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thinking of starting a glass milk delivery service

  • 09-07-2018 4:37pm
    #1
    Registered Users, Registered Users 2 Posts: 630 ✭✭✭


    Hi guys, my husband is a dairy farmer which produced 260,000 litres last year.he is getting 30 cent a litre at the moment which barely covers the cost of production, it has often gone as low as 24 cent and then we had to get loans from the bank to pay our bills. in 2015 we got a loan for 20,000 and in 2016 we got a loan for 25000, these were 5 year loans so we are still paying them off.
    As the price is so volitile and we have no control over it, I am thinking of using a small amount of this milk to set up a small business whereby i will pasturise the milk, bottle it and deliver to houses in the area before sunrise each morning.
    So i would need to build a special room next to the dairy with a pasturiser, bottle steriliser, a sink and fridge. I would also need to buy a refrigerated van.
    My plan would be to have a website and an app where customers can order the amount they need and i will deliver them then. I am thinking of charging 1 euro a litre (its roughly 75cent in shops). i dont think i cud charge much more to get repeat custom. they wud leave the empty bottles on d doorstep for me to collect. i think glass is the way to go as people are more environmentally aware now and there is too much plastic around.
    Do ye think this is a viable business idea.Its hard seeing my husband work 7 days a week from 6am to 8pm and have nothing out of it only stress about paying bills and i feel this would be a good money earner. i would love to hear your thoughts on this


Comments

  • Closed Accounts Posts: 7,480 ✭✭✭wexie


    I can really only tell you what I would think as a consumer. And, I suppose, tell you about the 3 separate milkmen who tried getting a regular 'round' setup in this area over the past few years....and all failed eventually.

    And I'd love for it to be a positive message but I'm going to go on the assumption you're looking for honest feedback (sorry)

    Why would people pay 25 cent per liter more (that would be roughly 30% more than in the shops if you're working off an average shop price of 75c/liter) for your particular milk over what they get in the shops?

    Considering the product they buy in the shops comes from a plant with professional quality control etc. etc.?

    And keep in mind, while it's convenient to have fresh milk outside of your door every morning (that's if you remember to bring it in of course) you're not actually saving anyone a trip to the shops. They're going to be in the shops anyway. The shops that are selling milk for 30% less than you do?

    I would imagine it would end up being a significant investment to start with and while I'd love to be able to tell you it would work out well I don't think it would do much for getting you out of debt in the long run :(

    You may well get some people going for the environmental aspect of the glass bottles, but would that be enough to make the investment worthwhile? AND turn a profit?


  • Moderators, Recreation & Hobbies Moderators Posts: 21,899 Mod ✭✭✭✭Brian?


    There’s a crowd in Dunlavin already doing glass bottle deliveries to businesses. You should look them up.

    they/them/theirs


    And so on, and so on …. - Slavoj Žižek




  • Registered Users, Registered Users 2 Posts: 630 ✭✭✭Henwin


    wexie wrote: »
    I can really only tell you what I would think as a consumer. And, I suppose, tell you about the 3 separate milkmen who tried getting a regular 'round' setup in this area over the past few years....and all failed eventually.

    And I'd love for it to be a positive message but I'm going to go on the assumption you're looking for honest feedback (sorry)

    Why would people pay 25 cent per liter more (that would be roughly 30% more than in the shops if you're working off an average shop price of 75c/liter) for your particular milk over what they get in the shops?

    Considering the product they buy in the shops comes from a plant with professional quality control etc. etc.?

    And keep in mind, while it's convenient to have fresh milk outside of your door every morning (that's if you remember to bring it in of course) you're not actually saving anyone a trip to the shops. They're going to be in the shops anyway. The shops that are selling milk for 30% less than you do?

    I would imagine it would end up being a significant investment to start with and while I'd love to be able to tell you it would work out well I don't think it would do much for getting you out of debt in the long run :(

    You may well get some people going for the environmental aspect of the glass bottles, but would that be enough to make the investment worthwhile? AND turn a profit?

    Thanks for the feedback, our milk would be pasturised but not homoginised, thats where they mix the whole lot of the milk and it tastes watery. if you ever taste non homoginised milk you would be shocked at the difference in taste, its much nicer.
    regarding the price, i could well reduce that down to 75 cent if it meant getting customers, afterall its double what we are getting at the minute. i know there are going to be high diesel costs and running costs but i am hoping it would still be a viable business in the long run,.
    i would also look into start up grants that might cut down the initial costs


  • Registered Users, Registered Users 2 Posts: 196 ✭✭setanta1000


    Have a look at mymilkman.ie which is a delivery service run by Avonmore - we use it and find it very handy; prices are about 20% higher when you include delivery charge - we love the convenience, and are happy to pay the extra costs for doorstep delivery but would not pay extra for glass bottles.

    I think the margins on milk delivery will be very small so maybe you should look at using excess milk to produce a higher margin product - could you look at making cheese or yogurt (or something similar) on site or team up with someone in the locality? I know nothing about milk production or food manufacture so I could be talking complete rubbish but you never know!


  • Closed Accounts Posts: 7,480 ✭✭✭wexie


    - could you look at making cheese or yogurt (or something similar) on site or team up with someone in the locality?

    That might be an idea, the area I grew up in (in Holland) quite a few local farmers would have been making specialty cheese. Garlic cheese, nettle cheese, cumin cheese, lots of different ones.

    Although in my opinion the Dutch seem somewhat more adventurous with their cheese than the Irish :D

    Mind I don't know how much more /or less of an investment that would be


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  • Registered Users, Registered Users 2 Posts: 630 ✭✭✭Henwin


    Have a look at mymilkman.ie which is a delivery service run by Avonmore - we use it and find it very handy; prices are about 20% higher when you include delivery charge - we love the convenience, and are happy to pay the extra costs for doorstep delivery but would not pay extra for glass bottles.

    I think the margins on milk delivery will be very small so maybe you should look at using excess milk to produce a higher margin product - could you look at making cheese or yogurt (or something similar) on site or team up with someone in the locality? I know nothing about milk production or food manufacture so I could be talking complete rubbish but you never know!

    thanks for your reply, wud you mind me asking how much a litre you pay? i am thinking of charging 80 cent to a litre a bottle. i would not be charging extra for delivery or because im using glass bottles


  • Closed Accounts Posts: 3,378 ✭✭✭CeilingFly


    One of the food programmes (bbc) had an almost identical situation. 250,000 litres of milk and no profit.

    Son did a business course and cheesemaking course and fairly quickly he was using all the milk for cheese


  • Registered Users, Registered Users 2 Posts: 630 ✭✭✭Henwin


    ya, my husband also reckons making yoghurt, cheese and butter wud be better options but i disagree as there is a lot more work and cost involved in making these. like i have all the milk i need, all i need to do is pasturise it and bottle it. i need to sit down and do the figures, i am a mother and i work part time so this wud be a side earner and wud also need to take as little time as possible. i plan to do the milk round between 3 and 6am before my husband leaves for his days work. i would hope to sell 100 bottles a day. is this realistic, am i mad to even attempt it. i might have to do some focus groups and get a general idea of peoples views and buying power before investing any money.


  • Closed Accounts Posts: 455 ✭✭jasper100


    Henwin wrote: »
    Hi guys, my husband is a dairy farmer which produced 260,000 litres last year.he is getting 30 cent a litre at the moment which barely covers the cost of production, it has often gone as low as 24 cent and then we had to get loans from the bank to pay our bills. in 2015 we got a loan for 20,000 and in 2016 we got a loan for 25000, these were 5 year loans so we are still paying them off.
    As the price is so volitile and we have no control over it, I am thinking of using a small amount of this milk to set up a small business whereby i will pasturise the milk, bottle it and deliver to houses in the area before sunrise each morning.
    So i would need to build a special room next to the dairy with a pasturiser, bottle steriliser, a sink and fridge. I would also need to buy a refrigerated van.
    My plan would be to have a website and an app where customers can order the amount they need and i will deliver them then. I am thinking of charging 1 euro a litre (its roughly 75cent in shops). i dont think i cud charge much more to get repeat custom. they wud leave the empty bottles on d doorstep for me to collect. i think glass is the way to go as people are more environmentally aware now and there is too much plastic around.
    Do ye think this is a viable business idea.Its hard seeing my husband work 7 days a week from 6am to 8pm and have nothing out of it only stress about paying bills and i feel this would be a good money earner. i would love to hear your thoughts on this


    My tuppence worth is that you should focus on local "artisan" shops, cafes and restaurants rather than Joe public.


  • Registered Users, Registered Users 2 Posts: 891 ✭✭✭A Law


    I'd definately buy from you if you set it up. We go through about 20 litres a week and would love to be able to reduce all the cartons going in the green bin.


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  • Registered Users, Registered Users 2 Posts: 975 ✭✭✭decky1


    Brian? wrote: »
    There’s a crowd in Dunlavin already doing glass bottle deliveries to businesses. You should look them up.

    have a friend who lives up there , say's he's doing very well.just talking about it last week.:cool::cool::cool:


  • Registered Users, Registered Users 2 Posts: 11,986 ✭✭✭✭duploelabs


    Try a producer of those supplementary dairy products (Cheese, butter, yoghurt) and see if they'd be interested in buying your dairy off you at a wholesale price, well at least better than what they dairy are paying so you can make a profit. Failing that, if you're reluctant to invest in the production facilities yourself, there a many independent non-brand producers who may be in a position to produce them for you under your own branding


  • Closed Accounts Posts: 2,350 ✭✭✭doolox


    My first job on leaving school was a milkman. My father was a milkman in Manchester with Express Dairies and in Galway with The Galway Milk Company for 40 yrs.

    Things are not the same now.

    Milk can be dropped off in supermarkets at very low prices. It lasts about 7 days so that daily delivery is no longer needed. Many people opt for low fat milk so that the full flavour of traditional milk is no longer in much demand.

    The large scale producers will always win out as they can afford the quality and test resources needed to maintain the 7 day life of modern milk supplies. Homogenisation and almost sterilisation of modern milk is the price a consumer pays for 7 day shelf life. Some even opt for full sterilisation, yielding UHT or ultra heat treated milk which can last a very long time.

    I fear that any customer survey you do will yield false results in that people will aspire to take on traditional full-fat but low lifespan milk but will give it up quickly.

    Many people aspire to eat brown, wholemeal bread but sales of white are still high enough to give lie to the aspiration and enforce the reality. Most people eat white bread.

    Likewise most people will pick up milk in the supermarkets because it is convenient to do so.

    More people have cars. Weight is no longer an issue.

    More women are working than in the 70's when home delivery was common and could be managed.

    Family sizes are smaller.

    People are no longer at home on Saturdays when most bill collections were done on traditional milk rounds.

    Many modern housing developments are gated communities which makes access for cash collectors more difficult that in former times.

    All these factors militate against traditional milk deliveries as being a viable option, but I could be wrong.

    A combined milk, eggs butter and cream service to caterers and restaurants etc might work.


  • Registered Users, Registered Users 2 Posts: 4,946 ✭✭✭Bigus


    Good on you for trying to get properly paid for good produce .

    You're location and proposed delivery area would have a large bearing on the price, I don't agree with others that the price is number one , especially if the product is different ,better and in superior packaging so I don't see a €1 a litre as a show stopper.

    Wealthy families, with loads of young children that drink milk on its own would be the best target. How you find these , or if they even exist anymore is the question.

    Would gyms have an interest is selling fresh milk , drank out of a bottle ,I'd say they might.

    If you can get this product on sale in a small scale , say by certifying your domestic kitchen first and maybe a plug in refrigerated container that'll fit in one of your current vehicles would be the way to go before investing large amounts of money, and is the ultimate market research before the big investment.

    After all this, I'd agree with others that a slightly harder to produce milk derived product(cheese/yogurt/dressing/custard) might be a lot easier to sell , in the long run.


  • Registered Users, Registered Users 2 Posts: 983 ✭✭✭Stephen Strange


    Do the maths properly on this would be my advice. If you add in your costs (loan to by a pasteuriser, broken bottles, extra energy usage, diesel, etc) you will probably be looking at less than the 30c per litre that you currently get from the dairy, with the added time and stress of running an additional business.

    As said above, you would be much better of looking at other products to use the milk for like Cheese, Yoghurt, Butter, Ice Cream(or a combination of those). Although these will also have start up costs, you end up with a higher value product at the end.


  • Registered Users, Registered Users 2 Posts: 5,082 ✭✭✭enricoh


    I think it's a non runner unfortunately, running round the countryside delivering a litre or two here and there. Possibly delivering 20l to a cafe n 80l to a hotel. But they already have a milkman delivering, along with cream, butter etc.

    Is there any old building you could do up as an air bnb . A friend renting last week in rural Donegal e800 for a week, miles from beach etc. I was surprised it was that high.
    A shed u can rent out as a workshop? Storage?


  • Registered Users, Registered Users 2 Posts: 630 ✭✭✭Henwin


    thanks a million for all the replies, its given me much food for thought, i rang the kerry enterprise board today and they were helpful, i will do a start your own business course when one is available as the current ones are booked out. the sums will need to add up and they help with a business plan.
    I honestly dont think a euro a litre delivered to your door is expensive, sur a pint in the local is about 5 euro. supermarkets have ruined so many small farmers with their below cost selling of fruit and veg as well as milk.
    To introduce everyone to the product i would drop a free bottle of milk to each house in my parish with details about it as well as a website/app where they cud order from.I really believe in this idea and i would love it to work but have a fear of it failing.
    This time next year Rodney.....:D


  • Registered Users, Registered Users 2 Posts: 11,467 ✭✭✭✭salmocab


    Would the dairy you sell to currently be annoyed at you effectively going into competition with them albeit on a tiny scale? Might not sit well with them regardless of your size and product niche.


  • Registered Users, Registered Users 2 Posts: 3,801 ✭✭✭iamtony


    I'd love to get fresh bottled milk delivered to my door like the good ol days.
    I'm in Dublin, I'd say you would have to target a large town or city to make it work.
    I see you said you'd aim for 100 bottles a day at 1.00 a bottle or even as low as 75c a bottle. That's less than 100 a day turnover.
    If you take into account the cost of just getting a refrigerated van and running it I don't see it being very profitable. I'd say you'd need to deliver quite a bit more.


  • Registered Users, Registered Users 2 Posts: 630 ✭✭✭Henwin


    salmocab wrote: »
    Would the dairy you sell to currently be annoyed at you effectively going into competition with them albeit on a tiny scale? Might not sit well with them regardless of your size and product niche.

    its kerry co-op we supply and they mainly turn the milk into milk powder for the chinese market as well as some butter so i dont think they wud be too bothered by it. they go through about 1.1 billion litres annually


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  • Registered Users, Registered Users 2 Posts: 19,102 ✭✭✭✭Del2005


    Henwin wrote: »
    I honestly dont think a euro a litre delivered to your door is expensive, sur a pint in the local is about 5 euro. supermarkets have ruined so many small farmers with their below cost selling of fruit and veg as well as milk.
    To introduce everyone to the product i would drop a free bottle of milk to each house in my parish with details about it as well as a website/app where they cud order from.I really believe in this idea and i would love it to work but have a fear of it failing.

    That's a 20% price increase and since people will have to go the shop to buy other products it's not worth the savings.

    You said you don't like seeing husband working all day for feck all from the dairy. Getting up to go to work at 3am everyday and doing your part time job after is going to be harder and for very little return for the first few years. When will you maintain the van? Because once that goes down you can't deliver and your customers who are paying a premium for the product won't be happy.


  • Closed Accounts Posts: 1,194 ✭✭✭Conservatory


    We have a milkman here. It annoys me paying him more than the shop but I’d feel bad now if he lost his job because I stopped getting milk. I certainly wouldn’t sign up to a new fella just because he had glass bottles. I’m not a hipster.


  • Registered Users, Registered Users 2 Posts: 2,767 ✭✭✭SterlingArcher


    Great price on the milk.

    Love the cheese idea.

    Create your own brand.

    Marketing it as farm fresh wholesome country cheese.

    Get a stall organised, hit the markets. This will give you some solid numbers to work with.


  • Registered Users, Registered Users 2 Posts: 2,393 ✭✭✭Grassey


    There is a milkman does delivery out by me. Generally a 3am drop off.

    His subscribers have dropped consistently since he started. Sun's up from about 4 at the minute so by time people take in the milk it's been sitting in the sun for 4 hours or so. Same price as the supermarket so no savings to be had.

    Cold milk from a glass bottle with a layer of cream on top can't be beat, though don't think I'd subscribe to a regular door drop delivery, whereas a local farmer calls around every Monday with eggs to sell and I'd always buy some, maybe something like that would get a better uptake at the expense of eating into more of your time though.


  • Registered Users, Registered Users 2 Posts: 630 ✭✭✭Henwin


    iamtony wrote: »
    I'd love to get fresh bottled milk delivered to my door like the good ol days.
    I'm in Dublin, I'd say you would have to target a large town or city to make it work.
    I see you said you'd aim for 100 bottles a day at 1.00 a bottle or even as low as 75c a bottle. That's less than 100 a day turnover.
    If you take into account the cost of just getting a refrigerated van and running it I don't see it being very profitable. I'd say you'd need to deliver quite a bit more.

    ya i was thinking that, i was trying to be cautious in the number i cud deliver before 7am, i presume everyone wud want it delivered before 7, so to deliver 100 bottles i think it would take 3 hours. i wouldnt like to be working all night if i had to double it. i doubt peoplw wud opt for day time deliveries although now that you mention it would say 6-9 in the evening an option


  • Closed Accounts Posts: 7,480 ✭✭✭wexie


    Grassey wrote: »
    whereas a local farmer calls around every Monday with eggs to sell and I'd always buy some, maybe something like that would get a better uptake at the expense of eating into more of your time though.

    I'd say you'd need a fair few hens to make that worthwhile no?

    Mind you, we have our own hens and the difference between the eggs from happy healthy hens and the ones you buy in the shops is something people are willing to pay for.


  • Closed Accounts Posts: 7,480 ✭✭✭wexie


    Henwin wrote: »
    ya i was thinking that, i was trying to be cautious in the number i cud deliver before 7am, i presume everyone wud want it delivered before 7, so to deliver 100 bottles i think it would take 3 hours. i wouldnt like to be working all night if i had to double it. i doubt peoplw wud opt for day time deliveries although now that you mention it would say 6-9 in the evening an option

    I don't know how feasible it would be to start this small scale without major investment but if you could you could try dropping in a few bottles to B&B's nearby?


  • Registered Users, Registered Users 2 Posts: 11,467 ✭✭✭✭salmocab


    Henwin wrote: »
    its kerry co-op we supply and they mainly turn the milk into milk powder for the chinese market as well as some butter so i dont think they wud be too bothered by it. they go through about 1.1 billion litres annually

    probably not so but you never know with large companys. To be honest like a lot of people I love the idea of getting fresh milk every morning but with the way people live these days its probably not practical to get milk dropped off every morning. My wifes job in suburbs of Dublin used to get several litres delivered every day but the guy became a nuisance dropping off the evening before occasionally so the milk was sitting out for 12 hours and sometimes not delivering at all because man utd were playing and he was going over. They eventually dropped him as the handiness of having it delivered wasnt enough to have to put up with missed deliveries because a one man operation cant cope 52 weeks of the year.


  • Closed Accounts Posts: 18,268 ✭✭✭✭uck51js9zml2yt


    Would you not look at those self service machines that dispense fresh milk.


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  • Registered Users, Registered Users 2 Posts: 22,578 ✭✭✭✭Mam of 4


    Henwin wrote: »
    ya i was thinking that, i was trying to be cautious in the number i cud deliver before 7am, i presume everyone wud want it delivered before 7, so to deliver 100 bottles i think it would take 3 hours. i wouldnt like to be working all night if i had to double it. i doubt peoplw wud opt for day time deliveries although now that you mention it would say 6-9 in the evening an option

    Our milkman delivers at night , usually between 10.30 -12.00. Don't know if that would be an option for you ?

    Fresh milk in a glass bottle , evokes lots of happy memories !
    Best of luck to you :)


  • Registered Users, Registered Users 2 Posts: 11,467 ✭✭✭✭salmocab


    Henwin wrote: »
    ya i was thinking that, i was trying to be cautious in the number i cud deliver before 7am, i presume everyone wud want it delivered before 7, so to deliver 100 bottles i think it would take 3 hours. i wouldnt like to be working all night if i had to double it. i doubt peoplw wud opt for day time deliveries although now that you mention it would say 6-9 in the evening an option

    Thats only 100 euro a night before any overheads like the van, diesel, insurance, equipment loans and running costs etc. Doesnt sound at all profitable to be honest. 500 a week less costs doesnt sound worthwhile.


  • Registered Users, Registered Users 2 Posts: 1,442 ✭✭✭Deub


    I agree with others about selling cheese, yoghurt, butter and eggs. I think it would attract more people.
    Milk only seems risky and it is a competitive market.


  • Registered Users, Registered Users 2 Posts: 2,201 ✭✭✭jamesbondings


    Couple of things to point out.

    1) current prices of a litre of milk in a shop (in a carton) is more than a euro.

    2) glass bottles will be a selling point for a certain demographic.

    3) op gets 30cent a litre currently.... Investing in a "workshop" will allow her increase this 310%

    4) difference between op and typical milkman. Op has the raw products for "free" or if you want to look at it as a cost of 30 not made

    5)this business could boom, leaving op to scale rapidly. If they are able to undercut shops and have it delivered she's onto a winner.

    Op I would do it. If you could pasturise it then there is no need to educate the customer. Raw materials on your doorstep coupled with the low price you get per litre..... Cut the middle man out, take their profits as your own.


  • Registered Users, Registered Users 2 Posts: 6,213 ✭✭✭Mena Mitty


    We use raw milk in glass bottles from Glasson Dairy outside Athlone. I think the cows are milked, milk strained and straight into cooling. No pasteurization.

    It's just like the milk we had as kids straight from the cow. Pure creamy.

    Best of luck if you go down that route. Cheese and yogurt is also something to look into and the other suggestions the other posters made.


  • Registered Users, Registered Users 2 Posts: 97 ✭✭suilegorma


    You mentioned that you are in Kerry, could you sell the milk at farmers markets to start out build a brand and then target the high end restaurants and hotels in the big tourist towns? There's a few zero waste markets in Dublin so if that was an option too. There's a great FB page called zero waste Ireland and I'm sure you'd get great feedback there.


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  • Closed Accounts Posts: 1,758 ✭✭✭Pelvis


    I don't see how it would make financial sense OP. You've needed almost 50k in loans just to get buy, you'd want to be delivering a serious amount of milk to make up for it, not to mention the outlay required just to get up and running.


  • Registered Users, Registered Users 2 Posts: 4,709 ✭✭✭blackbox


    Mena Mitty wrote: »
    We use raw milk in glass bottles from Glasson Dairy outside Athlone. I think the cows are milked, milk strained and straight into cooling. No pasteurization.

    It's just like the milk we had as kids straight from the cow. Pure creamy.

    To the best of my knowledge it is illegal to sell unpasteurised milk.

    The only place it may be used is in certain cheeses.


  • Registered Users, Registered Users 2 Posts: 17,190 ✭✭✭✭Sleeper12


    I'm no use to you as a customer as I live in Dublin. We go through 3 litres per day. Used to get milk delivered but stopped. The reasons why might be a help to you.

    The main reason was that he might deliver late at night or 1 am. At this time of year especially in this heat our milk could be sour before we took it in at 8pm. Even if it wasn't it would only last a day in the fridge after being out in the heat for so long.

    He'd double or even triple up on deliver so it was 2 or 3 delivery per week. I wouldn't mind this if he doubled Saturday & took Sunday off, bank holiday or trippled up at Christmas.

    Last thing was the bill. Quite often it was wrong. A few litres in the week. This has always been a problem. Even as a kid 40 odd years ago my mams bill was wrong. She'd write on a pad what she ordered each night and compare it with the dairy bill. They didn't always match. This wasn't the same milkman over the years. Different milkmen and different dairys.

    None of this answers your questions but these are reasons why some people don't want milk deliverer. If you know why someone doesn't want your service then you have a chance of changing their minds. Free milk for the first week might be a good incentive to get someone to try your service.


  • Registered Users, Registered Users 2 Posts: 6,213 ✭✭✭Mena Mitty


    blackbox wrote: »
    To the best of my knowledge it is illegal to sell unpasteurised milk.

    The only place it may be used is in certain cheeses.


    I'm not familiar with the law. Raw milk can be bought all over Ireland. Maybe the law changed.


  • Registered Users, Registered Users 2 Posts: 1,585 ✭✭✭denismc


    In Cork there is a farm doing very similar to what you are planning.
    I have been to their farm and they have a small plant for pasteurizing and bottling.
    They sell door to door and to health food shops.
    They also have a contract with Super Valu which must be a great help.
    They go by the name of Gloun Farm or Gloun Cross dairy.
    It may be worth contacting them for some advice.


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  • Registered Users, Registered Users 2 Posts: 403 ✭✭cathy427


    Couple of thoughts OP.

    I grew up on a small dairy farm that is no more so I hate the idea that hard working dairy families cant make a decent income from a great product.

    On the business plan

    - costs are going to be big. Glass sterilisation alone would be big job. Plus set up, building, van, insurances, health and safety/food hygiene / bord bia - these are all doable, this is not to put you off rather to go in with eyes open.

    - have to educate your customer base that the milk is pasteurised and not homogenised, has very low food miles, is a genuine local product and buying it supports a local business etc.

    - as others have said €100 a night is not enough of a return. Wont cover costs. Where you hoping for 100 customers or 100 bottles per night (as in some may take more than one) 100 times a night in and out of van will require thinking in terms of type of van and height of load to make it doable.

    - your husband is already working 6am - to 8pm (plus calving) and now you are looking at working from 3am - to 6am/7am at the same enterprise. A 3am start to get 6 hours sleep in in bed for 9pm so ye have an hour in the day together which is not about the dairy herd. This is not sustainable.
    Evening deliveries might be an option.

    - I think the self service idea might be better. How remote are you? Could this be set up at farm entrance? Local crossroads? Local village?

    - The issue with delivering to upmarket guesthouses etc is that unless they can put your bottle on the table there is no value to them in doing business with you. For that you are looking at smaller bottles for a single meal.
    But talk to the independent hotels - its another selling point for them to say that they only use local non-homogenised milk from "Mary and John's farm" 1.6 miles away, low food miles, green product, etc etc. Couple of those contracts and you are on to a winner.

    - How close are you to tourist areas? Most people on holidays are happy to pay a decent premium for locally made ice creams and yogurts sold by the farmers wife. Plus you might be able to get these into the local shops /hotels.

    -Also If you went down that route you could look at the Supervalu scheme to help start ups. (but the ice cream market is already getting crowded with small brands )

    - How "scale able" is your business plan?
    How soon can you give up your part-time job to focus fully on the dairy?
    How much time can your husband put into the venture?
    What other options have you looked at - like would less output (in terms of volume of milk) from less input costs (less feed, fertiliser, silage costs) generate a greater profit margin. Ie making the existing business more lean. I know it seems alien to farmers to cut back production but if it increases the overall profit then it is worth it.

    - Travel and talk to as many people as you can that have tried different things in the dairy sector.

    -Talk to the enterprise board/ teagasc etc.

    - Left field and outside my knowledge base but is there a market for organic milk? Is there a premium price available for it? Does the premium make it worthwhile?

    -Best of luck with it and its great that you are trying something.


  • Registered Users, Registered Users 2 Posts: 6,200 ✭✭✭appledrop


    We used to get milk delivered in glass bottles when we were young + my mam always drank the 'cream' from the top. Think the milk was pasturised back then but not all mixed up. Honestly though nowadays just can't see the demand for service. We have toddler so go through a lot of milk but it lasts so long now that we stock up on weekly shop then would only have to go again once during the week.


  • Registered Users, Registered Users 2 Posts: 8,671 ✭✭✭GarIT


    OP has mentioned a website and app a few times, I think this will wipe out any profits before it gets started. A lot of people think an app or website is something you can do easily but it's not always especially when you need customers to be able to log in and some back end system for yourself where you can read the orders, and if you add billing on top of that it's probably going to cost €10k for the app and website and then you need to buy a server for the backend, or pay someone like Amazon for AWS.


  • Registered Users, Registered Users 2 Posts: 19,102 ✭✭✭✭Del2005


    Henwin wrote: »
    ya i was thinking that, i was trying to be cautious in the number i cud deliver before 7am, i presume everyone wud want it delivered before 7, so to deliver 100 bottles i think it would take 3 hours. i wouldnt like to be working all night if i had to double it. i doubt peoplw wud opt for day time deliveries although now that you mention it would say 6-9 in the evening an option

    Along with the 100 bottles not covering the costs, would you be able to deliver the 100 bottles in 3 hours? While there will be a business for fresh milk would there be enough demand for you to be able to drive to them all and stop to do deliveries in the time you have allocated. Even if you are dropping 2 to a house that's 50 stops in 3 hours which will give you 4 minutes to do a drop and get to the next drop.

    If your husband is full time on the farm and you have a part time job who will do the pre work for the milk deliveries? Who will sort and sterilize the bottles, fill the bottles, seal them, pack for distribution and then load the van. There'll be at least 2 or 3 hours work per day here.

    Then there's the fun of the paperwork and managing the samples you have to keep for food safety compliance.


  • Registered Users, Registered Users 2 Posts: 975 ✭✭✭decky1


    5 euro a pint in the local--have you thought of delivering beer door to door think you could be on to a winner there? just imagine getting up in the morning and 5 cans of Guinness on your door step.[Heaven]


  • Registered Users, Registered Users 2 Posts: 456 ✭✭onedmc


    jasper100 wrote: »
    My tuppence worth is that you should focus on local "artisan" shops, cafes and restaurants rather than Joe public.

    I'd agree with Jasper, get a couple of euro from the public is very hard you need to go to specialist shops with premium products.

    Cheese is a really good example of adding value to primary material and Adding value adds margin.


  • Registered Users, Registered Users 2 Posts: 5,082 ✭✭✭enricoh


    You're in kerry, loads of tourists so. My tuppence worth, start making ice cream, convert a little caravan n get it certified, sell ice cream and coffee every Saturday n Sunday on some tourist trap road, ie kenmare to sneem, road to dingle etc etc.
    U'd be amazed what u'd pull in in a day


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