Feed mill business is very lucrative in Nigeria. This is because the demand is on the increase due to increase in animal farming. It is traceable to wide consumption of animal products all over the globe. When you put all of these together you will come to the conclusion that it will still continue to rise because of the growth in our population. Before now feed milling was left for only few companies you can easily mention their names. I can remember two outstanding feed mills but as awareness and knowledge increased small-scale feed mills started springing up.
I remember my sister’s friend during his service year said he was going to start poultry feed production. He did his service in Imo State and started his feed mill 10 years ago today the guy is a don, he has many people in his employ.
Despite the fact that all animal feed products are produced here in Nigeria the price keeps increasing due to a rise in the cost of production. That is why entrepreneurs should take this open opportunity and invest in feed mill business.
Feed milling is the process of passing different food materials (solid/liquid) through machines to form pellets or cake for feeding of animals. It has to be animals we rear (domesticate) either for eating or pet keeping. There are many feed products we can produce examples are feeds for; poultry (chicken, peacock, turkey, ostrich and any kind of bird), dog, cat, pig, goat etc.
There are different kinds of equipment with different sizes you can use for milling. In this post my concentration will be on chicken; feed formular for laying birds. Feed materials are mixed these days in such a way that within six weeks a day old chick is matured for consumption. It doesn’t stop at maturity alone the feed is prepared in such a way that the chicken are tasty and strong when eaten.
EQUIPMENTS FOR FEED MILL PRODUCTION
- Mixer (vertical)
- Hammer mill
- Industrial weighing pelletizer
- bags sewers
- packaging bags
HOW TO START A FEED MILL BUSINESS
There are many raw materials everywhere you can use for your feed milling. Examples are soybeans, wheat, bone meal, crushed noodles, groundnut/palm kernel cake, spent grain which is one of the major ingredients in the production of poultry feeds.
Use local materials for the production so you can sale cheap. Or if you are producing for your own livestock you will save money or reduce cost to about 30-40%.
1. GET TRAINED
If this is a business you want to sustain then it is advisable you go for training. This is where you will be able to recognise the best formulation to make because you mustn’t make any mistake. This is a competitive business for you to have sustainable customers you have to produce quality feeds. Animal feed production will require you master the right quantity of mix to produce quality feed.
For poultry, you can train on how to produce feed for finishers, broilers, starters etc.
2. CHOSE A GOOD LOCATION
Chose a very good location for your feed mill business: it should be
- A busy route
Where you positioned your business can make or mar it. Make sure it is an environment were such products is needed. You know what it will mean siting your feed mill were no livestock are reared example setting it in an office environment. The building should include an office (for transaction), store (for keeping all the finished and raw materials) and a milling section where equipments are set up.
3. BUSINESS PLAN ON FEED MILL BUSINESS
Draw out a business plan for your feed mill business. The reason for this cannot be overemphasize. After drawing, you follow it to the letter while making adjustment were necessary. The prices for raw materials keeps fluctuating as such adjustments can’t be ruled out.
4. PURCHASE EQUIPMENT
You can start feed mill business in a small-scale by setting up a mini feed mill. Buy mixing and pellitizers that can produce 500kg per day.
The equipment has to be in place before purchasing raw materials.
5. BOOK FOR REGULAR SUPPLIERS
This is very important because you wouldn’t want to lose customers to other competitors because of lack of materials to produce feeds.
Although you can get some products like maize, wheat, soy beans in the market but others like cake and bonemeal has to be booked down with a milling company.
6. PACKAGING OF FEED MILL FLOUR
The packaging should be very neat to give a boost to your feed mill business. Use strong bags and print your on label on it. Decide on the kind of packaging whether 50kg bags or less. But to get to this level you have to register with the necessary agents.
7. REGISTER A BUSINESS NAME
Chose a name that is easy to memorize. To a clue from top feed, you can see how short and easy it is to remember the name. A business name will make it more professional.
FEED FORMULA FOR LAYING BIRDS
- Maize 500kg
- Soya bean meal 500kg
- Full fat soya 20kg
- Wheat offal 144kg
- Limestone 100kg
- Bonemeal 25kg
- Layer premie 2.5kg
- Metheonine 2kg
- Lysin 2kg
- Salt 3.5kg
- Toxin binder 1kg
This formula is for 40bags of layer feed which is 1ton (1000kg). You can buy concentrates from major millers and package them. We have plenty of such companies in major cities such as Lagos, Ibadan etc.
IMPORTANT THING TO NOTE BEFORE STARTING A FEED MILL
One of the things you have to put in place to run a successful feed mill business is to know the exact nutrient and the proportion needed for different birds. Then produce the feed for the birds using this findings. If the feed mixture is wrong, it will affect the birds by causing ;
- Growth retardation,
- drop in egg laying
- and eventual death.
MARKETING OF ANIMAL FEED PRODUCTION
Go round livestock or poultry farming in your location and introduce your business to them. You can carry sample along for them to taste it on their livestock. Reduce the price of your feed mill to gain buyers before raising it to what is best for you.
Advertise your feed mill business using social media such as Facebook, Newspaper Companies etc.
YOU CAN BE A FEED MILL DISTRIBUTOR
In case you don’t to be producing livestock feeds you can be a distributor to any of this upcoming feed mill producing companies. Most of them have good quality product that can compete with leading brands. You can start with 300 bags or 600 bags which is one truck load
To be a feed mill flour distributor, you should have about 1.5 mullion Naira for a start. This will serve for the feeds and transportation. That amount excludes; store, carpentry work and lighting.
CHALLENGES OF FEED MILL BUSINESS
The major challenge of feed mill business anywhere in the world and in Nigeria is how to get regular supply of raw materials regularly. That is why it is important to book suppliers down.
Bad weather, rain pattern and poor harvest make most farmers eat 50% of their farm produce. While keeping the remaining for onward sale during scarcity. Thus causing a rise on livestock feeds.
WHY YOU SHOULD START A FEED MILL PRODUCTION BUSINESS
The equipment for starting feed mill business (production) can be gotten locally. Likewise the raw materials.
Feeds have increase demand
Feed mill business is sustainable because the business can never be abated. Rather it will continue to grows as far as population keeps growing.
It is very profitable. If you can make money as a distributor how much more as a producer. If you buy a bag of feed for #2,000 you can sell it #2,500. Assuming you bought 1000 bags and sold them within a month, you will make #500,000. Yeah! That’s how lucrative feed mill business is.
There are many ways to make money from value added agro-products and this is one of them. Start making money today through feed mill business.