Do you need help starting a milk shop? If YES, here is a sample milk distribution business plan template.
As easy as a milk selling business may seem, you can run into major problems if the right structures are not put in place. Your business plan is one such structures. This dairy milk shop business plan sample will help you avoid that.
Are you interested in how to start a distribution business from home? Let’s talk about Dairy first.
MILK DISTRIBUTION BUSINESS PLAN GUIDE
Dairy farming is a class of agricultural business, or an animal husbandry, enterprise, for long-term production of milk, usually from dairy milk but also from goats and camels.
A dairy product is food processed from the natural milk of mammals; and milk (products) happens to be one of them.
SAMPLE BUSINESS PLAN FOR DAIRY FARMING
Others milk consumption products includes butter and cheese. Daily man’s need for dairy products is met extensively from milk produced by cows, horses, camels, water buffaloes, goats, sheep, yaks, domestic buffaloes etc.
Here is a sample business plan for starting a milk supply company.
Milk is defined as a white nutritious liquid that is secreted by animals of mammalian origin and consumed as food by man. Raw milk is processed before consumption. These raw constituents (in dairy cattle) includes the percentages of the following: 87.2% water, 3.7% milk fat, 3.5% protein, 4.9% lactose, and 0.9% ash.
Milk is gotten in mammals as a raw products that needs to undergo sterilization before consumption. Microorganisms such as bacteria, debris and any sediment that may be present in the raw milk are removed through the process known as pasteurization.
There are about seven (7) known processes of milk production. These are: Collecting, Separating, Fortifying, Pasteurizing, Homogenizing, Packaging and Cleaning.
Milk is a perishable commodity therefore usually processed locally within couple of hour it is collected. Mechanical vacuum milking machines are used to milk dairy cows. This raw milk is held into refrigerated bulk milk tank where it is left to cool for about 4.4oC.
Separating involves it (raw milk) passing through either a clarifier or a separator-which aids in removing these bacteria, debris and the sediments mentioned above. Separator has its own job of separating the heavier milk fat from the lighter milk in order to produce both cream and skim milk.
Fortification of milk involves adding vitamins such as vitamins A and D (work done by a peristaltic pump).
Pasteurization on the other hand has to do with piping into a pasteurizer of different milk types (whole, skim and standardized) to kill any bacteria.
Homogenizing milk involves reducing the size of the remaining milk fat particles-an act which prevents the milk fat from separating and floating to the surface as cream.
This method makes sure milk fat is evenly distributed through the milk. Afterwards, the milk is quickly cooled (to 4.4oC) to avoid tampering its taste.
In packing, the milk is pumped into plastic bottles and paper cartons (sealed), refrigerated (if need be) and ready for consumption and distribution.
TYPES OF MILK
Milk types are known, classified and identified depending on the three standards:
•Amount of milk fat present in the finished product.
•Types of processing involved.
•Type of dairy cow that produced the milk.
So, whole milk known as fluid milk have no less than 3.25% milk fat as required by Food and Drugs Administration (FDA).
Low-fat milk must have 0.5-2.0% milk fat and skim milk must have less than 0.5% milk fat.
Most milk sold in the market is pasteurized, homogenized and vitamin-fortified.
Furthermore, other types of milk includes, fat free milk, organic milk, lactose-free milk, reduced fat-milk and condensed milk.
Moreso, milk is used in the production of other beverages and edible commodities like yoghurt, ice cream, flour, cornflakes, etcetera.
Many leading milk manufacturing plants exists, each joining hands to ensure safe milk delivery and distribution of the product.
Some of Nigeria Milk Dairy products Manufacturing Companies are:
•Fan Milk Plc
•Fries Land Campian (WAMCO Nigeria plc)
•Givanas Nigeria Limited
•Nestle Nigeria Plc
•Promasidor Nigeria Limited
•Carnco Food Nigeria Limited
•Viju Industries Limited.
HOW TO BECOME A MILK DISTRIBUTOR
In Milk Distribution Business, there are some proven successful tips and strategies that will enable unfathomable and long-lasting business.
REQUIREMENTS FOR MILK DISTRIBUTION BUSINESS
➡Make sure you have what it takes to lead a manufacturing business:
This could be finance, business competence, inter-relationship ability, marketing strategies e.t.c.A person with little or no possession of the above listed factors may lack power of adequate productivity as well as distribution.
Moreover, your time is required for proficient milk delivery and distribution business.
➡Location: Where can labor market related to your produce be located?
The measure of your income requirements is directly proportional to the location of your milk distibutor business. Is it located where customers can access you as fast as possible Or is it around the bush? Is it an environment where electricity is channeled? Don’t get caught by not having enough access to electricity.
➡ Milk Marketing/Selling Majors
It is imprudent to restrict yourself to regions-to-shops, poll-to-post,
street-to-market to sell nowadays. As a milk distributor, take merit of the internet, blog, social network, and get a professional website to sell from, stores on eBay, Amazon and the other available online trading options.
Meet your customers online, bargain and supply your products as a producer. Nonetheless, your company and product should be recognized by national and international (if possible) stores.
TIPS PLUS SKILLS TO GET STARTED A MILK SHOP BUSINESS
✔Have enough employees coordinate to ensure required distribution in India and other nations of the world. This would ensure finishing of job easily and quickly.
✔Develop confidence in you, your produce and employees.
✔Any type of milk selling business is illegal if they don’t have business permit. Check most milk distribution business for sale
This entails that business permit is required to know the type of milk to buy and sell. Then, you as a producer/distributor, can now find the seller and buyer of the milk.
✔Be sensitive to innovation.
✔Vehicles (to some extent) are required for easy distribution.
✔Knowledge of your market.
✔Exhibit good sense of will power (self command).
✔The ability to multitask keeps you going.
✔Be analytically minded and have a good grasp of accounts.
In conclusion, milk distribution business is related to the dairy product called milk, therefore, you should have a conversation with children and some people that takes milk for initial survey.
You should know what flavour and type of milk they prefer is important. This is a vital information when developing a milk shop business plan. The success of every milk distribution business lies in the hand of the producer/manager of the business in question, thereby introducing hardwork backed up with determination.
MILK DISTRIBUTION SHOP BUSINESS PLAN EXAMPLE
By using this as a template, you can get the most out of it in putting together a plan that will be unique to your business.
You need to find out how milk selling works. It is assumed that you would have done a feasibility study of your business by now. This is because you need as much information as you can find to write a plan.
This plan is only a sample and should be used as such.
- Executive Summary
Milk Masters LLC is a milk trading business which will be located in Texas. We will deal primarily in the supply of fresh dairy milk products to households and businesses in need of them. In recent years, there has a steady climb in demand for fresh milk. We see this as an opportunity to fill these demands as there is tremendous room for improvement in the quality of services provided.
Under our business arrangement, we will not own the diary cows but will only process fresh milk sourced from farms within the state of Texas. However as our business expands, we will eventually improve supply through the purchase of dairy cows within 4 years from the time of commencing business.
- Our Products
Our products consist primarily of processed fresh milk. These would be distributed in crates to end consumers early in the mornings. We have an alternative arrangement for consumers who prefer having their milk products in larger containers.
We will consider expanding our product line in the near future. This will include the inclusion of other milk variants. The reason for this is to capture a fair share of the dairy products market.
- Vision Statement
At Milk Masters LLC, we consider ourselves as potential major players in this industry. This drives our philosophy and beliefs. To this end, we are determined to break into the top tier distribution chain of milk products. This will be achievable through a commitment to our ideals and by hiring the right people to get the job done.
- Mission Statement
As a new business, we are committed to getting only the best products to our consumers. Our processed fresh dairy products will be prepared using the highest hygienic standards. We consider ourselves as contributing to the well-being of Americans.
- SWOT Analysis
As a business determined to make our presence felt, we have consulted with a reputable company skilled in the provision of a variety of business solutions including advisory and consultancy services. A strength, weakness, opportunity and threat analysis was conducted. This was done to measure our competitiveness. The following are findings from this analysis;
Our strengths as a business lie in our pool of human resources. These are people with significant years of experience in the dairy farming and dairy products distribution. We have carefully chosen this team of professionals to cement our place as a dairy distribution company known for quality.
Our weakness stems from being under-dogs in an industry with formidable players that have tremendous influence over the industry. These dairy distribution companies may get involved in sharp practices to ward off those competitors seen as threats.
Opportunities are enormous for our milk business. There has been a steady rise in demand for dairy products. Milk distribution business play an important role in filling these demands. We are exploiting this opportunity to meet with demand.
Threat to our business comes in a variety of forms. Some of these include the outbreak of livestock diseases. When there is an outbreak of cow diseases, it adversely affects our business. In addition to this is the threat posed by an economic recession. Although this rarely happens, it is a threat that will affect our business when it does.
- Target Market
A wide segment of society consumes milk products. To exploit this fact, our milk distribution business will focus on families, men, women, and children. We will make available to our market different variants of our products. We produce milk containing fat content as well as those stripped of it. This enables weight conscious people for instance to enjoy our products.
- Sales Projections
We needed to know just how profitable we could be when we started. Using available data on the rising demand for milk products, we have projected a rise in sales as summarised by this chart;
- First Financial Year. $400,000.00
- Second Financial Year. $600,000.00
- Third Financial Year. $890,000.00
- Competitive Advantage
A lot of milk distribution businesses have long been in business before ours. In spite of this, we have identified their areas of weakness we intend to build upon. This comes mainly in the form of using unskilled labour to maximize profits.
Although an inexperienced workforce will learn on the job, they may also be the reason the business collapses or performs poorly.
We are bringing in people with significant years of experience as well as those with a track record of excellence.
These will bring their skills and experience to bear on the job. We also have attractive remuneration as well as a work environment that promotes productivity.
- Marketing and Advert Strategies
To make real impact in dairy shop business, adopting productive advertising strategies is a necessity. We are not leaving any stone un-turned in achieving best results. Our marketing department will use the social media, yellow pages radio and TV outlets in getting the word out.
By following this milk distribution business plan sample, it gives you an idea of what a good plan should look like. The imaginary milk distribution business is only used for demonstration purposes only.