I MAKE KSH.4,000 PROFIT PER DAY FROM MILK DISTRIBUTION BUSINESS

 

I MAKE KSH.4,000 PER DAY FROM MILK DISTRIBUTION BUSINESS

I had a talk with Nelson Rotich a few days ago and below is how he makes Ksh.4,000 per day from milk distribution business. 

I am a 33-year-old milk vendor from Bureti Constituency, Kericho County. I transport at least 400 litres of milk every day to my customers in Kisumu County. 

I buy a litre of milk from Siongiroi in Bomet county at Sh.40 and sell it for between Sh.55 and Sh.60. 

On average, after deducting expenses, which include Sh.2,000 for transport to hire a probox to transport the milk to Kisumu, I make about Sh.4,000 in profit. 

I save half of the amount and spend the rest in giving myself and my family comprising my wife and two children, treats.

I began the business as a milk broker. After learning all I could about the business from a milk vendor I used to work for, I decided to venture out on my own in December last year. 

How to Start Milk Distribution Business in Kenya

Milk is one of the essential products in a family. Many people use it to prepare tea, while others take it raw. 

The demand for milk makes the milk business a profitable venture to start in Kenya. 

To succeed in it, it is best that you start it in areas where milk supply is scarce.

Find Milk Business Location

A strategic location for your milk business will play a critical role in the success of your business. 

It is best to start your milk business in shopping centers or major towns where there is a high population. 

A milk business premises should be well lit, ventilated, and have a steady water supply.

You can make more profits by selling milk in areas where it is not readily available. You can start a milk business in Kisumu, Nairobi, North Eastern, Nakuru, Ukambani and Mombasa, where milk is not readily available.

Identify a Reliable Milk Supplier

Finding a reliable milk supplier is important to ensure that you have enough to sell and meet your expenses. 

You can find large-scale dairy farmers who can supply you with milk. Make sure that the milk is fresh and not mixed with water, they are reliable and have favorable prices. 

Finding a milk supplier who sells milk at low prices will help you set fair prices and leave you with a significant profit margin.  

Secure Milk Business Licenses

You must have business licenses and permits to operate a business in Kenya. Among the requirements for a milk business are:

Single Business Permit: It is obtained from county offices. The cost depends on the size of your business and the county in which you want to operate. In Nairobi, for example, you can get the license from City Hall, and it will cost between Ksh.7,000 and Ksh.15,0000.

Public Health Certificate: It ensures that the business adheres to cleanliness and standards of hygiene, especially if you are handling foodstuffs. A county official will visit your business premises to inspect, and if he is satisfied, he will issue you the certificate.

Kenya Dairy Board (KBD) Permit: The license will cost about Ksh.5,000.

Cost of Starting a Milk Distributorship Business in Kenya

Capital is one of the main things to consider before launching any business. The startup costs will depend on the size of your business and the customers you intend to serve.

You need at least Ksh.350,000 to start a wholesale milk business. 

You can start a small milk distribution business with Ksh.100,000 and expand it over time. 

The following is the startup cost breakdown for a medium-milk business:

*Business rent - Ksh.15, 000 

*Business Licensing - Ksh.20,000

*Renovation and branding - Ksh.10,000

*Milk pasteurizer machine - Ksh.250,000

*Stock - Ksh.15,000

*Marketing - Ksh.20,000

Brand your Milk Business

After identifying an ideal business location and a business premise, you will need to renovate the room by installing shelves and counters. 

Branding your business premises will help make it visible to potential customers.

Launch your Milk Distribution Business

When everything is in place, you can start your milk business. It is important to maintain high standards of hygiene to avoid milk contamination. 

Offering exceptional customer service will help to retain your customers and bring more customers to your business.

Marketing your Milk Business

After dealing with the basics of starting a milk business, it is time to market the business. You can never make profits if people do not know that your business exists. 

You can distribute flyers, pamphlets, and brochures to passersby or stick them in public places.

Alternatively, you can market your business on social media or create a website. 

This way, you will reach many people at the same time. 

Another perfect way to market your business is by offering exceptional customer service. Your customers will definitely recommend your milk to their friends and family.

Is the Milk Distributorship Business Profitable in Kenya?

Yes. Surveys shows that the average profit you can make per day from a milk business is between Ksh.5,000 and Ksh.10,000.

Unpasteurized milk costs Ksh.40 per litre. You can then pasteurize the milk and sell it for Ksh.60 or 90 per litre depending on your location. 

If you buy and sell 200 litres of milk per day, you will make Ksh.14,000. This makes a profit of ksh.6,000 per day.

On the other hand, you can decide to buy pasteurized milk for Ksh.50 per litre. If you buy 200 litres in a day and sell each liter for Ksh.60 to Ksh.90, you will make Ksh.14,000. This generates a profit of Ksh.5,000 per day. 

Therefore, the milk business is a profitable venture. 

Summary

Although the milk business is naturally lucrative, you will need to go the extra mile. 

Offer excellent customer service and always ensure that you maintain high standards of cleanliness and hygiene. 

Employing smart marketing strategies will keep you ahead of the competitors. 

It is that easy to start a milk distribution business in Kenya.

As we always tell you, there’s no marathon race that has ever been won by those who did not start the race. 

If you like the idea discussed above and you have what it takes to actualize it…then don’t wait to start…just do it.