The Essential Requirements for Starting a Milk ATM Business in Kenya
Are you looking for a profitable and sustainable business idea in Kenya? Do you want to tap into the huge demand for fresh and affordable milk in the country? If yes, then you should consider starting a milk ATM business. But how do you start a milk ATM business in Kenya? What are the essential requirements for starting a milk atm business in Kenya? Find out below in this post.
What is a milk ATM business?
A milk ATM business is a dairy milk vending business that sells fresh and pasteurized milk to customers at an affordable price. A milk ATM business is a low-cost and high-return business that can generate income and improve livelihoods.
The Essential Requirements for Starting a Milk ATM Business in Kenya
Before you start a milk ATM business in Kenya, you need to have some essential requirements that will ensure your success and compliance with the regulations.
The following are the main requirements for starting a milk ATM business in Kenya:
- A milk vending ATM machine: This is the core equipment for your milk ATM business. This is the machine that dispenses milk to your customers according to the amount of money they pay. The machine is automated and has a PLC (programmable logic controller) that sends accurate signals to the pump to pump out the right amount of milk as per the amount of money keyed in.
The machine works the same way as a petrol station vending machine. You just key in the amount of money the customer is paying and it dispenses the equivalent amount of milk. A milk vending ATM machine also has a PLC that allows you to calibrate the price per litre of milk. This way, you can set your own price and adjust it according to the market demand and supply. The machine also has a display that shows the amount of money paid, the amount of milk dispensed, and the balance.
A milk vending ATM machine is connected to a storage tank that holds the milk. The tank has a capacity of 100 to 200 litres, depending on the size of the machine. The tank is also refrigerated to keep the milk fresh and prevent spoilage. The machine also has a mobile money option for payment.
- A milk chiller (optional): A milk chiller is an optional requirement for your milk ATM business, especially if you don’t stock so much milk beyond what the milk ATM tank can hold. However, if you sell a lot of milk and you need to stock more than what the holding tank inside the milk ATM can hold, then you need to go for a milk chiller. A milk chiller is a device that keeps the milk at low temperatures (below 4 degrees Celsius) that bacteria responsible for making milk get spoiled can’t survive.
A milk chiller can hold up to 1000 litres of milk and can be connected to the milk ATM machine using pipes. A milk chiller helps you to keep milk fresh for a long time without getting spoilt. It also helps you to reduce wastage and losses due to spoiled milk. A milk chiller also enables you to buy milk in bulk from your supplier at a lower price and store it for future use.
- A milk pasteurizer (optional): A milk pasteurizer is also an optional requirement for your milk ATM business, if you buy already pasteurized milk from your supplier. However, if you collect milk on your own from farmers, then you need to pasteurize it. Pasteurization is the process of heating milk to a high temperature (above 70 degrees Celsius) for a short time (15 to 30 seconds) and then cooling it rapidly.
Pasteurization kills any harmful bacteria that may be present in the milk, such as those that cause brucellosis disease. Pasteurization also extends the shelf life of the milk and improves its quality and taste.
A milk pasteurizer is a device that heats and cools the milk using a water jacket. The water jacket is a double-walled tank that has water in between the walls. The water is heated by an electric heater or a gas burner and then transfers the heat to the inner tank that holds the milk.
The milk is then cooled by a heat exchanger that uses cold water. A milk pasteurizer does not heat the milk directly, but indirectly through the water jacket. This prevents the milk from burning and losing its natural taste. A milk pasteurizer can pasteurize up to 1000 litres of milk per hour depending with capacity and method of heating.
Pasteurization is also a requirement by the Kenya Dairy Board (KDB) that all milk sold via ATM must be pasteurized. This is to ensure that the milk is safe and healthy for human consumption. The KDB also inspects and certifies the milk pasteurizers and the milk ATM machines to ensure that they meet the standards and regulations.
- A reliable source of milk: A reliable source of milk is one of the most critical aspects of your milk ATM business that you must get right. You need to have a supplier who can provide you with consistent, timely, and quality milk. If you can get a supplier who performs well against these parameters, then you are good to go. Otherwise, not being able to meet these requirements means that you will lose customers and spoil your reputation as a business or individual.
There are two main ways of sourcing milk for your milk ATM business. You can either buy milk from a dairy cooperative or a milk processor, or you can collect milk from farmers directly. The choice depends on your preference, budget, and availability of milk in your area. Buying milk from a dairy cooperative or a milk processor has the advantage of getting pasteurized and standardized milk that is ready for sale. However, this may be more expensive and less profitable than collecting milk from farmers.
Collecting milk from farmers has the advantage of getting fresh and raw milk that is cheaper and more profitable than buying pasteurized milk. However, this requires you to have your own milk pasteurizer and a reliable transport system. Whichever way you choose to source your milk, you need to ensure that the milk is of high quality and meets the standards set by the KDB. You also need to ensure that the milk is handled hygienically and stored properly to avoid contamination and spoilage.
- An accessible business premises: An accessible business premises is another essential requirement for your milk ATM business. You need to choose a premises where there is good traffic of people and near residential houses. This will make it possible for customers to come out of their houses with bottles for buying the milk. If the business is far from residential houses, even if there is foot traffic, it might discourage people from coming to buy because mostly people don’t move around with empty bottles.
An accessible business premises also means that the premises is visible, secure, and spacious. You need to ensure that your milk ATM machine is visible to potential customers and that it has a signboard that advertises your business. You also need to ensure that your premises is secure from theft, vandalism, and damage. You can install CCTV cameras, alarms, and locks to protect your machine and your milk.
You also need to ensure that your premises is spacious enough to accommodate your machine, your storage tank, your chiller, your pasteurizer, and your customers. You also need to have a clean and hygienic environment that attracts customers and complies with the regulations.
- A business permit: A business permit is a requirement for any legally operating business in Kenya. You need to visit your county offices to get a business permit for your milk ATM business. A business permit is a document that authorizes you to conduct your business in a specific area and for a specific period of time. A business permit also shows that you have paid the required fees and taxes to the county government.
A business permit is important for your milk ATM business because it shows that you are a legitimate and compliant business owner. It also protects you from harassment and penalties from the authorities. A business permit also helps you to access other services and benefits from the county government, such as loans, grants, and training. To get a business permit, you need to fill an application form and submit it to the county offices.
You also need to pay a fee that varies depending on the size and location of your business. You also need to provide some documents, such as your ID, your PIN, your KRA certificate, and your lease agreement. You also need to undergo a health inspection and a fire inspection to ensure that your premises is safe and sanitary. Once you get your business permit, you need to display it conspicuously at your premises.
- A food handling certificate: A food handling certificate is another requirement for your milk ATM business, especially if you are handling raw milk. A food handling certificate is a document that shows that you and your staff have undergone a medical examination and a training on food hygiene and safety. A food handling certificate is issued by the county health department or a certified health facility.
A food handling certificate is important for your milk ATM business because it shows that you and your staff are healthy and fit to handle food products. It also shows that you and your staff have the knowledge and skills to handle food products hygienically and safely. A food handling certificate also helps you to avoid diseases and infections that may be transmitted through food products, such as typhoid, cholera, and salmonella.
To get a food handling certificate, you need to visit a health facility and undergo a medical examination that includes a blood test, a stool test, and a chest x-ray. You also need to attend a training on food hygiene and safety that covers topics such as personal hygiene, food storage, food preparation, food packaging, food transportation, and food disposal. You also need to pay a fee that varies depending on the health facility and the county. Once you get your food handling certificate, you need to renew it every six months.
- A clean water source: A clean water source is the last but not the least requirement for your milk ATM business. You need to have a clean water source for washing the equipment for handling milk and also the surfaces and the premises where you operate your milk ATM business. Water is essential for maintaining hygiene and sanitation, as well as preventing contamination and spoilage of the milk. Water is also used for cooling the milk pasteurizer and the milk chiller.
You can get a clean water source from various sources, such as boreholes, wells, piped water, or rainwater harvesting. However, you need to ensure that the water is safe and suitable for your milk ATM business. If you have the resources invest in a domestic water purifier which will guarantee you constant supply of clean and safe to drink water. You need to test the water quality regularly and treat it if necessary. You also need to store the water properly and avoid wastage.
A clean water source is not only a requirement for your milk ATM business, but also a benefit for your customers and the environment. By using clean water, you can ensure that your milk is of high quality and that your customers are satisfied and healthy. You can also reduce your environmental impact and conserve water resources.
Essential requirements for starting a milk atm business in Kenya- Conclusion
Starting a milk ATM business in Kenya is a great idea that can generate income and improve livelihoods. However, you need to have some essential requirements for starting a milk atm business in Kenya as discussed above that will ensure your success and compliance with the regulations. To recap them these requirements are:
- A milk vending ATM machine
- A milk chiller (optional)
- A milk pasteurizer (optional)
- A reliable source of milk
- An accessible business premises
- A business permit
- A food handling certificate
- A clean water source
Buy a milk ATM from Saset, the home of high-quality dairy milk dispensers in Kenya
In this post, we have discussed the essential requirements for starting a milk ATM business in Kenya. Let us now show you why Saset Ltd is the best place to buy high quality milk ATM business equipment in Kenya.
If you are looking for a reliable and reputable supplier of milk ATMs in Kenya, the most recommend manufacturer is Saset Limited. We are the leading manufacturer of milk ATMs in Kenya. We have many years of experience in the industry since 2017. Our milk ATMs guarantee you of they offer high-quality build, durability, and affordable milk ATMs that meet your needs and expectations. We also offer installation, training, and after-sales service to ensure that your milk ATM business runs smoothly and efficiently.
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Get In Touch
Call us on +254726747403 or +254783747403
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Or send us an email: info@saset.co.ke
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