Are you about starting a milk collection business? If YES, here is a complete sample milk collection business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a milk collection business. We also took it further by analyzing and drafting a sample milk collection marketing plan template backed up by actionable guerrilla marketing ideas for milk collection companies. So let’s proceed to the business planning section.

Why Start a Milk Collection Business?

A milk collection business is an attractive business for any willing agro inclined entrepreneur. It takes time to build a milk business that can generate adequate revenue but making concrete research and planning can make the journey easier. The best approach to starting a milk collection business is to put together a business plan.

The business plan should include inside factors such as business location, required money and outside factors like economic factors, local conditions, market analysis, and service opportunities for future growth as well. SWOT (Strengths, Weaknesses, Opportunities and Threats) should be included in your business plan to avoid any future loss.

Starting a milk collection business requires a substantial amount of money to buy required land as well as storage and milk processing machinery. You also need funds to get your milk firm operational, milk processing equipment and tools such as milk Separators, Homogenizers, Tanks, and Pasteurizers are required.

It’s very important you research your local dairy market and analyze business opportunities. You should consider joining Dairy Business Association and taking membership because it helps to understand clients, competitors and economic factors.

Also prepare a marketing plan to promote your milk collection business. It helps to increase exposure to consumers. It’s your duty to make your customers familiar with your business and products. A good marketing plan will be the backbone of your milk collection business. Creating a website for your business helps to promote the business on the internet.

A milk collection business is a 24 hours, 7 days a week business so time management is very important in this business. If you don’t have business partners or family members to help you, then you should hire workers. You can hire full or part time workers according to demand.

A Sample Milk Collection Business Plan Template

1. Industry Overview

Milk is without doubt one of the most crucial part of a balanced diet and it contains, among other vital nutrients, a high percentage of calcium. Report has it that milk production amounted to about 502.82 million metric tons worldwide in 2017. Among the major producers, the united states was ranked second with a milk production amounting to over 96 million metric tons in 2016.

Note that California and Wisconsin remain the most important milk producing states in the U.S. milk market. These two states together account for a production volume of about 70 billion pounds of milk in 2016. Wisconsin is also known as “America’s Dairy land”, whereas California advertises with the slogan “Happy cows come from California”.

Major players in the United States markets are Nestlé USA, Dean Foods and Saputo Inc. Report also has it that the U.S. milk retail sales amounted to 49.14 billion pounds in 2016. Within the category, reduced fat milk (2%) took the lion share of retail sales.

On the consumer side, 54 percent of Americans make use of milk and dairy as a high quality protein source. But experts expect the industry’s per capita consumption rate to decline significantly from 97.1 kilograms in 2010 to 86.6 kilograms by 2025. Contrary to the decline, premium-priced milk categories such as organic, plant-based or flavoured products should assist in growing American consumption once again.

The price of raw milk has been highly volatile, resulting to fluctuations in revenue for the Dairy industry. Even with all the volatility, experts still predict that the industry will experience appreciable growth going forward. For the time being, the price of cattle feed, which typically makes up about half of the average dairy farm’s total expenses, has been nose diving as far back as 2014, significantly strengthening industry profit margins.

This industry is quite competitive in the United States of America and there are about 42,536 registered and licensed dairy farms responsible for employing about 345,672 and the industry rakes in a whooping sum of $47 billion annually.

2. Executive Summary

Milky Crown is a new business providing high-quality, full service milk collection, processing and distribution services. We plan to offer our milk products like cheese, yoghurt, butter, ice cream etc. to retail stores, coffee houses and espresso stands throughout Milwaukee. Milwaukee is the largest city in the state of Wisconsin and the fifth-largest city in the Midwestern United States.

Milky Crown founders, Bolton and Linda Crown bring to the table a combined experience in office management, high levels of customer service, and over 20 years in distribution and sales management. We have done our homework and have concrete commitments to distribute several high-quality new age milk products. We at Milky Crown plan to distribute our first products within 25-50 days of finalizing financial arrangements.

From our detailed research and analysis, we estimate that our sales projections will begin at approximately $1,782,000 the first year, growing to approximately $2,443,765 in our second year and approximately $4,023,009 in our third business year.  Also our net profit at Milky Crown is projected at approximately $331,000 the first year, increasing to $560,000 by the end of the third year of operation.

We at Milky Crown believe that the with combination of our founder’s management experience, sales and distribution experience, our high-quality, innovative products and exceptional customer service, we will able to attract a very large loyal customer base.

Another advantage we have is that Milky Crown is the only business in Milwaukee that offers milk collection, processing and distribution services. We have also landed an exclusive contract to distribute a new, unique product that would enable us to gain immediate access to a majority of the potential customer base.

3. Our Products and Services

Milky Crown will provide impeccable collection, processing and distribution of milk and milk related supplies, including cultured milk, powdered milk, condensed milk, evaporated milk, buttermilk, cottage and cream cheese, ice cream and yogurts.

Our services at Milky Crown will include invaluable trade resources, informative monthly newsletters, training and product demonstrations, effective promotional programs, custom-designed marketing material, as well as information on the latest market trends in the dairy industry.

We at Milky Crown hope to make our services as unique as our products. In addition to our full service delivery, we will also offer other important service elements to our customers like:

  • Avenues to help our clients grow sales through menu development, creative promotions, co-op advertising, and much more.
  • Samples of the latest product releases – with eye-catching point-of-sale to advertise new items to the end consumer.
  • Distribute a monthly newsletter featuring the latest milk trends, new industry equipment, breaking trade news, promotional ideas, new creative recipes, and upcoming events.
  • Routine equipment maintenance and training.
  • Specifically designed marketing material such as printed banners, promotional posters, punch cards, pre-purchased beverage cards, reader boards, etc.

4. Our Mission and Vision Statement

  • Our vision at Milky Crown is to become a recognized collector and distributor of specialty milk supplies and services to milk related business establishments all through Milwaukee, Wisconsin.
  • Milky Crown’s mission is to develop strong relationships with major customers so we will be viewed as priceless partners, rather than just another supplier. Our plan is to work closely with each customer to recommend products unique for their retail base, have appropriate stocking levels, pricing and display assortments, as well as promotional ideas and material to increase sales.

Our Business Structure

Milky Crown will be managed by the two founding partners, whose individual areas of expertise encompasses many of the functional aspects of the business. Bolton Crown will take care of routing, distribution management and delivery systems, while Linda Crown will be in charge of customer service, accounting, shipping and the general administration of the business.  The couple together will be responsible for product selection and sales and marketing.

All support staff at the office, store and warehouse, as well as the delivery personnel will report to Linda Crown because Bolton Crown will be spending a handful of his time striving attract new customers, Linda will be able to support any day-to-day needs that the personnel may have. However even when Steve is out of the office, he will be in constant contact via computer or phone.

We at Milky Crown plan to hire a team of committed associates who would empower each other in order to satisfy our customers. We also plan to offer career opportunities, advancement opportunities and a level of income and benefits that is competitive within the region and job classification. The portfolios we at Milky Crown plan to fill include:

  • Chief Executive Officer
  • HR and administrative Executive
  • Accountant
  • Plant worker(s)
  • Client Service Executive
  • Marketing and Sales Representative
  • Security guard

5. Job Roles and Responsibilities

Chief Executive Officer

  • Will be in charge of Overseeing other executives and staff within the organization.
  • Align with board of directors and other executives to determine if company is in accordance with goals and policies.
  • Charged with encouraging business investment.
  • He also promotes economic development within communities.
  • His in charge of directing the organization’s financial goals, objectives, and budgets.
  • Implement the organization’s guidelines on a day-to-day basis.
  • Preside over quality control.
  • Provide visionary and strategic leadership for the organization..
  • He makes sure that the members of the Board of Directors have the information necessary to perform their fiduciary duties and other governance responsibilities.

HR and administrative Executive

  • In charge of overseeing the running of HR and administrative tasks
  • Monitor office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • State job positions for recruitment and managing interviewing process
  • Organise induction for new team members
  • In charge of training, evaluation and assessment of employees
  • In charge of arranging travel, meetings and appointments
  • Oversee the smooth running of the daily office activities.


  • In charge of preparing financial reports, budgets, and financial statements for the organization
  • In charge of financial forecasting and risks analysis.
  • In charge of developing and managing financial systems and policies
  • In charge of administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

Plant Workers

  • Checking and controlling the equipment that make the milk
  • Checking instruments for example temperature gauges, at customary intervals
  • Keeping machines dirt free at all times.
  • Making sure the production line has a regular supply of raw materials or components
  • Adjusting the momentum of the conveyor belt if required.

Marketing and Sales Representative

  • In charge of Identifying, prioritizing, and reaching out to new markets
  • In charge of documenting all customer contact and information
  • Represents the company in strategic meetings
  • Aids to increase sales and growth for the company.

Client Service Executive

  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
  • Receives parcels / documents for the company
  • Distributes mails in the organization
  • Handles any other duties as assigned by the manager

Security guard

  • In charge of protecting the facility
  • Controls traffic and organize parking
  • Patrols around the facility on a 24 hours basis
  • Presents security reports weekly

6. SWOT Analysis

Milky Crown is a standard milk collection and distribution company founded by industry experts Bolton and Linda Crown to bridge the gap between Wisconsin dairy farmers and businesses that really need them. We took our time to perform a SWOT Analysis to analyse our chances in this competitive industry.

We at Milky Crown have prepared ourselves for the large number of products and services we will be offering our customers. Quickly explained below is a summary of the result of the SWOT analysis that was carried out for Milky Crown;

  • Strength

According to our SWOT Analysis, Milky Crown boasts of much strength in this competitive industry. It shows that our choice of business location is ideal and we can achieve our business goals and mission. Milky Crown’s strengths in the industry includes:

  • Our innovative quality products.
  • We are the only full service milk distribution company in Milwaukee
  • The 20 years combined experience of our founders in office management, high levels of customer service, distribution and sales management.


Our primary weakness at Milky Crown is that we are a new business competing largely against established suppliers all around the United States. We know that to significantly build sales, we don’t only need to find new customers but must take customers away from existing suppliers.

That’s why by offering a superior selection of supplies, unique products to the market, and specializing on high-quality service and full service delivery, we believe we can quickly establish accounts and build strong relationships.

  • Opportunities

Milk products are consumed worldwide and the United States is not left out. Milk remains an essential part of balance diet and Wisconsin Diary farmers produce them in large quantities. We at Milky Crown will collect, process and distribute these milks in different forms. The market is open as our target audience is reachable. We have everything ready to achieve our vision to become the number one distributor in the region.

  • Threat

According to our SWOT Analysis, the threat we will be facing will be the probability of global economic downturn that will affect us negatively, bad weather, unfavourable government policies, a new competitor in our location and faulty machines.


  • Market Trends

According to industry reports, consumer interest in the actual and perceived health benefits of dairy consumption is on the rise, which has catapulted them to be up to date on the latest dairy food trends in the market. Agreeably, the market for dairy foods is expected to grow in the coming years, increasing inclination towards veganism’ and the rise of a health-conscious generation who want to cut down on dairy consumption might prove to be significant threats to the growth of  the industry.

But analysis has shown that some smart players in the industry are quickly identifying new profitable dairy food trends to keep the customers hooked to their products. Indeed the protein infused products fared well in the market. We at Milky Crown understands that industry players in the market are continuously formulating new methods to keep their customers satisfied and we are ready to match them.

We also understand that customers in the market today look for clean label products that do not contain any additives, artificial preservatives or chemicals. Reports have it that one of the key dairy food trends in recent times was the shift of clean label products from a ‘fad’ to a ‘necessity.’

A lot of big players in the industry have already made clean label products a way of life and this trend is expected to be picked up extensively by other players. It’s very important to state that clean labels are one of the most prominent dairy food trends that are expected to heighten consumer trust and reduce brand risk for dairy food companies.

We at Milky Crown also understand that a good number of customers are willing to experiment with new flavours and that rate is growing rapidly. We have made plans to use innovative dairy food trends to our advantage to provide our customers with innovative offerings.

8. Our Target Market

Although the market is already sizeable, research has shown that this industry will continue growing. New retail stores open their doors to the public on a monthly basis in our market, and it isn’t uncommon to see numerous stores within a one or two mile radius.

Our initial plans at Milky Crown are to target these retail stores, as well as eateries and ice cream stands within our designated market. We believe that this segment is most in need of the services we are planning to offer at Milky Crown.

It is most often these small owner-operated businesses that are neglected by larger suppliers and are forced to service themselves. It is also these smaller businesses who could most greatly benefit from marketing services, sales support, and full service product delivery.

With time we also have plans to expand our target into big manufacturing companies, and as business grows and stabilizes, eventually evaluate the needs of potential customers in other industries.

  • Our competitive advantage

Milky Crown will purchase and collect raw milk directly from manufacturers in Wisconsin, as well as master distributors. This eliminates the broker or “middle man,” and this allows us to operate on a 25-30% profit margin, while providing our customers with competitive prices. To further reduce costs, we plan to share product shipments out of Milwaukee with distributors operating in Midwestern United States.

Also to streamline the efficiency of our distribution methods, we have confirmed plans to leverage the latest in cutting edge technology – not only in the warehouse – but also in the trade. All of our drivers/sales representatives will be equipped with Thinque MSP handhelds and software. Thinque MSP applications will reduce field expenses, decrease day’s sales outstanding, and increase worker efficiency.

Features can be used in or out of the warehouse and include managing returns and collections; adjusting item price, profit or margin; applying promotional items to an account; streamlining orders; tracking inventory; reducing out-of-stocks; and providing sales history reports.


  • Sources of Income

Milky Crown will make revenue by offering collection, processing and distribution of milk and milk related supplies. We also plan to get income by offering services that include invaluable trade resources, informative monthly newsletters, training and product demonstrations, effective promotional programs, custom-designed marketing material, as well as information on the latest market trends in the dairy industry. We will also make money by offering other important service elements to our customers like:

  • Samples of the latest product releases – with eye-catching point-of-sale to advertise new items to the end consumer.
  • Distribute a monthly newsletter featuring the latest milk trends, new industry equipment, breaking trade news, promotional ideas, new creative recipes, and upcoming events.
  • Specifically designed marketing material such as printed banners, promotional posters, punch cards, pre-purchased beverage cards, reader boards, etc.

10. Sales Forecast

With the level of growth in the milk or diary market, combined with the positive recent trends, the industry is believed to be made up of many small participants, each specializing on only a few specific items or brands at a time. But as the markets evolve, experts expect the industry to consolidate with larger distributors representing more of a vast selection of products in each market.

Meanwhile, we estimate that our sales projections at Milky Crown will start at approximately $1,782,000 the first year, growing to approximately $2,443,765 in our second year and approximately $4,023,009 in our third business year.

Have it in mind that our net profit at Milky Crown is projected at approximately $331,000 the first year, increasing to $560,000 by the end of the third year of operation. We have made all possible plans to achieve this and we believe that the combination of our founders management experience, sales and distribution experience, our high-quality, innovative products and exceptional customer service, we will able to attract a very large loyal customer base to us.

  • Marketing and Sales strategy

What will make us unique in this industry is our individual product selection, quality assurance, and high-quality full service distribution. Our strategy at Milky Crown is to focus 100% of our efforts on the market for retail stores in the Milwaukee.

We believe that by focusing all of our effort and energy on this particular area, we can quickly accumulate enough market share. We will make sure our key personnel stay in contact with our customers, and will be able to respond to changes in this market very fast.

We plan to offer the best, most highly personalized service in the marketplace. Although we are just a new company in this industry, we plan to use this to our advantage to be absolutely certain that all our customers receive excellent service.

Our basic marketing strategy at Milky Crown is to align with customers on a one-to-one basis to always make sure their supply needs are being met and help develop unique marketing programs for each of them. We intend to make our customer service our utmost priority and make it a key component of our marketing programs.

We at Milky Crown believe that giving our customers what they want, when and how they want it, will help grow repeat business and positive word-of-mouth advertising for Milky Crown. Since our goal is to develop close working relationships with our customers, we plan to create accounts in as personable a way as possible. That is why we will greatly emphasize in-person sales calls to build accounts.

Milky Crown will also closely integrate all of our marketing and sales efforts to show a consistent image of our company and a consistent positioning of our products and services. We will also attend as many area conventions and trade shows as possible to make sure we are offering the most up-to-date market trend information.

11. Publicity and Advertising Strategy

Just like we stated above, personal selling will most likely remain our most important means of promotion. Both Bolton and Linda Crown will lead this effort – Bolton, with his skill and experience in sales and distribution, and Linda in customer service and relations.

We will forward our news releases to local media and press, as well as trade magazines with the aim of getting our product and company feature coverage in front of the eyes of our customers. We have made plans to produce a few generic press releases about the products we are distributing.

We plan to make use of a monthly newsletter for current and potential customers. This newsletter will highlight new and current trends in the industry, upcoming conventions and trade shows, offer promotions and special deals, as well as provide new flavour ideas, fun tips and other information that can be useful to them.

Milky Crown will also highlight not just our products, but also tell ideas and success stories of other businesses in the industry. We have concluded plans to feature our advertisement in the Yellow Pages, put in frequent ads in the Diary Review, The Major, and the Daily Times, as well as participate in networking, local trade shows, and personal word-of-mouth advertising.

12. Our Pricing Strategy

Our major strategy at Milky Crown is to provide our customers with expert service and product knowledge, to build our marketing plan to reach diverse individuals and retailers, while also maximizing profits.

We understand that to actualize the right pricing for our products and services, we need to choose a good location for our facility, choose our suppliers wisely, reduce the cost of running our facility to the minimum and make sure we attract buyers to our business, as against taking our products to the market to source for buyers; with this, we would have successfully removed the cost of transporting the goods to the market and other logistics from the equation.

  • Payment Options

Indeed different people prefer different payment options at different times and ways. We plan to make sure that we provide them with payment options that will make their transactions less stressful and very open. Listed below are the payment options we at Milky Crown plan to make available to our customers;

  • Payment via bank transfer
  • Payment with cash
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft
  • Payment via POS

We have also chosen to partner with a known bank in the United States in order to give our customers the best they can ever get in the agricultural sector of the United States.

13. Startup Expenditure (Budget)

Presently in our sector of the industry, there are no big national chains with market control.  There are also few products that are offered with exclusive rights to one market. Although this is the case with many products, we at Milky Crown are working with manufacturers to alter that practice, and not only represent a larger variety of product than others in our industry, but also acquire exclusive rights to many of the products in our portfolio.

We have concrete plans for Milky Crown and we are not letting down from our high expectations. Below are possible areas we plan to spend our start up capital:

  • The price for incorporating our farm in United States of America – $750.
  • Our budget for key insurance policies, permits and business license – $10,000
  • The cost of acquiring / leasing our facility  – $55,000
  • The budget for preparing our plant– $39,000
  • The price for acquiring the required working tools and equipment / machines et al– $600,000
  • The price of Launching an official Website – $600
  • The budget for paying our workers for 1 year – $500,000
  • Other business requirements (Business cards, Signage, Adverts and Promotions et al) – $2,000
  • Miscellaneous – $5,000

We will need $1,300,000 to start Milky Crown and make our business ready to serve the needs of our customers.

  • Generating Startup Capital for Milky Crown

We at Milky Crown understand the importance of adequate funding to the success of our business. Milky Crown is owned by Bolton and Linda Crown and they hope to keep it that way with the funding and decision making. This is why they have decided to leave the means of generating funds for the business in the following ways till further notice.

  • Raise part of the startup capital from personal savings
  • Raise part of the startup capital from family members and friends (soft loans and gifts et al)
  • Raise a larger chunk of the startup capital from the banks

14. Sustainability and Expansion Strategy

Although there are a handful of businesses providing milk products in the United States, there is still a great deal of room for a new business, especially when this new business understands the need for high-quality service and sales support. We at Milky Crown believe that customers choose their suppliers based on available product, price, and service – though most often, it is the service that suffers most.

Have it in mind that while one supplier may offer the product at the right price, they may fail to provide the level of service that the customer demands. This results with the customer purchasing most of their supplies through a cash and carry style wholesale store. We believe that by positioning Milky Crown in the market with in-demand, quality product at competitive prices, with a consistent level of customer service – we will see customers continue to increase.

Note that within our first year of business, we at Milky Crown plan to open a retail/wholesale store and high-quality showroom. All our products will remain available for purchase by both our wholesale customers who may need product between delivery days, as well as retail consumers interested in purchasing product for their home use.

We also plan to organise semi-annual trade shows for current or potential customers. We believe that these trade shows will provide our clients with the opportunity to sample products, talk to manufacturers, learn about new industry trends, review marketing materials, and network with other business owners in their market.


  • Business Name Availability Check: Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Conducting feasibility studies: Completed
  • Leasing, renovating and equipping our facility: Completed
  • Generating part of the startup capital from the founder: Completed
  • Applications for Loan from our Bankers: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Packaging Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress