PROPOSAL FOR THE MILK COLLECTION AND DISTRIBUTION TO NEW KENYA COOPERATIVE

CREAMERIES ELDORET (NKCC)

By

MWANGAZA LIVE WOMEN GROUPReg. No. UG/SS/REG/20264/2013

PRESEMTED TO THE USAIN GISHU CDF OFFICE FOR THE APPLICATION OF UWEZO FUND

JANUARY 2014

CHAPTER ONE: EXECUTIVE SUMMARY1.0 Background Information

Mwangaza Live Women Group (MLWG) is a self help group started in 2013 March, a

brain child of the women members who felt the need to seek helping hand from friends in

empowering their activities to improve their economic status. It was born as a result of

challenges the members faced such as access to basic education, lack of source of

income, poverty eradication, illiteracy among women members, and the need to pull

resources together among others.

Mwangaza Live Women is now registered as a self help group under Reg. No.

UG/SS/REG/20264/2013 in May 2013. The following table 1.1 summarises details of

members including their Names, Address, Telephone, Date of birth, Education and

Recent job functions of the Mwangaza Live Women Group.

Table 1.1: List of Members

Name Tel. DOB Education Job Functions

1. Nelly Atieno Onyango 0715044931 1986 Diploma Business/Chairlady

2. Lillian Migaliza 0701336253 1990 Diploma Business/Secretary

3. Jane Kadii Luvaha 0708106688 1973 Primary Business/Treasurer

4. Azibeta Vinaywa 0718819650 1960 Primary Business/Member

5. Albert Muhenyu 0704749941 1985 Diploma Business/Member

6. Rispa Kwamboka 0725707036 1980 Degree Teacher/Business

7. Ezekia Adego 0704749941 1967 Secondary Business/Member

8. Alfred Kipkosgei 0724093204 1984 Diploma Defense/Business

9. Jacqueline Lwile 0716356964 1988 Diploma Business/Member

10. Isaac Lupenzi 0729977497 1986 Diploma Business/Member

11. Keya Adala Robai 0715044931 1978 Secondary Business/Member

12. Caro Nafula Nabayukha 0714095674 1988 Diploma Business/Member

13. Catherine Mukasio Mairo 0717108091 1989 Diploma Business/Member

14. Christopher Okoth 0724500707 1975 Degree Group Development Planner

The entrepreneurial experiences owned by members cut across various business sectors.

There are catering, poultry farming, cereal merchandise, second hand cloth selling,

beverage processing, farming, dairy milk farming, retail shop, vegetable and fruit selling

experiences, which is a background profile suitable to establish and sustainably manage

an enterprise to improve the lives of the members. Members have been contributing

through normal savings and merry go rounds towards business start ups and expansions,

member/community economic empowerment, facilitation of HIV/AIDS awareness

campaigns and illiteracy fights. MLWG operates a Bank account with Cooperative Bank,

a move that has enabled the members to access small credits, which has not been enough

to establish an enterprise that can have a greater economic impact.

STATEMENT OF PURPOSE

The purpose of writing this business plan is that it is important to have a blue print of the

plans you intend to achieve. A business plan actually gives the entrepreneur the direction

to follow so as to achieve the initial goals of the business ensuring profitability to the

business. This business plan is therefore intended to be used to get financial support from

UWEZO Fund arm of the Constituency Development Fund (CDF). The purpose of the

business plan is to outline the activities taken by the business, product marketing, capital

requirements, capital sourcing and personnel requirements and sourcing for the business.

By writing this business plan MLWG will be having a written down step-by-step

strategic plan for the smooth running of the business. Uasin Gishu and Nandi areas are

milk producing, the business will ensure that the milk produced by the farmers in the area

get a ready market and the milk bought at the right price, to ensure profitability of both

the business and the farmers in the area.

1.1 Executive Summary

Mwangaza Live Women Group (MLWG) is a recently formed Self Help Group to

engage in business start up and expansion, poverty eradication by empowering members

economically, campaign awareness on HIV/AIDS and other pandemics, reduce illiteracy

by sponsoring disadvantaged children to access basic education primarily serving the

community development sector. In view of the foregoing Mwangaza Live Women Group

has put together a competent team and this business plan in order to respond to the

demand. The type of work typically undertaken will comprise: Mwangaza Live Women

Group, Poultry Keeping, Second Hand Cloth (Mitumba) Selling, Cereals Selling,

beverage processing, farming, dairy milk farming, retail shop, vegetable and fruit selling

to economically empower its members to better their livelihood.

The business plan targets to process initially 1000 litres of milk per day and to increase to

1200 litres per day and 1400 litres per day within year two and three respectively. Good

quality milk will be sourced from individual farmers and also from farmer groups and

also own milk at ksh.25 per litre. Initial capital required will be Kshs. 1,800,000 while the

projected profit by the end of 2016 will be 2,037,000.

The business will benefit 20 people directly and 500 people indirectly. The 20 people will

be employed directly by the business as staff of the organization. The other 500 people

will be employed as staff of the respective dairy farms they will be working in. Also

others will get employment in other complementary business for example animal feeds

producing companies, that will see improved market due to increase in demand of animal

feeds for the dairy animals.

1.1 Products and Services

The promoters have identified a niche in the community development programmes in

areas that have not been exhausted currently, particularly the dairy sector. With a wealth

of experience from within the sector, the promoters were encouraged to begin this project

by pilot test through members where small credits were accessed and some members

were encouraged to acquire Milk Cow, today the market demand surpasses the supply

hence the desire to go large scale in this establishment.

Products such as these are currently supplied by the larger business persons leaving the

small producers who cannot afford to access large markets such as taking their milk

products to markets such as Brookside, KCC or Buzeki milk plants. As such, these small

but important products represent a small portion of their turnover; they are seen as a

‘nuisance’ in the relative scale of their overall operations and therefore, quality and

timeous deliveries suffer. The accessibility to these small producers milk products by

Mwangaza Live Women Group in an efficient manner, quality controlled and delivered

to the large plants like KCC at the appropriate times would greatly benefit the members

the small scale milk producers and the national economy.

The Group will have two primary revenues streams: distribution of unprocessed milk to

processing plants and the training of small scale milk producers to maintain their

operational status. The first revenue stream is extremely important to the business’s

bottom line as the distribution services rendered by the Group are in continued demand

despite deleterious changes in the general economy. Additionally, this revenue stream has

very high margins and will ensure the profitability of the business on a monthly basis.

The second revenue center for the business will be the training services distribution of

milk distribution supplies, gasses, and related items that will be purchased primarily by

local contractors (and also individuals that do their own milk distribution). The Group

anticipates gross margins of 50% on all milk distribution sales by the business. The third

section of the business plan will further describe the services offered by Mwangaza Live

Women Group.

1.2 The Financing

Mwangaza Live Women Group is seeking to raise Kshs. 1,800,000 from Uwezo Fund as

loan refundable after two years (24 months). The interest rate and loan agreement are to

be further discussed during negotiation or will be taken as preset by the law. It is intended

to seek financial assistance from the Constituency Development Fund in the form of

Capital Grants for equipment as scheduled herein which will assist in the operational set-

up required and provide jobs to meet with the objectives of this business plan.

1.3 Mission Statement

Mwangaza Live Women Group’ mission statement is to facilitate and enhance economic

development and growth for women and the community at large by enabling access to

sources of finance to establish income generating enterprises and sustainably manage

them.

1.4 Management Team

The ultimate success of Mwangaza Live Women Group will be dependent upon

management’s ability to develop an innovative product line and to cost-effectively

deliver the line to a large and receptive market. Mwangaza Live Women Group’s

founding promoters and the Group advisors and planner comprise high calibre

professional whose experience will create immense synergy for the Group’s success.

These personnel have more than 5 years of experience in the dairy industry and the

general merchandise enterprises. Through their expertise, the proposed plan will be

operated towards profitability within its first year of operations.

Each of the support technical team has contributed substantially to the group in the form

of sweat equity and capital. Management believes that it is addressing a market destined

to grow substantially with a well-conceived line of products. It is confident that both

market share and revenue projections will, at a minimum, be achieved in the projected

time frame.

1.5 Sales Forecasts

Madam Caroline expects a strong rate of growth at the start of operations. Below are the

expected financials over the next three years.

Table 1.1: Profoma Profit and Loss (Yearly)

Year 1 (Kshs) 2 (Kshs) 3 (Kshs)

Sales 11,880,000 14,250,000 16,632,000

Operating Costs 11,929,000 13,563,000 14,595,000

EBITA (49,000) 693,000 2,037,000

Taxes, Interest and Depreciation 134280 332040 592860

Net Profit/loss (85,280) 360,960 1,444,140

Table 1.2: Sales, Operating Costs and Profit Forecast

1.6 Expansion Plan

The members expect that the business will aggressively expand during the first three

years of operation. They intend to implement marketing campaigns that will effectively

target large processing plants, bakery, institutions and individuals within the target

market.

1.7 The Market

Mwangaza Live Women Group will operate in a specialised niche market within the

dairy sector.

1.8 Market Trend

Most forecasters put the current growth of 15% per annum in the dairy sector as set to

last for at least four to five years.

1.8.1 Size and potential

Extensive primary desk research indicates a total market for dairy products into the dairy

sector. The niche identified is approximately Kshs 5 million, for the supply of milk.

1.8.2 Competition

The niche market which Mwangaza Live Women Group has chosen is for the collection

and distribution of milk and milk products as well as training of small scale dairy

farmers. This niche is valued at Kshs 5 Million in the area and there are only two major

competitors and many other small scale distributors. The combined turnover of the above

is approximately Kshs 2 Million the remaining work is carried out by the major milk

collectors.

1.8.3 Customers

This niche market, for small high volume units as described above, is increasing in size

as more and more of the major milk collectors to subcontract their ‘small work’ to a

‘jobbing’ shop geared to handle this type of service. This, together with work promised

directly from milk processors, augers well for the future and points to an increasing need

for the services offered by Mwangaza Live Women Group.

CHAPTER TWO: THE GROUP REGISTRATION

2.0 Group and Financing Summary

2.1 Registered Name and Corporate Structure

MWANGAZA LIVE WOMEN GROUP. The Group is registered as a self help group in

Eldoret West District Kapyemit Location Turbo Division Reg. No.

UG/SS/REG/20264/2013 in May 2013.

Management believes that the initial funding of Kshs.1.8 million will be adequate to

carry the Group through initial profitability. It is anticipated that receivables and

inventory financing from Uwezo Fund sources will be available beginning in the second

quarter of year two. The Group anticipates being able to sustain a gross margin in the

40% range, which exceeds the industry average of 33-36%. Beginning in its third year,

Mwangaza Live Women Group will save a bottom line net income of approximately 9%

to 11% of sales. Management has taken what it believes to be a reasonable approach in

formulating its pro forma financials no additional financing is shown until year two and

lease financing is not proposed as an option.

2.2 Required Funds

At this time, Mwangaza Live Women Group requires Kshs. 1,800,000 of debt funds.

Below is a breakdown of how these funds will be used:

Prescription Year I Year II Year III

Sales 11,880,000 14,256,000 16,632,000

Operating Cost

Loan Installment 900,000 900,000 -

Milk Tanks 160,000 32,000 32,000

Milk Selector 50,000 - -

Direct Material 9,000,000 10,800,000 12,600,000

Direct Labour 240,000 240,000 360,000

Transport 1,440,000 1,440,000 1,440,000

License 10,000 10,000 10,000

Health Certificate 7,000 7,000 7,000

Office 42,000 42,000 42,000

Maintenance 20,000 22,000 24,000

Miscellaneous 60,000 70,000 80,000

Total Operating Costs (11,929,000) (13,563,000) (14,595,000)

EBIT (49,000) 693,000 2,037,000

Tax, Interest and Depreciation 134280 332040 592860

Net Profit/Loss (85,280) 360,960 1,444,140

2.3 Exit Strategy

If the business is very successful, members may seek to sell the business to a third party

for a significant earnings multiple. Most likely, the Group will hire a qualified business

broker to sell the business on behalf of the Mwangaza Live Women Group. Based on

historical numbers, the business could fetch a sales premium of up to 4 times earnings.

2.6 Assumptions Underlying Financial Projections:

Members contribute Kshs.70, 000 cash to Mwangaza Live Women Group in month

one (accomplished).

Depreciation is calculated on all fixed and capital assets assuming five-year lives

and reducing balance computation.

Receivables are 30 days in duration (industry standard is 30 days).

Payables are 30 days (industry standard is 50-60 days), do not begin until month

thirteen, and equal only 50% of inventory costs during the period (trade support is

expected much sooner).

Inventories turn an average of seven times per year (on top of a fixed base of

Kshs.40,000).

Salaries through month 18 are approximately 50% to 75% of industry standard

(higher at lower personnel levels in the Group).

Interest is earned at 8% per annum; Interest is paid at 12% per annum.

Cash purchases are the sum of the previous period’s payable, 50% of inventory

purchases for the period, and current period capital acquisitions.

CHAPTER THREE: PRODUCTS AND SERVICES

3.0 Products and Services

Notwithstanding the disappointing performance over the short term, Mwangaza Live

Women Group management remains convinced that the commodity-priced nature of the

dairy industry makes achieving flexibility while containing costs the key issue in the

management of such companies. Coupling that with growing trade protectionism, foreign

instability, currency exposure, and other business risks endemic to foreign production

leads to the conclusion that metal work assembly of products will become increasingly

more important in the future. Thus, the growth curve has not flattened, but merely been

pushed out on the time axis by two to three years.

3.1 Distribution of Milk Services

The first revenue center for the business will be milk distribution services that will be

performed within the Group’s retail location and on site. At the onset of operations,

Management intends to have two staff collectors that will provide services for the group.

The Group will bill these high margin services on a daily basis and products used in

conjunction with these services. Mwangaza Live Women Group will only hire milk

collectors and distributors that have obtained their licensure for handling milk and have

had at least two years experience as milk collectors and distributors.

3.2 Sales of Milk Products

The business will provide quality milk selected form the highest standard milk suppliers.

3.3 Products and Premises:

A medium term goal of the Group is (5 yrs.) to buy larger more modern premises in the

town. The existing workshop requires some capital improvement in terms of additional

lighting, office and canteen accommodation. Given the Group’s ambition to own their

own premises in the medium term, it is intended that this additional accommodation be

provided by means of “port cabin” type temporary buildings.

Three-phase electrical power is available within the workshop and is adequate for the

needs of the proposed plant and equipment installation. A small secure and fire-proofed

store will be required for the safe storage of paint products and thinners. The capital

expenditure requirement is included in the financial projections appended.

3.3.1 Health & Safety/Employment and Tax Legislation

The members are very aware of the provisions of the Health, Safety and Welfare at Work

Act, and of the hazards present in a handling of milk and distribution. The members will

be preparing a Safety Statement which will be implemented and will ensure safe working

practices and environment for all staff.

The various provisions under Employment legislation, Working Time Directive etc. are

known to the promoters and will be adhered to by the Group. Each employee will be

given a contract of employment upon recruitment and proper books and tax returns will

be maintained.

CHAPTER FOUR: STRATEGIC AND MARKETING ANALYSIS

4.0 Strategic and Market Analysis

As competitive pressures from domestic sources continue to rise, members are being

forced to closely scrutinize their product cost. Industry managers are now compelled to

increase productivity, maintain or improve quality, and reduce labour costs. Otherwise,

they will suffer the same consequences Kenyan milk suppliers did in the 1960’s and

1970’s that is, slowly wither away as a result of foreign competition.

4.1 Economic Outlook

As domestic labour costs continue to increase and the logistics of other regional

production become ever more burdensome, the demand for milk product solutions to

these problems becomes more and more evident. Mwangaza Live Women Group believes

it can realistically capture 3% of the domestic market, or Kshs.54 million by its fifth year

of operations.

Underlying the phenomenal growth anticipated for the metal works product industry is an

equal or faster growth in competition among milk suppliers of a wide range of products

requiring a flexible process as products change. These distributors must find ways to

achieve flexibility while containing costs. Mwangaza Live Women Group’s products

address this issue by incorporating reprogrammability which reduces the need for

additional capital equipment and worker retraining. To the extent the distribution process

is labor intensive, as labor costs rise, Mwangaza Live Women Group’s products can also

reduce the average hourly cost of assembly

4.2 Industry Analysis

Within the Kenya, there are approximately 3,000 companies that specialize in milk

supply services (in a contractual capacity). Each year, these businesses collectively

generate more than Kshs.4 billion dollars per year while employing 35,000 people.

Aggregate payrolls in each of the last five years have exceeded Kshs.1.2 billion. Among

companies that distribute milk and milk products and supplies, there are 5,000 businesses

that cater to the needs of milk processors among all industries. Each year, these

distributors generate Kshs.11 billion of gross receipts while providing payrolls of Kshs.3

billion. This industry employs approximately 60,000 people. Both industries are mature,

and they are expected to grow at a rate similar to that of the general economy and

housing markets.

4.3 Customer Profile

MLWG will reside near the milk suppliers for ease of accessibility and enhancing fresh

milk supply. At the same time, the group intends to own a vehicle that will always help in

the movement around in the collection of milk in cases where the clients are far away

from the office location.

4.4 Competitive Analysis

Currently, there is a wide spectrum of roughly 30 companies addressing the milk

distribution market. As Mwangaza Live Women Group’s strategy is to address the light

manufacturing and electronics markets, this plan does not address milk distribution

focusing on other markets. In addition, Mwangaza Live Women Group management is

convinced that those companies addressing the milk supplies do not represent a

competitive threat to the Group.

Mwangaza Live Women Group management has developed exhaustive files on its

publicly traded competition, but has had difficulty in gathering details relating to non-

traded companies. Conversations with end users of competing products, product

brochures, industry publications, and trade associations have been the primary source for

intelligence on the latter group of companies. Mwangaza Live Women Group

management believes that none of its competitors enjoy a broad enough installed base to

establish insurmountable loyalty. Mwangaza Live Women Group has determined that

purchasing decisions are currently based, in descending order, on the following factors:

Product reliability

Ease of operation

Performance specifications

Price

Mwangaza Live Women Group is convinced that the noted purchase factors will

ultimately determine which suppliers enjoy the most success within the market

4.5 The SWOT Analysis

4.5.1 Strengths

The promoters have a long track record within the building industry and have been

encouraged by the level of support which they have received. Since reputation within the

industry is extremely important this will contribute greatly to securing new customers, in

line with this planned project. The Group enjoys a favourable location situated on the site

of one of the largest industrial sites close to the city centre, and the motorway.

4.5.2 Weaknesses

Financial resources are limited, but this Business Plan details the requirements and

sources from which it is anticipated funding, in addition to the members’ input, will be

forthcoming. As a result of which the Group will be adequately funded to meet the

requirement of the objectives as detailed elsewhere in this submission.

4.5.3 Opportunities

While the immediate plan to achieve targets as identified is confined to the region for the

first two years of operation it is intended to expand into other counties after our

establishment in the marketplace and this will position us to cater for the whole market

valued at Kshs. 5 million nationally. In the medium term it is intended to expand market

opportunities into the long term into North rift.

4.5.4 Threats

The single greatest threat to the Group is that of opportunity loss in terms of the extent of

business being lost due to our current non-trading. This results in orders being lost to

smaller competitors who are being afforded the business, thereby becoming larger and

greater competition.

CHAPTER FIVE: MARKETING PLAN

5.0 Marketing Plan

The domestic market for milk supplies spreads across five major and distinct industries.

This is the market which MLWG will be addressing. In order to achieve the Sales Target

as per the enclosed projections the following strategy has been devised:

Objectives

To achieve a profitability of 5 % return on sales by year 1.

To achieve a 8 % share of the identified market by the end of year 2.

To achieve a profitability of 15 % return on sales by year 2.

To secure ISO 9000 accreditation in the short term.

Medium Term - to buy its own premises in the area.

5.1 Marketing Objectives

Establish relationships with milk plants throughout the targeted market.

Implement a local campaign with the Group’s targeted market via the use of

flyers, local newspaper advertisements, and word of mouth advertising.

5.2 Marketing Strategies

MLWG intends on using a number of marketing strategies that will allow it to easily

access the target market. These strategies include traditional print advertisements and ads

placed on search engines on the Internet. Below is a description of how the business

intends to market its services/products to its target market. Mwangaza Live Women

Group will also use an internet based strategy. This is very important as many people

seeking local services of milk distribution, now the Internet to conduct their preliminary

searches.

The Group will also develop its own online website, which will showcase the inventory,

services offered, information about the owner, and relevant contact information. At the

onset of operations, develop several ongoing purchase order that will not only outsource

milk distribution services to the business, but will also purchase milk supplies for use in

conjunction with their own projects.

5.3 Marketing Plan

5.13.1 Pricing

Currently products are being supplied into the industry at Kshs.25 per litre, by the

existing large suppliers. The Mwangaza Live Women Group set-up for quality batch

production, can collect and distribute for Kshs. 33 selling price and with the use of

modern scheduling techniques, ensuring timely deliveries, can make its desired

contribution and profit targets.

5.3.2 Product

The specialist steel products are manufactured from steel sections readily available from

several sources locally. The sizes, specifications and configuration of these components

vary widely from customer to customer and depends very much on the type of quality of

milk supplied. However, the methods of distribution are similar to all and the workshop

and skilled workforce are set up to cater for this purpose.

5.3.3 Place

Selling is carried out on a direct basis with buyers within the organisations of our

customers. This function will be carried out by our Sales and Marketing Director who

will spend a large proportion of his time engaged in visits to customers promoting the

Group.

Mwangaza Live Women Group intends to maintain an extensive marketing campaign

that will ensure maximum visibility for the business in its targeted market. Below is an

overview of the marketing strategies and objectives of the business. The products, as

described above, will be manufactured in our own workshop, to the individual design of

our customers.

Deliveries post production will be made by contracted transport in two ways:

1) To collect from the farmers

2) Directly to processing plants.

5.3.4 Promotion

An initial Launch of the Group is planned to take place in which all the major suppliers

will be invited. This launch will directly target our customers very specifically and will

immediately put Mwangaza Live Women Group in the market. Thereafter it is intended

to carry on the sales function as described above.

Mwangaza Live Women Group’s marketing strategy encompasses an early stage focus

on 15 to 30 major distributors. Each target customer is known for its innovative

management, relatively high labour costs, and eroding market share over recent years to

foreign competitors.

Product design will follow a stated objective of addressing quality (as manifested in

accuracy, simplicity, speed, and reliability), innovation, service (second to none by

Mwangaza Live Women Group field service engineers, not outside contractors), and

price. Mwangaza Live Women Group management firmly believes that providing quality

products is it’s first and foremost task in achieving its targeted market share.

5.4 Sales Plan

MWANGAZA LIVE WOMEN GROUP will use only in-house sales personnel with

impeccable credentials and extensive product training. Emphasis will be continuously

focused on the needs of the customer. All sales in the first year will be made by home

office based personnel.

CHAPTER SIX: ORGANIZATIONAL STRUCTURE

6.0 Organizational Plan and Personnel Summary

Mwangaza Live Women Group is a self help group with all the shares owned in equal

measure by the members. The combined expertise has allowed for a ‘natural’ division of

responsibilities as detailed hereunder:

Chairperson

10 Years Business Management experience

Work assignment

Health and Safety, Training, Quality Control

Resource allocation

People management

Group Secretary

Administration and Control

Assistant Manager

Certified Diploma in Accounting and Finance

Dip. In Personnel Management

Managing Director

Sales, Marketing

20years experience in building industry (Project Management)

Diploma in Environmental Services

Self employed for 17 years

Apprentices will be recruited and will be required to participate in on-the-job training and

to take part in the national apprentice training schemes and examinations as run by

CPAK. It is intended to offer permanent positions to suitable apprentices on completion

of their training.

6.1 Corporate Organization

CHAPTER SEVEN: FINANCIAL PLAN

7.0 Financial Plan

Full sets of financial projections for the first two/three years of operation are contained in

the Appendices.

7.1.1 Sales

The sales as projected for the first year, based on direct primary research of our potential

customers, are set at:

Year 1:5% of target market.

Year 2:10% of target market

The projected sales are modest given the extent of the potential market of €5.3 million

and our research indicates that these figures are achievable.

7.1.2 Expenses

Full schedule of expenses is contained in the appended projections. The expenses as

calculated are realistic and based on current prices.

7.1 Underlying Assumptions

• MWANGAZA LIVE WOMEN GROUP will have an annual revenue growth

rate of 16% per year.

• The members will seek to acquire Kshs.1,800,000 of debt funds to develop the

business.

• The loan will have a 2 year term with a 12% interest rate.

7.2 Sensitivity Analysis

The Group’s revenues are moderately sensitive to the general economy. During times of

economic prosperity, new houses (and renovations) will be developed requiring a larger

amount of milk distribution services and supplies. During deleterious economic climates,

the business’s top line income may be reduced as these services will not have the same

level of demand. However, the Group will generate a continuous stream of revenue from

contractors that require milk distribution services/products. As such, the business will be

able to remain profitable in any economic climate.