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: –
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: –
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: –
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: –
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.
This is a novel proposal that we have designed to help new entrepreneurs get into commercial dairy farming with minimal investment and minimal risks to their investments. Therefore, we are opening up just one of our upcoming integrated farms coming up in Cheyyur under the Your cows – Our farm business model at this point intime. Based on the outcome of this pilot rollout, we may offer our other farms located near Chengalpattu and Tindivanam at a future date. The precise location for our pilot rollout can be checked out through the google coordinates. https://goo.gl/maps/aqRFQ7GSJcTr9Qzp8
Since this pilot project is located between Chennai and Pondicherry, a resident of Chennai who wishes to get into dairy farming will be given priority. Much higher priority and bigger support will be given to women entrepreneurs.
What you do with the milk that is produced by your cows is entirely your lookout and we have no say in it. We want you to be a hardcore businessperson and therefore sell it to whoever gives you the best price.
With just 5 cows, you won’t be able to produce sufficient volume of milk to transport it to end consumers and realise a good price for your produce. If you don’t realise the best price for your produce, you are likely to fail and lose your hard-earned money which we don’t want you to do.
Secondly, our infrastructure is being built for 30 milch animals with a capacity of 300 Litres of milk per day and underutilization of the infrastructure will defeat both your objective and our objectives.
Yes, we are open to discussing such a proposal and even help you set up such a cooperative dairy farm if you so desire.
Our objective is to empower you and therefore you can be assured of our guidance and support to the extent possible.
Such a service will be made available to you on a chargeable basis on a per litre basis.
We expect that in three years, you are in a position to branch out independently and give way to others. However, if you would prefer to continue, we may start to charge you a rental for the infrastructure we provide.
That will indicate that the dreams of both of us have come true.
My fingers are aching from typing answers. Please pick up the phone and call us at +918939773322.