The Cattle feed manufacturing business, also known as the pashu aahar business, plays a crucial role as an auxiliary service for the primary sector in India. Animal feed, which refers to the food consumed by domestic animals in animal husbandry, is the main focus of this industry. The production of high-quality cattle feed on a commercial scale has proven to be a profitable venture, especially considering the continuous growth of animal husbandry and the ever-increasing human population that demands more resources.
As the demand for animal products continues to rise, the prices of these fodders are expected to steadily increase, thereby ensuring a profitable future for business owners in this sector. If you are considering starting a cattle feed business, you have come to the right place. We are here to provide you with all the necessary information and guidance you need to embark on this entrepreneurial journey.
To begin, it is essential to develop a comprehensive cattle feed business plan that outlines the framework for setting up a profitable cattle feed production business. This plan will serve as a roadmap, guiding you through the various aspects of starting and managing your business effectively. In this blog, we will delve into the different types of fodder that are prepared on a commercial scale, the equipment and machinery required for production, and other crucial details that you need to know when starting a small-scale cattle feed business.
By following this guide and implementing a well-thought-out business plan, you will be well-equipped to enter the cattle feed industry and capitalize on the growing demand for animal products. So, let’s dive in and explore the world of cattle feed manufacturing together!
How Profitable is the Cattle Feed Production Business?
The major portion of demand for cattle feed comes from established animal husbandries located in all parts of the world. These animal husbandries rely on high-quality feed to ensure the health and productivity of their livestock. Additionally, the cattle feed business offers a good profit margin, making it an attractive venture for entrepreneurs.
In India, specifically, the cattle feed business is considered one of the most profitable new business ideas. It presents an opportunity for individuals to earn decently in the future while contributing to the growth of the agricultural sector.
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, as the name suggests, is the capital that remains fixed and is used for one-time investments required to manufacture the products. This includes the cost of purchasing machines, setting up plants, and other similar expenditures.
On the other hand, working capital is the capital required for day-to-day operations of the business. It is used to pay salaries, cover daily expenses, purchase raw materials, manage transportation and storage, and more. Both fixed capital and working capital are essential for the smooth functioning of a feed production business.
You will require approximately 7-15 lakhs to start the business. This amount will cover the expenses of procuring a good quality blender and machines from the vendor, which are essential for the manufacturing process. Additionally, you will need a constant supply of materials required to make the feed, which will also be included in the capital investment. If you are wondering how to start a cattle feed business in India, it is important to make a comprehensive list of the equipment needed for manufacturing the feed.
It is worth noting that the aforementioned ballpark figure of 7-15 lakhs is specifically for the machines and the supply of materials. This estimate does not include the cost of the plant location and the area on which the business will be set up. Typically, you can acquire land at a lower cost in rural areas, making it a favorable option for setting up your plant. To set up your plant and manufacturing factory on the land, an estimated amount of 5 lakhs would be required.
Moreover, it is advisable to explore the various concessions and incentives provided by the state and central government for setting up such factories. These concessions can potentially reduce the financial burden and make the establishment of your cattle feed business more economically viable.
In conclusion, starting a cattle feed business in India requires a capital investment ranging from 7-15 lakhs. This investment covers the cost of machinery, materials, and the setup of the manufacturing plant. By considering the location of your plant and exploring government concessions, you can optimize your expenses and make your business venture more financially feasible.
2. Ways for financing:
Financing poses a significant hurdle for aspiring entrepreneurs in the primary sector. However, there is a glimmer of hope as banks and financial institutions offer loans with a low-interest rate, making it slightly more feasible for these individuals to secure the necessary funds.
3. What are the Machinery and Equipment Required for Production?
Let’s take a closer look at the key requirements for cattle feed production, as these will form an integral part of your comprehensive cattle feed business plan. In order to successfully establish and operate your cattle feed business, you will need to consider the following essential elements:
A Ribbon blender with a capacity of 1 Metric Tonne is recommended for this project. It is equipped with all the necessary starters, including a motor, starter, pulley, V belt, and stand, to handle the specified capacity. Additionally, it is advisable to purchase spare parts to ensure uninterrupted operation. In order to accurately measure the weight of the products, a platform weighing machine should be included in the equipment list. To ensure the quality and functionality of the machine, testing equipment is essential.
A disintegrator, complete with a motor, pulley, starter, V belt, and stand, is also required. For efficient sieving, a gyratory sifter with a motor, starter, and sieve is recommended. To seal the bags securely, a bag sealing machine is necessary. Finally, it is important to have a selection of miscellaneous tools and equipment to support the overall operation.
Those were the essential machines needed to start the cattle feed manufacturing business. These machines play a crucial role in the production process, ensuring the quality and efficiency of the feed. However, it is important to note that in addition to these machines, a constant supply of water and electricity is also necessary to ensure the smooth operation of the manufacturing process.
Without a reliable supply of water and electricity, the machines would not be able to function properly, leading to delays and disruptions in production. Therefore, it is imperative for the business to have a consistent and uninterrupted supply of these resources to ensure the successful operation of the cattle feed manufacturing business.
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 high-quality feed to sustain your business for the long run. It is essential to understand that each type of feed requires a specific mixing formula, which you must be knowledgeable about. To ensure optimal results, consider hiring a feed specialist who can cater to this specific need. By entrusting this task to an expert, you can rest assured that your business will have the necessary expertise to meet the unique requirements of different feed types.
5. Types of Animal Feeds:
It is of utmost importance to carefully consider and determine the specific type of feed that you will be producing in your cattle feed business. In order to effectively execute your unique business ideas, it is essential to have a well-developed and comprehensive business plan in place from the very beginning. When it comes to the cattle feed industry, there are two distinct types of products that you can focus on.
Fodder :It is worth noting that the taste of this particular substance is quite pleasant, which adds to its appeal for consumption by animals. Additionally, its easy digestibility further contributes to its positive effects on the animals’ overall health. This is because the natural composition of this substance is rich in fresh and nutritious elements that are beneficial for the animals’ well-being.
Forage: These are the parts of plants that the animals occasionally graze. They play a crucial role in rumen digestion as they provide the necessary fibres for the process. Moreover, these plant parts offer an economical solution as they can be grown at home, reducing the cost of purchasing animal feed. Additionally, they ensure a diluted nutrient source, which is beneficial for the overall health and well-being of the animals.
Conclusion
If you are considering starting a business in India, there are numerous options to choose from. However, one of the most profitable small business ideas is cattle feed manufacturing. With an initial investment of approximately 7 lakhs, you can establish your own cattle feed production business and generate a significant profit. To get started, you will need to acquire some heavy equipment, which will require a one-time investment.
Additionally, you must ensure a constant supply of raw materials for the manufacturing process. It is crucial to strategically select the location of your plant, ideally in close proximity to your target market, which primarily consists of farms, husbandaries, and rural areas.
The success of your cattle feed manufacturing business will heavily depend on the quality of the feed you produce and the price you set. Therefore, careful planning and consideration are essential in order to achieve sustainable growth. This business idea is particularly lucrative in today’s market, as there is an increasing focus on the primary business sector.
By capitalizing on this trend, you can position yourself for long-term success in the industry. So, if you are looking for a profitable business venture in India, cattle feed manufacturing is definitely worth exploring. With the right approach and dedication, you can establish a thriving business that contributes to the agricultural sector and brings you substantial financial rewards.