Yogurt / Ice cream / Pasteurised Milk a beginners guide to processing

Published in association with the Society of Dairy Technology

Contents
Introduction and market overview Section 1 - Technical requirements Section 2 - Yogurt 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 3.1. Summary of business plan for Ice Cream 3.2. Outline manufacture Ice Cream 3.3. Ice Cream process flow 3.4. Capital and operating costs 3.5. Ice Cream production area outline plan Section 4 Pasteurised milk 4.1. Summary of business plan for Pasteurised milk 4.2. Outline manufacture - Pasteurised milk 4.3. Pasteurised milk process flow 4.4. Capital and operating costs 4.5. Milk processing area outline plan Section 5 Appendices 3 4 6 6 6 8 9 10 11 11 11 13 14 15 16 16 16 18 19 20 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 beginners 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

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.

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.

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 Raw milk contamination by harmful bacteria / other substances. Source / Cause Poor animal husbandry (eg, animal disease, udder infections). Milk from treated animals not segregated. Contaminated animal feed. Control / Evidence 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. Pasteurisation records. Calibration certificates. Plant and equipment cleaning and inspection records. Laboratory results. Operator training records. Hygiene training records.

Growth of harmful bacteria in milk after pasteurisation.

Inadequate pasteurisation. Post pasteurisation contamination. Dirty plant and equipment. Poor manufacturing practice. Poor personal hygiene.

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)

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.

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 70C 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 90C for 10 - 15 minutes then cooled to 35C. 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 - 15C 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 4C ready for despatch and sale. Product testing for compliance with legal requirements is carried out at this stage.

2.3 Yogurt process flow

Ingredients addition Milk Skimmed milk powder Sugar Stabilisers Emulsifiers

Manufacturing tank

Stirring / heating (60 - 70C)

High shear mixing

Homogenisation

Pasteurisation (90C for 10 - 15 min)

Cooling (35C) Culture addition Incubation

Cooling (~10 - 15C) Colour / flavour addition Filling / lid label application

Cooling (below 4C)

Storage / testing

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 Or alternatively use all new equipment Building premises, 7m x 3.5m food process area Table 2.1 Cost of production of organic yogurt Costs per day (pence) Using reused equipment 234 3000 3077 1488 490 540 1000 123 297 571 250 11070 110.7 55.4 14.2 69.6 13.9 83.5 18,600 38,350 30,625

Item Daily production costs 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

Using new equipment 234 3000 3077 2192 490 602 1000 123 329 663 250 11960 119.6 59.8 14.2 74.0 14.8 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.

2.5 Yogurt production area outline plan

Personal Lockers

Hose

Protective Clothing

Shear Mix Tank Pasteuriser (Batch) Incubation Tank (Optional)

Hose

Toilet (with hand wash sink)

Homogoniser

10
Covered loading Area Raw Material Store (Ingredients) Packaging Store Drainer Wash Sink Drainer Drainer Rinse Sink Hand Wash Sink Wash Sink Rinse Sink Drainer Cold Store 4C Yogurt Additions Area Drain Drain Drain Drain Drain Drain Drain Drain Drain Incubation Tank (Optional) Filling Machine Chilled Water Unit Air Compressor Cold Store Compressor Room

Fig. 2.1

Covered Unloading Area

Hand Wash Sink

Area to remove outside clothing and footwear. Sit on bench swing legs over and put dairy protective clothing and footwear on.

Hand Wash Sink

Step Over Bench

Chemical Store

Boiler

Please Note: Not to Scale Always consult the Local Environmental Health Officer (EHO) and Planning and Building Regulations departments at all stages.

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 70C 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.

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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 66C for minimum 30 minutes or 72C for minimum 10 minutes then cooled to 7C 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 5C. 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 -18C maximum in preparation for despatch and sale. Product testing for compliance with legal requirements is carried out at this stage.

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2.3 Ice Cream process flow

Ingredients addition Milk Skimmed milk powder Sugar Stabilisers Emulsifiers

Manufacturing tank

Stirring / heating (60 - 70C)

High shear mixing

Homogenisation

Pasteurisation (eg, 60C for 30 min)

Cooling (7C)

Ageing (~4 to 12 hours)

Cooling (below 5C)

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

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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) Capital required for equipment, using second-hand equipment Or alternatively using new equipment Capital for building premises, 7m x 3m Table 3 - Cost of production of ice cream Costs per day (pence) Using reused equipment Using new equipment 404 8000 4903 1584 431 769 1000 65 321 1454 1200 20131 176.6 12.4 7.1 19.5 3.9 23.4 404 8000 4903 2520 431 2015 1000 65 443 1565 1200 22546 197.8 13.4 7.1 20.6 4.1 24.70 25,600 75,600 16,150

Item Daily production costs 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 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.

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3.5 Ice cream production area outline plan

Fig. 3.1

Covered Unloading Area Cold Store Compressor Raw Material Cold Store 4C (Ingredients) Packaging Store Covered loading Area

Covered Unloading Area

Hand Wash Sink

Raw Material Store (Ingredients)

Personal Lockers

Area to remove outside clothing and footwear. Sit on bench swing legs over and put dairy protective clothing and footwear on. Drainer Wash Sink Drainer Drainer Hand Wash Sink Wash Sink Rinse Sink Drainer

Hand Wash Sink

Step Over Bench FreezerStore -10C

Drain Hose Hose

Protective Clothing

Drain

Drain

Drain

Drain

Drain

Drain

Drain

Drain

Shear Mix Tank Pasteuriser (Batch) Ageing Tank

Toilet (with hand wash sink)

Homogoniser

Homogoniser

Ice Cream Freezer

Chemical Store

Boiler

Chilled Water Unit

Air Compressor

Freezer Store Compressor Room

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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.

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 - 65C. 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 71.7C minimum for 15 seconds. It is then cooled to 5C 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 - 65C 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.

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The skim returns to the heating section of the milk pasteuriser and is subjected to the legally required temperature / time combination of 71.7C minimum for 15 seconds. It is then cooled to 5C and pumped into a holding tank. Semi-skimmed milk processing: The pre-heated milk at 60 - 65C 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 71.7C minimum for 15 seconds. The semi-skimmed milk is then cooled to 5C 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 5C in preparation for despatch and sale. Product testing for compliance with legal requirements is carried out at this stage.

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4.3 Pasteurised milk process flow

Raw milk

Pasteuriser plant Pre-heating (60 - 65C) Pasteurisation (71.7C for 15 sec.) Cooling (5C)

Separation

Holding

Standardisation (skim and semi skim)

Homogenisation (if required)

Surplus cream

Cream pasteurisation

Filling / capping

Cream filling / capping / label / code

Label / code

Cold store (Below 5C)

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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 Or alternatively using new equipment Capital for building premises, 8m x 3m Table 4 Cost of production of pasteurised milk Costs per day (pence) Using reused equipment Using new equipment 470 4800 8925 2200 696 718 1000 140 434 377 250 20010 40.0 7.8 47.9 9.6 57.5 470 4800 8925 2690 696 1138 100 140 508 644 250 21261 42.5 7.8 50.4 10.1 60.5 27,500 53,800 34,800

Item Daily production costs 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 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.

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4.5. Milk processing area outline plan

Personal Lockers

Protective Clothing

Hand Wash Sink

20
Covered Unloading Area Covered loading Area
Drainer

Fig. 4.1

Hand Wash Sink Raw Milk Tank

Wash Sink

Milk Pasteuriser Packaging Store

Area to remove outside clothing and footwear. Sit on bench swing legs over and put dairy protective clothing and footwear on. Seperator
Rinse Sink

Hydrogeniser
Drainer

Cold Store 4C

Drain

Drain

Drain

Drain

Toilet (with hand wash sink)

Past. Milk Tank Milk Bottle Filling Cream Filling

Cream Batch Past.

Boiler

Chilled Water Unit

Air Compressor

Cold Store Compressor Room

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.

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 Batch pasteuriser Separator Walk in chilled store Product Chiller x 2 Yogurt pump Raw milk tank Compressor (air) Hot water boiler Dish washer Pot sealer Buckets, jars etc Total 4,500 1,000 5,000 3,400 850 900 200 600 300 1,600 250 18,600 New 10,300 3,500 7,500 5,500 3,600 3,500 600 800 500 2,300 250 38,350

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 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 3,200 5,500 2,000 300 600 200 5,800 200 7,800 25,600 New 15,800 18,500 15,000 300 800 600 14,200 400 10,000 75,600

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Appendix 3
Capital items for milk pasteurisation and bottling Building premises (8m x 3m x 2m high New building, fabric only Walls and ceiling Epoxy floor Electrics Wash basin, hygiene equipment Total Process equipment Second-Hand Pasteuriser 500 l/h Balance tank Homogeniser Separator Poly bottle filler Pipes, valves, pump Pasteurised milk tank Hot water boiler Compressor (air) Batch cream pasteuriser Total 2,500 400 7,800 1,000 8,500 3,500 2,500 600 200 500 27,500 New 14,000 800 12,000 3,500 11,900 5,000 4,000 800 600 1,200 53,800 19,200 5,100 1,800 6,000 2,700 34,800

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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.

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Trent Lodge Stroud Road Cirencester Gloucestershire GL7 6JN T: +44 1285 646500 F: +44 1285 646501 E: info@dairyco.org.uk www.dairyco.org.uk December 2008