How to Create Streams of Income from Feed Mill

The agriculture sector is a driving force in most countries. It supports the local economy and adds to a country’s GDP. It is a good employer of skilled and unskilled labor contributing 1/3 the labor force.

In rural areas it is the main source of livelihood and of great importance to the local community. Third world countries have failed to utilize the great potential to transform the economy.

Farming is still rural based with smallholder farms providing 90% of produce. An important sector agriculture is the feed mill. Feed mill business is very lucrative and capital intensive. An entrepreneur needs determination, courage and tenacity.

Challenges

There are different challenges that contribute to poor harvest and slow growth of the sector. Challenges include poor government intervention, climatic change, and lack of fertilizer.

Others include reliance on manual labor, high energy prices. Funding is a major hindrance to the development of the sector. This is because there is a huge financial gap in the industry.

The rural farmers are poor illiterates with no knowledge of modern trends. Other mitigating factors are lack of adequate water supply, inadequate utilities, unable to afford farming machinery.

•         Poor government intervention

•         Climatic change

•         Lack of fertilizer

•         Reliance on manual labor

•         High energy prices

•         Low funding is a major hindrance

•         Rural farmers are poor illiterates

•         No knowledge of modern trends

•         Lack of adequate water supply

•         Inadequate utilities

•         Unable to afford farming machinery

Feed formulation and milling

The primary function of a mill is feed formulate. Feed is an important food for livestock and commercial fish production.

Formulating high quality grain would position the factory for profitability. The cost of the grain should be competitive to meet customers demand.

Funding

Funding is a huge challenge for feed mills. An average feed mill requires about N10 million to operate. To acquire funds use personal savings, partnership of borrow. The loan should be low interest, long termed.

Acquire machinery

The type of machinery will determine the level of production. Purchase high quality machinery and employ highly skilled technician.

Machinery you need are mixers, conveyor. Others include crusher machine, feed mixing machine.

•         Feed mixing machine

•         Crusher machine

•         Mixer

•         Conveyor

Hire professionals

The feed mill business requires skilled professionals. Hire experts in the field to work in the production area.

Source raw material

The source of the raw material would affect the quality of the feed. Buy only quality grains free of insecticides or other preservatives. The main difficulty is the seasonal nature of the raw materials therefore getting the right mix is difficult off season.

Other challenges are fluctuating price of raw material and cost of transportation. Always strive for quality to differentiate your produce. Make sure the feed for the commercial fish farmer or chickens are of high quality.

Types of raw materials

Sourcing the right material is very important. Common ingredients are palm kernel cake, soya beans. Others are limestone, rice grains and maize offal.

•         Palm kernel cake

•         Soya beans

•         Limestone

•         Rice grains

•         Maize offal

Waste management

Waste from the factory on the environment should be minimal. Feed formulation does not generate harmful waste.

Marketing

There is a huge demand for quality feed. Most feed in the market are low quality so good feed easily stands out.

Farmers are ready to pay the extra cost for faster growth of their livestock. A small feed mill can sell an average of 200 bags per day.