Development of a model for milk collection and processing in Zaria: financial implications

Milk is highly perishable, thus necessitating its immediate consumption, mostly fresh, or processing into fermentable products such as yoghurt, butter or cheese which may have improved keeping quality and nutritive value. A small-scale milk processing model at the Dairy Research Programme, National Animal Production Research Institute (NAPRI), Ahmadu Bello University, Shika, Zaria in Northern Nigeria was initiated in June 1993 utilizing milk produced by the dairy herd. Milk collection from smallholder dairy farmers was incorporated into the milk processing scheme to boost the quantity of milk available. Since the commencement of the milk collection programme started, the sales and expenditure records had not been analysed to assess the financial implications of the model. Therefore this study was carried out to ascertain the effects of milk product, year and season of production on the profitability of milk collection and processing.It was evident that a total income of 1,259,867 Naira (1US$= 25Naira) was realised from the combined sales of yoghurt, cheese, butter and pasteurised milk with yoghurt accounting for most of the income (1,151,907 Naira) and cheese the least (1,460 Naira). When the cost of production was deducted from total income, an overall profit of 447,202 Naira was realised over the four year-period with the highest profit obtained during the wet rainy season (June-September) and least gross margin during the dry season (February-May). Yearly differences were also significant (P