A production line is justified when repeat demand can load it, the contribution gained per kilogram covers fixed costs and capital, and the workshop can deliver saleable output without relying on perfect utilisation.
“Outsourcing” covers several supplier models
White label usually means a manufacturer’s standard recipe and format sold under your brand. Private label is normally made to your specification. A co-manufacturer performs one or more production stages, while a co-packer fills or packs product made elsewhere.
The supplier’s minimum order quantity, or MOQ, matters because it converts a unit price into cash tied up in stock. A lower quoted price can cost more after freight, storage, obsolete packaging and inventory written off before its best-before date.
| Decision | What stays outsourced | What moves in-house | Primary test |
|---|---|---|---|
| 1. Contract product to in-house finishing | Couverture manufacture | Tempering, moulding, cooling and packing | Cost and lead-time reduction |
| 2. Purchased couverture to own recipe | Cocoa liquor or nib production | Formulation, refining, flavour development and tempering | Recipe control and margin |
| 3. Own recipe to bean-to-bar | Cocoa growing and post-harvest work | Roasting through to the finished product | Incremental contribution from origin-led products |
The answer is a volume, not a turnover figure
The calculators below start with transparent planning assumptions. Replace every commercial input with a supplier quote or production trial before approving equipment.
| Model | Threshold per month | Target payback | Main risk |
|---|---|---|---|
| Finish purchased couverture | — | — | Sales do not load moulding and packing capacity |
| Make an original recipe | — | — | Long refining cycles require several machines |
| Bean-to-bar: next stage | — | — | Premium price does not cover added process cost |
The threshold is calculated as: annual fixed production costs plus annual capital recovery, divided by contribution gained per kilogram and then divided by 12. Capital recovery is capex divided by the selected payback period.
Build the outsourced cost before comparing equipment
Landed outsourced cost includes the supplier price, freight, customs where applicable, external storage, MOQ-related stockholding, obsolete packaging and quality rejects. Keep co-packing separate if the packer invoices per unit or per production run.
Internal production cost must include direct labour, cleaning, quality checks, product left in equipment, maintenance and packaging. Labour should be calculated from hands-on hours per sellable kilogram, not from machine cycle time.
For a UK model, the legal minimum is a floor rather than a loaded employment cost. The National Living Wage for workers aged 21 and over is £12.71 per hour from 1 April 2026. The calculators add an editable employer on-cost percentage for holiday, pension, National Insurance and other employment costs. Check current UK minimum wage rates.
Calculator 1: replace a contract-made product
This is the direct outsourcing decision. The business keeps buying couverture but takes tempering, moulding, cooling and packing in-house.
Couverture-to-finished-product model
Defaults are planning inputs in pounds sterling, not market quotations.
The default capacity assumes two 20 kg moulding loads on 22 working days and applies both yield and utilisation. It refers to finishing ready-made couverture. It does not imply that a 20 kg melanger can refine 20 to 60 kg of chocolate each day.
Tempering must create and retain the required stable cocoa-butter crystal population. Cooling, mould availability and packing can become the bottleneck even when the tempering machine still has spare capacity.
Calculator 2: replace purchased couverture with an original recipe
This is an upstream integration decision. Ingredient cost is shown by component so that an unexplained “raw materials per kg” assumption cannot carry the result.
Original-recipe production model
Ingredient percentages must total 100%. Use delivered prices from your own suppliers.
KADZAMA publishes a 48 to 72-hour range for chocolate in its 20, 35, 65 and 85 kg melangers. A 35 kg model has a published working range of 20 to 40 kg. The calculator therefore uses actual batch mass, the complete cycle, cleaning, yield and utilisation. Review KADZAMA melanger cycle and capacity guidance.
A target near 20 to 30 micrometres can be useful for a smooth texture, but particle size depends on the measurement method and is not the only release criterion. Flavour and flow still need specification. At higher, stable volumes, compare melangers with a complete ball-mill and conching line: the faster size-reduction step may require pre-grinding, transfers and separate flavour development.
Calculator 3: treat bean-to-bar as the next stage
Bean-to-bar adds roasting, cracking, winnowing, refining and more quality-control points. Its business case normally depends on the extra contribution customers will pay for origin, formulation and flavour, rather than a simple saving on cocoa.
On 1 October 2026, the ICCO daily indicator was US$5,438.98 per tonne, or about US$5.44 per kg. This is an international futures-based reference, not a delivered price for speciality beans, cocoa liquor or cocoa butter. Use current supplier quotations in the calculator. Check ICCO cocoa prices.
Main-crop West African cocoa bean shell commonly represents about 11% to 12% of bean weight. The actual nib yield also depends on sorting, roasting and winnowing, so the calculator converts your delivered bean quotation using an editable yield. Review cocoa shell and edible-yield guidance.
Bean-to-bar incremental contribution model
The £150,000 default is a test input, not a market price. Replace it with complete supplier quotations.
The capex input should combine the roaster, cracker and winnower, refiners or melangers, any separate conching stage, tempering, cooling, mould handling, extraction, climate control, electrical work, installation and QC equipment. A single headline machine price is not a bean-to-bar investment budget.
Sensitivity: volume can matter more than a small price saving
The table shows monthly contribution before fixed costs, capex and finance. It makes the interaction between volume and contribution gained per kilogram visible.
| Monthly volume | £1/kg | £2/kg | £4/kg | £6/kg |
|---|
A project that gains £1/kg at 300 kg per month creates only £3,600 per year before fixed costs. At £4/kg and 1,000 kg per month, it creates £48,000. The equipment decision changes when either axis changes.
Connect the three conditions to five evidence gates
- 01
Demand: use 6 to 12 months of sales history, repeat orders and signed commitments. Do not annualise one seasonal peak.
- 02
SKU concentration: identify whether a small number of recipes carries most volume. Recipe changes add cleaning, allergen controls and idle time.
- 03
Unit economics: calculate landed outsourced cost and internal cost per sellable kilogram. Include the cash held in MOQ stock.
- 04
Practical capacity: test batch size, complete cycle, cleaning, yield and utilisation. Keep headroom for maintenance and seasonal orders.
- 05
Process ownership: assign responsibility for recipes, batch records, release checks, sanitation, traceability and corrective action.
Sources and technical references
- GOV.UK: National Minimum Wage and National Living Wage rates
- Food Standards Agency: register a food business
- Food Standards Agency: HACCP and food-safety management
- Food Standards Agency: PPDS labelling guidance
- The Cocoa and Chocolate Products (England) Regulations 2003
- International Cocoa Organization: cocoa prices and statistics
- KADZAMA: melanger cycle time and practical output
Model the line around your real products
Bring monthly volume by SKU, current landed costs, supplier MOQs, main recipes, available shift hours and equipment quotations. KADZAMA can compare in-house moulding, original-recipe production and bean-to-bar without treating them as the same investment.
Start with the outsourcing calculator
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