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
- You get access to good quality raw milk with your own dairy farm or if you know a reliable local source
- This also ensures delivery of fresh milk to the end consumer
- Cost of labour and processing are lower when the farm to consumer cycle is at small-scale
- Demand for better quality of milk fetches you better price
- With higher margins your payback period is shorter, placing you in a profitable business
Challenges for a mini dairy business
- Availability is not consistent throughout the year as April to November is a lean season for milking production
- More established brands have bigger brand loyalty and access to a bigger geography
- In case you are procuring milk from somewhere else, there could be competition from other existing dairy plants
- For any business, a consistent working capital flow is important. Advance payment for purchasing milk and distribution on credit is inevitable
- Milk is a highly perishable commodity, and to minimise the cost, procurement and sale of milk needs to be a daily activity.
At Chadha Sales Pvt. Ltd. we have enabled many dairy businesses to set up milk plants, with our machinery and expertise.
