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"Yogurt Making Business": How to Get Started

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With the rise of health consciousness among the global population, yogurt has been widely promoted as a healthy snack, increasing the demand all over the world.

Yogurt as a business opportunity can be found in several forms. From opening a yogurt stall, selling as a pre-packaged product, and even supplying to your local restaurants, hotels, bakeries and coffee shops.

Making a yogurt will require a relatively low startup investment and can be started with a relatively low skill and experience requirement, lowering the entry barrier to enter this business.

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Here are a few tips to help you start your yogurt production business.

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1. Startup Investment
You can start this business at home, eliminating the need to rent a space. However, if you are planning to open your own yogurt stall, renting a space will be necessary, and the cost can vary depending on your location. Necessary equipment can include milk tanks and refrigerators. Depending on your scale of operations, you can start this business with as low as $5,000 and up to $40,000.

You will also need to invest in your initial stock of raw materials such as milk, milk powder, sugar, flavoring chemical, coloring chemical, and cultured lactic. You might need to prepare at least another $2,000.

2. Production Process
Many resources are available for the yogurt production process. However, as the basic, yogurt is made by fermenting milk with bacteria mixed with stabilizers and flavoring/coloring chemicals. The type of milk used (full fat, low fat, semi-skimmed) will dictate the type of yogurt produced.

The process won't require a specific skill or vast amount of space, and you can use a spare space in your house.

3. License or Permit
Depending on your location, you might need to apply for a zoning permit. If you are planning to sell your product as a pre-packaged yogurt, you might need a certification from the health department.

The law might also require a liability insurance for a food producing business. Consult your local insurance agents to get the best insurance option for your business.

To get a better information, consult your local authorities regarding necessary licenses and permits.

4. Marketing
Depending on your business model, different marketing strategy might be required. However, in this digital age, any business will benefit from a proper digital marketing strategy like a proper website, social media campaigns, and search engine optimization (SEO).

If you are planning to supply to local restaurants and bakeries, prepare a well-written business proposal to increase your marketability before you approach potential clients.

When opening a yogurt stall, a good location will be an essential value for your business.

Earning Potential

Producing and selling 100 liters of yogurt a day can translate to $31,000 of annual earning. Thus, selling 300 liters a day, which is manageable with a good marketing strategy, can earn you $93.000.

Common profit margin of this business is around 20%-30% after all operational expenses, which is relatively high. Maintaining quality as well as marketing strategy will be the key to success of this business.