Animal feed is given to domestic animals, especially livestock and poultry, and plays a crucial role in their health and welfare. It includes fodder and forage, fibres, and concentrates. Modern animal feed is produced by carefully picking and blending ingredients to ensure highly nutritional diets that enhance the quality of end products, such as eggs, meat, and milk. Rapid urbanisation and increased consumption across different regions are driving the animal nutrition market growth opportunities.
While business is subject to the same unforeseeable ebbs and flows of any industry, there’s one certainty to count on: the global demand for animal products is projected to increase. To open a plant, you must be registered or approved under the feed hygiene regulations, which are aimed at ensuring product traceability. Additionally, you must seek approval for your activities, so submit an application to the competent authorities and pay the designated fee to cover the inspection. Approval or registration may be withdrawn if you fail to comply with the minimum standards.
Any aspiring entrepreneur can initiate an animal feed business, as the margin is lucrative. If you’re interested, here are some helpful tips for getting started.
Write A Business Plan to Figure Out Where You Want to Go
A business plan is a roadmap to success – it’s a long view of where you’re heading and how you’re going to get there. If you’ve already carried out a feasibility study, you have all the figures at hand, so the only thing you need to do is put them on paper. The executive summary is the first page of your animal feed business plan and must include a mission statement, a brief description of the products offered, and an outline of your financial growth plans.
Following is your company description, which must contain details like your business’ registered name, the address of the business location, and the names of key people. Your objectives should be clearly defined, measurable, achievable, relevant, and time-bound. Prospective investors want to know what sets you apart from the competition, so do your homework and get a better understanding of your competitors’ strategies. If you have any supporting information or additional materials, add them to an appendix.
When Budgeting, Focus on Two Types of Capital: Fixed Capital & Working Capital
If you don’t have the capital to work on this idea, that doesn’t mean your path to entrepreneurship is over; it’s just that it takes patience, hard work, and the willingness to try new things. As a rule, animal feed production requires two types of capital: fixed capital and working capital. Fixed capital refers to any type of physical assets, such as land, building, and equipment. Unlike other assets, it’s improbable they’ll be sold and transformed into cash in the future. If you invest in a building where the production process takes place, the building becomes the fixed capital.
Working capital is important for your animal feed business to run properly. It’s the difference between your current assets and liabilities; if you have a working capital deficit, you may have to borrow additional funds from a bank. Working capital is used to meet everyday financial obligations like rent, salaries, suppliers, and short-term debt interest. Taking a loan from friends and family should be the last resort and must be handled with immense caution.
Invest In Robust, Fast, Accurate Machinery and Equipment for Animal Feed
To start an animal feed business, you must procure dosing and weighing equipment engineered for a successful production. Please visit https://alfraequipment.com/en for innovative, high-tech tools. Dosing is an essential feature of the packaging process, so have a system in place that disperses components precisely for micro or macro quantities. Feed is becoming more elaborate and better balanced for the need of the animal, so even the smallest deviation from the norm can influence performance. Weighing machines measure the flow of granular and floury products, requiring very little space for installation.
Equally important is to invest in finished product handling equipment to load trucks neatly and swiftly, avoiding product damage or contamination. The animal feed must go from point A to point B, and this translates into transportation time. Make sure employees have the training they need to handle the equipment because safety requirements are becoming increasingly stringent. Bulk batches of powders, granules, and pellets can be transferred in every production environment to handle seasonal fluctuations and peaks associated with animal feed.
Besides food processing equipment, it’s necessary to have storage silos suitable for storing dry products. Stainless steel silos are the best solution for the storage of bulk animal feed, as they improve product flow and reduce residue; they’re highly tear-resistant, breathable, and food-safe. Look into flexible storage solutions specially designed to streamline storage and unloading operations of dry bulk products. The supplier will ensure the silo-related parts (augers, pipework, measuring and regulating systems). Of course, custom solutions are possible.
Mitigate The Rising Costs of Raw Materials for Animal Feed Production
The animal feed manufacturing process involves size reduction and combining different ingredients, such as:
- Soybean hulls
- Corn
- Milk products
- Dried and wet distillers’ grains
- Oats
- Wheat midds
- Vitamins
- Minerals
- Animal protein products
- Flavours
This list isn’t exhaustive by any means. Once you’ve selected the ingredients in the appropriate ratio, weigh the raw materials according to the formula, pass them through a disintegrator, mix the ingredients uniformly, and package the animal feed product.
Weather conditions, not to mention the costs of fertiliser, fuel, and transportation, have affected the availability and cost of raw materials, so there’s pressure to reduce spending. Many manufacturers resort to alternatives, more often than not locally sourced, to meet formulation objectives. You, too, can use additives for animal nutrition to boost the quality of the feed or the animals’ health.
Final Thoughts
Just like people require essential nutrients for growth and survival, so do animals. Market growth is primarily driven by the rising demand for healthy and safe animal feed, not to mention limitations on the use of antibiotics. Therefore, if you’re looking to thrive in this competitive world as a startup, keep ahead of the learning curve.
