Agriculture is a popular sector of the modern economy; this is a reason to think about how to organize cow breeding as a business. Cow's milk and meat are always in demand, regardless of the time of year, the economic situation in the country and other factors. Even competition is not a hindrance in this business. The main and primary task is to plan everything correctly and carefully.
Business plan
The task of the future entrepreneur is to create a guide to action for himself, that is, write a business plan. This is an optional document; you don’t need to present it to anyone, only if you have to look for a source of financing, but more on that later.
Dairy cows produce 20 to 30 liters of milk per day
The business plan has its own function - to coordinate the actions of the manager. In simple words, this is a step-by-step guide, written in your own words exclusively for yourself. There are several mandatory items:
- market analysis;
- paperwork;
- farm organization;
- financial plan;
- purchase of livestock;
- hiring staff and purchasing equipment;
- search for a sales market.
Nothing complicated at first glance, but at every stage an entrepreneur will encounter difficulties, and they cannot be predicted for sure, but you can clearly distribute your actions to reduce risks to a minimum.
Business Features
Breeding cows of any breed, meat or dairy, is one of the industries that is not afraid of competition. The products will be in demand in any region of our country. First of all, it is profitable to sell milk where there are dairies. In most cases, especially in the central and northern regions, raw materials for production are delivered from the southern regions. In this case, it is not necessary to study competition.
But you need to think about how profitable it will be to organize and maintain a farm in a particular region. For example, take into account the cost of land, construction, feed, young animals and other factors. In the southern regions, keeping animals is more economically profitable, but the cost of production is lower.
First of all, you need to decide on the specialization of the enterprise; breeding dairy cows is a more profitable undertaking. It has excellent development prospects, for example, over time it is possible to organize an enterprise or mini-factory for processing milk and producing dairy products.
Milk is in demand in all regions of Russia
Paperwork
If the company has one founder, then you can register as an individual entrepreneur and choose a simplified taxation system - 6% of gross profit. This is the simplest form of business registration that does not require material or time costs.
The second option is peasant farm enterprise (peasant farm). This form of registration is relevant if the enterprise has several co-founders, for example, when organizing a family business, where each member of the peasant farm makes a material contribution to the organization and development and ultimately receives a profit. But the head of the peasant farm must be a chairman registered as an individual entrepreneur.
Read also: Breeding ducks at home as a business for beginners
Land plot
The key point of the enterprise is the choice of farm location. This should not be an urban area; it makes more sense to organize an enterprise in a village. Ideally, the site should be located where there is a pond and meadows for the favorable existence of animals. There is, of course, the option of organizing cow breeding at home, and this is a great start, but over time the enterprise will require expansion, which will entail the search and purchase of new land and the construction of pens.
It is advisable to acquire ownership of a plot of land at the initial stage; a lease agreement is an unwise decision, its validity period is limited. An alternative is to sign a lease with a subsequent purchase agreement with the owner.
The area of the site depends on the scale of the enterprise. But you need to expect that on its territory you will have to build outbuildings for livestock, a warehouse for feed, premises for staff, storage of food and equipment, and a “shower” for animals. In addition, you can build a separate building, a shed for storing manure is enough, it will bring additional profit.
Cows can be kept in unheated barns
Construction of buildings
This is an expensive and costly event, but you can’t do without it. If you are very lucky, you can buy old buildings on the purchased plot. It is easier to repair and improve them, because for construction you need to obtain permission from the local administration, enter into an agreement with a construction company and purchase building materials, pay for the project and much more. This will take a lot of time and money.
Next, you need to calculate the area of the pens, it depends on the number of expected livestock. It makes more sense to keep cows in stalls; these are separate “rooms” with feeders and drinkers. Minimum stall area 2 sq.m. one individual can be more, but not less.
At the initial stage, given the high cost of the enterprise, there is no need to plan large-scale production. The optimal option would be to purchase ten cows and not hire staff, that is, care for yourself if you have the desire and experience. Once sales are established and profits stabilize, you can take care of expanding and automating production.
Purchasing cows
There are more than 300 breeds of dairy cows in Russia. The choice depends on the region where the farm is opening, because you will have to purchase livestock from local farmers. They can advise a beginner on maintenance and care, and tell about the characteristics of the breed. You should not bring livestock from afar, because the breed of cows must be adapted to the local climate. Otherwise, you can make a loss or go broke on veterinary care.
Next, you need to request from the breeder documents for the animals, certificates of their origin and veterinary certificates. It is advisable to consult an experienced doctor to examine the animals, because it is difficult for a novice farmer to make the right choice. The age of the cow is of particular importance; individuals older than 2 years begin to produce good milk yield. Although they are more expensive, there is no point in waiting for the cow and milk business to start making a profit.
Don't save money - buy only purebred cows
Financial plan
This is an individual question; the price of the issue depends on many factors, and mainly on the region. The further south you go, the cheaper, but it all depends on the scale of the enterprise. The financial plan should clearly show the entrepreneur how much money he needs to organize the project. These numbers should be as accurate as possible.
Today, all over the world, including in Russia, such a branch of the national economy as livestock farming is developing at a rapid pace. This is a very profitable business. There are many different options here: breeding cows for meat, milk, for the birth of young animals, and much more. In any case, breeding cows will benefit its owner.
Currently, beef and milk are the most popular products on the Russian market.
Now we live in a time when genetically modified products are being introduced into the food industry, while natural ones are becoming less and less available.
Due to all this, the demand for high-quality and natural products is growing, and cows are their main supplier. It is difficult to imagine the daily diet of any Russian without meat and milk, because these are sources of useful substances: proteins, fats, carbohydrates, vitamins and minerals. According to experts, a person should drink 500 ml of milk per day every day just to maintain the condition of all organs and systems. Let's take a closer look at cow breeding as a business for a small town.
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Business plan for cow breeding
To organize your business in this direction, you need to build a so-called business plan. It should include: a rational choice of location for the future barn, defining goals, objectives and directions, collecting the necessary documentation, purchasing equipment and animal care items, organizing the technological process for collecting milk and obtaining meat, determining the customer base and selling raw materials to trade points, and in addition, calculation of expenses and profits. A business plan needs to start with choosing a place for future cow breeding. It is possible to build a barn from scratch, but it will be expensive. It is best to locate on the site of old, abandoned farms by purchasing this land and renting premises.
This way you can save some money and time. The room should be spacious. Its area will depend on the number of livestock. The second stage is collecting the necessary documentation. If the business plan involves breeding cows for profit, then you will have to obtain permission from the state sanitary and epidemiological supervision, fire inspection and register as an individual entrepreneur. When selling meat, you will definitely need to obtain permission from the veterinary service. All this can be done in a week or two.
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Main goals, business objectives
A cow breeding business plan is, first of all, a definition of the main direction of entrepreneurship. Cows can be bred for meat, milk, or a combination. In addition, young animals can be bred for sale. Another rare option is breeding pure breeds for the purpose of selling them. But this is quite hard and painstaking work, although very profitable. The main task is to make a profit. But for this you need to try very hard. To set up a good barn, you need equipment. It is mainly represented by machines for feeding and packaging feed, as well as for collecting manure. Such equipment is not cheap. It would be advisable to organize your own slaughterhouse; for this there should be a separate room.
Cows are kept in stalls. It is best to start a business with 7-10 goals and see if it is profitable or not. If yes, then the herd can be increased. The room for keeping cows should be well heated, light, and free from drafts and cracks. The temperature should not drop below 17 degrees. Animals are provided with complete food. In summer, it is recommended to graze them in the meadow, and to buy food in cold weather. This is primarily dry hay, as well as mixed feed. Modern supplements must be introduced into the diet, as they compensate for the deficiency of vitamins and microelements. The water must be clean. For feeding, stalls are equipped with special feeders, where food is supplied using equipment or manually.
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Purchase of young animals and sale of raw materials
A cow breeding business plan includes purchasing animals. This is the most critical part of the business. It is important to remember here that it is better to buy young animals from a reliable breeder, and it is best to bring your own specialist in this matter to the deal, who will tell you who is more profitable to buy. When purchasing, all cows must have a so-called passport, including date of birth, age, time of vaccination, names of diseases she once suffered from, and number of calvings. The appearance of cows is of great importance. If you need a cow for milk, then it should have a barrel-shaped body, a large belly, thin bones, weak muscles, small thin horns, and an oblong head. High-yielding cows have large, bathtub- or cup-shaped udders. After the business bears its first fruits, you need to organize sales of the products.
The most preferable option would be to sell milk to nearby dairy factories, and meat to meat processing plants. Young animals can be sold through acquaintance or on the market.
- Product Description
- Marketing Plan
- Production plan
- Milk
- Meat
- Calendar plan
- Financial plan
- Which equipment to choose
- Similar business ideas:
We propose to consider a business plan for cattle breeding using the example of a small farm in the Ulyanovsk region. This business plan can be used as a feasibility study for agricultural activities. enterprises when receiving a bank loan or participating in government support.
Description of the cattle breeding project
We bring to your attention a feasibility study for the creation of a small enterprise for breeding cattle.
The goal of the project is to breed beef and dairy cattle for subsequent agricultural sales. products to the population in the form of milk and meat.
The production of this type of product is a promising direction, since the meat products market is one of the largest food markets. Meat products are in constant demand both among the population and among organizations when purchasing meat products for further processing.
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Where to start implementing the project
- Construction of premises for livestock breeding;
- Purchase of young animals for meat and dairy production;
- Growing and breeding animals in order to obtain a finished product in the form of milk and meat;
- Sales of finished products (milk and meat) to the population.
To implement the project, it is planned to attract credit funds in the amount of 650 thousand rubles. The entire amount of the loan received will be used for the purchase of fixed assets and the construction of premises for keeping livestock.
How much money do you need to start a cattle breeding business?
| No. | Name | Amount, rub. |
| 1 | Construction of an industrial premises 30m*6m (incl.) | 170 000 |
| 1.1 | Expanded clay concrete blocks (3 thousand pieces) | 90 000 |
| 1.2 | Sand (10t) | 4 000 |
| 1.3 | Cement (50 bags) | 14 000 |
| 1.4 | Lumber (5 cubic meters) and roofing | 40 000 |
| 1.5 | Crushed stone (10t) | 12 000 |
| 1.6 | Construction works | 10 000 |
| 2 | Cows, 5 heads | 250 000 |
| 3 | Young cattle (bulls), 12 heads | 170 000 |
| 4 | Feed (barley, oats, hay, straw) for 12 months | 60 000 |
| TOTAL | 650 000 | |
To carry out the production activities of the enterprise, an individual entrepreneurship was registered.
Which OKVED code should I indicate when registering this business?
The main activity of an individual entrepreneur is OKVED code 01.2 - livestock farming.
Which tax system to choose for cattle breeding
The simplified taxation system (STS) was chosen as the taxation system - 6% of gross income.
At the beginning of the project, the following livestock will be purchased:
- Cows aged 24 months - 5 heads;
- Young cattle (bulls) aged 6 months - 12 heads;
A total of 17 goals.
The main part of the feed will be purchased from farmers. processing enterprises at retail prices. The rest of the feed (hay and straw) will be partially procured by the individual entrepreneur.
The production activities of the farm will be carried out with the involvement of 2 hired workers for general laborer positions.
Table No. 1: Planned staffing
| Job title | Number of employees, people | Salary, rub./month. | Total, rub. |
| Handyman | 2 | 10 000 | 20 000 |
| TOTAL | 2 | — | 20 000 |
Product Description
The project provides for the purchase of young cattle from third-party organizations with further raising of the livestock on the farm and the sale of meat and dairy products.
The activities of our farm will be divided into 3 stages:
- purchase of young animals (up to 6 months old);
- animal care;
- sale of the resulting products - meat and milk.
To obtain high milk yield, it is planned to purchase a highly productive black-and-white breed for dairy production. This breed of cow is capable of producing about 8,000 liters of milk with a fat content of 3.5 - 4% or 20 liters of milk per day during the lactation period (305 days). The live weight of an adult cow is from 450 to 600 kg. In one calendar year, a cow consumes an average of 18 tons of feed.
To raise beef cattle, calves of the Simmental breed will be purchased. This breed of cattle is characterized by increased meat productivity; by the age of 18 months, the bull gains weight from 850 to 1100 kg.
The cattle feeding diet will include:
- Compound feed;
- Straw;
- Hay;
- Haylage;
- Roots;
- Beet;
- Potato;
- Cake and meal.
Marketing Plan
The main competitors of our farm will be similar producers, personal subsidiary plots, peasant farms and larger agricultural production complexes.
Sales of manufactured products are planned to be carried out in the following areas:
- Sales of products at retail outlets in Dimitrovgrad, in particular at the “meat market”;
- Sales of meat and milk in the locality at the place of registration of the individual entrepreneur;
- Sale of manufactured products in small wholesale to reseller organizations;
- Sale of products in the form of exit trade (from a car) in neighboring settlements.
Sales of products will be carried out at prices:
- Beef retail: 250 rub./kg;
- Beef wholesale: 170 rub./kg;
- Milk retail: 35 rub./l.;
- Milk wholesale: 24 rub./kg.
It is planned to sell up to 2250 liters per month. milk and 350 kg of meat, or:
- Retail milk - 1000 kg;
- Wholesale milk - 1250 kg;
- Retail meat - 150 kg;
- Meat wholesale - 200 kg.
Production plan
To determine the main economic indicators of the enterprise’s activity, we will calculate the planned expenses and income of our farm.
To grow and maintain 1 head per month, an average of 1.5 tons of feed (hay, straw, grain) is required. One adult cow eats about 50 kg of feed per day. The average cost of a feed ration (50 kg) per day is 80 rubles, per month - 2400 rubles per head. To maintain 17 heads per month, an average of 41,000 rubles will be spent.
In total, the total monthly costs will be 79,000 rubles.
How much can you earn from this business?
Let's move on to calculating the monthly gross income of the farm.
Milk
On average, one cow produces 20 liters of milk per day. For the first 2 months, 10 liters of milk will be used to feed the calves. Subsequently, all milk is used for sale. Considering that 2 months are allocated for calving, the planned volume of milk sales per year will be 5400 liters per cow:
- 30 days*20 liters/day*8 months=4800 liters
- 30 days*10 liters/day*2 months=600 liters
Accordingly, from 5 heads per year you can get up to 27,000 liters of milk.
Meat
Bulls purchased at the age of 6 months, with proper nutrition and care, will gain up to 500 kg of live weight in 1 year; with a meat yield of 70%, the yield is about 350 kg each.
Accordingly, from 12 heads you can get up to 4200 kg of marketable meat.
Table No. 3 Average monthly revenue of the farm
| No. | Name | Price per kg, rub. | Sales volume per month, kg. | Revenue per month, rub. | Revenue per year, rub. |
| 1 | Milk at retail | 35 | 1000 | 35 000 | 420 000 |
| 2 | Milk wholesale | 24 | 1250 | 30 000 | 360 000 |
| 3 | Meat at retail | 250 | 150 | 37 500 | 450 000 |
| 4 | Meat wholesale | 170 | 200 | 34 000 | 408 000 |
| TOTAL | X | X | 136 500 | 1 638 000* | |
In total, the total monthly revenue will be 1,638,000 rubles.
* For ease of calculation, sales volumes are indicated by month. However, in the financial forecast, for the first time, meat will not be sold for several months (unlike milk), but as the young animals grow, the entire volume of meat will be sold. As a result, the proceeds received from the sale of meat will cover all previous costs of maintaining the animals, and the remainder of the funds will be our profit.
Calendar plan
To implement the project it is necessary to carry out the following activities:
Table No. 4 Project implementation schedule
| N p/p | Name of the project stage | start date | expiration date | Stage cost |
| 1 | Construction of a production facility | 01.05.2013 | 01.07.2013 | 170 000 |
| 2 | Purchase of young cattle | 01.07.2013 | 15.07.2013 | 420 000 |
| 3 | Purchase of feed | 01.07.2013 | 15.07.2013 | 60 000 |
| 4 | Start of activity | 15.07.2013 | — | — |
It is planned that milk sales will begin in the fall of 2013. The sale of the first batch of meat is planned for the summer of 2014.
Financial plan
To organize a farm, investments in the amount of 650 thousand rubles will be required. A bank loan will be issued for these purposes.
The main expenses of a farm will be the cost of raising animals, that is, for feed - 41 thousand rubles per month. The second largest expense item is the payment of wages to two workers - 20 thousand rubles. per month.
Based on the above data, it is possible to calculate the main indicators of the economic efficiency of the farm.
How much can you ultimately earn from cattle production?
Net profit based on annual sales of milk and meat will be 556,720 rubles.
Farm profitability = 58,7% Project payback at these rates it will be 14 months.What can you do right now?
Download the premium business plan for cattle breeding with quality guarantee
This is a full-fledged, finished project, and not a school essay. There are no such projects in the public domain. Contents of a business plan for cattle production:- Confidentiality
- Summary
- Project implementation stages
- Object characteristics
- Marketing Plan
- Technical and economic data of equipment
- Financial plan
- Risk assessment
- Financial and economic justification for investments
- conclusions
Which equipment to choose
- Tractors for transporting feed and removing manure from barns.
- Various attachments for tractors necessary for collecting and preparing hay: mowers, rakes, tedders, plows, etc.
- Gazelle for transporting dairy and meat products to the market.
In addition to the basic equipment, it is also necessary to purchase milk cans, shovels, forks and other agricultural tools.
What documents are needed to open
Raising cattle for commercial purposes to sell meat and milk requires registration of an individual entrepreneur or LLC, depending on the volume of production and the number of co-founders. Documents required for registration of an individual entrepreneur: an application certified by a notary, a photocopy of the passport and ID code, a receipt for payment of the state duty, as well as an indication of the required OKVED codes. After this, a veterinary examination of the animals will also be required in order to be able to sell meat and milk on the market.
Do I need permission to open?
To open a farm, you will need to obtain permission from the fire inspectorate and sanitary-epidemiological station. In addition, you need to open up the face of communication and choose the optimal form of taxation.
It is better to focus cattle breeding on the production of two types of products: milk and meat. To sell milk, the best option would be to enter into a wholesale distribution agreement with nearby dairies. This way you can always supply fresh goods to the market, regardless of the amount of milk produced. To sell milk at retail, we recommend considering the option with selling milk through a milk machine.
Additionally, you can organize the production of skins, wool, and young animals. Also remember that success in the cattle business lies primarily in the health of the animal, so hiring a full-time cattle breeder and veterinarian is a must. It is better to start a business with a small farm, and gradually invest the money received in its expansion. This will allow you to better feel the market, coordinate contact with the consumer and amortize start-up costs.
How to increase your chances of success before the project starts
Before you finally decide which breeding business to start, pay attention to other business plans, it is better to invest a little time and a small amount of money on detailed research now, than later sadly think about who needs my products.
4 ready-made business plans for breeding that you can download right now
See also several similar premium business plans:
- Business plan for breeding sheep, goats, rams
- Poultry farming business plan
- Ostrich breeding business plan
- Rabbit Farm Business Plan
Any business requires registration and accounting:
- Open an individual entrepreneur for free without leaving home (online)
- How to do basic bookkeeping and submit reports via the Internet without a staff of accountants, using an online service
Breeding cows for milk is a profitable and profitable business in Russia, as it can bring impressive profits to the farmer and the opportunity to use natural, environmentally friendly products for personal purposes. For larger production, farmers can choose the most dairy breeds of cows.
The dairy industry is one of the most important elements in modern livestock farming. While in the structure of the Russian meat market, beef accounts for only about 15% of total consumption, cow's milk and its processed products account for more than 90% of the dairy market. Thus, the demand for this type of product is high enough for dairy farming to be of some interest to investors and entrepreneurs. Well, among those villagers who do not want to move to the city and are determined to stay in their native land, raising cows for milk is becoming a popular type of business.
Dairy market in Russia
According to statistics, the average consumption of milk and dairy products in our country is about 250 kg per person. This is an average of about 700 g per day, which on the one hand is quite a lot, but on the other hand, our fellow citizens do not reach medical standards for the volume of milk consumption by about 30%. This is due not only to the lack of habit of drinking milk among residents of large cities, but also to the general shortage of this product on the domestic market.
According to calculations by the Ministry of Agriculture, even with such a low level of consumption, Russia's level of self-sufficiency in milk and dairy products is slightly more than 80%. Moreover, to achieve a minimum level of food security, this indicator must at least exceed 90%.
If we look at the general state of dairy production, the situation does not look positive at all. At the end of 2015, gross milk production at enterprises of all types (including private households with a cow) amounted to 30.78 million tons, which almost exactly repeats the result of the previous 2014. At the same time, as noted in the Ministry of Agriculture, milk production at livestock farms increased by 2.4%, or by 350 thousand tons (up to 14.7 million tons), but in private farmsteads of villagers, which account for about half of dairy production in the country, a decline of 474.5 thousand tons was recorded. Thus, the long-term trend towards increasing the share of industrial milk producers in total output continues.
Another trend affecting the overall picture in the industry in 2015 was an increase in milk yield per cow. Thus, in large livestock complexes, one cow produced an average of 5233 kg of milk, which is 336 kg, or 6.9% more than in 2014.
After the closure of the Russian market for most European producers in 2014, the production of dairy products in Russia increased significantly in 2015. In particular, they began to produce 21% more cheese than in 2014 (414 thousand tons), cheese products - by 18% (121 thousand tons), cottage cheese and curd products - by 6% (728 thousand tons). The production of butter also increased, although not as significantly, by 3% (258.9 thousand tons). And only producers of milk powder and cream reduced production volumes: 111.7 thousand tons of this product, that is, 14% less than in 2014.
Problems of the dairy farming industry
As can be concluded based on the statistics given above, the Russian village is gradually losing its status as a leading milk producer, and the market is gradually passing into the hands of livestock enterprises, that is, business. However, the increase in milk production in livestock farms is proceeding at a rather slow pace, sometimes not keeping pace with the rate of decline in production indicators in rural areas. After the ban on the import of Ukrainian and European cheeses, milk and butter, it was expected that Russian producers would begin to increase volumes at a very high rate, but this did not happen. While cheese and butter makers actually showed an increase of tens of percent, milk production increased by only 2.5%.
The main reason for this, as before, remains the rather low profitability of production itself in the dairy industry. Entrepreneurs are much more willing to invest money in expanding existing and opening new poultry and pig farms, where profitability is 17% and 20%, respectively. Against this background, breeding dairy cows, which provides only 6-8% profitability (and even then taking into account government subsidies), does not look at all attractive.
However, low profitability is only half the problem. The other half is the increased cost of the start-up investment to expand or launch a cattle business. After the government stopped subsidizing the purchase of breeding stock abroad in 2015, hoping to stimulate the growth of the domestic market for breeding animals, domestic cattle breeders found themselves in a situation where Russian breeding plants are not yet able to produce sufficient volumes of high-quality cattle, and somewhere to get it all equally necessary. So you still have to buy animals abroad, but only more expensive (devaluation plus the abolition of subsidies).
In addition to rising prices for livestock, start-up costs for the construction of buildings for livestock enterprises and equipment for them have also increased. This is due to inflation and devaluation, which significantly affected the cost of building materials and equipment.
All these factors together have significantly delayed the payback period for investments in large-scale milk production. Instead of the previous 10-12 years, the payback period has reached 15 years, which is too long for domestic business.
Dairy cow breeds
Despite all the difficulties described above, dairy farming continues to be an interesting area for business, especially for small and medium-sized ones. The key difference between mini-farms and large livestock complexes is their flexibility and easy adaptability to current circumstances. If all large livestock centers are like two peas in a pod, since they are made according to the same patterns, then the family farming business always adapts to local conditions, which is why two mini-farms will always be very different.
For example, if a farm has only two to three dozen cows, it is not necessary to keep them in a pen all year round. If there are free, unoccupied meadows in the area (something, but there is enough space in Russia for everyone), in the warm season the animals can be kept free grazing. And this is just one of many ways to reduce costs and speed up the return on investment.
However, in any case, breeding cows for milk as a business will be successful only if you breed highly productive purebred animals from the very beginning. Fortunately, for small farms it is possible to purchase a batch of such cows even at domestic breeding plants.
Today, the following breeds are most popular among professional farmers:
Breeding cows for milk as a business
Cattle breeding business, like any other type of entrepreneurial activity, first requires careful, lengthy preparation and only then decisive but deliberate actions. If you plan to launch a small farm with several dozen animals, then the entrepreneur himself will have to assume the bulk of the responsibilities for business planning and production management. And for this it is necessary to carefully study the theoretical part of the issue and it is highly advisable to familiarize yourself with the practice adopted at already operating enterprises.
In general, preparation for starting your own dairy farm should include the following steps:
Having dealt with the preparatory part, you can begin to draw up a business plan. From this moment on, organizing a dairy business is no longer fundamentally different from any other production activity: calculating start-up and operating expenses, drawing up a forecast of income, and preliminary calculation of production costs. If all the numbers in the business plan come together as desired, you can proceed directly to creating a business: start building barns, purchasing equipment, registering a business, hiring staff, purchasing livestock, organizing the production process.
Raising beef and dairy cows for sale is a very profitable business, especially if you manage to put this business on stream. In addition, breeding and selling cows will not require large expenses from the owner of the enterprise, which any novice entrepreneur is afraid of. But, at the same time, we must not forget that beef cattle breeding in itself is cheaper than dairy farming. Although the second does not require any supernatural financial investments.
A cow business can only become successful if its owner has the necessary knowledge, skills and abilities. It is simply impossible to start breeding animals without the slightest idea of what is happening in the complex, and without having a strategy. Accordingly, before opening such a business, you need to study not only the features of breeding animals of a given species and specific breeds, but also the following points:
- features of keeping cows in summer and winter;
- nuances of feeding animals and their basic diet, all the characteristics of different feeds, as well as the possibilities of their use;
- which breeds of cows are preferable for the production of meat products, and which are best raised for milk production;
- how, to whom and where manure can be sold.
When the topic is fully studied, it will be possible to start breeding cows as a business. It first of all involves the creation of an enterprise for which you will need:
- buy or lease a plot of land on which the complex will be built;
- build a barn;
- buy young animals, choosing animals depending on what you plan to breed and sell cows for - for meat or for milk.
A production facility for cows usually has an area of 30x6 m. It is best that it is located in a rural area, and even preferably it is in close proximity to other agricultural enterprises, for example, those involved in growing plants. Those enterprises that are located next to fields and vegetable gardens will have a better chance of selling manure successfully and without much difficulty. In addition to the production premises, it is necessary to build a heated room in which the cows will be bred directly. To accommodate 30 heads of cattle, it will be enough to have an area of 180-200 square meters. m.
What formalities can’t be avoided?
To open a complex for breeding cows for sale, you need to register as an individual entrepreneur using OKVED code 01.2 (livestock husbandry). For doing business and convenient work, it is preferable to choose a simplified taxation system, which involves withholding 6% tax from the gross income of the enterprise.
When creating a business, you need to think not only about potential future consumers, but also about competitors. That is, the complex must be located in such a way that there are no similar producers of meat or dairy products, large or small complexes for breeding cows for sale nearby, whose main activity is also breeding cows at home.
- large markets;
- retail outlets located in the nearest settlements;
- private resellers, or small organizations engaged in purchasing products from entrepreneurs in bulk.
What is the cost of entry into a cow breeding business?
The total amount that an entrepreneur may need as an initial investment in a business is 600-700 thousand rubles. It is quite possible to borrow this money, and it will be spent on the following:
- construction of the complex will cost an average of 170 thousand rubles;
- the purchase of animals usually begins with the purchase of 5 cows, which will cost 250 thousand, and 12, on which you will need to spend approximately 170 thousand rubles;
- purchasing feed for a year (stocks of hay, straw, barley and oats) will cost about 60 thousand rubles.
At the initial stage, another 20 thousand rubles should be planned for paying workers. For an opening enterprise, initially you will need only two general workers, whose average monthly salary can be calculated at 10 thousand rubles. It is assumed that in the coming months, workers' salaries can be allocated from the profits already received from the business.
We must also not forget about the special equipment that will be required when breeding cows on a large scale, in particular milking machines. Cow breeding as a business almost always brings its owner a stable income, so this kind of enterprise is already considered profitable. If we talk about specific figures that an entrepreneur can count on, here are the approximate prices for the products sold:
- beef retail – 250 rubles per kg;
- sale of beef meat wholesale – 170 rubles per kg;
- retail sale of milk – 35 rubles per liter;
- wholesale milk sales – 24 rubles per liter.
It is assumed that with the above-mentioned number of livestock, it will be possible to sell 300 kilograms of meat and 2-2.5 thousand liters of milk per month. Thus, the profit can be 50-75 thousand rubles if you sell meat, and 48-70 thousand rubles if you sell milk. Consequently, the annual income of the enterprise in this case will be 600-900 thousand rubles for the sale of meat, or 570-850 thousand rubles for the sale of milk.
Every year, 60 thousand rubles will be spent on purchasing feed, and 240 thousand rubles will be spent on paying workers. If the land plot for the construction of a complex for breeding cows was leased, then certain expenses must be planned to pay for it. Another cost class is utilities. But both rent and utility bills will be different in each specific case, so it is impossible to give any figures in advance.
Purely theoretically, in general terms and complexity, half of the total income of the enterprise will remain as net income from the business of breeding cows for sale. These amounts will be enough to easily recoup the initial investments made in it within 1.5-2 years from the start of the business and gradually begin to expand. Natural business expansion in this case means a gradual increase in the number of cattle, access to ever new, larger markets and a systematic increase in the level of profitability of the enterprise.