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Monday, 13 February 2017

How to start livestock feed production business

How to start livestock feed production business
Is livestock production a profitable venture? Let the following numbers entice you: the worldwide animal feed market was valued at 14.9 billion USD in 2013 and it is projected that it will hit over 20 billion USD by the year 2020. A number of factors are responsible for the premium that is placed on this agricultural value chain.
The first is that, as the global human population continues to increase, there is a corresponding increase in the demand for meat, especially as a rich source of proteins.
The second reason is that, as the world moves in the direction of conservation and green practices, hitherto materials considered as waste products, have been found to be useful by-products, when recycled.
This forms the bedrock for livestock feed production, as newer technologies have brought about cheaper and more nutritious feed materials for the rearing of farm animals.
If you decide to start a livestock feed production, then you will do well to adhere to the following terms of engagement and execution:

1..Conduct Market Research and Feasibility Study

This step is an important pre-condition for you before you even commence a livestock feed production business. Market research takes into consideration the local market you wish to operate in.
What are the consumption patterns in your vicinity? Are there more meat consumers than people who consume pork, for instance? Are there cultural and societal norms regarding the rearing and consumption of certain animals that you should be aware of?
Obtaining answers to these questions will help you decide what kind of feed production to go into. A feasibility study will help you identify your target market and the numbers in terms of projected sales and income, your planned business is capable of making.

2..Decide on the Kind(s) of Livestock Feed to Produce

There are different kinds of livestock feed and the more popular ones include poultry feed, fish feed, cattle feed, dog feed, goat feed amongst others. You must appreciate the fact that the production processes for each of these feeds differ significantly.
Following from the feasibility studies you carried out in 1 above, you will decide which feed(s) you will produce based on the demands of your target market.

3..Intern at an Existing Livestock Feed Production Facility

This action step is to afford you the opportunity to witness firsthand the whole structural set-up of the operations of an existing livestock feed facility. At no extra cost to you (in terms of your investing), you will be put through the production process for feed, inventory/stock taking, staff engagement and remuneration, marketing strategy, sourcing for raw materials amongst others.

4..Acquiring the Necessary Space and Equipment

As soon as you have decided on the types of feeds to produce based on your market research, as well as having registered a business in that regard, you will have to acquire accommodation for your business.
In the early days, you can look at starting inexpensively by setting up in your home or somewhere else.
Once space is secured, the next step is installing the necessary equipment needed for the production of the kind of feed you have selected. The types of equipment you will be dealing with include grinders (wet and dry), Mixers (Wet/dry), steam boiler, cooker, freezer, elevators, conveyors, sifter, weighing scales, sealers and bag sewers and packaging bag. 
It is advisable you engage the services of professional industrial engineers who will arrange the machinery in such a way as to ensure a smooth production to bagging process, as well as to minimize losses.

5..Establish Relationship with Reliable Suppliers

The type of feed you intend to produce is dependent on the starter material you use. The feed formula for chicken feed is quite different from that for fish. Hence, you will need to have a reliable supplier of the raw materials you will need.
Some popular ingredients employed in the production of livestock feed include maize, corn and cassava grits for energy, wheat offal for protein and fibre, noodle wastes for carbohydrate and proteins, soybean meal, palm kernel cake, oyster shells, bone meals, yam peelings, minerals and salt.
Establishing a mutually rewarding relationship with sellers of these products will ensure you get discounts on bulk purchases and reliable supply so that there is no downtime for the production process.

6..Select Appropriate Packaging

While you have effectively come up with qualitative livestock feed, that comply with international standards, it is very important you differentiate your product with engaging packaging in order to gain market share and customer loyalty.
In this case, you can look at what your competitors are doing and improve on it. For instance, the input of your customers will be very important for your decision making. A number of them may want the livestock feed packaged in very large bags, while a few other would prefer small sized packaging.
In the end, your packaging choice should help bolster the sales of your livestock feed production business.

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