NAAS Score – 4.31

Free counters!


Previous Next

Cost of Production of Low Fat Milk ‘Coagulum’ Rings Incorporated With Optimized Level of Unripe Banana Powder and Banana Peel Powder

H. Lalawmpuii Geeta Chauhan S. K. Mendiratta Tarun Pal Singh Vishal Kumbhar
Vol 8(7), 212-219

Milk coagulum can be efficiently utilized for the preparation of an acceptable ready to eat milk based snacks milk ‘coagulum’ rings. Besides nutritive value and sensory acceptability of food products, the cost factor also determines greatly its market feasibility. In the present study, the milk ‘coagulum’ rings were extended with pre-optimized level of fiber rich extenders namely unripe banana powder (11%) (T1) and banana peel powder (6%) (T2). It was observed that the incorporation of these extenders reduced the cost of production of milk ‘coagulum’ rings. The cost of production per Kg of product was ₹ 473.94, ₹ 433.27 and ₹ 446.38 for control, T1 and T2 respectively. Considering the sale price of ₹ 55.00 per 100g of product, a profit per 100g packet was the highest for T1, a profit of ₹ 7.00, ₹ 11.00 and ₹ 10.00 each can be obtained from control, T1 and T2 respectively. Thus, it can be concluded that the formulation cost of product extended with 11% unripe banana powder was the lowest and the production of the same can be adopted effectively to generate income by unemployed entrepreneurs and to provide easy access of high quality milk coagulum based products at a lower cost.

Keywords : Milk ‘Coagulum’ Rings Unripe Banana Powder Banana Peel Powder Cost Analysis

India is the leading milk producer in the world and the milk production had increased tremendously in the past few years (DAHD, 2017). Milk has been an important part of the Indian diet, but lack of cold chain system and transportation problem has always been the limiting factor in the efficient utilization of the produced. On the other hand, protein malnutrition has been a major problem in the country and the high cost of animal protein often is the bar for easy access to fluid milk and other animal protein source.

Although milk is rich in all nutrients such as protein, fat, vitamins and minerals, it has almost negligible content of dietary fiber. India produces about 19% of world’s banana, and both the unripe banana pulp and banana peel are reported to have high fiber content (Menezes et al., 2011; Wachirasiri et al., 2009). The unripe banana pulp and banana peel is converted into powder form and can be incorporated as fiber rich extender in several products (Ovando-Martinez et al., 2009; Asif-Ul-Alam et al., 2014; Ramli et al., 2009). This will not only help in nutrient enrichment, but maybe useful in reducing the wastage of farm produced, value addition and shelf life extension of dairy product. Processing of animal and plant produce has thus the potential of solving major problems of agriculture surpluses, wastages, unemployment and uncertain prices. The change in lifestyle and food habits associated with urbanization results in increase demand for value added food products. Besides nutritive value and sensory acceptability of food products, the cost factors also determine greatly its market feasibility.

The present study was undertaken to incorporate pre-optimized level of extenders viz; unripe banana powder and banana peel powder in low fat milk coagulum rings (MCR) and further, the cost of production of the control was compared with those extended MCR.

Materials and Methods

Source of Raw Materials

Pasteurized milk (a combination of cow and buffalo milk) for pursuing this study was procured from Dairy Technology Section of Indian Veterinary Research Institute, Izatnagar, and Bareilly (U.P). Other ingredients like green and ripe banana, wheat flour, refined wheat flour (maida), refined salt (Tata Chemicals Ltd., Mumbai), baking powder, sugar, spice ingredients and colorless PET jar of 500g capacity etc. were procured from local market of Bareilly. The spice ingredients were freed from extraneous material, dried and grounded to fine powder. The ingredients were sieved through a fine mesh and mixed in suitable proportion to obtain the spice mix. The spice mix was stored in a sterilized plastic container for further use. Food grade chemicals were procured from Qualigens, Mercks, Hi Media and CDH.

Preparation of Unripe Banana Powder and Banana Peel Powder

Unripe banana powder (UBP) was prepared by cutting peeled banana in to 1 cm slices and dipping it in 0.3% (w/v) citric acid solution followed by drying at 50°C in an oven, grounded, sealed and stored at 25°C for further use (Rodrı´guez-Ambriz et al., 2008; Agama-Acevedo et al., 2012). Banana peel powder (BPP) can be prepared by separating peels from the pulp and washing, dipped in 0.5% (w/v) citric acid solution for 10 min, drained and dried in an oven and grounded in a Mill (Retsch AS200) to pass through 40 mesh screen (Alkarkhi et al., 2010).


Preparation of Milk ‘Coagulum’

Milk ‘coagulum’ was prepared by following the coagulation procedure of Bhattacharya et al. (1971) with alterations made as per the requirements of the experiment as shown below.

Heating of milk to 90°C with constant stirring followed by cooling at 80°C

Coagulation with citric acid solution (2%)

Removing of whey by straining using muslin cloth

Holding for 30 min to allow whey to drip

Preparation of milk ‘coagulum’ rings

Blending of milk coagulum in Atta kneader (2-3 min)

Addition of binders, spices, salt, sugar etc.

Continue blending for another 2- 3 min

Molding into shape of a ring

Cooking in convection followed by microwave

Drying in hot air oven at 50°C for 12 h.

Sensory evaluation and sample analysis

Result and Discussion

Raw Material Cost

Raw materials are the basic ingredients in the manufacture of any products. Cost will fluctuate, both in frequency and in magnitude in present existing marketing scenario. These fluctuations may generate an inaccurate base for profitability analysis, pricing decisions, product development, or future production planning. Furthermore, it also affects every aspect of value chain and it becomes critical to understand. The costs of ingredients/Kg and total raw material are presented in Table 1 and Table 2 respectively.

Table 1: Cost of the ingredients used in the development of milk coagulum ring

Name of Ingredients Cost (₹/Kg)
1 1.5% milk coagulum 150
2 Wheat flour 30
3 Refined wheat flour 30
4 Spice mix 500
5 Banana peel powder 50
6 Unripe banana flour 100
7 Sugar 40
8 Salt 15
9 Baking powder 300
10 Citric acid 400

Table 2: Cost of raw materials required for preparation of 100 kg formulation (per day processing)

Ingredients Control (1.5% milk coagulum Treatment (11%Unripe banana flour) Treatment (6% Banana peel powder)
Quantity (Kg) Cost (₹) Quantity (Kg) Cost (₹) Quantity (Kg) Cost (₹)
Milk coagulum (1.5% milk fat) 85.4 12,810 70.7 10,605 77.4 11,610
Wheat flour 5 150 5 150 5 150
Refined wheat flour 5 150 5 150 5 150
Unripe banana flour 11 1100
Banana peel powder 6 300
Salt 1 15 1 15 1 15
Sugar 0.8 32 0.8 32 0.8 32
Spices 1.3 650 1.3 650 1.3 650
Baking powder 1.5 450 1.5 450 1.5 450
Total 100 14,257 100 13,152 100 13,357

The economics was worked out with the following technical assumptions:

  1. Per day production of MCR is 100 Kg
  2. The unit remains in production 300 days in a year i.e. 25 days in a month, therefore monthly production target of MCR is 100 Kg X 25 = 2500 kg/month.
  3. Cost of ingredients is calculated on the basis of prevalent market rate in the local market.
  4. To estimate the accurate cost of production of MCR under commercial conditions, the expenditure incurred in terms of recurring items including labour charges, water and electricity charges, depreciation on machineries, rent, capital investment and its interest, non-recurring charges including cost of machines, equipment and utensils has been taken into consideration.
  5. Income is considered from the sale of MCR
  6. Cost of milk per litre: ₹ 30/Litre
  7. Yield of milk coagulum from milk = 20% (200g/l of milk)
  8. Cost of 1 Kg (200g/l X 5) milk coagulum = 5 X ₹ 30 = ₹150/-
  9. Labour cost per labourer is ₹ 350/- for skilled labour and ₹ 200 for unskilled labour.
  10. Cost of electricity is ₹ 6.0/unit.
  11. Market sale price of MCR: ₹ 55.00/100g

Depreciation Cost of Processing Equipments

Depreciation cost is a systematic and rational process of distributing the cost of tangible assets over the life of assets and presented in Table 3.

Depreciation @10% per annum = 362300/-

Depreciation cost/day = 36230/-

= ₹ 362.30/annum

=Rs. 120.77/day (300 working days/annum)




Table 3: Depreciation cost of equipment used for processing of milk coagulum rings

Equipment No. of items required Rate (Rate/item) Total ()
Processing equipment
Cream separator 1 50,000 50,000
Hot air oven 1 50,000 50,000
Microwave oven 1 10,000 10,000
Electric atta kneader 1 2,500 2,500
Weighing balance 1 5,500 5,500
Cooling equipment
Refrigerator (500 l) 2 20,000 40,000
Split A.C (1.5 ton) 3 30,000 90,000
Gas burner setup 1 1,500 1,500
Gas cylinder 2 1,400 2,800
Geyser 1 10,000 10,000
Utensils and furniture (knives, muslin cloth, tables etc.) 100,000
Total 362,300

Electricity Charges                                 

The cost of electricity incurred for processing of 100 kg of product can be calculated as shown in Table 4. Therefore the cost of electricity = 76.1KWh × ₹ 6/ KWh= ₹ 456.6 ~ ₹ 457/day

Table 4: Cost of electricity

Equipment Watts X hr KWh
Cream separator 1000 x 1 1.0
Refrigerator 150 x 2 x 20 6
Hot air oven 150 x 1 x 20 3
Microwave oven 250 x 2 0.5
Geyser 2000 x 6 12
Fans/weighing/mixer 500 x 10 5
Electric grinder/mixer 300 x 2 0.6
Air conditioners 2000 x 3 x 8 48
Total units 76.1

Labour Charges

The labor cost can be calculated as:

Skilled labour = ₹ 350×2 = ₹ 700/day

Unskilled labour = ₹ 200×3 = ₹ 600/day

Total labour cost = ₹ 1300/day

Packaging Cost

MCR should be aerobically packaged in PET jar of 500g capacity. The cost of one PET jar is ₹ 5/- and for packing of 100 kg of products (100 g each), 1000 PET jars are required. Therefore, cost of packaging material is ₹ 5000/day.

Cost of Water

Water is the basic necessity and most essential nonfood ingredient in any processing plant and it is required at each step of product processing. The cost of water can be reduced by obtaining municipal water supply and an amount of ₹ 25/day will be sufficient as the cost of water.

Building Rent

A building in a semi urban area/locality, which has sufficient space to hold the entire unit processing and for setting up a small scale product processing unit with all required facilities will cost around ₹10,000 per month. Working days in a month are 25. So the rent comes to about ₹400/day.

Maintenance Costs

The day-to-day materials in use are detergent, soap, sanitizers etc. These are required to maintain the equipment, building and premises hygienically and would cost approximately ₹250 per day.

Marketing Costs

Marketing costs include the commission to be paid for wholesalers, agents, retailers and transportation costs and come to be about 10%, the cost of bulk packaging and transportation to around to around 3% of retail prices of the finished products. Therefore, the total marketing cost works out to be 13% of the retail price of the products.

Total Expenditure

The sum of all above cost account for total cost for the processing of 100 kg formulation of MCR per day is shown in the Table 5. The cooking yield was around 52.89%, 54.15% and 53.63% for control, treatment 1 and treatment 2 respectively. However, a safety margin of 1-2% is to be considered to compensate for losses that might occur during various steps of processing, packaging and marketing. Thus, final yield of 52, 54 and 53% can be considered practical.

Retail Cost     

Cost of production of MCR was calculated by taking into account the cost of formulation, overhead production cost and dealer commission. The overhead production cost for production of milk rings was estimated by considering cost of raw materials, charges for labor, rent, electricity, water, dealer commission and marketing cost. The cost of production of 100 Kg MCR of control, unripe banana powder and banana peel powder incorporated MCR are given in Table 5 and the production cost per Kg was calculated on the basis of cooking yield, the highest obtained for control followed by T2.


Table 5: Cost (₹) of 100 kg formulation of ‘Milk coagulum rings’/day

Particulars Control Treatment 1 (11% Unripe banana powder) Treatment 2 (6% banana peel powder)
Raw material cost 14,257 13152 13357
Cost of machineries

(Depreciation cost)

120.77 120.77 120.77
Cost of electricity 457 457 457
Packaging cost 5,000 5,000 5,000
Labor cost 1300 1300 1300
Building rent 400 400 400
Maintenance cost 250 250 250
Cost of water 25 25 25
Total processing expenditure (₹) 21809.77 20704.77 20909.77
Transportation cost (3%) 654.29 621.14 627.29
Dealer commission (10%) 2180.98 2070.48 2090.98
Marketing cost (13%) 2835.27 2691.62 2718.27
Total expenditure (₹) 24645.04 23396.39 23628.04
Yield percentage 52 54 53
Cost of production of 1 Kg MCR (₹) 473.94 433.27 446.38
Cost of production of 100g MCR (₹) 47.40 (≈₹48/-) 43.32 (≈₹44/-) 44.64 (≈₹45/-)

Product Yield

Weight of the batter prepared and the weight of the final product after cooking and drying were recorded to calculate the product yield as follows-

The cost of production of T1 was the lowest i.e. 440 per kg. The total income was calculated by difference of sale price of 100g of MCR and the cost of its production and shown in Table 6.

Table 6: Income and total profit from milk coagulum rings

Group Income/100g Income/Kg Total profit/day Total profit/month
Control 7 70 7000.00 175,000.00
T1 11 110 11000.00 275,000.00
T2 10 100 10000.00 250,000.00

The income per kg of MCR was the highest for T1 and was calculated as ₹110.00 per Kg of MCR. Assuming the production capacity of the unit as 100 Kg per day, a total profit of ₹275,000.00 can be generated in a month from the production of MCR extended with 11% unripe banana powder (T1).

Total income (₹) = Total sale price- Total cost of production

MCR (control) = 55-48= 7

MCR (with unripe banana powder) = 55-44 = 11

MCR (with banana peel powder) = 55-45 = 10


Many of the agricultural waste and by-products are often a good nutrient source. Unripe banana powder and banana peel powder being a rich fiber source, value addition of milk products with fiber rich extenders enables producers to deliver nutrient enriched products at a reduced cost. The incorporation of unripe banana powder and banana peel powder as fiber rich extender at 11% and 6% respectively lowers the production cost of MCR as compared to the control. Therefore, the above mentioned scheme can be utilized to generate income by unemployed youth or can be taken up at industrial level to provide easy access of high quality milk protein to the mass population. Thus, unripe banana powder and banana peel powder can be successfully incorporated to reduce the formulation cost of the MCR and other dehydrated milk products.


Authors are thankful to the, ICAR-IVRI for providing necessary facilities and financial support.


  1. Agama-Acevedo, E., Islas-Hernández, J. J., Pacheco-Vargas, G., Osorio-Díaz, P. and Bello-Pérez, L. A. 2012. Starch digestibility and glycemic index of cookies partially substituted with unripe banana flour. LWT – Food Science and Technology. 46: 177-182.
  2. Alkarkhi, A. F. M., Ramli, S., Yong, Y. S. and Easa, A. M. 2010. Physicochemical properties of banana peel flour as influenced by variety and stage of ripeness: multivariate statistical analysis. As. J. Food Ag-Ind. 3(03): 349-362.
  3. Awasthi D., Jaggi R., PadmanandA V. Manual for Entrepreneurs: Food Processing Industry. ISBN 0-07-058580-6. Published by Tata McGraw-Hill Publishing Company Limited, 7 West Patel Nagar, New Delhi 110 008.
  4. Bhattacharya, D. C., Mathur, O. N., Srinivasan, M. R. and Samlik. O. L. 1971. Studies on the method of production and shelf life of paneer (cooking type of acid coagulated cottage cheese). J Food Sci Technol. 8:117–120.
  5. Rodrı´guez-Ambriz, S. L., Islas-Herna ´ndez, J. J., Agama-Acevedo, E., Tovar, J. and Bello-Pe´rez, L.A. 2008. Characterization of a fibre-rich powder prepared by liquefaction of unripe banana flour. Food Chemistry. 107: 1515–1521.
  6. Asif-Ul-Alam, S. M., Islam, M. Z., Hoque, M. M. and Monalisa, K. 2014. Effects of Drying on the Physicochemical and Functional Properties of Green Banana (Musa sapientum) Flour and Development of Baked Product. American Journal of Food Science and Technology. 2(4): 128-133.
  7. Menezes, E. W., Tadini, C. C., Tribess, T. B., Zuleta, A., Binaghi, J., Pak, N., Vera, G., Dan, M. C. T., Bertolini, A. C., Cordenunsi, B. R. and Lajolo, F. M. 2011. Chemical Composition and Nutritional Value of Unripe Banana Flour (Musa acuminata, var. Nanicão). Plant Foods Hum Nutr. 66: 231–237.
  8. Ovando-Martinez, M., Sáyago-Ayerdi, S., Agama-Acevedo, E., Goñi, I., Bello-Pérez, L. A. 2009. Unripe banana flour as an ingredient to increase the undigestible carbohydrates of pasta. Food Chemistry. 113: 121–126.
  9. Ramli, S., Ismail, N., Alkarkhi, A. F. M and Easa, A. M., 2010. The Use of Principal Component and cluster analysis to differentiate fibre components. Tropical Life Sciences Research. 21(1): 91–100.
  10. Wachirasiri P, Julakarangka S and Wanlapa S. (2009). The effects of banana peel preparations on the properties of banana peel dietary fibre concentrate. Songklanakarin J. Sci. Technol. 31 (6), 605-611.
Full Text Read : 2687 Downloads : 500
Previous Next

Similar Articles

Open Access Policy