Tuesday, 17 June 2014

Starting Sustainable Feed Mill Business

Though there are giants in the feed mill business in Nigeria, there are opportunities for small and medium-scale investors. Investigation reveals that the business is not only sustainable, but also lucrative.

Feed milling is sustainable because livestock farmers, especially in poultry and fishery, spend between 60 and 70 per cent of the cost of production on feeding the animals. By implication, 60 to 70 per cent of the cost goes to the feed millers, among who are small and medium-scale operators.

The miller pays the crop farmer who produces the grains and he also pays other raw material suppliers, keeping the cycle going.

Adequate feeding in intensive livestock production is inevitable to ensure rapid growth rate and high production. Seasonal upsurge in the production of broilers for festive periods also boosts increase in demand for feed. Therefore, the feed miller is assured of ready and steady sales if the feed is balanced and good.

Profitability is also guaranteed in animal feed production because bulk buying of inputs, such as maize, soy meal, among others, commands reasonable discounts, reducing the cost of production.

A feed miller and poultry farmer, Mr Aderemi Olasupo, said feed milling as a business is profitable if staff members are faithful. He emphasised adequate supervision, quality inputs, adequate marketing, bulk buying of materials and honesty as core factors of success in the business. He said his feed mill business generates good returns daily.

Get to know more - http://bit.ly/1qnNKrP

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