Goat milk yoghurt

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Zambian goat house

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 goa
t 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 ther
e is a market for professionally produced yoghurt.
The Business
What is your product/service?
Business concept
The business is simple. Fresh goat milk will be purchased from the farmers in th
e 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 pa
ckaged 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; pack
aging and other costs are about EUR 0,20 and expected earnings before tax are ab
out EUR 0,10 per unit or about 16%.
Customers
The customers will be the people in the big city that buy at the supermarkets. T
his gives us a potential customer base of 200,000 â 300,000 people. Assuming daily o
utput 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 regula
r 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
Explain how you will sell your product/service (marketing strategy) and how you
will reach your customers (distribution strategy)?
Feasibility
Marketing strategy
We will market the yoghurt as a special dessert with sampling backing in the sup
ermarkets. The benefits of the milk will be printed on the packaging. We will se
ll directly to the supermarkets and eventually the tourist lodges in the parks a
nd 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 m
ilk 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, technologi
cal support, part of the investment money
3. Heifer Project International, Lusaka, Zambia, NGO, provider of dairy goat man
agement training
4. Shimabala Womenâ s Club, Shimabala, Zambia, CBO, owners of the goats, milk supplie
rs
5. Heifer Project Netherlands, Roosendaal, the Netherlands, NGO, network partner
, potential fund raiser
6. Heifer Project France, Lille, France, NGO, network partner, potential fund ra
iser
7. HD Foundation, Sambeek, the Netherlands, NGO, contributor to dairy goat progr
am 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
How does your business improve the local living standards (social and environmen
tal)?
Development
Direct Employment
We expect to need 4 people in the processing unit. However, to achieve full capa
city 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 â 70 families who derive income
from this that they didnâ 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 su
rplus for money. This will increase the quality of the diet and has the potentia
l 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 economi
c 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 go
at 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.