*START A SMALL YOGURT BUSINESS AND SCOOP 300% RETURNS FOR EACH SHILLING INVESTED*
Before we introduce you to the idea of yogurt production and marketing, think of it this way: A litre of raw milk at the farm goes for Ksh.40. Each litre of milk can produce four tumblers of 250ml yogurt, which currently retail at Ksh.55 each.
In a nutshell, a litre of milk if converted to yogurt and marketed the right way can give as much as Ksh.220 which is equivalent to 500% value addition (or 300% when you deduct all expenses).
Does that awaken your business curiosity?
Well, if it doesn’t you probably aren’t an entrepreneur.
*Yoghurt Production & Supply Business in Kenya*
Demand for yoghurt has been rising steadily since 2010 and the market remains significantly under supplied. This means there are opportunities for startups to thrive especially if they offer specialized services, good branding and unique recipes.
The good thing about this kind of business is that it is relatively easy to start and contrary to common belief, it does not cost much to set up. With as little as Ksh.100,000 you can start a small production plant and re-inject the capital as your company passes various stages of growth.
Here is a simple step-by-step guide on how you (yes you) can start a successful yogurt making business today.
*Step 1: Train Yourself On How To Make Yogurt*
Julius Yego learnt how to throw the Javelin online and he became a world star…and you too can learn how to prepare a world class recipe on your own through constant practice via this medium.
So go to Youtube, Food.com or any other top website and teach yourself how to make nice yoghurt.
You can learn from a friend who already knows how to, or enroll in yogurt making classes.
Then invest in 1 litre of milk and use it for practice.
*Identify your Target Market*
Every business targets a specific audience. Although anybody can be a customer, you will need to have specific customers that you can count on. This will help you choose a strategic location for your business and also dictate how much yogurt you will be preparing.
Your target customers can be passers-by, households, and learning institutions. If you plan to run the yogurt business on large scale, your target market can be hotels, supermarkets, and government institutions.
*Choose your Yogurt Business Location*
Upon identifying your target market, you’ll be in a better position to choose a business location. Your target market should have easy access to the business premise.
Yogurt businesses do well in urban areas. You can also decide to hire a salesperson who will hawk your products along busy roads or even in commuter buses.
*Invest in Yogurt Making Equipment*
You do not need a lot of capital to buy equipment to start your yogurt business. The equipment you buy will depend with how much capital you have.
If you are running on a small budget, you can use a firewood kitchen, invest in high-quality saucepans or sufuria, a thermometer, flavors, sugars, a weighing scale, and a milk sieve.
You will also need plastic tumblers for packaging. If your budget allows, you can buy a pasteurizer to make milk boiling easier.
With a small budget you need to plan wisely so as to get maximum value from each investment. For starters you will need a few high quality sauce pans (sufurias), thermometer, milk sieve (kichungi), weighing scale and a firewood kitchen.
As your company advances you will need to think about packaging. For that, you will approach a company that manufactures plastic tumblers – a very well known example locally is TechPack Industries Limited which is located in industrial area Nairobi. With as little as Ksh.20,000 you can get enough branded tumblers that you will be using to package your yogurt for supply.
Later on you will find the need to invest in a pasteurizer to replace your firewood kitchen. A pasteurizer is basically an advanced boiler and a good one goes for Ksh.350,000 or thereabout. You can get one supplied by local firms; a good example being FinKen Holdings Limited located Industrial area of Nairobi.
*How Much Does it Cost to Make Yogurt?*
Yogurt business startup capital depends on the size of the business you want to run. A small yogurt business will cost around Ksh.50,000, while a large one will cost you around Ksh.500,000.
The following is startup capital breakdown for a yoghurt business:
Store rent – Ksh.10, 000
Business Permit – Ksh.5,000
KEBS certification – Ksh.30,000
Pasteurizer – Ksh.350,000
Food Hygiene Certificate – Ksh.300 per year
Food Handling Certificate – Ksh.600 valid for 6 months
Branded Tumblers – Ksh.20,000
Other items such as sufuria, thermometer, weighing scale, milk sieve – Ksh.30,000
*Acquire the Necessary Certification and Licenses*
*KEBS Certification:* Your yogurt business will require you to get a KEBS certification.
*Business Permit:* Every business in Kenya needs a business permit to operate.
Before we introduce you to the idea of yogurt production and marketing, think of it this way: A litre of raw milk at the farm goes for Ksh.40. Each litre of milk can produce four tumblers of 250ml yogurt, which currently retail at Ksh.55 each.
In a nutshell, a litre of milk if converted to yogurt and marketed the right way can give as much as Ksh.220 which is equivalent to 500% value addition (or 300% when you deduct all expenses).
Does that awaken your business curiosity?
Well, if it doesn’t you probably aren’t an entrepreneur.
*Yoghurt Production & Supply Business in Kenya*
Demand for yoghurt has been rising steadily since 2010 and the market remains significantly under supplied. This means there are opportunities for startups to thrive especially if they offer specialized services, good branding and unique recipes.
The good thing about this kind of business is that it is relatively easy to start and contrary to common belief, it does not cost much to set up. With as little as Ksh.100,000 you can start a small production plant and re-inject the capital as your company passes various stages of growth.
Here is a simple step-by-step guide on how you (yes you) can start a successful yogurt making business today.
*Step 1: Train Yourself On How To Make Yogurt*
Julius Yego learnt how to throw the Javelin online and he became a world star…and you too can learn how to prepare a world class recipe on your own through constant practice via this medium.
So go to Youtube, Food.com or any other top website and teach yourself how to make nice yoghurt.
You can learn from a friend who already knows how to, or enroll in yogurt making classes.
Then invest in 1 litre of milk and use it for practice.
*Identify your Target Market*
Every business targets a specific audience. Although anybody can be a customer, you will need to have specific customers that you can count on. This will help you choose a strategic location for your business and also dictate how much yogurt you will be preparing.
Your target customers can be passers-by, households, and learning institutions. If you plan to run the yogurt business on large scale, your target market can be hotels, supermarkets, and government institutions.
*Choose your Yogurt Business Location*
Upon identifying your target market, you’ll be in a better position to choose a business location. Your target market should have easy access to the business premise.
Yogurt businesses do well in urban areas. You can also decide to hire a salesperson who will hawk your products along busy roads or even in commuter buses.
*Invest in Yogurt Making Equipment*
You do not need a lot of capital to buy equipment to start your yogurt business. The equipment you buy will depend with how much capital you have.
If you are running on a small budget, you can use a firewood kitchen, invest in high-quality saucepans or sufuria, a thermometer, flavors, sugars, a weighing scale, and a milk sieve.
You will also need plastic tumblers for packaging. If your budget allows, you can buy a pasteurizer to make milk boiling easier.
With a small budget you need to plan wisely so as to get maximum value from each investment. For starters you will need a few high quality sauce pans (sufurias), thermometer, milk sieve (kichungi), weighing scale and a firewood kitchen.
As your company advances you will need to think about packaging. For that, you will approach a company that manufactures plastic tumblers – a very well known example locally is TechPack Industries Limited which is located in industrial area Nairobi. With as little as Ksh.20,000 you can get enough branded tumblers that you will be using to package your yogurt for supply.
Later on you will find the need to invest in a pasteurizer to replace your firewood kitchen. A pasteurizer is basically an advanced boiler and a good one goes for Ksh.350,000 or thereabout. You can get one supplied by local firms; a good example being FinKen Holdings Limited located Industrial area of Nairobi.
*How Much Does it Cost to Make Yogurt?*
Yogurt business startup capital depends on the size of the business you want to run. A small yogurt business will cost around Ksh.50,000, while a large one will cost you around Ksh.500,000.
The following is startup capital breakdown for a yoghurt business:
Store rent – Ksh.10, 000
Business Permit – Ksh.5,000
KEBS certification – Ksh.30,000
Pasteurizer – Ksh.350,000
Food Hygiene Certificate – Ksh.300 per year
Food Handling Certificate – Ksh.600 valid for 6 months
Branded Tumblers – Ksh.20,000
Other items such as sufuria, thermometer, weighing scale, milk sieve – Ksh.30,000
*Acquire the Necessary Certification and Licenses*
*KEBS Certification:* Your yogurt business will require you to get a KEBS certification.
*Business Permit:* Every business in Kenya needs a business permit to operate.