Poultry products such as eggs and meat contribute to a significant percentage of the world’s food demand. Chicken feed generally refers to the food of chickens, ducks, pigeons, quails, and so on. Usually, when they are free, they arrange their own food. But when they are raised commercially, they need chicken feed as their food. Because, commercial chicken feed is rich in protein, minerals, vitamins, etc., they grow quickly within a certain period. Therefore, the demand for poultry products is driving the growth of the chicken feed manufacturing industry, driven by the increase in poultry farming. So, if you are looking for a sustainable business idea, this could be your golden opportunity. In this article, we will see how to start a chicken feed manufacturing business, which has huge potential for success. Stay tuned till the end for valuable insights!
Table of Contents
Market Size of Chicken Feed
The poultry industry in India is growing at a rapid pace, with a market size of over ₹1.75 lakh crores and increasing demand for quality poultry feed. Yes, India is among the world’s leading countries in chicken feed production and has shown a steady increase in production. In India, with over 850 million broilers and layers produced annually, the opportunity for feed supply is immense. From small-scale poultry farms to large-scale operations, there is a steady demand for feed products. Therefore, this ensures a steady market even for new businesses. In particular, the demand for organic and cost-effective feed adds another profitable dimension. Therefore, starting a chicken feed manufacturing business is a great and profitable idea.
Do Research for Business
Start by researching your target market, competitors, and potential customers, including local poultry farms and wholesalers. So, first, the main point of research is how many poultry farms are there in your area. And what is the number of birds on those small and large farms? Where do the owners of these farms currently buy their chicken feed from and what kind of feed do they buy? Do they pay any transportation fees to the feed supplier when buying feed or do they bear it themselves? By considering and analyzing all these things, the entrepreneur can see a clear picture of his future business. With this picture as a focal point, the entrepreneur can determine how profitable or loss-making this business will be for him.
Training for Chicken feed Business
Starting a chicken feed manufacturing business requires some basic knowledge of nutrition, feed formulations, and machinery so that he can produce good quality feed in his plant. Therefore, before setting up a chicken feed manufacturing unit, it becomes very important to undergo proper training to do this business. In India, many central and state governments Animal Husbandry Departments and many private training centers offer short-term courses. Here you can learn how to prepare feed for all types of chickens, including broilers. Alternatively, online courses from platforms like Udemy are a great option for beginners. Therefore, investing time in proper training will give you an edge in producing high-quality products.
Necessary licenses and registrations
Now if the entrepreneur has decided to set up a chicken feed plant, he needs to register his business. A license is also required to set up the plant. Therefore, the entrepreneur needs to get FSSAI registration, GST registration and factory license. In addition, he needs to get a pollution control certificate and comply with animal feed safety regulations. Consult local authorities or hire a legal advisor to guide you through the process. Having your documents in place ensures hassle-free operations and builds customer trust.
Choose the location for Business
To start this business, one should choose a location where the machinery and equipment can be easily installed and used. Therefore, make sure that a small-scale unit has at least 1,000 to 2,000 square feet of space. Apart from this, the entrepreneur will also need storage for raw materials and finished goods. A small office will be required to accommodate customers and handle billing related work. While choosing a location, the entrepreneur should consider the transportation system, electricity, and availability of staff or laborers. Choose a site near poultry farms or agricultural areas to reduce transportation costs.
Investment for Business
Generally, this type of manufacturing business requires fixed and working capital. Fixed capital is a one-time investment in machinery and land. Working capital includes staff, daily expenses, raw materials, and transportation. Also, the investment for this chicken feed manufacturing business varies depending on the scale of the operation. That is, for a small-scale setup, you may need an investment of ₹5 to 10 lakhs, while for a medium to large-scale plant, you may need an investment of ₹25 lakhs or more. Therefore, look for government schemes or MSME loans to reduce your financial burden. With proper planning, your investment can yield impressive returns in a few years.
Raw Material for Poultry Feed
The key raw materials for chicken feed include maize, soybean meal, rice bran, fish meal, and vitamins. Using high-quality raw materials is crucial to producing nutritious and cost-effective feed for chickens. Therefore, partner with local farmers or wholesalers to ensure a stable supply. Similarly, explore organic options if you want to target niche markets. Lastly, proper storage facilities are essential to maintain the freshness of the raw materials.
Machines for Chicken feed production
Chicken feed production requires a set of machinery to efficiently produce quality feed. These include a feed grinder to grind the raw materials into uniform size, a mixer to mix the ingredients in the right proportion, and a pellet mill to compress the mixture into feed pellets. Similarly, a cooling system is essential for cooling the pellets, preserving quality, and properly measuring and packing the final product. However, these machines can be purchased from sites like Indiamart or directly from the manufacturers. It is always wise to use energy-saving machines to reduce overall costs.
Chicken Feed Production Process
The feed manufacturing process involves grinding raw materials, mixing them to the right proportions, pelletizing, cooling, and packaging. First, a mixture of raw materials including maize, soybean meal and rice bran is ground into a fine powder using a feed mill. Next, these ingredients are mixed in the right amounts in a feed mixture for better nutritional value. Now the mixture is then passed through a pellet mill, where it is compressed into pellets or crumbles, making it easier for poultry to consume. After pelletizing, the feed is cooled to remove excess moisture and ensure durability. In the last process, the feed is weighed, packed and stored before being transported to various poultry companies.
Target Customers for Sale
To sell his product in the markets, the entrepreneur will have to prepare a marketing strategy. Apart from this, packaging and branding will also help the entrepreneur to grow his business. In the initial days, it would be better for the entrepreneur to focus on the demands of the poultry farms established in his area. So, you can also target independent poultry farmers and cooperatives. Build a network with local farmers and attend agricultural expos to promote your products. Offering competitive prices and ensuring timely delivery will help you gain loyal customers. Marketing through social media platforms can further boost your reach.
Profits from Business
The profit margin of chicken feed depends on the size of your product and market, which is approximately 20% to 30%. However, a small-scale unit can earn anywhere from ₹ 50,000/- to ₹ 1, 00,000/- per month for a small-scale unit and a large-scale unit will earn more. In turn, the production of high-quality feed and low operational costs generally ensure the growth of the brand and the business. Due to this, it can be clearly stated that this type of venture will be profitable in the long run as long as the demand remains stable.
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