The demand for animal feed is increasing as the breeding business develops. Establishing an animal feed factory not only addresses the feeding requirements of farmers but can also bring significant economic benefits.
De Wet Boshoff, founder and managing director of Consolidated Agricultural Services, shares his expertise in setting up a feed factory, including some important questions to ask yourself as a farmer if you are considering this as a business venture.
What is a feed factory?
According to Boshoff, the first question that a farmer should ask if they are considering putting up a feed factory, is what is the actual purpose of the feed?
“The feed must be fit for purpose; on one hand you have the on-farm mixing and that is normally the mixing of raw materials or feed ingredients for own use,” he explains.
The on-farm mixing method is specifically for small-scale farmers who have several cattle, sheep, or chickens, that are grown on the farm. On-farm mixing can start with a wheelbarrow and a shuffle.
Small-scale vs commercial
Trickling into the commercial space, there is much more at play with big poultry houses and feedlots to take into consideration.
“[In the commercial space] your volumes [increase] significantly. The smaller mills can use about 5 000 tons per month and your average feed mill in the industry at the moment goes between 10 000-15 000 tons of feed per month,” Boshoff explains.
The mega factories on the other hand surpass that number with about 30 000-50 000 tons per month.
What is also important to take note of, Boshoff adds, is if you produce a significant number of feeds, you need to have feed ingredients available. The importance to have feed factories is essentially to produce animal proteins.
Requirements to set up a feed factory
When upcoming farmers want to establish their own feed mills, there are a few requirements to take into consideration and items to have in place.
In order to enter this kind of market commercially, a farmer needs to go to the local departments and specifically listen to what the requirements are for the type of feed factory they want to set up.
There is a variety of feeds to venture into but the most common ones are:
- Cattle feed
- Sow feed
- Poultry feed
Feed ingredients account for 70% to 80% of total feed costs. Therefore, some people believe that raw materials are the foundation of animal feed factories.
Requirements for a small-scale feed setup for your own use:
- A piece of land.
- Raw materials.
- Tractors can also be used for transporting raw materials.
Requirements for a commercial feed setup:
- Commercial farming land;
- Infrastructure, such as water, roads, and electricity;
- Structural building;
- Manufacturing equipment, including raw materials and storage space;
- Staff: Nutrients, production staff, and lab workers.
Tips when setting up a feed factory
De Wet encourages farmers who are able to set up their own feed factories to do so.
He advises farmers to do their homework, make sure that the area has infrastructure, and work with people who can assist in planning the mill.
If you want to set up a commercial feed factory, make sure there is a market. “You can have a feed mill, water, and electricity, but if there is no market that can buy your product, it is senseless starting up a feed factor,” Boshoff cautions.
A huge role to play
He adds that the agricultural value chain has space for upcoming farmers to play a role in securing a feed factory successfully.
“Especially in the rural areas, deep rural areas that is where I see the development of new mills can play a big role,” he says.
It is important to make an informed decision. One decision can lead to the success or failure of a business and therefore knowing as much as you can to start a feed factory will benefit the farmer in the long run.
In an increasingly competitive market, know that the only way to stay ahead is to provide safe food and safe animal feed.
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