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Condensed milk production plant
The project aims to establish a state-of-the-art condensed milk production facility, where we focus on utilizing best practices in farming and processing. The project includes the following:
Production processes: Condensed milk will be manufactured from fresh cow’s milk, adhering to food safety and quality standards.
Infrastructure: The facility includes advanced production units and state-of-the-art technology to ensure production efficiency and product safety.
Distribution: Condensed milk will be distributed through multiple channels, including supermarkets, supermarkets, and distributors, to ensure that the products reach the largest number of customers.
Study content
Rationale for choosing the project
Job creation: The project will create 25 to 30 direct jobs and 200 to 250 indirect jobs, contributing to the local economy.
High Internal Rate of Return (IRR): The internal rate of return (IRR) is expected to reach 12-15%, reflecting the economic viability of the project.
Meeting Growing Demand: The project aims to meet the growing demand for condensed milk in the local market, reducing dependence on imports.
Quality and reliability: Focusing on using high-quality ingredients and manufacturing processes that ensure the safety of the product, which enhances consumer confidence.
Supporting local farmers: By partnering with local farmers, the project will support the local agricultural economy and strengthen the supply chain.
Demand analysis
Market growth: The condensed milk (EVAP) market in the GCC region has witnessed remarkable growth over the past years. Between 2016 and 2018, condensed milk exports from Saudi Arabia increased by 43%, reflecting the growing demand for these products. This trend is expected to continue given increasing nutritional awareness and rising demand for dairy products.
Lifestyle changes: With increasing population and urbanization, lifestyle is changing towards faster and more convenient consumption. Consequently, the need for packaged and processed food products, such as condensed milk, which is used in a variety of applications such as confectionery and beverages, is increasing.
Increasing population: Saudi Arabia’s population is expected to continue to increase, increasing the demand for food and beverages. This increase means that there is a growing need for condensed milk in various sectors, such as the confectionery and catering industry.
The trend towards healthier products: There is a growing trend towards the consumption of healthy and nutritious products. Thanks to its nutritional value and delicious taste, condensed milk is a good choice for many consumers.
Changes in consumer behavior: Consumers in Saudi Arabia are showing an increasing interest in high-quality and nutritious products. Condensed milk is a popular product that is used in many local dishes, boosting its demand.
Increasing use of condensed milk in food products: Condensed milk is used in a variety of products, including desserts, beverages, and canned foods, increasing overall demand.
Financial indicators
Capital: SAR 8 million
Rate of return on investment: 8%
Expected annual profit SAR 640,000
Return on Investment (ROI): 8%
Payback Period: 12.5 years
Investment advantages
High rate of return: Due to the steady and growing demand for condensed milk, a high rate of return on investment can be expected.
Low operating costs: Using modern production techniques, production costs can be minimized, boosting profit margins.
Strategic location in the Kingdom: The plant can be located near raw milk sources and major distribution markets, reducing transportation and distribution costs.
Sustainable future: With continuous improvement in operations and production, the plant can achieve long-term sustainability in the local and global market.
Keeping pace with food shifts: With the growing interest in improved and nutritious foods, this is a project that fits the new trends in the food industry.
Features of the project
Utilizing modern technologies in production: The plant will use the latest technology in the production of condensed milk, ensuring product quality and minimizing operational costs.
Achieving diversity in products: The possibility of adding different flavors or types of condensed milk to meet the needs of different markets.
Utilize local raw materials: The raw materials needed to produce condensed milk can be sourced from local farms, reducing production costs and promoting economic sustainability.
Contribute to food security: The project enhances the Kingdom’s ability to produce basic foodstuffs locally, thus reducing dependence on imports.
Providing job opportunities: The project will provide many job opportunities for citizens, boosting local economic development.
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