dairy farm business plan in kenya

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Dairy Farming In Kenya – Business Plan

Table of contents, land requirement for dairy farming in kenya, housing for dairy farming in kenya, look for a good breed for dairy farming in kenya, factors affecting the production of dairy products, market opportunities for successful dairy farmers in kenya, list of dairy farms in kenya, feeding requirement for dairy farming in kenya, equipment for dairy farming in kenya, steps to start a dairy farming in kenya, health care and management plan in dairy framing in kenya, tips for a successful dairy farming in kenya.

Dairy Farming in Kenya

Hello friends, today we are here with a new topic of “Dairy Farming In Kenya and Business Plan”. Dairy farming in Kenya is an ‘all season’ business and applying efficient management of a dairy farm is the key to success. Dairy farming in Kenya is very important in its contribution to the economies of both the developed and the developing countries of the world. The Kenyan economy is supported to a large extent by the Agricultural sector which is a major contributor to the GDP (Gross Domestic Product). The Agricultural sector supports the majority of Kenyans about 75% of whom earn their living from the farming sector directly or indirectly. Dairy farming in Kenya is the largest Agricultural sub-sector compared to other Agricultural farming. It contributes to about 14% of Gross Domestic Products in Agricultural sector and when combined to Kenya National Goods Domestic Product it produces 3.5%. Dairy production in Kenya is a major farm activity, where it is regarded as a major smallholder, source of income, incorporating over 1.8 million smallholder farm households, who produce over 70% of all milk marketed.

Milk production is a complex process that involves many variables, the input influence milk production which is essential to farmers. There are several factors affecting milk production mainly breed type of feeds, farming practices, and system.

Any aspiring dairy farmer before start-up needs to take the below things into consideration before starting business;

• Investment required;
• Sufficient Land required;
• Type of breeds or number of animals to be acquired;
• Fodder Management;
• Prevention from diseases/vaccination of animals;
• Maintenance of records;
• Research local milk market;
• Climatic conditions.

A Step-by-Step Guide to Dairy Farming In Kenya , Business Plan

Dairy farming mainly involves breeding cows, milking them, and then selling the milk. The dairy farming business is profitable. Though, to build a successful, sustainable milk dairy farming business, you need sufficient knowledge of how to efficiently keep the milk cows, good management skills, and a good dairy farming business plan.

Smallholder dairy farming constitutes an important source of livelihoods to the majority of mixed crop-livestock farmers involved in agricultural production in Kenya. The number of benefits that farmers get from the dairy farming business cannot be underestimated. When done economically dairy farming is a profitable business to venture into. Also, it comes with a wide range of side benefits other than the production of milk such as manure for farming and farmers benefit by the sale of calves from the dairy cows.

The land is also an important factor for starting dairy farming. When selecting land for your dairy farm, some important considerations are the availability of quality and consistent water supply, the size of the land, quality of grass, and grazing pasture. Some other important factors include the availability of already made infrastructure like a good road network, milk facilities, electricity, pens, sheds, and buildings.

Dairy farming in Kenya also needs to set aside some land for fodder cultivation (for 10 cows depending upon soil rainfall, irrigation facilities, land required vary but 1.5 to 2.0 acres).

Some important factors to be considered when choosing land for dairy farming are;

• The presence of suitable fertile soils
• Convenience for transportation within the area
• Proximity to milk collection centers
• Access to water supplies for farming
• Year-round supplies of sufficient clean water
• Highland areas because the air temperature level decreases 6.5°C for every 1000 meters increase in altitude above sea level.

To be successful in the dairy farming business in Kenya, you must provide good and adequate housing for the dairy cows. Housing for dairy cows is required for several reasons like protecting the dairy cattle from adverse weather conditions, confining the milk cows when they are not grazing, and allowing easier management and then control of the dairy milk herd. The best dairy design mainly depends on the local climatic conditions, budgetary constraints, and availability of bedding materials. When designing housing for the dairy milk herd, take into consideration the need to provide adequate space, feed and water facilities, milking facilities, waste management, and livestock handling features.

The different housing structures can be used for a dairy milk farm and these contain free-stall, tunnels, composite barns, tie-stall facilities, and dairy sheds. Also, other dairy milk cow structures are isolation pens, calving boxes, crowding pens, sorting corrals, working chutes and gates, and squeeze gates. Though, the necessity of the structures depends on the size of the dairy farming business. The dairy farm also needs good fencing, to contain the milk cows and manage their grazing. Equipment necessary for a cattle dairy farming business are cows drinking equipment, feeding equipment, buckets and pails, milking equipment, storage tanks, milk processing equipment, livestock trailer, and manure spreader.

These are some of the main dairy breeds found in Kenya;

Some of the characteristics of a Friesian are;

• The Friesian has a milk yield between 25–30 liters per day.
• This cow originated in Holland and is now all over the world. They have a bodyweight of 500-550 kg
• They are heavy feeders having a daily requirement of about 90 to 110 kg of fresh forage.
• Requires large amounts of water.
• The Jersey breed has a milk yield between 15–20 liters per day.
• Purpose – Milk production.
• Average yield – 22 liters/day and 6.3% butterfat.
• The Ayrshire has a milk yield of 20 liters per day.
• The Ayrshire originated in southwest Scotland.
• Ayrshire weights about 450 kg
• The Ayrshire is resistant to some diseases and adapts to varied climatic zones.
• It requires 90 to 110 kg of fresh forage per day.
• The Guernsey cow can give you up to 25 liters per day and the butter content 4.3 %.
• It is known to be fast growers because at the age of about 2 years they are already into milk.
• They weigh about 400 to 500 kgs
• They are moderate feeders taking in 65 to 85 kg of fresh forage daily
• The Fleckvieh breed is multi-purpose and meaning it can be used for milk and meat. It produces between 18 to 20 liters per day.
• Follow the right breeding programs to ensure cow gives birth every year. It’s a huge blessing when a cow gives birth every year. It’s a big deal and it ensures you have a constant flow of milk and new cows to replace the old ones.
• Always use artificial insemination (AI) to breed dairy cows.
• It is cheaper to buy local breeds and use artificial insemination to perfect them over the years.

The dairy sector faces several challenges like Financial, Economic, and Production Resources, Production system, processing, marketing, and institutional problems in dairy product production. These all challenges affect the ability of the dairy sector to compete in the domestic and international markets. Milk production in Kenya is by small-scale farmers and large-scale farmers. Small-scale farmers are those farmers who own 1 to 5 animals and produce about 80% of the milk production in Kenya. Dairy production is affected by the resources available, which is the main to the production. Dairy farmers’ access to loans is equally a challenge, as they cannot offer the biological assets or cows as security and poor financial records and credit history of the farmers.

The Kenyan government through the Ministry of Agriculture has done a lot to improve the breed quality. Though, a lot of effort is needed to introduce new dairy products production systems which are more cost-effective. This can include a zero-grazing system since the farm size continues diminishing as the population continues increasing resulting in fewer dairy products production. Before the dairy sector was liberalized, milk used to be transported by organized milk collection and bulking system in the formal market by individual dairy farmers and dairy co-operative societies.

Factors affecting milk production are;

The amount of milk a cow produces mainly depends on the environment it’s in. The more comfortable the cow, the more amount of milk it will produce. Some environmental factors include;

Weather, climate, and geography – Geography is closely tied to weather and climate conditions. However, if they don’t have a chance to cool down, they will eat less feed and then produce less milk.

Feed – Weather and climate conditions can also affect the feed quality, which translates to the quantity and quality of milk produced. Feed prices can have a large impact on what farmers can use.

Some other important factors include;

Species – Different dairy breeds naturally produce different quantities (and qualities) of milk.

Age – Generally, younger cows produce more milk than older ones.

Milking frequency – Farmers are precise about how frequently cows are milked. The amount of milking per day adds to labor and equipment costs. But waiting too long between milking means quantity and quality will suffer.

Health – Sick cows produce less milk and poorer quality milk than healthy ones.

Dry period – How long a cow is allowed to be “dry” in-between calves impacts how much milk it will give during lactation.

With the growing demand for dairy foods, there is an excellent potential for large-scale milk production in Kenya. Many farmers are adopting modern and advanced dairy farming methods and technologies. The entire country is now gearing towards the dairy farming business.

When we include the fact that Kenya has about 85% of the cattle population in East Africa, we know that there has been no better place to milk cows than Kenya.

List of successful dairy farms in Kenya that are making millions in revenue in the cattle industry.

• Wilsam Dairy Farm
• Goshen Dairy Farm
• Rafiki Farm Ltd
• Da Bulls Mwangaza Farm
• Sychar Farm
• EDFAM Dairy
• Eldoville Dairy
• Olumara Estates Limited
• Meved Dairy Farm
• Chemusian Farm Limited
• Rayside Farm
• Tujenge Farm
• Sameer Agriculture & Livestock Ltd. (SALL)
• Kinangop Dairy limited
• Brookside Dairy Limited
• Lattana Dairy

Proper feeding allows your cows to better performance. Cows are simple creatures and give them food and they will give you milk. Though give them enough good and nutritious food and they will give you a lot of milk.

You may also check this: Guinea Fowl Farming .

Cow forage is divided into 2 groups; Dry and wet. This group constitutes 50% of its daily feed and an example of dry feed is hay. An example of wet feed is silage. You can feed dry and wet forage together or separately and it depends on the farmer. Then, the other half (50%) of feed is comprised of carbohydrates, fats, proteins, minerals, and vitamins. You can find minerals in your local store and mix the minerals with the feed. Protein sources are maize meal, cottonseed cake, sunflower cake, and fish meal, etc.

Here are some of the principles that you should use when selecting a feeding program for your cow. First, analyze the nutritional requirements of your cow. This is determining the condition of cows, for example for pregnant cows; you will select a diet with more supplements if the roughages don’t meet the nutritional requirements.

Increased feeding equals increased productivity. Consider the roughage-concentrate ratio. Ensure that cows are having higher roughage content and this keeps away any digestive disorders. Providing high-quality and appealing diets to cows increases their production and overall health of the cow. Then, good-tasting milk always comes from high-quality feeds given to the cows.

Dairy farming is always a profitable business when it is done economically. Then, the economical way of feeding your cow is growing your fodder. Some feeds will find their way from the blood to the milk and then affect the milk flavor. Ensure the feeds you have for cow don’t affect the quality of the cow’s milk and good tasteful milk is as a result of good quality feeds.

The types of feeds you give to your cows affect milk production. Then, farmers buy cows at high prices, only to make losses once the cows start producing less milk.

You need to give dairy cows fresh fodders, dry feeds, dairy meals, protein, and supplements. You can produce fresh fodder to cut down the expenses of purchasing. Leave the fresh fodder overnight to wilt before feeding it to cows. A dairy cow must eat between 15 and 20 kilograms of forage every day. Finally, make sure that dairy cattle have enough water.

The essential tools and equipment you must procure to start a dairy farming business in Kenya include;

• Milking Machine
• Chaff Cutters
• Parasite Control items like Knapsack Sprayers
• Milk Strainers and Milk Churns

The Basic Requirement of Dairy farming in Kenya;

• Proper shed construction.
• Adequate water supply
• Good breed of cows (High-yielding cows HF, Jersey, and Sahiwal, etc.)
• Fodder management like dry fodder, green fodder, and concentrate
• Proper vaccination schedule

In case if you miss this: Tilapia Fish Farming In Tanks .

For you to have a successful dairy farming business in Kenya, you need to follow these fundamental steps;

Step 1) Market Research

It is mandatory to analyze the chosen market for the dairy business. Carry out surveys to find the area and population of target buyers for your dairy products. Also, you need to decide whether they prefer milk or other products. Then, this will help you maximize the profits from your investment. So, the dairy industry in Kenya has an established socio-economic credential for the country. Then, this means that you can earn a pride factor when you become a dairy producer in the region.

Essentially, a dairy farm is a kind of production and sales business. So, the penning down of a customized and detailed plan of business is something you must consider necessary before embarking on this field. Once you have conducted the evaluations of the macro-environmental aspects of the dairy business, you must construct a detailed business plan to be followed for setting up your dairy farm in the country. The dairy farming business plan in Kenya would be like any other business plan and should consist of financial management, operations management, sales and marketing management, and human resource management plans.

Step 2) Capital and Land

Draw up a realistic plan that depicts your accessible resources and then how you can use them effectively to get enough land and equipment to start. The land size depends on the scale of the business, with housing, grazing areas, and waste disposal parts included. Therefore, the site of your dairy farm is vital to the success of the business.

Step 3) Breed selection and fodder

Before making any decision concerning your dairy farm, the relationship between the environment and the cattle must be investigated. The ecological considerations will help to find the most successful cattle type in Kenya as well as the most plausible fodder type for forage. For starters, consider using 3rd or 2nd dairy crosses instead of high-bred cattle. Also, consider growing your feed instead of buying to save the budget of other financial expenses.

Researching the dairy breeds and species is a mandate before you select the dairy species which you should include in your dairy farm. Each of these animals has multiple breeds. You want to consider the regional environment, climatic and topographic conditions, and the requirements of the dairy farm while choosing the right breed and the right species of dairy animals to be bought for the farm.

Dairy cows are reared in dairy farms in Kenya and but before you buy a dairy cow, you want to analyze the appropriateness of the breeds. Then, you can consult the already established and successful dairy farms, the agricultural extension of local universities, and the government institutions and industry experts to decide about the inclusion of dairy animals in a farm.

Step 4) Management Levels and Production Systems

Spend time finding the right balance between the available resource and the chosen dairy management strategy. In Kenya, intensive schemes where the cattle are enclosed for their life cycles are favored as the more efficient system. Also, labor provisions must be considered, outsourcing some services is cheaper than doing them yourself.

Before you start a dairy farming business, you should focus on developing a detailed farm management plan consisting of an animal health care plan, waste management plan, breeding strategies, and feeding and cropping methods. While selecting the appropriate feeding and fodder practices, farm management practices, waste management, breeding, and healthcare can help you in setting up and running a successful as well as sustainable dairy farm business. Then, you can refer to the globally recognized good dairy farming practices for developing a dairy farm management plan. Looking after the farm animal’s health, hygiene, and well-being of the animals reared in the farm is a thumb rule for making the dairy farm smoothly operational. You must be updated with the latest techniques of dairy cow rearing and breeding. Another of the core practices you must follow for sustainable dairy farm management is the management of waste products and by-products from the operations of the farm.

The dairy farming industry has over the past decade faced numerous and substantive changes and the scaling up for effective milk production through the expanding population in the Kenyan markets. Trends such as technological advancements in the field of animal breeding, supplements, and nutrition, cow health have made it a viable source of income for many farmers in Kenya. Though, most of the dairy farming in Kenya still practices milk production on a small scale area which has largely stagnated.

To start a profitable dairy farm in Kenya, follow these simple tips;

1. Select Suitable Breed for Dairy Farming

The successful cattle breed in Kenya is the Sahiwal, because which is capable of thriving in even the harshest environmental conditions, especially in the arid and semi-arid regions. Some local breeds like the Sahiwal are mostly the logical choices when crossed with exotic breeds. But, consult experts before you finalize whatever plan you have prepared for the dairy farm.

2. Have a Proper Plan

For successful dairy farming in Kenya, planning is key in day-to-day activities. A Detailed Business Plan and SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of any dairy business endeavor are necessary. Also, you can utilize a cash flow diagram in writing out detailed and reasonable expectations and projections.

3. Proper Health Management

Ensure that you have put mechanisms in place for the early detection of diseases in farm animals. Then, this will help with immediate prevention after detection, which will also enhance the treatment regimen being rendered.

4. Recordkeeping

Recordkeeping is imperative to keep farm records on production, sales, feed sources, and breeding. Analyzing the results is key to advancing the prospects of the dairy farm business.

5. Create a Waste Management Plan

Most top dairy farmers in Kenya have robust waste management plans on their priority list. One of the essential things to consider before starting dairy farming in Kenya is waste management. If you have decided to invest in a cropping and feeding program, you can exploit the waste from the dairy farm, and which comes in the form of manure, to get better yield and maximize profits.

6. Feeding the Animals

It is advisable to cut the feed into bits to minimize wastage in the feeding process in the dairy business. Also, soak the feed with molasses soaked in water to soften it and then make it easier for the cattle to eat. If you can invest in dairy farming training in Kenya, the chances of success in this dairy sector can increase manifold because you need to have skilled and well-trained people working on your farm. The new age dairy farm owners stress the need for dairy farming record-keeping to obtain maximum efficiency in the management of the dairy farms.

Keeping records about the dairy cows and the farm is not only mandatory for meeting the legal and regulatory requirements in Kenya but records can also be useful for dairy farm management. Then, the information derived from these records can help the owners of the farms to make better and informed management decisions. It also creates scope for the owners to identify the areas of the dairy farm business which need improvement. Using the latest methods such as embryo transfer technology, milk recording, automatic milking systems, sensor technologies, and milk analyzers can boost the efficiency of the dairy farm.

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How To Start Dairy Farming In Kenya, 2022, A Profitable Business Guide

How is dairy farming in Kenya?

I know this question runs through the minds of many who have agriculture at heart in Kenya, East Africa, and even the entire Africa at large.

For an industry that provides employment, food, and income to as many as 1.8 million people in Kenya, few words can be said to perfectly describe the importance of dairy farming.

It is the most valuable agricultural sub-sector in Kenya, with a GDP contribution of about four percent (4%).

Dairy farming in Kenya has come a very long way from its initial subservient role in Kenya’s economic landscape since the 80s and 90s.

To prove its influence in the employment sector, over 80% of small-scale dairy farmers make a living, which makes a better market for the ordinary Kenyan citizen.

With the recent adoption of medium-scale dairy farming, most farmers utilize modern systems in doing an inevitably more efficient dairy farm in Kenya.

READ ALSO : Top 20 Business Ideas In Kenya For Successful Entrepreneurs .

Market Opportunities For Successful Dairy Farmers In Kenya

With the growing demand for dairy foods, both in provincial and domestic areas, there is an excellent potential for large scale milk production in Kenya.

Many farmers are adopting modern and advanced dairy farming techniques and technologies. Also, well-established systems and policies are being put in place with support from those in authority.

In fact, the entire country is now gearing towards dairy farming and its related industries.

When we include the fact that Kenya has 85% of the cattle population in East Africa, we know that there has been no better place to milk cows than Kenya.

Recommended reading: How To Start Poultry Farming In Kenya .

List Of Dairy Farms In Kenya

Here is the list of some successful dairy farms in Kenya that are making millions in revenue in the cattle industry.

• Wilsam Dairy Farm
• Goshen Dairy Farm
• Rafiki Farm Ltd
• Da Bulls Mwangaza Farm
• Sychar Farm
• EDFAM Dairy
• Eldoville Dairy
• Olumara Estates Limited
• Meved Dairy Farm
• Chemusian Farm Limited
• Rayside Farm
• Tujenge Farm
• Sameer Agriculture & Livestock Ltd. (SALL)
• Kinangop Dairy limited
• Brookside Dairy Limited
• Lattana Dairy

Steps To Start A Dairy Farm In Kenya

For you to have a successful dairy business in Kenya, you need to follow these fundamental steps:

Step 1. Market Research

Carry out surveys to determine the area and population of target buyers for your dairy products. Moreover, you need to decide whether they prefer milk or other products. This will help you maximize the profits from your investment.

Step 2. Capital and Land

Draw up a realistic plan that depicts your accessible resources and how you can use it effectively to get enough land and equipment to start.

The size of the land depends on the scale of the business, with housing, grazing areas, and waste disposal parts included. Hence, the site of your dairy farm is vital to the success of the business.

Step 3. Ecological Considerations

Before making any decision concerning your dairy farm, the relationship between the environment and the cattle should be investigated.

Step 4. Breed selection and fodder

The ecological considerations will help to determine the most successful cattle type in Kenya as well as the most plausible fodder type for forage.

For starters, consider using third or second dairy crosses instead of high-bred cattle. Also, consider growing your own feed instead of buying to save your budget of other financial expenses.

Step 5. Management Levels and Production Systems

Spend time finding the right balance between the available resource and the chosen management strategy.

In Kenya, Intensive production strategies where the cattle are enclosed for their life-cycles are favored as the more efficient system.

Also, provisions for labor should be considered, outsourcing some services are cheaper than doing them yourself. This way, you do yourself the favor of not trying to do everything yourself and focus on what only you can do.

Related article: Complete List Of Farming Opportunities In Africa .

Tips For A Successful Dairy Farm Business In Kenya

To start a smart and profitable dairy farm in Kenya, follow these simple tips:

1. Select Suitable Breed For dairy Farming

The most successful cattle breed in Kenya is the Sahiwal, which is capable of thriving in even the harshest environmental conditions, especially in the arid and semi-arid regions.

Local breeds like the Sahiwal are mostly the logical choices, especially when crossed with exotic breeds. Nevertheless, consult experts before you finalize whatever plan you have prepared for the dairy farm.

2. Proper Health Management

Ensure that you have put mechanisms in place for the early detection of diseases. This will help with immediate prevention after detection, which will also enhance the treatment regimen being rendered.

Create and implement a vaccination program as well as deworming and scheduled dipping control processes.

3. Recordkeeping

It is imperative to keep and update farm records on production, sales, feed sources, purchases, and breeding.

Analyzing the results is key to advancing the prospects of the dairy farm. Unfortunately, recordkeeping is not prioritized among those engaged in dairy farming in Kenya .

4. Feeding The Animals

It is advisable to cut the feed into bits to minimize wastage in the feeding process. Also, soak the feed with molasses soaked in water to soften it and thus make it easier for the cattle to eat.

Things You Should Consider Before Starting A Dairy Farm In Kenya

Here are some of the things you should consider once you start a dairy business in Kenya:

Have A Proper Plan

For a successful dairy farming in Kenya, planning is key in your day-to-day activities.

A Detailed Business Plan and SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of any business endeavor is necessary.

There is simply no room for risk in any business establishment, and dairy farming is no exception.

Don’t leave anything to chance.

You need to have a clear and spelled-out idea of the size of your cow herd, your target market, your labor, and employment strategy as well as your expenses.

You can utilize a cash flow diagram in writing out detailed and reasonable expectations and projections.

Create A Waste Management Plan

Most top dairy farmers in Kenya have robust waste management strategies on their priority list.

That is a fact!

One of the most essential things to consider before starting a dairy farm in Kenya is waste management.

If you have decided to invest in cropping and feeding program, you can exploit the waste from the dairy farm, which comes in the form of manure, to get better yield and maximize the profits.

Pasture Management In Kenya

There are a lot of identified issues with pasture management in dairy farming in Kenya.

One of which is the effect of overgrazing, which leads to terrible plant growth. Also, due to the insufficient DMI (dry matter intake) or inadequate supplemental feeding, the cattle might develop poor reproductive abilities among other probable problems.

Also, parasites have mainly contributed to the headaches of most small scale dairy farmers all over Kenya. That is why it is widely advocated that farmers watch the nutritional value of the feed offered.

It is wise to include plants with high tannin content like brambles, birdsfoot trefoil, and chicory while improving soil fertility through compost to reduce parasite loads.

Milking The Cow

It’s ridiculous to think that one would forget to do the most significant thing that principally yields the primary income of an investment.

But don’t take things for granted. Ensure that you milk your cows at fixed times, following a strict and prudent procedure. Milking your cows two (2) to three (3) times every day should be enough .

Recommended reading: How To Start Snail Farming In Nigeria .

Dairy Farming Equipment

The most essential tools and equipment you must procure to start a dairy farming business in Kenya include:

• Milking Machine
• Chaff Cutters
• Parasite Control items like Knapsack Sprayers
• Milk Strainers and Milk Churns

Smart Dairy Farming Job Opportunities In Kenya

There are other job opportunities that have contributed to most of the success stories of dairy farmers in Kenya.

Dairy farming is not an industry meant for the dairy farmer alone. It employs the efforts and services of various people for different reasons.

Some of these include milk transporters, milk and manure traders and vendors, the staff of dairy associations.

Not only that but also milk processors (small and large scale), farm input dealers and service providers as well as retailers and distributors are all job opportunities created by dairy farming in Kenya.

Processing Dairy Products

The largest population of Kenyans favor raw milk because it is cheaper than processed milk, by about 20 to 50 percent.

It has a unique taste with high nutritional content. In fact, 85 percent of marketed milk is sold raw, even with the health risks it presents.

Processing dairy products in Kenya can create massive employment for the teeming youth in the country.

Cost Involved In Setting Up A Dairy Farm In Kenya

Setting up a dairy farm in Kenya is extremely capital intensive . The cost of the cattle itself is usually between 50,000 – 100,000 KSh, with the price variability dependent on the milk-producing capability and breed of the cow.

But those are not the only costs to consider. The land and equipment, as well as the construction of the various fundamental structures, will add to the costs depending on your business plan.

You would also have to consider the costs of labor which could cost a maximum of 4,000 Kenyan Shillings every month.

How Profitable is Dairy Farming in Kenya?

Dairy farming is an attractive investment in the private sector due to its steady income. With a Sample of six cows in milk, it could cost between 10-12 KSh for producing one kg of milk.

An investment that can yield up to 120,000 KSh every month for 150 -170kg of milk produced every day. Out of which a profit of up to 60,000 Kenyan Shilling can be realized.

Also, at the same rate, 5,000 – 6,000 KSh can be achieved from selling manure.

This simple and easy article Was Last Updated on December 6, 2022 by Nana Abrokwa

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Think Once.Think Twice.Think Business.

How to Create a Dairy Farm Business Plan

By Elijah Ludenyi

Last updated on March 2nd, 2024 at 05:51 pm

Are you passionate about the dairy industry and considering starting your own dairy farm? Crafting a well-structured business plan is crucial for the success of any venture, and a dairy farm is no exception.

In this blog post, we will guide you through the steps of writing an effective dairy farm business plan to help you get started on the right track. So, let’s dive in!

How do I write a dairy farm business plan?

1. prepare your executive summary.

The executive summary serves as an introduction to your dairy farm business plan. It should provide a concise overview of your business concept, objectives, target market, and financial projections. Remember, the executive summary is the first thing potential investors or lenders will read, so make it compelling and captivating.

2. Provide Company Description

In this section, provide a detailed description of your dairy farm. Explain your vision, mission, and core values. Discuss the type of dairy products you plan to produce, such as milk, cheese, butter, or yogurt. Highlight any unique selling points that set your farm apart from competitors. Additionally, include information about your legal structure, ownership, and management team.

3. Analyze your Market

Conduct thorough research to understand the current market conditions and identify your target audience. Analyze the demand for dairy products in your area and assess the competition. Identify your unique selling proposition and outline your marketing strategies to reach your target market effectively.

4. Prepare your the Organization and Management

Detail the organizational structure of your dairy farm. Specify the roles and responsibilities of each team member and highlight their relevant experience and qualifications. If you have any advisors or consultants, mention them as well. Investors want to see that you have a competent and experienced team to execute your business plan successfully.

5. Outline your Products and provide a description

Outline the different dairy products you plan to offer and provide a comprehensive description of each. Discuss the production process, quality control measures, and any certifications or standards you plan to adhere to. The more detailed and specific you are, the more confident investors will be in your ability to deliver high-quality products.

6. Develop Marketing and Sales Strategies

Describe how you will promote and sell your dairy products. Identify your target market segments and outline your marketing channels, such as online platforms, local farmers’ markets, or partnerships with local retailers. Develop a pricing strategy that is competitive yet profitable. Include a sales forecast that demonstrates your projected revenue.

7. Explain your Operational Plan

Explain the day-to-day operations of your dairy farm. Discuss the location, facilities, and equipment you will need. Outline your production process, including the sourcing of raw materials, feed management, and animal care. Address any regulatory or environmental considerations that may be relevant to your operations.

8. Present your Financial Projections

This section is crucial for attracting investors. Present a detailed financial forecast, including startup costs, monthly expenses, revenue projections, and profit margins.

Include a break-even analysis and a timeline for when you expect to reach profitability. Consider consulting with a financial expert to ensure accuracy and credibility.

9. Risk Assessment and Mitigation

Identify potential risks and challenges that your dairy farming business may face. Develop strategies to mitigate these risks and discuss contingency plans. This will demonstrate to investors that you have considered potential obstacles and are prepared to overcome them.

10. Appendix

In the appendix, include any supporting documents, such as permits, licenses, market research data, resumes of key team members, and any other relevant information that adds credibility to your business plan.

Writing a comprehensive dairy farm business plan may seem daunting, but it is an essential step towards setting up a successful venture. By following these steps and investing time and effort into researching and writing your plan, you’ll be well-prepared to launch and grow your dairy farm.

Remember, a well-crafted business plan not only helps you secure funding but also serves as a roadmap for your future operations. Continuously review and update your plan as your business evolves. Good luck on your dairy farm journey!

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Starting Dairy Farming Business Plan (PDF)

Starting a dairy farming business is a rewarding and sustainable venture for entrepreneurs looking to make a significant impact in the agricultural sector. As the demand for dairy products continues to grow globally, the opportunity to enter this market is ripe with potential. Dairy farming not only promises a steady supply of products that are always in demand, such as milk, but it also offers the satisfaction of contributing to food security and the agricultural economy.

Milk and its products are cardinal parts of many people’s diets. This is what makes dairy farming such a lucrative livestock farming business idea. Dairy farming is a scalable business with projectable financial outlooks. It is a somewhat technical venture which requires specialized knowledge and skills. That is not a big problem though because you can always acquire the relevant knowledge and skills.  Dairy farming involves breeding cows, milking them, and selling the milk. To build a profitable, sustainable milk dairy farming business, you require sufficient knowledge of how to efficiently keep the milk cows, good business management skills, and a good dairy farming business plan. This article will outline how to start the dairy farming project, and the dairy farming business plan – PDF, Word and Excel.

Dairy farming is a lucrative business, providing income for many farmers, but there are some essential things you need to do before you venture into the dairy milk production business. You have to decide on the size of your dairy farming project (how many dairy cattle will you keep?); location of the milk dairy farming business, and your target market. These choices will be affected by the amount of capital you have, and the size of your target market. If you do not have a lot of capital, you can always start small and grow your milk dairy farming project overtime. You also need to carry out market research (Who are you going to sell the milk to? At what price?) and write a dairy farming business plan before you start the dairy farm project.

Market Research

Before venturing into dairy farming, conducting thorough market research is crucial. This process involves understanding the demand for dairy products in your target market, analyzing the competition, and identifying potential customers. The supply chain is a critical aspect of your market research when starting a dairy farming business. It involves mapping out the entire journey of your dairy products, from farm to consumer, as well as the sourcing of feed and equipment. Identify the key players in the supply chain, such as wholesalers, distributors, retailers, and transportation providers, and understand their roles and requirements. Additionally, assess the sources from which you’ll acquire feed for your cattle and equipment for your farm operations. Analyze the logistics and infrastructure needed to ensure a smooth flow of dairy products, feed, and equipment from their respective sources to your farm and, ultimately, to the end consumers. A well-optimized supply chain is vital for ensuring product freshness, minimizing wastage, and meeting delivery timelines, all of which are essential for the success of your dairy business. Also calculate the initial investment required to start your dairy farm, including the cost of land, livestock, infrastructure, and operational expenses. Develop a detailed financial plan, projecting income and expenses over the next few years. This will help you determine if your business is financially viable.

Part of your essential market research is understanding the pricing dynamics of milk in your target market. You need to ascertain the current price range for milk products and analyze any variations based on factors like quality, packaging, and distribution channels. Furthermore, it’s crucial to identify your potential customers, their preferences, and purchasing habits. Determine how frequently they order dairy products and in what quantities. This information will not only help you set competitive pricing for your dairy products but also tailor your production and marketing strategies to meet the specific demands of your customer base, ensuring a successful entry and sustained growth in the dairy farming business.

Land for Dairy Cattle Farming Business

A substantial portion of land is need for dairy farming. This is because there are several things that must be accommodated. On average, between 1.5 and 2 acres must be available per cow and calf grazing. You also need a number of dairy farm structures for different purposes. For instance, you need dedicated areas for watering, waste management, equipment storage, milking processes, milk storage, feed storage, and maternity, amongst others. These can be self-contained in separate stalls, barns, or rooms, actual buildings. If there are dairy farm workers and they have to stay onsite, living quarters for them would be needed. Put all that together and factor in the number of cows to have a good idea of the total land size you would need for your dairy farm business.

Another consideration is the general climate of a chosen area. An ideal place would be where the climate promotes the growth of rich pastures. The land should have good water drainage. The soils should have good drainage as well. Those elements are critically important for infrastructural development on the dairy farm. The cattle dairy farm location should not be too close to public spaces e.g. residential areas. It is also important to ascertain that the land in question can be used for dairy farming business. Generally, there are procedures and regulations to be adhered to. Checking with the relevant local authorities is a must. Consider availability of quality and consistent water supply, the size of the land, quality of grass and grazing pasture and the soil type is it affects pasture quality.  Other factors include availability of already made infrastructure like good road network, milk facilities, dependable electricity, pens, sheds, buildings. Constructing buildings for a dairy farm is expensive, so it would be an advantage if some buildings are already there. 

Housing For Dairy Farm Business

To be successful in the dairy farming business, it’s important that you provide good and adequate housing for the dairy cows. Housing for dairy cows is required for several reasons: protecting the dairy cattle from adverse weather conditions, confining the milk cows when they are not grazing, and to allow easier management and control of the dairy milk herd. The best dairy design depends on the local climatic conditions, budgetary constraints and availability of bedding materials. When designing housing for the dairy milk herd, take into consideration the need to provide adequate space, feed & water facilities, milking facilities, waste management and livestock handling features.  There are many different structures which can be used for a dairy milk farm, and these include free-stall, tunnels, composite barns, dry lots, tie-stall facilities and dairy sheds. Other dairy milk cow structures include milking parlour, sick/isolation pens, calving boxes, crowding pens, sorting corrals, working chutes & gates, and squeeze gates. However the necessity of the structures depends on the size of the dairy farming business. 

The housing needs for dairy farming business are informed by the different production stages. The dairy milking herd needs to be housed in its own area. They can be housed in stalls or barns which come in different designs. For instance, if you have a small dairy herd you can set up tie stalls. Typically many dairy farmers start off with what are called bedded-pack barns. These are basically enclosed sheds where there is no flooring but just the basic earth. It is usually from this that many, over time, transition or upgrade to more sophisticated dairy farm housing. When it comes to dairy cattle heifers, the hoop barns are the most common housing. Age-wise we are looking at cows between 6 months and heifers. Dairy hoop barns have different designs. One type of hoop barns has a dome-shaped roof. Another type is like a shed, one-sided with a single slope roof. There can be variations to the dairy housing depending on the size of the heifers. More tweaks become necessary as the heifers grow in size. Dairy calves can be housed in hutches. The hutches can be placed outdoors, which is typical. However, adverse weather conditions can make it necessary to place them indoors. The best indoor environment can be barns. From weaning till they are around 6 months old, you can use simple sheds. Just as long as you can provide the pasture they need. Alternatively, you can use hoop sheds. To control and streamline their feeding you can install headlocks. This will ensure they feed orderly without tussling with each other. The dairy farm also requires good fencing, so as to contain the milk cows and manage their grazing. Dairy farm fencing can be by barbed wire, high tensile smooth wire or electric fencing. The dairy milk farm business plan should include the costs of constructing the housing.

Dairy Farm Equipment

There is a wide range of equipment needed in dairy farming business. What you will need depends on your scale or production i.e. number of dairy cows. The other factor is the level of sophistication of your dairy farming operation. At the most basic you need protective clothing such as overalls, boots, gloves, and the like. For day to operations you need equipment such as tractors, trailers, ropes, chains, and loaders. You also need feeders and drinkers – these can be items or in the form of mechanized or digitized systems.

Tags or a tagging system is needed for the dairy cows. Specialized cutters or grinders for hay (or straw) come in handy. You can also have specialized cutters or grinders for green fodder. Ventilation equipment is of importance and so is waste management equipment e.g. manure pits. Milking equipment is obviously required. You will need milk cans or tanks; depends on your capacity. Milking machines, pasteurizers, and homogenizers also come in. The cost of buying the equipment should be included in the dairy cattle farming business plan. 

Breeding Stock for Dairy Farming Business

To start a dairy milk production business, you require the dairy breeding stock: bulls (male cattle) and milking cows (female cattle). A dairy farm can also be operated without bulls, by using artificial insemination for breeding the milking cows. The cows should breed every year, as milk production only happens after the cows have given birth to calves. The decision of which dairy breed to use is important, and affects the success of your milk production business.

The breeds you choose will affect the milk production potential of your dairy farming business. Some breeds are better than others at producing good milk quality. The quantity of milk produced also varies depending on the breed of the milk cow. Other characteristics which vary among breeds include breeding age, productive lifespan, adaptation to different environmental conditions & climates, calving ease, feed conversion, diseases resistance, and average birth weight. When choosing breeding stock it is usually wise to look for purebreds. Purebreds normally have detailed information available on their breeding and ancestry history. Some of the most common breeds used in the dairy farming business are Holstein, Red and White, Jersey, Brown Swiss, Guernsey, Ayrshire, Milking Shorthorn. Other noteworthy breeds are Kerry, Dutch Belted, Dexter, and Milking Devon. The dairy farm business plan should include the costs of acquiring the dairy cattle breeding stock.

Feed And Nutrition

Feeds for dairy cattle come in two broad forms namely concentrates and forages. There are also dairy supplementary feeding options that can be considered. Concentrates (usually grain-based) are important because of their high energy and protein content. Forages are essential for the dairy cows as they are good sources of fiber and are typically legume or grass-based. Supplementary feeding of dairy cattle fills gaps that can be there nutrition-wise. For example, molasses is calcium-rich, amongst other essential nutrients. There are 3 common feeding approaches that are used. These are feeding using total mixed ratios, component feeding, and using pastures. Total mixed ratios entail proportionately mixed all-in-one meals. Component feeding as the name suggests involves feeding component by component e.g. forages, concentrates, and so on. Using pastures is by the commonly known paddocking system.

The success of your dairy milk production business is affected by the feeding system that you use. The feeding program of the dairy farming business should ensure that adequate nutrition is provided to both the cows and calves at all growth stages and during all seasons. This should be done while keeping an eye on the feed costs, as they greatly affect profitability of the dairy milk farming business. Dairy cattle need a daily supply of all nutrients required for maintenance and production: milk, meat, growth and pregnancy. Failure to provide adequate feeding for the milk cows and calves results in low milk production, poor reproductive performance, poor growth of the calves and poor disease resistance. These factors all lead to reduced revenues for the dairy milk production business, thus lower profits. The common feeding programs of dairy farming business are usually based on pasture grazing, in combination with supplementary feed. The supplementary feed for dairy cows include concentrates, hay, corn, fodder, salts & minerals, silage, commercial dairy cow feeds and grains. The feed costs should be included in the dairy farming business plan.

Health & Disease Management

Ensuring the health and well-being of your dairy herd is paramount to the success of your dairy farming business. A comprehensive health and disease management program is essential to maintain the productivity of your cattle and the quality of your dairy products. Regular health checks, observation of behavior, and adherence to recommended vaccination schedules are critical components of routine health monitoring. A comprehensive disease prevention and control strategy is vital. This includes implementing quarantine procedures for new animals entering your farm and biosecurity measures to minimize the risk of disease transmission. Preparedness for disease outbreaks, including isolating and treating sick cattle promptly, is crucial to prevent the spread of illness within the herd.

Proper nutrition, sanitation, and hygiene play a pivotal role in preventing diseases and maintaining herd health. A balanced diet tailored to the specific nutritional needs of your cattle, along with clean living conditions and access to clean water, are vital. In addition, establishing a strong partnership with a qualified veterinarian, maintaining meticulous records, and providing proper training to farm staff are essential for effective health and disease management. Effective record-keeping is another cornerstone of health and disease management. Maintaining detailed records of your herd’s health history, including vaccinations, treatments, and observed health issues, allows you to track trends, make informed decisions, and continuously improve your health management practices. Prioritizing these measures not only safeguards the welfare of your cattle but also contributes to the production of high-quality dairy products, ultimately ensuring the success and sustainability of your dairy farming business.

Dairy Farming Business Model

In the dairy farming business model, your primary assets are your bulls and milk cows, which are carefully managed to ensure a sustainable source of income. The process begins with the mating of these cattle, either through natural reproduction or artificial insemination, to produce calves. Once the milk cows give birth, they commence milk production, which becomes a core revenue stream for your operation. The milk produced can be sold to various markets and consumers, contributing significantly to your income.

In addition to milk production, the management of the calves born is crucial. Some of these calves can be raised to replace the breeding cattle in your herd, ensuring the continuity of your dairy operation. Others can be sold at birth, providing an additional source of revenue. To maintain the health and productivity of your herd, you’ll also need to cull some breeding cows over time due to factors like old age or poor milk production, and these cows can be sold as well. While the business incurs expenses, particularly in feed costs, the revenue generated from selling milk, calves, and culled cattle far exceeds these input costs and operating expenses, resulting in a healthy profit. This cyclical and sustainable approach ensures a continuous source of income for your dairy farming business, making it a viable and lucrative venture.

Capital for Dairy Farming Business

The amount of capital required for the milk dairy farming business depends on the size of the project. When starting a dairy milk production business, most of the capital goes to acquiring the land, building infrastructure, and buying the dairy cows & bulls. You can get a loan from the bank, or funding from investors, to use as capital to start your dairy farming business. If you plan to raise capital from investors and a loan from the bank, you need a good dairy farming business plan. If you don’t have access to investors and bank loan, you can use your personal savings and start small, and grow your dairy farming business overtime. Dairy cattle farming is very profitable, so if you reinvest the profits you get, you can grow over time. Even if you are not planning to get a loan, you should still get a dairy farming project plan to guide you in starting and operating the business. It is essential for you to have a dairy farming business plan before you venture into the dairy milk production business, so that you know all the costs involved and you make an informed decision.

Market for Dairy Milk

Milk is often regarded as being nature’s most complete food because it provides many of the nutrients which are essential for the growth of the human body. Being an excellent source of protein and having an abundance of vitamins and minerals, particularly calcium, milk can make a positive contribution to the health of a nation.

The market for milk is very huge and is ever increasing, annual milk global demand exceeds 800 million tonnes. Your dairy farming business can sell raw or processed milk. The market for dairy milk includes supplying to milk processors, grocery stores, schools, companies, individual households, organisations etc. It’s important for the dairy farming business plan to include a proper marketing plan to use in your milk dairy farming business.

Keys to Profitability in Dairy Farming

Achieving profitability in the dairy farming business is a multifaceted endeavor that demands a strategic approach and a deep understanding of industry dynamics. Several crucial keys can unlock the path to profitability and financial sustainability. First and foremost, efficient herd management is essential. Selecting cattle with high-quality genetics, implementing effective breeding programs, and maintaining proper nutrition can enhance milk production while reducing operational costs. Regular health checks and disease prevention strategies are equally vital to minimize veterinary expenses and maintain overall herd health.

Optimizing feed and nutrition is another pivotal factor. Balancing your cattle’s diet with the right feed and nutrition can maximize milk production and minimize feed costs. Regular assessments of feed quality and collaboration with nutritionists can ensure that your dairy cattle receive the necessary nutrients for optimal health and productivity. Sustainable farming practices are increasingly important, not only for environmental reasons but also for cost reduction. Responsible waste management, efficient water usage, and energy-efficient facilities can lower operational expenses and appeal to eco-conscious consumers.

Controlling costs and streamlining efficiency are critical for profitability. Regularly reviewing expenses and identifying areas for cost-cutting without compromising animal welfare can have a substantial impact on your bottom line. Diversifying income streams beyond milk sales can mitigate risks associated with market fluctuations. Exploring opportunities such as selling surplus calves or producing value-added dairy products can help stabilize revenue. Effective marketing and branding, supported by a strong brand identity and customer engagement, can set your dairy farm apart in the competitive market and even command premium prices for your products.

Advantages of Dairy Farming Business

Launching a dairy farming venture comes with a host of distinct advantages that make it an appealing agricultural pursuit. Central to these benefits is the stable and unwavering demand for dairy products. Staples like milk, cheese, yogurt, and butter maintain a consistent presence in households worldwide, ensuring a dependable source of income for dairy farmers. This steady demand provides a reliable source of income, reducing the uncertainty that can be associated with other agricultural ventures. Furthermore, the potential for high returns on investment adds to the allure of dairy farming. With proper care and management, dairy cattle can produce milk for several years, providing an ongoing revenue stream. Additionally, the production of value-added dairy products, such as cheese and yogurt, can command premium prices in the market, further enhancing profitability. Dairy farming also offers diversification opportunities, allowing farmers to explore various income streams beyond milk sales. These can include selling surplus calves, producing dairy-based products, or even engaging in agritourism activities on the farm. Such diversification not only strengthens financial stability but also reduces risk, contributing to the sustainability of the business. A well-maintained dairy herd can provide long-term potential for your business. Cows can produce milk for several lactation cycles, and if managed properly, they can remain productive for years. This longevity offers stability and the opportunity to build a sustainable, generational farming legacy.

Why You Need A Dairy Farming Business Plan

A business plan is an essential tool for financial planning and management. It helps you estimate the initial capital required to start your dairy farm, including expenses for land, cattle, infrastructure, and operational costs. With a well-defined financial plan, you can budget more effectively. A dairy farm business plan is instrumental in helping you gain a comprehensive understanding of the profitability of your dairy farming business and the myriad factors that influence it. It serves as a financial compass, allowing you to assess the potential income and expenses associated with your operation, thereby providing a clear view of your farm’s profitability. Factors such as the cost of feed, veterinary care, labor, milk prices, and market demand all play pivotal roles in determining the bottom line. With this insight, you can make informed decisions to optimize profitability by identifying cost-saving opportunities, diversifying income streams, and implementing strategies to mitigate risks, ensuring the long-term financial success of your dairy farming venture. A well-crafted business plan also serves as a powerful tool for securing funding. When seeking financial support from investors, lenders, or potential partners, a comprehensive business plan demonstrates your commitment, professionalism, and a clear strategy for success. A robust business plan not only showcases your dedication but also provides prospective funders with the information they need to evaluate the viability and potential return on investment of your dairy farming business, making it a crucial asset in securing the necessary capital for your agricultural endeavor.

Pre-Written Dairy Farming Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the dairy farming business, we encourage you to purchase our well-researched and comprehensive dairy farming business plan. We introduced the business plans after discovering that many were venturing into the dairy cattle production business without enough knowledge and understanding of how to run the dairy milk production business, how to keep the dairy cows, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global dairy business plan will make it easier for you to launch and run your dairy cattle farming business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the milk cows farming business.

Uses of the Dairy Farming Business Plan (PDF, Word And Excel)

The milk cows farm business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your milk cows farming business
• As a dairy farming business proposal
• Assessing profitability of the dairy milk production business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Dairy Business Plan (PDF, Word And Excel)

The dairy farming business plan include, but not limited to:

• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Risk Analysis
• Industry Analysis
• Market Analysis
• SWOT & PEST Analysis
• Operational Requirements (Including technical aspects of how to keep the dairy cattle, feed requirements etc)
• Operational Strategy
• Why some people in dairy farming business fail, so that you can avoid their mistakes
• Ways to raise capital to start your dairy milk farm business

The Pre-written dairy farm business plan package consists of 4 files

• Dairy Farming Business Plan – PDF file (Comprehensive Version – 124 Pages)
• Dairy Cows Farm Business Plan – Editable Word File (Comprehensive Version – 124 Pages)
• Dairy Cattle Farming Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 52 pages)
• Dairy Farming Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the number of dairy cattle, selling price of the milk etc, and all the other financial statements will automatically adjust to reflect the change.

Click below to download the Contents Page of the Dairy Farming Business Plan (PDF)

Testimonial 3

I was extremely lucky to come across StartupBiz Global. Their business plan exceeded my expectations, and most importantly I was able to secure a loan from my bank. Thank you guys, now my dreams are coming true!

Testimonial 6

I purchased a business plan from you, and I’m glad to inform you that I was able to get my loan, and I’m starting my poultry farming business on the 1 st of July. This was made possible because of your business plan. Thank you very much, you made my dream come true.

Testimonial 4

The business plan which I purchased from your website saved me TIME and MONEY! The layout of the business plan was excellent. The financial statements were detailed and easy for me to edit. I will come back to purchase another business plan soon.

Testimonial 1

StartupBiz Global provided a very professional and comprehensive business plan which I used for my business. The business plan was easy to edit, and I was able to get the funding which I wanted. I highly recommend their business plans.

Testimonial 8

Just wanted to say I am very happy with the business plan and I will gladly recommend your products, thank you very much and have a great day.

Testimonial 5

I was able to understand the business side of farming because of your business plan. You did extensive research; the business plan was well prepared and fully detailed.  It made everything clear, and I have somewhere to start now. I am confident that I am going to succeed in my business because of the guidance from your business plan.

Testimonial 7

I found Startupbiz Global online when I was in desperate need of a business plan. I was overwhelmed by the quality of the business plan, it’s comprehensive and well researched! I did not have to wait to get the business plan, I got it instantly after payment. I highly recommend Startupbiz Global, and would happily use them again in the future.

Testimonial 2

Many thanks for your incredibly efficient service and thorough business plan. I am very impressed with the business plan. Before I bought the business plan, I tried to do my own business plan – it was such a nightmare and it turned out badly, also not to mention the stress it caused me. I wish I knew about your website earlier!

Get the Dairy Farming Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your dairy farming business! Check out our collection of business plans  , and more business ideas .

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How To Start A Dairy Farm Business In Kenya With Low Capital

WDairy farming in Kenya is among the top best Agribusinesses in Kenya that is really transforming lives of many. If you are always passionate about dairy animals then this dairy farm will work well for you.

There are two types of dairy farming: Large scale and small scale dairy farming in Kenya.

Here is the procedure on how to start a dairy farm in Kenya:

Step 2. Write a tactical dairy farming business plan in Kenya that will help you have strategies in achieving the best.

Step 5. Have a strategy on the health care and management plan that will back you up in case of health issues.

Cost of Starting Dairy Farming In Kenya

The cost of starting a dairy farming in Kenya ranges from Ksh.100,000 to Ksh.1,000,000.

You also need to create a conducive environment for the cows, have someone to offer help and get enough feeds plus water. Veterinary services are a must to succeed as a dairy farmer.

List Of Dairy Farms In Kenya

2. Ruai Tharuyu Farm in Nairobi.

3. Dairy Pesa Farm.

At Kenyans Consult, we are proud Kenyan writers. We write anything that pertains to Kenya and is worth sharing. We hope to share more about Kenya with the world through our writing. Check our articles to learn more about Kenya.

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Dairy Farm Business Plan Template

Written by Dave Lavinsky

Dairy Farming Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their dairy farming businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a dairy farming business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Dairy Farm Business Plan?

A business plan provides a snapshot of your dairy farm as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Dairy Farm

If you’re looking to start a dairy farm, or grow your existing dairy farm, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your dairy farm in order to improve your chances of success. Your dairy farming business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Dairy Farming Businesses

With regards to funding, the main sources of funding for a dairy business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for dairy farming businesses.

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How to write a business plan for a dairy farming business.

If you want to start a dairy business or expand your current one, you need a business plan. Below we detail what should be included in each section of your dairy farming business plan:  

Executive Summary

Your executive summary provides an introduction to your dairy farming business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of dairy farm you are operating and the status. For example, are you a startup, do you have a dairy farm that you would like to grow, or are you operating dairy farming businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the dairy farm industry. Discuss the type of dairy farm you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of dairy farm you are operating.

For example, you might operate one of the following types of dairy farming businesses:

• Freestall dairy farm : this type of dairy farm provides plenty of ventilation for ultimate comfort for the cow as well as freestall barns which allow the cows more freedom to eat, drink, and rest wherever they like.
• Drylot dairy farm: this type of dairy farm is suitable for drier climates and cows are given access to shade and shelter on a large dry-dirt ot for relaxation. The cows have plenty of room for feed and water and free reign to eat and drink as they please.
• Pasture-based dairy farm: this type of dairy farm is a more traditional setup where cows receive an “all access pass” to green pastures to graze and rest when they are not being milked in the milking parlor. This type of dairy farm also provides cows feed and water in the barns and provide enough cover for inclement weather when needed.

In addition to explaining the type of dairy farm you will operate, the Company Analysis section of your dairy farming business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, reaching X amount of customers served, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the dairy farm industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the dairy farm industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your dairy farming business plan:

• How big is the dairy farm industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your dairy farm? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your dairy farming business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: grocery retailers, families, and individual buyers. 

As you can imagine, the customer segment(s) you choose will have a great impact on the type of dairy farm you operate. Clearly, families would respond to different marketing promotions than grocery retailers, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.  

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other local dairy farms. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes grocery stores, farmers markets, milk alternatives (vegan), etc.

With regards to direct competition, you want to describe the other dairy farming businesses with which you compete. Most likely, your direct competitors will be dairy farms located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What type of dairy farm are they?
• What areas do they serve?
• What types of customers do they serve?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide dairy farm products that your competitors don’t offer?
• Will your cows be raised in a better facility?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a dairy farming business, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of dairy farm that you documented in your Company Analysis. Then, detail the specific services you will be offering. For example, in addition to dairy farm products, will you provide a petting zoo, cheese making training, and any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your dairy farm. Document your location and mention how the location will impact your success. For example, is your dairy farm located in a rural setting, on the outskirts of a metropolitan area, the countryside, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your dairy farm marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Commercials
• Social media marketing
• Local radio advertising
• Word-of-mouth

Operations Plan

While the earlier sections of your dairy farming business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your dairy farm, including cleaning and maintaining the dairy farm and cows, milking the cows, bottling of milk, cheese production, marketing, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to obtain your XXth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your dairy farm to a new location.  

Management Team

To demonstrate your dairy farm’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing dairy farms. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a dairy farm or a large profitable farm.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you start with X number of cows or will you expand your cow inventory slowly ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your dairy farm, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a dairy farm:

• Cost of dairy farm construction and barn build-out
• Cost of dairy farm supplies, cows, and equipment
• Cost of marketing the dairy farm
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your list of products your dairy farm will offer, types of customers you will be targeting, and the areas your dairy farm will serve.  

Putting together a business plan for your dairy farming business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the dairy farm industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful dairy farm.  

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies that have gone on to achieve tremendous success.

Click here to see how a Growthink business plan writer can create your business plan for you.

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How to start and Run a Successful Dairy Farming Business in Kenya

By Robert Kariuki

The Demand for milk and its related products such as yogurt and butter has made dairy farming a lucrative venture in Kenya. If you are an aspiring dairy farmer, below is the process of how to start and run a successful dairy farming business in Kenya.

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Kenyans are big consumers of milk due to their love for tea. Hence, this demand has made dairy farming a destination venture for investors aiming to fill this need.

The country’s total output for milk is far lower than the demand by about 50%. The production averages 4 billion liters out of a demand of 8 billion liters. Hence, this is the first indicator of a ready market for milk producers.

Benefits of dairy farming in Kenya

• Ready market – as per the earlier discussion, with a net deficit in milk production, there is a huge ready market that makes the selling of milk easier. Mostly, dairy farmers sell their milk through dairy co-operatives that operate across the country.
• Minimal skills – Dairy farming doesn’t need very advanced skills to practice. You only need to learn the basics and gain the rest through experience. This makes it easier to get into the business for almost every Kenyan who has some interest.

Challenges facing dairy farming in Kenya

• Price fluctuations – the prices of milk are highly volatile due to the element of uncontrolled production. Hence, this may affect the planning and profitability of the business
• High startup capital – Setting up a dairy farm may need a huge amount of capital in form of buying the right cow breed, building the cow sheds, and buying the dairy feeds. This requirement may become a challenge for those investors without this capital level.

Dairy Cow Breeds

Successful dairy farming requires you to get the right cow breeds. This is one of the factors that are key to determining your success in this venture.

Various factors determine the right type of cow breed such as the location of farming and cost. Some of the most common dairy cow breeds in Kenya include;

1.  Friesian Cow Breed

This is the most common dairy cow breed in the country whose origin is the Netherlands. It is preferred due to the ease of availability and high milk production.

These cows are mainly found within the central and rift valley parts of the country due to the favorable weather. Friesian cows produce on average 40 to 50 liters of milk per day.

However, they are also heavy eaters with an average daily consumption of 100 kgs per cow. Due to the high levels of milk production, the cow is susceptible to some diseases such as mastitis. Hence it needs extra care in milking to protect it.

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A Friesian heifer costs on average 100,000 to 200,000 shillings while a pedigree cow could cost up to 500,000 shillings.

2.  Ayrshire cow breed

Ayrshire breed is not big in milk production as Friesians with an average of 30 liters per day. However, they are hardy and can survive in dry areas.

You can mostly identify them in the typical dark brown colors.  One key advantage of this breed is that they can free graze as opposed to Friesian.

An Ayrshire heifer costs on average 80,000 to 150,000 thousand shillings while a pedigree cow could cost up to 400,000 shillings.

3.  Guernsey cow breed

Guernsey dairy cows produce an average of 25 liters of milk per day. With an origin in Guernsey island in France, these cows are less costly to maintain as they consume less food and have leaner bodies compared to other breeds.

4.  Jersey cow breed

Jersey cows consume less food compared to other breeds making them ideal for small-scale farmers.  This makes them the most profitable dairy cattle due to the low food costs and high milk production.

They have a smaller body and are best suited for dry areas such as coastal regions.  The cow costs on average 100,000 shillings to buy.

After identifying the type of dairy cow breed to farm, you should proceed to build proper housing for your cows.

Building a Cow Shed

Dairy farming business in Kenya requires you to have proper and adequate housing for the cows. Some of the factors that will inform the right housing include the number of cows, weather conditions, and budget.

As an example, more cows will require bigger housing. On the weather, if you are farming in a cold area, you should consider having a heating system to keep the cows warm.

It is advisable to engage a professional when constructing the cow housing to ensure it meets the required standards.

Some of the key facilities you need when building a cow housing include;

• Composite bran
• Food and water space
• Milking pen
• Calving box
• Isolation pen

On average it could cost 100,000 shillings to build a shed that can host 4 cows. However, this could rise depending on the size and integration of other facilities such as heating.

Cows Health Check

Dairy cows are very fragile and hence require constant checkups to ensure they remain healthy. Remember that it is only through having healthy cows that you can get optimum milk output.

Normally, they should get checkups at least 5 times a year. However, this number could rise if there are emerging needs.

Some of the reasons for these checks include;

• Vaccination drive
• Nutritional evaluation
• Hooves trimming

Hence, you need to get a veterinary professional to do the checkups for you regularly.

Milking is a key aspect when doing dairy farming. A good milking approach helps the cow to produce more milk and is also cost-effective. Good milking practice is also key in preventing infections that could end up affecting the cow’s health.

You can either milk manually or through a machine depending on the scale of farming. For a small-scale farmer, manual milking is more cost-effective while large-scale farmers require a machine to do the milking.

If you are using a machine, focus to get the right type and ensure there is regular maintenance.

Marketing is a key factor in the dairy farming business in Kenya. This is because it determines the business returns. One of the most common ways to market your milk is by joining one of the many milk dairies available in the country.

Most of these dairies do milk collection daily making it easier to sell your milk. However, you should be aware that most dairies pay at the end of the month.  Some of the leading milk dairies in Kenya include Brookside dairies and Kenya Co-operative Creameries (KCC).

Alternatively, you can source for the market from either an institution or a hotel. Mostly, in this type of arrangement, you will have to do the delivery.  However, you can negotiate for higher prices compared to the dairies.

Milk value addition

As a dairy farmer, you can opt to value-add your products to fetch better prices in the market. Some of these include;

Opening a milk shop -This helps you to sell directly to consumers at a higher price

Increasing the products -By making products such as yogurt and butter, you can get higher prices from your milk farming.

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Factors that affect milk production

Now that we have established milk is the key product in dairy farming, let us review the factors that affect milk production.

Weather plays a role in determining the type of dairy cows to keep and the milk production levels. Hence, the need to provide heating if you are doing dairy farming in cold areas.

The healthier the food the higher the milk production. As a farmer, you should ensure your cows are fed the right amount of food both in quality and quantity.

In case you are not sure about the mix, seek the services of an expert to ensure you get it correct. Feeding is one of the biggest costs in dairy farming. Hence, target to grow your fodder to reduce the costs of buying it.

• Heath status

Always ensure to check your cow’s health status regularly to ensure they are healthy. Don’t miss important health checks such as vaccination.

Healthy cows tend to produce more milk than unhealthy ones.

As discussed earlier, there are different types of dairy cow breeds. Each breed has its unique characteristics such as milk production.

Some will produce higher milk levels than others. Hence, it is key to understand this before venturing into dairy farming business in Kenya.

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Learning by Doing

Dairy Business Incubation Training in Kenya

Earn a living become a professional dairy farmer.

What you will gain after the business incubation training

• Enhanced capacity to develop and manage your dairy farm for optimal household income
• Adequate capacity to carry out sustainable dairy farming
• Acquisition of competences in mechanization and automation of the dairy farm operations

Components of the Training

• Duration: 6 weeks spread over one-year period
• Blended learning: e-learning (online training ), practical assignments during lessons, internship on third party farms, peer group benchmarking, digital tools and gaming.
• Value addition: if necessary, a trainee can follow a 1-week milk processing (value addition) training at the demo processing facility at the Centre of Expertise (CoE)
• Access to CoE thematic workshops: breeding, forage, seeds, machinery etc. during the training weeks.
• Certification: after one year of training, the trainee will be expected to have made improvement on their farm and developed a complete 5-year business plan. Once the business plan is approved, the trainee will be awarded a Certificate of Young Professional Dairy Farmer
• Linkage to financial institutions, sponsors/donors: for access to credit for farm improvement investments once his/her business plan is approved.

The potential trainee must be:

• Working on a dairy farm on fulltime basis ready to be a successor or future herd manager therein
• Willing to develop and optimize the dairy farm and join a study group of fast forward young dairy farmers after successfully completing the training.
• Ready to become a demonstration farmer for smallholders in their locality after training and certification.
• Willing to involve their family or owner of the farm at the start of training period to line up vision and mission of the farm and at the end to share the developed business plan prior to being accorded approval by the family/owner
• Willing and ready to do all the assignments in time and work in farms for a prescribed period of time.
• In possession of a laptop or iPad
• Able to pay all the fees in time; PDTC Kenya will also connect trainees to sponsors/donors where possible
• Ready to go to The Netherlands for a 1-month internship on a family dairy farm and invite the Dutch dairy farmer to their farm after the certification.

How it works:

• Prior to a potential trainee’s selection, the farm will be visited by PDTC Kenya staff for a baseline survey.
• PDTC Kenya staff and the potential trainee will discuss criteria for admission to the business incubation training.

• [email protected]
• Mon – Fri 8:00 – 16:00, Sunday-CLOSED

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• How to write a business plan for your agribusiness venture/dairy farming/horticultural farming

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Dairy Farming Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Agriculture Industry » Livestock Farming » Cattle and Dairy

Are you about starting a dairy farming business? If YES, here is a complete sample dairy farming business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a dairy farming business . We also took it further by analyzing and drafting a sample dairy farming marketing plan template backed up by actionable guerrilla marketing ideas for dairy farms. So let’s proceed to the business planning section.

We all take in dairy foods on a regular basis; in fact there isn’t any home that doesn’t consume dairy foods. This primarily is one of the reasons why those who have built a business around the dairy industry are making a great deal of income on a daily basis. One of the businesses that revolved around the diary trade is starting a dairy farm.

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It pays that one does all that needs to be done in order to start with the right footing. As such one, one can   undertake a thorough and exhaustive research. Thereafter think towards getting a firsthand knowledge of the industry by sitting under the tutelage of someone who has a firsthand experience and dealing with the trade.

You will also be required to write a business plan. One of the good things about business plans is that they serve as a great guide and blueprint to fly with. There are plenty business plan experts out there; to save you the troubles and fees that you will have to pay. A sample dairy farms business plan has been put together for your use;

A Sample Dairy Farming Business Plan Template

1. industry overview.

There are several business opportunities available in the agricultural industry and dairy farming is one of them. One good thing about the agriculture industry is that there is market for all the produce from the industry.  A dairy farm is of course a thriving and profitable business because of usefulness of beef and milk.

People eat beef, drink their milk, and use their fur and skin. With cattle milk, cheese can be made, along with other dairy products. Companies in the dairy farms industry primarily raise cattle for milk.

Although this industry basically engage in the sale of raw milk and excludes the production of drinkable fluid milk and processed dairy products like butter, cheese and powdered milk, some dairy farms can still go ahead to accommodate other related business within the industry as long as they have the capacity to do so.

In recent time, the price of raw milk has been highly volatile, resulting to fluctuations in revenue for the Dairy Farms industry.

For example, in 2011, the price of milk bounced back from the recession and pushed up by increasing global demand, resulting to appreciable growth in revenue generation. It was projected that in 2016, an oversupply of dairy products is expected to cause revenue to deep further in the industry.

However, despite all the volatility, the industry is expected to experience appreciable growth going forward. For the time being, the price of cattle feed, which typically makes up about half of the average dairy farm’s total expenses, has been nose diving as far back as 2014, significantly strengthening industry profit margins.

The Dairy Farms Industry is indeed a large industry and pretty much active in countries such as United States of America, Israel, Argentine, Holland, Egypt, China, Germany, Turkey and Nigeria et al. There is no single dairy farm company that has dominate market share in the industry hence smaller dairy farms business can successfully make profits.

Statistics has it that in the united states of America alone, there are about 42,536 registered and licensed dairy farms business responsible for employing about 345,672 and the industry rakes in a whooping sum of $47 billion annually. The industry is projected to enjoy 1.3 percent annual growth.

As an aspiring entrepreneur who is looking towards leveraging on the agriculture industry to generate huge income, then one of your best bet is to start dairy farms business. Dairy farms business is all about mass – breeding of cattle (cows, oxen, bulls, bullocks, steers, heifers and calf et al) for the sole aim of generating raw milk in commercial quantities and of cause making profits.

Just like any other business, if you are able to conduct your market research and feasibility studies before launching your dairy farms, you are more likely not going to struggle to sell your raw milk and other dairy products because there are loads of people out there we eat beef, drink milk and industries that make use of byproducts from cattle in manufacturing their products.

Lastly, there are few barriers to entry into the dairy farms industry. Usually, all inputs are readily available. In the nearest future, players in this industry may face the highest costs associated with accessing technology, especially in relation to genetic modification engineering in livestock breeding.

So also, intellectual property rights protecting new inventions and technology may mean that new entrepreneurs coming into the industry will need to pay license fees and this of course will cause increase in the start – up fee for starting a dairy farm cum cattle rearing business.

2. Executive Summary

Columbus & Sons Dairy Farms, LLC is a registered and world class dairy farms company that will be based in the outskirt of Pierre, South Dakota – United States. We have done our detailed market research and feasibility studies and we were able to secure a hundred acres of land to build our dairy farming business.

Our dairy farms business is a going to be standard one hence will be involved in commercial breeding of cows, oxen, bulls, bullocks, steers, heifers and calf et al for the main aim of producing raw milk in commercial quantities. We will also be involved in boarding services, breeding services, dairy support services, livestock health services, farrier services, and shearing services et al.

We are in the dairy farms business because we want to leverage on the vast opportunities available in the dairy farms industry, to contribute our quota in growing the U.S. economy, in national food (raw milk) production, meat, raw materials production for industries, to export agriculture produce from the United States to other countries and over and above to make profit.

Columbus & Sons Dairy Farms, LLC is well positioned to become one of the leading brands in the dairy farms industry in the United States of America, which is why we have been able to source for the best hands and equipment to run the business.

We have put process and strategies in place that will help us employ best practices when it comes to producing raw milk in commercial quantities and conforming to the rules and regulation as required by the regulating bodies in the United States of America.

At Columbus & Sons Dairy Farms, LLC our customer’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Columbus & Sons Dairy Farms, LLC is a private registered dairy farms company that is owned and managed by Columbus Parker and is immediate family members. The company will be fully and single handedly financed by the owner – Columbus Parker and his immediate family members at least for a period of time.

Before starting Columbus & Sons Dairy Farms, LLC, Columbus Parker has worked with some of the leading dairy farms in the United States of America. He has a degree in Agriculture Economics and well over 10 years of experience.

3. Our Products and Services

Columbus & Sons Dairy Farms, LLC is a licensed dairy farms business that is committed to producing raw milk in commercial quantities for both the United States’ market and the global market. We are in the dairy farms industry for the purpose of generating profits and we are going to do all that is permitted by the laws in the United States of America to achieve our business goals.

These are the areas we will concentrate on in our dairy farms business. If need arises we will definitely add more related animal breeding services to our list;

• Milking dairy cattle
• Dairy support services
• Dairy cattle farming
• Farrier services
• Sale and export of cotton wool and other dairy products
• Sale of Cattle and milk
• Sale of processed meat (beef) / can – beef (Processed Diary foods, and can beef et al)
• Shearing services
• Dairy farming related consultancy and advisory services

4. Our Mission and Vision Statement

• Our Vision is to become one of the leading dairy farms business brands not just in Pierre – South Dakota, but also in the United States of America.
• Our mission is to sell our raw milk and other dairy farms products in commercial quantities both locally, nationally and internationally.
• We want to build a dairy farms business that can favorably compete with other leading dairy farms brands in the United States of America and in the globe.

Our Business Structure

Columbus & Sons Dairy Farms, LLC is a dairy farms company that intend starting small in Pierre – South Dakota, but hope to grow big in order to compete favorably with leading dairy farms in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands in and around Pierre – South Dakota.

At Columbus & Sons Dairy Farms, LLC, we will ensure that we hire people that are qualified, hardworking, dedicated, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the management of the dairy farms. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions. Below is the business structure of Columbus & Sons Dairy Farms, LLC;

• Chief Operating Officer

General Dairy Farm Manager

Administrator / Accountant

• Sales and Marketing Executive
• Farm / Field Employees
• Front Desk Officer

5. Job Roles and Responsibilities

Chief Operating Officer:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for the planning, management and coordinating all farm activities across the various sections on behalf of the organization
• Supervise other section manager
• Ensures compliance during project executions
• Provides advice on the management of farming activities across all section
• Responsible for carrying out risk assessment
• Uses IT systems and software to keep track of people and progress of the growth of cattle
• Responsible for overseeing the accounting, costing and sale of raw milk and other dairy products
• Represent the organization’s interest at various stakeholders meetings
• Ensures that dairy farm goals desired result are achieved, the most efficient resources (manpower, equipment, tools and chemicals et al) are utilized and different interests involved are satisfied. Responsible for preparing financial reports, budgets, and financial statements for the organization
• Oversee the smooth running of the daily farming activities across the various farming sections.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Responsible for financial forecasting and risks analysis.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the farms
• Serves as internal auditor for the farms

Sales and Marketing Officer

• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of new business
• Writes winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company

Field Workers / Contract Staff

• Responsible for milking cattle as instructed by the general dairy farms manager
• Responsible for feeding cattle and other livestock as instructed by the supervisor
• Responsible for cleaning the cattle ranch
• Change the water in the water trough / trench as instructed by the supervisor on a regular basis
• Handles farm implements and machines as instructed by the section manager / supervisor
• Assist in handling the breeding of cattle
• Carries out task in line with the stated job description
• Assist in transport working tools and equipment from the dairy farm and back to the designated store room
• Handles any other duties as assigned by the dairy farm manager

Client Service Executive / Front Desk Officer

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the cattle ranch manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels / documents for the company
• Distributes mails in the organization
• Handles any other duties as assigned my the line manager

6. SWOT Analysis

Columbus & Sons Dairy Farms, LLC do not intend to launch out a business on a trial and error platform hence the need to conduct a proper SWOT analysis.

We know that if we get it right from the onset, we would have succeeded in creating the foundation that will help us build a standard dairy farms business that will favorably compete with leading dairy farms in the United States of America and in the rest part of the world.

As a standard dairy farms business, we look forward to maximizing our strength and opportunities and also to work around our weaknesses and threats. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Columbus & Sons Dairy Farms, LLC;

Our strength as a cattle rearing business is the fact that we have healthy relationships with loads of major players (agriculture merchants) in the dairy farms industry; both suppliers and buyers of raw milk in commercial quantity within and outside of the United States.

We have some of the latest cattle rearing machines; tools and equipment that will help us breed our cattle (cows, oxen, bulls, bullocks, steers, heifers and calf et al) in commercial quantities with less stress. Aside from our relationship (network) and equipment, we can confidently boast that we have some the most experienced hands in the dairy farms industry under our payroll.

Our weakness could be that we are a new dairy farms business in the United States and we may not have the required cash to pump into the publicity of our business. We are aware of this and from our projection will overcome this weakness with time and turn it to a major advantage for the business.

• Opportunities:

The opportunities that are available to us cannot be quantified. The fact that almost everybody in the world drinks milk and dairy farms products makes the business highly marketable.

We know that there are loads of homeowners, businesses and industries that will source for raw milk and other dairy products both in the United States of America and other parts of the world. We are well positioned to take advantage of these opportunities as they come our way.

Some of the threats and challenges that we are likely going to face when we start our own dairy farms are global economic downturn that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics), unfavorable government policies and the arrival of a competitor (a dairy farm or even cattle rearing farm that are also into production of raw milk) within same location.

There is hardly anything you can do as regards this threats and challenges other than to be optimistic that things will continue to work for your good.

7. MARKET ANALYSIS

• Market Trends

A close study of the dairy farming industry shows that most dairy farms that has the capacity do not just concentrate in the commercial production of raw milk for households and businesses that are involved in the production of fluid milk products, cheese, dry, condensed and evaporated milk, creamery butter and yogurt et al.

They go as far as establishing a standard milk and beef processing company in line with their core business. It is a means of maximizing profits and increasing source of revenue generation.

Despite the fact that dairy farm has been in existence since time immemorial, that does not in any way make the industry to be over saturated; dairy farmers are exploring new technology to continue to improve raw milk production processes and also meat and milk preservation and packaging process. The fact that there is always a ready market for raw milk and other dairy products makes the business evergreen.

Lastly, one of the notable trends in dairy farms industry is that with the recent advancement in technology dairy farmers can now improve the various breeds of the animals they are breeding so as to increase the quantity of milk they produce per time.

As a matter of fact, it is now easier for dairy farmers to comfortably import the kind of breed of domestic animal they want to breed from any country of their choice and also advancement in technology has made it easier to cross – breed different animal.

8. Our Target Market

As expected, the target market of those who are the end consumer of dairy farms produce and also those who benefits from the business value chain of the agriculture industry is all encompassing; it is far – reaching. Every household consumes produce from livestock farms be it meat, milk, and the skin (leather) used for bags, belts and shoes production et al.

So also a large chunk of manufacturing companies depends on dairy farms for some of their raw materials. In essence a dairy farmer should be able to sell his or her raw milk and other dairy products to as many people as possible.

We will ensure that we position our business to attract consumers of raw milk and other dairy products not just in the United States of America alone but also other parts of the world which is why we will be exporting some of our dairy farm produce either in raw form or processed form to other countries of the world.

Our Competitive Advantage

From experience, entrepreneurs are known to flock towards an industry that is known to generate consistent income which is why there are more dairy farms in the United States of America and of course in most parts of the world.

As a matter of fact, entrepreneurs are encouraged by the government to embrace commercial farming / dairy farming. This is so because part of the success of any nation is her ability to cultivate her own food and also export foods to other nations of the world.

Columbus & Sons Dairy Farms, LLC is fully aware that there are competitions when it comes to selling raw milk and other dairy products all over the globe, which is why we decided to carry out thorough market research and feasibility studies so as to know how to take advantage of the available market in the United States and in other parts of the world.

We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable dairy farming processes that can help us sell our raw milk and other dairy products at competitive prices, good network and excellent relationship management.

Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we will operate an all – round standard dairy farms that will be involved in diverse areas such as animal rearing and meat and milk processing and packaging plant. With this, we will be able to take advantage of all the available opportunities within the industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups dairy farms companies in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Columbus & Sons Dairy Farms, LLC is in the dairy farms industry for the purpose of maximizing profits hence we have decided to explore all the available opportunities within the industry to achieve our corporate goals and objectives. In essence we are not going to rely only on the sale of raw milk and other dairy products to generate income for the business. Below are the sources we intend exploring to generate income for Columbus & Sons Dairy Farms, LLC;

10. Sales Forecast

From the survey conducted, we were are able to discover that the sales generated by a dairy farm depends on the size and capacity of the dairy farms and of course the network of the business.

We have perfected or sales and marketing strategies and we are set to hit the ground running and we are quite optimistic that we will meet or even surpass our set sales target of generating enough income / profits from the year of operations and build the business from survival to sustainability.

We have been able to critically examine the dairy farms industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some workable assumptions as well with respect to the nature of dairy farms business that we run.

Below are the projections that we were able to come up with for the first three years of running Columbus & Sons Dairy Farms, LLC;

• First Fiscal Year-: $250,000
• Second Fiscal Year-: $650,000
• Third Fiscal Year-: $900,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics), and unfavorable government policies.

• Marketing Strategy and Sales Strategy

It is a known fact that the reason why some dairy farms hardly make good profits is their inability to sell off their raw milk and other dairy products to a larger market. In view of that, we decided to set up a standard meat and milk processing and packing plant to help us maximize profits.

Over and above, we have perfected our sale and marketing strategies first by networking with agriculture merchants and companies that rely on raw materials from the dairy farms industry who are likely to refer become our customers. In summary, Columbus & Sons Dairy Farms, LLC will adopt the following strategies in marketing our cattle rearing produce;

• Introduce our business by sending introductory letters alongside our brochure to stake holders in the agriculture industry, companies that rely on the dairy farms industry for their raw materials, hotels and restaurants and agriculture produce merchant et al.
• Advertise our business in agro – allied and food related magazines and websites
• List our dairy farms on yellow pages ads (local directories)
• Attend related agriculture and food expos, seminars, and business fairs et al
• Leverage on the internet to promote our business
• Engage in direct marketing
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means (both conventional and non – conventional means) to advertise and promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means.

We know that it is important to create strategies that will help us boost our brand awareness and to create a corporate identity for our cattle rearing business. Below are the platforms we want to leverage on to boost our dairy farms brand and to promote and advertise our business;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our business
• Install our Bill Boards on strategic locations all around Pierre – South Dakota
• Engage in road show from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact corporate organizations and residence in our target areas by calling them up and informing them of Columbus & Sons Dairy Farms, LLC and the dairy farm produce we sell
• List our dairy farms in local directories / yellow pages
• Advertise our dairy farms in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.

12. Our Pricing Strategy

We are fully aware that some of the key factors that will help us sell our raw milk and other dairy farm products at the right price that will guarantee that us making profits is dependent on our strategy while some of the factors are beyond our control.

For example, if the climatic condition is unfavorable and if there is natural disaster in the location where we have our dairy farm, then it will directly affect the prices of our raw milk and other dairy farm products.

The truth is that, if we want to get the right pricing structure for our raw milk and other dairy products, then we must ensure that we choose a good location for our dairy farms, choose a good breed that will guarantee steady and multiple breeding (prolific breeds), cut the cost of running our farm to the barest minimum

And of course try as much as possible to attract buyer to our farm as against taking our raw milk and other dairy products to the market to source for buyers; with this, we would have successfully eliminate the cost of transporting the goods to the market and other logistics that can impact on our operational cost.

We are quite aware that one of the easiest means of penetrating the market and acquiring loads of customers for all our raw milk and other dairy products is to sell them at competitive prices hence we will do all we can to ensure that the prices of our produce are going to be what other dairy farms and even commercial livestock farmers who are into the sale of raw milk would look towards beating.

One thing is certain, the nature of dairy farms business we are involved in makes it possible for farmers to place prices for their raw milk and other dairy products based on their discretion without following the benchmark in the industry. The truth is that it is one of the means of avoiding running into loss. The easier you sell off your raw milk and other dairy products the better for your business.

• Payment Options

The payment policy adopted by Columbus & Sons Dairy Farms, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Columbus & Sons Dairy Farms, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment via mobile money

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our raw milk and other dairy products.

13. Startup Expenditure (Budget)

When it comes to calculating the cost of starting a dairy farm, there are some key factors that should serve as a guide. The capacity of the raw milk to be produced per time and other related dairy products will determines the total cost of setting up the business.

Besides, in setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a dairy farms business; it might differ in other countries due to the value of their money. Below are some of the basic areas we will spend our start – up capital in setting up our dairy farms;

• The Total Fee for incorporating the Business (dairy farm) in United States of America – $750.
• The amount needed to acquire / lease a dairy farm land  – $50,000
• The amount required for preparing the farm land (cattle ranch / dairy farm) – $50,000
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of Columbus & Sons Dairy Farms, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• The total cost for hiring Business Consultant – $2,500.
• The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400
• The amount required for the purchase of the first set of cattle – $10,000
• The cost for acquiring the required working tools and equipment and milking machines et al– $50,000
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The Cost of Launching an official Website – $600
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000

Going by the report from detailed research and feasibility studies conducted, we will need an average of $700,000 to start a standard dairy farms business in the United States of America.

Generating Funding / Startup Capital for Columbus & Sons Dairy Farms, LLC

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as commercial poultry farming.

No doubt raising startup capital for a business might not come cheap, but it is a task that an entrepreneur must go through. Columbus & Sons Dairy Farms, LLC is a family business that is solely owned and financed by Columbus Packer and his immediate family members.

They do not intend to welcome any external business partners, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources. These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $400,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Columbus & Sons Dairy Farms, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to sell our raw milk and other dairy products a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Columbus & Sons Dairy Farms, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of farm land and building of standard dairy farm: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Compilation of our list of products that will be available in our dairy farms: Completed
• Establishing business relationship with vendors – key players and merchant in the industry: In Progress

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How we feed our dairy cows to make Sh. 780,000 monthly from selling milk

Dairy Business Kenya: Mwangi Waithuki’s home in Githunguri, Kiambu County, also doubles up as his dairy farm. It is so serene that it is difficult for a visitor to know that it hosts over 40 dairy cows.

Having been fed to their satisfaction mid-morning, we find the animals quiet, chewing the cud. Near the cowshed, two young men slice maize stalks and napier grass on chuff cutters, while two others ferry the feeds to them.

An hour earlier, the workers had milked the cows for the second time and delivered the produce to Githunguri Dairy, the maker of Fresha milk brands. “We are preparing feeds for the following day. We always ensure they are ready every day by 4pm,” says Francis Thuo, the farm manager.

Earlier, they had also mixed different dairy meal ingredients sourced from specific agrovets. Waithuki, one of the leading dairy farmers in the county, delivers 650 litres of milk a day to the processor from 40 cows that he milks. He attributes the huge quantity of milk to his feeding regime.

Waithuki uses maize germ, wheat pollard, wheat bran, sun flower, macadamia nuts, groundnuts, cottonseed cake, fish meal and dairy salt to make the feeds. Thuo trained in Animal Health and Production at Kabete Animal Health Industry Training Institute (Ahiti).

To prepare 1,000kg of dairy meal, he and his workers mix maize germ (260kg), wheat pollard (100kg), wheat bran (240kg), sunflower (50kg), macadamia (50kg), groundnuts (60kg), cotton seed (150kg), fish meal and dairy salt (10kg).

“The mixture ensures we have the best dairy meal which cannot be found in any livestock feed stores. We prepare in bulk once every day to enjoy economies of scale and to ensure the animal gets fresh meals.” Apart from the dairy meal, Waithuki, who has been in the business for over 20 years, further feeds the cows on silage, napier grass, ordinary green grass and hay.

“We make silage from maize we grow in Machakos which we harvest as soon as it develops the cobs. We then cut it into pieces, put in silos and mix with molasses,” Thuo explains. They source napier grass and green grass from farms in Kiambu while they buy hay in bulk from different suppliers.

“We slice the grasses into small pieces using the chuff cutters. Nine cows share three troughs of the grasses. Their daily portion comprises of three 75kg bags of fodder, silage, three 20 litre buckets of the dairy meal and 40 litres of yeast to help in digestion and milk production.”

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“We feed them once at 2am on all the feeds and then during the day we offer them some dairy meal only. The early feeding helps them to completely digest the feeds to produce more milk. .”

The cows also have unfettered access to plenty of clean water. According to animal experts, the balanced diet is enough to take the cows for 24 hours. Feeding time, on the other hand, does not matter, as long as the animals get the right quantity of feeds for the day.

The farm, according to Thuo, spends between Sh1,300 and Sh1,400 to make a 70kg bag of dairy meal. In shops, the same bag costs Sh1,680. Before they adopted the new feeding system, Thuo says they used to get 400 litres of milk a day from the 40 cows.

Unlike in most farms where cows are milked twice a day, here they are milked three times. According to Thuo, they do the first milking at 3am, then between noon and 1.30pm and lastly at 6pm. During milking, the cows are offered some dairy meal.

“We get from each cow from 30 to 40 litres of milk a day during their peak due to the quality feeds but normally production of each is between 18 and 35 litres depending on the stage of lactation. Good feeds make animals offer more,” says Thuo. This means that with a minimum of 30 litres from every cow, Mwangi Withuki could rake in a gross income of Sh. 1.4 million per month from his dairy farm. However, from the 650 litres he submits, he makes a gross of around Sh.780,000 per month.

Each litre is sold to Githunguri Dairy at Sh40. Joseph Mureithi, the principal at Waruhiu Agricultural Development Centre in Githunguri, says processing own feeds is the only way to ensure quality feeds and cut costs. He advises farmers to form groups, buy raw materials and be trained on how to manufacture the feeds. Dairy Business Kenya. Dairy Business Kenya.

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i got lots of maize stalks for silage. kindly let me know if interested or refer me to concern individuals

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