Cost Benefit Analysis: Is a 10-Buffalo Farm Profitable?

Cost Benefit Analysis: Is a 10-Buffalo Farm Profitable?

Running a dairy farm is a business of margins. Here is a high-level economic breakdown for a 10-Murrah buffalo farm in India (figures are estimates for 2025-2026).

1. Capital Expenditure (CapEx)

• Cost of Animals: 10 elite Murrahs @ ₹1,00,000 each = ₹10,00,000.
• Shed Construction & Equipment: ₹4,00,000.
• Total CapEx: ~₹14,00,000.

2. Operating Expenses (Monthly)

• Feed & Fodder: (Green fodder, dry straw, concentrates) @ ₹250/animal/day = ₹75,000.
• Labor: 1 worker = ₹15,000.
• Vet & Misc (electricity, water): ₹10,000.
• Total Monthly Expense: ~₹1,00,000.

3. Revenue Generation (Monthly)

• Milk Yield: Assume 8 animals in milk yielding an average of 12 liters/day = 96 liters/day.
• Milk Rate: Assuming direct consumer sale at high-fat premium: ₹70/liter.
• Gross Monthly Milk Revenue: ₹2,01,600.
• Manure Sales: ₹5,000.
• Total Monthly Revenue: ~₹2,06,600.

4. Profit Margin

• Net Monthly Operating Profit: ₹1,06,600.

While these numbers look attractive, dairy farming requires 365-day dedication. The true scaling profit lies in selling female calves once they mature and adding value-added products like Ghee or Paneer.