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How to Start Milk Production Business in Nigeria

How to Start Milk Production Business in Nigeria – If you are searching for an entrepreneurial venture that can give you both independence and the potential to make good money, consider starting your own milk production business in Nigeria. Nigeria is the most populated country in Africa, with a population of more than 200 million people calling it home, and its capital city, Abuja and it’s financial capital Lagos, being two of the fastest growing cities in the world. Also, Nigeria has immense economic potential that can grow as much as 8% annually over the next 10 years, so there are plenty of opportunities to help boost their economy through your milk production business in Nigeria.

Create A Bankable Business Plan For Milk Production Business

A business plan is very important to the success of your milk production business in Nigeria. It is the document that contains the proposed company’s business mission, aims, objectives, short, long term goals, a financial plan and how you intend to carry out the business.

A viable milk production business plan should cover the type of farm animals and the number you intend to start business with, a financial plan for the first few years of operation, location of your business and it setup, veterinary, labour requirement.
For you to get started on writing your own business plan, check out our guide on How to Write a Business Plan . You can also find templates online that will walk you through everything step-by-step. Once you have your plan written, you’ll want to take it with you when looking for financing.

Also you can secure the services of an experienced  business consultant to write a Bankable business plan for your milk production business in Nigeria, The business consultant should first, conduct a comprehensive feasibility study and research on the existing milk production businesses in your area to ascertain that the business is profitable. His positive findings should be documented in a bankable business plan that you can use to obtain loan or financial support from interested investors, banks, and other lending institutions in Nigeria.

Getting Approval for your milk production business

To do business legally in Nigeria it’s necessary you register your business with the Corporate Commission of Nigeria (CAC). It’s also important to get NAFDAC approval for your milk products and approval from both local and state governments where your business is located.

Purchasing Equipment for your milk production business

The cost of equipment and supplies needed for milk production differs, depending on whether you are raising dairy cows or goats. Plan on N200,000 to N300,000 per head for cattle and N20,000 to N50,000 per goat in the market. You’ll also need a 10-quart bottle washer and pasteurizer for each cow or goat; . Be sure to factor in labor costs when calculating your startup costs. A milking machine that can be used with both cows and goats is recommended because it will save time and money if you plan on expanding your operation at some point. Also consider purchasing a parlor dryer for drying off udders after milking—this can help prevent mastitis, which is caused by bacteria entering an infected teat canal during milking.

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Other necessary items include fencing, stanchions (or holding pens), water troughs, feeders and scales. If you are going to produce organic milk products, you will need to purchase organic feed as well as organic certification fees. Finally, you will need to have enough space available for housing animals and storing equipment. Calculate how much land you will need based on how many animals you plan to raise. Keep in mind that a standard dairy cow weighs 1,400 pounds and eats around 100 pounds of food daily. It takes approximately two acres to support one animal. So if you want to raise five cows, you’ll need about 10 acres of pastureland for grazing and another five acres for growing their food supply. For goats, figure on one acre per animal plus additional space for housing and storing equipment. Goats eat significantly less than cows so they require less land to graze. However, they do eat more hay and are better suited for mountainous areas where grass may not grow year round. Plus, keep in mind that goats will spend most of their day eating rather than producing milk. Another thing to keep in mind: Feed costs account for 50 percent of a goat farmer’s expenses, so finding ways to cut back here could potentially lead to significant savings over time.

Finding a Dairy Farm for your milk production business

 

One of the first steps to start any type of farming business is finding a location. For those looking to start their own dairy farm, you will want to find an available parcel of land that has water and access for equipment. Additionally, zoning laws must be followed when choosing your location. Depending on what types of animals are going to be used for milk production and what you plan on doing with it, there may be regulations regarding how close certain parcels can be from sensitive areas like schools or churches. If you don’t already have experience in farming, it might be worth visiting farms around your area to see how they operate. This will give you some insight into what makes a good location for starting your own dairy farm for milk production. The most important thing to remember when looking for a place to start your farm is patience. Finding just the right piece of property can take time, but getting started without all of your ducks in a row could lead to costly mistakes down the road.

The Milking Process

Every dairy farm has its own unique process for getting milk out of a cow. However, most standard commercial farms generally follow these steps

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1) The farmer leads a cow into an area called a milking parlor, where she is tied up by her neck and tail and hooked up to milking equipment.

2) The farmer massages or pinches her udder to stimulate it into letting down her milk.

3) A machine attaches itself to one of her teats and sucks out all of her milk.

4) After each session, which lasts about 10 minutes, she’s led back outside to rest in a pen until it’s time for another round.

5) On larger farms, cows are hooked up two at a time so that they can share space while being milked.

6) Cows are typically milked twice per day, with some small-scale farmers only milking once per day.

7) Depending on how much she produces and how often she’s milked, cows can produce anywhere from 5 gallons to 50 gallons of milk per day.

8) All together, cows produce over 90% of America’s dairy products!

9) Farmers usually store their milk in large vats before shipping it off to processors.

10) Most farmers ship their raw milk (the stuff right after it comes out of a cow’s udder!) directly to processing plants, where it will be pasteurized (heated up really hot), homogenized (made smooth), bottled, and distributed throughout grocery stores nationwide.

11) Pasteurization kills any bacteria or germs in raw milk that could make you sick if you drink it.

12) Homogenization breaks up fat particles in milk so that they don’t float to the top when poured.

13) Bottling separates milk from air, which helps keep it fresh longer.

14) In addition to pasteurizing, homogenizing, bottling, and distributing milk, many producers also package flavored varieties like chocolate or strawberry.

15) Some companies even add vitamins to their products as well.

16) Once it reaches supermarkets around the country, consumers buy it and bring it home for delicious treats like cereal or ice cream!

Where do you sell the Milk Produced?

Selling the Milk directly to consumers is how most small-scale farmers operate, and it’s always going to be your best bet. In most cases, you can sell milk directly from your farm. If you live in an area where there are no regulations on selling raw milk, or if there are regulations but they don’t apply to small-scale producers like yourself, then you can skip ahead to Labeling Your Product. If not, read on for how to go about getting NAFDAC approval for selling raw and processed milk. The first step is to check with your state department of agriculture to see what kind of permitting process you need to follow. Some states require that any producer selling raw milk must have a permit, while others allow farmers who only produce less than so many gallons per day (usually 100) to sell without permits. Once you know what kind of permit requirements exist in your state, get started by filling out an application form. You may also need business licenses, depending on where you live; contact your local government offices for more information. Most applications will ask for things like: The name and address of your farm A description of how you plan to market your product What kinds of animals you will use to produce milk (if applicable) How you plan to maintain sanitary conditions at your facility The application process varies widely by state, so be sure to do some research before starting.

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What are the Common Challenges in Milk Production Business?

The first challenge is raising capital. Milking parlors are expensive and need regular maintenance. A cow may be as high as 300,000 Naira while equipment will range from 200,000-300,000 Naira. You also need land because cows like space – usually one per acre. Then there’s labor and other operational costs such as veterinary services and insurance.

Cost of Starting a Dairy Farm:

The average cost of starting Dairy farm for milk production ranges from 3 million Naira up to 5 million Naira! How do you start?:

So how do you start? First thing you should do is assess your interest level and passion for milk production business. Are you passionate about it? If yes, then get started by identifying your target market; who would buy your milk? What kind of milk would they prefer (whole or skimmed)?

Where would they buy it from? How much would they pay for it? How much does it cost to produce a liter of milk?

How many liters can you sell every day?

How many days in a week can you sell?

Can people visit your farm to buy directly from you or do they have to go through middlemen?

Once you have answered these questions, write them down and create an action plan on how to achieve them.

How much money do I need?:

Now that we know what we want, let’s find out how much money we need. Figure out how much money you will use to purchase cows and equipment. Figure out how much it costs to feed each cow daily. Figure out how many liters of milk each cow produces daily. Figure out how much each liter sells for in your local market.

This information will help you calculate how many cows you need to meet your sales targets at a profit margin that works for you. How do I raise funds?: Raising funds can be difficult but not impossible if done right. To make things easier, look for partners with complementary skills and resources. For example, someone with marketing skills could partner with someone who has access to funding.

Also consider crowdfunding platforms such as FundRazr or Kickstarter where you can share your idea with others and seek their support in exchange for rewards. Finally, don’t forget about government grants which are available in many states of Nigeria.

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