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It pays that one does all that needs to be done in order to start with the right footing. As such one,
one can undertake a thorough and exhaustive research. Thereafter think towards getting a
firsthand knowledge of the industry by sitting under the tutelage of someone who has a firsthand
experience and d3ealing with the trade.
You will also be required to write a business plan. One of the good things about business plans is
that they serve as a great guide and blueprint to fly with. There are plenty business plan experts
out there; to save you the troubles and fees that you will have to pay. A sample dairy farms
business plan has been put together for your use;
In recent time, the price of raw milk has been highly volatile, resulting to fluctuations in revenue
for the Dairy Farms industry. For example, in 2011, the price of milk bounced back from the
recession and pushed up by increasing global demand, resulting to appreciable growth in revenue
generation. It was projected that in 2016, an oversupply of dairy products is expected to cause
revenue to deep further in the industry.
However, despite all the volatility, the industry is expected to experience appreciable growth going
forward. For the time being, the price of cattle feed, which typically makes up about half of the
average dairy farm’s total expenses, has been nose diving as far back as 2014, significantly
strengthening industry profit margins.
The Dairy Farms Industry is indeed a large industry and pretty much active in countries such as
United States of America, Israel, Argentine, Holland, Egypt, China, Germany, Turkey and Nigeria
et al. There is no single dairy farm company that has dominate market share in the industry hence
smaller dairy farms business can successfully make profits.
Statistics has it that in the united states of America alone, there are about 42,536 registered and
licensed dairy farms business responsible for employing about 345,672 and the industry rakes in a
whooping sum of $47 billion annually. The industry is projected to enjoy 1.3 percent annual
growth.
Just like any other business, if you are able to conduct your market research and feasibility studies
before launching your dairy farms, you are more likely not going to struggle to sell your raw milk
and other dairy products because there are loads of people out there we eat beef, drink milk and
industries that make use of byproducts from cattle in manufacturing their products.
Lastly, there are few barriers to entry into the dairy farms industry. Usually, all inputs are readily
available. In the nearest future, players in this industry may face the highest costs associated with
accessing technology, especially in relation to genetic modification engineering in livestock
breeding.
So also, intellectual property rights protecting new inventions and technology may mean that new
entrepreneurs coming into the industry will need to pay license fees and this of course will cause
increase in the start – up fee for starting a dairy farm cum cattle rearing business.
2. Executive Summary
Columbus & Sons Dairy Farms, LLC is a registered and world class dairy farms company that
will be based in the outskirt of Pierre, South Dakota – United States. We have done our detailed
market research and feasibility studies and we were able to secure a hundred acres of land to build
our dairy farming business.
Our dairy farms business is a going to be standard one hence will be involved in commercial
breeding of cows, oxen, bulls, bullocks, steers, heifers and calf et al for the main aim of producing
raw milk in commercial quantities. We will also be involved in boarding services, breeding
services, dairy support services, livestock health services, farrier services, and shearing services et
al.
We are in the dairy farms business because we want to leverage on the vast opportunities available
in the dairy farms industry, to contribute our quota in growing the U.S. economy, in national food
(raw milk) production, meat, raw materials production for industries, to export agriculture produce
from the United States to other countries and over and above to make profit.
Columbus & Sons Dairy Farms, LLC is well positioned to become one of the leading brands in the
dairy farms industry in the United States of America, which is why we have been able to source
for the best hands and equipment to run the business.
We have put process and strategies in place that will help us employ best practices when it comes
to producing raw milk in commercial quantities and conforming to the rules and regulation as
required by the regulating bodies in the United States of America.
At Columbus & Sons Dairy Farms, LLC our customer’s best interest will always come first, and
everything we do will be guided by our values and professional ethics. We will ensure that we
hold ourselves accountable to the highest standards by meeting our client’s needs precisely and
completely.
We will cultivate a working environment that provides a human, sustainable approach to earning a
living, and living in our world, for our partners, employees and for our clients.
Columbus & Sons Dairy Farms, LLC is a private registered dairy farms company that is owned
and managed by Columbus Parker and is immediate family members. The company will be fully
and single handedly financed by the owner – Columbus Parker and his immediate family
members at least for a period of time.
Before starting Columbus & Sons Dairy Farms, LLC, Columbus Parker has worked with some of
the leading dairy farms in the United States of America. He has a degree in Agriculture Economics
and well over 10 years of experience.
Columbus & Sons Dairy Farms, LLC is a dairy farms company that intend starting small in Pierre
– South Dakota, but hope to grow big in order to compete favorably with leading dairy farms in
the industry both in the United States and on a global stage.
We are aware of the importance of building a solid business structure that can support the picture
of the kind of world class business we want to own. This is why we are committed to only hire the
best hands in and around Pierre – South Dakota.
At Columbus & Sons Dairy Farms, LLC, we will ensure that we hire people that are qualified,
hardworking, dedicated, customer centric and are ready to work to help us build a prosperous
business that will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior
management staff and it will be based on their performance for a period of five years or more as
agreed by the management of the dairy farms. In view of the above, we have decided to hire
qualified and competent hands to occupy the following positions. Below is the business structure
of Columbus & Sons Dairy Farms, LLC;
Responsible for the planning, management and coordinating all farm activities across the various
sections on behalf of the organization
Supervise other section manager
Ensures compliance during project executions
Provides advice on the management of farming activities across all section
Responsible for carrying out risk assessment
Uses IT systems and software to keep track of people and progress of the growth of cattle
Responsible for overseeing the accounting, costing and sale of raw milk and other dairy products
Represent the organization’s interest at various stakeholders meetings
Ensures that dairy farm goals desired result are achieved, the most efficient resources (manpower,
equipment, tools and chemicals et al) are utilized and different interests involved are satisfied.
Responsible for preparing financial reports, budgets, and financial statements for the organization
Oversee the smooth running of the daily farming activities across the various farming sections.
Administrator / Accountant
Responsible for overseeing the smooth running of HR and administrative tasks for the
organization
Defines job positions for recruitment and managing interviewing process
Carries out staff induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for preparing financial reports, budgets, and financial statements for the organization
Responsible for financial forecasting and risks analysis.
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensures compliance with taxation legislation
Handles all financial transactions for the farms
Serves as internal auditor for the farms
Sales and Marketing Officer
Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
Identifies development opportunities; follows up on development leads and contacts; participates
in the structuring and financing of new business
Writes winning proposal documents, negotiate fees and rates in line with company policy
Responsible for handling business research, marker surveys and feasibility studies for clients
Responsible for supervising implementation, advocate for the customer’s needs, and
communicate with clients
Develops, executes and evaluates new plans for expanding increase sales
Documents all customer contact and information
Represents the company in strategic meetings
Helps to increase sales and growth for the company
Field Workers / Contract Staff
Responsible for milking cattle as instructed by the general dairy farms manager
Responsible for feeding cattle and other livestock as instructed by the supervisor
Responsible for cleaning the cattle ranch
Change the water in the water trough / trench as instructed by the supervisor on a regular basis
Handles farm implements and machines as instructed by the section manager / supervisor
Assist in handling the breeding of cattle
Carries out task in line with the stated job description
Assist in transport working tools and equipment from the dairy farm and back to the designated
store room
Handles any other duties as assigned by the dairy farm manager
Client Service Executive / Front Desk Officer
Welcomes guests and clients by greeting them in person or on the telephone; answering or
directing inquiries.
Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client
with a personalized customer service experience of the highest level
Through interaction with clients on the phone, uses every opportunity to build client’s interest in
the company’s products and services
Manages administrative duties assigned by the cattle ranch manager in an effective and timely
manner
Consistently stays abreast of any new information on the company’s products, promotional
campaigns etc. to ensure accurate and helpful information is supplied to clients
Receives parcels / documents for the company
Distributes mails in the organization
Handles any other duties as assigned my the line manager
6. SWOT Analysis
Columbus & Sons Dairy Farms, LLC do not intend to launch out a business on a trial and error
platform hence the need to conduct a proper SWOT analysis. We know that if we get it right from
the onset, we would have succeeded in creating the foundation that will help us build a standard
dairy farms business that will favorably compete with leading dairy farms in the United States of
America and in the rest part of the world.
As a standard dairy farms business, we look forward to maximizing our strength and opportunities
and also to work around our weaknesses and threats. Here is a summary from the result of the
SWOT analysis that was conducted on behalf of Columbus & Sons Dairy Farms, LLC;
Strength:
Our strength as a cattle rearing business is the fact that we have healthy relationships with loads of
major players (agriculture merchants) in the dairy farms industry; both suppliers and buyers of raw
milk in commercial quantity within and outside of the United States.
We have some of the latest cattle rearing machines; tools and equipment that will help us breed
our cattle (cows, oxen, bulls, bullocks, steers, heifers and calf et al) in commercial quantities with
less stress. Aside from our relationship (network) and equipment, we can confidently boast that we
have some the most experienced hands in the dairy farms industry under our payroll.
Weakness:
Our weakness could be that we are a new dairy farms business in the United States and we may
not have the required cash to pump into the publicity of our business. We are aware of this and
from our projection will overcome this weakness with time and turn it to a major advantage for the
business.
Opportunities:
The opportunities that are available to us cannot be quantified. The fact that almost everybody in
the world drinks milk and dairy farms products makes the business highly marketable. We know
that there are loads of homeowners, businesses and industries that will source for raw milk and
other dairy products both in the United States of America and other parts of the world. We are well
positioned to take advantage of these opportunities as they come our way.
Threat:
Some of the threats and challenges that we are likely going to face when we start our own dairy
farms are global economic downturn that can impact negatively on household spending, bad
weather cum natural disasters (draughts, epidemics), unfavorable government policies and the
arrival of a competitor (a dairy farm or even cattle rearing farm that are also into production of
raw milk) within same location.
There is hardly anything you can do as regards this threats and challenges other than to be
optimistic that things will continue to work for your good.
7. MARKET ANALYSIS
Market Trends
A close study of the dairy farming industry shows that most dairy farms that has the capacity do
not just concentrate in the commercial production of raw milk for households and businesses that
are involved in the production of fluid milk products, cheese, dry, condensed and evaporated milk,
creamery butter and yogurt et al.
They go as far as establishing a standard milk and beef processing company in line with their core
business. It is a means of maximizing profits and increasing source of revenue generation.
Despite the fact that dairy farm has been in existence since time immemorial, that does not in any
way make the industry to be over saturated; dairy farmers are exploring new technology to
continue to improve raw milk production processes and also meat and milk preservation and
packaging process. The fact that there is always a ready market for raw milk and other dairy
products makes the business ever green.
Lastly, one of the notable trends in dairy farms industry is that with the recent advancement in
technology dairy farmers can now improve the various breeds of the animals they are breeding so
as to increase the quantity of milk they produce per time.
As a matter of fact, it is now easier for dairy farmers to comfortably import the kind of breed of
domestic animal they want to breed from any country of their choice and also advancement in
technology has made it easier to cross – breed different animal.
So also a large chunk of manufacturing companies depends on dairy farms for some of their raw
materials. In essence a dairy farmer should be able to sell his or her raw milk and other dairy
products to as many people as possible.
We will ensure that we position our business to attract consumers of raw milk and other dairy
products not just in the United States of America alone but also other parts of the world which is
why we will be exporting some of our dairy farm produce either in raw form or processed form to
other countries of the world.
Columbus & Sons Dairy Farms, LLC is fully aware that there are competitions when it comes to
selling raw milk and other dairy products all over the globe, which is why we decided to carry out
thorough market research and feasibility studies so as to know how to take advantage of the
available market in the United States and in other parts of the world.
We have done our homework and we have been able to highlight some factors that will give us
competitive advantage in the marketplace; some of the factors are effective and reliable dairy
farming processes that can help us sell our raw milk and other dairy products at competitive
prices, good network and excellent relationship management.
Another competitive advantage that we are bringing to the industry is the fact that we have
designed our business in such a way that we will operate an all – round standard dairy farms that
will be involved in diverse areas such as animal rearing and meat and milk processing and
packaging plant. With this, we will be able to take advantage of all the available opportunities
within the industry.
Lastly, all our employees will be well taken care of, and their welfare package will be among the
best within our category (startups dairy farms companies in the United States) in the industry. It
will enable them to be more than willing to build the business with us and help deliver our set
goals and achieve all our business aims and objectives.
In essence we are not going to rely only on the sale of raw milk and other dairy products to
generate income for the business. Below are the sources we intend exploring to generate income
for Columbus & Sons Dairy Farms, LLC;
We have perfected or sales and marketing strategies and we are set to hit the ground running and
we are quite optimistic that we will meet or even surpass our set sales target of generating enough
income / profits from the year of operations and build the business from survival to sustainability.
We have been able to critically examine the dairy farms industry and we have analyzed our
chances in the industry and we have been able to come up with the following sales forecast. The
sales projection is based on information gathered on the field and some workable assumptions as
well with respect to the nature of dairy farms business that we run.
Below are the projections that we were able to come up with for the first three years of running
Columbus & Sons Dairy Farms, LLC;
Over and above, we have perfected our sale and marketing strategies first by networking with
agriculture merchants and companies that rely on raw materials from the dairy farms industry who
are likely to refer become our customers. In summary, Columbus & Sons Dairy Farms, LLC will
adopt the following strategies in marketing our cattle rearing produce;
Introduce our business by sending introductory letters alongside our brochure to stake holders in
the agriculture industry, companies that rely on the dairy farms industry for their raw materials,
hotels and restaurants and agriculture produce merchant et al.
Advertise our business in agro – allied and food related magazines and websites
List our dairy farms on yellow pages ads (local directories)
Attend related agriculture and food expos, seminars, and business fairs et al
Leverage on the internet to promote our business
Engage in direct marketing
Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Any business that wants to grow beyond the corner of the street or the city they are operating from
must be ready and willing to utilize every available means (both conventional and non –
conventional means) to advertise and promote the business. We intend growing our business
which is why we have perfected plans to build our brand via every available means.
We know that it is important to create strategies that will help us boost our brand awareness and to
create a corporate identity for our cattle rearing business. Below are the platforms we want to
leverage on to boost our dairy farms brand and to promote and advertise our business;
Place adverts on both print (newspapers and magazines) and electronic media platforms
Sponsor relevant community based events / programs
Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube,
Google + et al to promote our business
Install our Bill Boards on strategic locations all around Pierre – South Dakota
Engage in road show from time to time in targeted neighborhoods
Distribute our fliers and handbills in target areas
Contact corporate organizations and residence in our target areas by calling them up and
informing them of Columbus & Sons Dairy Farms, LLC and the dairy farm produce we sell
List our dairy farms in local directories / yellow pages
Advertise our dairy farms in our official website and employ strategies that will help us pull traffic
to the site.
Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well
branded with our company logo et al.
12. Our Pricing Strategy
We are fully aware that some of the key factors that will help us sell our raw milk and other dairy
farm products at the right price that will guarantee that us making profits is dependent on our
strategy while some of the factors are beyond our control.
For example, if the climatic condition is unfavorable and if there is natural disaster in the location
where we have our dairy farm, then it will directly affect the prices of our raw milk and other
dairy farm products.
The truth is that, if we want to get the right pricing structure for our raw milk and other dairy
products, then we must ensure that we choose a good location for our dairy farms, choose a good
breed that will guarantee steady and multiple breeding (prolific breeds), cut the cost of running our
farm to the barest minimum
And of course try as much as possible to attract buyer to our farm as against taking our raw milk
and other dairy products to the market to source for buyers; with this, we would have successfully
eliminate the cost of transporting the goods to the market and other logistics that can impact on
our operational cost.
We are quite aware that one of the easiest means of penetrating the market and acquiring loads of
customers for all our raw milk and other dairy products is to sell them at competitive prices hence
we will do all we can to ensure that the prices of our produce are going to be what other dairy
farms and even commercial livestock farmers who are into the sale of raw milk would look
towards beating.
One thing is certain, the nature of dairy farms business we are involved in makes it possible for
farmers to place prices for their raw milk and other dairy products based on their discretion
without following the benchmark in the industry. The truth is that it is one of the means of
avoiding running into loss. The easier you sell off your raw milk and other dairy products the
better for your business.
Payment Options
The payment policy adopted by Columbus & Sons Dairy Farms, LLC is all inclusive because we
are quite aware that different customers prefer different payment options as it suits them but at the
same time, we will ensure that we abide by the financial rules and regulation of the United States
of America.
Here are the payment options that Columbus & Sons Dairy Farms, LLC will make available to her
clients;
Besides, in setting up any business, the amount or cost will depend on the approach and scale you
want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a
good amount of capital as you would need to ensure that your employees are well taken care of,
and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and
aspirations for your business. The tools and equipment that will be used are nearly the same cost
everywhere, and any difference in prices would be minimal and can be overlooked.
As for the detailed cost analysis for starting a dairy farms business; it might differ in other
countries due to the value of their money. Below are some of the basic areas we will spend our
start – up capital in setting up our dairy farms;
The Total Fee for incorporating the Business (dairy farm) in United States of America – $750.
The amount needed to acquire / lease a dairy farm land – $50,000
The amount required for preparing the farm land (cattle ranch / dairy farm) – $50,000
Legal expenses for obtaining licenses and permits as well as the accounting services (software,
P.O.S machines and other software) – $3,300.
Marketing promotion expenses for the grand opening of Columbus & Sons Dairy Farms, LLC in
the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total
amount of $3,580.
The total cost for hiring Business Consultant – $2,500.
The total cost for payment of insurance policy covers (general liability, workers’ compensation
and property casualty) coverage at a total premium – $9,400
The amount required for the purchase of the first set of cattle – $10,000
The cost for acquiring the required working tools and equipment and milking machines et al–
$50,000
Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
The Cost of Launching an official Website – $600
Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000
Going by the report from detailed research and feasibility studies conducted, we will need an
average of $700,000 to start a standard dairy farms business in the United States of America.
Generating Funding / Startup Capital for Columbus & Sons Dairy Farms, LLC
No matter how fantastic your business idea might be, if you don’t have the required money to
finance the business, the business might not become a reality. Finance is a very important factor
when it comes to starting a business such as commercial poultry farming.
No doubt raising start – up capital for a business might not come cheap, but it is a task that an
entrepreneur must go through. Columbus & Sons Dairy Farms, LLC is a family business that is
solely owned and financed by Columbus Packer and his immediate family members.
They do not intend to welcome any external business partners, which is why he has decided to
restrict the sourcing of the start – up capital to 3 major sources. These are the areas we intend
generating our start – up capital;
One of our major goals of starting Columbus & Sons Dairy Farms, LLC is to build a business that
will survive off its own cash flow without the need for injecting finance from external sources
once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to sell our raw
milk and other dairy products a little bit cheaper than what is obtainable in the market and we are
well prepared to survive on lower profit margin for a while.
Columbus & Sons Dairy Farms, LLC will make sure that the right foundation, structures and
processes are put in place to ensure that our staff welfare are well taken of. Our company’s
corporate culture is designed to drive our business to greater heights and training and re –
training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff
and it will be based on their performance for a period of six years or more. We know that if that is
put in place, we will be able to successfully hire and retain the best hands we can get in the
industry; they will be more committed to help us build the business of our dreams.
Naming a Business
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