On-farm dairy using your own milk
Process milk from your own goats, sheep or cows into cheese, yoghurt or butter and sell direct.
- £30k-150k
- Full-time
- Own premises
- Licence or permit needed
Estimates for a small start in the UK, not guarantees.
Official data
294 UK companies in this field, 13% registered in the last 2 years
SIC 10512 “Butter and cheese production”. Source: Companies House, November 2026.
What it is
A small farm dairy where you keep a herd or flock, milk it and make your own dairy products on site, selling the finished goods rather than raw milk to a processor.
Your first three steps
- Write a simple plan covering herd size, milk volume, products and the build or conversion costs of a dairy room
- Speak to your local council and the relevant food authority about approval and layout before spending on equipment
- Visit a few small farm dairies, ask what they wish they had known, and test your products with local shops
Who pays
Farm shop and deli buyers, restaurants, visitors to your farm gate and customers at markets or online.
How it makes money
Finished products sell at far higher prices than milk sold in bulk, with extra income from farm gate sales, tastings or visits.
Skills that help
- Animal care and milking
- Food hygiene and recipe consistency
- Marketing a local food brand
Watch out for
- Dairy premises usually need approval and inspection, so check requirements with your local council before building
- Rules on selling raw milk differ between England, Wales, Scotland and Northern Ireland, so check where you are
- Animal welfare, livestock registration and milk testing requirements apply, so check with the relevant agency
- Check planning permission and mortgage or tenancy terms if you are converting farm buildings
- Insurance including public and product liability, and the heavy daily workload of milking
🔒 Full research report for UK
Real cost breakdown with current prices, licences and registration checklist, local competition, pricing, break-even and a 30-day launch plan, with sources.
Coming soonQuestions people ask
How much does it cost to set up an on-farm dairy in the UK?
Startup costs are typically around £30,000 to £150,000, depending on the size of your herd or flock, any building conversion and the equipment you need. These are estimates, so get your own quotes before committing.
What rules should I check before making dairy products on my farm?
Dairy premises usually need approval and inspection, so check with your local council before building. Rules on selling raw milk differ between England, Wales, Scotland and Northern Ireland. Also check animal welfare, livestock registration and milk testing requirements with the relevant agency.
How much time does a farm dairy take?
Estimates suggest at least around 40 hours a week, and monthly revenue typically around £2,500 to £12,000, depending on your products and sales routes. Expect a heavy daily workload because the animals need milking every day.
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