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Goat milk yoghurt
naturally good
This business plan proposes to:
1. Set up a profitable yoghurt production and sales company
2. Economically empower the women from Shimabala, Zambia
3. Show the potential of dairy goats for developing countries
4. Exploit the specific benefits from goat milk in comparison with cow milk
The business idea is a continuation of activities already realized. There is goat milk production in the Shimabala region, now we need to turn the surplus milk into an economic activity. Zambia likes sour milk based products. In Lusaka there is a market for professionally produced yoghurt.
The Business
Business concept
The business is simple. Fresh goat milk will be purchased from the farmers in the area. From this milk yoghurt will be made in about 24 hours. We aim at a small scale capacity of 1000 liters per day. This yoghurt will be packaged in 250 ml and 500 ml cups and sold within 21 days in Lusaka. The going prize for retail packaged yoghurt is EUR 0,60 for 250 ml. The cost price of the milk is about EUR 0,30 assuming that we need 2 liters of milk for 1 liter of saleable yoghurt; packaging and other costs are about EUR 0,20 and expected earnings before tax are about EUR 0,10 per unit or about 16%.
Customers
The customers will be the people in the big city that buy at the supermarkets. This gives us a potential customer base of 200,000 — 300,000 people. Assuming daily output of 2000 cups a day this means we have to achieve a penetration of 1%. This should be feasible given the special benefits of the product compared to regular yoghurt.
The first year we expect to have about 100 clients a day
The second year we expect to increase this to 250 a day
Feasibility
Marketing strategy
We will market the yoghurt as a special dessert with sampling backing in the supermarkets. The benefits of the milk will be printed on the packaging. We will sell directly to the supermarkets and eventually the tourist lodges in the parks and Victoria Falls area.
Potential competitors
There are some farms producing yoghurt types from cow milk. We expect to produce yoghurt with different product characteristics because it is made out of goat milk plus we have technical back up from the Netherlands on dairy technology. In comparison with Parmalat we expect to have a niche market.
Business Partners
1. X. Chuulu, Zambian national, temporary resident the Netherlands
2. Van Dijk Kaasmakerij BV, Hulten, the Netherlands, private company, technological support, part of the investment money
3. Heifer Project International, Lusaka, Zambia, NGO, provider of dairy goat management training
4. Shimabala Women’s Club, Shimabala, Zambia, CBO, owners of the goats, milk suppliers
5. Heifer Project Netherlands, Roosendaal, the Netherlands, NGO, network partner, potential fund raiser
6. Heifer Project France, Lille, France, NGO, network partner, potential fund raiser
7. HD Foundation, Sambeek, the Netherlands, NGO, contributor to dairy goat program in Shimabala
Start up funding
Van Dijk will contribute approximately 10% of the required start up money on the condition that the business plan is strong enough to convince other investors.
We are still taking an inventory of interested parties concerning the investment. We hope that the partners in the already realized activities are interested to contribute to this business plan.
Development
Development
Direct Employment
We expect to need 4 people in the processing unit. However, to achieve full capacity of 1000 liter yoghurt per day we need about 2000 liter of goat milk a day. This may be produced by 2000 goats owned by some 30 — 70 families who derive income from this that they didn’t enjoy before.
Direct income
For the yoghurt plant we expect normal salaries of EUR 100 per month
The mil goats have the potential to earn for each of the families on average EUR 20/day. Average herd 40 goats yielding 40 liter for sale at EUR 0,50 per liter.
Quality of living
The families will use the milk for their own benefit and are able to sell the surplus for money. This will increase the quality of the diet and has the potential to diminish child mortality and will spur economic development in a rural area in Zambia.
Knowledge and skills
The area will build up specific knowledge gained by the training and the economic motivation for the production of goat milk. This pilot has the potential to be repeated in other parts of the country and even other countries.
Environment
Given proper husbandry methods there are no adverse effects for the environment.
Spin off
After 3 years 50 farmer families led by women may earn from EUR 20 a day from goat husbandry
After 10 years this may have multiplied to 500 farmer families with on average 6 family members. 3000 people may benefit directly. The consumers are benefiting from the improved digestibility of goat milk in comparison with cow milk.
2 comments
Seeland Development , a Black empowered company based in South Africa , with 80% women involved have perfect land of 826 hectares to start a Goat farming set-up,we are interested in getting help from potential interested Netherlands companies, farmers ,in
We thank you for this opportunity and previlege to address this particular quest to you and your organization and our appeal is that you seriously consider it to help us in our efforts to start a significant Goat farming operation , as mentioned we have a huge peice of land which is perfect for goat farming. We need capacity to farm and manage and lack finance, however, our black empowerment status have the key to open doors if we are succesful in our efforts to find a solid and good partner/investor ,we can open doors to sources in our country relevant to government and private support , export and import licences etc.Look very much forward to your most welcome response and we are ready to start
Information
I am intersted to invest to establish goat farme so I need to have information from you have you can help me with your busines idea can I have those etc
please write me