If you have decided on a new business venture, you must remember that there are many things to consider when starting the Feed mill business in the Philippines. From business cost to competitive study, sound research and planning should be on your mind.
Here are some things you must prepare before venturing into the feed mill business.
PROJECT COST
Costs involved in the project, such as:
- Feed mill
- Transformers
- Generator sets
- Civil work
- Taxes
- Transportation
- Weigh Bridge
- Warehouse
- Building Construction
- Working capital
These are some of the things you must have on your checklist. Considering all the costs in the project report is essential.
MARKET AREA ( RADIUS OF 200 KM)
- Future trends and concentration of livestock
- Poultry and other animal production,
- Demand & availability of feed,
- Demand & availability of raw materials,
- Grain surplus or deficit area,
- Kind of feed grains grown and fed, future trends in feed potential.
MARKET COMPETITION
- Kinds & prices of feeds sold
- Credit policy of competitors
- Services offered to customers
- Share of the local market
- Workforce availability & cost
- Nature of farmers & traders
- Discount policy
- The trend of on-farm grinding and mixing
SITE SELECTION
- Road conditions
- Availability of power
- Water and staffing
- Drainage & nature of the soil
- Water level
- National and local regulations for pollution & air quality
- The attitude of local people and government towards a new feed manufacturing unit
- Taxation and subsidy rules
- All these factors must be considered while selecting a feed mill site.
PROJECT FEASIBILITY
Raw Material Cost+ Processing cost + Packaging + Overhead Costs = Total Cost of production
- Where raw material is grains like Corn, Soya, Mustard, Oils, Molasses, Medicines, Supplements, or other supplies you need for your specific operation
- Processing cost
- Involves Boiler Fuel
- Electricity
- Labor
- Maintenance
- General Wear & Tear (in case of breaks)
- Packaging costs for PT Bags and overheads are depreciation.
- Bank interest, salaries, promotions & branding, marketing
All the above factors affect the cost of production. Considering all these factors, working capital, selling price & profits, we can easily calculate the project feasibility & return on investment.
Keep in mind that construction is one part of the process. If you have dealt with all the necessary costs and have projected your future ROI, you can begin looking for a contractor to help you achieve your goals.
VSM provides a highly skilled construction team and the integration of specialized equipment manufacturers known worldwide. We can Execute a Complete Turnkey Package with a minor investment. Today, VSM has built Modern Feed Mills with capacities ranging from 10 to 40 tons per hour in the shortest time possible.
For more information, you can give us a call, WhatsApp us, or Viber us. Let us know what service you need, and we are ready to assist you in building your future goals.