1. Dairy Industry - At A Glance
2. Dairy Farming
3. Milk Powder
4. Processed Cheese
5. Casein
6. Ice Cream
7. Ghee
8. Paneer
9. Milk Toffee

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PROCESSED CHEESE

INTRODUCTION

Cheese is the product made from the curd obtained from whole or skimmed milk, with or without added cream, by coagulating the casein and further treatment, of the separated curd by ripening ferments, special molds or seasoning. Cheese has not been the popular item of food in India mainly because animal rennet is used in the its preparation. Preparation of such as surti panner, bandal and Ducca Cheese, which are popular in certain parts are allied to cheese.

Composition of Cheese

Variety of Cheese	Fat %	Protein %	Matose & % Ash	Water
Cottage	0.40-1.90	12.70-21.00	0.20-1.00	71.40-79.90
Neufchatel	23.00-28.00	18.00-21.00	0.50-1.25	50-55
Swiss (American)	30-34	26-30	3-5	30-34
Cheddar (Green)	30-36.79	30-36.79	3.12-7.02	32.69-43.89
Brick	28.34-33.77	20.03-23.29	1.68-4.20	39.61-45.26

Processed cheese is generally prepared from natural cheese having different varieties with different moisture content.

The natural cheese manufactured all over the world are classified in the following groups as 80-55% moisture content 55-45% moisture content 45-34% moisture content, 34-13% moisture content. The mozzarella cheese is included into the 55-45% moisture group and cheddas cheese in the 45-34% moisture group.

The processed cheese prepared from these two and also other cheese have very good market potential.

Composition of Processed Cheese

Moisture	--	47% Max
Fat	--	40% of dry matter Min.
Salt	--	3% Max
Stabilizer/Emulsifier	--	4% Max
Scorbic Acid	--	0.1 %
or Nisin	--	0.1 %

B.I.S. SPECIFICATION

B I S (1964) IS : 2785, Specification for hard cheese, processed cheese and processed cheese spread. Details can be had from :

Bureau of Indian Standard

Manak Bhawan,

9, B.S. Zafar Marg,

New Delhi.

MARKET SURVEY

Milk is one of the essential item of daily life in our country and it is more so as a majority of Indians are vegetarian and thus milk and milk products are indispensable necessity. The per capita consumption of milk was about 190 gms. per day at present as against 108 gms. during 1969-71. To achieve this goal, there is a need to make available milk and milk products to the people at reasonable price which can only be attained by setting up small scale modern dairy units in different milk producing areas to catter to the local needs. The development of this important agro-based industry will help in generating employment opportunities in the milk producing areas as well as in the consuming centers through well-knit market channels.

PROCESS OF MANUFACTURE

This type of cheese (paneer) is generally made of skim milk. The milk for best result should be pasturized. The process may be divided into following steps.

1. Selection of milk and cream separator.
2. Setting of milk
3. Cutting or breaking of curd
4. Cooking curds
5. Draining or dipping
6. Curd knitting
7. Salting
8. Pressing
9. Conversion of natural cheese into processed cheese.

(1) Selection of milk and cream separator -- The milk is selected as desired under the heading of milk for cheese. Raw milk containing the fat is taken and pour into the cream separator. The cream present in the milk is separated out and now the skim milk is ready for cheese making.

(2) Setting of the milk -- Setting means preparing warm milk with starter and rennet extract or paste in order to form a smooth curd block in the vat. It may be either an acid iso-electric casein curd, set with starter only, or a sweeter, calcium paracassein curd, set with both starter and rennet extract.

(3) Cutting of curd -- A horizontal-wire knife is carefully inserted at the long end of the vat into the curd buttom with a swing gate motion. It is held upright and steadily pushed forward to the opposite end scrapping the floor of the vat. Then it is withdrawn, moved over one knife width, and is inserted. The knife is pushed back carefully on a slightly overlapping track. These movements are conducted on the uncut curd bed until all of it is in strips. The horizontal wire knife is not used to cut across the rat.

A vertical wire knife is then inserted and pushed forward in the same careful manner down the long path of the curd bed, withdrawn and reinserted, until all the area is cut once. Then it is removed and inserted to cut a cross the curd bed.

(4) Looking the curds -- Introduction of heat through the cut curds and whey for a specific time period, generally accompanied by agitation, constitutes cooking. For rennet curd cheese like cheddar, no water is let into the vat jacket. Steam alone in the vat jackets gives good maximum temperature control a very necessary requirement of rennet curd cheese.

(5) Draining whey or Dipping curds -- Draining of whey through a metal strainer. It requires 15 to 60 minutes.

Dipping is an alternative means of whey and curd separator.

(6) Curd knitting and transportation -- The knitting and transformation step entails a time period, usually following curd drainage, which permits the accumulating lactic acid to charge the curd chemically.

(7) Salting of Curds -- The salting step consists of spreading coarse salt over the curd surfaces manually, mechanically or by immersing the pressed cheese under brine. The salting of cheese improves of cheese improves its flavour, texture and appearance. The salting of various cheeses varies form 1 to 10 percent.

(8) Pressing -- The cheese prepared above is pressed into block sizes.

(9) Conversion of natural cheese into processed cheese

Natural cheese mild to sharp in flavour, after roper selection and cleaning by persons experienced in the art, are shredded or otherwise reduced in size, and heated at high temperatures in either steam-jacketed kettles or direct steam injector (vertical or horizontal closures or openers) stainless steel cookers. The melted cheese in the cooker initially separates into a fat and serum phase until the introduction of suitable emulsifying salts.

Heating, emulsification and unloading of the molten cheese requires only a few minutes. If the process is delayed, oiling off, body thickening, browing, and other undesirable features may result. At the proper time the blended smooth, textured, hot mass is ejected from the cooker into hoppers and packaged by high speed machines.

PROCEDURES

Selecting, Trimming and Reducing Cheese

8:00 A.M.

Select from cheese storage stocks, coded natural cheese lots of mild, medium, and sharp flavour-Lot size and number are determined by the final flavour desired in the processed cheese. In the mild flavour lots, no more than 15 percent of the cheese should be of acid or green character. Make a series of computations to arrive at the proper fat and solids-not-fat when a specific blend is to be processed, taking into account additives and water of condensation.

Let small-size cheese warm up to about 70oF (21.1oC). Strip the bandage or film off the cheese and scrape the surfaces very thinly with a sharp-edged, angled metal blade to remove the loose wax, mold, and other surface encrustations. Mechanical scraping machines may be used.

Grinding the Cheese

10:00 A.M.

For small-size cheese manufacturer, cut the wheels or blocks into quarters or fifths, and place them in separate bins. The division should be uniform for each lot. Then reduce them in a meat grinder or in a chopper. Large manufacturers grind or pulverize whole wheels and blocks without quartering, and blend the natural cheese lots cold as pre-mixes in stainless steel wagons with the necessary salt and emulsifiers.

Heating the Cheese

10:30 A.M.

Turn on the steam, usually 10-15 p.s.i. for jacketed steam kettle and higher for direct steam. Insert the blend, or the separate cheese components, into the kettles or the horizontal cookers. Heat with slow agitation, between 50-80 rpm, for block cheese.

Adding Water, Salt, and Emulsifiers

10:45 A.M.

Add enough water to attain the moisture content of the final cheese (as for example, in Cheddar cheese, of 39.9%), taking into account from previous experience either the loss from evaporation in steam-jacketed kettles, or the gain from the steam condensate of the direct steam injection, horizontal cookers. Then insert enough sodium chloride to give the cheese a total level of 2.5-3.0%. Natural Cheddar cheese already has about 1.4% salt. Optionally introduce annatto or appropriate other color up to 4 fluid oz. per 100 lb. cheese.

Some Emulsifier Blend Samples

1% sodium citrate plus 1% disodium phosphate

or

2% anhydrous disodium phosphate plus 0.3% trisodium phosphate

or

2% anhydrous disodium phosphate plus 1% sodium phosphate

(Graham salts ie polyphosphate)

Add 1.5%-3% emulsifier combination of choice to raise the pH of the finished cheese to 5.6-6.8. Emulsifier additions are preferably made before the temperature of the cheese attains 120oF (48.9oC) and may be in dry form or suspended in water.

Not the various texture changes in the cooking kettle. At the first heating stage, a clear layer of fat occurs. After the addition of emulsifying salts and when the temperature is at 135oF, (57.2oC), the butter oil layer disappears and a rough-textured homogeneous curd appears. At 158oF, or higher, the hot, emulsified curd mass assumes a velvety sheen.

Striking the Batch

11:00A.M.

At 158-176oF (71-80oC), hold the cheese for 3 min, then immediately empty the contents of the cooker into a filler. Conduct a confirming moisture and a pH determination on the hot cheese.

Filling Containers

Fill the hot plastic mass immediately into metal foil-lined, or plastic film boxes of 1/2 to 5-lb. capacity, and load the containers, after proper labeling, into standard cardboard cases. Hold the cases inverted at room temperature for 4-18 hrs. Filled cases are coded with the date and lot number. Then store at 40oF (4.4oC) but do not freeze. Run further analytic tests including the melting.

MACHINERY & EQUIPMENT SUPPLIERS

Filtron Engineers Ltd.

117-A, Vithalwadi Road,

Pune - 411 030

Tel. : 440068, 444079

Fax : 477913

Redson Engrs. Pvt. Ltd.

F-9/B, Ist Phase,

IDA, Jeedimetia,

Hyderabad - 500 055

Tel. : 895262, 263585

Fax : 896236

Raylons Metal Works

J.B. Nagar,

Ram Krishna Mandir Road,

Andheri (W),

Mumbai - 400 059

Tel. : 8323288, 8325932

Fax : 6236062

SUPPLIERS OF RAW MATERIAL

SODIUM CITRATE

M/s. Citrugia Biochemicals Ltd.,

Neville House, J.N.

Heredia Marg, Ballard Estate,

Bombay - 400038.

M/s. Delhi Drugs (P) Ltd.,

Munshi Niketan,

1/10-B, Asaf Ali Road,

New Delhi - 110 002.

M/s. Iris Laboratories (India),

Plot No. 379, Phase - II,

G.I.D.C. Vatva,

Ahmedabad - 382 445,

Gujarat.

DISODIUM PHOSPHATE

M/s. Allipo Chemicals,

219, D I D C Makarpura,

Baroda - 390010.

M/s. Chemco Fine Chemcials,

Neelkanth Vihar, B-14, 4th Floor,

Plot No. 28-29, Garodia Nagar,

Ghatkopar,

Bombay - 400077.

RENNET ENZYEME

M/s. Arun & Co.,

2C, Kitab Mahal 1st Floor,

192, Dr. D.N. Road,

Bombay - 400001.

Phones : 2044026, 2047224, 2047928.

M/s. National Dairy Research Institute,

Karnal - 132001

(Haryana).

M/s. Deptt. of Biotechnology,

7-8th Floor, Block - 2,

C.G.O. Complex,

Lodhi Road,

New Delhi - 3.

FOOD COLOURS

M/s. Iduchem Industries Pvt. Ltd.,

National Insurance Building,

Dr. Netaji Road,

Bombay - 400001.

M/s. K.C.A. Pvt. Ltd.,

Chandralaza,

Chandni Bazar,

Ram Nagar - 361001.

PLASTIC CONTAINER

M/s. Century Plastics,

152 A To Z Industrial Estate,

G. Kakam Marg,

Bombay - 400013.

M/s. Supreme Industries Ltd.,

The 17/18, Shah Industrial Estate,

Veera Desoo Road,

Andheri - West,

Bombay - 400058.

PLANT ECONOMICS

Rated Plant capacity	=	350.00 KGS/day
	=	105000.00 KGS/annum
		PROCESSED CHEESE

Basis

No. of working days	=	25 days/month
	=	300 days/annum
No. of shifts	=	1 per day
One shift	=	8 hours
		PROCESSED CHEESE 260 KGS/DAY
		CREAM 90 KGS/DAY

LAND & BUILDING

1.	Open land required 500 sq. mtrs. @ Rs. 750 per sq. mtr.	Rs.3,75,000.00
2.	Production hall 200 sq.mt.including milk clending cooking operation space @ Rs. 1500/- per sq. mtr.	Rs.3,00,000.00
3.	Cheese pressing and cutting packing space 50 sq. mt. @ Rs. 1500/- per sq. mtr.	Rs.75,000.00
4.	Milk godown storage for cheese and starter etc. air conditioned space 50 sq. mt. @ Rs. 1500/- per sq. mtr.	Rs.75,000.00
5.	Office 50 sq. mtr. @ Rs. 1800/- sq. mtr.	Rs.90,000.00
6.	Toilet	Rs.10,000.00
7.	Cost of air conditioning	Rs.1,25,000.00
	TOTAL	Rs.10,50,000.00

PLANT & MACHINERY

1.	Cheese Vat (Jacketed) (S.S) Cap : 2000 lits	No. 1	Rs.75,000.00
2.	Cheese Vat (Jacketed) (S.S) Cap : 250 lits	No. 1	Rs.15,000.00
3.	Cream Separator Cap:1000-2000 lit/h of milk with 5 Hp motor with agitator Chamber is made of (S.S)		Rs.90,000.00
4.	Milk Cans (Aluminium alloy) 40 lits, 20 lits	Nos. 100	Rs.32,500.00
5.	Cheese cutting table (S.S) (2m X 2m)	No. 1	Rs.20,000.00
6.	Cheese knives 3/8" or 1/2" (vertical and horizontal both)	No. 4	Rs.5,000.00
7.	Cheese Hoops Cap : 25 kgs	Nos. 6	Rs.10,000.00
8.	Cheese Press Hydraulic vertical	No. 1	Rs.35,000.00
9.	Cheese Grinder (S.S) Cap : 100 kgs/hr.	No. 1	Rs.30,000.00
10.	Ghee kettle (S.S) Pre-stratification Cap : 250 kgs	No. 1	Rs.15,000.00
11.	Weighing balance platform type Cap: 500 kgs. max		Rs.20,000.00
12.	Weighing balance, weighs 10 kgs.		Rs.1,500.00
13.	Deep freezer large vertical, multidoor	Nos. 2	Rs.1,00,000.00
14.	S.S. Pump	No. 1	Rs.7,500.00
15.	Bulk CoolerCap : 2000 lits	No. 1	Rs.35,000.00
16.	Plastic Vats Cap : 500 lits each	No. 2	Rs.10,000.00
17.	Centrifuge for fat test (both electrically/ manually tested)	No. 2	Rs.50,000.00
18.	Boiler (oil fired) 500 kgs steam/hr.		Rs.3,50,000.00
19.	Cheese filling and packaging m/c automatic type.		Rs.2,75,000.00
20.	Processed cheese kettle (S.S Jackated type) Cap: 25 kg/50 kg per hr.		Rs.20,000.00
21.	Pipe fittings, Pumps, valves and other		Rs.65,000.00
	TOTAL		Rs.12,61,500.00

OTHER FIXED ASSETS

1.	Office equipment, furniture plus other equipment & accessories	Rs.45,000.00
2.	Electrification, Water	Rs.40,000.00
3.	Installation & Erection	Rs.75,000.00
4.	Preoperative expenses	Rs.45,000.00
5.	Supplying Auto	Rs.55,000.00
6.	Miscellaneous	Rs.35,000.00
	TOTAL	Rs.2,95,000.00

FIXED CAPITAL

1.	LAND & BUILDING	Rs.10,50,000.00
2.	PLANT & MACHINERY	Rs.12,61,500.00
3.	OTHER FIXED ASSETS	Rs.2,95,000.00
	TOTAL	Rs.26,06,500.00

WORKING CAPITAL REQUIREMENT/MONTH RAW MATERIALS

1.	Milk 60345 litres @ Rs. 11/- per litre	Rs.6,63,795.00
2.	Starter 1.5 ton @ Rs. 35000/- per kg. (Enzymes, flavours, culture)	Rs.52,500.00
3.	Colour, salt etc.	Rs.5,500.00
4.	Packaging material with labels 400 gms Capacity Rs. 2.25p.pc. (7800 No.) 200 gms Capacitor Rs. 85/p.pc (27000)	Rs.25,000.00
	TOTAL	Rs.7,46,795.00

SALARY & WAGES / MONTH

1.	Manager-chemist	No. 1	Rs.6,000.00
2.	Skilled workers	No. 4	Rs.10,000.00
3.	Unskilled workers	No. 5	Rs.10,000.00
4.	Typist/Clerk	No. 1	Rs.2,500.00
5.	Peon/Chowkidar	No. 3	Rs.5,400.00
	TOTAL		Rs.33,900.00
	Plus perks @ 20% p.a.		Rs.6,780.00
	TOTAL		Rs.40,680.00

UTILITIES AND OVERHEADS

1.	Power Consumption of 2400 Kwatt hrs @ Rs. 2.80 per Kwatt hr.	Rs.6,720.00
2.	Water Consumption of 1000 KLs @ Rs. 2.00 per KL	Rs.2,000.00
3.	L.D.O. 1500 litre @ Rs. 9.25/- per litre	Rs.13,875.00
4.	Office expenses and Conveyance	Rs.12,500.00
	TOTAL	Rs.35,295.00

Total load is 13 Kwatts

TOTAL WORKING CAPITAL/MONTH

1.	RAW MATERIAL	Rs.7,46,795.00
2.	SALARY & WAGES	Rs.40,680.00
3.	UTILITIES & OVERHEADS	Rs.35,295.00
	TOTAL	Rs.8,22,770.00
1.	WORKING CAPITAL FOR 3 MONTHS	Rs.24,68,310.00
2.	MARGIN MONEY FOR W/C LOAN	Rs.6,17,077.50

COST OF PROJECT

TOTAL FIXED CAPITAL	Rs.26,06,500.00
MARGIN MONEY	Rs.6,17,077.50
TOTAL	Rs.32,23,577.50

TOTAL CAPITAL INVESTMENT

TOTAL FIXED CAPITAL	Rs.26,06,500.00
TOTAL WORKING CAPITAL FOR 3 MONTHS	Rs.24,68,310.00
TOTAL	Rs.50,74,810.00

COST OF PRODUCTION/ANNUM

1.	Working Capital for 1 year	Rs.98,73,240.00
2.	Interest @ 16.50% on T.C.I	Rs.8,37,343.65
3.	Depreciation @ 6.50% on buildings	Rs.43,875.00
4.	Depreciation @ 33.33% on Plant and Machinery	Rs.4,20,457.95
5.	Depreciation @ 20.00% on office equipment & furnitures	Rs.9,000.00
	TOTAL	Rs.1,11,83,916.60

TURN OVER/ANNUM

1.	By sale of 107500 Packs of 400 gms each Processed cheese @ Rs. 55/- per pack.	Rs.59,12,500.00
2.	By sale of 1,85,000 Packs of 200 gms each of processed cheese @ Rs. 35/- pack	Rs.64,75,000.00
3.	By sale of 25000 kgs of cream Rs. 85/- kgs	Rs.21,25,000.00
	TOTAL	Rs.1,45,12,500.00

PROFIT	=	RECEIPTS - COST OF PRODUCTION
	=	1,45,12,500.00 - 1,11,83,916.60
	=	33,28,583.40

PROFIT SALES RATIO	=	Profit / Sales * 100
	=	(33,28,583.40 / 1,45,12,500.00)*100
	=	22.93 %

RATE OF RETURN	=	Operating profit / T.C.I * 100
	=	33,28,583.40 / 50,74,810.00 * 100
	=	65.59 %

BREAK EVEN POINT (B.E.P.)

Fixed Costs of the plant are as under -

1.	Interests	Rs.8,37,343.65
2.	Depreciation	Rs.4,73,332.95
3.	40.00% of salaries	Rs.1,95,264.00
4.	40.00% of overheads	Rs.1,69,416.00
	TOTAL	Rs.16,75,356.60

B.E.P.	=	(FIXED COSTS / FIXED COSTS + PROFIT)* 100
	=	(16,75,356.60 / 16,75,356.60 + 33,28,583.40)* 100
	=	33.48 %

LAND MAN RATIO = Total land / Manpower

500 : 14 :: 36 : 1

RESOURCES FOR FINANCE

1.	Term loans from Financial institutions (80.00% of fixed capital) at @ 14.00% p.a rate of interest	Rs.20,85,200.00
2.	Bank loans for 3 months (75.00 % of working capital) at @ 18.00% p.a rate of interest	Rs.18,51,232.50
3.	Self raised capital from even funds & loans from close ones to meet the margin money needs at a @ 20.00% p.a rate of interest	Rs.11,38,377.50
	TOTAL	Rs.50,74,810.00

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