SUB: AGRI INPUT MARKETING

TOPIC: REPORT ON DAIRY UNIT BUSINESS PLAN

NAME: RUPAM PRATIKSHYA BENYA

REG NO: 20020214004(ABM)
GUIDED BY: DURGA PRASAD PADHI
Introduction:
India has been the leading producer and consumer of dairy products
worldwide since 1998 with a sustained growth in the availability of
milk and milk products. Dairy activities form an essential part of the
rural Indian economy, serving as an important source of employment
and income. India also has the largest bovine population in the world.
However, the milk production per animal is significantly low as
compared to the other major dairy producers. Moreover, nearly all of
the dairy produce in India is consumed domestically, with the
majority of it being sold as fluid milk. On account of this, the Indian
dairy industry holds tremendous potential for value-addition and
overall development.
Along with offering profitable business opportunities, the dairy
industry in India serves as a tool of socio-economic development.
Keeping this in view, the Government of India has introduced various
schemes and initiatives aimed at the development of the dairy sector
in the country. For instance, the “National Dairy Programme (Phase -
I)” aims to improve cattle productivity and increase the production of
milk expanding and strengthening and expanding the rural milk
procurement infrastructure and provide greater market access to the
farmers. On the other hand, the private participation in the Indian
dairy sector has also increased over the past few years. Both national
and international players are entering the dairy industry, attracted by
the size and potential of the Indian market. The focus is being given
to value-added products such as cheese, yogurt, probiotic drinks, etc.
They are also introducing innovative products keeping in mind the
specific requirements of the Indian consumers. These players are also
improving their milk procurement network which is further
facilitating the development of the dairy industry in India. Based on
the product type the dairy industry is segregated into liquid milk,
flavoured and frozen yogurt and cheese, UHT milk, flavoured milk,
curd, lassi, butter milk, probiotic dairy products, table butter, ghee,
paneer, khoya, skimmed milk powder, dairy whiteners, ice cream,
dairy sweets, cream, whey and sweet condensed milk.

Market Overview:
The dairy market in India reached a value of INR 11,357 Billion in
2020 and expecting the market to grow at a CAGR of 15.4% during
2021-2026.

Dairy Unit Business Plan:

Location & History: The dairy unit established in 2006, located at
Centurion University of Technology and Management,
Paralakhemundi, Odisha.

Area: 20ft X 40ft

Power requirement: 25KWH
Capacity: 100-500lts per shift
Food Standards followed: FSSAI

Administrative Details:
Overall In-Charge: Dr. Durga Prasad Padhi
In charge: N. Mani Kanta (Management trainee)
Marketing Incharge: Diwakar
Workers: 40
Technician: S. Purushottam

Business Mission: The main objective of this business is to provide

best quality dairy products at an affordable or best prices to customers
and supporting dairy farmers by collecting the milk at good prices
without middlemen.

Products description:
Products that prepared in dairy unit are:
1. Standard Milk
2. Curd
3. Ghee
4. Paneer
5. Rabidi
6. Khoa
Preparation of Standard Milk:

Milk production at farm/village

Receiving of milk Weight 100kg. Milk

Testing of Milk Rejection if any after COB

test
(Fat 4.0%, SNF 8.5%)
2,4kg. cream
Cream separation at 35-40°C
Homogenization (33-133 bar at
Pasteurization of 75°C for 15sec 60-65°C

Pasteurized storage at <4°C 97.6 kg. Standard milk

Filter/Packaging material Labeling with Packing date, expiry date

and calorific value

Cold storage

Distribution

Cost of production per litre of milk =

Milk cost+Electricity+Depreciation+Labour/Total production of milk
from 100litre of whole milk
Production Cost - Rs.3800/100 = 38/lire
Selling price - Rs.40/litre
Margin% - 50%

Explaination:
Milk cost - 35/L
Electricity - 1/L
Depreciation - 1/L
Labour - 1/L
Total = 38/l
Preparation of Curd:

Milk production at Farm/Village

Recieving Milk Weight 100kg Milk

Testing Milk Rejection if any after COB test

Standardization (Fat 3.0%, SNF 8.5)

Heating to 90°C for 10 minutes

Cooling at 30°C A small amount of old

curd added to it, the
lactobacillus in that curd
Addition of starter culture (1-1.5%) samples get activated
and multiplies, which
imports the sour taste to
Bulk Packaging curd.

Incubation (30°C-37°c for 6-8 hrs

Curd

Cooling and storage<5°C

Cost of production per litre of curd =

(Milk cost+Electricity/gas+Depreciation+Labour)/Total production of
curd from 100litre of milk
Production cost = Rs.38/L
Selling price = Rs.50/L
Margin % = 24%
Ghee Preparation

Milk production at farm/village

Receiving of Milk Weight 100kg milk

Testing of milk Rejection if any

(Fat 4.0%,SNF8.5%) after COB test

Skimmed Cream(8kg) with

milk (F-
Cream separation of fresh milk 60%F, 40% whey
0.1%)
Cream 50-60% fat

Ripening of cream keeping in room temperature for 7days

Cooking of cream at 110-120°C for 2h

Filtration Whey char

Ghee 4kg Ghee

Cooling
Labeling with expiry
Packaging date and calorific
value

Cost of production per litre of Ghee = Milkcost + Electricity +

Depreciation + Labour/Total production of ghee from 100kg of milk
Production cost - Rs.350/kg
Selling price - Rs.700/kg
Margin% - 50%
Explanation: Milk cost = 3800/10kg
(For 100kg milk we got cream-8kg, Skimmed milk-92kg)
Skimmed milk cost - 92*26=2400
Cream cost = Milk cost - Skimmed milk cost/Total production of cream
3800-2400/8 = 175rs/cream
Ghee = 175*2 = 350(50%loss)

Paneer Preparation:

Milk production of Farm/Village

Weight 100kg milk

Receiving Milk
Rejection if any after
Testing of Milk COB test

Standardization(Fat 3.0, SNF 8.5%)

Heating to 90°C
Citric acid 1% solution
Cooling to 70°C at 70°C

Coagulating (2-5 minutes)

Whey (80kg)
Removal of whey

Transfer casein to hoop Casein (20kg)

Passing at 1.5 bar Whey

Dipping in chilled water 4°C

5000g/1000g pouch
Cutting/Slicing
Labeling with expiry
Packaging date and calorific value
Cost of production per litre of paneer =
Milk cost+Electricity/Gas+Depreciation+Labour/Total production of
paneer from 100kg of milk
Production cost - Rs.190/kg
Selling price - 260/kg
Margin% - 26%
Explanation:
Milk cost = 3800/100kg
Paneer = 20kg (at 5-6% fat)
Paneer cost =3800/20 => 190/kg
Rabidi Preparation:

Milk production of farm/village

Weight 100kg, milk

Receiving of milk
Rejection if any after COB
Testing of milk test

Standardization(Fat 3.0%, SNF 8.5%)

Heat at simmering temperature in khoa

making machine at 80°C

Skin formation

Further desiccation with fast stirring at 100°C

Reduce volume to one fifth

Add sugar @5-6% of original milk Weight 5kg, sugar

Immerse layers of the skin in the

sweetened condensed milk
Add Elachi flavour
Heat gently for a while

Cooling 25kg Rabidi

Labeling with expiry

Packaging date and calorific value
Cost of production per litre of Rabadi =
Milk cost+Electricity/Gas+Depreciation+Labour/Total production of
Rabadi from 100kg of milk

Production cost - Rs.110/kg

Selling price - Rs.260/kg
Margin% - 57%

Machinery using in the mini dairy unit:

Paneer machine & Coagulating unit Pasteurizer

Packaging Machine Storage Tank

Refrigerator Kova Machine

Homogenizer

Financial Landmarks:
Details Production Sales Price Profit Margin(%)
cost
Standard 38 40 2 5
Milk
Ghee 350 700 350 50
Curd 38 50 12 24
Rabidi 110 260 150 57.69230769
Paneer 380 260 -120 -46.15384615
Curd 120 260 140 53.84615385
Break Even Point(BEP): 52%
Annual Capacity: 1,46,000 LPA (with 100% capacity)
Annual Profit: 1x146000 = Rs.146000 (Milk)
16x350x365x = Rs.2044000 (Ghee)
Total = 21,90,000

Marketing Strategy:
⚫ Inside campus
⚫ Students canteen
⚫ CCD
⚫ Dhaba
⚫ Restaurant
⚫ Local retail shops