Introduction
This profile envisages the establishment of a plant that produces Yoghurt generically known as cultured milk as they all derive from the action of bacteria on all or part of the Lactose to produce Lactic acid, carbon dioxide acetic acid, diacetyl, acetaldehyde and several other components that give the products the characteristic of fresh taste and smell.
Production Capacity
This plant will be established on the premise that at least 4,000 litres of yoghurt will be produced per day leading to 1,248,000 litres
per year.
Production Process:
Yoghurt is made through the process of fermenting milk by the addition of bacteria, stabilizers, flavours and colour. The milk may be whole full fat, semi skimmed or low fat skimmed depending on the type of yoghurt you intend to make. It is normal in commercial yoghurt production to homogenise the milk prior to its fermentation.
Raw Materials:
The major raw materials used to make yoghurt include: Milk, Milk powder, Stabilizers, Sugar, Flavour, color and lactic cultured.
Equipment:
The major Equipment needed in the making of yoghurt includes: Packaging machine, Milk tanks, & Refrigerators. Capital Investment
Requirements: The total investment cost of the Project is estimated at NGN 23,792,000 . It is expected to yield an estimated revenue of NGN 374,400,000.
Capital Investment Requirements (CBN exchange rate -$1 to 415.15 NGN) as of 22nd April 2022.
| Capital investment item | Units | Qty | Cost in
NGN |
Cost in USD | |
| Refrigerator | No. | 1 | 80,000 | 192.701 | |
| Milk Tanks | No. | 1 | 300,000 | 722.630 | |
| Total cost of machinery | 380,000 | 915.332 | |||
Production and operating costs
| Cost Item | Units | @
NGN |
Qty/
day |
Pdn cost/ month in NGN | Pdn cost/ year
In NGN |
Pdn cost/ year
In USD |
| MIlk | liters | 70,000 | 500 | 1,820,000 | 21,840,000 | 52,607.491 |
| Starter | liters | 2,500 | 5 | 65,000 | 780,000 | 1,878.839 |
| Flavor | Kgs | 1000 | 5 | 26,000 | 312,000 | 751.533 |
| Food color | Kgs | 1000 | 5 | 26,000 | 312,000 | 751.533 |
| Sub-total | 1,937,000 | 23,244,000 | 55,989.401 |
General costs (overheads)
| Cost Per Month
NGN |
Cost Per Year
NGN |
Cost Per Year
USD |
|
| Utilities(water and power) | 2000 | 24,000 | 57.810 |
| Labour | 5000 | 60,000 | 144.526 |
| Rent | 2000 | 24,000 | 57.810 |
| Distribution costs | 5000 | 60,000 | 144.526 |
| Sub –total | 14000 | 168,000 | 404.673 |
| Total Operating Costs | 1,951,000 | 23,412,000 | 41,020.261 |
- Production is assumed for 312 days per year.
- Depreciation assumes 4 year life of assets written off at 25% per year for all assets.
- A production Month is assumed to have 26 days.
Project product costs and Price structure
| Item | Qty /day | Qty/yr | @ | Pdn cost /yr
NGN |
Pdn cost /yr
USD |
TR
In NGN |
TR
In USD |
| Yoghurt | 4000 | 1,248,000 | 300 | 23,412,000 | 41,020.261 | 374,400,000 | 901,842.707 |
Profitability Analysis
| Profitability Item | Per day | Per month | Per Year
NGN |
Per Year
USD |
| Revenue | 1,200,000 | 31,200,000 | 374,400,000 | 901,842.707 |
| Less production and operating Costs | 74,500 | 1,951,000 | 23,412,000 | 41,020.261 |
| Profit | 1,125,500 | 29,249,000 | 350,988,000 | 860,822.466 |
Market Analysis & Projected Demand:
There is a ready market for Yoghurt among the Youths and Children who cherish the product.
Sources of Supply of Raw materials
Milk, which is the prime raw material for Yoghurt making will be supplied locally from milk collecting centers or farms.
