Small Scale Milk Processing Plant

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.
Luckily dry milk and powdered milk are fast becoming a huge market for milk processing plants. You need to carry out strategic planning and a comprehensive feasibility study before launching the enterprise.
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
Ice cream
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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