Business opportunity in dairy sector
The rise of estates in the urban centers and with the abundance of raw milk from our hardworking farmers, this is just turning out to be a very profitable venture. Small town business people can also benefit from this since its way cheaper than the packed milk and hygienic than the locally measured milk. Finken Holdings Limited, an expert in dairy business and supplier of dairy equipment and ingredients has the following tips.
How to start and succeed in Milk ATM business
Step One: Find A Good Location
Get a place where you can achieve a large volume of sales per day. Locate it inadequately populated areas. The more walk-in customers your ATM can attract, the better.
- Nearest supermarket or mini-market and negotiate a revenue-sharing agreement. They give you space and you provide the machine and milk to dispense.
- Near estates
Step Two: Choose A Good quality ATM Machine
A quality machine with enough capacity to sustain your customers’ demand is good. You can start with 200 Liters or 300 Liters. ( Finken Holdings Limited has quality machines imported from Greece at competitive prices)
Advantages of Finken ATMs
- An inbuilt cooler.
- Easy to use.
- Made of quality food grade materials that will preserve fresh milk flavor properties
- Spare parts are readily available locally
- Power efficient (Single phase)
- Low operational costs
- 12 months warranty cover
- Available in various sizes
- Personalized branding.
Step Three: Arrange With Farmers and Suppliers For Milk
Link up with farmers or suppliers to get the cheaper supply of milk. Compare cost before choosing a source.
Step Four: Get Licensed
Get the government license required.
Estimated Cost of Starting Up
- Buying Milk ATM (100 Litres) – (Ksh150,000)
- Rent & Deposit – Ksh10,000 (estimate)
- Milk – Ksh50 per litre (estimate)
- Transport – Ksh1,000 (estimate)
- Relevant Licenses – Ksh20,000 (estimate)
MINIMUM STARTING BUDGET = Ksh170,000 (for a 100L ATM)
Profit Potential (Estimates)
An established milk ATM can sell over 200 litres of milk per day since ATM milk is of the same quality as packaged milk but 30% cheaper. Clean shop and good customer service are all you need.
The profit potential increases if you partner with an established supermarket on a good revenue sharing agreement. That way you can sell more than 1,000 litres of milk per day.
Using 200 liters per day (At 50/= per litre – pasteurized)
- Sales per Month = Ksh 336,000 (At 70/= per litre-pasteurized)
- Monthly Expenses = Ksh 280,000 (estimate – rent, transport, labour)
- MINIMUM PROFIT Per Month = Ksh 56,000 (Per 100Litre ATM)
Thus, using Finken Holdings Limited milk ATM, you need about 4 months to get back your capital!
NOTE: You can sell more than 200L per day as long at the venue and the quality is right.
Finken Holdings Limited’s Final Word
The ball is in your court. Remember, even these successful dairy business and processor you see today were once small ideas that seemed too difficult to implement. So psyche yourself up and go for it – all the best.