How to Start Dairy Farming in Odisha: Business Plan, Breeds, Setup Cost, Profit, and Requirements

Dairy farming collects and processes milk from cows, goats, and other animals for human consumption. It can be done on a small or large scale, and there are many different ways to set up a dairy farm. In Odisha, dairy farming is important to the state’s agriculture sector. There are over 1 million dairy farmers in Odisha, and the state is home to some of the country’s largest dairy companies.

How to Start Dairy Farming in Odisha

How to Start Dairy Farming in Odisha

Why Start Dairy Farming in Odisha?

The main reasons to start dairy farming in Odisha are the state’s large population and high demand for milk and milk products. The state has many small and marginal farmers who cannot meet the demand for milk from the urban areas. In addition, there is a lack of good quality milk products in the market. As a result, there is a huge potential for dairy farming in Odisha.

Apart from the large population and high demand for milk, another reason to start dairy farming in Odisha is the state’s favorable climate. The state has a tropical climate, ideal for Dairy cattle breeds like Jersey and Holstein Friesian. The state also has a large number of water bodies, which provide ample opportunities for grazing.

Odisha also offers several incentives for setting up dairy farms. These include subsidies on the purchase of cattle, infrastructure development, technical assistance, and training programs. Also, the government has launched a scheme to promote private investment in dairy farming. Under this scheme, private investors will get a 50% subsidy on their investment.

Scope of Dairy Farming in Odisha

  • Dairy farming is profitable, and Odisha is a good place to start dairy farming. The state has fertile land and ample water resources, which make it a good place to raise cows, sheep, and goats. The climate in Odisha is well suited for dairy farming, and many different breeds of cows can be found on Dairy farms in Odisha.
  • Odisha is ideal for dairy farming due to its tropical climate and rich soil resources. Dairy farming in Odisha can be profitable if proper planning and management are carried out.
  • Dairy farming is an important agricultural sector in Odisha. It plays a vital role in the state’s economy and contributes significantly to the livelihood of small and marginal farmers. Dairy production provides an essential source of nutrition for the population and generates employment opportunities for rural communities.

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Dairy Feeding
  • The state’s dairy sector has undergone significant changes in recent years, with the introduction of modern production methods and increased commercialization. This has led to increased milk production and improved quality, making Odisha one of the leading milk-producing states in India.
  • The state government has been working hard to promote the dairy sector and improve conditions for farmers. Several initiatives have been launched to improve infrastructure, provide training and extension services, and expand markets for dairy products. The state government is providing financial assistance to encourage investments in dairy farms.

Steps to Create Dairy Farming Business Plan in Odisha

  1. Choose the right breed of cattle; many cattle breeds are well-suited for dairy farming, such as Jersey, Holstein Friesian, Brown Swiss, etc. Select the breed based on your budget and desired milk production.
  2. Decide the type of dairy farm you want to start. There are three main types of dairy farms in Odisha- smallholdings, medium-sized, and large-scale farms.
  3. Starting a dairy farm can be expensive, so it is important to make a budget and stick to it. Include the cost of purchasing cows, building shelter, buying equipment, and hiring staff.
  4. It would help if you created a marketing plan to sell your milk and dairy products. Decide who your target market is and how you will reach them. Promote your products through social media, word-of-mouth, or advertising.
  5. Having realistic expectations takes time and effort to build up a successful dairy farm. Don’t expect to make a profit overnight – focus on creating a solid foundation for your business that will lead to long-term success.
  6. Before you start writing your business plan, research the dairy farming industry in Odisha. This will give you a better market understanding and help you determine if there is a demand for your products.

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Dairy Farm Cow Management
  1. Write a detailed description of your business, including what products or services you will offer and your target market. 
  2. Describe your management team and their experience in the dairy farming industry. Discuss your financial projections for the business, including start-up costs, operating expenses, and revenue projections.
  3. Describe the facilities and equipment you need to operate your business and any other infrastructure requirements. Include a section on risk management that discusses the potential risks associated with starting a dairy farm in Odisha and how you plan to mitigate them.
  4. Make sure to include an appendix that contains supporting documentation for your business plans, such as market research reports, financial statements, and legal documents.

Dairy Breeds Available in Odisha

Binjharpuri is a cattle breed found in Odisha’s Jajpur, Kendrapara, and Bhadrak districts maintained for milk, draught, and manure. Other important breeds are Kalahandi Buffalo. Chilika Buffalo, Jersey, Holstein-Friesian, Sahiwal, and Brown Swiss.

Types of Dairy Farms in Odisha

  1. A single-family usually does small-scale dairy production with a few cows. The milk is sold to the local market. If you want to set up a small-scale family farm, it will require less investment, and you can get started with less experience. This type of dairy farm is best suited for those who want a more hands-on approach and are passionate about working with animals.
  2. Medium-scale dairy production is done by a cooperative or company with several hundred cows. The milk is processed and sold to the local and regional markets.
  3. A corporation does large-scale dairy production with thousands of cows. The milk is processed and sold to the national or international markets. If you want to set up a large commercial operation, you must invest more money and have more experience in the industry. However, this type of dairy farm has the potential to generate more income.

Key Rules for Starting Dairy Farming in Odisha

  • Different states have different regulations, so it is important to research the specific rules for dairy farming in Odisha.
  • The state government must license dairy farms.
  • The minimum land requirement for a dairy farm is 2 acres.
  • Research the market conditions and profitability of dairy farming in Odisha.
  • Dairy cattle must be kept in a clean, dry environment with adequate ventilation and space.
  • Cattle must be fed a balanced diet and given access to clean water.
  • A veterinary doctor must be consulted regularly to ensure the health of the cattle.
  • The farm should have a milking parlor where cows can be milked cleanly and hygienically.
  • Milk produced on the farm must be stored in clean containers and refrigerated immediately.
  • Milk must be sold to licensed milk retailers or processors.

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Dairy Feeding Fence

Tips on Raising Dairy Cattle in Odisha

  • Choose the right breed of cattle for your climate and pasture conditions. There are many different breeds of dairy cattle, so choosing one well-suited for your particular climate and pasture conditions is important.
  • A successful dairy farm requires careful planning and execution. Before you start, create a business plan outlining your goals, start-up costs, operating expenses, marketing strategy, etc. This will help you stay organized and focused as you start your Dairy farming venture.
  • Be prepared for hard work in your dairy business. Dairy farming is not a get-rich-quick scheme; it requires hard work, dedication, and patience.

Cost of Starting a Dairy Farming in Odisha

The set-up cost for starting a dairy farm in Odisha will vary depending on the type of cow you choose and the land you need. The main costs associated with starting a dairy farm are buying cows, constructing sheds, and installing equipment. Setting up the dairy farm will cost Rs. 10 to 12 lakhs.

The Profit Margins from Dairy Farming in Odisha

The dairy farming industry in Odisha is profitable, with many opportunities for those looking to start a business. The state’s large population of cows and buffaloes is the main milk production source. Dairy farming can be done on a small or large scale, depending on the investment and land available. Many breeds of cows and buffaloes are available in Odisha, which produces different types and quantities of milk.

The set-up cost for starting a dairy farm will vary depending on the operation size and scale. Buying cows and buffaloes, building shelters, and buying equipment can be expensive. However, many government schemes and subsidies are available for those setting up dairy farms in Odisha. The profit margin from dairy farming depends on various factors such as milk production, the sale price of milk, the cost of feed and fodder, overhead costs, etc. The profit margin for a small-scale dairy farm with 10-15 cows or buffaloes can be around Rs. 30,000-40,000 monthly.

Care and Management of Dairy Farm in Odisha

The first step in starting a dairy farm in Odisha is to develop a business plan. This plan should include the costs of setting up and running the farm and the expected profits. It is important to research the different breeds of dairy cattle available and choose those best suited for Odisha’s climate and terrain. The next step is to set up the farm’s infrastructure, including barns, pens, and milking equipment. The cost of this can vary depending on the size and scale of the operation.

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Dairy Feed

Once the farm is up and running, it is important to maintain a strict feeding, milking, and cleaning routine. This will help ensure the cows remain healthy and produce high-quality milk. Regular vet check-ups are also essential to safeguard the health of the herd. Following these steps, you can start a successful dairy farm in Odisha that provides quality milk products for local consumers.

Dairy Farming Loans and Subsidies in Odisha

The state of Odisha is well-known for its rich culture and tradition. It is also home to a large number of dairy farmers. The state government provides various loans and subsidies to encourage and promote dairy farming in the state.

The main objective of the Dairy Farming Loans and Subsidies in Odisha is to provide financial assistance to small and medium-scale dairy farmers so that they can set up their dairy farms and expand their businesses. The government also provides technical and marketing support to the farmers through various schemes.

  • Doodh Ganga Scheme: Under this scheme, the government subsidizes milk processing units, refrigerated vans, deep freezers, etc., to encourage private investment in the dairy sector.
  • Rashtriya Gokul Mission: Under this scheme, the government provides financial assistance for setting up new dairy farms, training farmers, purchasing milch animals, etc.
  • National Dairy Development Board (NDDB) Scheme: The NDDB provides financial assistance for setting up new dairy farms, training farmers, purchasing milch animals, etc., under this scheme.
  • State Government Schemes: The state government also provides various subsidies and loans for setting up new dairy farms and expanding or modernizing existing ones.

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Dairy Cows

Dairy Farming Challenges in Odisha

1. Lack of good quality breeds: In Odisha, as in other parts of India, there is a lack of good quality dairy breeds. This is a major problem as it limits the productivity of the cows and affects the quality of milk produced.

2. Poor infrastructure: Another big challenge dairy farmers face in Odisha is poor infrastructure. Very few modern dairy farms are in the state, and most use traditional production methods. This makes it difficult to produce high-quality milk and increases production costs.

3. High cost of feed: Feeding the cows is another major challenge, as the cost of good quality feed is very high. This leads to higher milk production costs and affects the business’s profitability.

4. Lack of awareness: Lack of awareness about modern dairy farming methods among farmers is another big challenge. Most farmers are unaware of how to rear cows, feed them and get a good yield from their cows. This results in lower productivity and higher losses for the farmer.

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Dairy Farm Management


Dairy farming is a growing industry in Odisha. Dairy farming has become an important part of the state’s economy. Today, Odisha is one of India’s leading producers of milk and milk products. Odisha is known for its large number of dairy farms and its production of milk and other dairy products.


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