How to Start a Livestock Feed Production, Cost, Profit

How to start and make money from Livestock feed production business

Are you looking to start a profitable business in India different from others? Then you have to choose a livestock feed production business, which is very profitable option and you can easily start it is located in an area where considerable numbers of livestock farms exist. Hence it will be easy for you to market your business. Basically, the livestock farmers need formulated foods which are essential for proper growth and nourishment of livestock. As the livestock keep and raise a variety of poultry such as birds, cattle, fish, etc. and hence they need to provide adequate nutritious foods to the poultry animals so that they will grow healthy with this nutritious food, to produce a sufficient amount of meat, eggs, milk and other products, as per your expectations. This will be the main target for every livestock farmer to raise a healthy livestock, in order to build a brand and can easily sell the so they farm-fresh products to their buyers to make a good profit. Before starting the business you need to know about the starting steps of the business and especially how to produce the feed, after mixing different ingredients such as whole wheat, maize, corn, palm kernel cake, bone meal, common salt and other agricultural edible wastes, in a proper proportion.

Market potential of animal feed in India

In the recent years, the market for animal feed has been increased and the growth rate extended to 7%. Due to the huge demand for quality meat and poultry products across the world, hence the demand for poultry feed has also been increased in order to produce safe and high quality meat which is free from chemical medicines. In India this business is also becoming popular as the poultry and livestock farming business is increasing day by day. This point makes us to aim for the business to start with as the increase in the livestock business increases the demand for the feed for livestock.

What is the livestock feed formulation

Every animal requires nutrition to grow but in a different proportions and even few special nutrients to get good weight and to grow faster. These feed additives include the following types and are classified into vitamins, minerals, antibiotics, immune boosters, antioxidants, proteins, amino acids, binders, feed enzymes, and feed acidifies. It can be also differentiated into livestock which includes poultry, swine, cattle, aquatic animals, etc.

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A variety of livestock feed can also be produced by broilers mash, layers mash, etc. You should do research in the nearby local market and then decide to produce which feed you have to produce the most to meet the need.

Steps to start a livestock feed production business

You can start this business with a small amount of capital also but you need to follow some basic steps before getting started.

Do a market research

You need to do a complete research on the local market where you are going to start the business. At first, you have to identify the need of the livestock farmers in the nearby area where you are planning to setup the business. You also have to have a look for the competitors who are into the same business. You can also analyse the strengths and drawbacks about their products by contacting the farmers who are using their products. By minimizing their drawbacks you can produce the feed stock by following all the rules.  It is better to contact in person with the persons who are into the livestock feed business in the other areas so that you can gain knowledge from them.

Prepare a comprehensive feed production business plan

The next step in this business is to prepare an effective business plan to get success in this venture. You have to consider all the aspects in this business mainly the objective and the scale of business operations, the start-up expenses involved, financial aspects and the marketing plans etc. As you will be aware of the category of livestock which you need to produce, you have to study on the food necessities of the group of animals which you have to produce in your near market.

Feed formulation

Every animal has a specific feed formulation, for each animal and you need to identify the right need for which you are going to produce.  If it is not properly produced by using the exact proportions and ratio then you will lose your customers, because they will not get the expected results after using your feed. To find the right feed formulation you need to gain the knowledge about the dietary needs of the specific livestock which you want to produce.

Purchase raw materials

After getting the right information for the feed then you have to buy the raw material required for processing the desired product. These ingredients include maize, corn, noodle wastes (rich in carbohydrates), wheat offal (protein’s source), minerals, common salt, oyster shells, etc.

Getting the required equipment

Now you need to go for the next important step in the business is to purchase the equipment that are required for the livestock feed production business. These equipment include blenders, cooker, conveyors, choppers, pulleys, packaging bag, weighing machine, bag sewers, reservoir, etc. The type of equipment which you have to purchase is totally dependent upon the category of the feed which you are going to prepare. You can get these equipments either from the market or through the customized one.

Packaging of the end product

Now the question arises how to pack the feed product. Regarding this issue, you can see the package of your competitors so that you can get an idea from your competitors. You may also follow how widely the animal feed production company uses in packaging their products. If you have a look at them then you can get a nice packaging with different sizes and colours. A consumer always prefers the size of feed in the package which is not only sufficient but also with a reasonable price.

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You also have to try with all the types of sizes small, medium, and large. So, that people every customer can avail these products as per their requirements and also as per their short duration or else the people who cannot acquire large packets and can acquire small packets from you.

Advertising and promotion of business

The final step is to do proper promotion of your product and by following the effective marketing strategies. This is a quite challenging issue is to perform for you as a beginner. You can do this by following different kinds of methods to promote your own business in India. If you don’t have time then it is better to hire a salesperson and offer him with few benefits for every order so that it helps you to bring in getting more clients. You can also open your own individual store to sell your product; you can even advertise your product through online websites by getting registered in B2B sites and B2C sites. By following all these you can earn money and give employment to others.

Cost to start a livestock feed production business

Costs involved in land and site development is Rs. 2,50,000

Costs involved in purchasing the machinery is Rs. 1,50,000

Costs involved for advertising the products is Rs. 20,000

Costs involved for purchasing raw materials is Rs. 1,00,000

Costs involved in packaging the products in all sizes is Rs. 20,000

So, total costs involved in starting the livestock feed production business is Rs. 5,40,000.

Profits in livestock feed production business

The profits are analysed based on the price you fix for the packets which will be depending on the price you decide for.

Livestock feed manufacturing licenses and permits requirements

In starting this livestock manufacturing business, you need to acquire different licenses and permits from the Government authorities. However, it is advisable to get the registrations according to your state laws. These include: obtaining trade license; apply for MSME Udyog Aadhaar online registration for your business; obtain ‘NOC’ from the state Pollution Control Board; you have to apply for BIS certification for ISI Mark and standards; get VAT registration and also get the information whether it is required or not. Finally, you have to get your brand name protected through Trademark registration.

Training for livestock feed manufacturing

To start the company you have to generally attend for training sessions to all the technical knowledge required to start the business. In India, there are different Government authorities who provide training on the manufacturing technologies. Yu can find the list of below for the information about training centres for livestock feed formulation and quality control.

Central avian research institute, Izatnagar – 243 122 (Uttar Pradesh); Haryana agricultural university, college of animal sciences, Hissar – 125 004; regional feed analytical laboratory, Govt. of India, CPBF campus, industrial area, Chandigarh 160 002 ; Govt. of Maharashtra feed analytical laboratory, c/o. wool research centre, shed breeding farms, Gokhale Nagar, Pune 411 016; Regional Feed Analytical Laboratory, Govt. of India, C/o. Central Poultry, Breeding Farms, Aarey Milk Colony, Mumbai 400 065; B V Rao Institute of Poultry Management & Technology, Urlikanchan, Pune, Maharashtra, Central Poultry training Institute, Govt. of India, Hessarghatta, Bangalore 560 088; TAPCO Feed Analytical Labs, No.2, Chamiers Road, Nandanam, Chennai 500 035; ICAR Research Complex for North East Region, Bishnupur, Shillong 793 004; Orissa University of Agriculture and Technology, Bhubaneshwar 751 003.

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