Updated: 3 October 2026
A 10-cow crossbred dairy costs about ₹17.5 lakh to set up on the NDDB model farm, which works out to about ₹1.75 lakh per cow. Scaled down by the same per-cow figures, 5 cows come to about ₹8.75 lakh and 2 cows to about ₹3.5 lakh.
Every figure here is from one undated NDDB model, scaled by simple division. Animal prices and milk prices vary by place and season, so check the local rate for cows, feed and milk before you plan.
What the NDDB model assumes
- 10 crossbred cows bought in milk: 5 in first lactation at 15 litres a day (₹60,000 each), 3 in second at 18 litres (₹63,000) and 2 in third at 17 litres (₹60,000). Those prices add up to ₹6,09,000, while the model books ₹6,23,000; this page uses the model total.
- Calving interval of 390 days (300 days in milk, 90 dry). Land is not costed and the farmer grows green fodder.
- Lactating cows eat 3.5 to 4 kg dry matter per 100 kg body weight; dry cows 2.5 kg.
- The model's interest on capital works out to 12%: ₹17,49,140 x 12% = ₹2,09,897 a year, matching the model line.
Project cost for 2, 5 and 10 cows
| Item (NDDB model, per cow) | Per cow (₹) | 2 cows (₹) | 5 cows (₹) | 10 cows (₹) |
|---|---|---|---|---|
| Animals (model total 6,23,000 for 10) | 62,300 | 1,24,600 | 3,11,500 | 6,23,000 |
| Sheds: adult 42,000 + calf 14,000 + heifer 24,500 | 80,500 | 1,61,000 | 4,02,500 | 8,05,000 |
| Silage bunker 3,750 + storage area 23,334 | 27,084 | 54,168 | 1,35,420 | 2,70,840 |
| Equipment (manual chaff cutter, no milking machine) | 1,600 | 3,200 | 8,000 | 16,000 |
| Contingency (about 2%) | 3,430 | 6,860 | 17,150 | 34,300 |
| Total project cost | 1,74,914 | 3,49,828 | 8,74,570 | 17,49,140 |
- Check on the arithmetic: 1,24,600 + 1,61,000 + 54,168 + 3,200 + 6,860 = 3,49,828 for 2 cows; 3,11,500 + 4,02,500 + 1,35,420 + 8,000 + 17,150 = 8,74,570 for 5 cows.
- Cross-check: the NDDB 20-cow model costs ₹33,35,750, which is ₹1,66,788 per cow, close to the ₹1,74,914 per cow here.
- A 2-cow unit rarely needs separate calf and heifer sheds, so its real shed cost can be well below the scaled ₹1,61,000. The model assumes bought cows, so no heifer rearing cost is saved.
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Yearly running cost and income
| Yearly figure (NDDB model, year 7) | 2 cows (₹) | 5 cows (₹) | 10 cows (₹) |
|---|---|---|---|
| Running cost: feed, labour, insurance, vet, power, interest on working capital (7,63,550 for 10) | 1,52,710 | 3,81,775 | 7,63,550 |
| Milk income (11,65,320 for 10) | 2,33,064 | 5,82,660 | 11,65,320 |
| Operating profit, all receipts less running cost (6,46,590 for 10) | 1,29,318 | 3,23,295 | 6,46,590 |
| Lowest operating profit in the 7 years (year 4, 3,51,210 for 10) | 70,242 | 1,75,605 | 3,51,210 |
- Per cow, year 7: running cost ₹76,355 (7,63,550 / 10) and milk income ₹1,16,532 (11,65,320 / 10).
- Operating profit is before depreciation and interest on capital. Year 7 includes ₹2,24,000 from selling older cows; year 4 includes only ₹62,000.
- After depreciation and 12% interest on capital the 10-cow model shows a net profit between ₹17,879 (year 4) and ₹3,31,259 (year 7). Year 7: 6,46,590 - 1,03,834 - 1,600 - 2,09,897 = 3,31,259.
- The model does not state the milk price per litre, so it cannot be read back from the income line.
Redo it with your local rate
- Litres needed to cover running cost = ₹76,355 / your milk price per litre. At an example ₹40 a litre that is 1,909 litres a cow a year; at an example ₹50, 1,527 litres. These prices are examples, not quotes.
- The model cows give 15 to 18 litres a day. Field herds give less (see dairy breeds), so an average cow can fall well short of the model profit.
- Feed is the largest running cost. Growing your own green fodder is the main lever; see the dairy farming guide.
Paying for the unit
- Part of the cost can be a bank loan or a Kisan Credit Card for working capital. See dairy loan and subsidy and Kisan Credit Card.
- Work out the instalment with the EMI calculator and check other support in the subsidy finder.
- For the wider picture see dairy farming and livestock farming.
Sources
- NDDB Dairy Knowledge Portal, 10 crossbred cow model farm (project cost, running cost, income, 7 years; undated)
- NDDB Dairy Knowledge Portal, 20 crossbred cow model farm (used as a cross-check; undated)