Executive Summary
Business Description: Dairy Delight is a dairy farm located in Jhenaidah, Bangladesh which is dedicated to provide fresh milk and the finest dairy products for local markets. We wish to start with 10 dairy cows in total 8 acres land and target to expand our herd over 3 to 5 years.
Objective:
- To establish a profitable and sustainable dairy farm .
- To produce 300 liters of milk per day within the first year.
- To achieve profitability by the end of the second year.
- To launch our dairy products to local market initially.
- To introduce modern farming technologies to ensure animal welfare.
Market Analysis: In Bangladesh demand for milk and dairy products is growing rapidly, mainly led by urbanization and population growth. Dairy Delight promises to meet this growing demand by serving local households, retailers, cafes, restaurants as well as dairy industries quality dairy products.
Target Market:
- Local households
- Retailers
- Restaurants and cafes
- Dairy product manufacturers
Growth potential :
- Quickly increasing demand for milk and milk products due to rapid urbanization and population grows which will give us scope to boost our sales.
- We intend to use of government subsidies and grants fully for dairy farming to reduce initial costs and improve profit margin. Also wish to involve in different training programs arranged by the government or NGOs to learn modern dairy farming techniques and ensure more productivity.
- Adoption of Modern Technologies
- Automated Milking Systems
- Improved Breeding Techniques
- Using artificial insemination (AI) and selective breeding
- Investing in high-quality feed and nutrition management
- Product Diversification
- Sustainability Practices
- Marketing and Branding
- Expanding Sales Channels
- Investment in Research and Development
- Risk Management
Sales and profit forecast: Revenue is projected to grow from BDT 4,200,000 in the first year to BDT 8,400,000 by the third year, in the same way expenses expected to rise from BDT 2,557,000 to BDT 3,000,000. Profit margins will increase from BDT 1,643,000 to BDT 3,500,000 over the same period.
Financial requirements and its utilization:
Startup Costs:
- Land: Own land
- Construction of facilities: BDT 200,000
- Purchase of livestock: BDT 600,000
- Equipment and machinery: BDT 250,000
- Initial feed and supplies: BDT 100,000
- Working capital: BDT 250,000
Total: BDT 1,400,000
Sources of funds: Personal savings, bank loans, investors.
Repayment of loans and dues: 1 to 5 years.
People :
- Farm Manager: 1
- Veterinarian: 1
- Farm Workers: 1
- Night Guard: 1
Marketing and sales: We plan to achieve success through targeted local advertising, social media campaigns and active community engagement. Primirily our sales channels will be distributed to local markets and retailers, strategic partnerships and an online platform for convenient home delivery.
Business Description
Types of Business: Dairy farm
Name of the Farm: Dairy Delight
Location/site: Jhenaidah, Bangladesh
Dairy Delight is a well structured farm passionate to deliver fresh and tasty milk and dairy products to meet Bangladesh’s growing demand. We aim to build sustainable farming practices prioritizing well-being of our animals and the nutritional needs of our community.
Mission Statement: Our mission is to provide fresh, healthy and high-quality dairy products within the local market as well as rapid growth as well known brand and supply throughout the country. We aim to increase community nutrition and also support local economic growth through well established farming practices.
Vision Statement: We envision Dairy Delights as a leading business in Bangladesh’s dairy industry, working for quality, sustainability and innovation.
Business Objectives:
1. Gradually increase our herd size upto 100 dairy cows within three to five years.
2. Production of 300 liters of milk daily within the first year.
3. Build a brand known for quality and sustainability in dairy products. .
4. Achieve desired profitability within second years.
Leading products or services : Dairy products including fresh milk, yogurt and dahi, cheeses, traditional ghee.
What we provide:
- Ensuring quality from farm to table and quality control in every step of production process.
- We’re committed to eco-friendly farming methods.
- We are engaged with local communities through educational programs, farm tours, and collaborative agricultural projects.
Who We Serve: Mainly to local households, retailers, restaurants and cafe. Our dedication to quality, customer satisfaction and sustainability sets us in good position in Bangladesh’s competitive dairy market.
The Opportunity or Competitive Analyses
1. Meeting Increasing Demand for Dairy Products:
Opportunity: Bangladesh’s demand for dairy products is growing rapidly due to population growth, rising incomes and a shift towards healthier diets rich in proteins.
Competitive Advantage: Dairy Delights can take this opportunity by supplying good quality dairy products according to local preferences.
2. Embracing Sustainability Trends: Efficient waste management ,adopting eco-friendly farming practices like organic methods and water conservation, our farm can better stand out in the market as consumers are quiet aware towards sustainably sourced food.
3. Focus on Quality and Building Consumer Trust: Quality, safety and nutritional value are priority for dairy consumers in Bangladesh.
4. Diversifying Product Range to Meet Varied Consumer Needs: : Offering a wide range of dairy products beyond milk, such as yogurt, cheese, butter, and ghee.
5. Harnessing Technological Advancements for Efficiency: Modern farming technologies such as automated milking systems, IoT for farm monitoring and precision farming techniques can significantly boost operational efficiency.
6. Strategic Marketing and Distribution Strategies: Effective branding, targeted marketing campaigns and partnerships with local retailers, restaurants, and online platforms can expand market reach and visibility.
7. Leveraging Government Support and Policies: The Bangladesh government provides valuable support through subsidies, grants and policies aimed at boosting agricultural development, including dairy farming.
8. Assessing the Competitive Landscape:
Competitor Analysis: We’ll look at the big players already in Bangladesh’s dairy scene. We’ll check out their market share, what they sell, how they price things, where they sell them, and what their brand is all about.
Market Research and Industrial Analysis
1. Understanding Current Market Landscape: There is great market opportunity for both fresh milk and milk products like yogurt, cheese, butter, and ghee.
2. Knowing Growth Opportunities: In Bangladesh there can be huge opportunity for fresh milk, organic milk, processed milk and milk products.
3. Knowledge about Consumer Preferences: All aged people prefer to take milk but income process has a great effect on consumption.
4. Correct Distribution Channels: We are trying to get the correct distribution channel like stores, supermarkets, local markets, restaurants, and online shops. Local market around the farm as well as surrounding places around Jhenaidah sadar can be an effective channel for raw milk and other dairy products in fresh and tasty condition.
5. Navigating Regulatory Requirements.
Industrial Analysis for Dairy Delight
1. Enhancing Production Capacity and Efficiency:
2. Promoting Sustainability Practices:
3. Streamlining Supply Chain Management:
Marketing Strategy
Vision: To become a top provider of high-quality dairy products in Jhenaidah, Bangladesh, known for our commitment to sustainability, innovation and community well-being.
Mission: To produce and distribute nutritious, affordable, and environmentally friendly dairy products while supporting the local economy and improving the lives of our stakeholders.
Strategic Objectives
1. Product Expansion:
- We target to expand farm operations through buying more cows.
- Taking modern farming equipment to boost milk production.
- Using modern feeding techniques to improve milk yield and keep cows healthy.
- Technologies like automated milking systems, farm management software and devices to monitor livestock.
2. Control Quality of Product and Get New Varieties:
- Working to ensure our dairy products are always fresh, safe and consistent.
- Launching new products such as flavored milk, probiotic yogurt and low-fat cheese to meet different consumer tastes.
3. Taking Market Recognition and Making Brand:
- Marketing campaigns to makes our brand well known .
- Connection through educational programs, farm visits and event sponsorships to build loyalty.
- Marketing through strong online presence with social media, website and e-commerce platforms.
4. Distribution Channels:
- Retail Partnerships makes our products widely available to customer.
- Sales Direct-to-Consumer including home delivery and subscription plans.
- Export Opportunities to tap into new markets.
5. Promote Sustainability and Environmental Responsibility:
- Eco-friendly Practices: Renewable energy is our primary concern ,water conservation, waste recycling are also important.
- Support local farmers and communities with training programs.
- Consumer Education
6. Enhance Financial Management and Growth:
- We have investment planning through loans, grants and investor partnerships.
- We are aiming cost-saving measures but not compromising on quality.
Monitoring and Evaluation
- These include the specific Key Performance Indicators (KPIs) to be deployed in assessing performance as well as the measures to be put in place for the evaluation of performance standards.
- Some of the possible recommendations include: Implementation of outcome reviews to check the health’s progress and the direction every once in awhile.
- In this context, we are constantly updating the results of actions received from customers, employees, and partners.
SWOT Analysis for Dairy Delights
Strengths
- High quality products
- Modern technology
- Community engagement
Weaknesses
- Limited market reach
- High operational costs
- Finally there is a difficulty of regulation in instance of organic certification and environmental standards.
- Financial bindings
Opportunities
- In dairy market, is expanding its operations and generating new business.
- Product variety
- Opening up of more outlets
- Export opportunity
Threats
- Intense competition
- Market Volatility
- Environmental risk factors
- Compliance or legal risks as per its nature that involve regulating laws and compliance norms within an organization
Marketing Plan
Location: Jhenaidah, Bangladesh
Product: Milk and Milk products like curd, cheese, ghee etc.
Target Customer:
- Local households
- Retailers
- Restaurants and cafes
- Dairy product manufacturers
Promotion:
- Social media like Facebook, websites, television, LinkedIn etc.
- Digital marketing platform.
Customer relations:
- Production of high quality milk.
- Regular communication with customers.
Operational Plan
Location: We have identified a five acre land for growing crops and 3 acres for growing fodder in Jhenaidah where they have supply of clean water.
It also has intention of increasing land for expansion of business in future.
Facilities:
- comfortable housing
- proper ventilation
- Area where the feed is to be stored and mixed
- automated milking machines
- Preservation and cooling system for milk
- Veterinary care
- quarantine area
- Waste disposal system
Livestock: As far as procurements are concerned, we will begin with the buying of 10 high- yielding dairy animals, perhaps the Holstein Friesian.
Feed and Nutrition: Our cows will be fed on a ration whereby they will be given silage, hay, grains, and supplements to increase the yield while at the same time a health check on the cows will be conducted frequently to check on any signs of diseases that might hinder the productivity.
Breeding Program: non-genetic factors such as recommended genetic sires will be deployed in artificial insemination (AI) to boost the herd genetics and productivity.
Animal Health and Welfare: Our health care includes proper veterinary check up, vaccination and preventive measures against diseases.
Staffing:
- Farm Manager: Oversee day-to-day functions of the corporation.
- Veterinarian: Carries out activities in the provision of animal health care.
- Farm Workers: Take responsibilities of feeding and milking of the animals, cleaning and other general chores.
Product Line:
- Fresh milk Yogurt
- Cheese
- Butter
- Ghee
Channels to sale our products:
- Direct selling to the domestic markets and retailers, and doorstep delivery through the internet.
- The partnerships are beneficial mainly based on cooperation with restaurants and cafes.
Promotion:
- Newspaper Advertisements, Radio Advertisements, and Bill board Advertisements
- Social media marketing
- Taking part in fairs and other events in a locality
- Customer loyalty programs
Financial Plan
Initial Investment
1. Land Acquisition and Development:
- Purchase of land: Own land
- Land development (fencing, irrigation, etc. ): BDT 32,000.
2. Internal structure:
- cow sheds Construction and storage facilities: BDT 200,000
- Milking parlor and milk storage equipment: 2, Returning from work, the Respondent borrowed BDT 200,000.
- Feed storage and preparation area: Currency 125,000 BDT
3. Livestock:
- Purchase of high-yield dairy cows (10 cows): BDT 600,000.
- Transportation and initial veterinary care: BDT 30,000
4. Equipment:
- Milking machines and accessories: In this case the amount of money required is BDT 100,000.
- Feed and water troughs: Relate BDT 10,000
- Farm machinery (tractor, feed mixer, etc. ): The board of trustees is expected to contribute at least BDT 100,000.
5. Technology:
- Farm management software: BDT 50,000
6. Working Capital:
- Initial feedstock: BDT 100,000
- Salaries for the first 6 months: BDT 150,000
- Miscellaneous expenses: BDT 20,000
Total Initial Investment: BDT 1,717,000
Loan from Bangladesh Krishi Bank keeping own land as collateral.
Operational Costs (Annual)
1. Feed and Nutrition:
- Feed and supplements: 400,000 BDT
2. Veterinary Care:
Regular check-ups and treatments: BDT 40,000
3. Salaries and Wages:
- Staff salaries (Farm Manager, Veterinarian, Livestock Handlers, etc. ): The total funds required for the project is more precisely estimated at BDT 250,000.
4. Utilities and Maintenance:
- Water, electricity, and maintenance of equipment and facilities: BDT 100,000
5. Marketing and Sales:
- Marketing campaigns, packaging, and distribution: BDT 30,000
6. Miscellaneous:
- Contingencies and unforeseen expenses: BDT 20,000
Total Annual Operational Costs: BDT 840,000
Revenue Projections (Annual)
1. Milk Sales:
Average milk yield per cow: On average, 15 liters of water daily.
Total milk yield (10 cows): 150 Liter per day
Selling price per liter: BDT 70
Annual revenue from milk: 150 liters/day for 70 BDT/liter water, thus 150 * 70 * 365 = 3,832,500 BDT a year.
2. Value-Added Products:
Yogurt, cheese, and other dairy products: BDT 1,47,500
4. Sell off extra silage from field: BDT 150,000.
3. Farm Tours and Educational Programs:
Revenue from community engagement activities: BDT 70 ,000
Total Annual Revenue: BDT 4,200,000
Annual Profit margin: BDT 1,643,000
Break even point : 2 years.
Financial Management Strategies
1. Budgeting: Preparation of a detailed budget that would enable one to track all the expenses thus exercising financial control.
2. Cost Control:
- Savings on costs should be achieved especially on areas that would not affect the quality of the product.
- Minimizing waste through efficient feed and resource management.
- Using own land fodder and silage.
- Intend to use biogas from own farm land.
3. Funding and Loans:
- Agricultural Banks: It may involve banks especially agricultural banks such as Bangladesh Krishi Bank (BKB).
- Microfinance Institutions (MFIs): The elaboration of micro-credit facilities for loans with flexible conditions, the minimal procedures of the guarantee and the ability to penetrate the rural areas where conventional banks cannot provide funds for credit to the small-scale business individuals and farmers.
- Non-Banking Financial Institutions (NBFIs): Most of the factors usually provide more flexible credit terms than the regular banking institutions hence can act as a suitable source of funding to dairy farmland.
- Government Programs and Initiatives: National level programs implemented by the government of Bangladesh are as follow:, programs related to agriculture and rural development.
- Cooperative Societies and Farmers’ Associations: Farmers’ tripartite organization comprises of the cooperative societies and farmers’ associations that offer financial services and products such as loan products that are specific to farming activities.
- Private Investors and Venture Capitalists: Various private investors and venture capitalists who look forward to invest in agriculture related business and any venture that has good growth potential have their focus in financing dairy farms in Bangladesh.
- International Development Organizations and NGOs:• International Development Organizations and NGOs:
4. Revenue Diversification: Conduct market research to diversify into related products and services like agritourism, value added products and seek export markets as a way of expanding the market.
5. Risk Management: Purchase insurance relevant to the livestock, the farming equipment, and the farming activities and having response mechanisms in cases of unstable market price fluctuations and disasters.
6. Performance Monitoring: Monitor vital financial ratios including profitability, investment, and cash and conduct its financial audits from time to time to bring changes as it finds appropriate.
Sustainability and Expansion
Sustainability Initiatives:
- Carry out organic farming.
- Introduction of waste recycling and biogas production.
- Amending the environmental conservation practice by using water saving procedures.
Expansion Plans:
- To acquire more cows to bring the size of the herd to 150 cows within the next five years.
- To break the virginity of the new markets in this segment, launch new dairy products derived from market requirements.
- To establish a dairy company with the various types of dairy products.
- Interviews conducted explore possible export markets for high quality dairy products.
Conclusion
At Dairy Delight, our goal is to offer you dairy products that not only taste great but are made with the finest creativity and responsibility. Standing for the quality, sustainability and animals’ wellbeing, HERD’s products are classic and represent the idea of the brand. These values remain active in the company today as they have in the past and will continue to remain active in the company for the future as it keeps on growing and developing its rich future. To all those patrons, clients and the greater community that has placed their faith in us, we are so thankful for having you as the reason to work towards the best each day.