A business that provides a solution to an issue always has a great chance of development. Talking about the issue of feeding quality food to animals, you can transform this need into a solid business opportunity. If you've got a cattle feed business plan in your mind, then it's time to cherish all possibilities of transforming this plan into a reality.
Now, if you're wondering how to start a cattle feed business in India, this is your time to read this guide.
Did you know?
Under the NLMS (National Livestock Mission Scheme), Central Government offers a 50% capital subsidy (up to ₹50 lakhs maximum) to the beneficiaries for starting up fodder/feed, hay/silage, fodder block making, Entire Mixed Ration (TMR) or facilities for fodder storage.
Learn About the Licences Required for Cattle Feed Manufacturing in India
How to Start Cattle Feed Business in India?
1. Cattle & Poultry Feed Manufacturing Plant
It is possible to start your manufacturing company by acquiring a space that measures a minimum of 600 sq ft. Additionally, it would help if you offered utilities such as electricity and water. The essential equipment is:
- Ribbon blender 1MT capacity, reduction gear, the motor with starter and gearbox.
- Disintegrator includes a starter, V belt stand, 1MT capacity motor pulleys, etc.
- Gyratory sifter equipped with extra sieves, motor starter, etc.
- Miscellaneous equipment.
- Bag sealing machine.
- Platform weighing machine.
- Testing equipment.
It is important to understand the cattle & poultry feed manufacturing process. The manufacturing process for feed for cattle/poultry is quite easy, and it also reduces the size and mixes different ingredients according to the formula.
Also Read: How to Start a Poultry Farm Business?
2. Poultry Feed
The first step to succeeding in the cattle feed business is to create healthy poultry feed, and you must pick the ingredients with the proper proportion. Then, you can pass them through a pulveriser or disintegrator to shrink the dimensions of particles to the needed mesh size. Then weigh the various material powders according to the formula.
Place them in an abrasive blender to ensure homogeneous mixing. Then, add vitamins and minerals and molasses at this stage. Once the mix is uniform, extrude the ingredients to form a pallet or the final product. The result is then taken as-is and packaged in gunny bags.
Typically, there are five different kinds of poultry feed on the market. They are:
- Chick mash
- Layer mash
- Grower mash
- Broiler finisher mash
- Broiler starter mash
You will also need to keep mixing the formulas for different outcomes and products.
3. Cattle Feed
The cattle feed heavily depends on the variety of cows, milk ration, lactation, etc. It is equally important to consider the supply of essential raw materials and their current prices when making the cattle feed.
The Importance of Nutrient Intake for Cattle
With the help of using nutrients for cattle, you can reap maximum profits. A cattle's diet should contain the necessary nutrients in proper proportions and quantities. The essential nutrients for cattle are vital for a healthy diet of cattle, and if you feed them perfectly, they can provide these essential nutrients.
However, to understand the way feeds are used, it is essential to know the digestive process that animals go through. Cattle require proper nutrition to maintain better wellness and higher milk yield. Also, a few vital feed ingredients can be a fantastic nutrient source for cattle to boost their growth.
The most important ingredients in the cattle feed business include soya beans, wheat, corn and many other grains. Grains are the top cattle feed since they have a high nutritional value like proteins, vitamins, carbohydrates, fibre and minerals. It is generally an easily digestible source of nutrients added to feed for cattle ingredients to ensure a healthy digestion process. The proper intake of these feed ingredients can help maintain well-being and promote a higher quantity of milk. These ingredients also aid in the physical growth of cattle.
Raw Materials Needed for Cattle & Poultry Feed Manufacturing
1. Cattle Feeding
Cattle feed includes wheat bran, extraction of groundnut (cake), rice bran extract, maise, ground wheat, cottonseed bran, cottonseed molasses, vitamin mix, salt mineral mix, etc.
2. Poultry Feed
Poultry feed includes maise, rice germ, rice polish, sunflower cake, groundnut alfalfa meal, ground wheat molasses, shell grit, vitamin mix and mineral mixture. Every type of feed needs a specific mixing formula, which creates a packaged feed that is unique from the homemade feed. When it comes to poultry and cattle production of feed, the quality of the feed is the most important factor. Therefore, you must maintain the top quality of the product for long-term benefits from this industry.
Also Read: Best Small Business Ideas for Rural Areas, Indian Villages and Small Towns
Investment in an Animal Feed Manufacturing Business
There are two kinds of capital to run a feed production company: Working capital and fixed capital.
- Working capital is to pay salary and daily expenses, raw materials storage, transport and more. You will need between ₹7-15 lakhs for starting your business.
- Fixed capital is a one-time investment needed to produce the items. It's for the manufacture of plant setup, machines and various similar expenditures.
Put good money into buying the supplier's best blender and other equipment. Then, you'll require a steady supply of ingredients for the production of the feed. If you're searching for ways to begin a business for cattle feed in India, create an inventory of the equipment necessary to manufacture the feed.
Be aware that the above ballpark figure refers to the supplies of materials equipment and does not include the location of the plant and the space where you will establish your company.
Typically, you can obtain the land for less price for the plant's setup in rural regions. The estimated value of ₹5 lakhs will be needed to construct your manufacturing facility on the property. The central and state governments offer various concessions to set up these factories. If you lack investment, there are types of loans available which prove to be highly beneficial in starting a business.
What Are the Necessary Legal Registrations and Permissions?
The development of the animal feed industry has been growing rapidly. To start an animal feed manufacturing company, you will need to get the following legal registrations and permits.
- First, you must get a trade permit.
- In addition, you have to get a NOC (No Opinion Certificate) through the State PCB (Pollution Control Board).
- Determine whether VAT is required or not.
- Register your company.
- Make an application to MSME for completing Udyog Aadhaar Online registration.
- Submit an application to the BIS Certification (Bureau of Standards) for the ISI mark.
- Register your trademark, and safeguard your brand's name.
1. Do a Thorough Market Research
Conduct market research on the livestock in your region, and plan to offer your idea to investors. Explain the distinctiveness of your strategy in comparison to other players. Choose the most appealing area to market your plan and calculate your revenue projections, setting your initial market share.
2. Personnel and Equipment
The business of cattle feed production investment focuses on equipment for business. Additionally, you can consider purchasing custom-designed equipment for your requirements, which calls for more investment. You can also seek professional advice regarding the equipment for the feed plant you require before establishing your budget.
The location of the cattle feed business plan should be closest to clients. In addition, you need your business to be as near to the supplier as you can. The further away you are from your clients, the more you'll have to pay your advertising and delivery costs.
4. Supply and Raw Material
It is crucial to consider buying in bulk during the harvest season to purchase plant-based materials at the highest prices. Include this in your business plan. You need to describe the source of the material and possible suppliers following the market assessment.
If you successfully set up a cattle feed manufacturing plant, you won't have to do much hassle finding ways to earn through it. You may get clients walking in by doing just a bit of local-level advertising. Most importantly, cattle feed is a continuous requirement, which means you won't have to make continuous attempts to expand your client base to expand your income.
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