D.

A PROGRESSIVE DAIRY FARM

BUSINESS PLAN

PRODUCTION AND SUPPLY OF RAW COW MILK

Address
P.O Box 47-20103
ELDAMA RAVINE
Cell phone: 0720-662174/0720-867944

6/19/2024
Excutive summary
D.A PROGRESSIVE DAIRY FARM sits on a 5 Acres piece of land owned by David Cholyo and Agnes
Lagat where the business name is derived from them. The farm is located at Saos village opposite
Kamaruso Academy,approximately 500 metres from Emining-Saos road. The farm deals with various
agricultural activities as well as livestock rearing.Through this farm business plan ,the farmer intends to
enhance quality and quantity of cow milk production by setting up a semi-Zero grazing unit,pasture and
fodder production,incorporating good animal husbandry practices at the farm and breed improvement. The
main product to be sold will be raw cow milk to potential customers such as Saos cooperative society, and
dairy processing plant at Store area(HILO).

Our strategic plan points out the vision and mission of the dairy business together with the direction which
will ensure provision of quality raw milk to the surrounding community and obtaining income to ensure
sustainability of the business.Our target market will be Saos cooperative society and HILO Dairy
processing plant. The sales strategy involves how to sell, whom to sell to and cost of the product. In
addition it will also deal with ways of reaching potential customers and satisfying them.Production and
operation plan of D.A PROGRESSIVE DAIRY FARM will include the production process, the amount
and the acquisition of raw materials such as Dairy farm equipment and animal feed, description of
production risks and suistainability strategy as well as operations schedule.The organization structure
describes the key farm personnel with their specific roles to ensure smooth running of the business to
increase cow milk production.

Finally the financial plan which will determine the financial requirements of the Dairy business venture to
enable it to predict its future expansion with the financial records involved in the operation of the business.
It shows profitability ratios and capital needed for the enterprise to take off.
GENERAL INFORMATION ABOUT THE BUSINESS

 Membership /ownership of the business ;Partenship

 Busines registration No:
 Last update of certificate :
 Licences/Permits (county /national).
 Bank Account status : Skyline sacco(Active)

GEOGRAPHICAL LOCATION OF THE BUSINESS

 County : Baringo
 Sub County : Eldama Ravine
 Ward:Lembus Perkerra
 Location : Saos
 Village/town/Centre :Saos
 Road /landmark : Kamaruso Score Altitude Academy

EXECUTIVE /Directors /management

S/No Name Position ID Contacts Signature

David Cholyo Director 20133350 0720861944 ………………………………
Agnes Lagat Director 28053752 072066174 ………………………………

CURRENT ACTIVITIES

 Pasture establishment
 Silage making using fodder maize
 Mixed farming for subsitence
 Indigenous poultry farming
 Free range dairy farming

VISION
To be a leading dairy farm towards the production of quality cow milk, income generation and poverty
reduction in Baringo county.

GOAL
To increase quantity and quality of cow milk produced from 15L per day to 50L by August 2025
OBJECTIVES
i)Implement effective farm management practices at the farm by August 2024

ii)To increase production of high quality cow milk in the farm from 5L per cow per day to 18L per
cow per day by August

iii)To Improve dairy cow breed in the farm by October 2025

ACTIVITIES
S/No Objectives Activities
1 i)Divide pasture into three equal paddocks
Implement effective farm
management practices at the ii)Adhere to good animal husbandry practices
farm by August 2024
iii)Construct and set up a semi-zero grazing unit
2 To increase production of high i)Establish 0.25acre fodder plot for supplementary feeding
quality cow milk in the farm in the farm(super napier farm under TUMBUKIZA
from 15L per day to 50L per technology establishment)
day by February 2025
ii)Lease 2acres of land for pasture establishment to
increase pasture acreage and productivity

iii)To formulate 240kg of own farm dairy meal per month

(balanced ration)using store bought raw materials i.e
maizegerm,wheatbran,canolacake,sunflower
cake,premixes,dicalcium phosphate
3 i) Culling of existing cross breed cows

ii)Purchase two Jersey breeds heifers for breeding

To Improve dairy cow breed in
ii) Transport of the purchased jersey heifers to the farm
the farm by April 2025
iii) ) A.I Sychronization technology(sexed semen) to
increase herd.
v)Miscellaneous expenses

BUSINESS DESCRIPTION

D.A PROGRESSIVE DAIRY FARM is a family business which is in form of partnership. Our business is thriving
on well because two heads are better than one. The dairy farm business is intending to have an easy establishment
and start-ups because there is cost and responsibility sharing among the family members which is projected to
result to increase in high cow milk yield, income generation and an opportunity for income sharing.The farm has
two fleckview cows and one crossbreed. Our plan is to start by culling the existing cross breed cow in the farm and
solicit for funds to replace with two intermediate Jersey heifers. The total number of cows in the farm will be
four.Jersey cows are a valuable breed for dairy production due to their high-quality milk,which is rich in butterfat
and protein, efficient feed conversion, and adaptability to various farming systems. Intergrating Fleckvieh and
Jersey cows can leverage the strengths of both breeds, optimizing productivity and efficiency. This will translate to
quality and quantity in cow milk production which is projected to about 40 litres per day. Assuming all the milk
will be sold at average price of ksh.38,our business monthly income will have a significant increase of about 300%
by first calving of the purchased jersey heifers.
We developed interest in dairy production and more so semi-zero grazing because this system combines aspects of
traditional grazing and zero-grazing systems. By integrating grazing with supplementary feeding, the semi-zero
grazing system can optimize resource use, enhance productivity, and improve the welfare of dairy cows, making it
an attractive option for our farm.

MARKETING STRATEGY

i) Pricing
The price per litre of cow milk will be an average of ksh.38 which will be based on production costs plus a profit
margin to ensure sustainability, competitor analysis and market conditions to remain competitive,quality and
seasons.

ii) Place
The milk will sold through Saos farmers cooperative society which uses a combination of direct sales, mik bulking,
and organized logistics to ensure customers can purchase and receive milk effeciently and reliably.

iii) Product description

The farm will produce both high cow milk volumes and good quality milk for dietary supplementation.
Jersey cows produce A2 beta-casein protein milk, which is believed to be easier to digest for some people
compared to A1 milk hence quick market acceptability.Jersey cow milk is especially prized for its high
butterfat content, averaging around 4.84% to 5.6% which is ideal for producing butter, cheese, and other
dairy products.

Manure will also be produced as an additional by-product for use in crop farming.

iv) Process
D.A Progressive Dairy Farm will have the following proposed activities to enhance quality and high quantities of
milk are realized.
 Supplementary Feeding of the animals
 Collection of manure
 Establishment and conversation of pasture and fodder
 Regular testing of mastitis
 Deworming and other routine practices

v)Physical evidence
The business is located 500metres from Emining-Saos road opposite Kamaruso academy . This is the best
place because the customers will get greater access to the business products. High demand will be realized
from saos cooperative society,restaurant and community as a whole. In addition, there will be less
transportation costs due to its nearness to the aggregation point.
FARM BUSINESS RECORDS

The business will maintain the following records

Asset register

Electricity cost record

Communication cost( airtime)

Water bill

Transport cost

Labour /wages

Loans/credit

Finacial records

 Income statement
 Sales record
 Cash flow statement

MANAGEMENT OF THE BUSINESS

D.A Progressive dairy farm business will be managed jointly between husband and wife,where major farm activities
will be done by family. Occasionally,D.A Farm will hire casual labor for various farm operations twice per week. For
milk sales, Saos F.C.S will deposit monthly milk income in the Bank account (Skyline sacco)

STAKEHOLDERS AND PARTNERS

The enterprise will engage several stakeholders and partners for the success of the business

Partner Responsibility
1 Department of Livestock Technical advice on Breeding practices, feeding, control of
pest and diseases and general husbandry practices
3 ASDSP Training on entrepreneurship skills, monitoring performance of
the dairy farm business
3. Environment Sensitize on environment conservation and waste management
4. Saos cooperative,Bamscos Support trainings, Farminputs,A.I Services
5. Skyline sacco Savings and credit
RISKS

Risk Mitigation
1. Drought -Pasture establishment and conservation

2. Diseases -Timely Vaccination, treatment and deworming and

reporting to veterinary department or animal health
practitioners
3. Low milk prices -Increase milk volume and enhance quality to attract
great income

MARKET

The market segment will be;

-Saos F.C.S-90%

-Home consumption-10%

SUSTAINABILITY

-Pasture establishment and environmental conservation.

-Optimize feed to reduce enteric fermentation in cows, thereby reducing methane emissions.
-Practice rotational grazing to enhance soil health and prevent overgrazing.
-Implement cost management strategies to optimize production efficiency and reduce waste.
-Implement systems to convert manure into bioenergy or compost, reducing waste and generating additional income.
-Participate in education programs such exhibitions,ASK shows ,farmer exchange visit,benchmarking with successful
farmers to raise awareness about sustainable farming practices
Implementation matrix
By Lead Cost
S/No Action Advisor
when person (KES)
Implement effective farm management practices at
1. Directors
the farm by August 2024
i)Divide pasture into three equal paddocks
-Casual
i.e cost of fencing posts,barbered July 2024 Directors 10,000 labourer
wired,droppers and labour -Director
iii)Adhere to good animal husbandry
-Livestock
practicesi.e
officer
Deworming,dipping,castration of existing July 2024 Directors 10,000
-Veterinary
bulls,vaccination officer
-Agricultural
ii)Construct and set up a semi-zero engineer
August
grazing temporary structure for start-up Directors 15,000 -Livestock
2024
production
officer

To increase production of high quality cow milk in

2. the farm from 15L per day to 50L per day by Directors
February 2025

i)Establish 0.25acre fodder plot for -Causual

supplementary feeding in the farm(super labourer
November
napier farm under TUMBUKIZA 2024 Directors 10,000 -Livestock
technology establishment) production
officer
ii)Lease 2acres of land for pasture
January -Owner of the
establishment to increase pasture Directors 30,000
2025 farm
acreage , productivity and conservation
iii)To formulate 240kg of own farm dairy
meal per month (balanced ration)using
Animal
store bought rawmaterials i.e February
Directors 11,000 nutritionist
maizegerm,wheat 2025
consultant
bran,canolacake,sunflower
cake,premixes,dicalcium phosphate
To Improve dairy cow breed in the farm by April
3. Directors
2025
i) Culling of existing cross breed cows February Directors - Owner
2025
 ii) Purchase two Jersey breeds heifers for March Livestock
Directors 160,000
breeding 2025 officer
-Veterinary
iii) Transport of the purchased jersey March
Directors 10,000 officer
heifers to the farm 2025
-Driver
10,000
iv) A.I Sychronization technology(sexed April A.I
Directors
semen) to increase herd 2025 inseminator

v)Miscellaneous expenses 5,000

Total 288,000

Planned sources of funds

Source of funds Amount
Owners equity 100,000
Credit 100,000
Grants 100,000
Total 300,000

FINANCIAL RECORDS

Sales records

Month July Augu Septem Octo Novem Decem Janu Febru Marc April May June July
2024 st ber ber ber ber ary ary h 2025
2025
Sales 450 465 480 495 510 515 510 512 515 525 530 530 535
volum
e
estima
tes
litres
Sales 17,1 17,6 18,240 18,8 19,38 20,60 25,5 25,60 23,1 19,9 20,1 20,1 20,3
estima 00 70 10 0 0 00 0 75 50 40 40 30
tes
Kshs.
D.A PROGRESSIVE DAIRY FARM

INCOME STATEMENT FOR THE YEAR ENDED 31ST JULY 2025

Milk sales Ksh.266,635

Sale of culled cows Ksh.65,000

Savings
Total revenue Ksh.331,635

Expenses
A.I services cost 10,000
Husbandry activities 10,000
Pasture production cost & Fodder production cost 40,000
Own farm Dairy meal production cost 11,000
Purchase of Jersey heifers 160,000
Transport of heifers 10,000
Temporary semi-zero grazing unit and paddocks establishment 25,000
Airtime &Internet bundles 4,800
Water 3,600
Electricity 3,600
Maintenance for milk equipment 1,500
Labour &Miscellaneous expenses 15,000
Interest on loan 2500

297,000
Total expenses
Income before tax 34,635
 Cash flows

PROJECTED CASH FLOW

Month July Augus Septem Octobe Novembe Decemb Januar Februar March April Ma
t b er r r er y y
Cash 17,10 17,600 18,240 18,810 19,380 20,600 25,500 25,600 188,17 19,95 20,
in flow 0 5 0 0
Cash 23,00 18,000 1,000 1,000 13,000 1,000 33,000 5200 173,20 13,20 3,2
outflo 0 0 0
w

REVIEW OF BUSINESS PLAN

Keynote

Assuming that demand from the target market is sustained and that there will be sustained milk
production from the cows reared in the farm, then the objectives set-out in this business plan will be
achieved.

The business plan will be reviewed in April 2026.

COMPILED BY:

AGNES LAGAT

DIRECTOR OF D.A PROGRESSIVE DAIRY FARM