Under the EMILK feasibility study LaserLam was able to undertake both experimental and analytical work. These are the activities undertaken:
• Quantifying the effect of the treatment on pathogens commonly found in raw milk: LaserLam had been working with Turin University on a parallel study sampling milk from vending machines and analysing it before and after treatment. During this campaign, only pathogen-free samples were obtained, testifying the high level of hygiene reached by the farmers managing the vending machines. Indeed, the testing schedule set up by the Regional Health Authority for sellers of raw milk would ascertain the presence of dangerous microbes and cause closure of the dairy farm infected, with clear consequences on their business and reputation. Therefore farmers are particularly careful about the management of the animals health and hygiene. Discussion with experts from Turin University led to the decision to plan a testing campaign focusing on different laboratory grown bacteria (with different sizes and shapes, so to capture the range of microbes found in raw milk). The results obtained so far have demonstrated the wide range of bacteria the technology affects varying different operational parameters within the limits of maximum voltage and maximum treatment time most suitable for treating raw milk. The feasibility study confirmed that EMILK can deliver safe and nutritious food.
• Scaling up the treated volume to half a litre: this brings the treated batch to half the volume typically bought by customers each time through a vending machine, and it is a key advancement towards a solution for a continuous or semi-continuous treatment. Work undertaken included designing and manufacturing the reactor and undertaking tests to verify repeatability of the results obtained with the smaller reactor. The results were confirmed for this volume of treatment which anyway would require 3 minutes wait (1.5 minutes each half a litre) by the customer. To shorten this timing, the team has devised an alternative reactor shape that is currently being engineered and prototyped for testing, continuing the development work in self-financing. The feasibility study confirmed that EMILK can be integrated easily within a raw milk vending machine with a slight change of customer’s experience; this can be improved through a redesign of the reactor. This will make the EMILK a unique device worth patenting.
• The market analysis was commissioned in two phases. The first focused on the comparison between the two business options open to LaserLam, i.e. embarking in producing a new, EMILK branded vending machine, or producing only the device as component of a vending machine already on the market, selling it exclusively to one manufacturer or licensing the technology. The second phase considered the current and projected raw milk vending machine market for the core 7 European Union Countries (Italy, Germany, France, the UK, Spain, Belgium, the Netherlands), the former Soviet Union Countries and the rest of Europe. It also analysed the market share of the main competitors and their strengths. This was complemented by LaserLam’ own analysis of the market (European farmers diversifying in direct sales and educational activities to whom the sale of safe raw milk might open further opportunities; consumers’ interest in local food) and stakeholders involvement (dairy farmers in Italy and the UK, local representatives of dairy farmers, local agrifood technological cluster). The feasibility study confirmed that the market for vending machines is growing despite the different regulatory landscape within Europe, and that the vending machines equipped with the new technology would allow access a market untapped and not accessible to the current competitors.
EMILK Phase 1 feasibility study results:
• The technology of the device has been validated and demonstrated reaching a satisfactory reduction in microbial charge. The technology is therefore at an advanced TRL level of 6, and a first prototype is fully functioning for sterilising whatever volume of liquid in a reactor delivering electric discharges to a 500ml volume every 50th of a second and completing treatment in 1.5 minutes. At the start of Phase1, the volume treated was only a few ml of liquid. The work undertaken through Phase1 has allowed to make significant progress towards a system prototype validation level (TRL 7).
• The resulting elaborated business plan, used as a basis of a Phase 2 proposal, demonstrates the viability and profitability of the chosen business. LaserLam was able to use the market analysis for identifying its first markets (Italy and France), consider potential product portfolio, decide on market price and on distribution model. All these elements allowed to define the production strategy including the scaling up to full capacity and expansion – if required by the market – and the consequent investment strategy.
• The Business Plan defined the investment required for industrialisation in order to start production in 2019 adopting a flexible scalable manufacturing concept capable to cover without any additional major investment several different scenarios , from 100 to 500 units/year employing from 10 to 17 new workers. Cost analysis demonstrated very good KPIs (e.g. 2000 k€ turnover and ROI > 50%).
