☰
✕

How to Start a Cattle Feed Production Business? [Investment, Tips & More]

OkCredit -

The Cattle feed manufacturing business or the pashu aahar business is an auxiliary service for the primary sector in India. Animal feed is the food item that domestic animals consume in animal husbandry. The commercial production of high-grade cattle feed is a profitable business considering the growth of animal husbandry and the human population that demands more resources. With growing demand, the prices for these fodders will also increase steadily, bringing a profit for the business owners. Hence, the future prospects for this business look good because of the growing demand for animal products. If you are looking to start a cattle feed business, we are here with all the information you need.

Start with a cattle feed business plan that demonstrates the framework of setting up a profitable cattle feed production business. This blog will tell you about the types of fodder prepared on a commercial scale, the equipment and machinery used, and other details regarding starting a small scale business.

How Profitable is the Cattle Feed Production Business?

The major portion of demand comes from established animal husbandries located in all parts of the world. Also, there is a good profit margin for feed production. Hence the cattle feed business in India is one of the profitable new business ideas and one of the best small business ideas that can help you earn decently in future.

1. Investment for Animal Feed Manufacturing Business

You require two types of capital for running any feed production business: fixed capital and working capital. Fixed capital is the one-time investment required to manufacture the products. It is used in machines, set-up plants and similar expenditures. The working capital is required to pay the salaries, daily expenses, raw materials, transportation, storage and more.

You will require approximately 7-15 lakhs to start the business. You will need most of your capital to procure a good quality blender and machines from the vendor. After that, you would need a constant supply of the materials required to make the feed. If you are looking for how to start a cattle feed business in India, make a list of the equipment needed for manufacturing the feed. You should note that the above-mentioned ballpark figure is for the machines and the supply of materials, which excludes your plant location and the area on which the business will be set up. Usually, you can get the land at a lower cost for your plant set-up in rural areas. An estimated amount of 5 lakhs would be required to set up your plant and the manufacturing factory on the land. You can check out various concessions given by the state and central government for setting up such factories.

2. Ways for financing:

Financing is a major challenge for new entrepreneurs in the primary sector. But banks and financial institutions provide loans with the low-interest rate for

3. What are the Machinery and Equipment Required for Production?

Let’s check the major requirements for cattle feed production. These will be included in your cattle feed business plan. You need

  • A Ribbon blender 1 MT capacity with these starters that include motor, starter, pulley, V belt stand coping with the 1 Metric Tonne capacity. Also, buy some spare parts.
  • A platform weighing machine to weigh the products
  • Testing equipment for the machine
  • A disintegrator with a motor, pulley, starter, V belt, and stand
  • Gyratory sifter with motor starter sieve
  • Bag sealing machine
  • Afterwards you need some miscellaneous tools and equipment

Those were the machines required to start the cattle feed manufacturing business. Afterwards, it would be best to have a constant supply of water and electricity to run these machines.

4. What are the Necessary Raw Materials?

The raw materials that would be required to start with your small scale business are as follows:

  • Groundnut extraction
  • Maize
  • Cottonseed
  • Salt
  • Minerals mixture
  • Wheat bran
  • Rice bran extraction
  • Damaged wheat
  • Molasses
  • Calcium carbonate
  • Vitamin mixture

You need to make sure that you provide quality feed to sustain in this business for the long run. Also, know that every different type of feed demands a different mixing formula that you have to know. Hire a feed specialist to cater to this need.

5. Types of Animal Feeds:

It’s necessary to determine the type of feed that you would be producing. Your unique business ideas need to have a proper business plan, to begin with. There are two types of products in the cattle feed business:

  • Fodder: It is pleasant in taste and easy for digestion by the animals. It keeps animals in good health as their natural form consists of fresh nutrients healthy for the animals.
  • Forage: These are the parts of plants that the animals occasionally graze. They are for rumen digestion as they supply the necessary fibres. They are more economical as they can be homegrown and also ensure a diluted nutrient source.

Conclusion

If you are thinking of the best business to start in India, cattle feed manufacturing is one of the best small profitable business ideas for you. With an initial investment of around 7 lakhs, you can start your own cattle feed production business and generate profit. You will need some heavy equipment as a one-time investment and a constant supply of raw materials for manufacturing. Choose your plant location wisely and near your market, which will be farms, husbandaries and rural areas. The quality of the feed with the price tag will be a detrimental factor in your business growth, which you need to plan initially. It is one of the best business ideas in recent times when more focus is given to the primary business sector.

Also read:

1) Startups in India: Growth & Other Factors to be Considered for a Startup
2) What Are Some Good Startup Ideas?
3) Where to Get a Small Business License?
4) Startup Ideas: How do you know if your Startup idea already exists?
5) OkCredit: Simple, Paperless & Secure solution for businesses

Stay updated with new business ideas & business tips with OkCredit blogs in English, Hindi, Malayalam, Marathi & more!
Download OkCredit now & get rid of your bookkeeping hassles.
OkCredit is 100% Made in India.

FAQs

Q. Are our cattle feed businesses good and profitable on a small scale?

Ans. Yes, the cattle feed business is a profitable small scale business model that can be scaled up when required. A major investment is required in the machinery for manufacturing the feed. You can get financing support from banks and the government.

Q. How to get unique business ideas for the cattle feed business?

Ans. Learn from your competitors to establish a firm knowledge about running a cattle feed business. You can get many websites for information regarding this subject.

Q. What is the equipment required to manufacture cattle feed?

Ans. The equipment required to manufacture cattle feed is listed below.

  • You need a Ribbon blender 1 MT capacity with these starters that include motor, starter, pulley, V belt stand coping with the 1M. Ton capacity. Also, buy some spare parts.
  • Then, you need a platform weighing machine to weigh the products.
  • Testing equipment for the machine
  • Then, you need a disintegrator with the following parts: motor, pulley, starter, V belt, and stand.
  • Gyratory sifter with motor starter sieve
  • Bag sealing machine
  • Afterwards, you need some miscellaneous tools and equipment

Q. What is the overall cost of setting up a cattle feed business from scratch?

Ans. Including the procurement of land, making factories, getting tools and supplies till final production, you will need to shell out at least INR 12 lakhs depending on the cost of land, factories, machines, materials etc.