This study evaluates an intervention in the dairy subsector by an Indian livelihood promotion institution and conducts a detailed analysis of the main cost and benefit factors of the activity. Two rounds of data are available which allows for the comparison of impacts and costs and benefits under different circumstances - a relatively good year as well as one officially declared as a drought period. Results suggest that the programme is beneficial but impacts cannot be sustained under the macro shock. Looking at the main cost factors reveals that fodder availability was a major problem. The results help to suggest an improved programme design.