Yogurt / Ice cream / Pasteurised Milk – a beginner’s guide to processing

Yogurt / Ice cream /
Pasteurised Milk –
a beginner’s guide
to processing
Published in association with the
Society of Dairy Technology
Contents
Introduction and market overview
3
Section 1 - Technical requirements
4
Section 2 - Yogurt
6
2.1. Summary of business plan for Yogurt
6
2.2. Outline manufacture – Stirred Yogurt
6
2.3. Yogurt process flow
8
2.4. Capital and operating costs
9
2.5. Yogurt production area outline plan
10
Section 3 - Ice Cream
11
3.1. Summary of business plan for Ice Cream
11
3.2. Outline manufacture – Ice Cream
11
3.3. Ice Cream process flow
13
3.4. Capital and operating costs
14
3.5. Ice Cream production area outline plan
15
Section 4 – Pasteurised milk
16
4.1. Summary of business plan for Pasteurised milk
16
4.2. Outline manufacture - Pasteurised milk
16
4.3. Pasteurised milk process flow
18
4.4. Capital and operating costs
19
4.5. Milk processing area outline plan
20
Section 5 – Appendices
21
This booklet and the information within are intended as a guide only. Please seek detailed support from your accountant, bank, legal advisor
or other specialist support organisations.
A list of useful contacts can be found in Section 6 of the DairyCo publication ‘On-farm processing – a beginner’s guide’.
Dairy UK has developed a comprehensive guide detailing information on where to source finance, products, training and knowledge for
innovation that can be viewed at www.dairyukinfohub.com.
The Society of Dairy Technology can be contacted via their web site www.sdt.org
2
Introduction and market overview
This booklet is designed to give an overview of the requirements for the capital and cash flow, and some
recipes, for the manufacture of yogurt, ice cream and milk.
Where costs are quoted these are as a guide only and due to the nature of each project being slightly
different, special consideration should be given to the size and suitability of water, electricity and
drainage services.
Dairy product manufacturing offers a significant opportunity to achieve better returns for the milk
producer and with it a more secure future. However, it is hard physical work and demands continuous
attention from the maker.
Any dairy farmer contemplating these areas of diversification should understand they are not easy options.
There has been significant growth in the areas of luxury and indulgent products. It is unlikely any
farm-based diversification project will be able to compete in the lower end of the market; the major
opportunity lies with the added value, luxury products, with the opportunity to exploit provenance as
part of the brand positioning.
The liquid milk market is generally split – 60% semi skimmed, 30% whole milk and 10% skimmed milk.
Doorstep sales continue to decline unless being specifically developed as more of a ‘service’. These often
offer other products or ‘local’, ‘traceable’, ‘farm fresh’ milks. Branded milks are still a large opportunity
but must have a genuine unique selling point (USP) and not just a label. ‘Added value’ speciality milks
such as milk enriched with Omega 3 remain a significant opportunity and growth sector.
Yogurt / Ice Cream and Pasteurised milk processing use similar equipment and have in general terms less
technological demands and provide faster cash turn around with significantly less working capital
requirements than cheese. For this reason these products have been grouped together.
This booklet aims to provide a realistic guide to minimising some of the risks involved in investing in
yogurt, ice cream and milk processing. It sets out some of the steps needed to ensure production of the
right product, at the right quality and marketed to the right people.
The yogurt and pot dessert markets are considered a strong category and one in which consumers
demand choice, quality and innovation. Sales have been boosted bringing innovation and new entrants
together with significant marketing spend by the major manufacturers of branded produce with year on
year growth.
The ice cream market can be clearly divided into the commodity ‘value’ sector and the premium, added
value sector dominated by major brands and speciality products.
3
Section 1 - Technical requirements - Hazard
Analysis Critical Control Point (HACCP)
HACCP or equivalent system for safe dairy products production is required by law. Specialist advice will be
required in the preparation of this part of the project.
Introduction
Having deciding to manufacture dairy products, the next step is to prepare the HACCP system for the type
of product to be manufactured.
The preparation of the HACCP documentation assists in the design of the production premises to ensure that
they are safe and appropriate for the products to be made.
Some of the key HACCP areas to be considered are given below. This is not meant to be a comprehensive
HACCP description for the manufacture of dairy products, but a general overview.
Purpose
The purpose of a HACCP system is to ensure the production of safe food. Potential hazards to food safety
relating to all aspects of the manufacturing process are identified as Critical Control Points (CCPs), and
suitable records must be produced to prove that they are controlled.
Some benefits of HACCP
• Preventative system
• Systematic approach
• Assists due diligence defence
• Facilitates verification activities
• Demonstrates management commitment
The HACCP system
The first task is to address the HACCP pre-requisites, and these are:
• Food manufacturing practice (hygiene)
• Good laboratory practice
• Calibration
• Pest management systems
• Incident and recall management systems
• Preventive maintenance programmes
• Training
• Supplier quality assurance
The next task is to identify the process / product hazards, and document the CCPs on a process flow diagram.
4
Hazard analysis overview
• Good personal hygiene
• Correct cleaning and disinfection
• Adequate pest control
• Trained and aware operatives
Key process controls
• Pasteurisation / cooling
• Correct control of the manufacturing / filling process
• Correct storage temperature
Examples of hazards and recommended food safety principles to consider in relation to milk production
Hazard
Source / Cause
Control / Evidence
Raw milk
contamination by
harmful bacteria /
other substances.
Poor animal husbandry
(eg, animal disease, udder
infections).
Milk from treated animals
not segregated.
Contaminated animal feed.
Herd health and veterinary records.
Medicine / movements book. Mastitis
records.
Milking machine test reports.
Feed supplier assurances.
Good herd records and practices.
Periodic raw milk antibiotic tests.
Growth of harmful
bacteria in milk after
pasteurisation.
Inadequate pasteurisation.
Post pasteurisation
contamination.
Dirty plant and equipment.
Poor manufacturing
practice.
Poor personal hygiene.
Pasteurisation records.
Calibration certificates.
Plant and equipment cleaning and
inspection records.
Laboratory results.
Operator training records.
Hygiene training records.
There are a number of useful sources for HACCP and good manufacturing process guides. For example:
Dairy UK website (Technical Guidance)
Basic Food Hygiene Level 2 & 3, and HACCP, and Hygiene in Focus series produced by the Society of Food
Hygiene and Technology (SOFHT)
5
Section 2 - Yogurt
2.1 Summary of business plan for Yogurt – case study
A real ‘on farm’ operation - an organic farm - was chosen for this exercise to produce a case study. This
farm keeps about 110 cows, producing around 3000 litres of milk per day in the summer. The farm
commenced on-farm production of clotted cream in 2004. The clotted cream business is now well
established but created a large volume of skimmed milk. Initially the skim fraction was used as animal feed
on the farm and any left over had to be discarded. To make use of some of the skim fraction, a small
production facility was set up to produce yogurt. This facility is capable of producing yogurt regularly, on
average three to four days per week, with a maximum capacity of 100 litres per batch per day.
The equipment considered in this production facility is as follows:
• Milk reception tank
• 100 litres batch heater, incubator and cooler
• Milk separator
• Yogurt pump
• Pot filling and sealing unit
• Two yogurt chillers
• Large walk in chilled store
• Hot water boiler and air compressor
When considering an appropriate building and equipment it is essential to involve the Environmental
Health Officer (EHO), and Planning and Building Regulations Control at the earliest stages. It is also
strongly recommended that an appropriately qualified and experienced technology consultant be used to
progress planning permission and building regulation approval, and for the preparation of a robust
HACCP system. Disposal of waste also requires specialist advice as it will probably be classed as a
Product of Animal Origin (POA) and needs to be handled carefully and correctly.
2.2 Outline manufacture – Stirred Yogurt
Note: Rigorous hygiene standards must be observed at all stages of the process.
2.2.1 Milk for Yogurt production
The highest quality milk should be used for yogurt production as poor bacteriological quality inhibits the
growth of the yogurt culture during incubation.
Residues of penicillin and cleaning and sterilising solutions also impede culture growth.
For low-fat or fat-free yogurt production the milk fat content of the milk is standardised by separating off
some, or all of the fat.
A normal (full-fat) yogurt has butterfat content greater than 3%. The fat content of a low-fat yogurt is
greater than 1.5%, and for a fat-free yogurt about 0.1%.
2.2.2 Ingredients addition
Dry ingredients, skimmed milk powder, sugar, stabilisers and emulsifiers, are weighed and added to a
measured volume of milk in the manufacturing tank according to the recipe to produce the base mixture.
6
Skimmed milk powder is used to increase the total solids content of the milk to produce a firmer and more
stable set when incubated.
Stabilisers, gelatine and pectin for example, increase the viscosity of the product and help to minimise the
risk of whey separation in the finished yogurt.
2.2.3 Stirring / heating
The yogurt base mixture is heated to ~ 60 to 70°C while continuously being stirred to dissolve the ingredients.
2.2.4 High shear mixing
The yogurt base mixture is thoroughly blended with a high shear mixer.
2.2.5 Homogenisation
The mixture is passed through a homogeniser to break the milk fat globules into smaller sizes and aid even
distribution throughout the mix. This process improves the stability and consistency of the yogurt by
preventing fat separation.
2.2.6 Pasteurisation / cooling
The yogurt base mixture is batch pasteurised at 90°C for 10 - 15 minutes then cooled to 35°C.
This heat treatment provides a ‘clean’ medium for culture growth and also improves consistency by
denaturing the whey proteins.
2.2.7 Culture addition
A culture of harmless micro-organisms, which converts the milk sugar, lactose, into lactic acid, is added to the
mixture and stirred. The yogurt can be filled at this stage and incubated in the pot if ‘set’ yogurt is required.
2.2.8 Incubation
The yogurt mixture is incubated until the required acidity has been reached.
Incubation temperatures and acidities may vary depending on cultures used and final product requirement.
2.2.9 Cooling and flavour addition
The incubated yogurt mixture is cooled to ~ 12 - 15°C to retard any further increase in acidity. Colours,
flavours, fruit etc. are added and mixed as required by the recipe.
2.2.10 Filling
The finished yogurt is filled into pots and lids and labels applied.
2.2.11 Storage / testing
The finished product is transferred to a cold store and cooled to below 4°C ready for despatch and sale.
Product testing for compliance with legal requirements is carried out at this stage.
7
2.3 Yogurt process flow
Ingredients addition
Milk
Skimmed milk powder
Sugar
Stabilisers
Emulsifiers
Manufacturing tank
Stirring / heating (60 - 70°C)
High shear mixing
Homogenisation
Pasteurisation (90°C for 10 - 15 min)
Cooling (35°C)
Culture addition
Incubation
Cooling (~10 - 15°C)
Colour / flavour addition
Filling / lid label application
Cooling (below 4°C)
Storage / testing
8
2.4 Capital and operating costs for yogurt manufacture
The costing in this section was based on the procedure used for set yogurt manufacture with a daily
production capacity of 100 litres of skimmed milk. The farm is a registered organic milk production
farm and therefore the price used for costing reflects the prevailing ex-farm price for organic milk.
The capital investment required for start-up of on-farm production is as follows: (See appendix 1)
• Equipment, mostly reused
£18,600
• Or alternatively use all new equipment
£38,350
• Building premises, 7m x 3.5m food process area
£30,625
Table 2.1 – Cost of production of organic yogurt
Item
Costs per day (pence)
Using reused equipment
Using new equipment
Daily production costs
Processing
234
234
Labour
3000
3000
Ingredients
3077
3077
Equipment
1488
2192
490
490
540
602
Product delivery
1000
1000
Building repairs
123
123
Return on capital
297
329
Return on working capital
571
663
Product storage
250
250
11070
11960
110.7
119.6
Sub total to produce 500ml
55.4
59.8
Packaging cost per 500ml
14.2
14.2
Buildings
Daily admin and other running costs
Admin and maintenance
Sub total excluding packaging
Sub total to produce 1 litre
Total cost before profit
69.6
74.0
Profits at 20%
13.9
14.8
Ex-farm cost per 500ml
83.5
88.8
Note 1: Capital costs for equipment (new and second-hand) will depend on availability.
Note 2: The prevailing milk price in this illustration was 28 ppl.
Note 3: The costs for other packaging sizes can be evaluated by adding the cost of packing with the processed product.
For example, cost of processed product for 200ml is 22.2p from the above table. The cost of plastic container and foil lid
would be about 9p. Therefore, the total cost before profit would be 31.2p.
Note 4: No two enterprises will be able to cost products similarly. Producers will need to carry out their own detailed costings.
9
Step Over Bench
Area to remove
outside clothing
and footwear.
Sit on bench
swing legs over
and put dairy
protective
clothing and
footwear on.
Boiler
Mix Tank
Shear
Hand
Wash Sink
Drain
Wash
Sink
Chilled Water Unit
Drain
Drainer
Drain
Rinse
Sink
Drain
Incubation Tank
(Optional)
Hand
Wash Sink
Drain
Drainer
Air Compressor
Pasteuriser
(Batch)
Raw Material Store (Ingredients)
Drain
Incubation Tank
(Optional)
Drain
Rinse
Sink
Filling
Machine
Drain
Wash
Sink
Yogurt Additions Area
Drainer
Packaging Store
Please Note: Not to Scale
Always consult the Local Environmental Health Officer (EHO) and Planning and Building Regulations departments at all stages.
Chemical Store
Toilet (with hand wash sink)
Protective Clothing
Personal Lockers
Hand
Wash Sink
Covered Unloading Area
Homogoniser
Fig. 2.1
Hose
2.5 Yogurt production area outline plan
Hose
10
Drain
Drainer
Cold Store
Compressor Room
Cold Store 4˚C
Covered loading Area
Section 3 – Ice Cream
3.1 Summary of business plan for Ice Cream – case study
The calculations for this study are based on a pilot facility used for ice cream production for industrial training
courses, students’ projects and for sales via an on-site shop. The daily production capacity is 100 litres using
batch preparation method. The equipment required for ice cream making is as follows:
• Raw milk storage tank
• 100 litre jacketed tank for product mixing and heating
• Homogeniser
• 100 litre jacketed tank for cooling and storage of ice cream mix
• Continuous ice cream freezer
• Tub filler
• Hot water boiler and air compressor
When considering an appropriate building and equipment it is essential to involve the Environmental Health
Officer (EHO) and Planning and Building Regulations Control at the earliest stages. It is also strongly
recommended that an appropriately qualified and experienced technology consultant be used to progress
planning permission and building regulation approval, and for the preparation of a robust HACCP system.
Note 1: There are many different styles and types of ice cream for example: standard soft scoop, Italian, and
frozen yogurt.
Note 2: This example is based on premium ice cream from quality ingredients and whole milk; different
technologies are used to produce different ice creams.
Specialist advice should be taken from ingredients suppliers, equipment manufacturers, specialist consultants or
organisations such as the Ice Cream Alliance.
3.2 Outline manufacture – Ice Cream
Note: Rigorous hygiene standards must be observed at all stages of the process.
3.2.1 Ingredients addition
Dry ingredients, skimmed milk powder, sugar, stabilisers and emulsifiers, are weighed and added to a measured
volume of milk in the manufacturing tank according to the recipe to produce the base mixture.
Skimmed milk powder is used to increase the total solids content of the milk.
Stabilisers and emulsifiers improve the viscosity and texture of the finished product by binding in water molecules
and assisting emulsification of the mix.
3.2.2 Stirring / heating
The ice cream base mixture is heated to ~ 60 to 70°C while continuously being stirred to dissolve the ingredients.
3.2.3 High shear mixing
A high shear mixer is used to thoroughly blend the mixture.
11
3.2.4 Homogenisation
The mixture is passed through a homogeniser to break the milk fat globules into smaller sizes and aid even
distribution throughout the mix. The correct combination of temperature and homogenisation pressure is
important in helping to determine the consistency of the finished product.
3.2.5 Pasteurisation / cooling
The homogeneous ice cream base mixture is gently agitated during batch pasteurisation at 66°C for minimum
30 minutes or 72°C for minimum 10 minutes then cooled to 7°C within 90 minutes.
3.2.6 Ageing / cooling
The mixture is gently stirred and aged for between four and 12 hours then cooled further to below 5°C.
During the ageing process the fat crystallises and the protein and stabilisers bind water to improve the
consistency of the finished ice cream.
3.2.7 Holding / flavour addition
The incubated ice cream mixture is held and colours, flavours, fruit etc added and mixed as required by the recipe.
3.2.8 Freezing / filling
The mixture is frozen in a continuous ice cream freezer, which whips air into the mixture and disperses the
water content in the form of small ice crystals. The finished ice cream is then filled into tubs or containers,
and lids and labels applied.
3.2.9 Deep-freeze storage
The finished product is transferred to a freezer at -18°C maximum in preparation for despatch and sale.
Product testing for compliance with legal requirements is carried out at this stage.
12
2.3 Ice Cream process flow
Ingredients addition
Milk
Skimmed milk powder
Sugar
Stabilisers
Emulsifiers
Manufacturing tank
Stirring / heating (60 - 70°C)
High shear mixing
Homogenisation
Pasteurisation (eg, 60°C for 30 min)
Cooling (7°C)
Ageing (~4 to 12 hours)
Cooling (below 5°C)
Holding
Colour / flavour addition
Freezing / filling
Note: Different types /
styles of ice cream use
different types of
ingredients and recipe
timings. Please follow
your ingredient suppliers’
recommendations
Lid / label application
Deep-freeze storage / testing
13
3.4 Capital and operating costs
The system for ice cream making was a batch method of maximum capacity 100 litres. A standard recipe was
used for calculation of the ingredients cost using milk, cream, sugar, skimmed milk powder and emulsifier /
stabiliser.
The capital investments required are as follows: (See appendix 2)
• Capital required for equipment, using second-hand equipment
£25,600
• Or alternatively using new equipment
£75,600
• Capital for building premises, 7m x 3m
£16,150
Table 3 - Cost of production of ice cream
Item
Costs per day (pence)
Using reused equipment
Using new equipment
Daily production costs
Processing
404
404
Labour
8000
8000
Ingredients
4903
4903
Equipment
1584
2520
431
431
769
2015
Product delivery
1000
1000
Building repairs
65
65
Buildings
Daily admin and other running costs
Admin and maintenance
Return on capital
321
443
Return on working capital
1454
1565
Product storage
1200
1200
20131
22546
176.6
197.8
12.4
13.4
7.1
7.1
19.5
20.6
3.9
4.1
23.4
24.70
Sub total excluding packaging
Sub total to produce 1 litre
Sub total to produce 70g ice cream
Packaging cost per 70g ice cream
Total cost before profit
Profits at 20%
Ex-farm cost per 70g ice cream
(typical pot size)
Note 1: The costs of various other sizes of packed ice cream can be calculated from Table 3 – Cost of production of ice cream.
For example, 50g of processed and frozen ice cream cost 8.8p and the packaging costs about 5.0p. This makes the total cost
13.8p before profits.
With this particular product the volume of the final ice cream is larger due to incorporation of air. Therefore, a 50g of ice cream
occupies a volume of 100ml at 100% overrun. That means the container size should be approximately 110ml to fill 50g of ice cream.
Note 2: In this illustration the milk cost was 18ppl.
Note 3: These costings are a guide only. The availability and price of equipment will vary depending on the area and time.
14
15
Step Over Bench
Area to remove
outside clothing
and footwear.
Sit on bench
swing legs over
and put dairy
protective
clothing and
footwear on.
Boiler
Mix Tank
Shear
Hand
Wash Sink
Cold Store
Compressor
Drain
Drain
Wash
Sink
Hand
Wash Sink
Drain
Drainer
Air Compressor
Pasteuriser
(Batch)
Drainer
Raw Material Cold Store
4˚C (Ingredients)
Chilled Water Unit
Drain
Raw Material Store
(Ingredients)
Homogoniser
Ageing
Tank
Drain
Drain
Drain
Drainer
Rinse
Sink
Ice Cream
Freezer
Drain
Wash
Sink
Packaging Store
Covered
Unloading Area
Please Note: Not to scale
Always consult your Local Environmental Health Officer (EHO) Planning and Building Regulations at all stages.
Many production sites produce high quality ice cream with a simplified version of the adove.
Chemical Store
Toilet (with hand wash sink)
Protective Clothing
Personal Lockers
Hand
Wash Sink
Covered Unloading Area
Hose
Fig. 3.1
Hose
3.5 Ice cream production area outline plan
Homogoniser
Drain
Drainer
Freezer Store
Compressor Room
FreezerStore -10˚C
Covered loading Area
Section 4 – Pasteurised milk
4.1 Summary of business plan - Milk pasteurisation and bottling
This example of a farm in South Wales shows milk as the dairy product for on-farm production. The farm keeps
about 100 cows and the daily milk yield in the summer is about 3000 litres.
Previously farm milk was sold to a UK milk co-operative for processing. The opportunity was established to sell
pasteurised bottled milk. It was necessary to build a new dairy to facilitate the processing and filling of milk.
An initial production level of about 500 litres per day was considered satisfactory for these calculations.
The equipment considered for this production is as follows:
• Milk reception tank
• Continuous milk pasteuriser at 500l/hr
• Milk separator at 500l/hr
• Homogeniser
• Pasteuriser milk storage tank
• Poly bottle filler
• Chilled store
• Batch cream pasteuriser
• Hot water boiler and air compressor
When considering an appropriate building and equipment it is essential to involve the Environmental Health
Officer (EHO), and Planning and Building Regulations Control at the earliest stages. It is also strongly
recommended that an appropriately qualified and experienced technology consultant be used to progress
planning permission and building regulation approval, and for the preparation of a robust HACCP system.
4.2 Outline manufacture – Pasteurised milk
4.2.1 Pasteurisation / homogenisation / separation
Raw milk is pumped to the pasteuriser balance tank and into the regeneration section of the pasteuriser plate
pack where it is pre-heated to ~ 60 - 65°C.
Whole milk processing:
The milk passes into the heating section of the plate pack where it is subjected to the legally required
temperature / time combination of 71.7°C minimum for 15 seconds. It is then cooled to 5°C and pumped into
a holding tank.
If required, homogenisation of the pre-heated milk takes place prior to the pasteurisation stage.
Homogenisation breaks the milk fat globules into smaller sizes and distributes them evenly throughout the milk
preventing them rising to the top forming a ‘cream’ line.
Skimmed milk processing:
The pre-heated milk at 60 - 65°C exits the pasteuriser plate pack and passes into a separator, which removes
the cream. The cream is transferred to a raw cream storage tank prior to pasteurisation in a dedicated
cream pasteuriser.
16
The skim returns to the heating section of the milk pasteuriser and is subjected to the legally required
temperature / time combination of 71.7°C minimum for 15 seconds. It is then cooled to 5°C and pumped into
a holding tank.
Semi-skimmed milk processing:
The pre-heated milk at 60 - 65°C exits the pasteuriser plate pack and passes into a separator, which removes
the cream. Some of the cream is then blended back with the skimmed milk to provide the required butterfat
content. This ‘standardised’ milk is then pumped to a homogeniser, which breaks up the fat globules into
smaller pieces and distributes them evenly throughout the milk. It is then returned to the heating section of the
milk pasteuriser and is subjected to the legally required temperature / time combination of 71.7°C minimum
for 15 seconds. The semi-skimmed milk is then cooled to 5°C and pumped into a holding tank.
The surplus cream is transferred to a raw cream storage tank prior to pasteurisation in a dedicated cream
pasteuriser.
4.2.2 Filling / capping
The cooled, pasteurised milk in the finished milk holding tank is pumped or gravity fed into a filling machine.
Bottles are filled, capped and have labels and codes applied prior to being crated and transferred to cold
storage at less than 5°C in preparation for despatch and sale. Product testing for compliance with legal
requirements is carried out at this stage.
17
4.3 Pasteurised milk process flow
Raw milk
Pasteuriser plant
Pre-heating (60 - 65°C)
Pasteurisation
(71.7°C for 15 sec.)
Separation
Standardisation
(skim and semi skim)
Cooling
(5°C)
Holding
Homogenisation
(if required)
Surplus cream
Cream pasteurisation
Filling / capping
Cream filling /
capping / label / code
Label / code
Cold store (Below 5°C)
18
4.4 Capital and operating costs – Milk processing and bottling
The production unit in this example uses a continuous plate pasteuriser. A homogeniser is required to produce
homogenised milk. The aim is to produce 500 litres of pasteurised milk per day but the capacity will allow for
doubling the output.
The capital investment required is estimated as follows: (See appendix 3)
• Capital for equipment – using second hand equipment
£27,500
• Or alternatively using new equipment
£53,800
• Capital for building premises, 8m x 3m
£34,800
Table 4 – Cost of production of pasteurised milk
Item
Costs per day (pence)
Using reused equipment
Using new equipment
Daily production costs
Processing
470
470
Labour
4800
4800
Ingredients
8925
8925
Equipment
2200
2690
696
696
718
1138
Product delivery
1000
100
Building repairs
140
140
Return on capital
434
508
Return on working capital
377
644
Product storage
250
250
20010
21261
40.0
42.5
7.8
7.8
47.9
50.4
9.6
10.1
57.5
60.5
Buildings
Daily admin and other running costs
Admin and maintenance
Sub total excluding packaging
Sub total to produce 1 litre
Packaging cost per litre
Total cost before profit
Profits at 20%
Ex-farm cost per litre
Note 1: Other packed sizes can be calculated using the cost of processed milk and adding the packaging cost. For example, cost of
two litres of processed milk is 80p and cost of two-litre poly bottle and cap is bout 10.7p making the total cost of 90.7p before profits.
Note 2: The prevailing milk price used in the example was 18ppl.
Note 3: These costings are only a guide. The availability and price of equipment may vary. Ensure you consult your financial advisor
before proceeding.
19
Hand
Wash Sink
Personal Lockers
Area to remove
outside clothing
and footwear.
Sit on bench
swing legs over
and put dairy
protective
clothing and
footwear on.
Chilled Water Unit
Drain
Air Compressor
Past.
Milk
Tank
Raw
Milk
Tank
Drain
Milk Bottle
Filling
Drain
Hydrogeniser
Seperator
Milk
Pasteuriser
Drain
Drainer
Rinse
Sink
Wash
Sink
Drainer
Cream
Filling
Cream
Batch
Past.
Packaging Store
Covered
Unloading Area
Please Note: Not to scale
Always consult your Local Environmental Health Officer (EHO) Planning and Building Regulations at all stages.
Many production sites produce high quality ice cream with a simplified version of the adove.
Boiler
Toilet (with hand wash sink)
Protective Clothing
Fig. 4.1
4.5. Milk processing area outline plan
Hand
Wash Sink
20
Cold Store
Compressor Room
Cold Store 4˚C
Covered loading Area
Section 5 - Appendices
Appendix 1
Capital items for Yogurt manufacture, 100 litre batch per day
Building premises (7m x 3.5m x 2m high) – cost at £1,250/m2 would be £30,625
Capital for Equipment
£ Second Hand
£ New
4,500
10,300
Separator
1,000
3,500
Walk in chilled store
5,000
7,500
Product Chiller x 2
3,400
5,500
Yogurt pump
850
3,600
Raw milk tank
900
3,500
Compressor (air)
200
600
Hot water boiler
600
800
Dish washer
300
500
1,600
2,300
250
250
18,600
38,350
Batch pasteuriser
Pot sealer
Buckets, jars etc
Total
Appendix 2
Capital items for ice cream manufacture, refurbished premises
(7m x 3m x 2m high) – Refurbishment of floors, walls ceilings and drains £16,150
Capital for Equipment
£ Second Hand
£ New
Jacketed tanks, 100 litres x 2
3,200
15,800
Homogeniser
5,500
18,500
Continuous freezer
2,000
15,000
Pipes, fittings
300
300
Hot water boiler
600
800
Compressor (air)
200
600
5,800
14,200
200
400
7,800
10,000
25,600
75,600
Cup filler
Trays and ancillary items
Large freezer store
Total
21
Appendix 3
Capital items for milk pasteurisation and bottling
Building premises (8m x 3m x 2m high
£
New building, fabric only
19,200
Walls and ceiling
5,100
Epoxy floor
1,800
Electrics
6,000
Wash basin, hygiene equipment
2,700
Total
34,800
Process equipment
Pasteuriser 500 l/h
£ Second-Hand
£ New
2,500
14,000
Balance tank
400
800
Homogeniser
7,800
12,000
Separator
1,000
3,500
Poly bottle filler
8,500
11,900
Pipes, valves, pump
3,500
5,000
Pasteurised milk tank
2,500
4,000
600
800
Hot water boiler
Compressor (air)
200
600
Batch cream pasteuriser
500
1,200
27,500
53,800
Total
22
This booklet and the information within are intended as a guide only. Costs stated are approximate and were felt to be
representative at time of going to press.
Please seek detailed support from your accountant, bank, legal advisor or other specialist support organisations available in pdf
and printed copy format from the DairyCo, formerly the Milk Development Council
Disclaimer: DairyCo seeks to insure that the information contained within this publication is accurate. However, DairyCo shall not
in any event be liable for loss, damage or injury howsoever suffered directly or indirectly in relation to information contained
within this publication, and no liability will be accepted for errors or omissions.
The contents of this publication may not be reproduced in whole or in part without the consent of DairyCo.
23
Trent Lodge
Stroud Road
Cirencester
Gloucestershire
GL7 6JN
T: +44 1285 646500
F: +44 1285 646501
E: [email protected]
www.dairyco.org.uk
December 2008
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