Things you should know for setting up a mini dairy

If you are here, you are already sold on the idea of starting your own small-scale dairy business. As experts in the dairy plant manufacturing industry, we can guide you with the basics of setting up a mini dairy.

A mini dairy is a dairy unit for milk producers or entrepreneurs who either have their own source of milk or who can easily collect milk in a limited rural belt and set up a complete unit.

Advantages of a setting up a mini dairy

  1. You get access to good quality raw milk with your own dairy farm or if you know a reliable local source
  2. This also ensures delivery of fresh milk to the end consumer
  3. Cost of labour and processing are lower when the farm to consumer cycle is at small-scale
  4. Demand for better quality of milk fetches you better price
  5. With higher margins your payback period is shorter, placing you in a profitable business

Challenges for a mini dairy business

  1. Availability is not consistent throughout the year as April to November is a lean season for milking production
  2. More established brands have bigger brand loyalty and access to a bigger geography
  3. In case you are procuring milk from somewhere else, there could be competition from other existing dairy plants
  4. For any business, a consistent working capital flow is important. Advance payment for purchasing milk and distribution on credit is inevitable
  5. Milk is a highly perishable commodity, and to minimise the cost, procurement and sale of milk needs to be a daily activity.

With Best Regards

Amardeep Singh

Call Now ButtonCALL NOW