Over the span of years, there’s been an increase in the demand for animal-based protein because of the health benefits associated with its consumption. A growing global population, not to mention changing socio-demographics, place mounting pressure on the world’s resources to provide different types of food.
According to market experts, compound feed production is expected to increase on account of the rise in commercial livestock production. Similar to humans, domesticated animals raised in agricultural settings require a balanced diet that encompasses all the necessary nutrients, fluids, minerals, and vitamins. Adequate nutrition impacts their ability to grow, develop, and reproduce.
With so many mouths to feed, healthy animals are paramount. Animal nutrition is key to a profitable and sustainable livestock farm, as it contributes to fostering the safety and dietary quality of products meant for human consumption, enhancing the welfare status of farm animals. There are two basic types of animal feed: fodder and forage.
The transition from unorganized livestock farming to the organized sector is bound to propel growth opportunities in the years to come. Launching a business is a dream for many visionaries. You don’t need a degree to become a successful entrepreneur, but you must understand what you’re up against.
Perform Market Research & Pick Your Niche
Market research supplies critical information about the business landscape, so you’ll have a clear picture of how your company is perceived by target customers and the clients you want to reach. The animal nutrition industry is so complex and diverse that you’ll be completely destroyed or defeated if you don’t do your homework.
Find a gap in the market that your new business can fill. Equally, you must find your true worth and dominate your business niche. The demand for animal-based protein will have developed substantially in terms of sophistication in the years to come, so the number of new niches will multiply.
Determine How Much Funding Your Business Requires
When starting a business in animal nutrition, you must find an answer to the following question: How much money do you need? Animal feed production is a capital-intensive venture, meaning you’ll need a lot of money to purchase food processing equipment, computer technology, and vehicles for transporting raw materials and finished products. It’s recommended to have a plan to cover your expenses in the first month and identify your customers before opening the doors so that you’re able to cover those expenses. Your factory can be located in a rural area at a low cost; rural areas tend to have lower wages, property taxes, and land prices.
You’ll need two types of capital to run your animal nutrition business, namely fixed capital and working capital. Fixed capital designates the long-term investments made by a company in tangible assets used in the production process. Examples include but aren’t limited to machinery, equipment, and buildings.
Fixed capital contrasts with working capital, which is necessary to pay for day-to-day operations. The amount of working capital you need is calculated by subtracting the current liabilities from current assets. It will be used to pay salaries, overhead, raw materials, transportation, storage, and so on.
Buy Manufacturing Equipment Through Careful Planning
The market for animal nutrition is characterized by solid growth and a dainty sustainability profile, but it’s challenged by rising raw materials costs and energy costs. This is precisely why you must aim for a streamlined operating model focused on efficiency and cost leadership.
After the site of your operations has been determined, fill that space with supplies and equipment. If you’re looking to open a small animal feed factory, you’ll do just fine with a pulverizer, mixer, pellet machine, and sealer. Nevertheless, if you want to invest in a large feed factory, please check this list:
- Raw material dosing & weighing systems: micro component dosing, medium component dosing, macro component dosing
- Solutions for finished product handling: truck filling, silo discharge, kibble and end-of-line mixing
- Internal transfer systems: automatic container transfer, batch transfer, filling stations
- Storage solutions: flexible silos, stainless steel silos
KSE Process Technology is a leading supplier of high-performance solutions to the animal nutrition industry, maintaining its valued positioning owing to its leading brand ALFRA. If you’re interested in ALFRA dosing and weighing equipment, please visit https://alfraequipment.com/en. Purchase manufacturing equipment that will fit the space and make sense for your budget.
Find The Best Space for Your Business
The right space will help you attract more customers and clients and helps your venture reach new heights. Simply put, you need a location that’s perfect for bringing in raw materials and shipping out your final product, but you must also take into account the size of your business operations.
Your space should be as close as possible to suppliers, as it reduces the shipping, freight, and logistics associated with getting your products to the market. The further away you are, the more you’ll have to pay. If you receive goods from international suppliers, be certain you have access to the most reliable inbound services, to say nothing of the shortest transit times.
Put Together a Team of Employees You Can Train
The animal nutrition industry is an important contributor to the economy. Typical animal nutrition jobs include but aren’t limited to insect farm workers, cattle feedlot managers, veterinary nutritionists, plant inspection technicians, and produce safety specialists, to name a few.
Since you’re not going to make all the products yourself, come up with a strategy for hiring a top-notch team. Despite differences in methodology, employees get the job done. Unlike previous generations, millennials don’t work nine-to-five because they aim for a better work-life balance, so rethink your shifts.
All in all, starting a business in the animal nutrition industry can be a profitable venture, but a major investment is required in the machinery for manufacturing the feed. Take a close look at your competitors to establish a solid knowledge base about running a business. It’s difficult, if not impossible, to get off the ground using word of mouth alone, so take advantage of digital marketing to promote your business.