Number of Pages: 49

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Chapters: 1 - 5



This project work titled “A feasibility study on the production of yogurt” a case study of Fan Milk Nigeria Plc, Oregun – Ikeja has been written to p-rovide an intensive knowledge of the practical aspect of producing yogurts in addition to the theories which involves the economical and nutritional benefits of yogurts already learnt by the researchers.

This study will look into the production processes with Fan Milk Nigeria Plc, Oregun – Ikeja. The coverage of the subject matter is extensive but the presentation has been condensed into the form of study notes for easy comprehension.

The sources of data used on completion of this research work are both primary and secondary which would be analyzed using the Chi Square (X2) statistical instrument.

Research on the production of yogurt would be made and necessary recommendation would be analyzed thereof.


Title Page





Table of Content


1.0     Introduction

1.1     Background to the study

1.2     Historky of Fan milk Nigeria Plc.

1.3     Statement of problems

1.4     Purpose/aim and Objectives of the study

1.5     Research Questions

1.6     Statement of Hypothesis

1.7     Scope of the study

1.8     Significance of the study

1.9     Limitation of the study

1.10   Definition of Terms



2.1     Introduction

2.2     Yogurt Production

2.3     Varieties of Yogurt

2.4     Nutrients

2.5     Ingredients

2.6     General manufacturing procedure

2.7     How to store/Preserve yogurt

2.8     Health benefits of yogurt



3.0     Introduction

3.1     Research Population

3.2     Sampling size

3.3     Source of Data collection

3.4     Research Instrument

3.5     Statistical Tool

3.6     Decision Rule



4.0     Introduction

4.1     Analysis of Data

4.2     Analysis of Objectives

4.3     Testing of Hypothesis

4.4     Discussion of Findings



5.1     Summary

5.2     Conclusion

5.3     Recommendation





Yogurt is a fermented milk product produced by bacterial fermentation of milk. With reference to the Oxford English Dictionary; It is a thick white liquid food; mostly made by adding bacterial to milk and often flavored with fruit. As explained by Fan Milk Nigeria Plc “Yogurt is a favorite breakfast, lunch or snack food made by the friendly natural bacterial fermentation of milk. It is basically a form of curdled milk but with less fat”.

Yogurt is a widely enjoyed dairy product that is essentially an altered form of milk containing waste product from fermentation. The lactic acid that is produced from the fermentation of lactose contributes to the sour taste of yogurt by decreasing PH and allows for the characteristic texture by acting on the proteins (Zourar, Accolas & Desirazeaud 1992). Yogurt has been continually studied for its health benefits particularly from the additions of probiotics. Current research has been investigating how to improve yogurt both in terms of its potential as a healthy food and as an appetizing product that appeals to the general population. The role of lactic acid bacterial (BAL)are widely appl,ied in various fluid including agriculture especially the field of food.


Yogurt production could be considered as a particular case batch or semi-continuous production process. The research community has study this type of production process during the last twenty (20) years. One of the main features of batch processes is that a large number of product are produced from a few initial product recipes. The same holds for yogurt production. Final yogurt production may differ in at least one of the following features:

  • Fermentation recipe type origin
  • Total cup weight
  • Number of cup per piece
  • Labeling depending on their customer destination
  • Flavours and packaging cup type (material shape etc).

Packaging rates may significantly tarry from one product to another.

The word yogurt comes from Turkey and refers to a tart, thick milk. Yogurt does not have one single origin, however, it is generally agreed among historians that yogurt and other fermented milk products were discovered accidentally as a result of milk being stored by primitive methods in warm climates.

Most historical accounts attribute yogurt to the Neolithic peoples of central Asia around 6000 B.C.Herdsmen began the practice of milking their animals and the natural enzymes in the carrying containers (animal stomachs) curdled the milk essentially making yogurt not only did the milk then keep longer, it is thought that people preferred the taste so continued the practice, which then evolved  over centuries into commercial yogurt making.

Recorded history states that Genghis khan, the founder of the MONGOL Empire, and his armies lived on yogurt. It wasn’t long before word of the perceived health benefits of yoghurt traveled through to other peoples, and the consumption spread  throughout the east.

The first industrialized production of yogurt is attributed to Isaac Carusso in 1919 in the Barcelona-his company “Danone” was named for his son “little Daniel”. Turkish immigrants brought yogurt to north America in the 1700s but it really didn’t catch on until the 1904s when Daniel Carassso, the son of  Danone founder Isaac, and Juan Metzger took over a small yogurt factory in the Bronx, New York the company is now called Dannon in the united states.

Yogurt with fruit on the bottom was first introduced in 1947 by Dannon. The popularity of yogurt soared in the 50s and 60s with the boom of the health food culture and is now available in many varieties to suit every taste and lifestyle.


Fan Milk Nigeria Plc was founded in 1960 by a Danish merchant and industrialist Erik Emborg with a recombination plant at Ibadan, a distribution center in Lagos with less than thirty (30) employees.

The plant produced fresh milk from imported milk powder. Initially, the product range was white milk, chocolate milk, cottage cheese and set yogurt. The main outlet was bicycle vendors supplied with cold product from a growing number of smaller depot.

In the 1970, Fan Milk introduced yogurt drink, ice lollies, ice cream and new tetra pak packaging technology. The new product became very popular in the market and generated the financial strength to set up further depot and in 1981; a second recombination plant in Kano came up.

At the outset, the foreign partner owned 96% of fan Milk Plc. When the government introduced the Nigeria Enterprises Promotion Decree in the late 1970s, Fan Milk plc increased its capital and invited more Nigerian to invest which created a 60% Nigerian participation in the company.

During the 1980s and 1990s, import restriction, economic difficulties, devaluation and shortages of fuel weakened Fan Milk plc. In 1988, the foreign partners and the industrialization fund for developing countries (Denmark) agreed to an infusion of capital which led the company restructure finances, refurbish cold rooms, increase the number of depot and introduce a product, tampico, a fruit drink which became an instant success in the market.

The expansion and the rehabilitation programme return Fan Milk Plc to profitability. Fan Milk has sister companies in Ghana, Senegal, Togo, Benin, Burkina Faso and Cote d’ voire. The head quarters of the foreign partners, Fan Milk International is situated in Aalborg, Denmark


There are various problems attributed to the production of yogurt. The problems that may be encountered during and after the production are as follows:

  1. Usage of inadequate equipments and machinery may lead to improper production of yogurt. This will have a negative effect in the production and sales of yogurt as it also have an effect on the public.
  2. Improper usage of the right proportion of materials, products or chemicals in the production process will have a negative effect on the public which will eventually have an effect on the production of yogurts.
  • Low interest rate: The sour taste of yogurt made consumers to have low interest in its consumption. This may discourage the producers and affects the production process.
  1. Inadequate power supply: The state of power supply in the country (Nigeria) is very poor. Producers need to incure extra expenses to enable power supply. This may discourage the producers in the production of yogurt.
  2. Lack of good storage facilities to keep raw materials and the finished products may also lead to low production output of yogurts in the economy.


          The objectives of the research study will be:

  1. To examine the necessary procedures involved in the production of yogurts
  2. To examine the suitable source of Raw materials in producing yogurt
  • To evaluate an effective marketing strategy of yogurt production.
  1. To investigate the structure and composition of yogurt and its size in the company (Fan Milk Plc.)


There are many questions that need to be asked as regards the feasibility report. These are likely questions:

  1. Does yogurt production have a positive impact on the economy?
  2. Does the company prepare (Fan Milk Plc) adequate facilities towards the making of the product (Yogurt)?
  • Is yogurt production a means of employment opportunity?
  1. Does yogurt production have an effective marketing strategy?


This research tends to achieve it aims by considering the following hypothesis:

  1. Ho: Yogurt Production does not have a positive impact on the economy
    Hi: Yogurt production have a positive impact on the economy
  2. Ho: The company does not prepare adequate facilities towards the making of yogurt
    Hi: The company prepares adequate facilities towards the making of yogurt
  • Ho: Yogurt Production does not serve as a means of employment opportunity
    Hi: Yogurt production serve as a means of employment opportunity
  1. Ho: The product does not have effective marketing strategy
    Hi: The product has effective marketing strategy


The scope of this research project is critically to appraise the consequence of yogurt production in small scale business. It will cover rational for it induction and the Impact of yogurt production in small scale business. Attempt would be made to collect data from 80 cadre staff of Fan Milk Nigeria Plc through interview and questionnaire data collection method which could be analyzed and interpreted.



          The research work would be carried out in order:

  1. To establish high quality production of yogurt in a small scale business and also in wholesale business
  2. to provide potential entrepreneur information for various means or aspect of the project.
  • To motivate and encourage the limitation of poor storage facilities
  1. To provide a technology means for refrigerating production equipment and frozen storage.


In this project work, the following are the hindrances experienced during the research work:

Time constraint: the time given to conduct the research was short, thereby limiting the researcher in exploring or expanding the research study.

Financial constraint: This limit the freedom of the researcher in expanding his research due to lack of money because of which the research cannot buy something pertaining to the research study.

Attitude of the Employees: Generally the attitude of people to research instrument was not encouraging. Except for the few members of respondents who appreciated the importance of the research work, many other treated the researcher unkindly, one respondent still did not return the questionnaire despite repeated expensive duties. Notwithstanding, these limit the researcher’s result validity and relevance.


  1. Pasteurize Milk: This is a heated milk for the purpose of killing harmful organisms, such as bacteria, viruses, protozoa, molds and yeasts
  2. Homogenize: This is a treatment specifically for milk so that the cream no longer separated.
  3. Package: The material used to pack something (Yogurt)
  4. Probiotic: Encouraging the growth of bacteria that have a good effect on the body
  5. Streptococcus: A type of bacteria, some tpes of which can cause serious infections and illness.
  6. Ferment: To experience a chemical change because of the action of yeast or bacterial, often changing sugar to alcohol.
  7. Flavor: A substanve used to produce a taste.
  8. Cream: The thick pale yellowish-white fatty liquid jthat rises to the top of milk.
  9. Yogurt: A thick white liquid food; made by adding bacteria to milk, served cold and often flavoured with fruit
  10. Calorie: A unit for measuring how much energy food will produce.
  11. Bacteria: The simplest and smallest forms of life. Bacteria exist in large numbers in air, water soil, living things, dead creatures and plant.
  12. Lactose: A type of sugar found in milk and used in some babyt foods.
  13. Lactic acid: An acid that forms in sour milk and is also produced in the muscles during hard exercise.
  14. Cholesterol: A substance found in blood, fat and most tissues of the body.
  15. Calcium: A chemical element. It is a soft silver-white metal that is found in bones, teeth and chalk.
  16. Dairy: A place on a farm where milk is kept and where butter and cheese are made.
  17. Raw material: A basic material that is used to make a product
  18. Production: The process of growing or making food, goods or materials especially large quantities.
  19. Vocational: Connected with the skills, knowledge etc. that you need to have in order to do a particular job.
  20. Small scale: (of an organization) not large in size or extent
  21. Congulate: When a liquid becomes thick and partly solid
  22. Lactobacillus: A type of bacteria that produces lactic acid.
  23. Temperature: The measurement in degrees of how hot or cold a thing or place is
  24. Evaporated milk: Thick sweet milk sold in cans, often served with fruit instead of cream
  25. Skimmed milk: Milk that contains less fat than normal because the cream has been removed from it.
  26. Probiotic: Encouraging the growth of bacteria that have a good effect in the body.
  27. Savoury food: A small amount of a food with a salty taste, not a sweet one, often served at a party.
  28. Amino acid: any of the substances that combine to form the basic structure of proteins
  29. Milk: The white liquid produced by cows, goats and some other animals as food for their young and used as a drink by humans
  30. Milk powder: Dried milk in the form of a powder.


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