How to Start a Feed Mill Business in Nigeria

The feed mill business is highly lucrative and competitive. And the Nigeria Poultry industry consumes millions of metric tons of the product yearly.
The Federal Governments focus on the farming industry has grown poultry produce by 50% in 2017. Analysts estimate the country would achieve 85% sustainability by 2020.  Making poultry farmers the primary market for feed makers.
The cost of an animal feed plant depends on many factors. They include size of the plant, type of equipment, staff, location and plant capacity. You can start an animal feed plant with USD $19 million or USD $50,000. It could be established in a massive warehouse or simple barn.
feed
Feed Types
Most livestock require some sort of feed. Common feed type are poultry feed, dog food and sheep feed. Others are equine nutrition, cattle feed, cat food, bird food and household pets. Catfish feed is also gaining popularity in many parts of Nigeria.
  • poultry feed
  • dog food
  • sheep feed
  • equine nutrition
  • cattle feed
  • cat food
  • bird food
  • household pets
  • catfish feed
Why Start a Feed Mill Business
The local feed industry is grown at an impressive rate. Local manufacturers have a steady source of raw materials and government incentives. 
Labor costs are also lower than advanced countries. And the major challenges are utility, equipment and quality of the produce. Local manufacturers are able to charge low prices than their foreign counterparts.
  • steady supply of raw materials
  • government incentives
  • low labor costs
  • charge low prices
  • huge market base
How to Establish a Feed Mill
Write a Feed Mill Business Plan
Write a feed mill business plan before establishing the business. Find a good location, purchase branded or fabricated machinery and hire qualified staff. You need a good marketing strategy, business registration and transportation.
Location
You can operate from a small shed or large warehouse. The location should be accessible to heavy duty trucks and have good storage facility. The location could be in an industrial or commercial area.
Licensing
You need an operational license to manufacture animal feed. The feed should conform to NAFDAC quality control and ingredients.
You would need a NAFDAC number and Tax identification number TIN. It is important you get insurance cover for the business.
Marketing and Distribution
Feed Mill is an essential commodity for livestock farmers. Without sustenance the animals would not grow or produce.
To market your feed you need to network with feed retail outlets. Offer your produce at fair prices and give discounts.
The quality of your feed is very important to the success. Farmers instinctively now the best feed through observation and growth rate of their stock.
If your product is high quality they will buy irrespective of the price. However keeping the price competitive is very important.
Another way to sell your produce is via direct contact with farmers. A big farm is capable of buying several tons of feed monthly. Offer to transport the feed to the farm free of charge.
Other marketing strategy is to use electronic and print media. Advertise on television and radio. Use flyers, posters, banners and billboards.
Build a Website
You can reach more people by building a website. Make sure the site is easy to navigate and add you product image, sizes and description. You are at liberty to add prices, customer service hot line and contact form. Your website should target your demography and customer base.
Join a Social Site.
Use social media to reach potential clients. You can create a Facebook page and post regularly. The post should target your demography, add images of your product, location and price.
Equipment
The type of equipment would produce either high grade or low grade feed. Common equipment to consider is pelletizer, weight balance, vertical mixer and hammer mill. Others are extrude, bulk storage system, conditioners, coolers and dryers. More are crumblers.
  • Pelletizer
  • weight balance
  • vertical mixer
  • hammer mill
  • extrude
  • bulk storage system
  • conditioners
  • coolers
  • dryers
  • crumbler
Quality Control
Quality control measures are important to achieve uniformity. You need good looking product to compete with other brands.
Pay attention to the appearance and quality of the extruded feed pellets. Things that affect quality are production process, type of extruder and uniformity control. The grinding and particle size reduction should be uniform.
Bagging and Labeling
Feed are generally packaged in water tight bags. To differentiate your product, brand the bag with your feed name and logo. On the label you need to add product description, size and type of animal.
Labor
You need experienced staff to run the mill. Hire machine operators, casuals, drivers, secretary and manager. You need an accountant, stock manager and quality control managers.
Other staffs are marketers, casual labor and cleaners. A small operation can survive with very few workers. However they may have to perform dual roles and jobs.
Feed Manufacturing
The process of making animal food from agricultural products is feed manufacturing. The food is produced to accommodate specific nutritional requirement of the animal.
The manufacturers also include whole grain and concentrate into the mix. And the production is generally governed by state or federal laws guiding the production.
Basic ingredients include roughage, cereal grains, grass and concentrates. The formulation process differs from one animal to the next. Different formulas are attributed to swine, fish, poultry or livestock.
Common Ingredient in Animal Feed
Common ingredients in animal feed are cassava and bran. Others include soy meal, rice bran and corn. The protein content is properly regulated including energy and moisture.
Feed Formulation Process
The process starts with the raw materials then quality inspection. The batch is weighed before proceeding to the grinding station.
The next process is the mixing, pelleting and cooling before the crumbing. The final product undergoes quality inspection, weighing and packaging. Not all the products are sold straight from the shelf most are sent to storage.

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