A livestock feed production business is a profitable option if it is located in an area where considerable numbers of livestock farms exist. Actually livestock farmers are always looking for formulated food that is somewhat essential for proper growth and nourishment of livestock. They keep and raise a variety of poultry birds, cattle, fish etc in an enclosure. So they need to provide adequate nutritious foods to the animals so that they will grow rapidly, become healthy and produce a sufficient amount of meat, eggs, milk and other products, as expected. It is the prime target of every livestock farmer to raise a healthy livestock so they can easily sell the farm-fresh products to their buyers and make a good profit. The animal feeds are produced after mixing different ingredients such as whole wheat, maize, corn, palm kernel cake, bone meal, common salt and much more, but in proper ratio.
Market Potential of Animal Feeds
In the recent years, the market trend of animal feed additives is more than satisfactory. It is expanding at a growth rate of 7%. In 2013, the present market share of the global animal feed additives is estimated at US $14.92 billion. By the year 2020, it is expected to reach US$24.7 billion. The growth is due to increase in worldwide meat consumption and the strong demand of safe and high quality meat, free from any antibiotics. China, leading in Asia-Pacific is considered as the largest and fastest emerging market globally.
Nowadays, more and more people are indulging in the livestock feed production business and this is making this business more prosperous. It is a trade which can offer a good return on investments (i.e. profits) for quite a long period.
The Segment of Livestock Feed Formulation
Every animal has its own food habit and need some special nutrients to grow and gain weight faster. So, feed additives are of different types and are classified into antibiotics, vitamins, minerals, antioxidants, amino acids, binders, feed enzymes, and feed acidifies. The segmentation can also be done depending on the livestock including poultry, cattle, swine, aquatic animals etc. Swine and cattle feed have earned the maximum revenue (over 54%) in the global market due to their popularity in the United States, Latin America and Europe.
A variety of livestock feed are being produced by the feed producers including broilers mash, layers mash etc. You should research on your local market and then decide which feed you will produce.
Steps for Starting 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.
1. Do a Market Research
You need to do a thorough research on your local market. At first, you should identify the demand of the livestock farmers in your area and then select a particular category of animal feed with which you will continue further. The other important aspect is to look at your competitors who are formulating the same type of animal feed. By analysing their strengths and faults in the businesses, you can prepare a solid strategy to stake up against them. You can talk to other business owners who are not in competition with you or doing the business in other region.
2. Prepare a Comprehensive Business Plan
Next, you should craft an effective business plan to get success in this venture. You need to consider every aspect involved in the business like your business objective and the scale of business operations, start-up expenses, financial and marketing plan etc. As you have already decided the category of livestock for which you want to provide feed, you need to study on the food necessities of the group of animals for which you desire to produce.
3. Feed Formulation
There is a specific formula of animal feed for each type of animal and you have to identify the right one for the feeds you are going to produce. If it is not properly produced by mixing the raw materials in exact ratio, you will lose your customers as they would not get expected results after using this feed. To find out the right feed formulation, you should gain knowledge of the dietary needs of the livestock you want to manufacture for.
4. Purchase Raw Materials
After generating the appropriate formula of feed, you should buy the essential raw materials that you need to use. These ingredients may comprise of maize, wheat offal (protein’s source), corn, noodle wastes (rich in carbohydrates), oyster shells, minerals, common salt, etc. All these things are not only nutritious but also make the livestock healthy. Actually production procedure is same for all livestock feeds but the formula varies.
5. Acquisition of Equipment
The next important to step is to purchase the equipment that are necessary for the livestock feed production business. The equipment might include blenders, choppers, cooker, conveyors, weighing machine, bag sewers, pulleys, packaging bag, reservoir, etc. The type of equipment is totally dependent upon the category of livestock for which you are preparing the feed. You may buy these tools or equipment either from the market or can also have a customized one.
6. Packaging of the End Product
Now you have to decide that how you will pack your prepared feed. You may get an idea from your competitors and may follow how the other widely used animal feed production company package their products .Take a look at them and you will definitely come up with a nice packaging idea and their different sizes. A consumer always prefers to have that packed size of feed which is not only sufficient but also reasonable. You must try to provide all the required sizes i.e. from small to large. People who want to stock the feed for the short duration or can’t afford to buy large size bags can acquire small packets from you. Established livestock farmers whose requirement is of large quantity can buy the big size bags.
7. Advertising and Promotion of Business
The final step is to do proper advertisement and promotion of your livestock feed production business by following the effective marketing tactics. This step is quite challenging to perform if you are a beginner. You can hire a sales representative who can help you in promoting your business from door to door. You can give bonuses and commissions to the salesperson if he/she helps you in getting more clients. You can open your own individual store also to sell your product. In this way, you can earn more money. But this is only possible if you have sufficient amount of cash on hand to set up a shop.
You can also look out for another option in this i.e. to sell your livestock feed to the stores. You may provide your feed to the stores who deals in the things that are related to the animals by giving them the samples. If your product is admired by the farmers then the store owner can ask you for more livestock feed.
Besides the above, the current way of doing business is through the online medium. Now, a maximum number of businesses are associated with the online links to get more clients and business. It is one of the cheapest ways to do trade nowadays. You just have to create your business website and display all the products and the services that you offered through your business.
So, if you have any more ideas or information regarding the livestock feed production business, then you can either share with us or can also comment below here. Your viewpoints will help us in making our article more informative, educational and useful to the reader of our website.