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Home > Blog > Animal Feed Pellet Line

Animal Feed Production Business Plan

Date: 2021-01-21
The feed industry is quite competitive, established players enjoy economies of scale and if you are starting for animal feed production business, you need a thoroughly analysed plan to earn you an advantage for a good initial market share. Animal feed pellet machine is the important equipment in animal feed production process.
animal feed pellet for farming

Why Starting Animal Feed Production Business Plan

Farmers spend about 220 billion dollars on animal feeds in the US annually, in a global spectrum this is not very different in Europe, Central America and Asia either, actually the UNFP Research in 2010 projected a 75% increase in demand for animal products by 2021, this makes animal feed production a great venture, you just need to plan right.
feed hammer mill

 Factors For Starting Animal Feed Production Business Plan 

1. Target market
Analyze the potential of your chosen production line thoroughly. You need to narrow down to a specific market, manufacturing feeds for all animals may not be a good idea, production methods for fish feeds and pet feeds is no where close to that of poultry, pig and cattle feeds. your market will be too dynamic. Three are on high demand and a plan with them as the main target will attract bigger market potential in most countries.
2. A Detailed Market Research
Do a market research on the animals in your local area, if you are planning to sell your plan to investors, you have to explain the uniqueness of your specific plan as compared to existing players. Choose the most attractive segment in the area with your revenue projections by establishing your basic achievable market share.
3. Equipment and Personnel
The investment animal feed production business plan will focus on the plant and equipment as the biggest expenditure in the initial costs, you need to invest in high quality equipment to achieve quality feeds. You could also invest in customized equipment for your needs which will call for more investment, use expert advice on the feed plant machinery you need before budgeting.
ring die feed pellet mill
4. Location
A good animal feed production business plan locates the plant closest to the customers. You also want your site to be as close to your suppliers as possible, the further you move from your customers the higher your distribution cost and advertising cost.
5. Raw Materials and Suppliers
It is important to plan for bulk buying in harvest seasons for plant based materials for the best prices, in your business plan, you need to explain your material source and possible suppliers after your market evaluation.
6. Feed Formula
Low quality feeds in any market will push you out of business or may cause legal huddles for your startup, a strong formula for feeds will put a small budget for professional opinion in the setting up of the formula and employee training.


Animal Feed Production Process

animal feed processing machinery
To hit the market running, quality is not all you need. From design, production to installation of feed equipment, professional services, a variety of classic feed processing plant for your reference, you will have to prove that you are able to serve farmers better than existing feed providers, yo can invest in customer incentives and farmer advisory services at an affordable startup cost. Choose a marketing that will cover your chosen segment effectively, it is a basic need for a good start.
Feed Pellet Mill Plant
cattle feed pellets for farming
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