How To Start Livestock Feeds Production Business in Nigeria 2019/2020
How To Start Livestock Feeds Production Business in Nigeria 2019/2020
- 1 How To Start Livestock Feeds Production Business in Nigeria 2019/2020
- 1.1 Just Before You Start This Business
- 1.2 Livestock Feed – Meaning and Types
- 1.3 Profitability
- 1.4 Market Structure/Demand Analysis
- 1.5 How To Start Livestock Feeds Production Business in Nigeria
- 1.5.1 Get Professional Training on Livestock Feed Production
- 1.5.2 You can get these skills, training, and experience in many ways such as:
- 1.5.3 Get a Good Business Plan
- 1.5.4 Do Proper Feasibility Study/Research
- 1.5.5 Get The Needed Finance
- 1.5.6 License/permit
- 1.5.7 Tools/Equipment Needed
- 1.5.8 Ingredients Required
- 1.5.9 Choose A Suitable Business Location
- 1.5.10 Packaging and Pricing
- 1.5.11 Business Management
- 1.5.12 Staffing
- 1.5.13 Marketing
- 1.5.14 Advertising Strategies
- 1.5.15 Productivities/Sustainability Tips
- 1.6 Other Amazing Business You Can venture Into Today
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Livestock refers to farm animals which are raised for meat, milk, eggs, fur, leather, wool, etc. and also, for labor. In Nigeria, the popular livestock we know includes cattle, goat, guinea pig, horse, pig, sheep etc. Other kinds of livestock include Addax, Camel, Bison, Deer, Donkey Elk, Mule, Moose, etc. Now, just as it is with humans, livestock to need food to the survival and also provide us with all the benefits just mentioned.
Consequently, the modern animal farming system in Nigeria unlike the old farming systems we had requires that farm animals including livestock be kept in an enclosure where they can be nourished with formulated feed for proper growth and development.
This drives the need for more livestock feeds to be produced to cater for the increasing food demand by these farm animals. Therefore, taking to livestock feed production business in Nigeria is a high profiteering endeavour as formulated feed has been noted to have an upper-hand over alternative natural feeds sources such as forages and hay.
Just Before You Start This Business
When livestock properly feeds, they grow rapidly and produce enough livestock products such as milk, eggs, meat, skin, and manure etc. Farmers love to buy from livestock feed producers (brands) which sell only highly-nutritious livestock feeds.
Therefore, to make continuous sales and profits from this business, it is necessary that you produce high-quality livestock feeds. This article details how to go about this – the procedures, knowledge, how to go about it, raw materials, machinery, suppliers etc.
Livestock Feed – Meaning and Types
Livestock feeds are the food used for feeding livestock, be they poultry, fishes, snails, livestock, etc. that are kept in enclosure e.g. kept in the husbandry or pond for small scale or large scale consumption.
These feeds are produced or formulated artificially using a combination of certain elements like carbohydrate, protein, vitamins, and minerals that will help nourish livestock. There are many types of livestock feed, depending on the type of livestock to be fed. Generally, livestock feeds can come in the form of growers, layers, abstainers, etc.
Livestock feeds production is a very profitable business due to several reasons. First, the demand for livestock feeds in Nigeria is high due to the fact that, farmers who deal on livestock production cannot do without feeding their livestock except they want to go out of business.
The cost of producing a bag of livestock feed say for one bag of pig feeds is N2800/1bag and the selling price is N4000/1bag. The profit made from one bag is N1200/1bag. Therefore if you can produce 100bags/day, multiplied by 24 days in a month, then you are sure of making N2,880,000/1month with sound marketing in place.
Market Structure/Demand Analysis
No one can stay without food. The same applies to livestock. Food is the core factor of growth for every living creature. Hence, the demand for livestock feed is very high in Nigeria because the business is rampant and its reward is lucrative.
More so, you can start a small scale livestock feed production in Nigeria without regrets because it is very certain you will make enough cash doing the business. However, there is relatively high completion in this business too. But the quality of your product will definitely speak for you. Therefore, you should not be bothered with the issue of competition.
How To Start Livestock Feeds Production Business in Nigeria
Below is some basic requirement for starting a small scale livestock feeds production business in Nigeria.
Get Professional Training on Livestock Feed Production
Before you start livestock feed production business, you should acquire valuable skills in feeds formulation and marketing. These will largely determine your success in the feed production business.
If the feeds you produce are not properly formulated due to say, improper mixing of the right combination of nutrients needed, your customers may stop patronizing you. Additionally, you must add some creativity to your marketing to get more customers and make more sales. These you cannot know just like that. You need to be schooled or trained in it.
The training will avail you the information about the nutritional needs of different livestock. For example, the combination for pig feeds is different from that of cattle, likewise those of other livestock. This is where you need the assistance of a livestock nutritionist to help you come up with the right formula.
You can get these skills, training, and experience in many ways such as:
- Enrolling in an agricultural college in Nigeria, studying Agricultural science, Agriculture, and Extension, or a related course(s) in any of the recognized Universities, colleges or polytechnics in Nigeria is one way to get these skills.
- Working as an apprentice or farm assistant in the livestock production section of a standard farm under close supervision for at least 2 years.
- Working in an animal feed production company. By and large, in two years, you would have known the ins-and-outs of animal feed production. At the end of any of these programmes or training, you will be issued a certificate to attest to your competence and professionalism.
At the end of your training, you will be able to decide where exactly you will specialize in the business.
Get a Good Business Plan
It is important to have a business plan. If not for anything, it will serve as a blueprint and future guide for the business, its own and the working team. This will help in directing the affairs of the business; hence it should state clearly the mission and vision as a well as the values the business, staffing, code of conduct etc.
A feed production business plan will provide a template which investors can look upon to see how profitable the business is and if it is worth investing in.
Do Proper Feasibility Study/Research
For you to become successful in livestock feeds production business you do not have to rely on your knowledge or professionalism alone. You have to make research on what the real market demand is. Try to find out the exact or close answers to what people really want, how much it will cost you to acquire all the necessary tools needed for this business, the most suitable location for the business etc.
Get The Needed Finance
To start livestock feeds production in Nigeria, you will need about N1, 400,000 to purchase tools/equipment (see some listed below), N250, 000 to buy initial raw materials, and about N150, 000 for logistics, etc. where you already have land. So, the above figure does not include the cost of renting a factory space as this depends on your location and the size of space you desire. So, roughly, you need about N2,500,000 to start the business.
You need more than just a certificate to run a livestock feeds production business in Nigeria because it is a business that has to do with food and life. So, some of the agencies in Nigeria you’ll need to obtain licenses from including National Agency for Food, Drug Administration and Control (NAFDAC), Standards Organization of Nigeria (SON), the Ministry of Health etc.
Also, you need to register the business with the Corporate Affairs Commission (CAC). Being e corporate entity, your business must be properly registered as to avoid embarrassment, non-patronage, and legal action. Definitely, this step will differentiate you from other livestock feeds producers who may never have such idea.
These are the equipment you would need to start a full livestock feed production on your own:
- Wet and dry
- Mixers Wet/dry
- Weighing Scales
- Steam boiler
- Sealers and Bag sewers
- Standby power generator
- Packaging bags.
If you find this hard to come by, no problem, some effective custom made are readily available to choose from for your business and its size.
You need to purchase the following ingredients for production:
- Maize (Corn)
- Cassava grits (for energy)
- Wheat offal (source of protein
- Noodle wastes (for carbohydrate and Proteins)
- Soybean meal
- Fish meals
- Palm kernel cake
- Oyster shells
- Bone meals
- Common Salt
Choose A Suitable Business Location
To be successful in the livestock feed production business, the location of the business is very paramount. Since is a factory, you need a location far from residential areas especially considering the fact that a factory such as this will produce unpleasant smell which is tantamount to the health and convenience of the immediate environment.
However, the factory should be positioned either in an area with an abundant supply of raw materials or in such an area with easy access to the raw materials, even if it is imported from overseas.
Packaging and Pricing
As a livestock feed producer, you decide on how much you sell a bag of your feed to your customers. This is so important because the size of your feeds either holds or scares your customers away. Give them various sizes to choose from and make sure to stick with what you are known for.
Here, it depends on the kind of production you want to venture into, if it is a small scale, then you do not need to employ people. But if you are going on a large scale production, then you need to employ staffs.
It is clear that you cannot run the business alone especially if it is a large scale production you want to do. Therefore, you need to recruit tested and efficient hands to assist you because this business is very sensitive. You do not have to employ shady people or those with shady characters
This is an area that every aspiring feed producers fear most and they are right because they can only make money by having their products sold repeatedly. The only solution to this is to market, market and market! Have enough samples with you any time you are out there and always leave your means of contacts with your prospective customers.
Another means of progressing in Livestock feed production business is your advertising strategies. You can market your product on social media, Radio station, TV stations and so on. You can go as far as producing fliers to people on discount on each purchase.
What differentiates your livestock feeds production business from every other one is the quality of your product(s). If you are supplying companies or any organization, you really need to be at your best in order to sustain your services to those clients.
Your feeds must be at its peak so that your customers will really patronize your business. This is so important because the quality and size of your feeds either holds or scares your customers away. Give them various sizes to choose from and ensure the quality of what you give is high. Finally, make sure you stick with what you are known for.
In this article, I discussed the basics of successful in livestock feed production business in Nigeria. I discussed how to obtain the needed skills, market viability, business plan and market feasibility, financing etc. You can affirm that livestock feeds production business is a very high profiting business in Nigeria. Therefore, wait no further, make plans to start the business today.
That’s the much we can take on the topic “How To Start Livestock Feeds Production Business in Nigeria 2019/2020”.
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