written by | October 11, 2021

Definitive Guide To Start An Animal Feed Business Plan


India is the largest producer of milk products in the world. We Indians have a long history of obtaining milk locally but now this has become a huge industry where around o 1,23,877 million tonnes of dairy valued at s 2,700 crores was exported according to the Ministry of Animal Husbandry, Dairying and Fisheries in FY19. Since the method to obtain milk in our country is largely traditional, there are a great number of cattle present. even in the meat industry, India has a vast resource of livestock and poultry about 65.1 million sheep, 135.1 million goats, and about 10.3 million pigs as per the 19th Livestock census. As these animals provide us with the requirement of milk and food, they also need to have good nutritional food, to grow and give good results. For that, the animal feed businesses and manufacturers are present, who integrate the right nutrition for the given animal builds a balanced diet for them. The animal feed market in India, in 2018 was 400.5 billion INR. The market is projected to grow to almost 900 billion INR by 2024, with a CAGR growth of 14.3 percent. India is currently one of the fastest-growing animal feed markets in the world. As there is a great profit return, the production cost is less and the demand will never drop, many small scale businessmen have tried their hand in this business and have found success. Setting up an animal feed business is not a tough job. It has great return benefits.

If you interested in starting an animal feed business, let’s take a look at a few things this business demands:

Create a Plan

Decide beforehand what kind of Animal feed business you want to open and what will be its size. With that decide what will be your reach. If you want an offline store or you are willing to deliver to the farms? If it is an offline store, what is the delivery boundary, or is only available for pick-ups. What storage area you are going to keep your goods in, and what will be your area of service.

Make a plan for what is going to be the size of your business at first. The growth will only follow if you thrive in the market and the animal feed business needs investment and time as the goods which are sold and used in an animal feed are perishable and comes with an expiry date. One should always be ready for bad days and thus also take care of the amount that is produced.


The location of your animal feed business matters a lot. Try to keep your shop away from a place where there are already several stores available. Open an animal feed business in an area where there are farms available so even if there are competitors around, you will always have people buying from you. Buy or rent a space that is big enough to equip all your equipment and has storage space for your raw material. 

Permits and Licenses

Taking permission to open an animal feed business is of prime importance. To open any food-related store, you have to take many approvals from the government and undergo many tests to get a license to set up an animal feed business. Firstly, you will have to take permission from the landlord (if your place is rented) about making the use of space commercially as you will be taxed on that according to commercial regulations. Then for setting up the animal feed business you need to apply for around four-five licenses. This includes the GST registration, the FSSAI License, the Fire License, Local Municipal Corporation Health License, etc. Make sure you are ready with all the paperwork and to take multiple rounds of government offices, beforehand!

Decide the products

This always has a scope of improvement but decide what are the animals you’ll be keeping feed for. Will it be only for cattle? Or for house dogs or will it have varieties for all the pet animals. Do the research and arrange for products. The range you decide should interest the buyers.

Get the right distributor

It is a prerequisite. You cannot have an animal feed business without having a distributor who provides you with the products. So, make a list of the items that you will be selling. Remember, your product availability and variety are not something that you can compromise on. Your customers should not go empty-handed just because your stock was finished.

Get the Manpower

The animal feed business is not just a business for profit, like a Kirana store, you’ll be providing food for animals and hold the responsibility to keep them healthy. If you are making the animal feed understand the procedure and do not compromise on the quality and nutrition of the food. The more variety you have, you more popular you will be. Along with that, have in-house staff that will carry out tasks like serving, billing, loading, shifting, etc. Once you have a store and you desire to build it bigger, have a trusted group of people who will help you on each level as this is not a task that can be handled alone. 

Along with the in-house staff, if you are opening your horizon for delivery service, have delivery persons ready to go who can handle your animal feeds with care and reach the destination on time. Build a team you can trust!

Understand your customer

Focus on the needs of your customers. Follow the pattern of what are the products which are demanded by them the most and keep in mind the variety of products they would like to have. Keep the stocks up and the quality of your products intact. Provide them with the service they demand and listen to their queries and concerns. In the Animal feed business people don’t shy away from trying a new flavor so go overboard if you are one who wants to sell them, make sure some prospects will be willing to buy them too, or else you’ll never be able to gain profit.

Social Media and Marketing

Putting up pages on Facebook and Instagram and, developing a strong SEO, and investing in marketing offline can bring great audience attraction to your animal feed business. Putting up ads with discounts and amazing offers are always a plus. Along with online, spending on offline methods to propagate business is necessary. Go old school and hand our pamphlet whenever a customer arrives. Since you have an offline store and most customers will save your number for future reference, you can invest in WhatsApp Business and use its marketing tools to propagate your business. It is convenient to use and digitally provides a personal touch as the medium is one to one messaging which has become one of the best provisions of converting prospects to customers. Remember to greet them nicely and make them feel important.

Starting any business takes a good amount of planning. If you want your new business to succeed, understand the risks that come with entrepreneurship. It often takes a few years to get a business off the ground even with the best-laid business plan and advanced marketing. To open any business, one should be ready to work hard and show a lot of perseverance and determination. Any business will have good and bad days but it depends on the owner how they want to go about it. All the best

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