Dairy business trends and opportunities

Food industry Dairy products

Today, an entrepreneur who decides to engage in dairy farming, has the opportunity to build a standard farm for 2 thousand heads of dairy cattle, while renting the necessary and mandatory areas for accompanying dairy cattle breeding - growing fodder crops.

Build new or repair old?

We said above that any entrepreneur has the opportunity to “build” a farm ... However, in this case, the word “build” should not be understood as a literal guide to action. The fact is that almost all experts and market players unanimously advise: it’s better to buy back the old farm (even if it is in very poor condition!) Than to create a new livestock complex from the foundation - from the foundation.

Why?

It's all about paperwork associated with obtaining the necessary permits. If the construction will be carried out from scratch, obtaining documents will take two (!) Years. If you restrict yourself to reconstruction of the old “barn”, you will receive the necessary package of documents within two months!

By the way, it is not necessary to immediately think of a farm of 2 thousand heads - a farm of only 300 or 500 livestock may already be profitable.

However ... The specificity of the modern barn’s structure is such that “three hundred” and a thousand cows “walk”, nevertheless, the same number of workers. Now calculate how much money you will save and earn if you load one worker, say, not with five cows, but with fifteen. This fair calculation is called “payroll savings”.

And yet...

There is still a peculiar risk of building mega-complexes ... (True, the mega-complex is already 2-3 thousand heads of cattle).

Hurrying to adopt the experience of the West (where all dairy cattle breeding is based on precisely such mega-complexes), we forget about the Russian realities ...

But these realities are such that we do not need strict veterinary control - both the animals themselves and the food received from them ...

By importing animals and feed for them according to the “gray” schemes (while we simply have almost no others), the entrepreneur is at risk ... And if with a small number of herds some internal control is possible (and the damage resulting from the error will not amount to millions ), then with the number of goals in the herd - three thousand, the entrepreneur runs the risk of completely going broke.

Dairy cows: domestic or imported?

All over the world, milk-making entrepreneurs prefer to use for this purpose a cow of the so-called Holstein breed, which produces a record amount of milk - from 10 to 12 thousand liters per year. However, there are pitfalls too ...

Like any breeding, thoroughbred animal, the Holstein dairy cow is very whimsical and requires not only the constant presence of a qualified veterinarian, but frankly, completely different conditions of detention than those that we are able to offer her today.

And besides, the “service life” of such a cow (the term of its “productive use”) is very small - on average, it is 2.5 years. Whereas a less thoroughbred, domestic burenka remains productive, that is, it perfectly milks and twice as long - as much as four years!

How do entrepreneurs solve this issue?

A place to buy “foreigners” and try to create conditions for them (which is unrealistic and can lead to cattle mortality, and, therefore, to ruin), entrepreneurs go the other way. They prefer:

a) import gene material (namely: sperm) from thoroughbred bulls of the corresponding breeds,

b) by which (genetic material) they fertilize local “hardened” cows belonging to local residents living in private courtyards.

c) then to buy from this local population already grown calves that have in their veins an admixture of "noble" blood and a tendency to large milkings ...

Farm staff

According to all the players in this market, the most difficult thing today is to find not even investors and investments, namely, personnel! The young responsible specialist for working on the farm is now worth its weight in gold. And the thing is that dairy cattle breeding (despite direct international programs aimed at its development) is now in decline even in the European Union, not to mention Russia. However, there is an opportunity to train a specialist abroad, players also call the average amount that will have to be paid for training one specialist - 5 thousand euros.

Nazarenko Elena

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