This profile envisages how to start a Yoghurt Making Business 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 50 litres of yoghurt will be produced per day leading to 15,600 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 or Milk Powder, Yoghurt Starter or Culture and Flavour.


The major Equipment needed in the making of yoghurt includes: Milk Tanks and Refrigerators. 

Capital Investment

Requirements: The total investment cost of the Project is estimated at NGN 540,000. It is expected to yield an estimated revenue of NGN 31,200,000.


Market Analysis & Projected Demand:

There is a ready market for Yoghurt among the Youths and Children who cherish the product.


Capital Investment Requirements (CBN Exchange rate – $1 to NGN 410 as of 3rd of June, 2021)

Capital Item  Qty  Price Per One NGN Amount (NGN) Amount (USD)
Refrigerator 1 125,000 125,000 305
Milk Tanks 1 415,000 415,000 1,012
Total Cost 540,000 1,317


Production and Operation Costs

Direct Materials, Supplies and Costs

Cost Item Unit Cost NGN Qty/ Day Pdn Cost/Day NGN Pdn Cost/Mth NGN Pdn Cost/Year NGN Pdn Cost/Year USD

Direct Costs:

Milk (Ltrs) 700 50 35,000 910,000 10,920,000 26,634
Starter (Pack) 2500 10 25,000 650,000 7,800,000 19,024
Flavour (Pack) 500 5 2,500 65,000 780,000 1,902
Sub-Total 19,500,000 47,561


General costs (Overheads) 

Cost Per Month NGN Cost PerYear NGN Cost PerYear USD
Utilities 4,000 48,000 117
Packaging 130,000 1,560,000 3,805
Sub-Total 134,000 1,608,000 3,922
Total Operating Costs 21,108,000 51,483


Project Product Costs and Price Structure 

Item Qty/Day Qty/Yr Unit Price TR/YR NGN Total Revenue(USD)
Yoghurt 50 15,600 2,000 31,200,000 76,098


Profitability Analysis Table

Profitability Item  Revenue Per Year NGN Per Year

Revenue Per Year USD

Revenue 31,200,000 76,098
Less Prod & Operating Cost 21,108,000 51,483
Profit 10,092,000 24,615


Sources of Supply of Raw Materials

Milk, which is the prime raw material for Yoghurt making, will be supplied locally from milk collecting centres or powdered milk can be used.


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