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.
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.
