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How to Start Yoghurt Business in Kenya

Daisy Neema
Daisy Neema Kenyan SMEs

Yogurt is among the most preferred drinks due to its high nutrition value. As such, starting a yogurt business is a good venture that will earn you good profits. The demand for Yogurt across the country is increasing with each passing day. Unfortunately, the market remains under-served. Yogurt production business offers many opportunities for entrepreneurs. This article will provide you with details on how to start a yogurt business in Kenya.

Learn How to Make Yogurt

If you want to maximize on profits, it is best to make your own yogurt. The first step is to learn how to make yogurt. You can learn from a friend who already knows how to, or enroll in yogurt making classes. Alternatively, there are many websites online where you can get quality content on yogurt preparation. YouTube tutorials on making yogurt can also be very useful. There are many ways through which you can learn. All you need is self-drive and the determination to learn.

Yougurt

Read also: How to start a fast food business in Kenya. 

Identify your Target Market

Every business targets a specific audience. Although anybody can be a customer, you will need to have specific customers that you can count on. This will help you choose a strategic location for your business and also dictate how much yogurt you will be preparing. Your target customers can be passers-by, households, and learning institutions. If you plan to run the yogurt business on large scale, your target market can be hotels, supermarkets, and government institutions.

Choose your Yogurt Business Location

Upon identifying your target market, you’ll be in a better position to choose a business location. Your target market should have easy access to the business premise. Yogurt businesses do well in urban areas. You can also decide to hire a salesperson who will hawk your products along busy roads or even in commuter buses.

Read also: How to start a milk business. 

Invest in Yogurt Making Equipment

You do not need a lot of capital to buy equipment to start your yogurt business. The equipment you buy will depend with how much capital you have. If you are running on a small budget, you can use a firewood kitchen, invest in high-quality saucepans or sufuria, a thermometer, flavors, sugars, a weighing scale, and a milk sieve. You will also need plastic tumblers for packaging. If your budget allows, you can buy a pasteurizer to make milk boiling easier.

How Much Does it Cost to Make Yogurt?

Yogurt business startup capital depends on the size of the business you want to run. A small yogurt business will cost around Ksh 50, 000, while a large one will cost you around Ksh 500, 000. The price breakdown is as follows:

  • Store rent – Ksh 10, 000
  • Business Permit – Ksh 5, 000
  • KEBS certification – Ksh 30, 000
  • Pasteurizer – Ksh 350, 000
  • Food Hygiene Certificate – Ksh 300 per year
  • Food Handling Certificate – Ksh 600 valid for 6 months
  • Branded Tumblers – Ksh 20, 000
  • Other items such as sufuria, thermometer, weighing scale, milk sieve – Ksh 30, 000

Acquire the Necessary Certification and Licenses

It is best to acquire the necessary business licenses and certificates when starting a business in Kenya. This will prevent you from getting into trouble with the authorities. Additionally, you will avoid spending much in terms of paying fines.

  • KEBS Certification. Your yogurt business will require you to get a KEBS certification. This is to show that the products you are producing are of good quality with the recommended packaging. If your products are standard, then it will be easy to get a KEBS certification.
  • Business Permit. Every business in Kenya needs a business permit to operate.
  • Food Handling Certificate. This certificate shows that anyone handling the yogurt making process in your business is free from diseases.
  • Food Hygiene Certificate. A food hygiene certificate will show that the place you intend to work from is hygienic.

Read more: Permits you need to operate a business in Kenya. 

Market your Yogurt Business

If a business is to make profit, people must know that it exists. This means that you will need to invest in marketing and your strategies need to be smart to help you stay on top of the competition if any. You can market your yogurt business by distributing flyers, putting up posters in public places such as parks, social media marketing, etc. Depending on whom your target market is, you will need to find out which marketing strategy works best in terms of reaching many people at the same time.

Read more: Sales and marketing strategies. 

Is Yogurt Business Profitable in Kenya?

Yes. The yogurt business is among the most lucrative businesses in Kenya. If you want to maximize on profits, it is best to source milk directly from the farm. You will buy a liter of raw milk for Ksh 40. You can sell a liter of yogurt for Ksh 200 or Ksh 50 per Tumbler (250ml). If you can sell 1500 liters in a month, you will make Ksh 300, 000. If you deduct all expenses, you can make around Ksh 200, 000 per month. This goes without saying that this business is highly profitable.

Read also: How to start a potato chips business. 

Final Thoughts

Yogurt has a higher nutrition value compared to other drinks like soda and juices. As such, if you are thinking of venturing into a business, consider yogurt making venture. You only need to know how to make yogurt, develop an excellent brand and then market your brand. Ultimately, it is a profitable venture.