Commercial Dairy Farming
Your cows – Our farm.

Your cows – Our farm is an initiative of Paalaar Urban Farms to help budding entrepreneurs get into dairy farming with minimal investment and minimal risk

A micro dairy farm can be commercially successful only if it is able to realise the best value for its milk and the best price is given only by an end consumer. Most local milk societies pay between Rs 27/- and 35/- per litre of milk to a dairy farmer. However, by delivering milk directly to end consumers at a price of Rs 60/- per litre, a dairy farmer can expect to realise between Rs 40/- and Rs 45/- per Litre of milk after deducting packaging and delivery expenses from the sale price. This is a huge difference and can make a tremendous amount of impact on the success and growth trajectory of the dairy unit.

A dairy farm can be split into 2 distinct units, namely animal unit and milk processing unit. A dairy farmer, if he is planning to sell milk to local milk societies, he/she has to invest only on an animal unit comprising of: –

• Cows,
• Housing for cows,
• Land and equipment for fodder cultivation,
• Staff quarters for the caretakers to stay on the farm 24X7, and
• Storage systems for the concentrated feed.

However, direct sales to end consumers require a dairy farmer to invest not only on an animal unit but also on a milk processing unit comprising of: –

• Milk storage systems like Pasteurizer, Bulk milk cooler, Refrigerator and a Diesel generator for power backup, 
• Glass bottles, bottle cleaning systems and a bottle sterilizer,
• Thermal insulated boxes to hold the milk bottles during transportation,
• Vehicle to door deliver milk to end consumers, and
• Cream remover machine and Paneer making machine for the surplus milk.

Most budding entrepreneurs think that they can start their dairy enterprise with just an animal unit and after earning sufficient money through sales to local milk societies, they can plough back the earnings and invest the same in a milk processing unit. However, this never happens. The margins that such dairy units make are so low that even survival beyond a couple of years become impossible and these units close down. The fact that a micro dairy unit has to have both an animal unit and milk processing unit to survive, succeed and grow raises the initial investment beyond the reach of many ordinary middle class budding entrepreneurs.

To ensure that budding dairy entrepreneurs succeed in their passionate endevaour, Paalaar Urban Farms has decided to offer a platform to such entrepreneurs to set up their micro dairy farms on our integrated farms. The concept is simple. Paalaar Urban farms will provide: –

1. Housing for cows – Sheds.
2. Facilities to store cow fodder.
3. Milk processing center.
4. Milk pasteurizing machine.
5. Bulk milk cooler.
6. Refrigerator.
7. Bottle cleaning machine.
8. Bottle sterilizer.
9. Cream remover.
10. Paneer maker.
11. Diesel generator.
12. CCTV Coverage
13. Marketing & sales support (if required).
14. Milk bottles (If marketing & sales support is required)

The dairy entrepreneurs have to bring their cows and begin their commercial dairy enterprise on our farms. The milk and calves yielded by the cows belong to the dairy entrepreneurs while the cow dung, cow urine and organic waste generated by the animal unit will belong to the integrated farm. The dairy entrepreneurs will carry out and solely responsible for: – 

1. Cow management.
2. Veterinary care management.
3. Labour management.
4. Milk management.
5. Fodder management.
6. Value addition on surplus milk.

We are sure that this proposal may be of interest to many of you and would like more light to be thrown on it. Let us provide you more details through a Frequently Asked Questions format as that will be most suitable for easier understanding.