Given the current situation and the near future, the time to come for the dairy business at a smaller level could be even more laborious.
These issues are
exacerbated for small and medium-sized dairy farmers. So, what should be done
to run this business profitably under these circumstances and in the future?
To commence with, food
is the most expensive item on the farm, and it has become extremely overpriced
in recent years. Concentrate, wheat bran, silage, mineral mixture, and
pharmaceutical prices have all increased, but milk prices have remained
unchanged. This means that if expenses are reduced in some way, the company can
turn a profit.
There is a solution to
this, and if you follow it, I am confident you will profit greatly from Allah's
grace. For working together brings Allah's blessings, so you should do it
first. Some dairy farmers form their own collectives and pool their resources
to purchase whatever they require. To illustrate, if you buy 10 tons of silage,
you will pay 10 rupees per kg, but if you buy 100 tons, you will pay 8 rupees
per kg. Similarly, the price of the rest of the items will fall. Because the
larger the order, the cheaper the rate you obtain, this cost will increase your
quantity.
In addition, whenever
you need to purchase a concentrate, wheat bran, silage, or anything else, try
to get all of the farmers to order it at the same time in order to get the best
price. There is no science in it, nor is there anything that no one
understands. The only problem is that all the farmers have to sit together in one
place. It's just a matter of buying it. As the Nestle Company has discovered,
if you want to sell milk, the higher the quantity, the higher the price. At
Sapphire Dairy, he used to buy cow's milk from us for Rs. 60 and from a small
farm for Rs. 45 approximately.
So starting today, try
to form a group of ten people in your area and, instead of buying one thing at
a time, buy together. Make a direct agreement with any company or dealer. When
ten people come together, the servant will also respect you and give you
something at a very low rate. I have seen that hundreds of farms are in one
place, but all purchases are separate. The system is a retail system. If they
start buying together, their spending on food can be reduced by 10 to 15%. And
these cost savings can be added to your profits. I've seen people come to the
veterinary store to buy one kilogram of DCP powder, and the veterinary store
will give them up to three hundred rupees per kilogram, whereas a 25 kg bag
will cost you Rs. 100 per kilogram. And if you take these bags in large
quantities, it may be even less.
If this is not possible
for you, then two or three people can buy some things from one of the big dairy
farms in your area, but you will still get a lower price from the market. If
not today, tomorrow, small farmers will have to do this.
I have read somewhere
on social media that one of the benefits of rain is that I don't have to pay
for watering my driven well, and the disadvantage is that the rain also falls
on the adjacent land. This way of thinking is unfortunately found in every
society, but you will find someone who is positive and looking forward to the
future. God has some solution for every problem and coincidence is the greatest
blessing. This has been happening in our neighboring country for the last five
decades - from the union council to the state / province and also at the
business level.
For more guidance and consultancy feel free to reach out to me. I'd be happy to assist you.
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