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Manage your dairy business finances: calculate net profit per litre, determine your operational break-even yields, and forecast the capital payback of herd expansions.
Depending on the breed and feed costs, the operational production cost typically ranges from ₹25 to ₹40 per litre. Desi cows (e.g. Gir) have higher costs per litre due to lower yield, but their A2 milk commands a substantial price premium. HF/Jersey crossbreeds produce milk at a lower cost per litre due to high yields.
The break-even point is reached when total revenue equals total expenses (fixed + variable). You calculate it by dividing your total daily herd running expenses by the sale price per litre to find the minimum daily milk output required.
For a well-managed farm, adding cows typically has a payback period of 18 to 28 months per cow. This assumes cows are purchased in early lactation (2nd/3rd lactation) at peak yield, feed costs are controlled via silage/hydroponics, and calf mortality is kept near zero.
These estimates are for informational purposes only. Actual income and costs depend on local market prices, breed lineage, feeding practices, and farm management. Consult a local dairy expert or veterinarian before making financial decisions.