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(A Business Plan)

Name of the Enterprise : ODGRA Goat’s Milk Processing Enterprise

Contact Address : Nueva Sociedad, Ormoc City

Telephone Number(s) :

E-mail Address :

Date Prepared :
I. Executive Summary

Name of the Enterprise : ODGRA Goat’s Milk Processing Enterprise

Owners : Ormoc Dairy Goat Raisers’ Association

Nueva Sociedad, Ormoc City

Industry : Dairy

Target Markets : Fresh and Flavored Milk – Pre-Schoolers, Elementary,

High Schoolers and Adults belonging to Market

Segments B and C.

Milk Bars - Pre-Schoolers, Elementary, High School

and Adults across income segments

Cheese - Teenagers and adults in income segments B

and C

Competitors : Other dairy enterprises operating within Ormoc City and

other neighboring municipalities.

Total Project Cost : 176,046.01

II. Introduction and General Background of the Project

A. Project Description

1. Location

The processing plant shall be located in Nueva Sociedad, Ormoc City.

2. Product(s)

At the initial stage of its operation, the goat’s milk processing plant shall produce

plain and flavored fresh milk in varying sizes, milk bars of varying flavors – choco,

melon, among others and white cheese.

3. Competitive Advantage(s):

Goat’s milk, which is the main raw material of the products has the following

competitive advantages:

a. It is easier to digest because it is naturally homogenized and has lower lactose or milk


b. It is high in calcium and fatty acids but low in cholesterol.

c. Its nutrients like iron, calcium, magnesium and phosphorous are more easily digested

and used by the body making it a promising treatment of nutritional deficiencies like

anemia and bone demineralization..

d. Its fatty acids and triglycerides have moisturizing qualities while its high levels of

vitamin A improves complexion, fight acne and improve overall skin health.
B. Objectives

1. To produce safe and healthier dairy products for the Western Leyte Market.

2. To augment the income of the association members and partner-families through

dairy farming and processing.

3. To help develop the dairy industry in Leyte.

III. Marketing Plan

A. Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis

The current status of ODGRA as a registered dairy farmers’ association receiving

technical, financial and organizational support from Heifer, International, National Dairy

Authority and Mag- Uugmad Foundation, makes it capable to embark on a venture like

milk processing. It has already a building and a complete milk processing line complete

with all the basic equipment and utensils as well as vehicles for incoming and outgoing

activities. It has also a set of officers who are dedicated and committed to work on

voluntary basis and processing workers who are skilled to do the job.

With the identified strengths, the association can take advantage of the increasing

demand for healthy products like goat’s milk products which are superior to cow’s and

buffalo’s milk in terms of nutrient contents and digestibility, among others.

The association however, needs to develop the credibility of the products by

subjecting it to nutritional and microbial analyses and to have them registered under the

Bureau of Food and Drugs to assure target market that the product is safe aside from

having superior nutrient content. It also needs to improve the product appearance and

price to be more competitive and for its operations to be sustainable.

The abovementioned improvements are needed for the association to withstand

the threats including Increasing number of competitors, competitors buying price for raw

milk is higher than that of ODGRA, the lack of forage area/limited availability of forage,

climate change which is a threat to the health and milking ability of the animals and

electricity power outage which can increase product spoilage.

Table 1. SWOT Analysis Matrix

Strengths Weaknesses

 Goat’s milk products are superior  Products have no microbial and

in quality compared to existing nutrient analysis yet
competitors  Products have no BFAD
 The association has legal identity registration yet
 Dedicated and committed officers  Less competitive product
 Availability of a complete appearance
processing line for milk products  Product price for fresh milk is
 Availability of vehicles relatively higher
 Highly skilled processing staff  Lack of cooperation from partner
 BIR-registered families
 Lack of working capital
Opportunities Threats

 Trend towards health and wellness  Increasing number of competitors

 Financial Assistance from  Competitors buying price for raw
DBM/BUB milk is higher than that of ODRA
 Technical, organizational and  Lack of forage area/limited forage
financial support from Heifer  Climate change
International, National Dairy  Electricity power outage
Authority and Mag-Uugmad
 Technical support from LGU,
Ormoc City Agriculture Office and
 Availability of raw milk suppliers
from partner families
B. Target Market Description

1. Geographic Location

The elementary and high schools and public offices within Ormoc City are the

geographic market of the products during the initial years of its operation. The association

shall pursue market development and shall enter other geographic markets in Western

Leyte depending on the availability of supply.

2. Primary Target Market

The fresh milk and milk bar products of ODGRA are expected to appeal to the pre-

schooler, elementary, high school and working adults segments. However, in terms of

income segments, the milk bar is expected to penetrate across income group because

of its affordable price. The fresh milk on the other hand is expected to cater only to the

income segments B and C only because of its less affordable price.

The white cheese is also expected to penetrate only the teenagers and adults of

market segments B and C due to price and taste considerations.

Table 2. Target market description

Product Target Market

Fresh Milk (plain and flavored) Pre-Schoolers, Elementary, High School
and Working Adults belonging to Market
Segments B and C.
Milk Bars Pre-Schoolers, Elementary, High School
and Adults across market segments
White cheese Teenagers and Adults belonging to
Market Segments B and C
C. Competition

There are two other dairy cooperatives producing cogw’s and carabao’s milk in

the locality.

D. Demand Projection

Table 3 shows a portion of the annual demand per product that ODGRA projected

to be its market share considering the existence of two other dairy milk processors in the

area. These demand figures constitute only less than 50% of the total projected demand

per product

Table 3. Demand projection for ODGRA goat’s milk products

Variable Fresh Milk Milk Bars White Cheese
Quantity 1-li. bottle – 888 bot 19,200 120,000 pcs
500-ml bottle – 1332
330-ml bottle - 2220
E. Marketing Mix

1. Product

The milk products of ODGRA include fresh milk, milk bars and white cheese. The fresh milk with name “Meelk O’

Fresh shall be offered plain and flavored and shall be available in the market in plastic bottles containing 330 ml., 500 ml.

and 1000 ml., The milk bars named Meelk O’ Bar shall be offered in 50, 100 and 150 grams while the white cheese named

Meelk O’ Cheese shall be available in 150 gram size. Other details about the associations milk products are described in

the table below.

Table 4. ODGRA goat’s milk products’ description

Variable Fresh Milk Milk Bars White Cheese
Product name Meelk O’ Fresh Meelk O’ Bar Meelk O’ Cheese
Uses  - As coffee creamer - snacks/refreshment - as sandwich spread
- As ingredients to various - as ingredients to various
bakery products food preparations
- Beverage
- Ingredients to cosmetic

Ingredients Raw goat’s milk, flavorings Raw goat’s milk, water, Raw goat’s milk, salt.
sugar, flavorings vinegar
Size/Weight 330 ml. , 500 ml. , 1000 ml. 50 grams, 100 grams, 150 100 mg per slice
Packaging Plastic bottles Plastic packaging Plastic packaging
Product Position “Next to mother’s milk.” “Affordable and nutritious” “all-natural milk product”
2. Price

Table 5 shows the pricing considerations for ODGRA’s products. The price per

unit for each product type is based on the cost of production. The table also details the

terms and conditions for products that shall be sold on wholesale basis in identified market


Table 5. ODGRA goat’s milk products pricing

Variable Fresh Milk Milk Bars White Cheese
Price per unit
Basis of pricing Cost of production Cost of production Cost of production
Mode of Retail – cash Retail – cash Retail – Cash
payment Wholesale – on account Wholesale – on Wholesale – on
account account
Terms and Weekly Weekly Weekly

3. Place

The association is considering Ormoc City as its geographic market considering

the proximity of the city to the processing plant and considering the fact that Ormoc is a

big city with many schools and offices where their milk products would have high demand

target market being found in these places. Pasalubong centers in terminals is also

considered as part of the products’ geographic market. Table 6 below details the

description of the places where the association’s products shall be distributed.

Table 6. Description of the place of distribution of ODGRA goat’s milk products

Variable Fresh Milk Milk Bars White Cheese
Geographic Market Schools canteens school canteens Pasalubong centers
and public offices and offices within and offices within
within Ormoc City Ormoc City Ormoc City
Reasons for the Presence of buyers Buyers are Presence of buyers
choice and proximity to the concentrated in few and proximity to the
processing plant places only processing plant
Methods of Delivered Delivered Delivered
Percent distribution School canteen – School canteens – Pasalubong centers
50% 70% – 30%
Public Offices – Offices – Offices –
50% 30% 70%
Frequency of Weekly Offices –every Weekly
delivery other day
School canteens -

4. Promotion

The promotion tools that shall be used include printed materials such as tarpaulins

and flyers. Tarpaulins shall be put in visible areas in the processing plant and in all their

marketing outlets. Flyers shall also be distributed to help educate the target market about

the health benefits of goat’s milk.

Table 7. Promotional tools of ODGRA Goat’s Milk Processing Enterprise

Promotion Tools Details

a. Print Tarpaulin, flyers
b. Audio
c. Audio-visual
d. Others Product tasting, vending, personal selling
IV. Organization and Management

The Ormoc Dairy Goat Raisers’ Association (ODGRA) is composed of about 1000

dairy goat farmers called partner families having a total goat population of 2,250. It is

registered under the Department of Labor and Employment and the Bureau of Internal

Revenue. The farmer families comprising ODGRA shall be organized into People’s

Organizations (POs), with one PO per barangay. There shall be around 15 POs in all,

each of which shall elect one officer to be the representative to the ODGRA General

Assembly. ODGRA is a recipient of technical, organizational and financial assistance from

Heifer International, a non-government organization, the National Dairy Authority and the

Mag-Uugmad Foundation, Incorporated.

The ODGRA shall be the one to manage the Goat’s Milk Processing Enterprise as

shown in Figure 1. The general manager shall oversee both the processing and

marketing activities of the enterprise. Under the general manager shall be a Processing

Incharge, who shall directly supervise the processing activities, and a Marketing Incharge

who shall directly take charge in marketing the finished products. .

The enterprise shall hire people to be assigned in the processing and marketing.

The rst of the positions in the organizational structure shall be occupied by the officers

of ODGRA who shall render their services on a voluntary basis.

General Assembly
Heifer, Int’l

Board of Directors National Dairy


Foundation, Inc.
Treasur er

Education and Audit and Mediation and

Election Committee Conciliation
Training Committee Supervisory
Committe Committee

General Manager


Processing Incharge Marketing Incharge

Processing Workers Marketing Staff

Figure 1. ODGRA Organizational Structure

B. Manpower Requirements

The table below shows the manpower requirements of the milk processing

enterprise of ODGRA. Some of them shall work in the processing on a voluntary basis

while some like the processing workers and marketing staff shall be hired.

Table 8. Manpower requirements of ODGRA Milk Processing Enterprise

Position Number Qualifications Responsibilities

General Manager 1 Should be the same
person as the
General Manager of
Processing 1 Should be Oversee the overall
Incharge knowledgeable in operations of the processing
milk processing plant
Should be one of the Monitor workers
officers of ODGRA Check output
Quality Controller 1 Should be a Food Set quality standards for the
Technology graduate raw materials, ingredients
who has technical and finished products.
expertise on food Check the quality of raw
processing materials, ingredients and
finished products.
Make sure that workers
follow good manufacturing
Marketing Incharge 1 Should be the Establish market linkage
Business Manager of Gather market feedback
the association and recommend marketing
strategies to the BoD
Processing workers 2 Should be skilled in Procurement of raw
food processing materials , ingredients and
Must be willing to supplies
undergo trainings on Actual processing
milk processing operations
Marketing Staff 1 Should have good Accept orders
interpersonal and Deliver products to outlets
communication skills Keep sales records
Collect receivables
Promote the products