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.
Equipment:
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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