Preface Development of entrepreneurship is crucial in harnessing vast untapped human resource of a country like India. Given the natural endowment of resources the fact remains that development or under development of any nation is largely the reflection of the abundance or scarcity of entrepreneurship. Entrepreneurship development is an approach of developing human resources. It is concerned with the growth and development of people towards high level of competency, creativity and fulfillment. This approach helps people to grow in terms of self-control, responsibility and other abilities; and then tries to create a climate, in which all the clientele may contribute to the limits of their improved abilities. It is assumed that expanded capabilities and opportunities for people will lead directly to improvement in operating effectiveness.

Twenty first century is the century of entrepreneurship and every individual can be an agent for innovation and change. Entrepreneurship is regarded as one of the most crucial factors in the economic development of every region of the country. It widens the horizons of economic development even in the socially and industrially backward regions. Dynamic entrepreneurs are considered to be the agent of change in a society. Entrepreneurs play a very important role in generating new employment and setting up new business. The problem of poverty, inequality and regional imbalances can be tackled with the development of entrepreneurship. However, in all economic development activities more and more focus is being centered on entrepreneurship of the people. Entrepreneur has been now recognized as a concept, not only for starting industries but also in the development of dairy enterprise. In India, it is believed that tremendous latent entrepreneurial talent exists which, if properly harnessed, could help in solving many of the serious problems facing the country.

a. Dairy entrepreneurship A dairy entrepreneur is a person who undertakes dairy based activities such as rearing of milch animals, production of milk, processing of milk, manufacture of milk products and marketing of milk and milk products and also involved in buying and selling of other inputs of dairy business. He finds ways and means to create and develop a profitable dairy business. Dairy entrepreneurs see their farming as a business and as a means of earning profits. So they are willing to take calculated risks to make profits and to grow their businesses. They are also motivated to improve dairy production through mechanization and application of technologies in the field of dairy and allied enterprises.

The total milk production in the country for the year 2013-14 has been estimated at 126 million metric tonnes and the demand is expected to be 180 million tonnes by 2020. To achieve this demand annual growth rate in milk production has to be increased from the present 2.5 % to 5%. Thus, there is a tremendous scope/potential for increasing the milk production through profitable dairy farming. a. Requirements of project report for setting up dairy units Project report can be prepared by a beneficiary after consulting local technical persons of State Animal Husbandry Department, DRDA, Dairy Co-operative Society / Union / Federation / commercial dairy farmers.

1. General In this the nature of objectives of the enterprise i.e. setting up a dairy farm, details of proposed investments, specification of the project area, name of the financing bank branch, status of beneficiary: (Individual/Partnership/Company/Corporation/Co-operative Society / Others) details of borrowers profile in terms of capability, experience, financial soundness, technical / other special qualifications are mentioned. 2. Technical Aspects     a)    Location, Land and Land Development: This involves the site details of the proposed project. The total land area and its cost. Also, particulars of land development such as fencing, boundary wall, gates are mentioned in it. Thus, site map is also mentioned in this subheading.     b)    Civil Structures: Several structures like sheds, milking room, store room, quarters for dairy farm manager / labourers are also to be constructed. So, their measurements as well as approximate costs need to be mentioned.

Introduction Demand of dairy products is on the rise in India. India‘s demand forecast for milk and milk products is more than the current supply of these products. To meet this demand entrepreneurship initiatives are need of the hour. Further, younger generations of India are more interested in commercial dairy farming rather than subsistence based farming. Therefore, scientific as well as commercial dairy entrepreneurial training to farmers about advanced technology used in breeding, feeding, housing and healthcare is essential. a. Barriers for Entrepreneurship in dairy An average dairy entrepreneur faces several barriers to start a new enterprise. Some of them are as under     1.    Lack of financial support: A major stumbling block for many dairy farmers to expand production or diversify into new high value enterprises is lack of access to finance. Farmers who are starting new enterprises often face difficulty raising investment capital.

    1.    Technical support     2.    Financial support 1. Technical support A. Institutes for Professional skills in dairy based enterprises: Several institutions offer training programmes in dairy based enterprises: I. Society for Innovation & Entrepreneurship in Dairying (SINED) Society for Innovation & Entrepreneurship in Dairying (SINED) is registered under society regulation act 1860, hosted by National Dairy Research Institute, Karnal for promotion of entrepreneurship in dairying. The major activity of the society is to administer a Technology Business Incubator which provides support for technology based entrepreneurship in Dairying.

Any farmer/Entrepreneur who wishes to avail bank loan for starting or expanding his dairy enterprise should apply for loan to the nearest branch of a commercial bank, regional rural bank or co-operative bank in their area in the prescribed application form which is available in the branches of financing banks. Preparing Projects for Bank Appraisal     1.    The entrepreneur can prepare the project or Scheme report after consulting local technical persons of State Animal Husbandry Department, DRDA, Dairy Co-operative Society / Union / Federation / commercial dairy farmers.       2.    The project report should have mention about practical training and experience in dairy farming. So in order to meet this requirement the inexperienced entrepreneurs can visit progressive dairy farms and government / military / agricultural university dairy farms in the vicinity to have first hand information about the enterprise. Nowadays several online portals (www.aaqaa.com.) also provide useful guidance and information on setting up dairy based enterprise.

1. Technical Feasibility of Dairy Unit This includes following information such as       1.    Availability of good quality animals in nearby dairy market,       2.    Availability of good grazing grounds and lands,       3.    Availability of green/dry fodder,       4.    Availability of concentrate feed, medicines etc.       5.    Further availability of veterinary aid, dairy breeding (AI) centre, milk collection and marketing centre are also important.     6.    Nearness of the selected area to veterinary/breeding/milk collection centre and the financing bank’s branch.     7.    Capability of the owner and employees such as technical knowledge and skill.

According to a recent study, over 94% of new businesses fail during first year of operation. Lack of funding turns to be one of the common reasons. Money is the bloodline of any business. The long painstaking yet exciting journey from the idea generation to revenue generating business needs a fuel named capital. That’s why, at almost every stage of the business, entrepreneurs find themselves asking – How do I finance my startup? Now, when an entrepreneur require funding depends largely on the nature and type of the business. Here is a comprehensive list of funding options for startups that will help the entrepreneur to raise capital for business.

The Feasibility study of dairy project cover capital investment on land, building, infrastructure, working capital, manufacturing and marketing cost, and financial projections to work out its viability. Once viability is established, a detailed project report should include the following ten steps for project planning and implementation: First Step: This step involves appointing a consultant to plan the project in relation to the design the dairy plant, proposed market and select an architect and a structural consultant. Prepare tender documents for civil works and plant equipment. Study the demand-supply of target products through a market survey to formulate the suitable product mix in terms of volume and range. e.g. study of various dairy products e.g. Khoa, ghee, Ice cream. The capacity of the plant and the provision of various facilities would be determined by the products demand.

    a.    General Principles and practices     b.    Analyzing project appraisals and reports     c.    Capital Expenditure decisions, reinvestment and payback     d.    Assessing project profits. a. Financing the dairy enterprise Dairy rearing provides triple benefits of income, employment and nutritional security to the society and is important source of subsidiary income to small/marginal farmers and agricultural laborers. Finance is a prerequisite and of paramount importance for setting up of a dairy enterprise whether a dairy farming unit for milk production, sheep or goat unit/piggery unit, dairy/poultry processing unit etc. Decisions about credit are often most important judgments that people in the agricultural industry must make. These decisions often determine whether individuals operating in input, production, processing, and services based dairy enterprise would succeed in making profit.

a. Balance Sheets or Net worth Statement Balance sheet is the list of assets and liabilities owned by a business. It helps to calculate the growth in net worth of the business by calculating the change in assets less the change in liabilities. They represent the financial foundation on which the business is built. The term ‘balance sheet’ implies some sort of balance as part of the document. That balance represents the relationship between assets on one side, and liabilities on the other, and the basic accounting principle that assets always equal liabilities plus equity. Since it is simply a list of assets owned and debts owed, at a given time, with monetary values attached, we must understand the concepts of assets and liabilities. Assets are resources owned by or owed to the business such as dairy, equipment, real estate, and notes receivable. Assets are those parts of the business that are owned or controlled. They include any property/resource owned by a person or business e.g. cash, land, buildings, dairy, farm equipment and dairy-related share. Assets are usually listed on the top or on the left hand side of the balance sheet. They are classified in following ways

Dairy rearing is central to livelihoods and survival of millions of people of India. It is estimated that approximately 100 million people derive their live hood from dairy rearing as primary or secondary source of income. Dairy related activities help to maintain regular in flow of income for these households. Small farmers in India generate nearly half of their income from dairy and the value of cattle represents a significant part of their wealth, so the death of cattle poses a significant risk and affects farmers’ net worth and income. a. Type of risks to dairy based livelihoods Large animal’s are expensive and thus carry higher risk exposure. Dairy losses due to the disease, accident, theft, natural calamity can cause significant losses to these household. Sometimes owners are forced to sell their animals due to loss due to incurable disease/ disorder/ fodder and water scarcity and they are unable to rebuild their stock. Many times animal losses force them into poverty trap from where they are unable to recover. Risks faced by dairy owner’s dairy dependent livelihoods can be classified into two broad categories

Introduction Dairy is vital to the economics of many developing countries. Animals are a source of food, more specifically protein for human diets, income, employment and possibly foreign exchange. For low income producers, dairy can serve as a store of wealth; provide draught power and organic fertilizer for crop production and a means of transport. Consumption of dairy and dairy products in developing countries, though starting from a low base, is growing rapidly. Dairying has become an important secondary source of income for millions of rural families and has assumed a most important role in providing employment and income generating opportunity. Indian Dairying is unique in more than one ways. It ranks first with its 199.1 million cattle & 105.3 million buffaloes accounting for about 51 percent of Asia’s and about 19 per cent of world’s bovine population. It also ranks first in milk production with a production of 121.8 million tones in 2010-11 and the demand is expected to be 180 million tones by 2020. To achieve this demand annual growth rate in milk production has to be increased from the present 2.5 % to 5%. Thus, there is a tremendous scope/potential for increasing the milk production through profitable dairy farming. Besides milk, the manure from animals provides a good source of organic matter for improving soil fertility and crop yields.

Model Project for Setting Up 10 & 20 Cow Dairy Farm (Indicative)     ·    The models are only indicative and in no way designed to provide exact economics. Following guidelines may be used by the interested persons to work out the details of their project, depending upon the local market and conditions.     ·    An interactive module considering the land availability for fodder cultivation, willingness to opt for silage bunkers, type of chaff cutter (manual or machine operated), milking machine, mister set, etc. is under preparation.     ·    The proposed interactive module would require preference for set of inputs and intended herd size and accordingly generate output outlining the estimated investment, cost and return.

Assumptions     ·    Freshly calved animals in 1st or 2nd lactation are purchased in two batches of five animals each at an interval of 5 to 6 months.     ·    Cost of rearing calves not considered as it will be nullified by their sale value or retention value.     ·    Fodder cultivation considered in two acres and working capital for one crop / season considered. Two crops considered per year.       ·    Manure is utilized for fodder cultivation.

Interest Rate: Provisional Interest rate @ 15.75% p.a. has been taken for evaluation of the project report. However, the exact interest rate will be decided by the sanctioning authority on the date of sanction. Disbursement of loan: Funds for fodder cultivation and civil construction should be disbursed first. Development of sheds and fodder plots should be completed within 3 months from first disbursement. Then disbursement of 1st Batch cow (10 animals) will be done. Last disbursement for 2nd Batch cows (10 animals) should be done after 5-6 months of purchase of 1st batch cows. Insurance: The animals and other assets (sheds, equipment) must be insured. Wherever necessary, Risk / Mortality fund may be considered in lieu of dairy insurance.

Interest Rate : Provisional Interest rate @ 14.50% p.a. has been taken for evaluation of the project report. However, the sanctioning authority may consider the exact rate of interest applicable, on the date of sanction. Development of farm should be completed within 3 months from first disbursement.   Repayment of loan : A five-year repayment programme has been drawn with six months moratorium period, the installments will be monthly starting from 6th month onwards. The applicant has to make tie-up with the local MPCS and the repayment should be routed through the MPCS.

A) Selection of Dairy Cattle Proper selection is the first and the most important step to be adopted in dairying. Records are the basis of selection and hence proper identification of animals and record keeping is essential. Cross-breed animals with exotic inheritance of about 50 percent are preferable.   Bringing animals from different agro-climatic conditions causes problems due to non-adjustment in many cases. In case, purchase becomes absolutely essential it should be from similar environmental conditions as far as possible. General selection procedures for dairy breeds Selecting a calf in calf show, a cow in cattle show by judging is an art. A dairy farmer should build up his own herd by breeding his own herd. Following guidelines will be useful for selection of a dairy cow.

An efficient management of animals will be incomplete without a well planned and adequate housing of animals. Improper planning of animal housing leads to additional labor charges. The housing should have proper sanitation, durability, arrangements for the production of clean milk under convenient and economic conditions. a) General Housing Requirements Dairy animals will be more efficient in the production of milk and in reproduction if they are protected from extreme heat, and particularly from direct sunshine. This can be achieved through provision of shade in tropical and subtropical climates. If dairy animals are confined, the area should be free of mud and manure in order to reduce hoof infection to a minimum. Concrete floors or pavements are ideal where the area per animal is limited. However, where ample space is available, an earth yard, properly sloped for good drainage is adequate.

Introduction The dairy farmers mostly keep cows (indigenous and crossbred) along with few buffaloes for milk production. However, the genetic potential of the dairy animals is exploited fully, when they are fed with well balanced ration. Further, as feed cost is around 75% of the total cost of production, the success of the dairy farming depends not only on the quality of the ration, but also on the economy of the ration. Therefore, knowledge on the feeds and feeding of dairy animals is highly essential. What is Feed? Feed may be defined as supplementation of nutrients for development, maintenance and operation of day to day activities by animals.

Management of Calf Management before birth     ·    As calf management begins before birth, a few days before the calf is born, the pregnant cow is transferred to a maternity paddock, which should be near the homestead (for closer observation), well watered and free from physical objects.       ·    The signs of imminent parturition (calving) include filling of udder with milk and is turgid, vulva swollen with a string of mucus hanging from vagina.       ·    Insemination records can also be used to estimate the expected calving date.

Breeding of Heifers     ·    Regardless of age, puberty is reached when a heifer weighs approximately 40% of her mature body weight.       ·    Breeding however, is recommended when a heifer has reached 60% of her expected mature body weight. This is normally achieved when the heifer is 14 to 16 months old.       ·    Smaller breeds may be bred one or two months earlier than large breeds because they mature faster.       ·    Heifers in good condition and gaining weight at breeding time generally show more definite signs of estrus and have improved conception rates over heifers in poor condition and/or losing weight.       ·    Over-conditioned or fat heifers have been reported to require more services per conception than heifers of normal size and weight.

Milk Importance Milk contains approximately 86% water, 4.7% sugar (lactose), 4.1% fat, 4.2% protein and 1% minerals. It supports the growth of micro-organisms and thus is prone to contamination. The purpose of milking a dairy cow is to obtain milk that is fit for human consumption. Milk from the udder of a healthy cow contains very few bacteria and to ensure that it remains fresh for long it should be handled under conditions of good hygiene. Unclean milk can be a source of disease to the consumer, rejected at the market and so is a loss to the farmer, does not keep for long and is not good for processing.

General Signs of Healthy and Ill Animals Health It is a state of freedom from disease. It may also be stated as a condition of an animal in which all the body organs are normal and are functioning to their optimum capacity in relation to animal’s age, sex, work, and production with optimum pulse, temperature and respiration rates appropriate to the species, sex and environment. Disease Disease may be any deterioration from normal health or normal functioning of any or all the tissues or organs of animal body. Thus, it shuns animal to perform its normal physiological functions though the nutritional and environmental parameters are maintained normal.

A. First Aid 1. Abscess What to Do     ·    Abscesses should be examined by a veterinarian as soon as possible and within 24 hours.       ·    Fluid may normally drain from the site of an abscess. An abscess does not drain through the tube, but rather around the latex tubing. Therefore, it is important for you to clean the area around the drain twice daily with warm water.     ·    Apply a hot compress to the affected site at least two times daily for 3 to 5 days after the animal leaves the hospital. Wet a clean washcloth with very warm water and place it directly over the affected site, and then apply gentle pressure ideally for 5 to 10 minutes.

I. Dairy Farm Equipments

Suggested Readings A Brief Guide to Emerging Infectious Diseases and Zoonoses by World Health Organization. A draft on ‘Selection of Dairy Cattle’. A textbook of Animal Husbandry by G.C. Banerjee, Eighth Edition. A.K. Sah, B.S. Malik, Nishi and Vikram Singh (2005) Entrepreneurship as Critical Input for Dairy Development. Lead paper presented in National Workshop on Entrepreneurship Development in Dairy and Food Industry held at NDRI, Karnal, December 23, 2005. A.K. Thiruvenkadan, S. Panneerselvam and R. Rajendran; Non-genetic and genetic factors influencing growth performance in Murrah Buffaloes.  Anil Chauhan (2005) Organic Dairy & Foods Entrepreneurship and Alternatives. Lead paper presented in National Workshop on Entrepreneurship Development in Dairy and Food Industry held at NDRI, Karnal, December 23, 2005.