Most livestock farmers have one major goal in mind: that their herd is robust so they can be attractive or appealing to buyers as most livestock are sold based on their weights and how healthy they look. For the animals to be healthy, they must feed on good food made with the right ingredients like whole wheat, bone meal, palm kernel cake, oyster shells and a lot of other ingredients.

WHY YOU SHOULD GO INTO LIVESTOCK FEED PRODUCTION

There is an increasing number of investors in the livestock farming business and it gives room for livestock feed production to boom. This is a business that can give an attractive return on investments for very long time, and it is not highly competitive.

Another reason you should  invest in this business is that feeding of the poultry (birds) and other animals accounting  for about 75% of the cost of producing  livestock for sale from day old to maturity (table size). And any attempt to reduce the cost of buying the feed and still maintain a balanced diet will certainly enhance farmer profitability and this will mean that you are in business because they will repeatedly buy from you.

WHO CAN INVEST IN THIS BUSINESS?

It is a business open to everyone and it is not restricted to any class of persons as long as you are determined to embark on it. In fact, the retired, the about to retire, graduates, and NYSC members can embark on this business. You do not need to have a university degree to go into livestock feed production. All you will need is knowledge of livestock feed formula for various stages of feed requirements such as starter, mash, grower, mash and finisher.

You may want to ask how can I get this formula or how can I know how to formulate these feeds? That is not a problem at cash4nija.com, we have a tested chicken and pig production at low cost while ensuring that it is rich and nutritious. Our livestock feed formulas will ensure early growth and maturity of your chicken and animals. You can email us: info@cash4najia.com  or post your enquiry on our facebook page www.facebook.com/cash4naija to know how you can get these formulas.

CAPITAL INVESTMENT

The capital investment for this business is quite affordable. But if you do not have the full capital to start don’t worry I will show you how you can embark on this business and raise the money to buy the required equipment.

Now let me show you how you can start this business even if you do not have the money  to buy the required equipment. let us show you what you should do livestock feed (poultry, piggery, fishery)  production is about the formula, the ingredients you put into and ratio you use. The ingredient is what makes a good animal feed. so what you should do first is you should come up with  unique formula. if getting a unique livestock feed formula is your challenge worry on more, as u can email info@cash4naija.com  to lay your hands on tested livestock feed formula.

After you have gotten your unique formula, you should look for livestock feed producers who have the necessary equipment. Negotiate with them using your unique formula as your bargaining chip. Produce and package your animal feed brand and start marketing and selling them to livestock farmers. Now keep repeating the cycle until you have gathered enough funds to buy the necessary equipment needed to start producing on your own.

Now, for those who already have like the retired and the about to retire or those who are already working and still want to have a multiple stream of income and have enough capital to start, this business is for you.

If you are in this category, here are various steps you need to take to start a livestock feed production business.

1. PURCHASE OF EQUIPMENT

The basic equipment you need to buy are:

1. The hammer mill and mixing machine which cost between N170,000 – N200,000


2. 2 functional weighing scale which cost N3000


3. A shop for production and storage. The cost should be dependent on your location.

1. PURCHASE OF INGREDIENTS

The required ingredients are maize, wheat offal, cassava grits as energy sources, soybean meal, fish meal, palm kernel cake, oyster shells, bone meal as protein and mineral sources and common salt.

3.0  PROFITING FROM LIVESTOCK FEED PRODUCTION BUSINESS

A small scale livestock feed mill has the capacity to produce 100 bags of feeds of 25kg each per day (25kg being the standard commercial measurement). Now imagine your feed mill produces 100bags of 25kg per day and you sell at a customer friendly price of N2, 500 that will be:

N2500*100bags=N250, 000.

Now if the cost of producing a bag is N1,500, then 100 bags will cost N150,000. If you market and sell all in a day, you will be making a profit of N100, 000 in day. If you continue to produce in a month, let say for 20 days that will be N2, 000,000 (two million naira) every month!

CHALLENGES

The major challenge you will likely encounter in livestock feed production business is marketing your manufactured feed to livestock farmers.

If you need further training or education on marketing your products or if you want to be free of the responsibility of marketing your products, you can reach us on info@cash4naija.com . The cash4naija marketing unit can help you with your marketing while you concentrate on your core business of production of livestock feeds. However, we have included a beginners guide to marketing which we earlier posted on our website marketing menu http://www.cash4naija.com/fix/newsview.php?id=78

MARKETING:

When you have produced your feed, you need to package and market it to stores and livestock farmers. The techniques of marketing are very important since the product is not a general purpose product.

You need to do the following:

• Identify your target market. This step is critical in order not to waste advertising funds. Your primary target market include livestock farmers and livestock feeds suppliers and sellers


• Segment your market. This ensures that your marketing drive is systematic and cost effective. Details of how to segment your market can be found in our manual on “How To Market Your Product Effectively”, You can download this eBook from our website www.cash4naija.com via the download menu link.


• Prospecting. This is the process of identifying and meeting the clients within your target market segment. The rule of marketing is that in a properly segmented market, the more prospects you meet the higher your chances of making sales.


• Present to your target market. You must make a convincing presentation. You must emphasize the benefits rather than the features of your products. The details of how to present your product is subject of another article, watch out for the full article on our website www.cash4naija.com via our “marketing” menu link.


• Follow up. This aspect is where many entrepreneurs get it wrong. Once you have identified and presented to your prospective clients, you need to follow up especially if your product is relatively unknown. Research has shown that most clients are unlikely to buy on first contact. In fact you may have to do a presentation up to 7 times to make your sale!


• Sell. This is the climax of the marketing process. If you do everything and you don’t make a sale, then your business is in serious jeopardy. Note that you must ALWAYS make the move to close the sale. Always ask your prospect to buy NOW. Please note that Marketing is not the same thing as selling, Marketing creates a platform for Selling to take place effectively. Selling is part of marketing but marketing is much more than just selling. The difference is well discussed in our eBook “How To Market Your Products Effectively”.


• Keep your Clients for life. This will guarantee the long term success of your business. It is a sum total of all that you do to maintain a RELATIONSHIP with your clients to such an extent that you are their friends more than  a supplier. Remember, nobody passes over a friend to buy a product from a stranger when their friend has the same product in stock and at a reasonable price.

Conclusion

The Business of poultry feed production is in its infancy and the market is an emerging one. If you get in to the business now, you are likely to carve out a profitable niche for yourself if you have a good feeds formula anf adopt effective marketing techniques.