Does the business of Milk ATM make any sense in Kenya?

Milk ATM Business In Kenya; a new cash-cow in town and it is known as the milk dispenser or milk ATM. It works like a traditional bank ATM with the only difference being that it swallows coins and gives out milk (simply put). Well this is not exactly a new idea here in Kenya because several supermarkets are already offering it but according to our research by Tassmatt, a Milk ATM Manufacturer and Supplier in Kenya, there is still a lot of potential in this emerging opportunity waiting to be fully realized.

With so many upcoming estates in our urban centres and with abundance of raw milk from our hardworking farmers, there is absolutely no reason why you should not be milking some profits from this opportunity. Here’s how you can get started.

Step One: Find A Good Location

The secret to success in this business lies in achieving a large volume of sales per day. You therefore should locate your business in an area that is adequately populated. The more walk-in customers your milk ATM can attract, the better. But what if finding such a location proves difficult? Well, worry not.

You can approach your nearest supermarket or mini-market and negotiate a revenue sharing agreement. Like there is one guy from Rongai who has partnered with Tuskys. They will give you the space and you will give them the machine and milk to dispense. Smart…isn’t it?

Step Two: Choose A Good Milk ATM Machine in Kenya

Choose a machine that does not strain your budget and one that has enough capacity to sustain your customers’ demand. You can start small with a 200 litre machine and then graduate to a bigger 1000 litre machine as demand rises.

As for purchasing the machine you can buy one locally from Tassmatt Limited . Locally manufactured machines are cheaper…and as you know, it’s a good idea to BUY KENYA, BUILD KENYA. Here are some tip that will come in handy in your search for a good milk ATM machine.

Step Three: Arrange With Farmers and Suppliers For Milk

Yes your business will be located in the urban centres but in order to get quality and consistent milk supplies you will need to link up with farmers or suppliers. As part of your planning, take time to visit the surrounding rural areas and compare cost before settling on the most feasible source.

Don’t take chances. Have your suppliers sign a contract with you…that way you will be sure they’ll not sell your milk to anyone else and leave your supplies hanging.

• Look for high quality milk that is not adulterated with water
• The Kenya Dairy Board requires only pasteurised milk to be sold. Try to find farmers who can supply pasteurised milk…not raw milk.
• If you can’t find pasteurized milk, don’t worry. You can invest in a pasteurizer and be purchasing cheap raw milk. Smart idea!
• A litre of raw milk will cost you 35/- at the farms while a litre of pasteurized milk will cost you 50/-.

Step Four: Get Licensed

You will need a license from the Kenya Daily Board which will cost you Ksh2,500 with a one-time application fee of Ksh600. This is of course in addition to the county single business permit which may vary from Ksh5,000 in remote counties to as high as Ksh20,000 in urban counties like Nairobi and Mombasa.

Tassmatt Agency helps in obtaining of all the mentioned licenses and permits upon purchase of Milk ATM Machine

HINT: Areas that fall in Machakos, Kiambu or Kajiado counties tend to have cheaper single-business permit charges than ones in the core Nairobi despite their proximity to the city (Examples: Ongata Rongai (Kajiado), Syokimau (Machakos), Githurai 45 (Kiambu), Kahawa Sukari(Kiambu), Kahawa Wendani (Kiambu), Ruaka (Kiambu), Mlolongo (Machakos), Kitengela (Kajiado)).