business plan on animal feed

animal feed business plan : how to start and how profitable

Why starting animal feed business plan.

before starting to talk about how to start animal feed business, let us first introduce animal feed and the animal feed market, what is animal feed? Animal feed is nothing but food consumed by livestock in the process of animal husbandry. The success of commercial livestock farming depends to a large extent on the consistent provision of the highest quality nutritious feed.

While U.S. farmers spend about $220 billion a year on animal feed, globally, the picture isn’t all that different in Europe, Central America, and Asia. In fact, a 2010 study by the United Nations Programme estimated that, By 2020, there will be more demand that will grow by 75%, making animal feed production a great business that you just need to plan correctly.

Planning Your Small-Scale Animal Feed Business

In India, animal feed production business is an ancillary service of the primary industry. Commercial production of high quality animal feed is a profitable business which gives the growth of the animal husbandry industry and population demanding more resources. As demand increases, the price of these feeds will rise steadily as well, benefiting business owners. Hence, the future prospects for the business look good as the demand for animal products is increasing.

so according to the above information, just thinking about how to start animal feed business plan on a small scale. Don’t worry about starting. We will guide you on all the details such as where to get training for your animal feed manufacturing business, what is a legal license and registration. Mandatory, how profitable is animal feed business, how much investment in animal feed business? and what equipment needed to start animal feed business. Of course, you can start your animal feed business plan anywhere: for example in USA, in India, in Nigeria, in South Africa, in Kenya, and in Philippines and so on.

video of feed mill factory for animal feed business?

how profitable is animal feed business?

how profitable is animal feed business? it is not fixed, generally, the annual profit of a small feed factory is directly linked to the annual production capacity. That is to say, the higher the annual output, the higher the annual profit. Usually, the annual output of a small feed factory can reach about 2,000 tons. If the profit is calculated in tons, then the profit in one year amounts to about $100,000-$150,000. This calculation is based on a small feed factory with an annual production of 2000 tons. If you invest in a larger factory, the prospects for profit in the animal feed business are significantly greater.so do you want to invest in an animal feed pellet production line ?

how much investment in animal feed business?

You need two types of capital to run any feed production business: fixed capital and working capital. You need to invest in fixed capital for manufacturing your product, which includes machinery, setting up plants, and similar expenses. Working capital is necessary for paying salaries, overhead, raw materials, transportation, storage, etc.

If you want to invest in a larger animal feed business, you will need approximately $70-1.5 million to start this business. Purchasing quality feed mixer machine and feed pellet mill from suppliers requires most of the money. After that, you must continually supply the ingredients needed to make your food. Please note that the approximate figures above refer to the supply of machinery and materials and do not include the location of the plant or the area where the business is established. Factories can often be located in rural areas at low cost.

But if you just want to invest in a smaller animal feed business, the starting barrier for a small feed mill is still low compared to the investment costs of a large feed mill , which often run into the millions. Typical investment costs are around $20,000 to $100,000. Of course, the costs are only estimates, and the exact costs are subject to the actual situation.

what equipment needed to start animal feed business?

Small feed factories generally refer to the kind of production and processing factories that are similar to family workshops. The required site requirements are not high. You only need to purchase 1 feed crusher, 1 feed mixer, 1 feed pellet machine and 1 sealer, and then purchase some processing raw materials. Such as fish meal, corn, soybean, whey powder, rapeseed meal, etc., basically have the ability of feed production and processing. but if you invest in large feed factory, you need more equipment. you can check our list of feed mill machinery here.

how to start animal feed business plan?

1. need to know the specific procedures for setting up a factory.

this is the first step of how to start animal feed business plan, To open a small pellet production line , you need to go to the local industrial and commercial bureau for industrial and commercial registration, then obtain a production and operation license, and apply for a tax registration certificate at the taxation department. For the related procedures of tax exemption of products, it is generally recommended to apply for trademark registration at the county or provincial level in the industrial and commercial department, considering the protection of feed brands.

2. Pay attention to the choice of venue

The location of the cattle feed business plan should be closest to the customer. Also, you need your business to be as close to suppliers as possible. The further away you are from your customers, the more you will have to pay for advertising and delivery. Generally, a small feed factory needs to have an independent factory area, the production workshop needs to meet the requirements of the production process, and the traffic should be convenient. Lighting, dust removal, ventilation and firefighting measures.

3. people and equipment

equipment is most importance in how to start animal feed business, equipment requirements are simple and efficient, with a focus on production performance that allows equipment manufacturers to select affordable parts and maintain easy-to-maintain service. Relatively speaking, the return on investment for feed mills is still relatively high. If we can continue to improve the quality of our products while working to build our team and do precise work in our local regional market, the outlook is still very promising.

4. Conduct thorough market research

Conduct market research on the livestock in your area and plan to provide your ideas to investors. Choose the most attractive areas to market your plan and calculate your revenue projections to set your initial market share.

5. Supply and Raw Materials

It is critical to consider buying in bulk during the harvest season to get the highest prices for plant-based materials. Include this in your business plan. You will need to describe the sources of materials and possible suppliers after a market assessment.

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How to Start an Animal Feed Business in 14 Steps (In-Depth Guide)

Updated:   February 22, 2024

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The animal feed industry is a major market, with sales projected to reach $166.88 billion by 2032. As rising incomes drive greater meat consumption demand for quality animal feed continues to surge. Entrepreneurs who can develop nutritious, affordable formulations can stake their claim in this rapidly growing sector.

New entrants also face competition from established feed mills and integrated livestock producers with their feed manufacturing operations. Transporting bulky feed ingredients and distributing final feed products while keeping costs low also pose logistical challenges.

This guide will walk you through how to start an animal feed business. Topics include market research, competitive analysis, registering an EIN, obtaining business insurance, marketing, and more.

1. Conduct Animal Feed Market Research

The first step before launching an animal feed operation is thoroughly analyzing the target market. Market research helps you develop a thorough business plan and optimize marketing and sales for your animal feed production business.

Some details you might learn through cattle feed production business market research include:

• The expansion of commercial livestock farming creates demand for nutritionally optimized feeds to enhance animal performance.
• Innovation in feed ingredients and additives to promote animal health, improve feed efficiency, and meet nutritional requirements for various animal species and production stages is another factor.
• Many small-scale or regional feed mills fill local market demand not met by national players focused on large commercial feedlots.
• Potential targets include smallholder farmers or hobbyists raising livestock, who need customized feed in smaller quantities than commercial feedlots purchasing bulk loads.
• Organic livestock farms with specialized nutritional needs or restricted access to conventionally grown feed components are another opportunity.
• Specialty feeds for equine facilities, pets, aquaculture farms, zoos, or other non-traditional markets represent further prospects (e.g. cricket farms , worm farms , etc.).
• Niche sectors see above-average growth as owners increasingly humanize animal diets.
• Contract feed manufacturing for integrated livestock companies supplying feed for their internal needs or regional customer base is another option.
• Gaining keen insight into your local feed market’s dynamics and growth factors will dictate the viability and strategy of a new mill.
• Useful data to analyze includes the number and types of livestock farms or feed buyers in your target region; feed production, and usage trends based on livestock inventories.

Conducting in-depth animal feed market research will determine if launching a feed mill in your area addresses unmet demand from underserved farmers. It also informs strategic decisions regarding ideal feed formulations, production volumes, pricing, and how to competitively position your products.

2. Analyze the Competition

Gaining a comprehensive picture of the competitor landscape is vital when assessing the viability of an animal feed operation. This analysis should examine both local brick-and-mortar feed mills as well as larger integrated livestock producers that manufacture their feed.

To evaluate regional feed mills, drive around the area to identify all existing establishments. Gather data on their longevity, production capacity, product offerings, pricing, and any niche markets served. Talk to their customers to gain insight into perceptions of quality, customer service, and loyalty.

Search regional business registries to compile information on their annual revenues, staff size, and ownership structure. Monitoring their social media and online presence weaknesses is also useful for tracking expansion plans or new products.

Online tools can provide additional data on competitive standing. Search engine results indicate relative search visibility while Facebook and Google reviews reveal customer sentiment. Utilizing SEO software shows keywords competitors rank highly on and where potential gaps exist.

Trade association membership rosters are another place to identify regional feed mills and livestock producers. Their industry publications may feature member news on capacity expansions, represented commodity groups, and longevity milestones.

Analyzing the strengths and weaknesses of current feed suppliers will shape decisions on geographic focus, product mix, and marketing for a new entrant. It also signals where opportunities exist to forge partnerships, such as contract manufacturing deals, rather than pure competition.

3. Costs to Start an Animal Feed Business

Embarking on an animal feed mill venture requires extensive capital outlays before production begins and ongoing operating expenditures to sustain operations.

Startup Costs

Facility Infrastructure and Equipment

• Building purchase/lease ($100,000-$500,000+), renovations ($50,000-$250,000), permitting fees ($5,000)
• Feed milling and blending equipment (e.g hammer mills, mixers, conveyors) ($50,000-$200,000)
• Delivery trucks and industrial weighing scales ($50,000+$30,000)
• Industrial racking, pallet jacks, and grain handling accessories ($5,000)
• Safety equipment like dust collection systems and spill containment ($20,000)
• Initial ingredient inventory orders (~$100,000)
• Security system, fire suppression, telecoms/internet ($10,000)

Administrative, Consultancy, Licensing

• Business registration and licensing fees ($500)
• Consultancy from animal nutritionists on feed formulations ($5,000+)
• Lawyer fees for liability protection and contracts ($2,000)
• Commercial general liability insurance ($1,500/yr)

Working Capital

• Employee salaries during pre-revenue setup phase ($30,000)
• Marketing costs like website, and promotional materials ($5,000)

A $500,000 minimum is typical for scaling equipment and 3-6 months of working capital to become operational. Economies of scale dictate higher startup costs for larger production targets.

Ongoing Costs

Raw Materials

• Grains, seeds, hay, supplements, etc based on formulations ($300,000+ annually)
• Packaging like bags and tags ($15,000)

Operating Costs

• Labor: Feed mill manager ($60,000/yr salary), operators ($40,000/yr, 2+ staff), drivers ($35,000/yr, 1+ staff), admin support ($35,000/yr)
• Loan repayment costs on equipment, facilities, and ingredients
• Electricity, gas, and water utilities ($30,000+)
• Equipment maintenance and repairs ($20,000)
• Insurance premiums
• Vehicle fuel and transportation costs of ingredient procurement and feed delivery ($50,000+)
• Telecoms and internet access ($5,000)
• Rodent control and food safety testing ($15,000)

Sales, Marketing and Distribution

• Website hosting, digital ads, and printed promotional materials ($15,000)
• Commissions to sales agents or farmer cooperatives ($100,000 on $5M revenue)
• Distribution logistics to get feed to customers ($50,000+)

Other Charges

• Accounting fees
• Legal and professional services fees
• Loan interest payments
• Local business licensing fees (~$500/yr)

Careful financial planning and cash flow management are vital with the considerable invested capital required and significant recurring overheads to sustain an animal feed operation. But for dedicated entrepreneurs this steadily growing sector holds long-term profit potential.

4. Form a Legal Business Entity

When establishing a new animal feed venture, one of the first legal steps is selecting an ownership structure that provides liability protections while easing future expansion plans. Key options include:

Sole Proprietorship

A sole proprietorship is the simplest and most common small business structure, especially when initially launching operations. A single owner controls the entire company and assumes all profit/losses. The owner has unlimited personal liability for debts and legal claims, placing personal assets at risk.

Partnership

Forming a general or limited partnership allows the pooling of capital and talents from multiple owners under one animal feed business. Partners split managerial duties, financing burdens, and company earnings based on predefined ratios.

Limited Liability Company (LLC)

For feed mill entrepreneurs seeking liability safeguards plus operational flexibility, forming an LLC is advisable. LLCs limit owners’ financial responsibilities to their investment amount while avoiding “double taxation” of corporate profits. They accommodate unlimited owners through flexible membership units versus static share amounts.

Corporation

C-corps provide the highest level of personal liability separation but face double taxation of profits and cumbersome record keeping. Issuing company stock allows raising funds from unlimited shareholders but restricts everyday management roles predominantly to directors and officers for legal protection. Corporations are expensive and complex to form.

5. Register Your Business For Taxes

Before an animal feed operation conducts any sales, proper tax registrations must be completed to comply with IRS and state requirements. The first mandatory step is obtaining an Employer Identification Number (EIN) .

What is an EIN?

An EIN serves as a business’s IRS tax ID number for tax filing and reporting purposes. Similar to an individual’s Social Security Number, the EIN uniquely identifies your feed business to federal and state tax authorities. Some key reasons animal feed entrepreneurs need an EIN include:

• Opening a bank account specific to your company’s financials
• Applying for business licenses and permits
• Registering for state tax obligations like sales tax
• Hiring employees and paying payroll taxes
• Filing annual IRS tax returns for your business revenue/expenses

Applying for an EIN is free through the IRS website and takes just minutes to complete. Simply navigate to the IRS website and respond to basic questions about your company structure, ownership details, and contact information.

Along with your federal EIN, contacting your state revenue department is necessary before selling any feed products. Sales tax obligations vary by state but often require obtaining a special seller’s permit, collecting tax on sales to in-state customers, and submitting regular sales tax returns.

Your county administration may also impose certain permitting rules for local sales tax collection. Confirm precise requirements for your feed mill’s physical nexus locations but expect registration fees below $100 when launching operations.

6. Setup Your Accounting

Proper accounting practices are essential for animal feed entrepreneurs to control finances, ensure tax compliance, and provide credibility to stakeholders. Investing in tools and services to establish robust bookkeeping systems has both short and long-term benefits.

Accounting Software

Rather than relying on spreadsheets, feed business owners should utilize dedicated small business accounting platforms like QuickBooks . Integrating directly with bank accounts and credit cards, transactions are automatically logged for near real-time visibility into cash flow.

Hire an Accountant

Handling key accounting activities in-house does not eliminate the need for professional expertise. Feed mill owners should establish relationships with accredited accountants or bookkeepers to advise on registering the business, implementing financial systems, and training staff on processes like payroll and inventory management.

Open a Business Bank Account

Maintaining completely discrete financial accounts for personal and feed business transactions reduces accounting confusion and improves loss protections. Establishing dedicated small business bank accounts and credit cards earmarked solely for company activities enables cleaner documentation of tax-relevant income and deductions.

Apply for a Business Credit Card

Apply for credit cards in your company’s legal name using your EIN. Issuers will assess eligibility based on projected revenue and your credit score. With approvals, use for all feed mill purchases then pay balances from the business bank account. Keeping finances distinct now simplifies everything later.

7. Obtain Licenses and Permits

Animal feed producers must secure relevant business licenses and regulatory approvals before manufacturing and selling feed. Find federal license information through the U.S. Small Business Administration . The SBA also offers a local search tool for state and city requirements.

Per the U.S. Food and Drug Administration (FDA) Food Safety Modernization Act, all facilities engaged in animal food manufacturing must register with the FDA. This allows government oversight over feed safety processes and enables tracking in case of ingredient contamination issues.

Registration is submitted electronically through the FDA’s website. For domestic feed mills, expect typical registration costs under $500 annually. Renewal is required biennially.

States administer their own permitting rules for feed manufacturing to ensure quality standards are met. These requirements center on appropriate labeling, nutritional claims, medicated ingredient disclosures, and sanitary warehousing practices for bulk grains vulnerable to fungal toxins.

Operators must demonstrate professional training in feed production or animal nutrition. On-site inspections will verify adhesion to regulations regarding equipment, storage warehouses, standard operating procedures, and hazard controls. Annual licensing fees vary but usually fall below $200.

Since animal feeds are sold by weight, feed mills utilize industrial scales to fill delivery trucks and prepare customer-specific ration quantities. To ensure accuracy, state departments of agriculture oversee scales via permit schemes and periodic testing by inspectors.

Some counties and cities impose local-scale licensing too. Expect potential fees to reach $100+ annually per weighing device. Proper calibration by accredited technicians is also periodically required.

Certain feed ingredients or production byproducts may impose special permitting rules depending on the state. For example, ingredient receiving and feed mixing generate dust that may necessitate industrial ventilation permits above certain volumes.

Separators reclaiming salvageable products also produce wastewater possibly requiring pretreatment and municipal sewer discharge allowances. Understand specific environmental rules for facilities under consideration.

While permit costs are generally minor, particularly compared to investments in milling equipment and ingredients, non-compliance risks product holds, fines, license revocation, or even facility closure. Seek guidance from legal and engineering consultants when interpreting applicability.

8. Get Business Insurance

Purchasing adequate insurance coverage is vital for animal feed businesses to mitigate financial risks from unforeseen losses. Without policies guarding against potential liabilities, a single event could lead to bankruptcy.

Common coverages to discuss with commercial insurance agents include:

• General Liability Insurance: This protects against third-party bodily injury, property damage, personal injury, and advertising injury claims stemming from your facilities, operations, products, or employees. For example, consider if a contracted truck driver slipped and fell on a spill while picking up feed, suffering chronic back pain.
• Product Liability Insurance: Closely related to general liability policies, this specifically covers damages caused by issues with the feed you produce and sell like contamination, nutrition errors, or choking hazards from foreign objects.
• Property Insurance: This covers your physical assets like milling equipment, delivery vehicles, ingredient inventories, and facilities against losses from natural disasters, theft, vandalism, or electrical surges. Without coverage, replacing damaged assets could be financially devastating.
• Workers Compensation: Nearly every state legally mandates worker’s compensation plans covering medical care, lost wages, and rehabilitation services when employees get injured on the job.

9. Create an Office Space

An office setup provides a centralized hub for animal feed mill administration duties. Housing staff managing orders, marketing, accounting, and coordinating with livestock farm customers, offices grant professionalism and efficiency. Depending on capital and space requirements, several formats fit the bill.

Home Office

Telecommuting from a spare bedroom or basement keeps overheads low. With accounting platforms accessible online and orders managed electronically, little physical infrastructure is needed beyond a computer, phone, and filing cabinets for around $3,000. However, home offices can prove distracting for staff and offer little room to meet clients.

Coworking Spaces

Shared workspaces like WeWork provide office infrastructure from conference rooms to printers without capital expenditures. Networking opportunities serving diverse industries also arise but industrial feed storage is prohibited. Coworking suits startup feed marketers but production staff need other bases.

On-Site Office

Some feed mills sell directly to farmers from a small retail storefront adjoining their mill or warehouses. This allows customers picking up feed bags or livestock owners to discuss orders, special formulations, and pricing. Dedicating 500 square feet to a few desks, product samples and a consultation room builds sales.

10. Source Your Equipment

From hammer mills and mixer wagons to conveyors and inventory silos, an array of specialized equipment is vital for feed manufacturing and storage. Both new and used options can equip startup mills based on budget constraints.

Purchasing and gleaming new machinery from equipment dealers ensures acquiring desired features while benefiting from warranties covering repairs. Top manufacturers like Anderson and RMS Roller Grinder offer hammer mills, roller mills, mixing wagons, pellet mills, and automated delivery systems.

Buying Used

To conserve capital, shop previously owned equipment through auction sites like FSA and dealers reselling trade-ins. Expect to pay 40-60% less than new options. However, scope choices narrow to available inventories, frequent maintenance is expected, and hidden wear issues may surface.

If manufacturing niche seasonal feed varieties or confirming sales volumes before major equipment buys, renting lets entrepreneurs defer investments. Online equipment marketplaces like GNS Equipment Rentals offer nationwide rentals for hammer mills, conveyors, mixers, and industrial bagging stations from $500 per week including delivery/installation.

Several equipment finance firms propose multi-year leasing of essential feed processing and handling equipment like silos, generating sets, or automated micro-ingredient scaling systems. This may enable acquiring advanced machinery while preserving capital for ingredients and operating expenses.

11. Establish Your Brand Assets

Crafting a memorable brand identity helps feed mills connect with local farmers while conveying quality and expertise. Key elements to implement include:

Get a Business Phone Number

Purchasing a unique toll-free phone number from providers like RingCentral gives farmers and suppliers a consistent call center to inquire about orders, discuss custom formulations, or troubleshoot deliveries. Call routing, voicemail, and FAX services centralize communications for a growing venture.

Create a Logo

A custom logo instantly conveys professionalism and memorability. When developing logo concepts with online design services such as Looka . Consider an icon representing livestock health alongside the feed mill’s name. Complementary color palettes, typefaces, and graphical flourishes make for unique logos.

Print Business Cards

Vistaprint’s affordable, high-quality business cards enable networking with potential customers at trade shows or agricultural events while cementing legitimacy. Cards list essential contact info alongside staff titles and regional service areas. Enable all client-facing team members to share cards freely.

Get a Domain Name

Secure an intuitive .com domain for your venture via registrars like Namecheap . Aim for short, simple names mentioning your locale and “feed” while checking availability.

Design a Website

Develop an informational website through user-friendly site builders like Wix to share founder bios, location/hours, inventory categories, specialty product callouts, and farmer testimonials. This builds trust while enabling convenient ordering. You can also hire a freelancer through sites like Fiverr .

12. Join Associations and Groups

Tapping into livestock associations, trade events, and online forums fuels success for new feed mills by enabling collaboration with industry peers. Key groups to engage include:

Local Associations

State-level trade organizations like the Agribusiness Council of Indiana or California Grain & Feed Association host conferences covering regulatory trends in feed safety, quality benchmarks per species, and inspector training while lobbying for favorable legislation. Local chapters promote member feed mills while providing forums to exchange insights on regional market dynamics.

Local Meetups

Attend regional agriculture conventions like the World Dairy Expo to showcase products, understand farmer pain points, collect competitor intelligence, and absorb best practices from seasoned feed producers nationwide. Sites like Meetup list upcoming trade fairs by state including entry fees.

Facebook Groups

For on-demand troubleshooting, inspiration, and camaraderie, join groups like the multi-thousand-member Animal Feed Market and Poultry and Animal Feed Making Machine . They share advice on feed mill operations, animal nutrition, recipe customization, and pharmacy partnerships. Search for additional niche communities relevant to the species your feed targets.

13. How to Market an Animal Feed Business

Implementing multifaceted marketing exposes specialized feed products to local livestock producers and cement enduring farmer relationships. Tactics to deploy include:

Referral Marketing

Satisfied clients provide the most credible validation so request introductions to similar farms near existing customers. Offer modest incentives like 10% off their next batch for every three referrals. Word of mouth from trusted community members outweighs any advertisement when evaluating suppliers.

Digital Marketing

• Google Ads geo-targeting farmers by zip code raises visibility for informational search queries like “cattle nutrition supplements”. Expect to invest $100-$500 monthly while analyzing click-through rates.
• Facebook’s robust targeting by geography, interests, age, and behaviors enables the narrow promotion of new blends to specialized niches for under $10 daily. Share organic farm success stories.
• An email newsletter with seasonal tips, new product launches, and research insights encourages existing customer loyalty and referrals.
• YouTube videos touring the feed mill facilities and showcasing ingredients/formulations convey transparency around quality control.
• Submit articles covering calf-rearing advice to homesteading blogs building subject authority and backlinks. Consider contributor deals.

Traditional Marketing

• Print brochures and catalogs at local feed supply stores explain specialized services versus big-name brands along with nutrition specs and testimonials.
• Radio spot advertising on agricultural stations expands awareness before peak seasons like spring livestock breeding. Negotiate discounted packages.
• Booth exhibition at statewide county fairs provides direct customer conversations explaining custom feed cost benefits over DIY mixing.
• Flyer placement at rural noticeboards in feed stores, tractor suppliers, and livestock veterinarians attracts area farmers.

Blend digital engagement with local outreach for regionally recognizable feed mill positioning. Monitor engagement levels and conversion rates across initiatives to optimize budget allocations moving forward.

14. Focus on the Customer

Delivering exemplary customer service is essential for your animal feed manufacturing business to stand apart while earning enduring farmer loyalty even facing pricing premiums over big brands. Small touches make major impressions.

Enable multiple ordering channels via phone, email, online, and in-person so farmers who lack smartphone access aren’t inconvenienced. Train staff to patiently answer formulation questions from first-timers unsure how the percentage protein/fat rations impact Holstein weight gain.

Offer hassle-free delivery changes when harvest schedules shift. Send handwritten birthday cards to top clients. These personal touches build community rapport.

Set up formal customer feedback channels like quarterly surveys, Facebook reviews, and a suggestion email. Solicit photographed testimonials for the website from delighted farmers. This feedback tailors offerings to local needs while improving transparency on quality controls.

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April 9, 2024

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Feed and Farm Supply Business Plan

Start your own feed and farm supply business plan

Latheethen Feeds

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

The following plan is based on 16 years of experience, is highly focused and promises to follow a path of prosperity for its owners and staff. It is based on conservative sales figures, and actual sales may be higher. The projections contained herein are authentic and will be used as the budget for the business. Latheethen Feeds, Inc. will show a profit immediately, and will increase sales and profits each year thereafter.

Latheethen Feeds, Inc. is a well-established custom feed store. The company is engaged in the production of custom livestock feeds, bird feed, deer feed, and other animal products in relation to livestock animals, pets, etc. Latheethen Feeds, Inc. has recently expanded its production facility (custom mill) and is well-positioned to market its workroom production beyond its present client base. The company is dedicated to providing the highest quality customer service, meeting the agreed delivery dates, and keeping the sales prices controlled in accordance with ongoing market trends. The focus of this business plan is to identify future target clients, explain our marketing strategy, improve internal procedures so we can substantially increase profitability, and obtain the funding required to expand the business.

Latheethen Feeds, Inc. is located in Pleasantville, Michigan. The company is a privately owned corporation and has been operating for nearly 16 years. The previous owners live next door to the store, and are planning on moving to their retirement home in Northern Michigan, as soon as this business transaction is completed. However, since the current owners and new owners are in fact family, the current owners will be around if needed and to visit on a bi-weekly basis.

The six counties surrounding Latheethen Feeds contain an estimated 14,695 livestock farms, and 20,434 hunters. However, the entire state is an open market once delivery to customers is an option. Latheethen’s would then be in the market to compete for the business of 53,315 farms. USDA records show that a quarter of a billion dollars is spent annually on feed in the State of Michigan by these same farms. The company’s estimated existing share of the nearby market is less than 1%. Previously, the owners have established an estimated $140,000 of the state total on an annual basis. They have accomplished this without any form of advertisement, and without any outside sales. The new owners are focused on growing the business to gain a greater share, $260,000 annually, of the state total.  

The marketing research and tailored marketing strategy described in this business plan will result in after-tax profits of $22,806 in Year 1 and increasing to nearly $30,000 in after-tax profits within three years, despite significant new advertising and renovation expenses.

To achieve these goals, Latheethen fields needs funding for two different phases of expansion. We are currently seeking a $15,000 short-term loan, to be repaid within two years. This loan will enable us to purchase a delivery truck, a key element of our new sales and marketing strategy. In early Year 2, we will need a second, long-term loan in the amount of $135,000, to build the area’s premier equine boarding stable. The addition of “Mid-Town Meadows” will not only be another source of revenue, but also another source of feed sales. Mid-Town Meadows will be a comfortable, inviting equine resort designed to make our customers and their horses feel as if they are enjoying VIP services in a world all to themselves. The decor and theme will be rustic (log exterior walls), yet formal (private club house overlooking the enclosed arena). The feed store is already located at the main entrance, next to a cascading water fountain and company signs. 

1.1 Objectives

There are five primary objectives by which the success of Latheethen Feeds will be tracked:

• Maintain 100% of existing customer base by consistent customer service.
• Expand our customer base through direct referrals and agressive direct sales. 
• Expand our product line gradually, based on customer requests.
• Expand our custom feed mill to meet the growing sales market.
• Expand the types of services offered to our customers, as their desires are identified.

1.2 Mission

Latheethen Feeds is a family owned and operated company, dedicated to providing our customers with the best premium products and services on the market. Latheethen’s offers all of our customers the direct personal attention they deserve. Our committment to customer service and satisfaction assures us that our customers are 100% satisfied with our products and services.

1.3 Keys to Success

The primary keys to the success of Latheethen Feeds are as follows:

• Product freshness and quality.
• Variety and price.
• Constant research of industry to keep knowledgeable of market needs.
• Management: products delivered on time, professional customer service, managing budgets.
• Constant evaluation of strengths and weaknesses with adjustments made as warranted.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Latheethen Feeds is a mid-Michigan based farm and feed store dedicated to providing our customers with professional services and high quality feed products. Latheethen’s offers only the best feed and products in the industry. Latheethen’s also offers our customers the option of a custom made feed. Our mill enables us to provide high levels of quality products that are always fresh and available. Latheethen’s primary focus is on keeping our customers satisfied. Professional and reliable service, competitive pricing, and a knowledgeable staff will provide for continued growth in the years to come.

Latheethen’s was founded in 1989 by Chris and Steve Latheethen. Their hard work and dedication has proven to be successful, as Latheethen’s is now one of the area’s premier feed stores and the only one specializing in custom-made feed.

The future of Latheethen’s is looking bright with younger family members taking over ownership. Our focus is on the core products, our sales and promotions emphasize our history and reputation for quality and customer service. With the addition of new energy and enthusiasm from younger owners, we will increase sales and the bottom line. Even though the new owners have the time, energy, interest and knowledge to invest in an already successful family business, our greatest asset will be our committment and pride in protecting and growing the business.

In the past, Latheethen’s has been just a feed store…in the future Latheethen’s will grow to become not only a larger provider of quality feeds, but also a boarding stable and resource for customer with inquiries about all areas of pet care.

2.1 Company Ownership

The new owners will share 50/50 ownership and they are as follows: 

• Kay Latheethen

2.2 Company History

Latheethen Feeds was founded in 1989 as a privately held corporation registered in Midland County, owned and operated by Chris and Steve Latheethen. It was originally a retail company that sold feed and supplies to local customers.

Chris and Steve recognized the need for more variety in products and more competitive pricing. Eventually this idea generated the need for a feed mill, which has greatly increased the success of the business. Producing custom feeds reduces the costs to almost 80% less than it costs to purchase a name brand feed. The custom-made feed has been Latheethen’s best seller because of quality and price.

The past performance table and chart show the increase in sales over the past three years. By adding a point of sale inventory and accounting system, we will be able to better track our best sellers and highest margin items, to increase net revenue. while our cost projections are accurate, the current owners have not tracked sales categories in as much detail as we will.

The previous year shows a large increase in the value of assets. This represents both the value of the acreage on which the business stands (contributed to the business by the current owners), and the recent purchase of the point of sale system which will be used to better track orders.

Latheethen Feeds, Inc. currently offers our customers products and supplies (Feed, Wormer, Treats, Beading, etc.) for the following animals:

• Birds (Caged and Wild)
• Cats and Dogs (Household Pets)
• Deer and Elk
• Fish (Pond)
• Custom Made Feeds
• Delivery (Selective)

Latheethen Feeds will continue to offer all of the above great products, while evaluating the desire and need by our customers for the following items.

• A Complete Line of Feeds for All Animals
• Books (Related to Animals)
• Deer Blinds
• Exotic Animal Feed
• Home and Garden Accessories
• Landscape Supplies
• Live Animals
• Organic Gardening
• Plants, Flowers and Trees
• Ponds and Water Gardens
• Tools and Gloves

Latheethen Feeds, Inc. will continue to offer the existing services, but we will also be expanding our services to include the following as customers demonstrate an interest in supporting the addition of such services.

• Delivery (Full Time)
• Equine Massage
• Equine Boarding and Stable 

Market Analysis Summary how to do a market analysis for your business plan.">

Latheethen Feeds is the only custom feed manufacturer in the Midland, Michigan area and surrounding 50 mile radius. In the past, our market has been individual end users. Recent market analysis suggests that our custom feeds could be marketed to other direct feed stores outside of this 50 mile radius.

In reviewing our existing customer base, and recognize the broad range of local organizations such as 4-H and Future Farmers of America (FFA) and area farms and ranches, we have seen the possibilities for potential market growth. Latheethen’s has never had a direct sales force, advertised, or approached the specialized market they dominate with any zest for growth.

More than sixteen years in this business with success in the creation of formulas of high quality, cost-contained custom feed, mixed with the energy of youth and enthusiasm to grow this family business is greatly reinforced by the simple market analysis outlined below.

4.1 Market Segmentation

Latheethen Feeds, Inc. will focus on the following markets:

• 4-H Enrollments: Simply put, this segment of our market is our future. We are working with 4-H to further interest in animals, their nutritional needs, and means of cost containment. Through offering quality custom feeds we will provide success for today and many tomorrows as these youth become adult consumers (while annually, new youth will be targeted). This market will allow for sales of all our feed products as 4-H offers exposure to a variety of animals.
• Cattle Farms: The number of cattle farms within a 100 mile radius of Latheethen Feeds is quite phenomenal. There are many different purposes for these farms as well. Some raise cattle for auction and slaughter while some raise cattle for milk processing. All together, this is a market that is small, but would be very lucrative just by having a few of these commercial accounts purchase their feed from us on a weekly basis. The cattle market is very tough, but with our low prices and quality service, we should be able to obtain at least 10% of the overall market.
• Horse owners: We will provide custom feed while building customer relationships for long term growth and expansion into our goals of massage, boarding and other related services. Horse owners range from individual owners to ranches and even direct marketing to area race tracks will be undertaken.
• Hunters: These customers, of all ages and genders, have contributed a great deal of the Latheethen’s cash flow over the years. Expanding on simple hunter spontaneous purchases (jerky, nuts, dried fruit) will increase net revenue without an increase in labor, space or marketing costs.  During the hunting season, “regulars” stop for beets, carrots, corn and apples on their way to their blind. Adding these impulse-purchase items will add to our bottom line.
• Livestock Farmers: This market is virtually up for grabs. Tax-exempt farmers look for the best in quality and price, both of which Latheethen’s offers to our customers. Farmers also look for availability of large quantities. Again, at Latheethen’s, we can handle any size order from less than a pound through orders containing thousands of pounds. Latheethen’s custom feed mill will again prove to be a big asset when dealing with the farmers.

4.2 Target Market Segment Strategy

Strategically targeting all the 4-H enrollments close to our business helps serve the needs and requirements of our local customers, and ties in logically with our marketing plan (see below) and our style of feed store. The youth of the 4-H are our future. These customers have regimented schedules, and find value in exceptional service, low prices and high quality feed. This first tier of our market segment is also the primary focus of our marketing plan, which has a deep commitment to focusing on the support of the 4-H kids and their community. 

Our THIRD-TIER group, Horse Owners, will find that Latheethen’s special blend of oats and grains, all mixed in with our high quality minerals, results in premium feed at an affordable cost. All of these things are essential factors in a customer’s feed-buying decision. Our specialty horse feeds are made for both the average horse and for the equine racer, both of which are numerous in our area. We need to market the right avenues to gain industry share in this rapidly expanding market.

Our FOURTH-TIER, Hunters, is simply the largest in number of individual purchasers. Hunters are mostly seasonal customers, from the months of September through December we will see our numbers skyrocket when compared to the other eight months of the year. For projection purposes, we figured on having a low 30% of the total available market (69,232). This total potential market includes hunters from six of our surrounding counties (within a 50 mile radius). The actual number of hunters that stop by on their way to their cabins or blinds is substantially higher than forecasted.

Our FIFTH-TIER, Other Livestock Farms, represents a market that has an abundant number of feed users. Our custom feed mill allows us to manufacture any type of animal feed we desire, which help us acquire the available customers in this tier. From sheep and goat feed to rabbit and turkey feed, we make it all. Again, when we make our high quality feed, we make it with the highest quality products and sell it at wholesale prices. This market is basically up for grabs, as there are currently no competitors within a 125 mile radius that can supply these customers with such a high quality feed at the lowest costs possible.

We acquired our data for our market analysis from the Department of Natural Resources, the 4-H Council, and from USDA National Agricultural Statistics Service.

All of our projections are based on actual, real-life numbers (number of people/farms/etc.). We forecasted conservatively to show the actual amount of business we can easily obtain through a few advertisements and direct marketing.

4.3 Service Business Analysis

Currently, Latheethen Feeds, Inc. is involved in the manufacture and retail sale of custom feed and related products. Latheethen Feeds straddles two industries – manufacturers of feed, and retailers of feed and farm supplies. Latheethen’s 16 years of success in the custom feed industry is the strong foundation for the success and continued growth.

There are over 7,000 farm product raw materials businesses in the United States, according to the 2002 U.S. Census Economic report. According to the same source, farm supplies and raw materials wholesalers currently sell over $62,000,000 of goods per year. Of these, only 843 of these were selling poultry and livestock feeds mixed on location. With total sales of $8,141,368, businesses like ours sold an average of $9,658 in goods each, per year. This reflects the fact that most of the custom-feed mixers in the United States are very small operations; many of them are farmers who mix their own feed for their own livestock, and sell the extra to neighbors. Latheethen Feeds started out this way, but expanded its product line with snacks for people, and wild and exotic animal feed. By becoming a full-service custom-feed store, and developing a reputation for great service and high quality feed, we have far surpassed the industry average for revenue.

Our products are purchased from wholesale suppliers and re-sold to retail consumers. Our custom feed is a huge competitor with other retail products. The raw goods and time to manufacture cost at least 80% less than similar feeds. With more focus on the overall quality of our feeds, the cost savings to our customers will become more of a word of mouth advertising from end user to end user. Direct referrals are always the best source of committed customer and sustained reliable growth.

There really is no competitor within a 50 mile radius of Latheethen Feeds for custom feed for the wide variety of animals we provide for. Our tasks are to encourage our customers to make referrals, to implement direct marketing to groups such as the 4H and FFA, and to go out to the various ranches and livestock farms and introduce our company and our line of custom feeds.

At this point, we are a great-kept secret, when comparing our customer base to the existing market research potential.

4.3.1 Competition and Buying Patterns

Within the feed and farm supply industry, businesses compete on price, quality, customer service, and delivery. Customer service can include things like ability to produce a range of quantities, and custom-feed options. Customers must also trust the supplier for regular, reliable service and consistent quality, since sudden changes in feed can really disrupt their animals’ digestion and health.

Our existing customers have pretty routine buying patterns. The same customers come at the same time of the week or every other week. Their deliveries are scheduled for the same time, with the same volumes each time. When asking our customers why they use our products, they always have the same answer: “your custom feed is so good for my animal and it is priced just right.”

Most of our customers have been doing business with us for several years. Solid customer relationships, a friendly atmosphere and being available to provide quality products at a good price all add to a successful bottom line.

We strongly believe that by offering delivery services, we will gain a substantial number of new customers, both through the advantages of the new service, and with the new advertising (signs on our truck). We will gain the recognition of new customers through our focused marketing plan.

4.4 Sales Strategy

Latheethen Feeds, Inc. will be entering into direct sales for the first time. Starting in October and November, we will approach members of our target markets within 10 square miles both via phone and with direct visits. Where possible, we will ask existing customers to provide us with an introduction or to mention us to their neighbors and friends before we approach them. This will both lend credibility and pre-qualify potential customers as genuinely in need of our services, based on others’ knowledge of them.

We will tell them about our current products and services, and then ask them clearly what we need to do to earn their business. We will listen to their desires and individual goals. We will then mirror back to them what they have said, to be sure we understand their needs. Finally, we will create an individualized sales proposal with their specific needs (products, volumes, frequency, price, other services) included.

We will present the proposal as a written agreement ready for signature by both parties to begin doing business.

Follow up calls will go to each customer within 24 hours of each delivery to ensure satisfaction. If for any reason there is an issue, it will be handled immediately by one of the owners directly with the customer.

Latheethen’s has previously been successful do to repeat customers. As the business switches hands we will also focus on keeping the existing customers happy and successfully introducing our new products and services. We will always focus on our repeat customers. The loyalty and respect we get from those customers will all play a big role in growing the business and taking it to the next level.

4.4.1 Sales Forecast

The sales forecast for Latheethen Feeds, Inc. includes all varieties of feed, as well as non-feed supplies and future forecasts for boarding stable revenue.

Adding the boarding stable will utilize vacant land and make it work for the company. The addition of the boarding stable will add to our company’s feed sales, and to the specialized services we offer. Boarding Stable costs include laundering of horse blankets, feed used by horses during their stay, and wear and tear on grooming instruments. 

The annual growth rates fluctuate and are defined as:

• 2005 – 3.37%
• 2006 – 8.83%
• 2007 – 34.63%
• 2008 – 16.68%
• 2009 – 14.81%  

The reasoning behind the initial dramatic increase in sales is due to accurate reporting and tracking, and growth of sales (generated through direct sales and advertising). For 2007, 2008 and 2009 we are forecasting significantly increases in our sales as we open the boarding stable. We anticipate that it will take three years to book out all of our stalls.

In 2009, we are forecasting a modest increase of 12.84%, based on the growth of feed sales and stable services alone. We are also planning on bringing back the rodeos and livestock shows that the previous owners have held in past years. This year could prove to be the year to bring back some of the good old days to the new Latheethen Feeds location.

Strategy and Implementation Summary

Emphasize customer service We will differentiate ourselves with CUSTOMER SERVICE! We will establish our business as a clear and viable alternative for our target market, from the scores of competitors known for “do-it yourself,” “no we don’t offer that product,” and “no delivery available.”

Customer service is paramount in our business and our business plan. The management team will accomplish this goal by training employees and by providing encouragement.

The new management team of Latheethen Feeds, Inc. believes that an employee who is happy at work will enjoy working. It is always easier to please customers with staff that cares, a facility that is clean and equipment that is kept in proper working order.

Latheethen Feeds, Inc. will also work toward establishing community involvement programs that will demonstrate how the business can contribute to a better quality of community life. Community project groups such as the 4-H Council, the FFA, Schools, churches, and other groups will be welcomed for tours of the facilities and will be shown how the facility can be used to help raise funds for their needs.

Build a relationship-oriented business Build long-term relationships with customers, not single-visit deals. Become their “feed dealer of choice.” Teach them the value of the relationship.

Focus on target markets We need to focus our offerings on specific population groups as the key market segment we should own. We definitely want to be able to sell to smart, quality conscious customers.

5.1 Competitive Edge

Latheethen Feeds, Inc. has one of the most sought-after competitive edges in the industry. We have our own individual feed mill that can produce any animal feed requested. All we need is a few ingredients and some time to make our specialty custom feeds.

Our custom mill was built and wired with a 3-phase electrical system (industrial strength) and the best equipment on the market today. Other feed stores dream of having access to their own mill; this is where you make most of your money. Instead of having to be the middle man and purchase a large inventory of generic feeds, we custom-blend and produce our own feed to keep the costs down. When we can produce and market feed that costs us nearly 80% less than it costs to purchase a generic feed, we can keep our shelf prices lower than our competitors.

Let’s face it, lower prices +  higher quality feed = money in the bank.

From the very first day Latheethen’s was open for business in 1989, the owners never advertised. They let the word get around (word-of-mouth advertising). This has obviously worked in their favor, as they are operating a profitable business, as is reflected in net profit increases annually.

In the future we, the new owners of Latheethen’s, will market our products to new customers in various strategic ways. This will aid in bringing in more customers…and will also aid in spreading the word that we are expanding our business. Most of the existing customers come from within a 30 mile radius of the store. Through delivery, we can offer our products and services to anyone willing to pay for it.

Our next competitive edge is that we will be running our delivery truck on a daily basis (once we implement delivery and obtain the necessary business). Most of our other competitors do not deliver or only deliver within a short distance from their location. Again, we will serve our customers with a higher quality feed, high level of professional service, and be willing to take it to their door.

Our strongest competitive edge is that we are family owned and operated and that our knowledge of the feed industry runs deep. With the resources available, the energy we can contribute at our young age, the raw talent for business and deep understanding of customer service, the potential to grow this already exciting business is tremendous.

5.2 Marketing Strategy

Latheethen Feeds, Inc. will implement the following Marketing Strategies upon the business transfer in the following order:

• Direct Marketing: we will personally market (sell face to face) our products to various feed stores, stables, boarding facilities, farms, clubs and race tracks.
• Customer Referral: we will provide customer incentives for direct referrals, in the form of price discounts.
• Website Marketing: we will implement our web plan and review the outcome to determine the efficiency it has on our customer base.
• Event Marketing: we will visit area  livestock events (within 150 miles) to hand out flyers, business cards, and product catalogs, and to meet potential customers face to face.

Through marketing our products in these ways, we project that Latheethen’s will almost double its business within the first 2 years of new ownership.

5.3 Milestones

The following detailed milestone table shown identifies the primary tracking points for our initial company takeover, for our growth and our development process. We have included budgets for each subject and the name of which company came in with the lowest bid price.

Web Plan Summary

Latheethen Feeds, Inc.’s website will enable us to offer customers current information on special sales, promos, new product releases, events, and public service announcements. We also plan on utilizing the Web to sell and market our products and services. An e-store will also be implemented into our web design, allowing customers to place orders for the feed they need right on our website. We will be able to accept and process check and credit card orders immediately online. Our customers will still have the options of paying by cash, check or money order as well.

6.1 Website Marketing Strategy

Our website will be promoted through the use of sponsor listings and affiliate memberships [confidential and proprietary information removed]. Our site will be registered with all of the major search engines. We will also share links with our distributors and manufacturers.

6.2 Development Requirements

Latheethen Feeds, Inc.’s website will be initially developed with few internal technical resources. IPowerWeb will host the site and provide the technical back end. MX-Productions will produce the graphics, logos, artwork, and flash media as they will be developing our website from scratch. Our site will be maintained by one of the owners.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Latheethen Feeds, Inc. is presently made up of three employees. The two current owners and one mill operator put in approximately 75 hours a week. As the new business ownership takes effect and various marketing plans are implemented, the product volume will increase. There is sufficient room in the production mill to expand and produce more feed daily. It is planned that the two new owners will oversee the production and day to day business practices.

We will also be contracting a new outside CPA to handle the corporate book keeping and business accounts (listed in the Profit and Loss table). We value and understand how important proper accounting and reporting of all sales activities are to the successful growth of a company. It is through development of this accuracy that true business growth will be verified and available for the continued security of this well-established family business.

7.1 Personnel Plan

Latheethen Feeds, Inc. is currently run and operated by one person in the mill and one person in the store. In time, as we implement our marketing plan, we will need to hire in an additional person to assist in the mill, and possibly another person to assist Kay in the store. We also could possibly need to hire a delivery person in the year 2005. When the business expands with new customers and larger feed orders, Dennis will need to be on site to assist Kay with inspecting the orders prior to delivery to ensure quality and accuracy of all orders. As growth evolves other family members may be of age to assist in the processes or employees may need to be placed.

As we expand we will hire independent contractors. We believe this way would best suite a company our size. Instead of spending the amount of money required by law to actually hire an employee, we feel we would all benefit more from setting up our personnel in this aspect.

Financial Plan investor-ready personnel plan .">

The financial plan is to borrow $15,000 now as a short-term loan from Citizens Bank, at an interest rate of 7%, to buy a delivery truck suitable to our needs. We will repay this loan within two years from the cash flow of the business. This truck will allow us to expand our services to include delivery, giving us a further edge over the local competition and enabling us to further expand into our target market, while increasing recognition of our name and services.

The second phase of the plan is to borrow $135,000 in long-term loans from the bank in early 2006, to fund the renovation of the existing property’s barn and outbuilding into a structurally-sound, attractive, and livable horse boarding stable, and to install fencing and landscaping suitable to that purpose. This renovation will be completed within 7 months, although final landscaping and fencing is not expected to be finished until early 2007. We will repay this loan over 10 years. We will secure this loan with our equity in the value of the existing property. The boarding stable will open up a new revenue stream for the business, and attract new steady customers.

With aggressive target marketing and the sales strategies outlined above, we will increase sales over 3% in the first year. We expect a bigger increase in year two, with the extensive renovation generating some free publicity and with existing customers making referrals, but the largest expansion is planned for 2008, when we can first realize a full year’s revenue from the boarding stable.

From the very start, the new owners of Latheethen’s will start building the business and taking it to the highest level. The new owners have bright futures ahead of themselves, as does Latheethen Feeds, Inc. The once small, unknown feed store will be transformed into the area’s premier livestock feed store and equine boarding facility. The new Latheethen Feeds will be capable of hosting large scale rodeos and other livestock shows by the end of 2009.

8.1 Important Assumptions

This business plan was developed for Latheethen Feeds, Inc. assuming the following:

• Steady growth from good management, barring any unforseen local or national disasters such as the economic slowdown seen by most of the country following the September 11th, 2001 tragedies.
• An adequate loan amount to allow for initial implementation of plans.
• Competition and buying patterns remain similar to those used for forecasting.
• Existing customer base maintained.
• Market research is on target and current (received from different state organizations).
• New customers will be gained through direct sales and advertising.
• Long-term interest rate will be no more than 7%.
• Income tax rate is 30%.
• Sales tax rate is 6%.

8.2 Break-even Analysis

Break-even is based on fixed costs of approximately $5,900 including loan repayment, insurance, maintenance and labor. Additionally, controllables such as service labor, payroll taxes, property taxes, advertising and legal/professional fees are included.

The following chart shows that we need to produce approximately $8,500 from sales per month to break-even (according to the assumptions). That is less than what the previous owners have accomplished in previous years. We strongly believe we will succeed and provide handsome returns for our company and its owners.

Margins are harder to assume. Our FY 2005 gross margin is forecasted at 69.98%. In the following years our gross margin will continue to grow beyond our starting point because of the continued growth in total product sales and the release of our new equine boarding stable. The products manufactured in the mill cost about $3.50 for 50 pounds of feed on average. The lowest sale (market) price on those products is $5.50 with the highest coming in at $10.75. The majority of our gross profit on feed products is made directly as a result of having the luxury of our own custom mill.

Not only will we serve a much higher number of customers monthly than required by this break-even chart, we believe that we are going to possibly double the amount projected in our cash flow charts in this business plan, because we are going to be the only facility of its kind within a 150 mile radius. As advertising and direct sales follow suit from outside areas, our delivery service will prove to be valuable to our company and our customers.

8.3 Projected Profit and Loss

Outlined below and in the following table and chart, are some of the intrinsic facets of the projected profit and loss for Latheethen Feeds, Inc.

Cost of sales reflects our cost to manufacture the feed and purchase all other non-manufactured products. Gross margin will continue to rise at a steady pace throughout the years forecasted.

Payroll expenses currently includes income for the two owners. As forecasted, additional employees will be brought aboard as required to keep up with the growing pace of Latheethen Feeds, Inc. Further details are available in our Personnel table (above).

Advertising and marketing expenses (news ads, magazine ads, etc.) are projected to increase as net profits increase and positive results are accomplished as a direct result of the same marketing and advertising. All direct sales and marketing is performed by Dennis. Commissions are not paid to him as a result of a gained customer as he is one of the two major owners of the corporation.

Depreciation forecasted includes normal wear and mechanical tune-ups on trucks, tractors and all equipment in the mill.

Fuel costs are projected to grow as the amount of sales made that require delivery increase. This projected expense includes fuel for the trucks, tractors, etc.

Utilities are projected to increase year to year. The current market prices for utilities will change as the years past. We have prepared for an annual $100 increase.

Insurance: Latheethen’s was quoted an insurance premium of $1,200/monthly, which includes liability, property, theft, fire, and personal insurance. The equipment (Mill machines, vehicles, and tractors) is also included in the monthly premium amount.

Payroll taxes include social security, unemployment and workers compensation, etc. Feed dealers permit and state sales tax license is projected to be paid in one annual installment in the month of January. Latheethen’s anticipates paying sales taxes monthly, and income tax quarterly, as required by law.

All website expenses are listed below, from initial development, to hosting, to account management for our e-commerce transactions.

Boarding Stable: The expensed portion of the barn renovations in year two is shown as an operating expense. The remainder ($125,000) is shown as purchase of new long-term assets in the Cash Flow table, representing the increased value of the property after renovation. 

8.4 Projected Cash Flow

The cash flow projection for Latheethen Feeds, Inc. shows that provisions for ongoing expenses are adequate to meet the needs of the company, as the business generates sufficient cash flow to support operations and future expansions.

Cash flow projections are critical to our success. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month and the other representing the monthly balance. The annual cash flow figures are included here and in our Cash Flow table. Detailed monthly numbers are included in the Appendix.

Cash Flow shows the purchase of long-term assets as follows:

• $15,000 for a delivery truck
• $125,000 for renovations of the barn to a horse boarding stable, which will improve the value of the property owned by the business

The table also shows the new loans required, and the projected repayment schedules.

8.5 Projected Balance Sheet

The Balance Sheet shows healthy growth of net worth, and strong financial position. The monthly estimates are included in the Appendix. The balance sheet for Latheethen Feeds, Inc. is quite solid. We do not project any trouble meeting our debt obligations. Our management is strong enough and more than capable of keeping the business on track for total repayment of any obligations (loans). 

Our major capital asset (the property and affixed buildings) is valued at about $170,000. Our current assets include all the mill equipment ($71,463) and the tractor ($4,000). These items will be purchased upon funding of the requested loan, for the amount of $100,000.

We (the new owners) will also be paying off some old personal debt that will allow us to lower our monthly personal expenses. This will enable us to work hard at growing the business and not have to worry about taking money out of the company for personal reasons. The payroll amounts forecasted will be more than sufficient to cover our personal income needs.

We will have a solid starting balance in the company account. This will allow us to start the business takeover with a security nest and will allow us to grow our cash balance at a more steady pace.

Our projected balance sheet is presented in the table below.

8.6 Business Ratios

Latheethen Feeds, Inc.’s projected business ratios are provided in the table below.  The final column, Industry Profile, shows significant ratios for the Feed Store Industry, as determined by the Standard Industry Classification (SIC) Index code 5999-0803.

8.7 Long-term Plan

Latheethen Feeds, Inc. is expected to grow at a steady pace. In conversations with other feed owners, this topic is already a common theme. Many feed stores are beginning to experience record breaking growth rates. This is an exciting time to purchase an already established and successful store in this market. As we expand our customer base, offer more products and bring the dreamed of equine boarding stable to life, we will be positioning Latheethen Feeds, Inc. amongst the elite dealers in the state of Michigan.

We will continuously review our business plan as we implement changes. By doing so we will ensure accuracy and stability. Our goal is to take over this great business, protect it, nurture it, and provide for it. Doing these things will enable us to grow and expand the business in a professional atmosphere.

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Key Concern in Animal Feed Mill Business Plans: Cost Efficiency

The most important concern in running an animal feed mill is cost. Building an animal feed plant involves key decisions about equipment selection and investment that directly affect the overall cost of animal feed mill. Data show that investment in animal feed processing equipment typically accounts for 30 to 50% of the total cost of plant construction. Therefore, careful selection of quality feed processing equipment not only reduces the initial investment risk, but also generates higher long-term returns.

On the one hand, efficient animal feed manufacturing equipment significantly improves productivity and product quality. For example, utilizing advanced automation feed processing technology can reduce energy consumption by 10 to 20% , thereby increasing animal feed production line efficiency. According to feed processing industry research, investments in high-quality animal feed production equipment typically result in a payback period of 1-3 years , ensuring a steady cash flow and continued profitability for the business.

On the other hand, consideration of animal feed processing machine durability and reliability is crucial. Choosing a reputable animal feed machine supplier with superior after-sales service minimizes equipment maintenance and downtime, ensuring continued production stability. This long-term optimization of operational efficiency not only reduces costs, but also increases customer satisfaction and brand reputation.

As a feed processing equipment supplier, we understand how to assist our customers in making informed decisions regarding feed production machinery selection and investment. Not only are our animal feed production machines technologically advanced and highly efficient, but we are also committed to providing comprehensive feed processing technical support and animal feed customization solutions to meet specific customer needs and budgetary constraints. Contact us now for personalized equipment selection advice and a free quote. Let's work together to find the best solution for your animal feed mill business!

Key Components of a Successful Business Plan for Your Animal Feed Mill

How to develop a business plan for your feed mill? Typically, developing a successful animal feed production business plan requires a combination of market, product, operational, sales, financial and risk management considerations. Here are the essentials of a comprehensive animal feed business plan that will hopefully help you realize a profitable animal feed processing plant.

•   Conducting a Detailed Feed Market Study is Key

Define the target market and analyze the market demand and potential customer base for poultry, swine, cattle and other feeds. After that, identify the main competitors and find the differentiating advantages of your own feed mill through competitive analysis.

•   Quality of Products and Services is Crucial

Design scientific animal feed formulas to ensure the nutrition and quality of the product. To produce high-quality feed, the animal feed factory should select high-quality raw materials and establish a strict animal feed production process monitoring system to ensure that the finished feed meets industry standards and customer needs.

•   Operation Management to Ensure Smooth Operation of Animal Feed Plant

The feed processing mill should make a detailed feed production plan, optimize the animal feed production process and improve efficiency. Meanwhile, the feed processing plant should pay attention to raw material supply chain management to ensure efficient operation of raw material procurement, inventory and logistics.

•   Sales and Marketing Strategy is Another Important Part of the Business Plan

Select appropriate sales channels and maintain good channel relationships. Provide flexible promotional strategies for different customers.

•   Financial Management is the Cornerstone of Animal Feed Business Plan

Estimate the start-up capital requirements of the feed mill and develop a reasonable financing plan. Ensure financial health through feed production revenue forecasting and cost control. Also establish a strict budget control system to reduce unnecessary expenses and increase animal feed processing plant profits.

Global Animal Feed Market Insights and Data Analysis

ABC Machinery: Your Premier Partner for an Animal Feed Business Plan Blueprint

ABC Machinery is an animal feed machine manufacturer dedicated to providing animal feed mills with efficient and reliable animal feed machine solutions. Whether you are a small feed mill plant or a large commercial feed processing plant, we can customize the right animal feed processing line to ensure it meets your production needs and budget.

We promise that all of our animal feed processing equipment is manufactured with high quality materials and cutting-edge technology to ensure stable operation in various animal feed production environments. We also provide comprehensive after-sales service, from installation and commissioning to operation training, to ensure that the animal feed manufacturing machines are always in the best condition.

When you choose ABC Machinery, you will get professional technical support and high-quality feed production equipment, which will help you to improve the production efficiency of your animal feed mill plant. For more information or customized animal feed processing solutions, please contact us directly below! We look forward to working with you to achieve excellent feed mill business performance!

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How to Start a Profitable Animal Feed Manufacturing Business

• August 30, 2024
• by Next What Business Research Team

The success of commercial livestock farming largely depends on the continuous supply of good quality nutritious feeds. Around the world, the major portion of livestock caters to cattle and poultry farming. So, making animal feed is a profitable business across the globe, especially in small towns or rural areas. This article serves as a comprehensive guide to help you understand the key steps involved in setting up an animal feed manufacturing business.

The animal feed manufacturing industry plays a vital role in supporting the agriculture and livestock sectors by providing nutritious and balanced feed for various animals. If you have a passion for animal nutrition and want to contribute to the growth of the agriculture industry, starting an animal feed manufacturing business can be a rewarding venture.

Table of Contents

11 Steps to Start Animal Feed Manufacturing Business

1. conduct market research.

Before starting any business, it is essential to conduct thorough market research . Analyze the demand for animal feed in your target market, identify potential customers such as livestock farmers, pet owners, and animal breeders, and understand their specific requirements. Study the competition, market trends, pricing dynamics, and regulatory frameworks in the animal feed industry to identify unique selling points and market positioning strategies for your business.

2. Get Trained

New entrepreneurs generally look for training sessions to get technical knowledge. In India, different Govt authorities provide training on manufacturing technology. Find the list of training centers on feed formulation and quality control.

• Central Avian Research Institute, Izatnagar – 243 122 (Uttar Pradesh)
• Haryana Agricultural University, College of Animal Sciences, Hissar – 125 004
• Regional Feed Analytical Laboratory, Govt. of India, CPBF Campus, Industrial Area, Chandigarh 160 002
• Govt. of Maharashtra Feed Analytical Laboratory, C/o. Wool Research Centre, Sheed Breeding Farms, Gokhale Nagar, Pune 411 016.
• Regional Feed Analytical Laboratory, Govt. of India, C/o. Central Poultry Breeding Farms, Aarey Milk Colony, Mumbai 400 065.
• B V Rao Institute of Poultry Management & Technology, Urlikanchan, Pune, Maharashtra
• Central Poultry Training Institute, Govt. of India, Hessarghatta, Bangalore 560 088
• TAPCO Feed Analytical Labs, No.2, Chamiers Road, Nandanam, Chennai 500 035
• ICAR Research Complex for North East Region, Bishnupur, Shillong 793 004
• Orissa University of Agriculture and Technology, Bhubaneshwar 751 003

3. Develop a Business Plan

Develop a detailed business plan that outlines your company’s vision, goals, target market, marketing strategies, production process, and financial projections. This plan will serve as a roadmap for your business and help secure funding from investors or financial institutions.

4. Legal and Regulatory Compliance

Ensure compliance with all legal and regulatory requirements for establishing an animal feed manufacturing unit. This includes obtaining necessary permits, licenses, adhering to safety standards, and meeting quality control and labeling regulations. Consult with local authorities and legal professionals to understand the specific regulations governing the animal feed manufacturing industry in your region.

Some of the basic legal processes you need to follow are mentioned below:

• First of all, register your business .
• Obtain Trade License
• Apply for MSME Udyog Aadhaar online registration
• Obtain ‘NOC’ from the state Pollution Control Board.
• Apply for BIS certification for ISI Mark
• Apply for GST Registration number
• Finally, you can protect your brand name through Trademark registration.

5. Manufacturing Plant & Machinery

You can start this manufacturing business with an area of 600 Sq Ft. In addition, you must provide utilities like electricity and water. Some of the basic required machines are

• Disintegrator with motor, starter, pulley, V belt, stand, etc
• Ribbon blender 1 MT capacity with motor, starter, reduction gear, gearbox
• Gyratory sifter with motor starter extra sieve etc
• Platform weighing machine
• Bag sealing machine
• Testing Equipment
• Miscellaneous equipment

6. Setup Manufacturing Facility

Set up a well-equipped manufacturing facility that meets the production requirements of animal feed. Consider factors such as factory size, layout, machinery, and equipment needed for the manufacturing process. Install equipment for grinding, mixing, pelletizing, and packaging, ensuring adherence to hygiene and safety standards.

7. Source Quality Ingredients

Identify reliable suppliers for sourcing high-quality ingredients required for animal feed production. These include grains, protein sources, vitamins, minerals, and additives. Establish relationships with reputable suppliers who can provide consistent quality ingredients at competitive prices.

8. Formulate Animal Feed Recipes

Develop scientifically formulated feed recipes that meet the nutritional requirements of different animals. Consult with animal nutritionists or experts to create balanced and customized feed formulas. Consider factors such as age, species, breed, and specific dietary needs of the target animals.

9. Manufacturing Process

The manufacturing process for animal feed involves several steps:

• Ingredient Preparation: Clean, sort, and grind the ingredients to the desired particle size for uniform mixing.
• Mixing: Combine the ingredients in the appropriate proportions to create a well-balanced feed mixture. Use specialized mixers or blenders to achieve thorough and consistent blending.
• Pelletizing: Convert the mixed feed into pellets using a pellet mill. This process enhances feed digestibility, reduces waste, and improves handling and storage.
• Quality Control: Implement stringent quality control measures at every stage of the manufacturing process. Conduct regular testing to ensure that the feed meets nutritional standards and safety regulations.

10. Cost of Starting Animal Feed Manufacturing Business

Generally, this type of manufacturing business demands two types of capital investment. One is fixed capital and another is working capital investment. Working capital cost includes raw material, staffing, transportation, and other daily basis expenses. However, keep in mind, this type of product demand adequate distribution after production. And it attracts a moderate capital investment in marketing and transportation.

In India, you can avail of financial assistance from NABARD . However, you must prepare a bankable project report to avail of the subsidy from NABARD.

11. Distribution and Marketing

Develop a distribution network to reach your target customers efficiently. Establish partnerships with distributors, retailers, and farmers’ cooperatives to ensure the widespread availability of your animal feed products. Implement effective marketing strategies, such as online and offline advertising, participation in trade shows, and building strong relationships with veterinarians and agricultural consultants.

Frequently Asked Questions

What are the market opportunities in the animal feed manufacturing industry.

The animal feed manufacturing industry offers significant growth opportunities due to the increasing demand for high-quality and specialized feed products. The rise in livestock production, the growing pet population, and the focus on animal health and nutrition contribute to the market’s growth potential.

How can I ensure the quality and safety of my animal feed products?

Implement a comprehensive quality control system, including regular testing of raw materials and finished products. Adhere to Good Manufacturing Practices (GMP) and follow quality standards set by regulatory authorities. Maintain strict hygiene protocols and ensure proper storage and transportation of the feed products.

What are the challenges in the animal feed manufacturing business?

Some challenges in the animal feed manufacturing business include sourcing quality ingredients consistently, managing production costs, dealing with price fluctuations of raw materials, and staying updated with changing regulations. Building brand recognition and competing with established players in the market can also be a challenge.

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Profitable Feeding: Starting Animal Feed Mill Business

In today's burgeoning agricultural market, the animal feed production industry is demonstrating significant commercial opportunities. Whether for small-scale family farms or large commercial livestock operations , establishing a successful animal feed manufacturing business involves several key elements: developing a business plan, designing the plant layout, selecting equipment, and implementing various animal feed production schemes.

In this column, we provide introductory tips and cost analysis for running an animal feed factory business. We cover everything from customizing feed formulations for different animals to mastering the key technologies required for successful operation of an animal feed factory. Our goal is to equip you with the professional knowledge and business investment insights necessary to succeed in this opportunity-rich industry. Click the consultation button below, and we'll provide you with personalized service within 24 hours!

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Business Analysis: Starting an Animal Feed Pellet Production Mill from Scratch

From poultry and livestock to pets, various types of animal feed pellets serve as crucial means of providing essential nutrition and are widely applied. Before embarking on setting up an animal feed pellet production factory , it's important to understand why investing in animal feed manufacturing is a profitable venture:

Growth and Diversity in Market Demand

Animal feed pellets serve as a cornerstone for modern livestock farming and pet care, showing a trend towards diversification and continuous growth. This growth is driven by several key factors:

1.Population Growth and Food Security:

With the global population projected to reach 9.7 billion by 2050 , there is an increasing demand for efficient animal feeds to ensure agricultural productivity and food security, thereby stabilizing food supply chains.

2.Modernization of Livestock Farming:

Agricultural modernization is driving the scaling and professionalization of livestock farming, necessitating high-quality, nutritionally balanced animal feeds to enhance production efficiency and animal health.

3.Expansion of the Pet Market:

Globally valued at approximately $130 billion , the pet food market is expanding rapidly due to the rising number of pet owners seeking specialized nutrition for their dogs, cats, and other pets.

4.Increasing Nutritional Awareness:

Farmers and pet owners are becoming more aware of animal nutrition, demanding higher quality and more specific ingredients in feed pellets.

Regional Variations in Animal Feed Pellet Demand

Economic Development Level: Developing countries undergoing rapid urbanization and agricultural modernization are experiencing robust growth in demand for feed pellets. In contrast, developed nations prioritize high-value and specialized animal feed products, reflecting a diverse market landscape.

Primary Agricultural Products: Regional preferences for specific types of animal feed correlate closely with predominant agricultural activities. Regions specializing in beef and dairy production demonstrate a substantial demand for cattle feed pellets, while areas with intensive poultry farming exhibit a pronounced need for poultry feed. For instance, poultry-centric regions witness an annual demand growth of up to 20%, as reported by the USDA.

The global animal feed market is on a growth trajectory, with a projected CAGR of 4.5% , anticipated to reach $460 billion by 2027 . This growth is driven by increasing meat consumption and the rising adoption of high-quality animal nutrition products worldwide. Therefore, when considering investing in an animal feed pellet production project, whether for poultry, cattle, or aquaculture, this represents a solid business opportunity. If you wish to learn more about our solutions and pricing in detail, please contact us immediately!

Customized Animal Feed Processing Techniques and Feed Formulation Solutions

ABC Machinery offers feed pellet raw material testing. If you are interested in establishing an animal feed pellet factory and would like to know the pelletizing results, simply send your materials to our factory for testing. In addition, we provide comprehensive services including photography, videography, detailed project reports, and sample mailing.

Based on the above table, we have tailored a variety of processing techniques and feed formulation solutions for different animal species. These solutions are designed to maximize animal health and production efficiency, meeting specific nutritional requirements and growth stage needs. Our customization services ensure that you can select the solution that best suits your farming needs.

Startup Your Animal Feed Mill Business Proposal with Right Partner

ABC Machinery—Leading 20 Years in Animal Feed Pellet Equipment Manufacturing and Complete Factory Construction

Our feed mill project underwent extensive discussions and negotiations covering technical aspects, equipment, costs, installation, and commissioning, culminating in a successful establishment. The ABC Machinery team possesses abundant experience and professional expertise, capable of providing comprehensive support to ensure clients can establish a high-quality, profitable feed production line.

With just one investment, you can acquire a complete set of feed processing equipment along with comprehensive after-sales support and project guidance. Contact us now for a free consultation!

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How to Start a Animal Feed Making Business

The animal feed production business can be initiated with proper planning and know-how about the right mixing formula. Most livestock farmers are always searching for the right food and food supplementary products for their farms. Several different livestock feeds need to serve different requirements legitimately.

Here are the 7 Steps to Start Animal Feed Business

1. market research.

In starting livestock feed production, mark et research is a must. You must quantify the demand and accordingly, you will need to select the product that you will produce. This business requires strategic planning and proper inventory management.

2. Create an Animal Feed Production Business Plan

3. legal requirements and registrations.

in addition, check local, state, and national regulations regarding animal feed production. It is advisable to obtain the necessary licenses and permits to operate legally.

4. Choose the Types of Animal Feed

5. livestock feed manufacturing unit setup.

Livestock feed generally comes in two forms. One is powder form and another is pellet form. According to the product you will need to purchase the machinery. Select machinery according to the proposed capacity of the mill, the types of raw materials available, the types of livestock feed to be produced, and the characteristics of the power supply available.

Storage areas must be waterproof and well-ventilated, and protect against infestation by insects and vermin which can quickly cause substantial losses in weight.

6. Manpower For Livestock Feed Production Company

Proper human resource planning is important. This business includes the activity of production, marketing, and admin. The manufacturing part also includes research & development activities. Keep only skilled and experienced manpower. For sales activity, you can also keep sales agents.

7. Promote Your Livestock Feed Production Business

You must have a business website . It will help you fetch more customers and create a brand personality. List your product with a popular online marketplace like Amazon, eBay, etc.

Frequently Asked Questions

Is the livestock feed business profitable.

The amplifying demand in the Asia Pacific market for feed additives, which is due to the rising meat production and export is proving to be an opportunity for this market.

What are the Common Feeds for Animals?

The feeds to be fed are normally decided on the local supplies. Some of the widely used feeds for livestock are grasses, legumes, fodder plants, fruits, vegetables, root crops, cereals, and feeds of animal origin.

What types of animal feed can I produce?

How can i ensure the quality of my animal feed, where can i source raw materials for animal feed production.

Look for reputable suppliers of grains, protein sources, and additives. Establish relationships with multiple suppliers to ensure a steady supply.

Are there any safety regulations for animal feed production?

How can i expand my product line in the future, what are the key trends in the animal feed industry.

Some of the new trends include the development of sustainable and organic feeds, antibiotic-free options, and customized formulations for specific animal breeds.

• Service Support

 If you're considering starting an animal feed business, it's crucial to have a well-designed business plan to ensure success. Whether you're an experienced entrepreneur or new to the industry, this column explores various business plans for establishing a poultry , livestock , or aquaculture feed pellet plant.

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Making Various Animal Feed Pellets Business  Plan

To begin, it's essential to understand the market demand and competition. Thorough research will help you identify potential customers, their preferences, and the challenges they face. Assess the size of the market and the existing players in the industry.

Business Plan for Livestock Feed Pellet Plant

For a livestock feed pellet plant, determine the types of livestock you want to target, their nutritional requirements, and the production capacity of your plant. And then assessing the market demand for different types of feed and calculate the cost of production.

Business Plan for Poultry Feed Pellet Plant

Poultry farming is a popular and profitable sector in the animal industry. With the right business plan, establishing a poultry feed pellet plant can be a lucrative venture. Identify your target market, the types of feed required, and the production capacity of your plant. Determine the required machinery, raw materials, and other inputs. Calculate the cost of production, including labor, utilities, and overheads.

Business Plan for Aquaculture Feed Pellet Plant

For those looking to enter the aquaculture industry, establishing an aquaculture feed pellet plant may be a wise choice. This rapidly growing industry has an increasing demand for high-quality feed, making it a potentially profitable venture. To get started, identify your target market, the types of feed required, and the production capacity of your plant. Determine the necessary raw materials and machinery, and calculate the cost of production to ensure success.

Get Your Own Customized Animal Feed Business Plan at ABC Machinery

To promote your animal feed business, effective marketing strategies are necessary. Develop a brand identity and create a website to showcase your products and services. Attend industry conferences and events to network marketing.

At ABC Machinery, our top priority is to provide our customers with exceptional machinery and equipment for their animal feed plants. Our product range includes pellet mills, mixers, grinders, and other essential equipment designed to maximize production efficiency and cost-effectiveness. Our team of experienced engineers and technicians are dedicated to providing professional guidance and support to help our customers succeed in the animal feed industry. We pride ourselves on offering a personalized experience, and we invite you to contact us today for a free consultation to learn how we can help you achieve your goals in the animal feed industry. 

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A Beginner’s Guide to Setting Up a Feed Mill

Setting up a feed mill could be an overwhelming process, but with a proper guide and careful planning, the process could be easy. This guide will walk you through the basics of what you’ll need to get started and how to go about acquiring it.

With this guide, you’ll know everything you need to set up your feed mill and start producing feed for your animals.

What is Feed Milling?

Feed milling is the process of grinding and processing feed ingredients into a form that is suitable for animal consumption. The feed milling process can be divided into five main stages: raw material handling, grinding, mixing, pelleting, and cooling. Feed milling is a critical step in the production of animal feed, as it creates a uniform mixture that is easy for animals to digest.

What is a Feed Mill?

Also Read: Fermented Feed and Its Benefits to Chickens

How to Set Up a Feed mill  

If you’re thinking about starting a feed mill, there are a few things you need to know. A feed mill is a factory that produces animal feed, usually from corn, wheat, and soybeans. It’s important to have a good understanding of the process and the equipment required to get started. The steps involved in setting up a commercial feed mill are:

Step 1: Draft a feed milling business plan

Having a business plan is extremely important before even starting your feed mill business. It is very unlikely that you will have all the information before you start, so you will need to make changes as you go along. So, if you are considering building a feed mill, you need to first draft a business plan. This is good practice as it will help you organize your thoughts, set goals and plan how you will achieve them. It will also help you show your investors how you will run your business and can help to secure funding.

Step 2: Choose a location

When choosing a commercial feed mill, don’t just choose any place to avoid wasting your hard-earned money. Some of the things to look out for when looking for a suitable location for your commercial feed mill include:

Step 3: Acquire the land

When you see a suitable location that meets most of the requirements listed above, make sure you find out the land you want to acquire has no ownership issues or any other legal issues. If there are none, you should proceed to pay for the land at the agreed price. If possible, buy as many acreages as you can afford to allow you to easily expand if necessary in the future, especially if you need more stores or warehouses.

Step 4: Get the required approval and licenses to operate a feed mill

Also Read: Nutritional Composition of Major Livestock Feed Ingredients

Step 5: Draw the feed mill architectural plans and have them approved

Even before your feed mill is built, a professional must be involved in drawing up the architectural plans. The plans will include the building of the feed mill, the machinery and equipment that will be installed, and the layout of the rooms and shops. However, it will be your responsibility to ensure that the approved plans are adhered to.

Step 6: Hire a professional for constructing your feed mill

Step 7: purchase the machinery and equipment for the feed mill.

The machinery is the lifeblood of the feed mill and you will need to purchase quality machinery that will be able to withstand the various loads that will be put on them.

Step 8: Install the machinery and equipment in the feed mill

Step 9: hire feed mill workers and other personnel, step 10: purchase the supplies and raw materials required for feed production.

When the building is ready and the machinery installed, you should go ahead with buying all the necessary feed ingredients and store them in the warehouse. You can find a list of some feed ingredients via this link .

Step 11: Start feed production

After setting up everything including the purchase of the raw materials, you will need to start manufacturing the feeds. Begin by producing a small quantity of the feed to test its quality. You should have a livestock farm that would be used for tests of quality and performance. You can then begin scaling up the production of the feed depending on the results of the quality test.

Step 12: Start marketing the products

You can start marketing the feed you produce to the farmers. You may start by arranging for a meeting with the farmers in your locality to introduce them to your feed brand. You can also market the feed through other means such as public relations, print media, and the internet.

Step 13: Improve on the feed products

Feed milling machinery and equipment.

The following are the major machines and equipment in a feed mill.

What are the challenges of the feed milling business?

Also Read: What is Concentrate Feed & How to Mix?

What are the opportunities in the feed milling business?

Many people who are interested in starting a feed mill are concerned about the financial requirements. But don’t let this stop you! The feed milling business is one of the few agricultural industries that have yet to be disrupted by the rise of globalization and conglomerates, so there’s plenty of opportunity for entrepreneurs.

In addition, automation and technology are also important trends in the feed mill business. They allow for higher processing capacity, more efficient processing of more products per hour, and a higher consistency of quality.

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Feed Store Business Plan Template & Guidebook

Are you starting a feed store business? The demand for high-quality animal feed has never been higher. Starting a feed store business can be a fulfilling and profitable venture. However, it's important to have a solid business plan in place to ensure the success of your business. Our Feed Store Business Plan Template & Guidebook is designed to help you easily create a comprehensive business plan for your feed store business. This guidebook provides step-by-step instructions on how to create each section of your business plan, as well as helpful tips and examples to ensure that your plan is thorough and effective. With our template and guidebook, you can confidently put together a solid business plan to help you achieve your feed store business goals.

Get worry-free services and support to launch your business starting at $0 plus state fees.

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How to Write a Feed Store Business Plan in 7 Steps:

1. describe the purpose of your feed store business..

The first step to writing your business plan is to describe the purpose of your feed store business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a feed store business:

A feed store business could have the following purpose mission statement: "Our purpose is to provide high-quality, affordable animal feed and supplies to support the health and well-being of pets and livestock. We are committed to offering a wide range of products and expert advice to help our customers make informed choices for their animals. Through our dedication to exceptional customer service and our commitment to supporting local farmers and ranchers, we aim to be the go-to destination for all of our customers' animal-related needs."

2. Products & Services Offered by Your Feed Store Business.

The next step is to outline your products and services for your feed store business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your feed store business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your feed store business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your feed store business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a feed store business?

To run a feed store, you'll need a variety of equipment and supplies, as well as a few permits. Here's a quick rundown of what you'll need:

• A physical location for your store, either a standalone building or a space within an existing retail location
• Shelving and display cases for your products
• A cash register and other point-of-sale equipment
• A vehicle for making deliveries
• A variety of feed and other products, such as hay and bedding, to sell to customers
• A supply of bags or other containers for customers to take their purchases home in
• Depending on your location and the products you sell, you may need to obtain a business license and other permits, such as a feed dealer's license or a permit to sell certain types of products.

Overall, running a feed store requires a mix of equipment, supplies, and permits to ensure that you can provide the products your customers need.

5. Management & Organization of Your Feed Store Business.

The second part of your feed store business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your feed store business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Feed Store Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a feed store business varies based on many different variables, but below are a few different types of startup costs for a feed store business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your feed store business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your feed store business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your feed store business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Feed Store Business Plans:

Why do you need a business plan for a feed store business.

A business plan is a document that outlines the goals and objectives of a business, as well as the strategies and tactics that will be used to achieve those goals. It is important to have a business plan for your feed store business because it helps to focus the efforts of the company, communicate the business's goals and objectives to potential investors, and provide a roadmap for the business to follow. Additionally, a business plan can be used to help secure funding from investors or lenders, who will want to see that the business has a solid plan in place before they provide funding.

How to write a business plan for your feed store business?)

To build a business plan for your feed store business, start by researching your industry, competitors, and target market. Use this information to define your business's goals and objectives, as well as the strategies and tactics that you will use to achieve those goals. Next, create a financial plan that outlines your projected income, expenses, and profit. This should include a projected income statement, cash flow statement, and balance sheet. Once you have all of this information, you can use it to create a comprehensive business plan that outlines the goals and objectives of your business, as well as the strategies and tactics that you will use to achieve those goals. A well-written feed store business plan contains the following sections: Purpose, Products & Services, Marketing Plan (including Marketing Strategy), Operations/Management Plan (including Operations/Management Strategy), Financial Plan (including Financial Forecasts), and Appendixes.

Can you write a feed store business plan yourself?

Yes, you can write a feed store business plan yourself. Writing a business plan is a valuable exercise that can help you clarify your business idea, identify potential challenges and opportunities, and develop a roadmap for success. While there are many resources and templates available to help you write a business plan, the process of creating one is ultimately up to you.

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Cattle Feed Business Plan – Formulation, Production

Table of contents, cattle feed formulation, setup cattle feed processing plant, importance of nutrients for cattle, cattle feed ingredients and nutrition, compound cattle feed, how compound cattle feed is manufactured, raw materials for cattle feed manufacturing, investment for animal feed production business, factors for starting cattle feed production business plan, fodder for cattle, steps for starting a cattle feed production business, tips for feeding dairy cattle, market potential and marketing of your cattle feed, importance of cattle feed in milk production, recommendations for feeding cattle feed, packing, marking, and labeling cattle feed.

Cattle Feed Business Plan

Hello friends, we are here with a new topic called “ Cattle Feed Business Plan “. A livestock feed production business is a profitable business if it is located in an area where considerable numbers of livestock farms exist. Animal feed referred to a food item that is consumed by domestic animals. Livestock farmers are always looking for formulated food that is somewhat necessary for the proper growth and nourishment of livestock. In this article we also covered the below topics about cattle feed business;

• Animal feed making business
• How to set up a cattle feed processing plant
• Cattle feed business profitable or not
• How profitable is the cattle feed production business

A Step-by-Step Guide to Cattle Feed Business Plan

The animal feed industry deals with food given to animals in cattle, poultry animals, and aquaculture sectors as part of animal husbandry. The feed industry enjoys economies of scale and if you are starting for animal feed production business, you want a thoroughly analyzed plan to earn you an advantage for a good initial market share.

• Cattle Feed Market Report – Industry Coverage
• By Ingredients – Grains, Brans, Others
• By Additives – Vitamins, Antibiotics, Others
• By End-user – Feed, Fodder, others

Cattle feed encompasses various types of forages like grass, legumes, silage which is mainly used as dairy cattle feed along with soy, grain, and other elements. Cattle feed is an edible and rich source of nutrients for growing, milk-producing, and pregnant cattle. Then, the maximum share of cattle feed production is held by the southern parts of India. So, the cattle feed production business is profitable.

Farmers face several challenges when caring for cattle, including providing more feed to them. Then, they have to order bulk supplies and distribute feed evenly among many cattle. The global cattle feed market is intended to supplant the older model and farmers have a chance to keep their cattle healthy. The developing world is pushing up demand in several ways.

To setting up a cattle feed processing plant or starting cattle feed manufacturing business you have to make a complete business plan, make a customized feed mill layout design. The cattle feed market has been segmented based on feed ingredients like corn, soybean meal, wheat, oilseeds, and other ingredients.

The formulation of cattle feed mainly depends on the several of cattle, milk yield, and dairy ration, etc. While formulating the cattle feed, the availability of the basic raw materials must be kept in mind.

“Cattle feed” means any ground, pelleted, mixture feed, balanced for nutrients intended for the cattle feeding;

(i) Calf starter meal from the age of approximately 8 weeks and up to approximately 26 weeks and calf growth meal from the age of about 26 weeks and up to approximately 108 weeks;

(ii) Compounded cattle feed for cattle and buffaloes from the age of approximately above 108 weeks;

(iii) Proprietary feeds developed through the purpose of increasing productivity and reducing the cost of milk production, which include bypass protein feed, and mineral salt lick, etc.

(vi) Straw-based feed, manufactured by using food crops byproducts along with other feed ingredients.

Setting up cattle feed processing units can take benefits of this trend to make money easily. It doesn’t need a huge budget. There are two most important points to be considered when setting up a livestock feed production mill or starting livestock feed manufacturing, one is the feeding ingredients, you best have the unique formula, the second is the advanced feed processing equipment and technology.

Good cattle feed formula – Decide what nutrients a specific animal needs, gain weight, and stay healthy. Come up with a breakdown of livestock feed formulation based on livestock variety and additives like vitamins, amino acids, enzymes, minerals, then decide what to produce, for example, if it is cattle feed, will consider it be beef cattle feed or dairy feed?

Purchase the Cattle Feed Ingredients – Based on the cattle feed formula you have decided to use, and get the ingredients.

• Maize, cassava grits, and corn ingredients are popular for energy
• Get wheat wastes for proteins and some carbohydrates
• Bone meals, fish, oyster shells, palm kernel for oils, salts, and minerals

The machinery you need is determined by the feed you want to produce. Some of the essential cattle feed processing equipment are grinder, mixer, pelleting machine, freezer, weight scale, packaging bags, etc., are important to complete cattle feed production factory.

By using well-balanced nutrients for cattle can maximize profits. An animal’s diet must have the essential nutrients in appropriate amounts and ratios. The nutrients for cattle that are basic to good cattle nutrition, and use well-balanced feeds succeed in supplying these nutrients. Though, to better understand how feeds are used, it is important to understand the digestion process in animals.

Cattle need proper nutrient feed for maintaining good health and better milk yield. Some essential feed ingredients are a good nutrient supplement to cattle for promoting growth. Some of the important cattle feed ingredients include corn, wheat, soya bean, and other grains. Grains are mainly considered as the best cattle feed as it has high nutritional content such as proteins, minerals, vitamins, carbohydrates, and fiber, etc. Normally, wheat is a digestible source of nutrients added to cattle feed ingredients for maintaining a proper digestion process.

Proper intake of these cattle feed ingredients helps in maintaining health and promotes a high yield of milk. Also, these ingredients help in the physical development of the cattle.

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• Corn – Energy Ingredient
• Wheat – Selenium, vitamin content
• Soya bean – protein source
• Rice barn – Source of carbohydrate
• Oat Hulls – Source of fiber

Compound cattle feed is a mixture of several concentrate feed ingredients in suitable proportion. The commonly used feed ingredients in compound cattle feed are grains, brans, protein meals or cakes, agro-industrial by-products, minerals, and vitamins.

In India there are only two types of compound cattle feeds are manufactured for adult animals. National Dairy Development Board (NDDB) promotes the use of different compound feeds like calf starter, calf growth meal, feed for high yielding animals, feed for low yielding animals, buffalo feed, and feed for dry pregnant animals, etc.

Firstly, feed ingredients are taken in a batch mixer from the raw material storage godown. After mixing, all raw materials are ground to a uniform particle size of about 3 mm. The ground material is further mixed. Materials used in feed formulation in smaller quantities like vitamins, minerals, urea, calcite powder, and common salt, etc., are mixed in a ribbon mixer using proper diluents and stored in one of the storage bins.

Ground material and molasses are mixed in a twin-screw type mixer. Usually, molasses are added by 10% in cattle feed, if the cost is very high, some sweetening agent could be used in place of molasses. Molasses feed is mixed with the dry steam before pelleting. The temperature level of steamed feed is in the range of 75-80°C. Though, steamed feed is converted to pellets by passing it through a cylindrical die and then press roller. Generally, an 8 mm die is used for the production of pelleted feed.

The important raw materials for cattle feed are Wheat bran, Groundnut extraction (or cake), Rice bran extraction or cottonseed bran, Maize, Cottonseed, Molasses, Salt, Calcium carbonate, Mineral mixture, and Vitamin mix, etc.

Cattle feed contains grains, brans, cakes, mineral mixtures, and vitamins as a protein source, energy, minerals, and vitamins. Also, additives loaded with vitamins, minerals, acidifiers, antibiotics, amino acids, enzymes, and antioxidants boost the cattle yielding capacity.

The animal feed production business demands two types of capital investment and they are of the following;

• Firstly, Fixed Capital
• Secondly, Working Capital

The above types of Animal Feed Production Business can be explained in the below;

Fixed Capital – It is defined as a one-time investment that consists of fixed money and no need to invest again and again

Working Capital – Working Capital includes the following;

• Firstly, Employees
• Secondly, Daily expenses
• Thirdly, Raw material
• Lastly, Transportation.

1. The Target market

Analyze the potential of your selected production line thoroughly.

2 . A Detailed Market Research

Do market research on the cattle in your local area; and if you are planning to sell your plan to investors, you have to explain the uniqueness of a specific plan as compared to existing players. Select the most attractive segment in the area with your revenue projections by establishing your basic achievable market share.

3. Equipment and Personnel

The cattle feed production business investment will focus on the business equipment. Also, you could 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.

4. Location

A location for the cattle feed production business plan is closest to the customers. Also, you 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 very important to plan for bulk buying in harvest seasons for plant-based materials for the best prices, in your business plan; you want to explain the 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 can cause legal hurdles for your startup business.

• A fodder can feed a vast variety of livestock for milk production. Depending on feed costs of hay and grain, fodder can produce a higher quality feed for less money than traditional systems.
• Good silage is yellow-brown color, with a characteristic acid fruity smell, and then just exudes moisture when squeezed.
• Jowar and maize are the best crops appropriate for ensiling. All non-leguminous fodder crops except turnip and rape.
• Hybrid Napier, Sudan grass, Berseem, Oats cow pia, millets are also suitable crops. They have to be wilted for 3 to 4 to increase dry matter to around 35% before ensiling. The crop is chaffed 2 to 4 cm in length and packed airtight in a trench silo.
• Normally, the forage crop from 0.3 ha in a circular silo 3 meters diameter, and 2.5 meters depth are enough to feed 5 animals by 20 kg/day for 150 days.
• Increasing the pure legume tonnage sugar content adds about 2 to 3 gallons of molasses and water each for 1 ton of green forage. The airtight pit stacked with fodder would be ready in 90 days with a pH of 5.8 and a lactic acid % of about 0.1.
• Excess of butyric acid formation would lead to more proteolysis thereby reducing the digestibility and also intake of silage by cattle. The best quality silage has a pH of 4.2, lactic acid 10.5%, and Butyric acid 0%.

You can start a cattle feed business with a small amount of capital also but you need to follow some basic steps before getting started.

The cattle feed industry is a major ingredient of the animal feed industry. The cattle feed manufactures are using increasingly modern methods to incorporate best practices. The cattle feed industry has got high growth potential, given that India is the world’s leading milk producer and production. The demand outlook will need dairy companies to step up production and get higher animal yields on the back of superior feed and nutrition.

Step 1) Do a Market Research

Firstly, you need to do thorough research on your local market. At first, you must identify the demand of the livestock farmers in your area and then select a particular category of animal feed with which you will continue further. The other important aspect is to look at competitors who are formulating the same type of animal feed. By considering their strengths and faults in the businesses, you can prepare a solid strategy to stake up against them. Then, you can talk to other business owners who are not in competition with you or doing business in another region.

Step 2) Prepare a Comprehensive Business Plan

Then, you should craft an effective business plan to get success in this venture. You want to consider every aspect involved in the business like your business objective and the scale of business operations, start-up expenses, financial and marketing plan, etc. As you have already decided the category of livestock for which you want to provide feed, you want to study the food necessities of the group of animals for which you desire to produce.

Step 3) Feed Formulation

There is a specific formula of cattle feed for each type of animal and you have to identify the right one for the feeds you are going to produce. If it is not properly formed by mixing the raw materials in an exact ratio, you will lose customers as they would not get expected results after using this feed. To find out the right cattle feed formulation, you should gain knowledge of the dietary needs of the animals you want to manufacture.

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• Concentrate should be fed individually based on production requirements.
• Be consistent in your feeding – Both time of day and feed quantity is critical to feeding the cattle. Always feed your cattle every day or within 30 minutes of the target time. Consistency is simple but valuable. By providing consistent access to clean, fresh water at all times is also critical. Water drives feed intake, so making sure animals are drinking is important, especially in hot summer months.
• To keep cattle well-fed and happy during the winter, there are some options. The easiest, but most expensive option is to switch to a feed with increased nutrients.
• Another option is to find methods to feed cattle while limiting waste. Instead, deposit hay in a hay feeder and make sure there are enough feeders for all cattle to feed at once.
• Regularity in feeding must be followed. Concentrate mixture can be fed before milking and half in the morning and the other half in the evening before the two milking timings.
• Over-feeding concentrates can result in off feed and indigestion. The abrupt change in the feed should be avoided.
• Long and thick-stemmed fodders such as Napier can be chopped and fed.
• Highly moist and tender grasses can be wilted or mixed with straw before feeding.
• Silage and other feeds, which can impart flavor to milk, maybe fed after milking. The concentrated mixture in the form of mash can be moistened with water and fed immediately. Pellets can be fed as such.
• All feeds should be stored properly in well-ventilated and dry places. Mouldy or otherwise damaged feed must not be fed. The optimum concentrate roughage ratio on a dry matter basis must be 60:40 for high-yielding animals.

Because of the intensive cattle development program which has already been taken on hand by the State Government, the success of these development projects depends mainly on the availability of well-balanced cattle feed. Cattle feed envisages the future scope for the development of this industry. The demands for milk and meat is increasing in most of the world and therefore the farmers are now more concerned over the health and yield of the cattle which is serving the global cattle feed market development.

There are many ways you can adopt for marketing of cattle feed;

• Supply stores – introduce your cattle feed to supply stores and let them act as a middleman
• Direct sales representatives – search for the sale representatives for feed product
• Establish your distribution outlet
• Sell Online

By establishing cattle feed processing plant and start cattle feed-making business can be huge potential to get profits in the feed business.

• Generally, cattle feed formed by the Milk Unions is a balanced source of essential nutrients required for body maintenance and development in milk production.
• Cattle feed is manufactured by using good quality grains, oil cakes, common salt, minerals, brans, molasses, and vitamins.
• Also, it is cheaper and highly palatable to the animals.

Cattle feed mainly contains protein, energy, minerals, and vitamins required for the growth, maintenance, and animal milk production. Also, it is useful to feed extra cattle feed to pregnant animals for proper development.

Milk production as well as the fat content of milk increases reproductive efficiency. Milking cattle should be fed about 2 kg of compound feed for body maintenance and also 400 g to cows for every liter of milk produced.

(1) Every holder of a registration certificate shall comply with the below requirements;

• Cattle feed can be packed in clean and plain jute or paper bags, in such quantities as may be specified by the Registering Authority. Though, the mouth of each bag should be machine-stitched;
• Mineral mixture shall be packed in moisture-proof sound and also clean bags, free from causal agents of infectious diseases in such quantities as may be specified by the Registering Authority;
• Every bag in which cattle feed is packed bear the registration number, name and business address and manufacturer trade name, net weight in kg at the packing time, and the maximum retail price;
• Every bag in which cattle feed is packed shall indicate the type.

(2) Each bag in which cattle feed is packed shall have a printed leaflet, format of which shall be approved by the Registering Authority, and this indicating batch number, date of manufacture, address of the manufacturer, feed ingredients used in manufacturing cattle feed, vitamins, feed supplements added with their proportions and other particulars as may be stipulated by the Expert Committee.

(3) The leaflet shall contain a declaration about the non-use of certain mineral salts as stipulated by the Expert Committee.

(4) The labels or marks shall not contain any statement, claim, design, or device which is false or misleading in any particulars concerning the cattle feed and also mineral mixture contained in a package or the value of such feed;

(5) No person shall manufacture Proprietary cattle feed without the prior written approval of the Registering Authority.

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Interested to start . Please help

good read…well briefly explained,

Can you help me pet feed formulation pls

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How do I Start an Animal Food Business?

If you are thinking about starting an animal food business, you may have questions about what regulatory requirements would apply to your business. In addition to the Food and Drug Administration's (FDA's) requirements, your food business may have to comply with other federal, state, and local requirements. Some requirements apply to all animal food businesses, and some are specific to the type of animal food you are handling or making (for example, whether you are making medicated feed or have to register with FDA as a food facility).

If you are planning to start an animal food business, there are several steps you need to take before marketing your product in the United States, such as:

• Submitting the appropriate registration, licensing, and notification information to the FDA;
• Complying with all FDA food safety regulations for the type of activities you are conducting and the type of animal food you are marketing;
• Ensuring any ingredients and additives are safe and suitable for their use, and have the appropriate regulatory status or approvals needed to legally market the animal food; Complying with labeling and marketing requirements; and
• Complying with applicable state and local animal food regulatory requirements.

In addition to operating in the United States, some businesses may be interested in importing or exporting animal food products. 

The chart, below, gives you a snapshot of the requirements based on the three most common animal food business scenarios: in-home businesses, on-farm businesses, and commercial businesses. The chart is divided into three sections:

• Requirements that apply to all animal food businesses,
• Requirements that apply to animal food businesses that must register with FDA, and
• Requirements that apply to specific animal food business activities, such as importing or exporting animal food or ingredients.

Each requirement is hyperlinked to its corresponding section on this page, so you can easily find the information you need as you start your business. If you need more information, you can find the FDA’s Center for Veterinary Medicine (CVM) email and phone contact information at the bottom of the page.

Which requirements apply to my animal food business?

Requirements that Apply to All Food Businesses

Adulteration.

All animal food must meet the requirements in the Federal Food, Drug, and Cosmetic Act (FD&C Act), which prohibits the adulteration of animal food. Common reasons an animal food may be considered adulterated include: 

• If it contains a contaminant, such as bacteria, toxins, or physical objects (e.g., glass or metal) which may harm human or animal health; 
• If is not suitable for animal food, for example because it has gone bad (e.g., rotted); 
• If it is something that is not safe for animals to eat, for example because it has been labeled “not for animal food use,” or because it contains an unsafe ingredient; and 
• If it was not handled in a way to keep it safe for animals to eat. 

You can find the full legal definition of adulterated food in the U.S. Code (21 U.S.C. 342 codifies the adulteration provisions in section 402 of the FD&C Act) and information about contaminants in animal food on the FDA website. 

What is the difference between the FD&C Act and the United States Code (U.S.C.)?

When Congress passes and the President signs a law, they publish it as an “Act.”  The Federal Food, Drug, and Cosmetic (FD&C) Act is the foundational law that establishes FDA regulation of certain products and businesses. Congress makes changes to the law by amending it.  For example, the Food Safety Modernization Act (FSMA) amends the FD&C Act by adding in new requirements.  

The Office of the Law Revision Counsel compiles these Acts and amendments to the law, organizing them by subject, into something called the United States Code (U.S.C.). The U.S.C. contains only the current enacted law. As a result, you may see a reference to Section 402 of the FD&C Act, which is the section on food adulteration, or you might see a reference 21 U.S.C. 342, which is the same information as compiled into the U.S.C. FDA has a helpful explanation about the FD&C Act and U.S.C. at: Federal Food, Drug, and Cosmetic Act (FD&C Act) .

Ingredients and Additives

Under the FD&C Act, anything that’s added to or becomes part of an animal food, directly or indirectly, must either be approved as a food additive or it must be considered Generally Recognized as Safe (GRAS) for that use . Approved food additives and ingredients that are GRAS are limited to specific uses. Some ingredients may be safe when used one way, but not safe when used in other ways. For example, xylitol is an artificial sweetener that is an approved food additive for use in human foods, but can be extremely toxic to dogs, and therefore not acceptable for use in dog food .

In addition to federal regulations, the Official Publication of the Association of American Feed Control Officials (AAFCO) contains a list of animal food ingredients and their definitions, a list of approved animal food additives, and a list of ingredients that are considered GRAS for specific uses. Many of the ingredients in the AAFCO Official Publication, however, are not approved food additives and may not meet the criteria needed to be recognized as GRAS for those uses. FDA recognizes the list of ingredients in the Official Publication for their marketing and sale in the U.S. under an exercise of enforcement discretion provided there are no safety concerns with the listed ingredients.

You can find more information about animal food ingredients and additives and how FDA regulates them on the Ingredients and Additives webpage . 

Labeling and Marketing

Labeling for animal foods marketed in the United States must comply with current federal and state regulations. The FD&C Act defines "labeling" as all labels and other written, printed, or graphic matter upon any article or any of its containers or wrappers, or accompanying such articles. Labeling can include promotional websites, promotional brochures, promotional pamphlets, testimonials, product information sheets, books, etc. 

Labels must comply with animal food labeling requirements listed in 21 CFR part 501 , which requires the label to include:

• A statement of identity (the name of the food) and, when needed, what the product is used for;
• An ingredient statement listing ingredients by their common or usual name, in descending order of predominance by weight, meaning that the ingredient that weighs the most is listed first and the ingredient that weighs the least is listed last;
• The name and address of manufacturer, packer, or distributor; 
• A net quantity statement, which provides the amount of food in the container or package. It must be expressed in weight, measure, or numeric count. Generally, if the food is solid, semisolid or viscous, it should be expressed in terms of weight (pounds and ounces). If the food is a liquid, it should be expressed in fluid measure (e.g., fl oz);
• The label must be in English. If the label is in a foreign language, it must include an English translation; and
• Warning and/or caution statements, when applicable. 

Medicated feed has additional federal labeling requirements. When a Type A medicated article is approved by FDA, the company that makes the article is required to create a model “Blue Bird Label” to guide manufacturers of medicated animal feeds when preparing final printed feed labels. Information from that Blue Bird Label must appear on any medicated feeds made with that Type A medicated article. You can find more information about medicated feed labels on our Blue Bird Labels webpage .

Labeling must also comply with the Federal Food, Drug, and Cosmetic Act's misbranding provisions . In general, a product is misbranded if it does not have required information on the labeling or if it is false or misleading.  A label is false or misleading if it contains information that is not true or could confuse consumers, such as implying that an animal food has more of a beneficial ingredient than what is actually included in the animal food. 

For state labeling requirements, the best source of information is   AAFCO . To promote uniform labeling requirements across all U.S. states and territories, AAFCO developed a set of “Model Regulations for Pet Food and Specialty Pet Food,” which can be found in AAFCO’s Official Publication . Since the AAFCO “Model Regulations” are consistent with Federal requirements, they are a useful resource for information on the regulation of pet food. 

You can find more information about animal food regulation (including pet food ), marketing, and labeling on FDA’s website.  

State Regulations

In addition to meeting federal requirements, your animal food business may also have to follow certain state regulatory requirements. The AAFCO webpage has detailed information about your state’s regulatory requirements for animal food. You can find other useful resources for animal food businesses on their Industry webpage .  Additional information about starting a pet food business and state requirements can be found on AAFCO’s The Business of Pet Food site.

Food Facility Registration Requirement & Qualified Facility Attestation

If your company manufactures, processes, packs, or stores an animal food in the United States, you must register as a food facility, unless an exemption applies to your business. The below webpages will help you determine if you must register as a food facility and if so, how to complete a food facility registration and get your unique facility identifier.

• Animal Food Facility Registration and Qualified Facility Attestation Frequently Asked Questions
• Guidance for Industry: Questions and Answers Regarding Food Facility Registration (Seventh Edition)
• Registration of Food Facilities and Other Submissions
• Registration of Food Facilities—electronic Code of Federal Regulations

Some animal food businesses meet the definition of a “ qualified facility ,” typically because they are very small businesses. A qualified facility is generally a business that, because of its very small size, is required to meet only modified requirements under the FDA Food Safety Modernization Act (FSMA) Preventive Controls for Animal Food (PCAF) regulation . These businesses must “attest,” or affirm, to FDA that they are qualified facilities on their food facility registrations. 

CVM’s website has more information about how to determine whether your business is a qualified facility , current inflation adjusted cut offs for qualified facilities , and answers to frequently asked questions .  

Animal Food Receipt and Distribution Record Requirements

If you manufacture, process, pack, transport, distribute, receive, hold, or import animal food in the United States, you must keep records of the receipt and distribution of animal food, unless an exemption applies to your business.

If you are a business that manufactures, processes, packs, or holds the animal food (not for transportation), you must establish and maintain the records for all food you receive and distribute . Generally, these requirements include records that establish: 

• The name and contact information of the business that you received animal food from or distributed animal food to;
• A description of the type of animal food (e.g., type of animal food, brand name and variety)
• Date you received or distributed the animal food;
• A lot code or other identifier (to the extent this information exists);
• The quantity and how the animal food was packaged; 
• The name of the business and contact information of the transporter (including incoming ingredients and distributed animal food); and
• Information to identify the specific source of each ingredient used to make every lot of finished product.

Transporters of animal food also are required to maintain records that establish information regarding the transportation of the food.  

For animal food, receipt and distribution records must be retained for a period of 1 year .  

Requirements that Apply if You’re Required to Register as a Food Facility

Preventive controls for animal food (pcaf).

The FSMA Current Good Manufacturing Practice, Hazard Analysis, and Risk-based Preventive Controls for Food for Animals regulation in 21 CFR part 507 is commonly referred to as the PCAF regulation or part 507. The PCAF regulation has two primary parts, the current good manufacturing practice (CGMP) requirements and the hazard analysis and risk-based preventive controls (PC) requirements. The PCAF regulation also addresses related personnel, training, and recordkeeping requirements (See 21 CFR part 507, subparts A and F ). The PCAF requirements apply to all facilities that must register with the FDA unless they fall under an exemption . There are also exemptions , or modified requirements for warehouses or other businesses that only store packaged animal food that is not exposed to the environment.

• Current Good Manufacturing Practice (CGMP) Requirements   The CGMP requirements provide baseline safety and sanitation standards for the manufacturing, processing, packaging, and storing of animal food (See 21 CFR part 507, subpart B .)
• Hazard Analysis and Risk-Based Preventive Controls (PC) Requirements   The PC requirements provide a framework to help you assess the food safety hazards associated with your animal food and animal food facility. When needed, you must establish risk-based preventive controls for your facility to prevent or minimize the hazards you identify. Preventive controls include management components such as monitoring, corrective actions, and verification, to ensure you are using the correct methods for preventing potential hazards in the animal food you make (See 21 CFR part 507, subpart C ).  In some situations, you may decide in your hazard analysis that you have a hazard requiring a preventive control, but your supplier needs to control the hazard before you receive the ingredient for use in your manufacturing process. In that situation, you would also need to follow the supply-chain requirements (see 21 CFR part 507, subpart E).
• Qualified Facility Attestation and Modified Requirements   Some animal food businesses meet the definition of a “ qualified facility ,” typically because they meet the definition of a very small business. These businesses must “attest,” or affirm, to FDA that they are qualified facilities when completing their food facility registrations . If your business is a qualified facility, you must follow CGMP requirements and the modified requirements for qualified facilities , but you are exempt from the PC requirements (See 21 CFR 507.7 ). CVM’s website has more information about how to determine whether your business is a qualified facility , current inflation adjusted cut offs for qualified facilities , and answers to frequently asked questions . 
• Facilities that do not perform further manufacturing/processing If your facility does not further manufacture or process the human food by-products intended for use as animal food, and your facility meets certain conditions , you only have to follow the limited holding and distribution activities listed in in the CGMPs. These requirements are co-listed in 21 CFR 507.28 of the animal food CGMPs and 21 CFR 117.95 of the human food CGMPs. For more detailed information, see section V of CVM’s draft Guidance for Industry #239: Human Food By-Products for Use as Animal Food .  
• drying/dehydrating, evaporating, pressing, chopping, and similar activities to reduce weight, bulk, or volume; 
• mixing (e.g., combining different vegetable culls and trimmings, combining juice and dairy by-products, stirring), centrifuging, and similar activities to combine ingredients or separate components (e.g., water and solids); and 
• activities that are not performed to prevent or significantly minimize animal food hazards and do not create new animal food hazards.
• Facilities that perform manufacturing/processing activities If your facility makes human and animal food, part 507 allows you the option in 21 CFR 507.1(d) to either follow the human food requirements in part 117 or the animal food requirements in part 507 for the production of your animal food at the same facility.   For example, when implementing CGMPs, your facility may follow either the requirements in part 117, subpart B, or the requirements in part 507, subpart B for the animal food at your facility.  Likewise, if your facility is required to follow the hazard analysis and risk-based preventive controls requirements, you may choose to follow the requirements in part 117, subparts C and G, or part 507, subparts C and E.  Regardless of the option you choose, in your food safety plan and hazard analysis you must consider any hazards that are associated with the animal food (e.g., you would not have to consider allergens for your animal food, but you would need to consider nutrient toxicities and deficiencies).  If you want, you may choose to have two separate food safety plans, one for animal and one for human food, or one food safety plan that covers both types of food.  For more detailed information, see section VI of CVM’s draft Guidance for Industry #239: Human Food By-Products for Use as Animal Food .

Reportable Food Registry (RFR) Requirements

If your animal food business is required to register as a food facility, you are required to file a report with FDA’s Reportable Food Registry (RFR) whenever you have an instance of a “reportable food.” A “reportable food” is a food for which there is a reasonable probability that the use of, or exposure to, an article of food will cause serious adverse health consequences or death to humans or animals. For example, this could be an animal food that is contaminated with something that would cause the animal eating it to get sick, such as disease-causing bacteria, or the food could contain something that would harm the animal, like pieces of plastic that could pose a choking hazard. Reportable food also includes animal food that could cause people to get sick, either from handling the animal food or from consuming milk, meat, eggs, or other animal products from the animal that ate the animal food. If you have a reportable food, you must file a report as soon as possible, but no later than 24 hours after you have identified that the animal food is a “reportable food.” 

The Reportable Food Registry webpage has detailed information about these requirements.

Certain Activities with Additional Requirements

Medicated feed mill licensing and cgmps.

Medicated Feed Mill Licensing and Drug Establishment Registration 

If you are an animal food business that manufactures or processes medicated feeds, you may need an FDA-approved medicated feed mill license and drug establishment registration if you make the following types of feed : 

• medicated feed using Category II, Type A medicated articles ( 21 CFR 558.4(a) ); 
• all free-choice medicated feeds that contain a Category II drug ( 21 CFR 510.455(f) ); 
• free-choice medicated feeds that contain a Category I drug and use a proprietary formula and/or specifications ( 21 CFR 510.455(f) ); 
• all liquid medicated feeds that contain a Category II drug ( 21 CFR 558.5(g)(1) ); and 
• liquid medicated feeds that contain a Category I drug and use a proprietary formula and/or specifications ( 21 CFR 558.5(g)(2) ). 

If you use drugs from Categories I and II in a combination drug product, the Category II requirements apply to the entire combination drug product (21 CFR 558.4(e)). You need a medicated feed mill license and drug establishment registration to make the combination drug product from a Type A medicated article. 

Whether or not you are required to have a feed mill license and drug establishment registration determines what Medicated Feed Mill Current Good Manufacturing Practice requirements in 21 CFR part 225 apply at your facility. 

CVM’s Medicated Feeds webpage has more information and resources on medicated feed mill licensing and drug establishment registration, including the forms and instructions for submitting a medicated feed mill application and a link to drug establishment registration information.

Veterinary Feed Directive Feeds (VFDs)

If you are a distributor of medicated feeds containing veterinary feed directive (VFD) drugs, you must send a one-time notification to FDA (21 CFR 558.6(c)(5)) . A VFD drug is intended for use in animal feeds. VFD drugs can only be used under the professional supervision of a licensed veterinarian. CVM’s website has information about what you must include in the notification and how and where to submit it.

To view the current VFD Distributor Notification List, which lists the names and addresses of businesses that distribute VFD medicated feeds, visit the Medicated Feeds section of the  Animal Drugs @ FDA home page. You can view the list as a PDF or as an Excel spreadsheet. You can sort the Excel spreadsheet by distributor name or state. FDA updates the lists when new notifications are processed.

In addition to the notification, you must also follow the VFD requirements. These requirements cover authorizations from veterinarians to use VFD feed, manufacturers and distributors who manufacture and distribute VFD feed, and clients or animal producers who use VFD feed. The regulation includes general requirements in 21 CFR 558.6(a) that apply to all three roles, as well as more specific requirements for authorizing veterinarians in 21 CFR 558.6(b) and for VFD distributors in 21 CFR 558.6(c). You can find more information about these requirements on CVM’s webpage:

• Veterinary Feed Directive Requirements for Distributors (Who Manufacture VFD Feed)
• Veterinary Feed Directive Requirements for Distributors (Who Do Not Manufacture VFD Feed)
• Guidance for Industry #120 Veterinary Feed Directive Regulation Questions and Answers

Low Acid Canned Food (LACF)

If your animal food business thermally processes low-acid foods packaged in hermetically sealed (airtight) containers, commonly called low-acid canned foods (LACF), you must follow the LACF requirements . Although some airtight containers (like pouches or trays) used to thermally process low-acid foods are not considered cans, we continue to use the term “low-acid canned foods” and its abbreviation (LACF) as a shorthand description. If your business makes these types of products, you must register your business as a Food Canning Establishment and file scheduled processes with FDA for each product you make. A scheduled process is the process you select as adequate under the conditions of manufacture for a given product to achieve commercial sterility. This process may be in excess of that necessary to ensure destruction of microorganisms of public health significance, and shall be at least equivalent to the process established by a competent processing authority to achieve commercial sterility (21 CFR 113.3(r)). 

FDA’s website contains more information about LACF requirements and acidified requirements. Note that the information on this page covers both LACF requirements and acidified food requirements. LACF requirements apply to both human and animal food, but acidified requirements apply only to human food.

Sanitary Transportation of Animal Food

The Sanitary Transportation of Human and Animal Food (ST) regulation in 21 CFR part 1, subpart O, explains the steps that shippers, loaders, motor or railroad carriers, and receivers must take to ensure the safety of food during transport. Ways that food can become unsafe during transport include:

• not properly refrigerating food, 
• inadequately cleaning vehicles between loads, and 
• not protecting food from contamination by non-food items in the same load or previous load.

The regulation is broken down into sections including General Provisions, Vehicles and Transportation Equipment, Transportation Operations, Training, Records, and Waivers. The Sanitary & Transportation Guidance Documents & Regulatory Information webpage has links to the different regulations and guidance documents you need.

Bovine Spongiform Encephalopathy (BSE, or “Mad Cow Disease”)

If your animal food business handles “prohibited materials,” which are materials that could cause the spread of BSE disease through animal food, then you must follow the BSE requirements for handling these materials as part of your business.

Prohibited materials include, but are not limited to, ruminant (e.g., cattle, sheep, and goat) meat and bone meal, organs, and offal. The most common prohibited material found in animal food is meat and bone meal that comes from cattle. You can find more information about prohibited materials on CVM’s Bovine Spongiform Encephalopathy (BSE) webpage .

Prohibited materials are commonly handled at businesses such as renderers, protein blenders, commercial animal feed manufacturers, distributors (including retailers), transporters of animal feed and animal food ingredients, and on-farm animal feed mixers. Although ruminant feeders are unlikely to handle prohibited materials, it is important they are aware of the requirements and know what to avoid. The regulations (21 CFR 589.2000) define several of these business types.

There are two FDA regulations that focus on preventing the spread of BSE through animal food.

The “Animal Proteins Prohibited from Use in Animal Feeds” regulation in 21 CFR 589.2000 was created to prevent BSE from spreading through animal food. This regulation prohibits using certain tissues from mammals in animal food for ruminants (e.g., cattle, sheep, goats). You can find more information about this regulation on CVM’s ruminant feed inspections webpage. 

The “Cattle Materials Prohibited in Animal Food/Feed (CMPAF)” regulation in 21 CFR 589.2001 prohibits using the brains and spinal cords from cattle 30 months of age and older in any animal food, including all types of livestock and poultry feed and pet food. The regulation is age-specific because cattle in this age range are at the highest risk for BSE. In BSE-infected cattle, the brain and spinal cord contain most (about 85%) of the infectious materials that could cause the spread of BSE. This regulation is intended to remove these tissues from the animal food chain entirely, thus greatly reducing the potential for inadvertent cross-contamination. Removing these tissues from the animal food chain prevents cross-contamination or accidental or intentional misfeeding. The regulation mainly applies to renderers and slaughter facilities because it focuses on removing the brains and spinal cords from animal carcasses, which is an activity typically performed at these facilities. 

You can find CVM BSE Guidances , the Feed Ban Enhancement , and other requirements for BSE on the CVM BSE webpage .

Import/Export of Animal Food

Importing animal food.

General FDA Imports Information

Imported animal food, including medicated feed products, must meet the requirements of The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (the Bioterrorism Act). This law requires animal food producing facilities to register with FDA and to file "prior notice" for each shipment of imported food before it arrives at a U.S. port of entry. The FDA website has more detailed information about facility registration and prior notice requirements.

If you have questions, or you need help with registering your facility or with filing prior notice, please contact the FDA’s Industry Systems Help Desk experts Monday to Friday from 7:30 am to 11:00 pm EST 

• By phone:  1-800-216-7331
• By email:   [email protected]

In addition to FDA requirements, you may need to satisfy U.S. Customs and Border Protection (CBP) requirements. You can find CBP’s requirements on the U.S. Customs and Border Protection website .

FDA can examine shipments of regulated products whenever they are offered for entry at a U.S. Port of Entry . FDA will detain products that violate FDA law and regulations. Products that cannot be brought into compliance with the law will be refused. Refused products must be exported or destroyed under CBP supervision. Even if FDA did not examine a regulated product at the time of entry, the product must still comply with U.S. laws and regulations when it is in the U.S.

The following FDA webpages have more detailed information about importing products into the U.S.: 

• Import Program – Food and Drug Administration (FDA)
• Importing - Animal Food
• Regulatory Procedures Manual  - Chapter 9: Import Operations and Actions

Foreign Supplier Verification Program (FSVP)

The Foreign Supplier Verification Program (FSVP) regulation in 21 CFR part 1, subpart L , applies to U.S. importers of human and animal food. Under the FSVP, an importer is the U.S. owner or consignee of a food offered for import into the United States. If there is no U.S. owner or consignee, the importer is the U.S. agent or representative of the food’s foreign owner or consignee at the time of entry, as confirmed in a signed statement of intent. You can find more information about whether the FSVP regulation applies to you on the Am I Subject to FSVP? fact sheet.

Importers of animal food must have an FSVP in place. The FSVP requires importers to verify that the processes and procedures their foreign suppliers are using to make animal food give the same level of public health protection that the PCAF regulation does and ensures that the supplier’s animal food is not adulterated. Importers must:

• Determine whether there are known or reasonably foreseeable hazards associated with each animal food;
• Evaluate the risk posed by an animal food, based on the hazard analysis, and the foreign supplier’s performance;
• Use that evaluation of the risk posed by the imported animal food and the supplier’s performance to approve suppliers and determine appropriate supplier verification activities;
• Conduct supplier verification activities; and
• Conduct correction actions.

You can find more information about the FSVP rule, including information on compliance dates, on the FDA FSMA Final Rule on Foreign Supplier Verification Programs (FSVP) for Importers of Food for Humans and Animals webpage .

Exporting Animal Food

Some animal food businesses will export their animal food to other countries. You can find more information about the requirements for exporting animal food, including the types of export certificates an animal food business can request on CVM’s Exporting—Animal Feed and Animal Drugs webpage . 

• How to Start a Food Business

Livestock Feed Mill Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Agriculture Sector » Agro-Allied

Are you about starting a livestock feed mill? If YES, here is a complete sample livestock feed mill business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a livestock feed mill business . We also took it further by analyzing and drafting a sample livestock feed mill business marketing plan template backed up by actionable guerrilla marketing ideas for livestock feed mills. So let’s proceed to the business planning section.

Starting a livestock feed mill business can be regarded as a big and lucrative business especially if you are grounded in managing a business and are able to use the dynamics to run your business successfully. For your business to be however successful, you might need to locate your livestock feed business in an area where there is an abundance of livestock as well as agricultural inclined customers.

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Depending on the kind of customers you are likely to have, you might need to custom mix the feed from your feed mill so that you can deliver the feed products to your customers. While the livestock feed business might be one where you would need to supplement your income with other revenue generating sources, it is still a good business to start up.

Before starting this kind of business however, you would need to consult a business consultant who would be in the best position to let you know how successful your business is likely to be. Another aspect that is very important when starting any business is having a business plan.

Writing a business plan might look intimidating especially regarding the aspect that deals with finances. There are however options available if you want a comprehensive business plan for your business.

The options are seeking the services of a business plan writer to write out a good business plan for you or going online to seek for free business plan templates to act as a guide to writing your own business plan. It is for this reason that a sample livestock feed mill business plan template has been prepared below;

A Sample Livestock Feed Mill Business Plan Template

1. industry overview.

The economic value of animal agriculture in the united states of America is very huge as it has provided more than 2.3 million jobs for the economy. The monetary value amounts to $440.7 billion, with $21 billion from household incomes.

There are nearly 6,000 feed mills in the United States of America and out of this number nearly 950 produce feeds that are medicated in nature, while nearly 545 produce pet foods. The raw materials used in producing feeds are corn, barley, wheat, oats, sorghum, soybean meal, corn silage production, hay, and alfalfa.

The livestock feed industry is valued at $32 billion annually. However, this industry has experienced a slow decline between the periods of 2011 and 2015, as there have been dramatic spikes in the prices o ffeeds and also increased demand from wholesale farm suppliers.

Globally though, the rise in population has caused an increase in meat demand which has also caused more feed mills to produce feeds to meet with the growing demand by livestock farmers. The revenue for the periods of 2016 to 2022 is therefore expected to increase.

Most livestock feed mills have been established close to where the source of raw materials and major transportation hubs are so as to have less operating costs and therefore offer feeds cheaper to its various customers. The past five years has seen top manufacturers in this industry concentrate most of their operations in a small number of sites using automatic equipment and a continuous operation that produces significant economies of scale.

Most of the products produced are often transported in bulk to the various destinations across the country. The population growth trend is consistent with the increasing trends across other industries in the food and agricultural sector.

2. Executive Summary

Livestock Feeds and Mo Inc is a leading and standard livestock feed mill business located here in San Antonio – Texas in the United States of America with an aim to cater to various customers in the agriculture industry. We intend to produce quality livestock feeds for our various customers not only here in San Antonio but all over the United States of America as well.

We however intend to ensure that we create multiple sources of income by offering products and services such as feed delivery merchandise, agricultural educational programs, boarding stables, consultancy and advisory services and agricultural tools and implements.

Our vision is to ensure that we offer our customers’ feeds on time for their livestock without compromising on the quality of the feed. We intend to become the preferred livestock feed business here in San Antonio – Texas and amongst the top three in the United States of America by 2022.

As we are in business to favorably compete against other livestock feed mill businesses, we intend to go the extra mile in ensuring that we get the finest professionals that will ensure that we are able to attain all our goals and objectives.

Our management team were carefully picked by the chief executive officer due to not only their experience and capability but also due to the understanding of our corporate goals and policies as well as an intention of ensuring that they are committed and willing to ensure that these goals are achieved.

Our employees work in an environment that is not only easily accessible but also conducive as well. We will ensure that our employees are well paid and that they receive great welfare and incentive packages that will boost their morale and make them become more dedicated to ensuring that all our goals and objectives are achieved.

We will also ensure that our employees are well trained in line with industry trends. We will also ensure that they attend seminars and conferences that will not only make them have enhanced skills but also improve the productivity rate of the organization.

Finally, our Chief Executive Officer, Mr. Benteen Calder and his wife have the needed experience and management expertise that will not only boost the growth of our organization but also ensure that we sustain and expand our business at a pace suitable for us.

3. Our Products and Services

Livestock Feeds and Mo Inc intends to deal in livestock feeds by setting up livestock feed mills that will see us being able to cater to all the needs of our various customers here in San Antonio – Texas.

However, because we do not intend to be entirely dependent on one source of income, we intend to create multiple sources of income that will be in line with our core service. We will sell agricultural tools and implements, offer agricultural educational programs as well as consultancy and advisory services.

We intend to through this make as much profits as we can from the agribusiness sector in the agriculture industry and according to the permissible laws of the United States of America. Our products and services include;

• Livestock feed
• Feed delivery merchandise
• Agricultural educational programs
• Boarding stables
• Consultancy and advisory services
• Agricultural tools and implements

4. Our Mission and Vision Statement

• Our vision is to ensure that we offer our customers’ feeds on time for their livestock without compromising on quality of the feed. We intend to become the preferred livestock feed business here in San Antonio – Texas and amongst the top three in the United States of America by 2022.
• In order to achieve our mission, we will ensure that we build several livestock feed mills and also employ competent and capable employees to help attain our goals and objectives.

Our Business Structure

Building the right business structure is very important to us as a business especially as we intend to stand out in the industry and compete favorably against our competitors.

We are therefore willing to go the extra mile in ensuring that we make plans and build structures and processes that will enable us to build the right business structure that will make our business become one to be reckoned with. We intend to do all we can to ensure that we employ competent and proficient hands to handle all the various positions and roles that will enable our company achieve its vision and objectives.

We will ensure that our management team thoroughly understand their roles and delegate duties when necessary in order for the company to move forward and grow.

Even though running a conventional livestock feed mill business might be simpler for us as a start-up, we would not be running something conventional and this is due to the various additional services and products that we will sell in order to have multiple sources of income.

Therefore, below is the business structure that we will build at Livestock Feeds and Mo Inc;

Chief Executive Officer

Feed Mill Production Manager

Admin and Human Resources Manager

Accountant/Cashier

Machine Operators

Store Manager

Front Desk Officer

Marketing and Sales Team

Truck Driver

Security Guard

5. Job Roles and Responsibilities

• Makes strategies and policies that will affect the overall operation of the organization
• Hires and delegates responsibilities to the management team and ensures that the policies are duly implemented
• Reviews strategies and policies and negotiates with high level clients on behalf of the organization
• Oversees the livestock feed production and ensures that quality is maintained always
• Responsible for and evaluates the performance of employees for the benefit of the organization
• Ensures that organizational policies and decisions are duly implemented
• Sources for, interviews and hires capable and efficient employees on behalf of the organization
• Reviews employee performance and ensures that those who work hard are duly rewarded
• Ensures that the administrative functions of the organization are performed smoothly
• In charge of preparing financial reports, budgets, statements and information on behalf of the organization
• In charge of conducting financial analysis and forecast on behalf of the organization
• Prepares tax documents and ensures that they are duly submitted to the tax authorities
• Ensures that the machines used for the feed mill are in optimum condition
• Cleans the machines and ensures that they are recalibrated for each new task it will perform
• Carries out preventive maintenance on the machines and reports major faults to the management
• In charge of inventory and monitors all incoming and outgoing stock on behalf of the organization
• Ensures that the store is adequately secured and ventilated
• Carries out other duties as directed by the management
• Attends to clients on behalf of the organization by answering inquiries and providing correct information
• Maintains an updated and accurate customer database on behalf of the organization
• Remains enlightened about the company policies as well as industry trends so as to give customers accurate information
• Conducts market research in order to determine new target markets for the organization
• Creates effective marketing strategies that will generate revenue for the organization
• Meets with clients in order to negotiate on behalf of the organization
• Ensures that customers products arrive on time and at the right destination
• Keeps a logbook of trips undertaken and the routes used
• Obeys all traffic laws and regulations whenever on official errands for the organization
• Ensures that the premises is cleaned
• Ensures that cleaning stock are always in supply
• Carries out other duties as determined by the management
• Ensure that the facility is secured at all times
• Remains updated as regards trends in the security industry
• Submit regular security reports

6. SWOT Analysis

Starting a livestock feed mill here in San Antonio might look like an easy business to start up, but there are several factors that we need to take into consideration; which is why we have engaged the services of a business consultant to look through our business concept and determine if we had what it takes to make it in this business.

The business consultant used our strengths, weaknesses, opportunities and threats to determine if we were likely to make it in this business. Therefore the SWOT analysis that was conducted on behalf of Livestock Feeds and Mo Inc are;

We have several strengths going forward in this business. Our location for one in San Antonio – Texas is very strategic as it allows our customers to easily access us conveniently. The fact that we are also offering other services in addition to our core service is another strength for us.

We have also employed employees that are not only proficient but also highly experienced and understand how best to grow our business from a start-up to a force that will be reckoned with nationally. Finally, our chief executive officer is highly experienced and possess all the attributes needed to make our business not only stand out and compete favorably against our competitors but also succeed in this business as well.

Due to the fact that we are relatively a new business, there are several weaknesses we are battling with such as low finances to run all the services we intend to run as well as few staff strength. Also, the fact that we are still unknown will mean we will need to deploy strategies that will likely make us become more visible to our target market.

• Opportunities

The fact that not only livestock farmers make use of livestock feeds is a great opportunity for us in this business. We are however conducting more market researches that will allow us be aware of the more opportunities available to our business.

The threats that we are likely to face when starting or running this business will result from having another competitor offering the same services arriving in the same location as us; also, an economic downturn will likely cause livestock farmers to want to produce their own feeds, thereby not allowing them to patronize us as they should.

7. MARKET ANALYSIS

• Market Trends

The livestock feed mill industry consists of animal feed producers who make food for livestock. Materials that are often used are remnants of flour milling, sugar production as well as other food materials that are integral to the production of livestock feed.

The activities in this industry usually include cubed alfalfa, cattle feeds, barley feeds, chicken feed , turkey feed, swine feed, cubed hay, dairy cattle feed, and custom grain grinding for animal feed. In most animal feed businesses, generating revenue is usually from diversification of products and services. This is so as to achieve substantial growth.

8. Our Target Market

As long as there is livestock farming, there will always be those who demand feeds for their livestock. While on the average we would be catering to livestock farmers, we cannot categorically say that these will be only those that we will cater to, which is why we would be conducting a market research to enable us determine who our target market is so that we would have an idea of the marketing strategies that we would create in order for it to be effective.

Another reason for conducting this market research is so that we would also have an idea of what our intending target market would be expecting from us. From our findings, we are in business to sell our products and offer our services to the following groups of people;

• Cattle farmers
• Ranch farmers

Our competitive advantage

Our intention of starting a livestock feed mill business is so as to offer our various customers quality livestock feeds on time without compromising on the quality of these feeds. We intend to become the preferred livestock feed business here in San Antonio – Texas and amongst the top three in the United States of America by 2022.

However in order for us to be able to achieve this, we intend to lay out strategies that will allow us compete favorably against our competitors.

We are going to ensure that we build feed mills that will be able to meet all the demands from our various customers. Our intention of building these feed mills is so that no matter what demands will be made, we would still be able to meet them.

Another competitive advantage that we will have over our competitors is the vast experience of our management team. Our management team is filled with professionals who understand the industry thoroughly and know how best to ensure that our business is able to attain all its goals and objectives.

Our management team also understand how best to communicate our policies to other employees in such a way as to ensure that everyone is carried along.

Our employees are those that are not only proficient but also capable and dedicated in carrying out all the needed tasks with as little supervision as possible. Our employees have also adopted an excellent customer culture that ensures that all our customers are always attended to and earn a high sense of satisfaction that will allow us retain a high percentage of these customers.

Finally, we intend to ensure that all our employees are well paid, better than other employees in similar start-ups such as ours here in San Antonio.

We also intend to give them great welfare and incentive packages that will ensure that they remain motivated to working for our company. We will also ensure that our employees undergo the necessary training that will enhance their skills and boost productivity for our business.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Livestock Feeds and Mo Inc is a livestock feed mill business that intends to offer livestock feed to all our various customers with the sole aim of generating revenue and maximizing profit in the agriculture cum agri-business industry here in the United States of America.

We are going to also offer additional services to our wide range of customers that will see us generate more income and make more profit. We at Livestock Feeds and Mo Inc therefore intend to generate income by selling the following;

10. Sales Forecast

The livestock feed business is one that will always be in demand due to the fact that there are more than enough livestock farmers and others who use livestock feed for purposes that are important. San Antonio is one of the largest cities in Texas with a population of more than 1.5 million citizens, with about 30% into livestock farming.

The location therefore has us well positioned to cater to all our intending and existing customers. This also has us confident of the fact that we would not only generate enough revenue but that we will break even and make profit in our first year of business that will grow and sustain our business.

We have also taken a critical look at the agricultural cum agribusiness industry in order to analyze our chances at making it in the business we intend to start up. The sales forecast we therefore came up with is one that was gotten after using several assumptions and data from similar start-ups such as ours here in San Antonio – Texas.

Below therefore are the sales projections for Livestock Feeds and Mo Inc based on certain statistics and data used;

• First Fiscal Year-: $600,000
• Second Fiscal Year-: $1,100,000
• Third Fiscal Year-: $2,000,000

N.B : It should be noted that the above sales forecast was done based on the statistics obtained from the industry and on the assumptions that there won’t be any major economic meltdown that would see farmers preparing their own feed and that no competitor would be arriving at the same location as ours during this three year period. Should any of the assumptions or data change, there would be an increase or decrease in the stated figures.

• Marketing Strategy and Sales Strategy

Because we intend to sustain and grow our livestock feed mill business, we would take our marketing goals very seriously in order to ensure that we deliver on our corporate goals and objectives. Marketing for us is a means of generating revenue as well as creating awareness for our products and services.

In order therefore to create the right marketing strategies that would suit our business, we intend to therefore conduct a market survey that will allow us understand who our target market is, what they want from us, and how best to penetrate the available market and position our business to grow and effectively compete against its competitors.

We would be using detailed data and information that was gotten from similar businesses such as ours here in San Antonio – Texas.

We would be engaging the services of a reputable marketing consultant who understands the industry well to help us craft effective marketing strategies that will allow our livestock feed business to win a large share of the target market not only here in San Antonio but throughout the United States of America as well.

We also intend to ensure that our marketing and sales team ensures that marketing strategies crafted fully align with our corporate sales goals and vision. Our marketing team have been empowered to modify or remove marketing strategies that are not deemed effective in helping achieve our intended goals and objectives.

Therefore, Livestock Feed and Mo Inc will adopt the following sales and marketing approach in order to sell its products to its various customers;

• Ensure that relevant customers and stakeholders are aware of our livestock feed business her in San Antonio – Texas.
• Start off our livestock feed mill business with a party that will generate interest and capture the attention of our target market.
• Ensure that our livestock feed mill business is listed in yellow pages, farmers guide and online directories.
• Use social media platforms such as Facebook, Twitter and Linkedin to advertise and market our products and services
• Place adverts in local newspapers and on radio and television stations here in San Antonio
• Engage in direct marketing and sales of our products

11. Publicity and Advertising Strategy

Publicity is not only a way of creating awareness but also ensuring that a business generates revenue that will help grow and boost the business. Having the right publicity for our business is therefore important as we intend to create awareness within our target market for existing and new customers that will positively communicate our business and project our brand positively.

We will therefore engage the services of a publicity consultant here in San Antonio who thoroughly understands the agribusiness sector of the agricultural industry to help us create publicity strategies that would allow our business stand out and make us to be able to compete favorably against similar competitors here in San Antonio.

The publicity strategies that we will use to promote and communicate our brand are;

• Ensure that we place adverts in local newspapers as well as on radio and television stations
• Distribute our handbills and fliers in different strategic locations here in San Antonio
• Use social media platforms such as Facebook, Twitter and Linkedin to further promote and increase publicity for our livestock feed mill business
• Engage in and sponsor relevant programs in the community
• Install flexi banners and billboards at strategic positions all over San Antonio so as to increase the awareness for our business
• Ensure that we create a unique logo and have this emblazoned on our delivery truck so that people would be able to recognize our business.

12. Our Pricing Strategy

Setting a price for our livestock feed as well as other products and services that we would be offering at Livestock Feeds and Mo Inc is very important because we do not want to set a price that will allow us run at a loss or chase our customers away.

Therefore before setting our price, we would be making some consideration on certain factors such as what it would cost us to produce these feeds, our overhead expenses, what our nearest competitors are offering and the size of the feeds.

Because we however are a new business and want to ensure we get a large share of the market, we would be offering our customers a price discount on our products and services in order to create awareness for our business and attract more customers.

The price discount strategy has been carefully reviewed by us and while we might be running on a low profit margin during this period, we would however not be running at a loss.

• Payment Options

Because we always want the best for our customers, we at Livestock Feeds and Mo Inc have come up with different payment options that would suit all our diverse customers and whatever preferences they might have. The payment options that we will therefore make available at Livestock Feeds and Mo are;

• Payment via cash
• Payment via online payment portal
• Payment via credit card
• Payment via Point of Sale (POS) machine
• Payment via bank draft
• Payment via check

13. Startup Expenditure (Budget)

The livestock feed mill business is one that requires certain equipment and structures in place, which will take a chunk of the start-up capital in order for it to be referred to as a standard business. Therefore, we intend to spend the bulk of our capital in getting the raw materials for the feed, constructing a feed mill, getting a truck, buying a land and paying the salaries of employees.

The key areas where we intend to spend our start-up capital on are;

• Total fee for business registration and incorporation in the United States of America – $750
• Obtaining of licenses and permits, inventory and customer software, accounting software and other legal expenses – $2,250
• Insurance coverage (equipment insurance, vehicle insurance, workers’ compensation and general liability) – $2,000
• Marketing, promotion and publicity expenses for both grand opening of our livestock business as well as general marketing promotion – $3,000
• Buying a land, building of administrative, operation and storage facilities – $200,000
• Cost of hiring a business consultant – $2,000
• Operational cost for the first six months which would include employee salaries and payment of bills – $150,000
• Start-up inventory (raw materials and packaging) – $50,000
• Constructing of feed mills to produce livestock feed – $10,000
• Other start-up expenses (POS Machines, utilities, signage, business cards and stationeries) – $3,000
• Purchase of truck for use in operation – $50,000
• Purchase of furniture and devices (computers, printers, photocopiers) for administrative section – $3,000
• Cost of store equipment (security, ventilation, racks) – $2,000
• Cost of launching a website – $500
• Cost of throwing a party to create awareness – $1,000
• Miscellaneous – $7,000

From the above analysis, we would need the sum of $486,500 to be able to set up and run a standard livestock feed mill business here in San Antonio – Texas. It should be noted that the bulk of the capital will go into buying a land and building several facilities on it, procuring a delivery and an errand truck, getting start-up inventory and setting up a feed mill and also paying the salaries of employees and utility bills for the first six months.

Generating Funding/Startup Capital for Livestock Feeds and Mo Inc Business

Livestock Feeds and Mo Inc is a family business that is financed, owned and run by Benteen Calder and his wife. Since this is a family owned business, the couple does not intend to seek for external business partners and due to this, they have decided to restrict the sourcing of their start-up capital to just few sources.

The areas where we therefore intend to source for our start-up capital from are;

• Generate start-up capital from personal savings and sale of stock
• Source for grants from the federal government
• Apply for loan from the bank

N.B : We were able to generate about $56,000 from our personal savings and sale of stocks. We won a grant of $200,000 from the federal government to use in starting our business and we approached the bank for the sum of $230,000 to be repaid in 10 years at the rate of 3% per annum.

All the documents concerning the loan has been approved and signed on and we have been told that the amount will be credited to our business account before the week runs out.

14. Sustainability and Expansion Strategy

The sustainability of a business depends on what plans are being put in place to ensure that the business survives for a long time. We intend to have our livestock feed mill business exist for a long time and so we will ensure that certain factors that will allow our business to remain long in existence and grow are not taken for granted.

We will ensure that we build a sound business structure, carrying out intensive publicity and also re-invest in our business.

Building the right business structure is very important to us and as such we do not mind going the extra mile to ensure that we get employees that are not only experts but committed and dedicated to ensuring that they put in their best to see our livestock feed mill business grow.

Our employees all come with experience and understand how things are done in the industry in order to make sure a business like ours grow.

We intend to make sure that our employees are not only well paid and have the best incentive and welfare packages but that they are also allowed to go for training that would not only enhance their skills but boost productivity for our livestock feed mill business as well.

Our management team understands well the philosophies our company run on and know how best to ensure that policies are implemented for the good and growth of the business. In order to ensure that we receive the right awareness for our business whilst also generating revenue, we intend to engage in massive publicity.

To achieve this, we will engage the services of a reputable publicity consultant here in San Antonio, who understands the industry and will therefore craft the right publicity strategies that will not only boost our business and positively communicate our brand, but will allow us stand out and compete favorably against our competitors.

Due to the fact that we do not intend to continually use external sources of revenue always, we will ensure that we re-invest 30 percent of our earnings right back into the business.

We have set plans and structures in place that will ensure that this is always carried out no matter who is in charge of our financial. These are the three factors that we intend to engage in so as to sustain and expand our livestock feed mill business here in San Antonio – Texas.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting feasibility studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing/Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party/launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers/merchants: In Progress
• Purchase of trucks: Completed

• Resources for Entrepreneurs > Open a Business > Starting a Business

Starting an Animal Feed Business

Starting a Business

We've collected some good advice that is perfect for entrepreneurial folks who want to open an animal feed business. This is a must-read before you begin your venture.

This article includes many valuable bits of advice on starting an animal feed business.

Regional Issues

In certain parts of the country, animal feed companies are big business. For sure, the most successful animal feed businesses are located in agricultural areas with an abundance of livestock and agri-business clientele. If your customers are primarily cattle farmers, your startup will need to be a feed mill that can custom mix and deliver feed products to your customers.

However, agricultural customers won't be your only customers. Hunters routinely purchase feed to attract wildlife to their land plots and pet owners sometimes eschew pet stores in favor of serious feed vendors. Horse-lovers will comprise up yet another portion of your customer base, making it possible to launch an animal feed business in a more-heavily populated suburban environment.

Animal Feed Industry Growth Models

In a typical small business, growth means capturing a larger share of the market. But a market share approach may not be effective for growing an animal feed business. Why? Because in many instances, rural markets have a limited number of agricultural customers. Although you can expand your territory, the likelihood of hitting growth targets isn't good.

So for most animal feed businesses, diversification is the key to revenue growth. Products like tools, agricultural implements and feed delivery merchandise can provide supplemental income for your feed operation. But to achieve substantial growth, you may need to explore ways to create a market for your feed products.

For example, instead of hoping that the number of agricultural feed customers increases, your mid- to long-term strategy could include plans to launch auxiliary businesses like boarding stables, relocation companies or agricultural education programs. These types of auxiliary businesses have the potential to be profitable in their own right. However, they also increase the number of agricultural consumers in your area and create additional demand for your feed products.

Creating a First-Rate Animal Feed Company Business Plan

It's virtually impossible for your animal feed business to succeed without an effective business plan.

A solid business plan should include verifiable industry data. Fudging the numbers is the equivalent of sabotaging your animal feed business's strategic interests.

Instead, commit to creating the most precise business plan possible. As a further guide, consider what the experts say about business plan writing .

Take a Look at Competitors

Prior to opening an animal feed business in your area, it's worthwhile to find out how you will fit in the competitive landscape. Try our link below to find competitors in your city. Just enter your city, state and zip code to get a list of animal feed businesses in your community.

• Search for Animal Feed Businesses Near You

Is the established competition doing a good job? It's important to understand their strengths and weaknesses and think through how you'll stake up against those established businesses.

Learn from Others Who Are Already In This Space

As part of your due diligence on opening an animal feed business, the next step is to learn as much as you can from somebody who is already in the business. If you think owners of nearby animal feed businesses will give you advice, think again. It'd be crazy for them to teach you the business.

But, a person who owns an animal feed business in a location that is not competitive to you will be much more likely to talk with you, provided that you won't be directly competing with them. Many business owners are happy to give advice to new entrepreneurs In my experience, you may have to call ten business owners in order to find one who is willing to share his wisdom with you.

Want the scoop on finding an owner of an animal feed business in a different locale who can assist you?

It's not that hard. Just use the handy link below and enter in a random city/state or zipcode.

• Find Animal Feed Business Owners Who Might Advise You

Guidelines for an Animal Feed Business Acquisition

Many startup animal feed business owners ultimately set aside their startup plans and instead, purchase an animal feed business in the business-for-sale marketplace.

An acquisition isn't necessarily a bed of roses. You'll need to thoroughly evaluate the factors involved with buying a business . Right away, you'll want to make sure the business is capable of meeting your ownership expectations.

If the business is right for you, the assistance of a business broker will help all of the rest of the pieces of the process fall in place and you will be well on your way to owning a proven animal feed business.

Explore Franchising Options

Recognize that your chances of becoming a successful entrepreneur are substantially improved if you decide to franchise instead of doing it all on your own.

Before opening an animal feed business, you ought to investigate whether purchasing a franchise might make your life much easier.

The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.

• Research Franchising Opportunities

Related Articles on Starting a Company

These additional resources regarding starting a business may be of interest to you.

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Animal F eed P roduction Process

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How to Start Animal Feeds Business in Kenya

With agriculture being Kenya's backbone, investing in agribusiness is a profitable business . The animal feed business is the booming business in the suburbs. Many people rely on agriculture for their livelihoods in Kenya. Among the animals reared in Kenya are cows, goats, pigs, chickens, turkeys, ducks and rabbits. If you are planning to start an animal feed business, we will take you through the whole process.  

Carry out a Feasibility Study

Before venturing into the animal feed business, you need to do a feasibility study. It will help you determine if the business is viable. It also makes it easy to write a business plan . When carrying out a feasibility study, identify the most-reared animals. Then you can stock more of their feeds.

Also, consider the number of businesses that sell animal feed within the locality. This will help you determine the level of competition in the market. It is not advisable to start a business where there is high competition. 

Write Animal Feeds Business Plan 

If you have carried out a feasibility study, it will help you write a business plan . Since you have all the figures at hand, you only need to put them down on paper. A business plan should have startup capital, a  source of startup capital , business location, market segmentation, projected business revenues, business risks and strengths.  

Another reason why a business plan is important is that it will help your business maneuver when there is a challenge. It is because you will have foreseen challenges that the business is likely to face and found their solutions. 

Find a Good Business Location

Most businesses do well in urban areas, but the animal feeds business thrives well in rural areas and in the suburbs. You need to set up your animal feeds business in a business location where people rear animals. You also need to stock animal feeds depending on the animals reared in the locality.

For instance, if the locals rear chicken , then you need to stock more chicken feed. In Kenya, the animal feeds business thrives well in small towns near rural areas . It is unlikely to see people in towns rearing animals. 

Find Reliable and Cheap Animal Feeds Suppliers

When writing a business plan, you need to identify the best animal feeds suppliers in the market. With cheaper suppliers, your business can retain high profit margins.

Consider their prices, reliability and the quality of their feeds. You can shop around and get to know the best animal feed suppliers on the market. 

The quality of feeds is very critical. To know the best-quality feeds, make sure to talk to farmers and ask which feeds they prefer to use. When farmers know that you stock the animal feeds they prefer, they will buy from your shop. 

Animal Feeds Business Startup Capital

The animal feeds supply business does not require huge startup capital . You can start a small animal feeds business with about Ksh 250,000 and expand your business with time. The following is a breakdown of animal feeds business startup capital.  

• Business licenses – Ksh 5,000 annually
• Store rent – Ksh 20,000 (inclusive of one month upfront)
• Branding – Ksh 5,000
• Dairy meal – Ksh 10,000
• Chick mash – Ksh 50,000
• Growers mash – Ksh 50,000
• Others - Ksh 80,000

The good thing about the animal feeds business is that you can expand your business and open an agrovet . Alternatively, you can also start supplying animal feeds on a large scale to other retailers. This way, you can diversify your business revenues.   

Is the Animal Feed Business Profitable in Kenya?

With a suitable business location, the animal feeds business is a profitable venture . You need to find a business location where people practice poultry or dairy farming . The profitability of the business also depends on the number of sales you make per day. Also, its profitability depends on the animal feeds you are selling. 

For business consultancy, strategic planning, organizational development, market research, financial management & accounting, risk management and business plan writing at an affordable fee, please reach out to us through a phone call 0728 621 138, or  WhatsApp , or email: [email protected]

Challenges Faced by Animal Feeds Businesses

One of the most common challenges  faced by the majority of animal feed businesses is poor quality feeds. It may not be the fault of the business but the suppliers. For instance, if you are selling chick mash, you need to be keen on the quality.

There is some chick mash in the market that kills chicks. If you sell such feeds to farmers, you may lose customers and never have them back in your business.

Read also: How to Start a Timber Yard Business.  

How to Market Animal Feeds Business 

The best way to market your business is through customer referrals. This is only possible if your business sells quality feeds. A farmer will recommend your business to other farmers if you sell quality feed.

You can also market your business by attending agricultural shows and trade fairs. You can take the animal feeds to agricultural shows and then talk to farmers about them. Other ways to market your business are through social media, word of mouth and posters. 

Animal feeds business is a profitable venture if you can supply quality feeds. Get a good business location where people rear animals and then market your business. It is also good that you ask your customers if they like your feeds. This way, you can quickly know what changes you need to make. 

• How to start a dairy farming in Kenya
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Get in touch

For business consultancy, business plan writing, market research, strategic planning, risk management, financial management & accounting at an affordable fee, please reach out to us through:

• [email protected]
• +254 728 621 138
• 1503 -01000, Thika KIBS Plaza, Thika

Oklahoma rodeo company blames tainted feed for killing as many as 70 horses

A nearly century-old Oklahoma company that supplies stock for rodeos had as many as 70 horses die a week ago after receiving what an owner believes is tainted feed

OKLAHOMA CITY -- A nearly century-old Oklahoma company that supplies stock for rodeos had as many as 70 horses die a week ago after receiving what an owner believes was tainted feed.

Rhett Beutler, co-owner of Beutler and Son Rodeo Co. near Elk City, told KFOR-TV that the horses died shortly after being fed.

“We didn't know what was going on, we just got the feed and started feeding it like always,” Beutler said. “Then all of a sudden looked up and there was horses just falling over, dying.”

Beutler and Son officials did not immediately return messages seeking comment Friday.

“All them horses are kind of like my kids; I’ve raised them from time they were born,” Beutler told KOKH-TV , “Once you lose one, that’s one too many.”

The Oklahoma Department of Agriculture, Food and Forestry said in a statement that it was notified Aug. 23 of the horses' deaths related to a bulk order of feed and has opened an investigation.

“An inspector visited the Beutler and Son site on behalf of the department on Monday, August 26, and learned that the feed originated in Kansas,” according to the statement. “The ODAFF inspector collected a feed sample which is being analyzed in two state-certified laboratories.”

The department said it is working with the Kansas Department of Agriculture to investigate the company that provided the feed.

“We have initiated an investigation which includes labeling procedures, operating procedures and a review of their records to ensure the appropriate protocols were followed” in producing and shipping the feed to Oklahoma, said Kansas agriculture spokesperson Jamie Stewart.

The company that provided the feed has not been identified because of the ongoing investigation, Stewart said.

Dr. Gregg VeneKlasen, of the Timber Creek Veterinary Hospital, the Beutlers' veterinarian, declined to comment on the deaths other than to call it a “tragedy.”

Beutler and Son was founded in 1929 as Beutler Brothers near Elk City, about 105 miles (169 kilometers) west of Oklahoma City, and provides stock for rodeos, including the National Finals Rodeo.

The company is providing the majority of stock for the Elk City Rodeo starting Friday night, according to Elk City Rodeo board member Randy Hargis, who said the events include bareback horse riding, saddle bronc riding, bull riding and steer wrestling.

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Oklahoma rodeo company blames tainted feed for killing as many as 70 horses

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OKLAHOMA CITY (AP) — A nearly century-old Oklahoma company that supplies stock for rodeos had as many as 70 horses die a week ago after receiving what an owner believes was tainted feed.

Rhett Beutler, co-owner of Beutler and Son Rodeo Co. near Elk City, told KFOR-TV that the horses died shortly after being fed.

“We didn’t know what was going on, we just got the feed and started feeding it like always,” Beutler said. “Then all of a sudden looked up and there was horses just falling over, dying.”

Beutler and Son officials did not immediately return messages seeking comment Friday.

“All them horses are kind of like my kids; I’ve raised them from time they were born,” Beutler told KOKH-TV , “Once you lose one, that’s one too many.”

The Oklahoma Department of Agriculture, Food and Forestry said in a statement that it was notified Aug. 23 of the horses’ deaths related to a bulk order of feed and has opened an investigation.

“An inspector visited the Beutler and Son site on behalf of the department on Monday, August 26, and learned that the feed originated in Kansas,” according to the statement. “The ODAFF inspector collected a feed sample which is being analyzed in two state-certified laboratories.”

The department said it is working with the Kansas Department of Agriculture to investigate the company that provided the feed.

“We have initiated an investigation which includes labeling procedures, operating procedures and a review of their records to ensure the appropriate protocols were followed” in producing and shipping the feed to Oklahoma, said Kansas agriculture spokesperson Jamie Stewart.

The company that provided the feed has not been identified because of the ongoing investigation, Stewart said.

Dr. Gregg VeneKlasen, of the Timber Creek Veterinary Hospital, the Beutlers’ veterinarian, declined to comment on the deaths other than to call it a “tragedy.”

Beutler and Son was founded in 1929 as Beutler Brothers near Elk City, about 105 miles (169 kilometers) west of Oklahoma City, and provides stock for rodeos, including the National Finals Rodeo.

The company is providing the majority of stock for the Elk City Rodeo starting Friday night, according to Elk City Rodeo board member Randy Hargis, who said the events include bareback horse riding, saddle bronc riding, bull riding and steer wrestling.

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Namibia, facing drought, plans to kill elephants for meat

The southern African nation of Namibia is planning to butcher hundreds of its most majestic animals to feed some of the 1.4 million people – nearly half the country – who are in a hunger crisis amid the worst drought in a century.

The plan, under which the country will kill 723 wild animals, including 83 elephants, to feed people, is “necessary” and “in line with our constitutional mandate where our natural resources are used for the benefit of Namibian citizens,” the country’s ministry of environment, forestry and tourism said in a news release.

This strategy is not unheard-of. “Well-managed, sustainable harvesting of healthy wild animal populations can be a precious source of food for communities,” Rose Mwebaza, the director of the United Nations Environment Programme’s Africa Office, wrote in an email.

Much of southern Africa is being affected by drought. More than 30 million people across the region are affected, the U.N. World Food Program said in June.

Droughts are common in southern Africa, and the region has experienced several in the past decade, including from 2018 to 2021, Benjamin Suarato, a spokesperson for the U.S. Agency for International Development, said in an email. But this one has been especially devastating and widespread across the region, said Juliane Zeidler, the country director of the World Wildlife Fund in Namibia.

“There is no food,” Zeidler said Thursday. “There is no food for people and there is no food for animals.”

That’s in large part because of El Niño, a naturally occurring climate pattern that is often associated with warmer, drier weather in parts of the world. It returned last year and “has led to a record-breaking drought with some parts of the region receiving less than half the annual rainfall,” Suarato said.

As the drought dries out staple crops and kills livestock in the region, Namibia is looking past agriculture to its wild animals for food.

In addition to elephants, the country also plans to butcher 300 zebras, 30 hippos, 50 impalas, 60 buffaloes, 100 blue wildebeest and 100 elands (a type of antelope).

The animals are not just being killed for meat. Namibia is also trying to minimize dangerous encounters with humans which, it said, would be expected to increase during the drought as animals and humans sought out water and vegetation. (Though elephants are herbivores, they can be deadly. They killed at least 50 people in Zimbabwe last year, Reuters reported.)

Usually, animals would migrate in cases of severe drought, Zeidler said.

“But as the drought becomes nationwide,” she said, “there is limited space to migrate to.”

The situation is dire. Last week, a United Nations spokesperson said that 84% of Namibia’s food resources were “already exhausted.”

And this is also a particularly tough time of year.

The U.S. aid agency, which announced an additional $4.9 million in humanitarian assistance last month, said that July through September is the “peak of the lean season, when food is scarcest.”

Namibia’s turn to wild game is nothing new. People in the region eat at least some of the animals listed in the environmental ministry’s cull list, like zebra, blue wildebeest and impala, according to a recent Namibian government report on the country’s game meat industry.

Eating wild game is common across the world, Mwebaza said, adding that the sustainable consumption of bush meat is allowed under the Convention on Biological Diversity.

“Provided the harvesting of these animals is done using scientifically proven, sustainable methods that consider animal welfare and are in line with both domestic and international commitments and legislation, there should be no cause for concern,” Mwebaza wrote.

Already, at least 157 animals have been killed, and the ministry said that their carcasses have yielded about 63 tons of meat.

Namibian officials say that they also hope to mitigate the effect of the drought on wildlife, saying that the hunt would focus on places where animals are taxing the water and grazing resources.

Elephants, which can stand more than 13 feet tall and weigh more than 13,000 pounds, consume an especially large amount of those resources. They can eat, on average, about 300 pounds of vegetation a day, Zeidler said.

Extreme drought killed at least 160 elephants in Zimbabwe’s largest national park by January and 300 elephants in Botswana last year, according to Reuters. WWF Namibia is working to raise funds to get water to elephants and other species in several national parks.

A large conservation reserve across Namibia and four other southern African countries includes the world’s largest population of African savanna elephants, which are endangered and whose population has more than halved over the last three generations. But in this reserve in recent years, the elephant population was broadly stable, at more than 227,000 elephants, according to a 2022 survey.

But now, with the severe drought, those populations are under threat, and sometimes moving closer to human civilizations.

“Sometimes, you become victim to your own success,” Zeidler said. “In years and situations of harshness, it’s a bit more difficult to deal, then, with these human-wildlife conflicts.”

This article originally appeared in The New York Times .

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