Business Management

Whether you have an existing dairy foods business or are thinking of starting a new value-added dairy foods business, a solid foundation in business management practices will help your enterprise be successful. Starting a new dairy foods business requires careful self-assessment, research and planning. This section of the website will guide you as you consider the management, marketing, and financial implications of starting or growing your value-added dairy foods business and determine your path forward.

Business Management

Operating a dairy foods processing business requires managing numerous facets including marketing, human resources, finances, and risk management in addition to processing operations. Businesses of all types and sizes can benefit from assembling a team to provide input and perspective on all of these aspects and to guide business owners in planning and decision-making. Business planning provides both new and existing dairy processors with the framework to set business goals, analyze their current financial situation allowing them to determine financing needs and budget for the future, develop a marketing strategy, and determine risk management needs such as insurance.

Marketing

Successful marketing is the foundation for a successful business, and this starts with knowing and understanding your consumers and dairy food trends, such as fluid milk, cheese, and ice cream, to make sure the products you choose to make will be successful with consumers. Part of business planning is the development of a marketing strategy.

Dairy processors will need to determine whether they will market direct to consumers, for instance with an e-commerce site, at farmers’ markets, or with an on-farm store. Marketing and selling through wholesale establishments such as grocery stores and restaurants is another option.

Having a quality dairy food product and knowing your target consumer is not the complete puzzle. Items must be strategically priced as well. An enterprise budget such as the one Penn State Extension has developed for farmstead and artisan cheesemaking can help determine your cost of production, the first step in setting prices. From there you can utilize a number of pricing methods, and objectives and strategies to meet profitability goals for your business.

Business and product promotion is a key aspect of marketing. There are many promotional tools that you can use, from email to websites to social media. These tools allow you to effectively connect, engage, and communicate with consumers.