How to Start Livestock Feed Production Business

The livestock feed production business can be initiated with proper planning and know-how about the right mixing formula. Most of the livestock farmers are always searching for the right food and food supplementary products for their farms. Several different livestock feeds needs to serve different requirement legitimately.

However, the major requirement is to get improved animal health and to increase productivity by providing enriched nutrients along with the feedstuff, which accelerates growth & weight gain develops immunity against diseases, and enhances the overall performance of the livestock.

The global animal feed additive market, valued at $14.9 billion in 2013, is estimated to reach $20 billion by 2020. The increase in global meat consumption is the major driving factor that has augmented the demand for the animal feed and feed additives market.

The amplifying demand in the Asia Pacific market for feed additives, which is due to the rising meat production and export is proving to be an opportunity for this market.

China, France, Germany, Spain, and the United States represent the largest prepared animal feed markets while the strongest annual growth is forecast to occur in Senegal (17.7%), Bolivia (11.0%), Philippines (9.8%), Panama (9.2%) and Vietnam (9.1%).

In starting livestock feed production, market research is a must. You must quantify the demand and accordingly, you will need to select the product that you will produce. This business requires strategic planning and proper inventory management.

Any aspiring individual can initiate this business with substantial capital investment. The margin is lucrative and thus it is considered one of the profitable manufacturing opportunities.

Livestock Feed Production Company Plan Guide for Beginners

Choose the Types of Livestock Feed

Some of the most popular and revenue-generating livestock feeds are poultry feed, fish feed, cattle feed, rabbit pellets, pig or pork feed, dog feed, bird feed, sheep feed, etc. According to the demand of your local market choose the right one. As a matter of fact, the production of each different type of feed demands different production processes and raw materials.

Create a Livestock Feed Production Business Plan

In starting a livestock feed production company, crafting a detailed comprehensive business plan is a must. Selecting the right product, determining business objectives, creating marketing and financial planning is important. The financial plan should include unit setup cost, machinery cost, raw material, manpower, and marketing expenses. These steps will help you in arranging finance also.

Some of the basic subjects your business plan must address are the following:

  • Initial and recurring costs
  • Target customers
  • Pricing plan
  • Hiring manpower
  • How and where to sell your livestock products

Livestock Feed Manufacturing Unit Setup

Livestock feed generally comes in two forms. One is powder form and another is pellet form. According to the product you will need to purchase the machinery. Select machinery according to the proposed capacity of the mill, the types of raw materials available, the types of livestock feed to be produced, and the characteristics of the power supply available.

Broadly you will need to have a grinding machine, weighing machine, mixing machine, pellet making machine, steam boiler, cooker, freezer, crumblier, elevators, conveyors, sifter, and packing machines.

To produce different types of livestock feed, different raw materials are used in different formulas. In most cases, the raw materials coming into a feed process area will have been requested by the nutritionist as being necessary to meet the nutrient requirements of the diet to be manufactured.

Storage areas must be waterproof and well-ventilated, and provide protection against infestation by insects and vermin which can quickly cause substantial losses in weight.

If materials are to be stored in bags they should be kept in a building having a concrete floor. The roof and walls need only to be lightly constructed provided that they are pest and waterproof.

Pay attention to packaging. Moisture-proof packaging for assuring quality for longer-term is essential.

Manpower For Livestock Feed Production Company

Proper human resource planning is important. This business includes the activity of production, marketing, and admin. The manufacturing part also includes Research & Development activity. Keep only skilled and experienced manpower. For sales activity, you can also keep sales agents.

Promote Your Livestock Feed Production Business

In livestock feed production you will need to identify various ways of promotion and distribution of the product.

Territory wise you can establish your own distribution network. Establish channels through stockists, distributors, and retailers.

Livestock feed is also considered an export-oriented product. Exporting your livestock products is an obvious way of increasing sales volume in this business.

You can establish your own retail store also.

You must have a business website. It will help you in fetching more customers and create a brand personality.

List your product with a popular online marketplace like Amazon, eBay, etc.

At the micro-level assure more and more field promotion with the farmers. Always remember; it is all creating the brand value. And you can only achieve loyal customers by providing quality products.