#### Until 2020, there was only a small fresh milk production by Moo Moo Farms in Cambodia.

Prior to the Khmer Rouge, Cambodia was the largest Milk exporter in SE Asia due to a strong presence by Nestle’ company.

**Now Kirisu farm dominates the market** with 800 head of Frieisian Holsten and looks very successful.

So there are 2 suppliers we can use, if both fail, the fermented products can be made with powdered milk.

#### Dairies are always trying to cope with naturally fluctuating yield, thus there is normally surplus to wholesale.

The challenge is to stabilize the product at a low cost in order to deliver to market with an acceptable shelf life.

This is the opportunity for us. We pasteurize, ferment, refrigerate, freeze and distribute.

##### Kirisu offers us raw milk at $1/liter. We have to pick it up at farm gate.

Raw milk has lactobacillus and other bacteria that will sour the milk even when refrigerated within 2 days.

In operation, we would pick up the milk as soon as possible after it is stored by Kirisu and process it to selected product state.

Product line can include pasteurised milk, kefir drinking yoghurt, plain or fruit Greek yoghurt, “cream cheese” and flavored dips/spreads, Soft serve frozen yoghurt, and hard frozen greek yoghurt.

Of all these products, Frozen yoghurt is by far the most flexible as a retail item- also amenable to cloning out to franchisees in a mobile unit. Soft serve portions are 80 grams giving you an ingredient cost below $0.15 per serve. Frozen yoghurt only contains yoghurt, sugar and fruit. Unlike ice cream, it requires no cooking and the live probiotics are retained. **Franchisees would need to keep returning to us** for the yoghurt. Machines are in stock PP about $1600

#### Location of Kirisu farm is 30 km from Phnom Penh

This location is **immediately adjacent to a very popular day trip destination for Phnom Penh families**– Phnom Tamao Zoo.

Kirisu farms has no retail or tourist facilities on site, so **we could take advantage of their brand to strengthen our own **by reselling their existing lines along with our own non competing lines.

A high visibility location near the turn off from NR2 would afford us low cost access to supplies, retail exposure from buses and self drive, Brand marketing opportuniy to lock in subsequent sales and a good manufacturing location to begin our distribution into southern parts of PP. It appears from the photos available from this year that suitable rental stock may be available near the road intersection of NR2

##### 1 Liter of milk weighs abt 1 kg. Kefir, yoghurt and standard yoghurt yields about 1 kg ( 1 liter ), Greek yoghurt 800 grams, Cream cheese, labneh 600 grams, Soft cheeses about 400 grams or less.

#### Some retail price comps from Granny’s Kitchen

Kefir retail $8/liter ingredient cost $1/liter

Greek yoghurt retail $14/kg ingredient cost $1.20

Standard yoghurt retail $8/kg ingredient cost $1

Frozen yoghurt retail 80 gram portion at $1 $12.50/kg ingredient cost $1.50/kg

Plain milk 1 L Kirisu $2.20 ingredient cost $1

Cream cheese/labneh/quark retail $14/kg ingredient cost $1.50

Soft cheeses ( aged at least 5 weeks, med labor intensive brie, camembert ) retail $32-40/kg ingredient cost $6

#### Energy costs

The cost of refrigerating 100 kg of product in a cold room environment from a starting temperature of 40 degrees Celsius to 8 degrees Celsius within a 2-hour period, we need to determine the energy required for this cooling process and then multiply it by the cost of electricity.

The formula for calculating the cost remains consistent:

Cost = Energy Consumption (kWh) x Cost per kWh

To find the energy consumption, we must consider the cooling capacity of the refrigeration system (typically measured in kilowatts, kW), the time it takes to cool the product (2 hours), and the temperature difference (delta T) between the starting and target temperatures.

Assuming a cooling capacity of 1 kW (for illustrative purposes), a temperature difference (delta T) of 40 – 8 = 32 degrees Celsius, and a cooling time of 2 hours, the energy consumption can be calculated as follows:

Energy Consumption = Cooling Capacity (kW) x Time (hours) x Temperature Difference (delta T) Energy Consumption = 1 kW x 2 hours x 32°C = 64 kWh

Given the electricity cost of $0.25 per kWh, the total cost to refrigerate the 100 kg of product within 2 hours would be:

Cost = Energy Consumption (kWh) x Cost per kWh = 64 kWh x $0.25/kWh = $16.00

A 2.5 KW system halves these costs.

##### Use of a purpose built dedicated cooler

You can get combination pasteurize, culture, refrigerate appliances under $4k .

the cost of refrigerating 100 liters of product from a starting temperature of 38 degrees Celsius to a finished temperature of 9 degrees Celsius, with a run time of 3 hours at an electricity cost of $0.25 per kWh, we need to determine the energy consumption of the refrigeration unit and then calculate the cost based on the electricity cost.

From the provided specifications, we know that the Bulk Milk Cooler has a cooling capacity of 11200 Btu/hr (British thermal units per hour) and a power consumption of 3.5 kW.

- Convert the cooling capacity to watts: Cooling capacity = 11200 Btu/hr = 3278.8236 watts
- Calculate the total energy consumption during the 3-hour run time: Energy consumption = Power × Time Energy consumption = 3.5 kW × 3 hours = 10.5 kWh
- Calculate the cost of energy consumption: Cost = Energy consumption × Cost per kWh Cost = 10.5 kWh × $0.25/kWh = $2.625

Therefore, the cost to refrigerate 100 liters of product from 38°C to 9°C with a run time of 3 hours using the Bulk Milk Cooler would be approximately $2.63

##### Holding temps

**In a coldroom 2.5 KW:**

the cost per day to refrigerate 100 kg of product in a 2.5 kW cold room at an electricity cost of $0.25 per kWh, we need to determine the energy consumption of the cold room and then calculate the daily cost.

First, let’s calculate the energy consumption:

Energy Consumption = Power (kW) x Time (hours) Energy Consumption = 2.5 kW x 24 hours = 60 kWh

Now, we can calculate the daily cost:

Cost per Day = Energy Consumption (kWh) x Cost per kWh Cost per Day = 60 kWh x $0.25/kWh = $15.00

Therefore, **it would cost approximately $15.00 per day to refrigerate 100 kg of product** in a 2.5 kW cold room at an electricity cost of $0.25 per kWh.

Interestingly- **the cost is identical for 1000 or 100 kg**

the cost per day to refrigerate 1000 kg of product in a 2.5 kW cold room at an electricity cost of $0.25 per kWh, we can follow a similar calculation as before:

First, let’s calculate the energy consumption:

Energy Consumption = Power (kW) x Time (hours) Energy Consumption = 2.5 kW x 24 hours = 60 kWh

Now, we can calculate the daily cost:

Cost per Day = Energy Consumption (kWh) x Cost per kWh Cost per Day = 60 kWh x $0.25/kWh = $15.00

Therefore, **it would cost approximately $15.00 per day to refrigerate 1000 kg of product** in a 2.5 kW cold room at an electricity cost of $0.25 per kWh.

**In a commercial refrigerator:**

- the daily cost of refrigerating 100 kg of product at 8 degrees Celsius in a commercial refrigerator, you can follow these steps:
- Find the energy consumption of the commercial refrigerator: Consult the manufacturer’s specifications or energy label to determine the refrigerator’s energy consumption in kWh.
- Calculate the daily cost: Multiply the energy consumption by the cost per kWh. For example, if the refrigerator consumes 10 kWh per day and the electricity cost is $0.25/kWh, the daily cost would be 10 kWh/day x $0.25/kWh = $2.50 per day.
- Estimate the monthly cost: Multiply the daily cost by the number of days in a month. Using 30 days as an approximation, the monthly cost would be $2.50/day x 30 days = $75 per month.
- Calculate the annual cost: Multiply the daily cost by 365 days to estimate the annual cost. In this case, it would be $2.50/day x 365 days = $912.50 per year.

#### Pasteurizaton Energy costs

the cost of heating 100 liters of milk from 8 degrees Celsius to 90 degrees Celsius in a 100-liter dairy pasteurizer with an electricity cost of $0.25 per unit, you need to consider the energy required and then calculate the cost based on the electricity rate.

The energy required to heat a substance can be calculated using the specific heat capacity formula: Q = m * c * ΔT, where:

- Q is the energy (in joules) required to heat the milk,
- m is the mass of the milk (in kilograms),
- c is the specific heat capacity of milk (approximately 3.93 J/g°C), and
- ΔT is the temperature change (in degrees Celsius).

In this case, you want to heat 100 liters of milk, which is equivalent to 100,000 grams (since 1 liter of water has a mass of 1,000 grams). The temperature change is from 8°C to 90°C.

Using the formula: Q = 100,000 g * 3.93 J/g°C * (90°C – 8°C)

Q ≈ 100,000 g * 3.93 J/g°C * 82°C ≈ 32,349,600 J

To convert joules to kilowatt-hours (kWh), divide by 3,600,000 (since 1 kWh = 3,600,000 J): Q ≈ 32,349,600 J / 3,600,000 ≈ 8.986 kWh

Now, calculate the cost: Cost = Energy (kWh) * Electricity Cost per kWh Cost = 8.986 kWh * $0.25/kWh ≈ $2.25

Therefore, it would cost approximately $2.25 to heat 100 liters of milk from 8 degrees Celsius to 90 degrees Celsius in a 100-liter dairy pasteurizer with an electricity cost of $0.25 per unit.

##### Culturing energy costs

the cost of holding 100 liters of milk at 40 degrees Celsius in an ambient environment of 30 degrees for 8 hours in a 100-liter dairy cheese kettle with an electricity cost of $0.25 per unit, you need to consider the heat loss and energy consumption during the holding period.

The heat loss during the holding process can be approximated using the formula: Q = m * c * ΔT, where:

- Q is the heat loss (in joules),
- m is the mass of the milk (in kilograms),
- c is the specific heat capacity of milk (approximately 3.93 J/g°C), and
- ΔT is the temperature difference between the milk temperature and the ambient temperature.

In this case, the milk temperature is 40°C, the ambient temperature is 30°C, and the holding period is 8 hours. The mass of 100 liters of milk is 100,000 grams.

Using the formula: Q = 100,000 g * 3.93 J/g°C * (40°C – 30°C)

Q ≈ 100,000 g * 3.93 J/g°C * 10°C ≈ 3,930,000 J

To convert joules to kilowatt-hours (kWh), divide by 3,600,000 (since 1 kWh = 3,600,000 J): Q ≈ 3,930,000 J / 3,600,000 ≈ 1.0925 kWh

Now, calculate the cost: Cost = Energy (kWh) * Electricity Cost per kWh Cost = 1.0925 kWh * $0.25/kWh ≈ $0.273

Therefore, **it would cost approximately $0.273 to hold 100 liters of milk at 40 degrees Celsius** in an ambient environment of 30 degrees for 8 hours in a 100-liter dairy cheese kettle with an electricity cost of $0.25 per unit.

Haha!

#### Rent

Notional/budget value $600

#### Plant Capital Expenditure

Pasteurization, culture, pack, refrigerate, frozen yoghurt machine, refrigerators, drainage colanders, cheese bags.

Hot water system, instant, stainless work tables.

Arbitrary yet informed budget target $8000.

#### Consumables

Packaging, cleaning products

$400 pcm ???

#### Transport

3wheel reefer back $ 4000?

#### Retail fit out with signage

$2k

Staff salaries

James $1600 pcm

Staff marketing/driver $400 plus commish

Helper/retail $300

#### Profit point

Figures for monthly expenses total $3k

We can define an average profit of $5/kg for the purpose of this estimate. Break even is at 600 kg or 5 days production at this 100 liter a day micro capacity model. If we produce 20 days each month, we can expect a gross profit around $10k

As we identify non performing lines, we can explore more elaborate products

These are from Kampot