Dairy Plants

Everything you need to know about Manufacturing Costs Of Dairy Products

Determining the exact cost required to run a dairy plant will ensure the work is done in a flow. In a dairy plant, these services are included:

  • Steam production.
  • Cold production (for cooling specific areas or producing chilled water).
  • Wastewater treatment.
  • Power transformer station
  • Maintenance shop
  • Site development.
  • Staff areas

Steam production centre

Steam production station is the single cost centre and sometimes it is broken down into 2 parts:

  • Steam production
  • Boiler water treatment

Steam produced

Daily fuel consumption is checked to a certain average for daily consumption. In addition, the specific weight field and lowest calorific value is checked. All the specifications are fulfilled by the supplier and then checked at the plant.

Water consumption

Recycled water can make a lot of difference and through this real consumption can be determined easily. When no counter is available, the following methods are checked to consider the amount of water to be recycled.

  1. Measuring the water in the condensing tray;
  2. Checking the operating time of the condensed water pump;
  3. Theoretical calculation

Structural cost centres

Structural costs can be broken down into two categories:

  1. Specific structural costs for a specific function of the plant. It includes the following sections:
  • Planning department.
  • Technical supervision plus secretarial and bookkeeping staff.
  • Division handling relations with milk producers.
  • Invoicing
  • Analytical laboratory.

General plant-wide structural costs: general administration.

The processing cost is determined as it is different among the centres. General structure cost will be different among the plant centres. Structural cost is likely to rise with plant size, and the considerable amount is included in the cost price and then it will be looked at carefully.

The laboratory

Depending on the plant, you are running the functions performed by it will vary a lot. The different work needs to be done at the laboratory and this includes the following:

  • Analysis of dairy products.
  • Quality control of dairy products.
  • Analysis of producer’s milk for quality-graded milk payment.
  • Control and supervision of data needed for stock accounting.
  • Marketing service, analysis of competitors’ products.
  • Role of the research and development program for new products.
  • Provision of services to all plant sections.

General structural costs.

Indirect labour costs
Chemical reagents (testing)
Cleaning agents
Administrative costs (forms, office materials, etc.)
Direct labour costs

Storage section

The storage section at your dairy plant needs to be managed correctly so that all the dairy products and items are in the right manner. In addition, the use of the various packaging materials will make a lot of difference.

Get the quality product

When you plan to set up your dairy business, make sure that you choose the quality material in terms of the equipment and tools. This is the only way when you can make profits and your dairy business will flourish.

Nk dairy has a lot to offer you to set up your dairy business through inventive and uptodate technologies. Get in touch with us for further details!

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