How to get 10% return per Month from Dairy Farming

George Wanjau, a determined farmer from Mukurweini, Nyeri County, had always dreamt of building a sustainable and profitable business. After some research and consultation with local experts, he decided to invest his Ksh 1 million in dairy farming, with a clear focus on long-term returns.

He began by purchasing five high-yielding Ayrshire cows at Ksh 150,000 each, totaling Ksh 750,000. He knew that the quality of his herd would be crucial to the success of the farm, and the Ayrshire cows are known for their impressive milk production.

Next, George built a simple cowshed for approximately Ksh 100,000, ensuring his cows would be comfortable and well cared for. With the remaining Ksh 150,000, he covered the initial costs of feed, labor, veterinary care, and other miscellaneous expenses that came with starting the farm.

The cows quickly settled into their new environment, and George was soon collecting milk. Each of his Ayrshire cows is producing between 30 and 35 liters of milk a day, so with five cows, the daily milk production is between 150 and 175 liters. At Ksh 40 per liter, George is earning between Ksh 6,000 and Ksh 7,000 daily. In a month, his gross revenue ranges between Ksh 180,000 and Ksh 210,000.

However, running the farm come with its costs. George’s Monthly expenses include Ksh 50,000 for feed, Ksh 20,000 for labor, and Ksh 10,000 for veterinary care, totaling Ksh 80,000.

After covering these expenses, George is left with a net profit of Ksh 100,000 to Ksh 130,000 every month.

Over the years George’s farm profitability will grow as calves are expected to be born, allowing for herd expansion or additional income if sold.

For instance, selling a calf for Ksh 50,000 each will add value to the business. By reinvesting profits into better feeds, herd management, or infrastructure, him farm will steadily scale up its production and earnings, ensuring a reliable source of income.

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