animals are primarily their farm’s equity. In this scenario, borrowers can apply for the new business loans extended by leading NBFCs of the country at competitive interest rates and minimal processing fees.
This type of financing facility is consider a boon for intending borrowers. They can manage their working capital successfully, purchase different equipment and machinery to run their business without any hassle.
Dairy farming involves a biological system
A dairy farm is highly dependent on a cow’s health to produce milk and give birth to calves. Therefore, it requires proper herd health, calf care along with nutrition and financial aspects. Consulting with a veterinarian and genetics representative can assist you in developing a comprehensive plan before availing a loan for dairy farming.
All these factors are just a few pieces of a puzzle. To grow your dairy product business and increase revenue, one needs to convert each aspect of business management into a proper plan.
Thus, individuals planning to take a dairy loan can choose Bajaj Finserv as they provide a substantial loan amount, a flexi-loan facility, and faster approval to eligible borrowers.
They also extend a suite of pre-approved offers on various secured and unsecured financial products to streamline the application procedure. Debtors can check their pre-approved offers by submitting their essential credentials.
Therefore securing a loan for dairy farming it is simple and hassle-free. That can be utilise to meet various farming requirements. Further, this financial option is an ideal choice for entrepreneurs who plan to expand their dairy businesses.
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