These mini dairy plants will be generally located in the remote areas not covered by dairy plants in the public, cooperative or private sectors. The following points are the driving force for setting up the small dairy plants:

  • Due to the small quantity of milk and long distance from main dairy plants resulting in high transportation cost, it becomes unviable to collect milk from these remote areas. Even if the area is covered for milk procurement by the dairy cooperatives or private sector plants, the procurement stops because of high transportation cost in summer months and milk holidays in winters.
  • It is difficult for dairy plants to manage milk procurement from these areas due to different problems with their staff like accommodation, medical facilities, education of their children etc. Thus, qualified staff do not want to go to these remote areas.
  • In certain areas the safety of staff, company’s assets and even the money for milk payments becomes the matter of concern to the management.
  • The cost of production in the mini dairy plants will be cheaper because of low cost of raw material, cheaper manpower and other production related aspects.
  • Due to availability of fresh milk, the quality of the product will be better and will fetch better price.
  • The local dairy farmers will get better price of their milk and also the assured marketing of their milk.

 

PROCESS TECHNOLOGY

A. Milk Reception

  • Milk will be brought by the farmer in his container up to the plant.
  • The milk with the container will be weighed on the platform type weigh scale. After pouring milk in the bulk milk cooler, the weight of the empty container will be taken again.
  • The difference between the two weights will be the quantity of the milk.
  • Before pouring, the milk will be tested by taking out a sample to find its fat and SNF content.
  • The milk producers will be paid on two-axis system. After getting the test report, the milk price will be calculated and paid to the farmer.
  • In the bulk milk cooler, milk will be chilled to 4oC.
  • Milk will be standardised for the required fat and SNF with the help of milk separator. The excess fat will be taken out in the form of cream.

B. Product Manufacturing

Khoa

  • The milk will be taken in the concentrator where it will be concentrated to 40% total solids.
  • The concentrated milk will be taken in khoa pans to convert the same to khoa.
  • The khoa will be packed in lots of 5 kg in parchment paper and covered with paper carton for marketing the same.
  • In case it is decided to sell khoa after value addition, then it can be done with the existing setup.

Paneer

  • The milk will be taken in the multi-purpose vat.
  • The milk will be heated to 75oC.
  • The coagulant will be added to the milk.
  • The milk will coagulate.
  • The whey will be drained.
  • The paneer will be fi lled in paneer hoops and then pressed in the paneer press.
  • The pressed paneer slabs will be portioned to 100 gm, 200 gm and 500 gm paneer portions as per the market demand.

Dahi

  • The milk will be taken in the milk-culturing tank. The milk will be heated to 40oC and then it will be cultured with the culture developed in the lab.
  • The plastic cups of 100 gm, 200 gm and 400 gm will be filled manually from the culturing tank.
  • The cups will be sealed with the lids by heat sealing machine.
  • The cups will then be placed in the incubation chamber.
  • After settling of curd in the cups they will be transferred to cold cabinet for chilling.

Ghee

  • The excess fat will be in the form of cream.
  • The cream will be chilled in the cooling cabinet.
  • The cream will be churned to separate white butter.
  • The white butter will be converted into ghee.
  • The ghee is then filtered and filled in plastic cups or container depending on the market demand.
  • The containers will be sealed and stored.

 

MILK FLOW DIAGRAM

 

MASS FLOW DIAGRAM

 

FINANCIAL STATEMENT

(Capacity: 1,500 litres/day)

Plant & Machinery

Equipment/Capacity Quantity

Total Price

(Rs.)
Milk Can 40 litres 10 30,000

Milk weighing machine

(S.S. platform type 50 kgs)

 1 45,000
Bulk milk cooler 500 litres 2 4,50,000
Cream separator 250 litres /hour 1 50,000
Multipurpose Vat 250 litres 1 1,50,000
Milk concentrator 50 kgs/hour 1 2,50,000
Khoa pan 20 litres 2 1,30,000
Paneer press (manual) 1 1,00,000
Pouch sealing machine (Manual) 1 15,000
Milk culturing can 50 lts 1 65,000
Cup sealing device 1 25,000
Incubation chamber 1 15,000
Cooling cabinet 1000 litres 2 2,00,000
Steam boiler     100 kgs/hour 1 1,50,000
Pipes and fittings (SS, GI, MS) 1 set 60,000
Electricals, starters, cables, etc 1 set 1,00,000
Erection and commissioning 1,00,000
Laboratory equipment 50,000
Furniture and fixtures 50,000
Total
   20,35,000

 

PRODUCT COSTING

Assumptions:

a. Price of milk: Rs. 35 per litre, 6% fat, 9% SNF.

b. 55% price for fat and 45% price for SNF.

c. Price of fat: Rs. 320/83kg; price of SNF: Rs. 175/kg.

d. Plant will work at full capacity for 240 days in a year.

 

Cost of raw material for different products

Product

Cost

(Rs/kg)

Dahi

 30.33

Khoa

157.75
Paneer

116.00
Ghee

321.00

 

Cost of services (fuel, electricity and water): 4,300

Fuel, electricity, water: Rs. 4,300 per day, say, Rs. 2.80/litre of milk

Salary and wages

Salary of regular staff and daily-wage workers: Rs. 50,000 per month (Rs. 1,666 per day, say Rs. 1.10/litre of milk)

 

Cost of production (RS)

Cost Head

Dahi

(Rs)

Khoa

(Rs)

Paneer

(Rs)

Ghee

(Rs)
Raw material 9,099 12,620 14,846 7941
Services 840 1,008 2,100 168
Salary & wages 330 396 825 66
Packing 4,500 400 640 100
Interest, depreciation, marketing & other misc expenses 450 540 1,125 90
Total 15,219 14,964 19,536 8,365

 

Cost of Product at Retailing Point (Rs. per kg):

Product

Cost at Retailing Point

(Rs/kg)
Dahi

60
Khoa

225
Paneer

200
Ghee

400

 

Economics of the plant (per day operation basis)

Product

Quantity

(kg)

Production cost

(Rs/kg)

Margin price

(Rs/kg)

Profit on sales realisation

(Rs)
Dahi 300 51.00 9.00 2,700
Khoa 80 187.00 38.00 3,040
Paneer 128 153.09 47.00 6,016
Ghee 24 350.00 50.00 1,200
Total       12,956

 

Net Profit (per day) = Total Sales Realisation – Cost of Production

           = Rs. 12,956 per day

Profit per year           = Rs. 12,956 x 240 days

           = Rs. 31,09,440.00