Flavoured milk – A contender

for value addition

Gokhale AJ, Jarita Mallik, Patel Amit M

Dairy Technology Departmant
SMC College of Dairy Science, Anand Agricultural University, Anand
Definition (FSSR)

 Flavoured milk, by whatever name called,

may contain nuts (whole, fragmented or
ground) chocolate, coffee or any other edible
flavour, edible food colours and cane sugar.

 Flavoured milk shall be pasteurized, sterilized

or boiled. The type of milk shall be mentioned
on the label.
Status of milk and flavoured milk
 Milk Production: 176 MMT
 Flavoured Milk: 175 million liters in 2017
▪ Growth @ 25%
 Branded dairy beverage market
 Composed of…..
▪ Flavoured milk, Drinking Yoghurt, Chhaas and Lassi
 Rs. 1280 Crore (2017)
 By 2021 it will be billion dollar (6000 Crore)
 Flavoured milk constitute 60% share

 “Milk is mostly considered as a kid’s drink and we want

to change the way millennials consume milk.”
Why Flavoured milk ?

 Flavoured milk is the second largest widely

consumed liquid dairy product after plain milk.
 It contains same essential nutrients as the milk
and adding flavour and colour to milk increases
its palatability and value.
 Consumers have become more cognizant of the
influence of the food products.
 Shifting from carbonated and non-alcoholic
drinks to dairy-based beverage products.
Cont….
 It is the single largest source of dietary calcium among
children.
 Source of 9 essential nutrients…protein, calcium,
potassium, phosphorus, vitamins A, D, and B12,
riboflavin, and niacin.
 The replacement of dairy servings (302.3 mg calcium
per serving) by calcium-equivalent servings (such as
fortified soy beverage [1.1 servings], bony fish [1.2
servings], or leafy greens [2.2 servings]) will not
sufficiently replace other nutrients including protein,
potassium, or phosphorus
Types of flavoured milk
 Flavored milk and milk drinks are milk-based drinks with caloric
additions such as...

 Chocolate Pasteurized
 Fruit-flavoured milk
 Milk shakes Sterilized
 Hot chocolate/cocoa
 Malted milk UHT
 Lattes
 Coffee beverages
 Others

The 200-250 ml single-serve Tetra pack/ PET bottle/

pouch is the most dominant packaging option.
Health impacts: Flavoured Milk

 Dental caries: It is myth, has been shown to

have more buffering capacity, calcium and
phosphate.
 Flavoured milk as a recovery drink:
Improved endurance performance
Positive influence on exercise recovery
As it contains both carbohydrate and protein
 It is served at the end of Ironman races and
marathons across the United States.
 Cost calculations
Raw materials Rate(₹) per Quantity (kg) Cost (₹)
kg
Whole milk 39.00 2480.00 96720.00
Skim milk 22.00 2185.00 48070.00
SMP 200.00 15.00 3000.00
Cocoa powder @ 1.6% 700.00 75.00 52500.00
Sucrose@8% 35.00 400.00 14000.00
Sodium alginate @ 0.10% 1000.00 5.00 5000.00
Carrageenan @ 0.01% 2000.00 0.50 100.00
 
Raw material cost (1)   5000.00 219390.00
 Cont…

 
Packaging and labeling cost No of bottles Cost
(₹)
Glass bottle with
crown cork 3.70 / piece 25000 92500

Labelling cost 0.10 / piece 25000 2500

Pacakge and
 
    95000
labelling cost (2)
 
Total (1+2)     314390
Cont….

Steam consumption
Steam required Steam cost
Particulars Cost (₹)
(kg) (₹/kg)
Preheating 115.52 4.0 462.00
Forewarming 466.00 4.0 1864.00
Sterilization 475.00 4.0 1900.00

Total steam cost Total cost of electricity for 5000 litres of milk
processing 4226.00
Cont….

Electricity cost
Rate (₹)/
Operations HP No. Time (h) Total kWh Cost (₹)
kWh
Motor 4 5 5.0 15.00 7.0 105.00
Cream
3 1 2.5 5.63 7.0 39.00
separation
Homogenizati
10 1 5.0 37.50 7.0 263.00
on
Chilling 5 1 5.0 18.75 7.0 131.00
Total cost of electricity for 5000 litres of milk processing 538.00
Cont…

Manpower cost
Salary(₹)
Employee Number Salary(₹)/day Cost(₹)/day
/month
Officer 1 35000 1167 1167.00
Operator 2 15000 500 1000.00
Skilled labour 4 9000 300 1200.00
Unskilled labour 8 8000 267 2133.00
Total Manpower cost 5500.00
Total cost for manufacture of chocolate flavoured milk

Particulars of cost Cost (₹)

Raw materials 219390.00
Packaging material 95000.00
Steam 4226.00
Electricity 538.00
Manpower cost 5500.00
Processing and packaging losses (@
0.50% of raw materials and packaging 1571.00
materials)
Total cost (₹) for 5000 litres
326225.00
(25,000 bottles of 200 ml capacity)
Cost (₹) per 200 ml of flavoured milk 13.05
Cont…
OTHER OVERHEADS
 Filling/canning cost
 transportation cost
 Dealer and retailer margin
 Depreciation cost of
equipment
@ 25.0% of the raw
material and packaging cost
COST
 ₹ 78600.00 for 5000 litres
of flavoured milk
 Per litre cost is ₹ 15.72
 Hence per pack cost is 3.15
to 4.00 (pack size of
200/250 ml respectively.)
Conclusion
Comparing the sale price of different types of flavoured
milk of 200/250 ml pack size that varies between ₹ 20.00 to
30.00
Cost of production of ₹ 13.05 for chocolate flavoured milk,
and adding other overheads cost of about ₹ 4.00.
This signifies 50 to 100 % value addition in the raw milk
cost considering raw milk cost of ₹ 30 – 40 per litre.
Thus definitely increased consumption of flavoured milk
can help in improving health and making dairy farmers
income double.
Thank You