Feed Mill Startup Business Plan and Feasibility study makes the work easier. Is a road map for success both as an individual or as an investor. Furthermore, this is a free guide on Feed Mill Startup Business Plan and Feasibility study. It covers; Register your Writing A Feed Mill Startup Business Plan, Carry out a Feasibility Study, Livestock Feed Production In Nigeria, Register Your Business and others.
Writing A Feed Mill Startup Business Plan
Writing a Feed Mill Startup Business Plan gives you a certified entry into business success. Are you planing to establish a feed mill Business? Then get a business plan and a feasibility Study to get started. Oftentimes, several business fail to succeed because they fail to plan. Similarly, writing one makes your plan clearer.
While the feasibility study bring in the cost analysis. Likewise, its breakeven analysis. Furthermore, there is need to know what a feed mill factor actually is. In simplest terms, is a place where feed for livestock are prepare or produce.
Livestock Feed Production In Nigeria
Nigeria produce several types of animal feeds like other countries. Oftentimes, these feeds are popular; chicken, turkey, ducks, guinea fouls and quails, etc.). Other classes of livestock that rely on the feeds produced by feed milling enterprise are pigs, fishes, rabbits, goats, cattle, sheep, etc.
Register Your Business
Firstly, register your business with the Corporate Affairs Commission. This will be your business name. Also, you could use the same name for the name of your product. This is what your product will be known for. Apart from the CAC, you should find out other bodies that can certify your business and register with them.
Carry Out A Feasibility Study
This is a very important step in starting any business. Firstly, it helps you to have a detailed and focused plan that you can follow. It is also the yardstick when you want to carry out appraisals of your business. Likewise, it ensures that you are grounded enough in knowledge of your product and market.
Write A Business Plan
The business plan is the map of your business. Here you determine how much you will need to take off, as well as the personnel and equipment you will need to employ and purchase respectively. The production capacity, ingredient sourcing, product distribution and marketing are also to be incorporated into the business plan.
Knowledge of feed formulation is critical in running a feed milling business. You could enroll in school or short trainings. This will expose you to the intricacies of the business. If possible, visit existing feed mills in your locality. There are many feed mills in Ibadan, Ijebu, Ilorin and even in Kuje area of Abuja. Get as much knowledge that can ensure your survival in the venture.
The initial capital outlay is dependent on the scale of operation you want to run. Source for funds from savings, grants or loan from cooperatives or banks. You should only take loans that have unit interest rate. You could also partner with people. The capital you raise is going to directly reflect on the scale of your operation. With it, you will get a building, furnish it with equipment and machinery and purchase the first set of feedstuffs or ingredients. Between N2,000,000 – N5,000,000 will be sufficient to begin a mini feed mill. Some installations could cost as much as N700,000,000. Nevertheless, instation are automatic
Get A Location
It is always better to situate your feed mill in areas that have good access. At least two vehicles should be able to park for loading finished feed. Better stil unloading feed stuffs or ingredients at the same time. Your land is dependent on production capacity.
Get A Building
Furthermore, the building must house all your equipment and machinery. It must also have space for a warehouse where you will store ingredients and finished product. You could rent the building or build from scratch. If you have enough funds to build from scratch, it is important that your building has high roofs and proper ventilation. It should also be able to keep out rodents and rats as vermin could destroy feed ingredients and once they are in, it is difficult to get them out. Ensure that you fumigate before you begin to use your workspace.
Purchase Equipment And Machinery
To run a successful feed mill business, here are some prequisite;
Firstly, Mixer (could be either a vertical or horizontal mixer)
Crusher and grinder (Hammer mill, burr mill, attrition mill, jet mill, roller mill for particle size reduction). You may have one or more of the crushers or grinders.
Likewise, Pelletizer (Only essential if you want to produce pelletized feed. If you are intending to produce fish feed, this is a must have)
Warehouse and/or Storage Bins
Transportation and Conveying Facilities
Scales; which will include the dial beam scales
Hand-held sewing machine (for bagging)
Ear muffs and goggles and respirators
Protective Clothing (helmet, overall and protective boots)
First Aid Box
Buckets, shovels, scoops, rubber hammers, brooms and brushes that are used in weighing, mixing and cleaning operations.
The success of a feed mill also depends on the availability of skilled labour. Employ experence staff. Similarly, these we help;
- An Administrator: The administrator oversees the wellbeing of the enterprise. All other staff are answerable to him.
- A Nutritionist: He formulates and produces the feed to make sure the quality of both ingredients and finished feed is satisfactory. This could be a part-time or full-time employee.
- An Engineer: Experenced mechanical or electrical engineer staff is best for these position. Likewise, boost production.S/he will oversee operation and maintenance. Especially, mechanical, electrical and electronic gadgets involved in production. This could be a full-time or part-time employee depending on the scale of the enterprise.
- Accountant and Marketing Specialist: They will be recruited to look after the finance of the company. They are responsible for procurement of raw materials for the production of the feed and marketing of the finished products. During procurement, they will rely on the expertise of the nutritionist to evaluate the quality of the ingredients as well as instructing them on which ingredients to purchase at every point in time.
It is important for mini-feed mills to employ personnel that are multi-skilled. This will ensure that some skilled jobs can be handled without extra cost to the enterprise.
THE PRODUCTION PROCESS INVOLVED IN FEED MILLING
Now that we have run through the things needed to start successful feed business, all that is left is mixing the feed and bagging before distribution of finished product to the consumer. Feed manufacturing involves mixing all the feed ingredients in the formulation together.
The nutritionist formulates the feed using available ingredients. Nutrient composition of feed ingredients are available in NRC tables. A good understanding of feed formulation guarantees that during periods of shortage of one ingredient, a substitute or a non-regular ingredient that is cheap and readily available can be incorporated into the feed.
The most commonly used ingredients in Nigeria are, maize, soya beans, groundnut cake, wheat offal, fish meal, and bone meal.
Other Processes Involved In Feed Production Include:
Weighing: The ingredients to be used in the feed to be produced are weighed out. The weight is based on the values in the formulation and the quantity of feed to be produced.
Particle Size Reduction: Feed ingredients that are purchased come in different sizes. Some are purchased as whole grains e.g. maize, while others are purchased in forms that could be used directly e.g. fish meal. Those feed ingredients that come into the feed mill as large particles must be reduced. The process is known as particle size reduction. They could be reduced by cutting, crushing, grinding or shearing. Equipment used for this operation include the jet mill, hammer mill, attrition and burr mills.
Mixing: Mixing is one of the most important operation in feed manufacturing. Mixing is carried out in a mixer. Mixers are of two types; the horizontal and vertical mixers. The mixing process is carried out to blend two or more ingredients into a uniform product. After mixing, the realized product is known as a mash.
Bagging: Once mixing is complete, the next step is bagging. furthermore, move to the store for distribution and sales. Oftentimes, Bagging is usually in 25kg bags. Nevertheless, fishfeed bags are in 15kg, 20kg, 25kg. This all depends on producers sezing. Preference must be given to customer wannts. Bagging ensures that feed can be handled easily. It is carried out manually or automated. In practice, once a definite weight has been put in the bad, say 25kg, the bag is sealed. This ensures that it can be stored and transported easily. For commercial feed production, the name of the feed is printed on the bags. There is also a requirement to include the nutrient information of the feed on a leaflet sewn into the bag during sealing.
Furthermore, the feed that is produced could come out as a mash, pellet or crumbles. The mash is the most commonly known feed type in Nigeria. Classes of feed for poultry are the Chick Mash, Growers Mash, Layers Mash, Broilers Starter Mash and Broilers Finisher Mash. Each of these can also come as pellets or crumbles.
Fish feed is always produced as pelletized feed. Rabbit feed are also preferably produced as pellets because rabbits easily react to dust from the mash. The pelletized feed comes in various sizes depending on the die on the pelletizer.
Marketing And Distribution Of Feed Milling Products
Firstly, Marketing is necessary to push your product into the market. The acceptability of your product is dependent on the quality of your product. The quality of your feed is dependent on the following factors:
Acceptability of the feed by the animals
Do the animals grow better?
Lastly, Do the animals produce better (eggs, meat and milk)?
Ensure that your price is competitive and if possible make it a little cheaper than what obtains in the market at the beginning. Be willing to compensate marketers and sales representatives based on sales. The consistency of your product is your most valuable selling point. Farmers have a habit of passing information among themselves. Also, Customer will turn to you if your products are cheaper than others. It is also very easy to fall out of favor with them if they notice that you are not consistent with quality.
Furthermore, you will need a pickup truck. If your production is large enough, you may need to supply using tippers that can handle up to 600 bags per loading. Similarly, It is easier to colonize your immediate environment with your product. You can branch out and expand distribution of your product outside your environment. Also, You can also have depots in strategic areas around the country. Remember to not store feed for too long. Feed depreciates the longer it stays in storage.
Profitability of Feed Milling Business in Nigeria
If properly managed, a feed milling business can bring in anything between 20-30% profit per batch supplied. People make so much money in this business. The money made is also dependent on how much turnover you make within a period of time. You could also mill for people and charge them for using your mill. Depending on the mill, a ton of feed will cost between N2,500 – N4,000. Finally, the mixing machine mixes raw materials in less than 30minutes. This means that, you can make up to 10 extra mixes daily.
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