Family farm business plan. Business plan for the development of a livestock farm Business plan for a family livestock farm

The policy of import substitution creates favorable conditions for the development of farms. In addition, there are government support programs for young farmers. To receive such assistance, it is necessary to draw up a business plan for a farm with an analysis of this project.

[Hide]

Services

In order to determine the services provided, you need to analyze the demand for a particular type of activity at the location of the farm. This will ensure higher demand for manufactured goods and a low level of competition. The choice also depends on the amount of land at the disposal of the entrepreneur and the possibility of placing buildings on the site. Large-scale projects are more profitable, but it is better to start small, gradually increasing production potential.

The most profitable services provided by farming:

• sale of vegetables and fruits;
• sale of agricultural crops;
• sale of meat;
• milk sales;
• sale of eggs;
• sale of cheese.

Additional services include the sale of:

• skins;
• wool;
• down and feathers;
• manure;
• young animals

You can consider the following types of services provided:

• farm tour;
• processing of production products;
• cafe with farm products.

Relevance

The relevance of agricultural development in Russia is as follows:

• the demand for environmentally friendly products is constantly growing;
• governmental support;
• improvement of the legislative framework;
• farming is a highly profitable business.

Activities

The farm carries out the following types of activities according to OKVED:

• 01.1 Growing annual crops;
• 01.2 Growing perennial crops;
• 01.45 Sheep and goat breeding;
• 01.46 Pig breeding;
• 01.47 Breeding poultry.

In practice, it is more efficient to form household farms in the form of mixed subsidiary farming. Maintaining mixed farming will allow you to expand the range of final products and minimize the risks of seasonality, which will also increase your potential profit.

Poultry farming

Poultry farming requires much less time and money than other types of livestock farming. When implementing this area of ​​activity, it will be possible to use fewer workers.

Eggs and chicken are those products that are always in the refrigerator of any of our compatriots. In addition, breeding birds does not require too large areas.

Birds for rearing:

• laying hens;
• broiler chickens;
• geese;
• ducks;
• quail;
• guinea fowl;
• turkeys

To open a small poultry farm you will need a room of about 400 square meters. m. It should be adjacent to an area for walking birds (at least 200 sq. m.).

The Ministry of Agriculture standards state that walking areas must have fences (in relation to the height and size of the birds) and drains. It is recommended to walk birds of different species separately, so you will need to make additional partitions inside the pasture.

Poultry house requirements:

1. It is best to make a poultry farm from wood or brick.
2. The floor should be covered with a thick layer of sawdust.
3. The premises should be divided into areas where, like in a pasture, different types of birds will be found.
4. Each area of ​​the poultry farm should have a separate feeder and drinker.
5. According to the norms, three adults or 10 chicks should live on one square meter. The calculation is given for chickens. Geese need 1 sq. m. for each adult, turkeys - twice as much as chickens.
6. The room should be well ventilated, but at the same time be heated to a temperature not lower than +25 degrees.

Learn more about what you need to start a farming business in poultry farming from the channel “Main farming portal FARMER. RU".

Pig farming

Perhaps the most profitable idea for entrepreneurs who decide to make money in the meat business would be a pig farm. If you have 2–5 million rubles, you can open a modern high-tech farm with a livestock of 100 pigs. In this case, all necessary components will be included in the diet. The demand for pork in our country is higher than for other types of meat due to its lower price.

To raise pigs you will need a warm and ventilated pigsty. For a small number of heads, you can assemble a room from available materials: boards, chopped wood. But do not forget that pigs are curious animals, so when they grow up, they will dig tunnels and easily break walls. A permanent pigsty is located on a strip foundation made of brick or gas blocks.

During construction, the following standards are taken into account:

• the height of the walls at the doorways is 2-2.3 m;
• height in stalls – at least 1.3 m;
• for one adult sow – 3–4 sq. m;
• per boar – 4–5 sq. m.

Young animals can be kept together in one pen. When they reach 6 months, the piglets are divided into 2–3 heads in one pen. Adult animals are seated because they are cocky and can injure each other. That is, for 10 adult individuals you need to prepare a pigsty with an area of ​​at least 40 square meters. m. The price of construction and insulation of walls depends on the region.

The pigsty should be divided by wooden partitions. The light is not very bright, since excess lighting makes the animals aggressive. Window openings - no more than 13% of the total wall area. Places are equipped with drinking bowls and feeders. For the first time, you can make drinking bowls and feeders with your own hands. A separate walking area is being built. It is equipped with a roof and fenced with a wooden fence.

The channel “Rabbits Rule!” will talk about the organization.

Sheep breeding

Developing a business related to sheep farming has certain advantages. They consist not only of a stable income, but also of constant demand for farm products. At the same time, the products include not only meat, but also wool, as well as sheep’s cheese.

Another advantage is that any room is suitable for keeping animals; you can build it yourself. The sheepfold needs less constant cleaning (this is the advantage of ungulates over birds or, say, rabbits). But in order for your livestock to winter well, it is important to insulate the sheepfold. It is necessary to purchase space for sheep walking taking into account the further increase in the number of animals (an average of 20 sheep per hectare).

Requirements for the sheepfold:

1. Floors that are too soft can lead to foot problems in animals. The optimal covering is a layer of earth + a thin layer of straw.
2. Drafts must be avoided, so there should be no gaps in the room. The air temperature in the sheepfold in winter should not be below minus 12–15 degrees.
3. It is better to avoid bumps in the path of the sheep to avoid broken legs.
4. In the premises where sheep are kept, drinking bowls must be designed for a volume of at least 10 liters per head.

The cost of one breeding sheep of the common Romanov breed starts at 5 thousand rubles. The cost of a stud ram can be double or even triple that. On average, one ram covers up to 40–50 sheep, but practice shows that it is better to provide two flocks of 20 sheep each than one of 40.

Channel “Almasbek. “Or Kazak bai bolsyn.” provides information about sheep farming.

Agricultural crops

The process of cultivating and growing grain crops is closely related to animal husbandry. After all, the final product of this industry, along with its use in the food industry, serves as feed for animals and birds. Cereals are the main ingredients of any feed. In addition, plant products are actively used in pharmaceuticals, textiles and perfumery.

When planning a business, first of all, you need to decide on the specific grain crop that is supposed to be grown:

• wheat;
• corn;
• oats;
• sunflower;
• buckwheat;
• barley, etc.

Depending on the selected agricultural crop, a technological process is planned, including:

• features of soil cultivation;
• methods of sowing seeds;
• timing and technology of harvesting;
• types of fertilizers used;
• ways to protect plants from harmful insects and diseases.

The “Technical” channel was filmed on how to minimize drought when growing crops.

Growing vegetables and fruits

In addition to cereals and grain crops, entrepreneurs may be interested in floriculture, growing vegetables and berries. These areas have great prospects, and seasonality factors can be reduced through the construction of greenhouses and greenhouses. Such a business will be especially profitable in winter, when the price of fresh vegetables increases significantly.

Gardening and viticulture is a fairly promising and profitable type of business. Unlike other areas, investments in such projects pay off for quite a long time. A period of 3 years is required depending on the type of trees chosen. However, over time, you get a stable business with negligible costs to maintain it. It is necessary to choose ways to protect the crop from the unwanted effects of insects and crop diseases.

It should be remembered that automation of the growing process has a positive effect on farm productivity, thereby increasing the profitability of the business.

Fruits and berries to grow:

• apples;
• pears;
• strawberry;
• cherry;
• cherries;
• watermelons;
• apricots;
• plums;
• melons

Vegetables to grow:

• cucumbers;
• tomatoes;
• potato;
• carrot;
• beet;
• pepper;
• eggplants.

Greens to grow:

• parsley;
• dill;
• garlic.

Requirements for greenhouses:

• light transmission - frame elements should not be too wide;
• the soil under the greenhouse must be stable at any time of the year;
• It is not recommended to install greenhouses in areas that are flooded in the spring.

The linvideo zp channel will talk about growing vegetables on an industrial scale.

Market description and analysis

Organizing a business should begin by assessing the business idea according to the following criteria:

• characterize the target audience;
• determine the competitiveness of your project;
• analyze the share and dynamics of the selected market segment.

The characteristics of farms in Russia are as follows:

1. There is an increased demand among the population for agricultural products, which currently exceeds supply.
2. Import substitution policies minimize competition from foreign suppliers.
3. The volume of farm products produced by local farms is very low.
4. Over the past ten years, Russian farms have significantly lost their position in the market.
5. The introduction of sanctions led to the formation of unfilled niches and an increase in the range of unmet needs of the population.
6. High profitability determines the attractiveness of this business for small and medium-sized entrepreneurs.
7. The main difficulty for the successful functioning of domestic farmers is the sale of their products to intermediaries at low prices and the lack of independent access to the market.

The target audience

The target audience of farms is divided into two segments:

1. B2B - purchase of products by legal entities for the purpose of further processing or resale. The most active buyers are regional and federal retail chains.
2. B2C - purchase of products directly by the consumer. These are mainly working people aged 25–45 years.

Competitive advantages

The main competitive advantages of farming:

• flexible pricing policy;
• environmental friendliness of products;
• quality of agricultural products;
• efficiency of delivery;
• branded packaging.

Advertising campaign

1. Logo and corporate identity development from scratch.
2. Naming (name of the farm).
3. Slogan development.
4. Designation and formation of philosophy and mission.

Minifarms are a business where the main means of informing potential customers is recommendations from regular customers. Therefore, it is especially important to monitor product quality. You can place advertisements in stores, markets and other crowded places.

Other channels for product promotion:

• local media;
• creation of a website on the Internet;
• social network;
• distribution of booklets with products to restaurants and cafes;
• billboards, banners.

Sales channels

Possible product sales channels:

1. Participation in exhibitions and thematic events. Typically, only interested buyers gather at such events, so a competent presentation of your goods will help you get profitable contracts with buyers.
2. Participation in state, regional and commercial tenders. A somewhat expensive option. The winner of the tender is determined on a competitive basis. However, this is one of the best options for finding a reliable and profitable buyer for large volumes of goods.
3. Sales on wholesale markets. An option to arrange supplies to supermarkets, hypermarkets, and other stores. Cooperation with them will ensure long-term, constant and profitable sales of products.
4. Registration on the electronic marketing platform for agricultural products. For example, at the state one - Rosagrotorg. Russian Federation or regional - Saratovagro.
5. Selling through online platforms is convenient, inexpensive and fast. Buyers can always find the nearest supplier.
6. Membership in a marketing agricultural consumer cooperative. A kind of association of farmers that allows them to jointly sell produced goods.

Governmental support

In Russia, the “State Program for the Development of Agriculture and Regulation of Markets for Agricultural Products, Raw Materials and Food for 2013–2020” is applied.

In order to support beginning agricultural producers, the following activities are carried out:

• provision of subsidies;
• distribution of grants for various purposes;
• holding competitions;
• conducting consultations.

To participate in the program, you must have the status of a beginning farmer, and the farm must meet the parameters of a microenterprise. A beginning farmer is a citizen of the Russian Federation of working age who has an agricultural education or has at least 3 years of experience in agriculture. He is the head of a peasant farm and a registered individual entrepreneur.

Basic parameters of a starting peasant farm:

• the share attributable to a legal entity that is not a small and medium-sized enterprise does not exceed 25 percent;
• the average number of employees is no more than 100 people for small enterprises and 15 people for micro-enterprises;
• revenue excluding taxes should not exceed the maximum values ​​that are established annually.

Additional conditions for participation in the program:

• The peasant farm was registered no more than three years ago;
• commercial products are sold for at least 30 thousand rubles. in a year;
• the head of the peasant farm is a citizen of the Russian Federation who has lived in rural areas for at least a year;
• A peasant farm can participate in each of the Program activities only once.

The video shows step by step how to obtain land for farming. Filmed by the channel Mikhalev Sergey - business coach.

Step-by-step opening instructions

After identifying the target audience and analyzing the market, the following steps should be taken:

1. Draw up a detailed business plan for a farm or purchase a ready-made sample.
2. Prepare documents for opening a mini-farm.
3. Find a suitable location for the enterprise.
4. Purchase equipment and inventory.
5. Determine the need to hire personnel.
6. Purchase animals, seedlings.
7. Start your own bissnes.

Documentation

A peasant farm (peasant farm) is a form of business ownership associated with agricultural activities. A peasant farm can be opened by one person or a group of people connected by joint farming or family ties. The number of participants is limited to five citizens.

A peasant farm is not a legal entity, and its head is recognized as an entrepreneur in accordance with the law. To carry out this type of activity you must be a legally competent adult. In this case, the citizenship of the entrepreneur does not matter. Registration is carried out simply by contacting the tax authorities at the place of residence of the manager.

To register a mini farm with the tax service, you will need the following documents:

• application for registration of a peasant farm;
• receipt of payment of state duty;
• entrepreneur's passport (original and copy);
• a document indicating the place of residence of the entrepreneur;
• agreement to create a farm (for several persons).

The registration procedure will take no more than five working days from the date of submission of the package of documents. The registration authority will submit the following documents:

• certificate of state registration;
• a document confirming registration with the tax office;
• extract from the Unified State Register of Individual Entrepreneurs.

An entrepreneur can also receive an information letter from the State Statistics Committee.

It is recommended that when submitting documents for registration, you follow the procedure for switching to the Unified Agricultural Tax regime. The unified agricultural tax is calculated taking into account VAT, income and property taxes. This is the most suitable option for the farmer, since he will have to pay no more than 6% of the profit received. Payment is made once every six months, and reporting is submitted once a year.

Equipment and inventory

The choice of equipment depends on the type of farm.

Equipment and supplies for sheep breeding (flock of 100 heads):

Poultry breeding equipment:

Equipment for greenhouses:

Pig breeding equipment:

Photo gallery

Chick brooder Heat and pregnancy detector Incubator Feather plucking machine Hoof shears Lamb castration tongs Greenhouse 200 sq. m Grain crusher

Staff

Depending on the size of the farm, it may require hired workers. In addition, the peasant farm must have a veterinarian/agronomist on its staff (this is determined by the activity profile) and an accountant. They may be family members or invited part-time professionals.

Financial plan

Whatever direction of home farming a businessman chooses, he will still need initial capital. can be opened by carefully planning the size of the investment and forecasting income.

Features of the financial plan:

• a pig farm opens;
• number of goals - 200–250;
• form of ownership - peasant farm with unified agricultural tax (tax is 6% on net profit).

How much does it cost to open?

Costings.

Regular expenses

Fixed farm expenses.

Income

Activities that bring in the most income on the farm.

Calendar plan

Schedule planning for opening a mini-farm.

Stage	1 month	2 months	3 months	4 months	5 months	6 months	7 months	8 months
Market analysis	+	+
Preparation of a business plan		+
Preparation of a package of documents			+
Acquisition and registration of land			+
Construction of premises for keeping animals				+
Greenhouse installation				+
Summing up communications					+
Purchase of agricultural machinery						+
Purchasing and completing inventory						+
Creation of feed reserves						+
Purchase of young animals and seedlings, seeds							+
Recruitment							+
Opening								+

Risks and payback

When choosing agriculture as the basis for entrepreneurial activity, it is worth considering all the risks:

1. Crop production can be hindered by insects, natural conditions and disasters. Not in all cases, their consequences can be quickly eliminated without causing significant losses. This risk can be minimized if you regularly consult with an experienced agronomist and independently gain knowledge on growing plants.
2. When choosing livestock farming, it is worth considering the likelihood of diseases that can affect the entire livestock and require its complete destruction. A veterinarian will help here, who should be regularly invited for preventive examination of the livestock.
3. Power and water interruptions. The risk is quite high. To neutralize it, it is worth taking care of the availability of backup sources of electricity and water supply.
4. Poor quality seedlings, young growth. You can minimize the risk by carefully choosing suppliers and breeders.
5. Rising feed prices. You cannot skimp on the quality of animal nutrition. This risk can be neutralized by developing your own feed production (growing crops and vegetables).
6. Difficulties with selling products. It is necessary to establish distribution channels in advance.

Many branches of agriculture do not require significant expenses, and their payback occurs within a year.

In these difficult times, Russians often think about how to feed their family. Livestock family farms bring profit or provide a living wage, helping out in difficult life situations. As a rule, members of the same family work there. But if the family farm is developing, then the work of hired workers will also be useful.

What do you need first?

The state provides the right to engage in this type of agricultural business. But before you start work, you need to collect the necessary documents: there are a lot of them and they depend on the direction of the family farm. You need to clearly imagine what types of animals will live in them. The plot that will need to be purchased or leased depends on this. Growing your own feed will be a good bonus, because it is more profitable than buying food for livestock elsewhere. For this you will also need a plot of land. But in any case, you will need to obtain a certificate and undergo training in a special institution. Running a family farm business is not easy. It is necessary to take into account all the features of farming and animal husbandry, and for this, constantly learn and gain the necessary experience.

How to start a family farm?

First, the future farmer obtains permission from the state to build structures on the plot of land on which he plans to conduct his business. This is very important, because if buildings are banned, there will be nowhere to keep animals, especially in the winter season. In addition, family farms must obtain permission to operate from the sanitary epidemiological service, labor inspectorate, and fire department.

A beginning farmer must remember that in such a responsible matter he will need the following specialists: an agronomist, a livestock specialist, and a financier. Therefore, if his family members do not have sufficient qualifications, it is better to hire a third-party worker. This means additional wage costs. In order to fully anticipate and calculate the costs facing family farms, projects that are drawn up in advance are a prerequisite for starting work. Otherwise, it may turn out that an expense item suddenly appears that was not planned. As a result, the task of organizing a family business may suffer or even become impossible.

Initial capital

Of course, funds will be required to build farms. Family farms are expensive. The amount of money invested depends on how large the future organization will be. But the state is accommodating to small businesses and provides grants in the amount of 60% of the planned costs, but not more than 10 million rubles, if the future farmer has 40% of the required amount to organize a business.

Many people refuse to apply for a grant, despite the fact that the conditions for this are not very difficult. The main thing is that the members of the family organizing their own business are citizens of the Russian Federation and live in the territory where the business is registered. In addition, the farm must actually exist for at least a year at the time of application. The grant is issued only once. After this, farmers are not eligible to receive other financial assistance from the government. This is why preliminary calculations are so important. They will also come in handy if the owners decide to take out a loan. This is possible, but only in the amount of 10% of the farmer’s available funds.

What to consider when calculating costs?

Family farms need heating, electricity and water. This is necessary in order to organize comfortable accommodation for the animals, including food and cleaning of the premises. You need to take care of how much feed and bedding, such as straw or sawdust, is needed. It is necessary to analyze how much natural waste will be obtained from animals, how to ensure its disposal, and what additional materials may be needed during the year. It is also important to take into account force majeure circumstances. For example, animals may die or suddenly cease to be the source of production for which family farms were organized.

Unforeseen situation

There are a lot of them. For example, a disease or death of livestock, in which meat and milk become unsuitable for use, as they can cause irreparable harm to human health. But production of products in normal mode is also subject to preliminary calculations. This is necessary in order to know whether the family will be provided with these products in sufficient quantities, and whether there will be a surplus that can be sold for profit. Not all types of animal care work can be done manually. Sometimes you have to resort to the help of technology. The purchase or hiring of it must also be taken into account when drawing up a business plan for a livestock farm. Employees must receive a salary, so it must be included in costs.

Your milk

Nowadays, family farms are becoming an increasingly popular type of business. This is happening in the wake of import substitution. The country needs its own natural livestock products. Establishing a dairy farm could be a profitable project. The main thing is not to skimp on the construction of barns organized in accordance with modern technologies. Dirty, uncleaned camps with an unpleasant smell and equally unkempt cows have long since become a thing of the past. Now the cows live in clean, comfortable premises equipped with the latest technology.

This kind of business has room to develop. The owner can move from producing milk to producing cheese, sour cream, butter and cottage cheese. And there will definitely be buyers for fresh and environmentally friendly products. Farm products are now in great demand, especially in large cities. Therefore, they are expensive and bring significant profits to their manufacturer. But such a project will require considerable investments.

If funds are not enough...

But even those who do not have enough money to carry out large projects can open their own livestock farm. To do this, you can use a plot of land from your house or cottage. In order to make money by selling meat or eggs, you can have just a few animals. For example, in order to sell eggs, you need to have several chickens that will lay eggs regularly, and build a small, comfortable chicken coop in which the birds will live. In the summer, birds should be outside in a special enclosure. You need to know that in winter their egg production decreases. But over time, developing your business and investing in equipment, you can build modern chicken coops that maintain a special microclimate so that the birds lay evenly throughout the year.

Will there be income?

On average, one chicken per week can produce 6 eggs. On the market you can get 60 rubles for them, if you first have a veterinary permit for trade. It is easy to calculate: if there are 10 chickens, then they will produce 60 eggs per week and so on. That is, it is necessary to outline how much product the family will need and how much can be sold. In order for the profit to be clear, it is necessary to subtract the cost of keeping the birds from the amount from the sale of eggs. Then it will become clear whether the family will be able to develop such a business or will keep chickens only for their own consumption of eggs. If the decision is made to continue this business, then over time it will be possible to expand the poultry houses, purchase more young stock and open your own farm producing not only eggs, but also chicken meat.

Farms can be of any size. Sometimes they grow from small rural businesses into large organizations with huge profits. The interesting thing is that there is always room to move in this direction. Meat production may well be supplemented by the production of sausages and frankfurters. It doesn't matter how the family business started. In order to earn start-up capital for opening a livestock farm, any method is suitable. And let it be breeding and selling hamsters at home. The main thing is that perseverance and focus on results made it possible to fulfill the desire of the future farmer and develop his own business.

In recent years, many farmers have abandoned livestock farming in favor of crop farming. We will try to prove that a business plan for cattle breeding is a very profitable activity.

The fact is that currently there is state support for domestic producers. One of the points of such a program is financial assistance to entrepreneurs who are engaged in the restoration of abandoned livestock farms. It is not surprising that beef cattle farming as a business will experience a new wave of popularity.

Choosing pastures for business

Before you take your first steps in cattle breeding, you need to make sure that there is a sufficient amount of pasture land in your region, since they will be used as natural feeding grounds for cows. If arable land predominates, it is extremely unprofitable to engage in such a business.

If there is enough pasture land, this means that cows will eat for free almost all year round. In the absence of such an opportunity, you will have to purchase feed, but then livestock farming will turn into a golden business, and all your income will be “eaten up” by expenses.

But arable land will also be useful. They will be used to grow food for the winter.

What is the area of ​​pasture land for raising cows? One cow and one calf will require 1-1.5 hectares of pasture and the same amount of arable land. Thus, to maintain 100 cows plus 100 calves and three bulls, at least 300 hectares of land will be required in the ratio of 150 hectares of pasture and 150 hectares of arable land.

Meat and dairy cattle breeding

Cows can be raised in two ways:

• Dairy
• Beef cattle breeding.

Beef farming means raising cows to produce beef. These breeds of cows are not used for milking. They are kept for the birth of young animals, which are subsequently fattened and at the age of 1-1.5 years are sent for slaughter. This option is advantageous because the calves feed on their mother’s milk for the first six months, and the farmer’s costs are almost zero.

Dairy farming has certain advantages. So, in addition to obtaining milk, it is also possible to obtain beef.
Selling meat, like milk, is a profitable business

After choosing a direction comes the turn of organizational issues. To carry out such activities, it is necessary to register the enterprise. Business in rural areas in this case has its own specifics. The most popular organizational forms are peasant farms and private household plots.

peasant farm – peasant farm – is an association of farmers carrying out joint agricultural activities and owning common property.

Private household plots – personal subsidiary farming is a simpler option. In this case, there is no need to even register with the tax office. The farm is run as a family farm. But there are also requirements for such activities. More details can be found in our.

Farm arrangement

Keeping 100 cows and calves with three bulls will require 2 premises, each measuring 70x20 meters with a walking area. Such a farm does not need heating in winter. But it is extremely important to maintain the humidity level - the room must be dry and draft-free.

Is automatic feed needed? If you plan to breed no more than 100 cows, then for such a small herd it is enough to feed manually. For 300 or more heads, mechanized feeding is carried out.

In general, catering is a serious issue for such a business. Feeding varies at different times of the year. In summer, the main part of the diet is fresh grass. In winter, cows eat pre-prepared hay, vegetables (potatoes, carrots, beets), silage, and mixed feed.

Annual feed consumption per cow:

• Green mass – 10 tons
• Hay – 2 tons
• Straw – 1 ton
• Silo – 4 tons
• Root crops – 2.5 tons.

It is also very important to give cows 100 grams of salt per day to maintain normal acid-salt balance.

If all of the above has to be purchased, then 41 thousand rubles will be spent per year per cow. Therefore, it is very important that the farmer has a large plot of land that can be used as pasture and also for making hay.

Costs of starting a farm

It is better to start such a business by purchasing a small number of cows. As your business develops, you can always buy more cattle. At first, 10 cows are enough, a little later - another 10. As soon as a stable income appears, you can increase the number of animals.

The peasant farm business plan includes the following costs:

• Construction or repair of a farm - about 200 thousand rubles
• Buying 7 cows – about 300 thousand rubles
• Buying 3 head bulls – approximately 200 thousand rubles
• Registration of activities – 15-20 thousand.

Thus, it will take from 600 thousand to 1 million rubles to open a business.

How much can you earn?

The first mating of cows is carried out at the age of 1.5 years, and the gestation of calves lasts 285 days, then you should not rely on a quick return on business.

You will begin to receive real income only by the end of the first or even second year of operation of the farm.

One cow gives birth to 1 calf per year. Lactation lasts approximately 300 days. Therefore, in the first 2-3 months after calving, half of the milk will be used to fatten the calf.

1 cow produces 10 liters of milk per day. During the first three months of lactation, approximately 5 liters per day can be sold per cow. From 4 cows – 20 liters.

At the end of lactation, all 10 liters per day per cow will be used for sale.

The average cost of 1 liter of milk is approximately 60 rubles. Consequently, during the lactation period, one animal can earn 27 thousand rubles in 3 months. Multiply by the number of cows to get your total revenue. And this is only when selling milk. If you additionally engage in the production of sour cream, cottage cheese, butter and cream, your income will increase.

Calves can also be sold as young animals or fattened and slaughtered with subsequent sale of meat. Raising calves for meat will take about a year of fattening.

The average weight of a dairy cow at the age of 1 year is 300 kg, and a bull’s weight is up to 400 kg. At slaughter, the yield of beef is 50%. The cost of 1 kg of meat is 300 rubles. Thus, the proceeds from the sale of meat will be 45-60 thousand rubles.

Taking into account the low entry costs and government support, as well as the variety of earnings on a cattle farm (selling milk, young animals, meat), it is obvious that the cattle breeding business is a very profitable activity.

Leave your comments below if you would like to add anything to the article or ask a question.

Demand for raw milk in Russia exceeds supply. The profitability of production in the southern regions of the country reaches 37% 3–5 years after the start of the farm operation and repayment of loans.

 

For a long time, milk production in Russia was considered profitable only for large agricultural complexes. The constant shortage of raw materials has forced processors to pay attention to small producers, moreover, they offer goods at competitive prices and of higher quality. The dairy farm as a business for small entrepreneurs and peasant farms has become especially attractive after the introduction of state support.

To assess the prospects of investing effort and money in this labor-intensive and difficult production, let’s consider:

1. product demand, market trends;
2. Feasibility study for opening a dairy farm;
3. manufacturer support programs;
4. examples of successfully operating peasant farms.

Brief overview: how much milk do you need and where to get it

Milk is included in the list of the National Food Security Doctrine and is a strategically important product. Its consumption in 2015 was 230 kg per person, which is 2 times less than the recommended norm. According to the Russian Food Market magazine, its sales in 2015 increased by 7%, and in general, dairy products are increasing every year by 2.5%, despite prices.

Almost the only importer today is Belarus, and the total share of imports last year was about 16%. According to Soyuzmoloko, processing production capacities are only 60-70% loaded.

Economists always compare current indicators with the “pre-perestroika” level of 1990. By comparison, milk consumption fell steadily until 2000, when it reached an all-time high: just 51% of the volume consumed per capita in 1990. After that, the trend changed and there is constant growth. If there is enough milk in stores, then the same cannot be said about other products derived from it. Already in 2011, domestic cheese production was 65% of the base year 1990 level, and butter production was only 26%.

The bulk of milk for processing is produced by agricultural organizations. Households receive approximately the same amount of it, where it is consumed, and a small part is sold on the market. The share of peasant farms and small farms is only about 7%, but it is steadily increasing from year to year. In 2015, farmers overtook agricultural enterprises in all indicators: increase in the herd, its productivity, and marketability of products (Fig. 1). The average number of cows is 40 in peasant farms, and about 300 in organizations.

Milk production is very uneven across regions (Fig. 2). The leaders are Tatarstan, Bashkortostan, Altai and Krasnodar territories, Rostov region. In total, 15 regions of the country provide 50% of production. In 2015, 91.5% of the planned volume in the country was produced, while the deficit is about 30%.

The distribution of commercial milk is very different from the general picture; for example, in the Siberian District it is only half the volume. The distribution of government subsidies depends on this indicator. Who received the most government money in 2015 can be seen from the diagram - these regions are more likely to receive real support (Fig. 3).

How much does a dairy farm cost: financial and economic justification

When organizing a farm, you need to focus on modern technologies for keeping and feeding livestock, and new means of mechanization. Good profitability is shown by farms that use high-quality roughage and succulent feed, robotic installations that provide milk yield accounting, automatic filtration, and cooling. Such devices are equipped with a washing and disinfection system, which allows you to obtain high-quality milk. Here are two investment calculations. They were compiled for completely different regions of the country, however, the main indicators are very similar.

Table 1. Vologda region. Korobov family farm, 6 people. Share land plot of 100 hectares, own production of hay, haylage and silage.

	Basic expenses, rub.		Source of funds, rub.
Purchasing cows	3,000,000 (50 heads)	Loan funds (Rosselkhozbank, 13% for 3 years)
Purchase of milking equipment, mechanization equipment		Subsidy under the Vologda region program
Construction of premises		Own contribution
Sales of products	Delivery to processing plant
Loan repayment	2,223,800 per year
Total profit
Profitability
Profit after taxes

Table 2. Krasnoyarsk Territory, Republic of Khakassia. Peasant farm Malykhina, 3 people, 100 hectares of land.

Indicators	Expenses, rub.		Attachment source
Purchase of livestock	1,600,000 (30 heads)	Grant from the Ministry of Agriculture of the Republic
Buying a truck for transporting feed		Loan from Rosselkhozbank (14% per annum)
Construction of a barn using a self-sustaining method		Your funds
Sales areas	Retail trade: markets, individuals
Planned revenue per year
Net profit
Payback period and profitability	48 months

The level of investment in dairy production is high, so a well-thought-out business plan is needed. It is required both to receive subsidies and preferential loans. The advantages of small farms are that they produce environmentally friendly products, ensuring relatively low costs due to labor efficiency. Profitability increases many times if the entrepreneur himself is engaged in milk processing.

Support and lending to milk producers

1. Programs of the Ministry of Agriculture.

The main types of assistance are provided under the state subprogram “Development of Dairy Animal Husbandry”.

• Subsidy per liter of commercial milk sold. Provided to all producers; since 2015, only the highest grade is subsidized. It is determined by the processor. Regional authorities can introduce their own conditions: the number of offspring of calves, the percentage of fat and others. To receive a subsidy, you need to apply to the local administration department in charge of agrarian issues.
• Subsidizing interest on loans. Support is provided through accredited banks. The state repays part of the interest in the amount of 100% of the refinancing rate, regional authorities up to 3% of the borrowed amount. Due to this, banks reduce interest rates for agricultural producers, and the loan is cheaper.
• Reimbursement of part of expenses for business projects. The application is submitted through the administration of the district or region. Provides for the return of funds for new investment projects, expenses for modernization and re-equipment - up to 40%, for the purchase of highly productive dairy cattle breeds - up to 50%. Money is transferred to the producer’s account no earlier than 2 years after the start of the project, provided that it reaches its designed capacity. When purchasing animals - no earlier than the 5th year.

Three examples of successful work of dairy farms

In 2002, he organized his own farm, took out a loan from Rosselkhozbank, registered a peasant farm in 2012 and received a development grant. Now he keeps 70 cows, cultivates 150 hectares of land, and delivers 150 tons of commercial milk per year for processing. In comparison with a large farm located in the neighborhood, the cost of milk is several times lower due to complete autonomy (own feed) and labor efficiency (2 people).

Alexander is only 25 years old. He created his own farm in 2012. The farm has 38 dairy cows and 100 hectares of land for rent. Milk is sold fresh through its own retail outlets in the markets of the city of Abakan. He receives 300 liters per month from one cow, and 3,900 in revenue. He dreams of changing the herd, buying a Simmental breed of cows, and dramatically increasing milk yield. He believes that without its own food supply, milk production will be unprofitable.

Established in 1992, in 2004 there were 50 heads of cattle, now there are 122 cows on the farm. In 2006, the farm was reconstructed, German milking machines and a mini-milk processing plant were purchased. They produce 10 tons of milk per day, package it on their own equipment, supply it to stores in their city and Yekaterinburg, and supply catering plants, schools, and kindergartens.

conclusions

There is a demand for milk, it is growing and exceeds supply. Especially considering the policy to increase the production of its cheeses and butter. Accordingly, a dairy farm as a business looks like a profitable business in the long term.

The risks are also high: crop failure leading to a shortage of feed, rising prices for seeds and breeding animals, seasonality of milk production, delays in the payment of subsidies - these must be taken into account when planning.

Contents of the livestock business plan:

1. Livestock Project Summary.
2. Analysis of the main livestock sectors.
3. Project for the construction/reconstruction of a livestock farm.
4. Farm operation marketing plan and income plan.
5. Plan for current and fixed costs.
6. Calculation of final values, assessment of project performance indicators.
7. Assessing the risk factors of a livestock project.

Why do you need a livestock farming business plan?

1. In order to be able to receive government support for business development in the form of grants, subsidies and intangible assistance.
2. In order to obtain a bank loan on the most favorable terms for you.
3. In order to avoid mistakes typical of the livestock industry.
4. In order to keep your finger on the pulse of events during the implementation of the project.

Example of a livestock business plan

Select
suitable option

Standard	Advanced with financial calculations with Excel financial model	Advanced with adjustments
Standard business plan		Extended livestock business plan with full business analysis and financial plan for 5 years
		Detailed livestock financial model
	Break-even point calculation	Analysis of profit and profitability by individual business areas and products Analysis of risks and business safety margin by sales volume, cost and credit load Sales forecast quarterly for 5 years Quarterly cost forecast for 5 years Calculation of conditions for obtaining and repaying a loan Break-even point calculation Quarterly Cash Flow Report for 5 years Analysis of financial and investment indicators
		Adjustment of the business plan to your numbers by our analysts within 5 working days
Business plan volume: 30 pages.	Business plan volume: 80 pages.	Business plan volume: 80 pages.
10,000 rub.	20,000 rub.	39,000 rub.

This kit is ideal for those who need a business plan to obtain a loan or attract investment.

Description

The extended business plan includes a financial model of livestock farming in Excel format.

The business plan was developed taking into account the practice of evaluating projects in Russian banks, as well as taking into account the requirements of investors and funds for supporting entrepreneurship in the Russian Federation. It will make it possible to justify management decisions on investing in the creation and development of livestock farming, predict its financial results and assess risks.

A full description of the business plan can be downloaded from the link:

Content

To view the content, download the file:

Tables and graphs

To see the list of tables, graphs and diagrams, look at the file:

Payment and delivery

You can pay in the following ways:

• Bank cards (Russia)
• Electronic money
• Terminals and communication salons
• Money transfers
• Bank cards (International)

Submitting a business plan and financial model:

Dispatch is carried out within 24 hours after payment to your email address.

Business organization

Livestock farming is a priority direction for the development of domestic agriculture. At different levels of government there are various programs to support livestock farming, including reimbursement of part of the interest rate, support for breeding cattle for dairy and meat production, reimbursement of expenses for increasing the number of sheep, goats, deer, meat herd horses, etc. In order to count on this support, you should prepare a correct livestock business plan.

The livestock business plan for receiving a grant reflects the main stages of the project and financial calculations for each stage:

1. Determining the direction of work within livestock farming.
2. Design of construction/reconstruction of a livestock farm.
3. Construction of a farm.
4. Search for suppliers and buyers for the sale of livestock products.
5. Purchasing animals and preparing food supplies.
6. Recruitment of personnel for animal care.
7. Preparatory work.
8. Starting a business.

Before you start developing a livestock farming business plan for a peasant farm, you should decide in which specific direction you should work: cattle, pig farming, poultry farming, etc. Focus on the competitive environment in your region, opportunities to reach relevant suppliers and buyers of products. Of course, market capacity and demand for the product are of no small importance.

In the presented sample of a ready-made livestock business plan, the calculation is given using the example of a cattle farm.

Market analysis and livestock project description

Livestock farming is considered the most profitable and promising area of ​​agriculture on the Russian market. Meat production volumes have recently increased significantly and continue to grow. The business plan for the development of livestock farming provides a detailed analysis of the key characteristics of livestock farms in the Russian Federation, including volumes, growth and future trends.

Products produced

Meat, offal, milk.

Potential clients

Enterprises for the wholesale purchase of goods, including retail chains of various sizes, meat and meat products processing plants, small buyers: shops, hotel and restaurant complexes.

Below are calculations for a livestock farming business plan for receiving a peasant farm grant for 500 heads.

Financial part of the livestock business plan

Investments:

Attachments	Deadlines	Amount, thousand rubles
Paperwork and registration
Rent of land (during the construction or reconstruction of a livestock farm)
Design work
Construction or reconstruction of a livestock farm
Providing heating, water supply, sewerage, electricity, etc.
Purchase of equipment and equipment for a livestock farm, installation
Purchase of young stock (500 heads)
Obtaining permits
Food supply (for 3 months)
Other costs

The initial investment in the business will be about 70 million rubles.

Income:

The average revenue for the purchase of young stock in the amount of 500 heads will be 70 - 80 million rubles annually.

Expenses:

Annual expenses average 50 - 60 million rubles.

Profit, payback and profitability of the business:

The payback period of the project is about 3.5 years, the profit is more than 20 million rubles, and the profitability is 27%.

Conclusions:

Having decided to engage in livestock farming, you must clearly understand your plan of action, take into account the risks and features of the production process. Of course, you will need a competent business plan for dairy and beef farming. You can order a ready-made business plan or download a sample livestock business plan with calculations. Perhaps the best solution for you is a business plan template.

Download the Livestock Business Plan Template and you will be able to:

• Independently calculate indicators that will show how profitable your plan is, how quickly the project’s payback will be, the main income and expenses of the farm.
• The resulting individual business plan will allow you to adequately present your project to representatives of investors or creditors, as well as receive support from the state in the form of grants and subsidies.
• Professionally draw up an annual financial plan and monitor achievements of results.