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Business established

1

LiLi Cheese

Get rid of poverty and malnutrition in a controlled environment through sustainable livestock development

Developing the goat rearing in the area and providing the required environment and resources in order to mobilize 100 families at house hold level. We then purchase their milk and produce goat cheese to create a viable project, at the same time providing for a nutritious product to lower malnutrition.

Facts

Legal status business
Formally registered
Year of establishment

2004

Sales (US$)
Two years ago: 11,200
Last year: 18,000
This year (forecast): 36,240
Year 2 (forecast): 116,320
Year 3 (forecast): 221,280
Net profit after tax (US$)
Two years ago: 1,949
Last year: 2,129
This year (forecast): -13554
Year 2 (forecast): 9,350
Year 3 (forecast): 39,181
Total number of Employees
Two years ago: 1
Last year: 3
This year (forecast): 7
Year 2 (forecast): 12
Year 3 (forecast): 14

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 32,000
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...)
Total finance needed (US$) 32,000

How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.

Own Contribution in cash
Loans (debt) 32,000
Share capital that you seek from investors (equity)
Other sources
Total finance needed (US$) 32,000

The Business

What is your product/service?

To establish a viable business by promote milking goat rearing as an income generating process. This to overcome poverty by facilitating know-how, low interest credit along with required extension service and ensure market for their milk by establishing a goat milk based manufacturing centre, market network and a farm to meet shortage of quality animals.

What customer need/problem do your products/services satisfy?

Sustainable income generating activity provide additional cash flow for house holds to overcome poverty as milk money, employment and nutritious & healthy products to meet and satisfy customer requirements.

How will you make the product/service?

Organizing formal milk collection system for goat milk would create opportunity to sell their milk and establishing the farm to upgrade and raise healthy animals facilitate the effort of farmers in purchasing healthy good quality animals. Establishing the goat milk product manufacturing centre would assure the market for their milk and the market linkages to sell the products would ensure the sustainability of the processing centre.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

We will utilize our existing market network for mozzarella cheese to promote the Goat cheese and create forward market contracts with marketing agencies that operate retail selling chains and having established link market network. Create our own marketing sections to reach closer market with just in time delivery system along with awareness and promotion programme with brochures, individual visits and addressing at house wives associations.

To whom are you selling, what is your market?

As goat milk has a reputation as a healthy food product as recommended by medical practitioners for children and elderly persons ,specially as an alternative for cow milk products for persons with asthma and severe allergic conditions and make available it in drug & Grocery stores. We produce chocolate and coffee flavoured milk which is very popular among the school children and make it available at school milk bars through our contract agents.

Describe your competitors?

Current goat milk production is very limited in the country and there is no significant market competition. The availability of limited bottled plain milk and frozen pasteurized goat milk in sachets does not make any impact on our sales. Regard to Cheese and yoghurt we are the only producer in the local market and the very high price of imported products keep us enough room to compete with the pricing factors.

What makes your business different/better than your competitors (competitive advantage)?

Goat cheese production for first time in Srilanka will be a unique achievement with farmer clusters, new products like cheese and yoghurt will be a shop window and a model for replicating it in anywhere.

What makes your business, your product or service innovative?

The risk taken to introduce a formal goat milk collection scheme, establishing a farm for milking goats [Sanan breed] at the village, which is not a common breed for villagers in Sri Lanka. Furthermore products like Goat cheese and Yoghurt, are unique in Sri Lanka and thus an innovation in the market.

How will you ensure the growth of your business?

Ensured market price for goat milk through the formal milk collection scheme would encourage more villagers to get into goat milk production assuring adequate milk supply. Forward contract market agreements with marketing agencies would ensure the marketability of the products achieving the budgeted sales targets. Introduction of flavoured milk available at school level would ensure a growth of sales facilitated by promotion.

The Entrepreneur & Management

Describe the entrepreneur & management

I have 10 years experience in Milk product Manufacturing sector include quality control, production and first hand experience of 5 years working with villagers. During this period I had the opportunity to participate in various training & development programmes including the training I had in the Netherlands PTC Dairy School.
I have proved myself as an achiever by winning the National Competition for best start up Entrepreneur in 2005

What specifically makes you and (if relevant) your management team most qualified to build this business?

My key share holder of the re established venture is a well experienced and reputed Dairy Technologist and a good marketer having broad linkages with the key players in the value chain. We already recruited and trained the key staff for relevant tasks ensuring a smooth flow of activities in the business. The market agencies we created relationship consist with experienced marketing persons and network that facilitate our selling capabilities.

How much time do/will you expect to spend per week in the business?

At the moment I spent around 84 hours attending to mybusiness activities and living within the farm and processing centre premises ensuring my aviliability at all the time.

Development

How does your business improve the local living standards (social and environmental)?

It will provide better cash flow at house hold level most of them living under poverty level. The process creates a monthly cash flow around 4500 US$ in to the villages which secure them of adequate food/health and education. That would definitely improve the socio-economic levels within the family units as well as at the village level. The application of new technology will attract the youth and women towards livestock industry.

1 comment

Pioner project in Srilanka

The goat rearing has been identified as one of the most accepted and feasible project to overcome poverty.Even the world bank programmeintiated in 2003 called VISHLY whic is implemented in Polonnaruwa district given the priority for this .But due to gevernment involvement and nismangement the goat project was not a success.
If we could initiate this progrramme to create a good market for goat milk as it planned to divert to cheese which is an accepted product recommended by doctors for asthma patients this project would become the such First Project in Srilanka which would be able to replicate in most of the rural pats of the country where the oppurtunity to export this to middle east market.

16 May 07, 10:00 Samanthi Ratnayake, 16 May 07, 10:00