A Comprehensive Business Plan for Organic Milk Production and Sales

This report presents a comprehensive business plan focused on organic milk production, addressing the growing market demand for fresh and healthy dairy products. It begins by identifying the lack of organic milk as a significant market problem and highlights the health benefits associated with organic consumption, such as increased nutritional value and reduced exposure to chemicals. The plan outlines a business model that focuses on revenue generation through organic milk sales and milk products, cost management, and customer segmentation, targeting children, teenagers, and the elderly. The report emphasizes the importance of sustainable practices, including the use of local resources for animal fodder, waste management, and the adoption of technology like smartphone apps and milking robots to improve efficiency and animal welfare. Furthermore, it evaluates the feasibility of the business idea by assessing sales, customer feedback, and the shift in consumer preferences from non-organic milk. The report concludes by emphasizing the potential of the organic milk business to provide value to both consumers and farmers, provided they are properly educated and trained to manage the business sustainably.

Running head: THINK BIG
Think Big
Name of the Student:
Name of the University:
Author’s Note:

2THINK BIG
Table of Contents
Introduction......................................................................................................................................3
Effective explanation of the customer/market problem that needs solving and/or the reason the
innovation is required......................................................................................................................3
Persuasive argument of the benefits to be generated by the idea....................................................4
Discussion of the proposed business model....................................................................................6
Critical success factors to be managed during execution of the idea..............................................7
Evaluation of the feasibility of the idea...........................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

3THINK BIG
Introduction
One of the most significant problems that are existing in the market is the lack of fresh
and pure organic products. People all over the world have become very health cautious and they
want food that will give them proper health benefits. People are also falling sick due to the
consumption of organic milk that is often affected due to the usage of the pesticides and the other
artificial materials. So, there must be the introduction of a new business in the market that of
organic milk production (Guthman, 2014).
Effective explanation of the customer/market problem that needs solving and/or the reason
the innovation is required
One of the growing concerns of the modern day scenario is getting fresh, organic food.
One major food item among them is milk. This is one of the most important food items that are
needed by all the people belonging from different age groups (Lauer et al., 2018). This is such a
food item that is needed by children, the teenagers, the young adults and the adults and the older
people as well. Doctors prescribe milk to all these people for proper bone density and growth.
However, people often purchase milk and other milk products but they of the overlook the
process in which they are made. Nonorganic milk and the milk products are often available at a
comparatively lower price (Flubacher, Sheldon & Müller, 2015). The nonorganic milk and other
dairy products come from cattle that are reared in the concentrated cattle houses and are also
given a lot of chemicals every day. These are pharmaceuticals that can cause many harmful
diseases in human beings. These animals are injected with high dose chemicals that cause the
optimum production of milk in the animals. This causes several diseases within children and

4THINK BIG
other human beings as well. So, this assignment will deal with a new business idea of cultivating
organic milk which will help the farmers on one hand and will provide fresh and disease free
milk to the consumers (Ferreiro, Gayoso & Rodríguez-Otero, 2015).
Persuasive argument of the benefits to be generated by the idea
The benefits that will be generated from this business idea are many and are of varied kinds.
This will generate many advantages for the farmers and for the consumers as well (Maji et al.,
2017). The first and the basic advantage is that the consumers will get more nutritional value
from the consumption of the organic milk. Omega 3 is one of the essential nutrients that will be
received by the consumption of the organic milk. There must be some SMART objectives that
the framers must have while using this method of organic dairy farming.
 S-simple, sensible and significant
 M-meaningful and motivating
 Agreed, attainable
 R-relevant, reasonable
 T-time bound
Smart-these farmers must keep in mind that they are working for a very important business goal.
Their goal is to serve fresh and disease free, chemical free milk to the consumer. The farmers
will want to accomplish this goal by keeping in mind that they will have to use the sustainable
resources. A good example can be the use of electric power (energy care). Farmers often use the
diesel generators and these are often very costly. So, they can start using the biogas for the
heating and the chilling purposes (Čuboň et al., 2014).

5THINK BIG
Earth care- The farmers must bring fresh fodder from the locally available resources of the
village rather than going for the artificial conventional cattle feed or the artificial market animal
fodder. The urine, manure and other wastes are to be collected n a compost pit so that there is no
pollution due to these activities (Meier et al., 2015).
Measurable- The farmers have to measure the number of units that they want to produce. The
farmers who will be switching on to this idea of organic dairy products have to be careful about
the number of cows that they will be taking. They have to make the investment in a very cautious
way. They have to select the right breed so that the money is not wasted on the wrong choice
(Payling et al., 2015).
Achievable- This goal will be achievable when the farmers will have proper education and
training; it is the duty of the farmers to be responsible enough so that they can get a proper idea
about the animal management and the animal care. They have to be alert to the fact that there are
some very special techniques that they need to learn so that they do not commit any mistake.
They can go for many farmer workshops, campaigns, agricultural development centers and other
such organizations that will give them.
Relevant- This is really the right time to switch onto this kind of an idea because there is really
the need of fresh, organic food in the market (Garcia & Teixeira, 2017).

6THINK BIG
Discussion of the proposed business model
Key partners
They can
partner with
some
veterinarians
who will give
regular
treatment to
the cows and
the other
animals.
Key activities
The key activities will be to
provide fresh and chemical
free organic milk and other
Milk products
Key resources
They will mainly be
utilizing the resources
available on a local basis.
Like making the animal
fodder from the locally
obtained grass
Value proposition
They will be
generating health
values for the
customers and
economic values for
themselves as well.
Customer relationship
They have to give maximum
priority to the customers as
it is mainly targeted at
promoting better health of
the customers by providing
nutritious values.
Channels
The channels will
mainly be
advertisement through
social media
Customer segments
The customer
segment will include
the kids who are in
need of highly
nutritious and
nonorganic food. Y
will also target the
teenagers who need
protein food their
growth, and also the
old and the elderly
people.
Cost structure
The farmers will require some amount of cost for
maintaining the sustainability of the business and must
make the business decisions properly.
Revenue
Revenue will mainly be generated from the growth of the
business and from the amount of organic milk and the
organic milk products that will be sold.

7THINK BIG
Critical success factors to be managed during execution of the idea
As the time is changing, the farmers have to switch over to the use of some technical and
smartphone applications as well. They can learn the usage of some of the smartphone apps that
will help them to use the app and damage their cattle in a very friendly and an easy manner. They
have to make sure they are not exerting too much pressure on the cows for milking. They have to
reduce the pressure on the cow and protect it from the painful milking process and at the same
time they have to save themselves from the burden of getting up every single morning at an early
hour like 5 or 6 am (Schader et al., 2014). They can switch over to the usage of a smartphone app
that will help the farmers to move the cows to and from their grazing field very easily. They can
also use the milking robot technology that will help the cows get milked very easily without
being subjected to any kind of pain. The farmers will be still around the farms but at the same
time will be able to save their time and energy for using it for other purposes.
Evaluation of the feasibility of the idea
The evaluation of the idea will be done by checking the sale at the end of the year. This
can be done by seeing the exact amount of milk that is being sold to the customers. They will be
able to evaluate it best by taking feedback and opinions from the customers. This will help the
farmers to know how much they have been able to improve themselves and whether the
customers are being satisfied by their services or not. If the farmers find that the customers are
switching their choice from the nonorganic milk and milk products to the organic milk, then the
business firm can be assured of the fact that their business idea has been feasible and it is well
accepted.

8THINK BIG
Conclusion
Thus, it can be concluded that this business of producing organic milk is indeed a very
good business idea and it can be used for generating many good values, both for the customers
and the farmers as well. However, the business cans only flourish properly if the farmers should
be educated and trained properly. They must know how to handle the cows properly and also
maintain overall sustainability.

9THINK BIG
References
Čuboň, J., Foltys, V., Haščík, P., Kačániová, M., Ubrežiová, I., & Kráčmar, S. (2014). The raw
milk quality from organic and conventional agriculture. Acta Universitatis Agriculturae
et Silviculturae Mendelianae Brunensis, 56(5), 25-30.
Ferreiro, T., Gayoso, L., & Rodríguez-Otero, J. L. (2015). Milk phospholipids: Organic milk and
milk rich in conjugated linoleic acid compared with conventional milk. Journal of dairy
science, 98(1), 9-14.
Flubacher, M., Sheldon, G., & Müller, A. (2015). Comparison of the Economic Performance
between Organic and Conventional Dairy Farms in the Swiss Mountain Region Using
Matching and Stochastic Frontier Analysis. Journal of Socio-Economics in Agriculture
(Until 2015: Yearbook of Socioeconomics in Agriculture), 7(1), 76-84.
Garcia, J. M., & Teixeira, P. (2017). Organic versus conventional food: A comparison regarding
food safety. Food Reviews International, 33(4), 424-446.
Guthman, J. (2014). Agrarian dreams: The paradox of organic farming in California (Vol. 11).
Univ of California Press.
Lauer, M., Hansen, J. K., Lamers, P., & Thrän, D. (2018). Making money from waste: The
economic viability of producing biogas and biomethane in the Idaho dairy
industry. Applied Energy, 222, 621-636.
Maji, S., Meena, B. S., Paul, P., & Rudroju, V. (2017). Prospect of organic dairy farming in
India: A review. Asian Journal of Dairy and Food Research, 36(1), 1-8.

10THINK BIG
Meier, M. S., Stoessel, F., Jungbluth, N., Juraske, R., Schader, C., & Stolze, M. (2015).
Environmental impacts of organic and conventional agricultural products–Are the
differences captured by life cycle assessment?. Journal of Environmental
Management, 149, 193-208.
Payling, L. M., Juniper, D. T., Drake, C., Rymer, C., & Givens, D. I. (2015). Effect of milk type
and processing on iodine concentration of organic and conventional winter milk at retail:
implications for nutrition. Food chemistry, 178, 327-330.
Schader, C., Jud, K., Meier, M. S., Kuhn, T., Oehen, B., & Gattinger, A. (2014). Quantification
of the effectiveness of greenhouse gas mitigation measures in Swiss organic milk
production using a life cycle assessment approach. Journal of cleaner production, 73,
227-235.