How to Start Condensed Milk Production Business
Sweeten condensed milk has a good market opportunity both in domestic and export sector. The only main raw material is good quality milk. condensed milk production is one of the most profitable food processing business any individual can initiate with substantial capital investment.
The delicious product is obtained mainly from cows however other animals like are goats, and camel is also used.
The product has a versatile use in food, snacks, drinks, and home products. Whole-milk is processed into unsweetened condensed milk, evaporated milk, yogurt, and sweetened condensed milk. Sweetened condensed milk is obtained by adding sugar which is also used as a preservative. While unsweetened condensed milk is sent for heating and sterilization during packaging.
Water is evaporated from Whole-Milk completely or partially to have condensed milk. The process is attained irrespective of the quantity of sugar content in the milk.
A step-by-step guide to start a Condensed Milk Production business
How is Condensed Milk prepared?
The simple step of producing condensed milk is standardization, heating to initiate evaporation and clear microorganisms. The addition of sugar in the starting stage imparts the sweetened taste.
The evaporated item, the unsweetened condensed milk, is commonly packed in cans, which are then made aseptic with the use of autoclaves or horizontal sterilizers, or UHT-treated and properly packed in aseptic conditions using paperboard packages.
Sweetened condensed milk is concentrated milk, to which sugar is included. The product seems yellowish but is very viscous in texture. The high sugar concentration in sweetened condensed milk enhances the osmotic pressure killing most of the microbes. This product is not heat-treated after packaging as its having good sugar content which preserves it for a long duration. The sugar concentration in the water phase must not be lower than 62.5 % or greater than 64.5 %. At the latter level, the sugar solution reaches its saturation point and some sugar will directly crystallize, forming sediment.
The first stage, in both cases, includes precision standardization of the milk fat content and the dry matter content. After that heat treatment is carried out, which is partly to destroy the microorganisms in the milk and partly to impart stability to milk so that it will not coagulate during the next steps of the sterilization process. Raw material requisites and the initial treatment are similar for both items. After that, the steps slightly change.
Market potential for Condensed Milk Production business
Condensed Milk is having an extensive market. It is a famous FMCG item. Condensed Milk represents the second-largest consumed dairy product in Asian countries particularly, after liquid milk. Moreover, demand is increasing quickly throughout the world.
The homemakers in the age-group 25-45 having children who are the main consumers of Condensed Milk. So, it is a highly rewarding market for beginning an organized Condensed Milk manufacturing business.
How to Start a Sweetened Condensed Milk Production plant
There are some steps to take before beginning the enterprise. Carry out a market study to know the market potential in your location. Check out the various other competitors of the product and understand their marketing policies. Get the information about how to turn whole-milk into condensed milk through practical knowledge.
Other ways to get the knowledge is through online study materials like publications, books, classes, and seminars. It is also essential to craft a proper business plan.
Location required to start the Condensed Milk Production
You must have an aseptic environment to produce safe condensed milk. Take a small factory or even can start from home. The business can be initiated as a large scale one or like a small business. You can keep the condensed milk factory in a busy marketplace or in a region where your source of raw milk is accessible.
Usually, those who opt for large condensed milk have their milk farms and units. They plan to produce unsweetened condensed milk, evaporated milk, and sweetened condensed milk. The factory must have a good road provision network and sufficient parking space.
License, registration, and permissions required to start Condensed Milk Production unit
Both limited and unlimited liability is determined by the business format you opt for. Register your business name and apply for VAT identification.
Your product will also need testing and certification. Check anti-pollution guidelines and local government rules.
Uses of Condensed Milk
Condensed milk is used to provide flavor to coffee or tea. Milk is added for chocolate toppings, an ingredient in cold cakes deserts, fruit puddings, and even pies. It is also used for biscuits, sweets, and treats.
How to Process Evaporated Milk
Before you begin a condensed milk production as a business you need to be aware of how to turn entire milk into condensed milk. There are two kinds of condensed milk, one is the sweetened condensed milk and the other is unsweetened condensed milk.
Standardized milk is used during the processing of evaporated milk. The standardized milk is heated to cause evaporation and homogenization. After cooling a standardization test is performed. The evaporated milk is then packaged in sealed containers like bottles, nylons, canned, and then sterilized.
Sweetened Condensed Milk
Whole milk has full cream and sugar added to the reconstituted concentrated milk. The next step is the homogenization later pasteurization and at last crystallization.
Sweetened condensed milk goes through these steps. Standardized milk-sugar is added-evaporation-cooling-crystallization – sterilized packaging and sealing.
There is a nice opportunity currently to have your website showcase your milk items. Makes sure the packaging is attractive and beautiful. Look for a website developer to get the site and add important elements to it.
Cost or investment to start a Condensed Milk production business
If you are choosing any small-scale business in Condensed Milk production then you must pay for raw materials specifically milk and other things such as packaging material and other things. If you are inaugurating a small-scale business then employees’ remuneration is also essential. The capital for a small-scale Condensed Milk production business is $10,000. Additionally, on a large-scale basis, the equipment can be around $50,000. The cost of raw material could be about $5000. Therefore, the entire cost could be estimated to $80,000.
For beginning the business, you must plan for the budget. You may charge around 150 to 200 naira per kilogram in the market. Not only this, but you can also directly contact and have a network with restaurants and hotel industries.
Profit in Condensed Milk production business
Because of the high demand, the profit margin in the Condensed Milk business is high. One can gain up to $2000 every day. The profit margin in the Condensed Milk production business is much more for wholesale dealers. If you carefully follow the above-mentioned steps you can earn income through the Condensed Milk production business though you have spent less capital.
How to market your Condensed Milk product
Evaporated milk and condensed milk have a great demand. There is very strong competition between top brands and businesses. Small manufacturers need to explore out a niche market to beat powerful brands. Focus on local stores, supermarkets, kiosks, and stores in your nearby community. Do plan for advertisement, provide some offers and specific promotions. Make sure you prepare high-quality milk to retain your clients.
Marketing strategies for promoting Condensed Milk
As per earlier discussion you should pick a proper good location for your Condensed Milk business. If you plan the business in a good place, you can market easily without spending much money or effort on marketing. A poster or signboard in front of your store will be sufficient. However, if you want to do home delivery, you should keep a website for the Condensed Milk business. You can design it similar to an e-commerce website where people can book directly from the webpage. Besides that, you may also do advertisements in newspapers and the internet for getting traffics to the website.
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