Livestock farms and products contribute huge amounts to a
country’s GDP. Diary milk production is an important sub-sector of the
industry.
Huge volumes are consumed daily making it a good business
venture. Things that contribute to the growth of the milk industry include
increased production, use of modern technology and government subventions.
Other reasons are increased feed quality, higher grade
animals and more capital investment. To position your milk processing plant
towards profitability produce high quality milk, use modern farming methods and
acquire training.
A major challenge in the milk industry is spoilage and
few milk processors. The demand outweighs the supply making the business
lucrative to new investors.
Starting
a Small Scale Milk Processing Plant
Carry
out a Feasibility Study
The feasibility study should focus on the farming method
and evaluate the financials of the project. Conduct a targeted survey, study
trending products, prices and best location for factory.
Write a business plan that covers vision, mission
statement, management structure and funding.
Marketing
the Milk Product
Livestock farming has a huge impact on any country’s
economy. The milk production sector is highly valuable and a good source of
animal protein and other nutrients.
Top producers of milk products are America, China, India,
Russia and Poland. Other major producers are Ukraine, Great Britain, France AND
Pakistan.
In most countries there is a huge domestic market for
milk products. That is why the business ventures a highly profitable investment
opportunities.
The market share for milk includes fresh milk, pasteurized
milk, and packaged milk. Marketing outlets for milk products include rural
traders, wholesalers, retailers, supermarkets and ship-owners.
In advanced countries milk is also sold door to door. To reach
valued customers use direct marketing strategies and contract sales. Sell to
hotels, restaurants, food vendors and manufacturers.
Sources
of Diary Milk
The main sources of diary milk worldwide are buffalos,
goats and cows. Cows produce 70% of the milk requirements worldwide. A huge quantity
of raw milk is consumed daily while processed products are found everywhere.
Diary
Milk Value Chain
The milk starts is journey from they diary farmer to the
plant. A small scale processing plant collects the produce straight from the
farmer or a middleman.
To accomplish this they setup a collection and testing
center for the product. Fresh milk has a short shelf life therefore prompt
delivery is essential for quality control. The plant then processes and
packages the milk.
Small
Scale Milk Processing Plant
The milk processing plant should be located close to the
source of raw milk. This is because of the short shelf life of raw milk.
A milk processing plant has the option to choose from a
wide verity of products to manufacture. They may process milk into condensed
form, cheese, dry milk powder and pasteurized.
The milk could be made into butter, ice cream and other
products. The type of machinery you purchase depends on your area of focus.
Types
of Milk Products
There are different types of milk products such as
condensed milk, pasteurized milk, dry milk and powdered milk. Others include
cheese, ice cream, cream, yogurt and butter.
A
list of Milk Products
Condensed milk
Dry milk
Pasteurized milk
Powdered milk
Cheese
Ice cream
Yogurt
Butter
Top Milk
Processing Companies
The small scale processing plant is going to face stiff
competition with well funded milk processing companies. Here are a few major
players in the milk processing industry. Nestle, K and K, Vita, DiaryCrest, Prime,
Unilever and Cadbury
Regulatory
Framework for Milk Processing Plant
There are a few regulations guiding fresh milk
processing, storage and sales. No milk is allowed from diseased animal,
labeling mandatory and farmer needs to pass certain health provisions.
Canning, sterilization and pasteurization are done under
strict rules and regulations. The factory is regularly subjected to health and
sanitary inspections.
The product is also mandated to pass a basic
standardization test and assigned a manufacturers number and date. The milk
process needs to maintain high quality assessment standards.
Hire
Staff
Hire qualified staff such as laboratory technicians,
machinery operators, accountant and cold storage technologist. You need human
resources manager, marketing staff and collection agents. Locating the plant
close to source of raw milk is very important.
Setup
a UHT Milk Processing Plant
The UHT milk processing plant should leverage on high
technology. An average production plants capacity is about 700,000 liters a
week.
Make sure your plant conforms to regulatory provisions.
Put in place a sterilization process using ultra high temperatures.
The heated method could be the indirect heat or direct
heat. The direct heating method is done by infusion or injection process.
The disadvantage of heat is inconsistent flavor and milk
deterioration. Heat treatment increases the quality of the product, eliminates
harmful pathogens and provides a longer shelf life.
The packaging should be labeled and airtight. Different
packages are can, bottles, plastic, flexi pouches and nylon.
UHT
Process Flowchart
Collection of raw milk – filtration - – cooling – storage
– pasteurization – homogenization – standardization – milk storage –UHT
treatment – Distribution and sales.
Machinery
and Equipment
Purchase high quality equipment to aid the production
process. Buy processing machinery,
storage tanks, and packaging equipment.
Fit the factory with a fully functional laboratory. The amount
of working capital needed to run a processing plant huge.
Put in place a good procurement and transportation
strategy. And don’t forget to advertise your product.
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