Cheesemaking as a business
In this article, we look in-depth at cheese making as a business, which presents a lucrative avenue for farmers with surplus milk and those involved in livestock production. Moreover, cheese production is also popular among small craft producers, allowing various entrepreneurs to succeed in this business.
Features
First and foremost, it is recommended that a farmer selects 2-3 main types of cheese for production and studies the relevant technologies. Using the same equipment to make different cheeses can significantly reduce initial business development costs.
Cheese Varieties
The production of hard cheese is profitable due to its long shelf life. It has a dense texture and a rich taste that becomes more apparent as it ages from two to thirty-six months. Moreover, hard cheeses are in high demand and command high prices in the market.
Sour milk cheeses, varying in fat content, mature much faster than hard cheeses, allowing producers to sell their products and profit quickly.
Soft cheeses, produced using a technology similar to hard cheeses, are characterized by a short pressing time. Their aging period is one week at maximum, which facilitates quick sales. At the same time, the main drawback of soft cheeses is their short shelf life due to high moisture content.
Blue cheeses are a delicacy for true gourmands and are made from cow or sheep milk, occupying a special place in the market due to their unique taste.
Space and Equipment
Equipping a production facility, whether it’s cheese making at home as a business for a hobby or a large industrial production facility, requires boilers, a good tank, cheese molding tables, and a press. In the fermentation area, devices for starter cultures, automatic ingredient dosing systems, milk supply and heating equipment, and a steam sterilizer are needed. The salting section should include salt pools, pumps for regulating brine supply, and containers for storing the finished product.
Cheese should be stored in a specialized chamber with constant temperature and humidity. It is also necessary to arrange premises for staff and sanitary rooms.
Raw Materials
Fermented milk with lactic acid bacteria or rennet is used to produce cheese. Cow and goat’s milk are mainly utilized, although sheep’s, mare’s, and buffalo’s milk are also suitable. This makes cheesemaking particularly profitable for farmers specializing in cattle breeding.
If a farmer cannot supply their production with raw materials, they can turn to agricultural enterprises that breed cows or goats. It is essential to enter into a cooperation agreement and check the quality of the supplied raw materials.
Business plan if you decide to start cheese making as a business
Investing in expensive equipment constitutes the central part of the expenses. However, thanks to its multifunctionality, it is possible to produce various cheese types. Monthly costs include rent, utility bills, employee salaries, and raw material purchases. Farms with their premises and engaged in cattle breeding have a significant advantage since they do not need to spend money on rent and milk purchases.
Cheese is sold with a markup of 70-85%, while elite types of cheese made from sheep or goat milk can have a markup of over 100%. In the initial years of production, profitability levels can reach 10-15%, but the final figures depend on the business scale.
It is essential to consider that various factors, including seasonality, can affect profitability. The approximate payback period of the project is about one year.
Market Outlets
A business plan should include strategies for distributing products. For a farmer aiming to maximize profit from selling cheese, there are several promising avenues, including:
- Launching an online store: This allows direct sales over the internet by creating a personal website.
- Promoting through social networks: Organic products are in high demand on social networks, with the possibility of delivery through postal services.
- Participating in fairsincreases product recognition, builds image, and attracts new customers. Fairs also offer a unique opportunity to collect contact information from grocery store owners and restaurants.
- Direct sales through physical stores or develop a retail outlet networkto sell products to end consumers.
