According to a report, global animal feed market generates an estimated turnover of over 400 billion US dollars annually. This means that the Livestock feed production business is a very profitable agribusiness as animals will always need food to survive.
If you have thought of starting a livestock feed production business, be assured that it is a great idea and that you will make a lot of money in the process. This article aims to share a few tips on how you can start a livestock feed production business from just an idea to a functional and profitable business.
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About Livestock Feed Production?
Livestock feed is food consumed by animals reared for domestic purposes. The production process covers the activity of gathering raw agricultural materials, formulation, animal nutrient requirements, type of livestock feed produced and equipment used in feed production.
The success of a livestock feed production business relies solely on supplying the required nutrients needed by an animal through feeds. Any variation in livestock feed amount and improper feed formulation plays a direct influence on an animal’s performance and nutrient supply. Therefore you must solicit an expert’s advice before establishing a livestock feed production business.
How Profitable is Livestock Feed Production?
In 2021, the global animal feed market was valued at $ 39.6 billion with an estimated market reach of $53.7 billion by 2030. There is a constantly growing demand for food all over the world and particularly in Africa. Animal protein is one of the most important sources of man’s diet and the production on the African continent is very low. What do these animals whose benefits are greatly needed by man, rely on to survive and stay healthy? Livestock feed.
Now, think about the thousands of animal husbandry farms that exist, what do these farms require most in their farm operations? Livestock feed. The demand for livestock feed is very high, no amount of livestock feed supplied will be enough. Consider its market potential and use it to your financial advantage.
How to Start a Livestock Feed Production Business
Listed below are steps on how you can start a livestock feed production business.
Research and Choose an Animal Category
Knowing what you are going into and what to expect will reduce the likelihood of a business failure. Livestock covers poultry, cattle, birds, fish, etc., You need to carryout research on livestock demands and market demands, as this can inspire your choice of the type of livestock feed that you would be producing.
Create your Business plan
Writing your business plan will give you control of your business. It will equip you with strategies to solve challenges for your business when they come. In your business plan: State your business objectives, formulate strategies, and analyze your estimated expenses and profit. Make your business plan detailed and ensure it discusses every aspect of your livestock feed production business from scratch to marketing.
Get the Knowledge of Feed Formulation
Having a good knowledge of Feed formulation will help you in your business. Animal’s health and performance depend on the right supply of the required nutrients its body needs and this is obtained primarily from livestock feeds. So its important to research and get the required knowledge on feed formulation. You can intern in a feed formulation company, understudy their process and procedures, then come up with your own unique recipes.
Set Up your production plant and Build a team
Depending on your finances, you can start your feed formulation business on a small scale before expanding once you have accumulated enough profit, or get an offer of investment. You need to choose a location that is accessible to your proposed market and is also close to your source of raw material. It is also very important to set up a team that will support you in running the business.
Obtain Livestock Feed Ingredients and required Machinery
Purchasing your livestock feed ingredients is the next thing to do. Ingredients used for livestock feed formulation include corn, maize, cassava grits, bone meals, offals, soybean meals, and others. Knowing the right quantity and ingredient to be used for a particular livestock feed will keep your livestock feed balanced. Livestock feed machinery like grinders, freezers, sifters, crumblers wet and dry mixers, weighing platforms, testing machines etc exist in the market and it would help in the livestock feed production process. However, you should know that the type of equipment used for feed production depends on the type of livestock feed to be produced and the raw materials available.
Consider Packaging and Storage
Livestock feeds require careful storage and packaging options if their original state must not be compromised. Moisture-proof packaging is known to ensure feed quality and also prolongs the shelf life of livestock feeds. Storage areas should be well-ventilated, and free of dampness, rodents, pests, and insect infestations if you do not want to record losses.
Sell your Produced Livestock Feeds
As a livestock feed producer, you must learn the art of selling. There are several channels you can use to sell your livestock feed but that itself depends on your marketing and advertising power. You can decide to distribute directly from your livestock feed production facility to livestock farms, or to wholesalers and retailers who will further sell to end users. Pitching your business online is a fast and reliable way of getting more customers and building your business profile.