animal feed production business plan

HOME > useful links > Animal Feed Mill Business Startup Guide

The feed industry is quite competitive, established players enjoy economies of scale and if you are starting for animal feed production business, you need a thoroughly analysed plan to earn you an advantage for a good initial market share. This next article will provide every animal feed mill investor with some viable advice to help with business success.

Cost of Animal Feed Production Business Plan

Why starting animal feed production business plan?

The potential of the animal feed processing market is expanding as the global population continues to grow and the demand for meat and dairy products increases. According to Reports and Data, the global animal feed production market is expected to reach USD 536 billion by 2028, growing at an estimated CAGR of 4.3%. This reflects the strong for-profit nature of the market and offers vast business opportunities for animal feed mill plant investors.

Market Profitability in Animal Feed Industry

Feed processing is the foundation of the farming industry and directly affects the production of meat, dairy products and eggs. Investing in efficient animal feed processing machines can significantly increase productivity, reduce costs and improve product quality.

Cost Efficiency of Raw Material

The use of efficient feed making machines reduces the waste of raw materials and improves the nutritional value of the feed, thus increasing the daily weight gain of the animals. This means farmers can produce more meat and dairy products in the same amount of time.

Diversification of Animal Feed Products

There is a wide range of animal feed products, which are mainly categorized into pellet feeds, powder feeds, and liquid feeds. Pellet feed has a high market demand due to its balanced nutritional composition and easy storage and transportation. In addition, functional feeds (e.g. adding probiotics, enzymes, etc.) are gradually gaining favor among farmers, opening up new profit space.

Long-term Investment Returns of Animal Feed Mill

According to market research, the initial investment in updating and upgrading equipment can generally be recovered within 3 to 5 years, after which higher profitability can be enjoyed. In an increasingly competitive market, the ability to keep production costs down and quality upgraded will have a direct impact on the profitability of animal feed factories.

Challenges Faced by Animal Feed Processing Plants

Despite the promising market outlook, the animal feed mill production business also faces several challenges:

Raw Material Price Volatility: The prices of major raw materials for animal feed, such as corn, soybeans and fishmeal, are volatile, which has a considerable impact on animal feed production costs. According to the USDA, the prices of corn and soybeans are expected to fluctuate between US$200-250 per ton in 2024, which directly affects the cost and profitability of animal feed plant production.
Fierce Market Competition: There are many competitors in the feed manufacturing market, especially in mature markets. Commercial animal feed companies need to continuously research and develop new feed formulations, optimize feed production processes and provide value-added services.
Global Supply Chain Instability: Uncertainty in international trade policies and the complexity of global supply chains may affect the availability and cost of raw materials. For instance, the global supply chain disruptions in 2023 had a noticeable impact on feed plant manufacturers, leading to raw material shortages and rising costs.

6 Factors for Starting Animal Feed Production Business Plan

1. Target market

Analyze the potential of your chosen animal feed production line thoroughly. You need to narrow down to a specific market, manufacturing feeds for all animals may not be a good idea, production methods for fish feeds and pet feeds is no where close to that of poultry, pig and cattle feeds. To maximize success, focus on a specific animal feed segment rather than attempting to serve all markets. Specializing allows for more tailored production methods and equipment, meeting the distinct nutritional needs and quality standards of each animal type effectively.

2. Equipment and Personnel

The investment animal feed production business plan will focus on the plant and equipment as the biggest expenditure in the initial costs, you need to invest in high quality equipment to achieve quality feeds. Before setting a budget of feed mill and shopping for animal feed plant machines, you may need the advice of a feed plant engineering expert.

3. Location

A good animal feed production business plan locates the feed production plant closest to the customers. You also want your site to be as close to your suppliers as possible, the further you move from your customers the higher your distribution cost and advertising cost.

4. Raw Materials and Suppliers

It is important to plan for bulk buying in harvest seasons for plant based materials for the best prices, in your business plan, you need to consider your material source and possible suppliers after your market evaluation.

5. Feed Formula

Low quality feeds in any market will push you out of business or may cause legal huddles for your startup, a strong formula for feeds will put a small budget for professional opinion in the setting up of the formula and employee training,

Animal feed production process

From the animal feed mill layout and site selection to the design of the animal feed processing equipment, the installation process, and the experience of a successful feed processing plant project, it's all critical. An experienced feed mill engineering specialist can provide you with comprehensive support and services to ensure that every aspect is in line with best practice, helping you to enter the feed processing market and succeed. As an animal feed mill machine supplier with nearly 30 years' experience, ABC Machinery can customize a solution for you, whether you're a first-time investor or looking to upgrade. Contact us today for a free quote and professional consultation, and let us help your animal feed production business succeed!

ABC Machinery: Your Risk Management Partner for Animal Feed Plant Projects

With 25 years of industry experience, our company is dedicated to helping animal feed plant investors avoid risk. We provide animal feed processing equipment that undergoes strict quality control and EU CE certification to ensure that each feed production machine performs reliably and minimizes the risk of production interruption. Our R&D team continues to innovate with thicker steel plate bodies and high-efficiency pure copper core motors to improve equipment stability and energy efficiency.

Best Animal Feed Pellet Machine for Sale

We also offer customization services, including geographic, process and scale customization, to ensure that animal feed production lines are flexible and adaptable to market changes. At the same time, we provide comprehensive technical support and lifelong services, from market analysis to production training, to help investors master advanced technology and improve management efficiency.

Complete Animal Feed Pellet Production Line for Sale

With our integrated feed manufacturing solutions, investors can focus on market development and brand building without worrying about the stability and efficiency of the feed processing line. Our goal is to help feed business investors minimize risk and maximize return on investment through professional services and technical support. Contact us now and let's start the road to a profitable feed production business together.

You may be interested in:

Get In touch Now!