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Feed Mill Project Report, Business Plan

Introduction to Feed Mill Project Report, Business Plan
Hello friends, we are here today with a new topic of “Livestock Feed Mill Project Report and Business Plan in India”. Livestock production and agriculture are an integrated segment, as they are dependent on each other f and considered vital for overall food security. The estimated analysis and reports from the Central Statistics Office (CSO) report that the gross value added from the livestock segment at current charges was almost INR 4 trillion in 2013-14 accounting for 21.58% of the gross value added from total agriculture, forestry and fishing segment at present costs and 22.75% at constant prices during 2011 -12. The livestock segment is providing about 3.88% of the total gross value added of the country at present prices and about 3.92% at constant prices during the years 2011-12.

The livestock sector is an essential sub-sector associated with Indian agriculture and the economy. It has been developed as a vital activity for most of the farmers, which supports farmers not only by supplementing incomes but is even helpful to increase the health condition of farmers, and even providing employment opportunities. Concerning the NSSO 66th Round Survey released from July 2009 to June 2010), around 20.5 million total farmers were involved as per usual status. Farmers of marginal, small, and semi-medium operational holdings (areas lower than 4 ha) own about 87.7% of the livestock. Therefore, the development of the livestock segment will enhance the farmer’s standard of living.

India has a vast reserve of livestock and poultry, which contribute largely towards improving the socio-economic situation of rural people. There are almost 300.00 million bovines, 135.2 million goats, 65.07 million sheep, and almost 10.3 million pigs according to the 19th Livestock Census conducted in India.

A step-by-step guide to Livestock Feed Mill Project Report and Business Plan in India

Livestock Feed
Livestock Feed (Pic source: pixabay)

Importance of Feed and Fodder industry

Feed and Fodder are the key aspects of the food industry globally when it comes to the economic production of animal proteins. Feed is the largest and most significant aspect of ensuring safe, ample, and reasonable animal proteins across the globe.

The UN Food and Agricultural Organisation (FAO) predicts that the world will have to generate 60% more food by 2050 and that animal protein generation will rise even more – meats will increase, as well as dairy, and fish production will double by 2050.

Growth of feed and fodder industry in India

Market size: Concerning the report from the Indian Feed Industry about Revitalising Nutritional Security Knowledge that was published by Yes Bank in 2015, India’s animal feed industry, which comprises aqua meat, and poultry is predicted to multiply and attain US$30 billion in the coming years from the current US$15 billion to cater the increasing feed and fodder demand of the country.

Current consumption: According to the survey, in India, cattle currently consume 7.5 million tonnes of feed, aqua industry is around 1 MT, while the poultry industry intake is about 13 MT, with soy meal and corn as the main consumables.

Market potential of Feed and Fodder products 

India has observed a 10% growth in feed manufacturing to 29.4 million tons over 2013 tonnage, particularly because of the optimal weather conditions and improved farming techniques and methods.

However, the current feed demand in the nation is high and is about 80 MT for a year. The need for animal protein and dairy goods is projected to upsurge the compound feed intake to around 28 million tonnes in the coming years.

Designing a perfect business plan for starting a Feed Mill in India 

Another very essential step before launching your poultry feed mill will be to have a proper business project. There is a clear analysis by experts that when you do not develop a perfect business plan before any business, there is a great possibility that you will encounter many problems and will suffer to expand the business.

Reports also suggest that an entrepreneur who has been successful while developing a proper business plan has over 50 % possibilities to sustain and expand his/her business. Thus, it is necessary to prepare your project plan for your cattle feed mill business plan.

List of approvals required to start Feed Mill Business

  • For permissions, the project report is sent to corresponding DICs (District Industries Centres). DIC will further take the step to send the proposal to the Industries Commissioner. Now the Commission will submit the report to SLAC (State Level Approver Committee) which is held responsible for final approval.
  • Moreover, the proposed unit should register itself with the SIA popular as the Secretariat of Industrial Approvals, the Ministry of Industries and Government of India, by submitting an Industrial Entrepreneur’s Memorandum (IEM), which will establish the unit and machinery investment for about INR 10 million.
  • Since it will be associated with food processing while you plan for export, the cattle feed needs to be approved by food organizations of exporting countries, along with the usual registration with Indian and state food authorities.
  • BIS has formulated quality norms for quality and it is mandatory to abide by the regulations under the PFA Act for its ingredients and quality segment for promoting the product in the Indian market.

Area required for establishing a Feed Mill in India

You must acquire a proper location for this type of business to start your operations. It is suggested to reach a real estate broker or any local person to identify the right location to start your poultry feed mill. You must have a spacious location that can accommodate the necessary machines and equipment apart from the area for storing both raw materials and finished products.

Equipment and Machinery required for establishing a Feed Mill Unit

Once you have made the decision and arranged to find an appropriate and expansive location for your poultry feed mill, then you have to purchase and install the necessary equipment or machines for the feed mills. One of the aspects that will endorse you in the present marketplace is the way you plan your packaging and branding. Hence, make sure you concentrate while performing the feed packaging. The composition of your poultry feed has to be properly stated in the packets with a clear label.

List of machinery required for Feed Mill business

  • Intake and grinding section 
  • Bagging and services 
  • Steel structures
  • Mixing section 
  • Erecting and commissioning 
  • Electricals 
  • Hopper speed control and hopper & other equipment 
  • Transportation
  • Boiler 
  • Weighing machine
  • Pellet Mill
  • Lab equipment
  • Office furniture and computers 

Raw materials required to start Feed Mill Unit

In case you miss this: Vermicompost Project Report.

Livestock feed pellets
Livestock feed pellets (Image credit: pixabay)
  • Maize, Jowar in the form of deoiled cakes like cottonseed, corn gluten, sunflower, etc.
  • Rice Polish, Rice in the form of deoiled cakes like corn gluten, cottonseed, sunflower, etc.)
  • DEO Rice Polish, DEO Groundnut cake, DEO Soybean meal in the form of deoiled cakes such as rice bran
  • Limestone powder 
  • Sunflower meal/extract 
  • Dicalcium Phosphate Mineral (lime, bone ash, etc.)
  • Shell Grit/Marble, Salt Pure 
  • Vitamin & Probiotics 
  • Poultry Mineral Mixture 
  • L.Lysine, D.L. Methionine

You may also check this: How To Start A Vegetable Oil Production In India.

Feed Mill Project Report/Economics of Feed Mill Business Unit

Capital Expenditure

Land: Own

Building Shed 1500 Sq.ft: Rs. 3,00,000

Equipment: Rs. 4,00,000

(Feed Grinder-15H.P., Conveyer 2H.P., Batch Prin, Ribbon blender 1, tone capacity, Feed Mixer 7.5 H.P., Sealing Machine)

Total Capital Expenditure: Rs. 7,00,000.

Feed Mill Project Report – Working Capital: Rs. 3,00,000

Total project cost: Rs. 10,00,000

Estimated Annual Production: Rs. 11,72,000

Raw Material: Rs. 2,50,000

Lables and Packing Material: Rs. 50,000

Wages (Skilled & Unskilled): Rs. 75,000

Salaries: Rs. 1,10,000

Administrative Expenses: Rs. 1,50,000

Overheads: Rs. 3,50,000

Miscellaneous Expenses: Rs. 50,000

Depreciation: Rs. 55,000

Insurance: Rs. 7,000

Interest (As per the PLR)

a. C.E.Loan: Rs. 91,000

b. W.C.Loan: Rs. 39,000

Total Interest Rs. 1,30,000.

Feed Mill Project Report – Working Capital Requirement

Fixed Cost: Rs. 4,08,000

Variable Cost: Rs. 7,64,000

Requirement of WC per Cycle: Rs. 2,93,000

Feed Mill Project Report – Profit in Feed Mill Business in India

Profitability = Sales – Cost of Production = Rs. 14,00,000 – Rs. 11,72,000 = 2,28,000.

Frequently Asked Questions about Feed Mill Business

Common QuestionsExpert Answers
What is a feed mill business?A business that produces animal feed from various raw materials, catering to livestock, poultry, and sometimes fish industries.
How to start a feed mill business?Begin with a market analysis, secure funding, choose a suitable location, purchase equipment, and obtain necessary licenses.
What equipment is needed for a feed mill?Key equipment includes grinders, mixers, pellet mills, conveyors, and packaging machines.
How much investment is required to start a feed mill?Initial investment can vary widely, typically requiring substantial capital for equipment, facilities, and raw materials.
What are the main types of animal feed produced?Includes poultry feed, livestock feed, fish feed, and specialized feeds for other animals like rabbits and pets.
How to ensure the quality of feed produced?You should implement strict quality control procedures, source high-quality raw materials, and adhere to nutritional guidelines and standards.
What are the legal requirements for operating a feed mill?You should comply with local and national regulations, including business registration, health and safety standards, and environmental regulations.
How to market my feed mill business?You should develop a marketing strategy targeting local farmers, livestock owners, and dealers, and utilize digital marketing to reach a broader audience.
What is the profitability of a feed mill business?Profitability depends on operational efficiency, market demand, and pricing strategy, with potential for significant returns in high-demand areas.
How do I source raw materials for feed production?You should establish relationships with suppliers of grains, proteins, minerals, and vitamins, ensuring consistent quality and supply.
Can a feed mill be automated?Yes, automation is increasingly common in feed mills for improved efficiency, accuracy, and labor savings.
What are the biggest challenges in running a feed mill?Challenges include fluctuating raw material costs, maintaining feed quality, and navigating regulatory requirements.
How to manage waste in a feed mill?You should implement efficient production processes, recycle where possible, and ensure proper disposal of unusable waste according to environmental regulations.
What training or skills are needed to operate a feed mill?Knowledge in animal nutrition, machinery operation, business management, and understanding of regulatory compliance are crucial.
How to finance my feed mill business?Options include bank loans, investor funding, government grants, and personal savings.
What impact does feed quality have on livestock and poultry?High-quality feed improves animal health, growth rates, and productivity, directly impacting profitability for end users.
How to expand my feed mill business?You should expand by increasing production capacity, diversifying feed types, and exploring new markets or export opportunities.
What role does research and development play in a feed mill?Crucial for innovating feed formulations, improving production processes, and staying competitive.
How to maintain equipment in a feed mill?You should implement a regular maintenance schedule, train staff on equipment care, and promptly repair or replace faulty machinery.
What certifications can enhance my feed mill’s credibility?Obtaining certifications like ISO, HACCP, or organic can improve marketability and trust with customers.
How does seasonality affect the feed mill business?Seasonal changes can impact raw material availability and prices, as well as demand patterns from the agricultural sector.
How to ensure sustainability in a feed mill operation?You should utilize renewable energy sources, source sustainable raw materials, and implement waste reduction practices.
What is the future outlook for the feed mill industry?Expected to grow with increasing demand for animal protein, technological advancements, and sustainable practices.
How to reduce production costs in a feed mill?You should pptimize production processes, negotiate better raw material prices, and invest in energy-efficient technologies.
What strategies can be employed to handle market competition?Focus on quality, customer service, innovative products, and strategic marketing to differentiate from competitors.
How important is location for a feed mill business?Critical for logistics, access to raw materials, proximity to customers, and complying with zoning regulations.
What are the benefits of vertical integration in the feed mill business?Can lead to cost savings, better quality control, and stronger supply chain management.
How to make my feed mill more eco-friendly?You should invest in clean technologies, reduce emissions, and promote recycling and sustainable sourcing practices.
What insurance is needed for a feed mill business?Consider property, liability, worker’s compensation, and business interruption insurance to mitigate risks.
How to maintain a competitive edge in the feed mill industry?Stay abreast of industry trends, invest in technology, and prioritize customer satisfaction and product innovation.


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