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Starting a livestock feed mill

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Feed milling business is a growth enterprise in Nigeria. The Country feed mills produce feed for mostly poultry (chicken, turkey, ducks, guinea fouls, and quails, among other birds). Other classes of livestock that rely on the feeds produced by feed milling enterprise are pigs, fishes, rabbits, goats, cattle, sheep, etc.

Market Prospects

Feed mill business is one of the currently booming businesses in Nigeria. The rate at which poultry and other livestock products are being consumed can be linked to the geometric growth in population. With the increase in population comes a high demand in production of poultry and other livestock products.

Raw Materials
The most commonly used ingredients used for feeds in Nigeria are: maize, soya beans, groundnut cake, wheat offal, fish meal, and bone meal.

Equipment Needed
Automated machines are the principal forces in feed mill production in Nigeria or anywhere around the world. The two types of equipment are semi-automated and fully-automated injection mills machines. Some mills are produced in Nigeria, while the rest are imported.

Some equipment for feed mill production in Nigeria are;
Mixer (could be either a vertical or horizontal mixer)
Crusher and grinder (Hammer mill, burr mill, attrition mill, jet mill, roller mill for particle size reduction). You may have one or more of the crushers or grinders.

Pelletizer
Warehouse and/or Storage Bins
Transportation and Conveying Facilities

Generator
Scales; which will include the dial beam scales
Hand-held sewing machine (for bagging)
Ear muffs and goggles and respirators
Protective Clothing (helmet, overall and protective boots)

Production Process
Feed manufacturing involves mixing all the feed ingredients in the formulation together.
The nutritionist formulates the feed using available ingredients. Nutrient compositions of feed ingredients are available in NRC tables. A good understanding of feed formulation guarantees that during periods of shortage of one ingredient, a substitute or a non-regular ingredient that is cheap and readily available can be incorporated into the feed.

Other important processes involved in feed production include:

Weighing:
Particle Size Reduction:
Mixing:
Bagging:
Distribution/Marketing Options
The envisaged plant can set up its own sales/marketing team to engage in a sustained one-on-one sales drive. Advertising options could be based on usage of flyers and referrals.

Manpower Requirement
A total of 10-25 staff is required in the short-term operations of the plant. They include, Skilled Worker – 2; Semi-skilled Workers – 6; Salesmen – 1; Driver-cum-salesman – 1; and Security Operative – 1
Estimated Start-Up Cost (Small Scale): N8,500,000 – N11,500,000.00
Potential Profit: N12,500,000 – N16,000,000.00 per annum
Estimated Start-Up Cost (Medium – Large Scale): N25,500,000 – N75,500,000.00
Potential Profit (Medium – Large Scale): N35,000,000 – N60,000,000.00 per annum

This profile, or any similar one, can be developed into a bankable proposal for any interested investor. For further clarification, do contact our offices or info@michaelstevens-consulting.com.


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