You are in > Home > SAC Consulting > Consultancy Services > Consultancy Services F - H > Farm Diversification > Diversification Database > Value Added Food & Drink > Ice Cream Production

Ice Cream Production

General

There are over 1,000 ice cream manufacturers in the UK with the Ice-Cream Alliance representing over 750 of them.

Adding value to milk to produce ice-cream may be a suitable additional enterprise for certain farms.

For example, farms with an existing dairy, milk supply, milk round, farm shop, pick your own, or tourist enterprise may consider this option. Most of the UK's ice-cream would not be classified as REAL ice-cream in European terms as about 80% of UK sales contains no milk fat.

This is contrary to France, Canada and Finland where milk fat is a legal requirement.

The main ingredients required in ice-cream production are: fat, milk solids, sugar, water and small quantities of stabiliser, emulsifier and flavourings. Good quality dairy ice-cream can be 14-16% milk fat and will include cream.

The basic mix is pasteurised, then whipped and frozen simultaneously. Many recipes exist, although legal standards must be followed.

Please remember that special consideration must be given to the VAT aspects of diversification as the new activity may not be treated the same as the existing farm business from a VAT standpoint.

Market

There is strong demand for farm ice-cream, but it is limited to local and regional sales.

The main outlets are specialist local shops, farm gate sales and hotels and restaurants. Van sales may be possible if close to an urban area. Some competition between goat, sheep and cows milk ice-cream.

There is considerable growth in the demand for organic ice-cream

Physical Requirements

  • Buildings: Conversion may be necessary, premises must be approved by the Environmental Health Dept. Space required for storage of ingredients and products, for packaging materials, freezers, etc as well as for processing itself.
  • Water: Must have public water supply.
  • Labour: Extra labour may be required.

Costs

The following costing information is general and current prices should be sought for budgeting purposes.

Capital Costs

  • Conversion costs depending on existing premises.
  • Equipment:
    • Batch pasteuriser £9,000 - £12,000
    • Batch freezer = £8,000 - £17,000 but variable according to size, type, age, etc
    • Chest freezer for storage £500

Running Costs

Milk = 15p/litre; other ingredients = 45 - 50p/litre of ice-cream packaging; 15 - 25p/litre of ice-cream Rates Insurance Electricity Advertising

Returns

Retail value £5 - £7.5 per litre

Constraints

Cost: high initial capital required for equipment, unless second-hand. Planning permission for building conversion. Rates may be charged on the whole dairy, rather than just the ice-cream making area.

Licence required from the Environmental Health Department.

UK Ice-cream Regulations 1967 for composition of ice-cream and for heat treatments, must be followed.

UK and EEC regulations on food labelling must be followed

  • Food Safety Act
  • Food Premises (Registration) Regulations 1991
  • Dairy Products (Hygiene) (Scotland) Regulations 1995

    Market: seasonality of demand means that this can be critical (weather is critical).

    For details on Ice Cream Regulations please refer to the Food Standards Agency.

    • Training

      SAC's Food Marketing Team can deliver bespoke training depending on your specific needs.

      Charis can provide a range of activities and courses designed to implement, develop and support New Product Development Strategies for client companies. These vary from standard courses for legislative compliance to more specialist company or product specific courses and workshops.

      Leatherhead Food International offers occasional courses of 1 or 2 days duration on product development and legislative matters.

      Reaseheath College have the facilities for trial work and product development in their pilot plant area. Also offer a biannual ice cream course of one day (theory) or two and a half day (theory and practical).

      Grants

      Through the Scottish Rural Development Programme (SRDP) 2007-2013 funding is now available for rural businesses throughout Scotland for diversification and renewable energy projects. Specifically, support is delivered through Rural Development Contracts – Rural Priorities which was launched in April 2008. For further information about what support is available see the Section on Rural Development Contracts – Rural Priorities.

      Further Information

      Useful Links

      Ice Cream Alliance

      Food Standards Agency Scotland

      Charis can help with Concept Analysis (determining the technical feasibility of converting your idea into a product); Product & Process Development; Product Evaluation; and Training, Advisory & Knowledge Transfer.

      Publications

      The following fact sheets and publications are available from the Ice Cream Alliance

      Fact Sheets

    • Ice Cream Mix
    • Laws Relating to Ice Cream Manufacture
    • Labelling
    • Recipe Considerations and Balancing
    • Manufacturing
    • Health & Safety
    • Quality Assurance
    • Laboratory Testing
    • Overrun

      Publications
      ICA's A Guide to the Safe Handling and Service of Ice Cream
      ICA Code of Practice for the Hygienic Manufacture of Ice Cream
      ICA Guide to the Safe Handling & Service of Ice Cream-
      Ice Cream Making by Dr James Rothwell

      How to HACCP by Dillon Associates

      Ices - The Definitive Guide by C Liddell and R Weir
      The Ultimate Ice Cream Book by Bruce Weinstein

      From the Food Standards Agency
    • A guide to food hazards and your business
    • Food Law Inspections and Your Business [PDF]
    • Food safety regulations
    • Guide to food hygiene

    • Contact

      Mr Scott Murray
      SAC (Scottish Agricultural College) Work SAC Consulting, Bush Estate, Penicuik,
      Edinburgh
      EH26 0PH

      TelWork 0131 535 3430
      Fax 0131 535 3431

      Add to Address Book | Help