It takes a lot of things while setting up a milk plant. If your family is already in this business then you don’t have to worry about much. In this article, we are going to discuss the various factors that affect the cost of setting up a milk plant for your better understanding.
What are the factors affecting the cost of the milk plant?
- Location
You should be very careful while choosing the location for setting up your business. You should check the electricity supply, water, whether the location is far from town or not. If the location is far then you have to arrange the transportation for that. You also have to buy a generator for the place if too many power cuts happen.
- Dairy equipment
If you are opening a milk plant then eventually you start making the products made up of milk such as ghee, butter, cheese, curd. For all these things you need dairy equipment mentioned below:
- Homogenizer
- Batch mixers
- Continuous freezers
- Butter and cheese processing and packing
- Batch Pasteurizers
- Ice cream filling machines
- Containers
- The capacity of the plant
The capacity of the plant is another factor which affects the cost of the plant. Whether you want to produce 1000 litres of milk daily or 2000 litres or more depending upon the customers and contacts you are having. You have to buy animals also according to that. Here your contacts play a vital role because your production will be based on how much people will buy your milk on a daily basis.
- Product mix
After opening the milk plant of course you are not going to stick to one product. You are going to offer products which are made up of milk. Initially, you will start offering milk then the products made up of milk like curd, ice cream, ghee, butter. Everyone thinks of expansion of business to generate more and more revenue and eventually you will also. Like this, you can target the maximum number of audience towards your products.
- Milk procurement
Most of the people collect milk from the rural areas and are transported to the milk processing plant twice a day i.e. morning as well as in the evening. The methods of milk procurement that are mentioned below:
- Producers
The milk is given by producers to the milk plant. Producers come with their containers and shift the milk into their containers.
- Cooperative organisations
There are few organisations which supply the milk to the milk plants. This society is formed by producers through which there are no middlemen to share profits.
- Contractors
In this, at cheaper rates, the contractors will collect the milk from producers and sell it to the milk plants.
