Yoghurt - Ice Cream - Pasturized Milk

TELESAT INTERNATIONAL

Yogurt / Ice cream /Pasteurised Milk

Realistic Value Addition

Maalik Fahd Kayondo

7/9/2013

This project is focusing on setting up an on – farm value addition chain to enhance productivity from the daily

milk produced. The Project will use the produced milk to make Yoghurt, Ice Cream and Pasteurized Milk

Telesat International Burton Street, Platinum House, 2nd Floor, Room B.3. Tel: 0392 945 667

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Contents

Introduction and market overview 3

Section 1 - Technical requirements 4

Section 2 - Yogurt 5

2.1. Summary of business plan for Yogurt

2.2. Outline manufacture – Stirred Yogurt

2.3. Yogurt process flow

2.4. Capital and operating costs

2.5. Yogurt production area outline plan

Section 3 - Ice Cream 10

3.1. Summary of business plan for Ice Cream

3.2. Outline manufacture – Ice Cream

3.3. Ice Cream process flow


3.5. Ice Cream production area outline plan

Section 4 – Pasteurised milk 14

4.1. Summary of business plan for Pasteurised milk

4.2. Outline manufacture - Pasteurised milk

4.3. Pasteurised milk process flow


4.5. Milk processing area outline plan

Section 5 – Appendices 18

This information is intended as a guide only. Please seek detailed support from your accountant, bank, legal advisor or other specialist support organisations.

Telesat International has developed a comprehensive guide detailing information on where to source products, training and knowledge for Innovation.


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Introduction and Market Overview

This briefing 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.

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.

It is not easy to acquire certified statistics about Uganda liquid milk market share distribution but on the face of it, we

can see that the market is generally getting split with the increasingly growing demand for value added products such as

semi skimmed, whole milk and skimmed milk. In urban areas, doorstep sales continue to decline unless being

specifically developed as more of a ‘service’.

World over, branded milks are still a large opportunity but must have a genuine unique selling point (USP) and not just a

label. ‘Added value’ specialty milks such as milk enriched with Omega 3 remain a significant opportunity and growth

sector.

Yogurt / Ice Cream and Pasteurized 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 briefing aims to provide a realistic guide to minimizing 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 some brands such as Fido Dido.


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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 decided 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. 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 There are a number of useful sources for HACCP and good manufacturing process guides you can find in Kyambogo and Makerere University Library or at Uganda Industrial Research Institute (UIRI).


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Section 2 - Yogurt

2.1 Summary of business plan for Yogurt – Imaginary Case Study We assume that, we have an ‘on farm’ operation that keeps about 100 cows, producing around 3000 litres of milk per day. From the milk produced, we can establish a clotted cream business but since this will leave us with a lot of skimmed milk, we shall put up a Yoghurt production line. The Yoghurt production facility can be set to work for three to four days per week with a maximum capacity of 100 litres per batch. The number of batches produced per day will depend on the market size and demand.

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 With the above requirements, when considering an appropriate building and equipment it is essential to involve the Environmental Health Officer (EHO) at the earliest stages. It is also strongly recommended that an appropriate qualified and experienced technology Consultant be used for the preparation of a robust HACCP system. Waste Disposal 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 of or all

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, stabilizers 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 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.


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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.


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Manufacturing Tank

Stirring/ Heating (60 – 700C

High Shear Mixing

Homogenization

Pasteurization (900C for 10 – 15 Min)

Cooling (350C)

Incubation

Cooling (~10 150C)

Filling/ lid label application

Cooling (below 40C)

Ingredients Addition:

Milk

Skimmed milk powder

Sugar

Stabilizers & Emulsifiers

Culture Addition

Storage/ Testing

2.3 Yogurt process flow


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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. We assume that the farm shall be a registered Organic Milk Production Farm though it may turn up to be the first of its kind in Uganda.

The capital investment required for start-up of on-farm production is as follows: (See appendix 1)

• New equipment ……………………..

• Building premises, 7m x 3.5m food process area ………………………

Table 2.1 – Considerations for Costing Organic Yogurt Project

Note 1: Capital costs for equipment (new and second-hand) will depend on availability. Note 2: The prevailing milk price in this illustration is put at…………… 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 ………… from the above table. The cost of plastic container and foil lid would be about ………………….. Therefore, the total cost before profit would be ………………………….. Note 4: No two enterprises will be able to cost products similarly. Producers will need to carry out their own detailed costing.

Item

Daily Production Costs:

Running Costs ce) Using new equipment Item Used Equip NNew Equip

Processing

Labour

Ingredients

Equipment

Buildings

Daily admin and other running costs

Admin and maintenance

Product delivery

Building repairs

Return on capital

Return on working capital

Product storage

Sub total excluding packaging

Sub total to produce 1 litre

Sub total to produce 500ml

Packaging cost per 500ml

Total cost before profit

Profits at 20%

Ex-farm cost per 500ml


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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 with a daily production capacity of 100 litres using by means of 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 Homogenizer 100 litre jacketed tank for cooling and storage of ice cream mix Continuous ice cream freezer Tub filler Hot water boiler and air compressor

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 and specialist consultants.

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.

3.2.4 Homogenisation

The mixture is passed through a homogenizer to break the milk fat globules into smaller sizes and aid even distribution throughout the mix. The correct combination of temperature and homogenization 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 pasteurization 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 crystallizes and the protein and stabilizers bind water to improve the consistency of the finished ice cream.


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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 dispatch and sale. Product testing for

compliance with legal requirements is carried out at this stage.


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Deep Freeze Storage/ Testing

Manufacturing Tank

Stirring & Heating (60 – 700C)

High Shear Mixing

Homogenization

Pasteurization e.g. (60°C for 30 min)

Cooling (70C)

Aging (4 – 6hrs)

Cooling below 50C

Holding

Freezing/ Filling

Lid/ Label Application

Ingredients Addition:

Milk

Skimmed milk

powder

Sugar

Stabilisers

Emulsifiers

Colour/ Flavor Addition

2.3 Ice Cream process flow

Note: Different types / styles of ice cream use different types of ingredients and recipe timings. Please follow your ingredient suppliers’ recommendations


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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)

• Or alternatively using new equipment ……………………………

• Capital for building premises, 7m x 3m ……………………………

Table 3 – Considerations for Costing Ice cream

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 ……………….. and the packaging costs about ……………... This

makes the total cost ………………… 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 ……………………………..

Note 3: These costings are a guide only. The availability and price of equipment will vary depending on the area and

time.

Item

Daily production costs

Costs per day Using reused equipment

(pence) Using new equipment

Processing

Labour

Ingredients

Equipment

Buildings



Product delivery

Building repairs

Return on capital


Product storage



Sub total to produce 70g ice cream

Packaging cost per 70g ice cream


Profits at 20%

Ex-farm cost per 70g ice cream

(typical pot size)


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Section 4 – Pasteurised milk

4.1 Summary of business plan - Milk pasteurisation and bottling

Assuming that the for a start, the initial production level will be about 500 litres per day. This can be 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

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. The skim returns to the heating section of the milk pasteurizer 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, pasteurized 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 dispatch and sale. Product testing for compliance with legal requirements is carried out at this stage.


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Pasteuriser plant

Pasteurisation

(71.7°C for 15 sec.)

Standardisation

(skim and semi skim)

Homogenisation

(if required)

Cooling (5°C)

Raw Milk

Separation Holding

Surplus Cream

Cream Pasteurization

Cold Store (Below 50C)

Filling / capping

Cream Filling/

Capping/ Label/ Code

Label / code

Pre-heating (60 - 65°C)

4.3 Pasteurised milk process flow

Homogenisation (if required)

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)

• New equipment UgX ………………………………

• Capital for building premises, 8m x 3m UgX ……………………………..


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Table 4 – Considerations for Costing Pasteurised Milk

Note 1: Other packed sizes can be calculated using the cost of processed milk and adding the packaging cost. For

example, cost per litre of processed milk is UgX ……………. and cost of one-litre poly bottle and cap is bout

UgX ………… making the total cost of UgX ……………. before profits.

Note 2: The prevailing milk price used in the example is UgX ………………………………...

Note 3: This costing is only a guide. The availability and price of equipment may vary. Ensure you make enough

consultation before proceeding.

Daily production costs

Costs per day Using reused equipment

Costs per day Using new equipment

Processing Labour

Ingredients

Equipment

Buildings



Product delivery

Building repairs

Return on capital


Product storage



Packaging cost per litre


Profits at 20%

Ex-farm cost per litre


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Section 5 - Appendices

Appendix 1

Capital items for Yogurt manufacture, 100 litre batch per day

Building premises (7m x 3.5m) – we assume that you can set up this space at home to avoid rental costs.

Capital for Equipment

Appendix 2

Capital items for ice cream manufacture, refurbished premises

(7m x 3m) – you can creat this space at home to avoid rental fees

Capital for Equipment

Batch pasteuriser

Separator

Walk in chilled store

Product Chiller x 2

Yogurt pump

Raw milk tank (SS)

Compressor (air)

Hot water boiler

Dish washer

Pot sealer

Buckets, jars etc

Total

Jacketed tanks, 100 litres x 2

Homogeniser

Continuous freezer

Pipes, fittings

Hot water boiler

Compressor (air)

Cup filler

Trays and ancillary items

Large freezer store

Total


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Appendix 3

Capital items for milk pasteurisation and bottling

Building premises (8m x 3m x 2m high

Process equipment

This booklet and the information within are intended as a guide only. You will need to make further checks before you kick off the project. Telesat International will be happy to take a lead in the establishment of this project.

Address:

Telesat International,

Burton Street, Platinum House, 2nd Floor, Room B.3

Tel: 0312 288 120/ 0392 945 667/ 0703 056 058

E Mail: [email protected]

Website: www.telesatinternational.net

Pasteuriser 500 l/h

Second-Hand

New

Balance tank

Homogeniser

Separator

Poly bottle filler

Pipes, valves, pump

Pasteurised milk tank

Hot water boiler

Compressor (air)

Batch cream pasteuriser

Total

mailto:[email protected]

http://www.telesatinternational.net/

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Yoghurt - Ice Cream - Pasturized Milk

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