ECBS Company Feasibility Study Main

ECBS Company
Livestock feed feasibility report

FEASIBILITY REPORT
Livestock Feed Unit
September 2021
Company Registered Address: Jos, Plateau state, Nigeria

Factory location: Awka , Anambra State, Nigeria.
1|Page
CONTENT
Section Topic Page
Abbreviations and
4
Definitions
1 Executive Summary 7
2 Justification of the project 10
2.1 The need for the project 10
2.2 Competition Analysis 13
3 Market Analysis 14
3.1 Structure of the industry 14
3.2 Demand vs. Supply 14
Pricing & Marketing
3.3 16
Strategies
3.4 Feed formulation 18
Competitiveness of the
3.5 19
project
Special attributes desired by
3.6 19
target customers
Terms & conditions and

3.7 product specifications desired 19
by target customers
3.8 Packaging & Transportation 20
Assessment of Comparative
3.9 21
Advantage
Potential for Marketing

3.1 22
Collaboration
4 Resource 25
Sources of Inputs Including
4.1 25
Water
Comparative Analysis of
4.2 25
Critical Inputs
4.3 Sources of Raw Material 25
Availability of Manpower
4.4 29
&Skills
4.5 Need for Skill Development 29
5 The Plant 30
5.1 Choice of Technology 30
5.2 Source 31
Rate of Consumption of
5.3 Power, Fuel, Utilities 33
&Consumables
5.4 Raw Material Consumption 34
2|Page
Manpower Requirement and
5.5 35
Organization Chart
Specification of Product and
5.6 35
Byproduct
Extent of Technical
5.7 Assistance NeededIncluding 37
Training
Plant Location &
6 39
Infrastructure
6.1 Availability of electricity 39
6.2 Awka town in Perspective 40
6.3 Factory Space requirement 41

Availability of Transportation
6.4 41
Facilities
Availability of Ancillary
6.5 42
Facilities
Awka Land use growth
6.6 42
pattern
6.7 Communication Facilities 43
6.8 Factory layout plan 43
7 Environmental Aspects 44
Project Implementation
8 50
Schedule
9 Cost Presentation 52
9.1 Capital Costs 54
9.2 Operating Costs 56
10 Financial Analysis 60
Projected statement of
10.1 60
financial position
Projected Statement of
10.2 62
Income
Projected Statement of Cash
10.3 63
Flows
Appendix-NAFDAC
67
Guidelines
Reference 72
3|Page
ABBREVIATIONS AND DEFINITIONS
AFIAS ECBS Feeds Input Aggregation Scheme

ANPC Anambra Newspapers and Printing Corporation
BEP Break Even Point

BHU Basic Health Units
CP Crude Protein
CUSP Caltech-USGS Seismic Processing
DCP Digestible Crude Protein
DE Digestible Energy
DSCR Debt Service Coverage Ratio
EA Environment Assessment
EEDC Enugu Electricity Development Company
EI Environmental Information
EMP Environment Management Plan
EPI Expanded Program on Immunization
ETP Effluent Treatment Plant

FAO Food and Agriculture Organization
GNC Ground Nut Cake
GCOML Grand Cereals and Oil Mills Ltd
IRR Internal Rate of Return
ISPs Internet Service Providers
MT Metric Ton
NPV Net Present Value

NPFS National Programme for Food Security
NAFDAC National Food and Drug Administration and control
OHS Occupational Health & Safety
ORC Out Reach Clinics

PMS Premium Motor Spirit
RPM Revolutions Per Minute
4|Page
SPM Suspended Particulate Matter
TSPM Total Suspended Particulate Matter
TSS Total Suspended Solids
WFP World Food Program
5|Page
1.1 EXECUTIVE SUMMARY
ECBS COMPANY was incorporated as a multi-service and
merchandizing company with its headquarters in Jos, Plateau State,
Nigeria. Amongst its company objectives are to engage in crop and
livestock farming, provision of agro-allied services as well as
manufacturing and general contracts. ECBS Company is committed
to providing healthy and affordable farm products and services to
retailers, distributors and final consumers engaged in animal
husbandry in the country. Presently, the corporation is focused on
investing in the agro-processing business sub-sector of Nigeria;
with particular focus on the livestock feed business segment which
is an important part of the livestock agriculture and crop farming ”…According to FAO, about 19.5
value chain. million herds of cattle are reared in
Nigeria producing over 400,000
According to FAO, about 19.5 million herds of cattle are reared in metric tons of meat yearly while
Nigeria producing over 400,000 metric tons of meat yearly while poultry farms in the West African
poultry farms in the West African country attributes for over 180 country attributes for over 180
million birds. Most of the cattle ie cows are reared in the Northern million birds…”
region characterized with lower average rainfall below 1,000 mm
and topography that is suitable for cattle rearing and grazing.
Poultry production for mainly similar reasons is predominant in the
southern part of Nigeria with over 85 million Nigerians involved in
this form of animal husbandry. About 45% of poultry livestock are
raised in extensive systems, 33% in semi-intensive, and 22% in intensive systems; all of which produce 300 metric tons of
meat and 650 metric tons of eggs yearly in the populous 203.5 million people strong sub-saharan giant.
ECBS Company plans to establish its feed mill in Anambra State, South east, Nigeria; a state created in 1976 and boasts
nearly 6.4 million residents. Anambra State is inundated with many agricultural resources including cash crops, fishery
and livestock. The state is also blessed with land cultivated for crops, pasturing and animal husbandry. Several
programmes have been initiated to develop the agricultural sector in Anambra State. The programmes include the World
Bank supported State Agricultural Development Project, Anambra, Imo River Basin Development Authority, Root and
Tuber Expansion Programme, Value Chain Addition Programme and the National Programme for Food Security (NPFS).
In 2009, the state started a World Bank assisted five-year agricultural project known as FADAMA III which has had a
positive impact on the agricultural landscape of the region.
The agriculture sector accounts for a considerable percentage of GDP and literally accounts for two-thirds of the
employment in the country making it a monolith in the very survival of the West African Nation. Anambra state, where
ECBS Company plans to establish its feed mill, boasts a GDP ($6.7 billion) that is larger than that of the Central African
Republic, Gambia, Guinea-Bissau, Sao Tome and Principe, and Burundi all put together. Its state capital, Awka with a
population of nearly 0.7 million people has a Gross Domestic Product north of 1.5 billion dollars; an economic fit that
rivals that of nearly 20 (Twenty) African Countries in the world. Ranked arguably as the 16 th richest state in Nigeria,
Anambra state which is fondly referred to as The Light of the Nation, has a nearly 100% arable soil and rich deposits of
crude oil, ceramic, natural gas and bauxite; a naturally occurring mineral that is the world’s richest source of aluminum.
Anambra is also arguably the seat of innovation of the country; boasting of producing the likes of the Chief Promoter of
Innoson Motors who remains a trailblazer in the domestication of automobile manufacturing in Africa. The South eastern
state is not only technology savvy but also vested in agriculture particularly animal husbandry. Its state capital, Awka, a
civil service workers heavy town is also a Centre of commerce and hosts many agriculture stakeholders with vested
interests in crop farming, agro-processing and livestock farming.
ECBS Company’s strategic plan to invest in the agro-processing sector particularly in the livestock feed milling business
is therefore a no brainer. The firm, led by its Managing Director and Chief Promoter Mr Chinedu Oranugo a
telecommunications engineer with nearly two decades experience in the information technology industry intends to
establish a 3-5 tons per day capacity feed mill in Awka, Anambra State, Nigeria. The feedmill will produce the ECBS
FeedTM with a product line showcasing several types of feeds including poultry feeds, floating fish feeds and cattle feeds.
6|Page
This feasibility study is a blueprint and testament to the company’s commitment to the project and the profitability of the
venture to both the company’s bottom line and the socio-economic impact on livestock farmers plying their trade in the
proposed host community of Awka, Anambra State, Nigeria.
Good animal feeds are a rare combination of nutrition, convenience, and luxury to grow healthy livestock. South eastern
Nigeria is endowed with a broad class of crop farmers, livestock farms and forestry reserves. The Company will invest in
the production of Livestock feeds made with high quality ingredients sold at sales outlets in the city centre and moveable
stalls near farms and farmers markets.
ECBS Company’s main competition include livestock feeds manufacturers, stores and shops which sell livestock feeds in
Awka and neighbouring towns. Its advantage lies in the high quality of its proposed products due to specialization and
artisan manufacturing. The main marketing focus will be an eye-catching sign and periodic media advertisements. The
company will also sample its products liberally.
The agro-processing firm plans to produce different sizes of feeds differentiated by the weight ie 1 kg, 10 kg 25 kg and
will accommodate a variety of feed types including Chick Mash, Starter/ Super starter Mash, Grower Mash, Layers Mash
and Finisher ; which are mostly consumed in poultry farms. The firm will also produce and bag floating fish feeds and
cattle pre-mixes while taking advantage of revenue from particular by-products of its proposed feed processing. Vegetable
oil is one of these by-products extracted from soya beans and ground nuts leaving behind the soya bean cake and GNC
which is utilized in livestock feed manufacturing.
The management of the company, in order to achieve its first phase of establishing a feed mill in Awka, has resolved to
purchase several machines and equipment to actualize its agro-processing business interests. This will include the
installation of a Locally fabricated 3-5 tons per day capacity Hammer mill, a Mixer with a 5 ton per hour production
capacity and a weighing machine. The company will also purchase a 30 kva alternative power generator, install water
reservoir tanks, boilers, vents and a storage silo.
The company’s poultry feeds, which are the essential food for poultry farms and birds, will be made from a unique
formulaic mixture of maize grains, wheat offal’s, Palm Kernel cake, Groundnut cake and Soy bean. These feeds are in
high demand because of the preponderance of animal farms in the State especially poultry farms. Its main ingredients cost
between N250.00 to N300.00 per kilogram which also comprise of Palm Kernel Cake, maize and cotton seeds. Soya
beans, a major input for feed production which is fried before milling has by-products earlier captured following its
processing. The first which is the soya bean cake is used in the feed formula especially for fattening of animal stock. The
other by-product is vegetable oil which can be sold to another market
“…ANAMBRA STATE, WHERE segment; adding to the revenue stream of ECBS Company’s proposed
ECBS COMPANY PLANS TO feed mill venture.
ESTABLISH ITS FEED MILL,
ECBS Company, as earlier inferred, will also produce floating fish
BOASTS A GDP ($6.7 BILLION)
feeds and cattle feeds as it continues to establish itself as a
THAT IS LARGER THAN THAT OF
community pillar and an alternative to the big brand feed
THE CENTRAL AFRICAN manufacturers in the state. The company will comply with the
REPUBLIC, GAMBIA, GUINEA- provisions provided by NAFDAC captured in the regulatory body’s
BISSAU, SAO TOME AND Guidelines for the Registration of Animal Feeds Made in Nigeria
PRINCIPE, AND BURUNDI ALL (NAFDAC Doc. Ref. No: R&R-GDL-OO16-OO, find attached in the
PUT TOGETHER…” appendix of this report).
The purpose of this report is to showcase the viability of the

establishment of an animal Feed Production venture in Awka,
Anambra State, Nigeria. The start-up capital for the venture is
projected at N10 Million; wholly financed with equity and will be
employed in the purchase of machines and financing of working
capital. This feasibility report will also document the firm’s projected cash flow statement, pro forma accounts, and sales
forecast as well as other relevant information about the industry, host community, production process and company. The
report presents in detail the justification of the project, market analysis of the service, resources required, technology used
in the plant, plant location, environmental aspects, implementation of the project, cost presentation and financial analysis.
7|Page
The company plans to achieve its aim to be a preferred source for livestock feeds in the community by leveraging on the
current demand for animal feeds in the state, the socio-economic trajectory in the agriculture sector, an aggressive
market penetration approach and a strategic pricing model which will make the product even more accessible to
subsistence livestock farmers and small poultry farms in Awka, Anambra State, Nigeria.
It is proposed that the unit will have a capacity of processing 3 to 5 tons per day of livestock feed. With the increased
demand for livestock products primarily for domestic consumption, farmers realize the importance of ensuring that their
animals stay healthy and productive during their life time. This has further necessitated higher demand for balanced feed.
(i) Justification of the Project: About 90 percent of the rural households’ own
livestock, which forms an integral part of the Anambra State farming system. Yet
there is a drastic shortage of fodder several months during the year and as earlier
elucidated, the demand for cattle feed continues to increase on a daily basis. Poultry
products has also experienced increasing demands with the shortage of cattle and
beef looming in the southern part of the country. The increase in demand for beef
and poultry products is linearly related to the increase in demand for feeds.
(ii) Market Analysis: Currently there is only one large livestock feed manufacturing
unit in Awka,
Anambra State
and it is
difficult for a
“…THE START-UP CAPITAL FOR THE single
VENTURE IS PROJECTED AT N10 manufacturer meet the total
to
MILLION WHOLLY FINANCED WITH demand of

EQUITY AND WILL BE EMPLOYED IN THE cattle feed. So,
there is a scope
for PURCHASE OF MACHINES AND new entrants.
FINANCING OF WORKING CAPITAL...”
(iii) Resources
required: All
of the raw
materials like maize, wheat, limestone are readily available within the state. Other
requirements for a successful execution of the processing unit include electricity,
water and manpower which are also available in Awka, Anambra State.
(iv) Technology required: The venture will fabricate its equipment locally. Other
equipment required include an alternative power supply unit, water storage tanks
and a delivery truck. The locally fabricated plant will be equipped with a hammer
mill and mixer for its production as well as auxiliary equipment for pelletizing of
floating fish feeds as well as cattle feed. The delivery truck will be purchased in the
first year of operations.
(v) Plant Location: Awka, as severally mentioned, is the proposed location of the milling unit.
This was arrived by the company’s management after considering the availability of raw
materials, manpower, market and other infrastructure such as power from the
national grid and utilities.
(vi) Environmental Aspects: The production of livestock feed may cause air and water
pollution but the negative effects of its manufacturing are greatly mitigated while
adhering to factory protocols and measures.
8|Page
(vii) Implementation of the Project: The implementation of the project will be about 12
weeks.
(viii) Cost Presentation and Financial Analysis:

Table 1: Project Summary
Plant Capacity: 3 to 5 Tons per day (1,000 Tons per annum)

Production volume 20% to 25% of capacity
No. of Shift: One (8 hours per shift) per day
Working Days in Year: 312
Gross profit margin: 30.45%
IRR : 123%
NPV : N31 Million
Internal Rate of Return of the project is 123% which is much higher than the weighted cost of capital
of 11.25%. Hence the project is financially viable. The NPV of the project is positive (N31 Million)
at a discount factor of 11.25% during the first 10 years of operation. This implies that the project is
financially viable.
2.1 JUSTIFICATION OF THE PROJECT

2.2 The Need for the Project
General Scenario: About 85 million [Source: FAO 2019] people in Nigeria are engaged in livestock farming
particularly poultry. Using applied data, it is projected that about 900,000 to 1.3 million people in Anambra state own
livestock, with nearly a hundred thousand of these farmers plying their trade in the state capital alone. Rural households
in Anambra State own livestock, which form an integral part of the Anambra State farming system, providing support to
agriculture through draught power and also providing manure. Livestock also provides increasingly greater value by
generating cash incomes from eggs, meat and milk. Poultry, fish and Cattle, are some of the major livestock owned and
reared by farmers in South East, Nigeria.
In Anambra State, a major source of food for poultry is maize while for larger ruminants, fodder remains the largest source.
Main fodder resources are:
Serial Number Fodder Resource for Large Ruminants

1 Forest Grazing
9|Page
2 Grazing Crop Land/Fallow Land
3 Crop Residues
4 Improved Pasture
5 Native Pasture
6 Hay and Silage
7 Fodder Species grown on cropland
8 Fodder trees
Desert encroachment has led nomadic livestock farmers to migrate south wards searching for fodder and exploring the
rich sources of Anambra State. However, the ban on open grazing in southern Nigeria is halting the nomadic trend.
Eventually, the cost of cattle and other sources of meat will increase leading to attraction to the sector and investments in
enterprise. Feed producers are therefore anticipating the windfall of the rapid expansion of the livestock farming sector. In
2019, the Anambra state government foresaw the current trend and launched its on cattle rearing venture on a massive
scale called “Efi Igbo” (Igbo Cow). This initiative which many may have seen as alarmist economics when it was
conceptualized is now seen as an effort which should have started
decades before now. “Efi Igbo” was championed by Wonder
farms Umunze, a subsidiary of Eagle Foods Limited Umuchu.
With the increase in head count of cattle in the state, feed “…Feed producers are therefore anticipating the
producers are sure to cash in as they provide much needed pre- windfall of the rapid expansion of the livestock
packaged nutrition for animal farmers. farming sector. In 2019, the Anambra state
government foresaw the current trend and launched
its on cattle rearing venture on a massive scale called
The animal feed sector is valued at approximately N1 Trillion ($2
“Efi Igbo” (Igbo Cow). This initiative which many
billion). It continues to attract significant local and foreign
may have seen as alarmist economics when it was
investment in large-scale feed mill operations. In late 2016,
conceptualized is now seen as an effort which should
OLAM International (Singapore-based) commissioned a new
have started decades before now…”
720,000 metric ton (MT) per annum feed milling operation that
produces heat-treated mash and pelleted feeds; a huge
contribution to the sector but still putting a forgettable dent on the
supply chasm that still exists in the industry.
Politics and several socio-economic factors continue to play a major role in the trend experienced in the south eastern
agriculture landscape of the country. As earlier referred, the ban on open grazing by the state governments in southern
Nigeria has been commended by many stakeholders who have postulated that the farmers-herders issue being put to a rest
or effectively managed will create a more conducive environment for farmers in the southern part of the country who had
hitherto abandoned or reduced their interests in crop farming, to return to their farmsteads. The resultant effect will be a
huge increase in productivity in the agriculture sector in this region of the country. States like Anambra State with a near
100% arable land are expected to see productivity in the agro-sector blossom over time in an environment that facilitates
security of farmers and farm produce in the region. A further point made on the effect of the ban on open grazing in the
south of the largest sub-Saharan country in the world is that domestic import substitution for cattle from the north will
grow rapidly. Presently, many livestock farmers in Anambra have begun (refer to “Efi Igbo” programme) or are in stride
to establish cattle fattening ranches to fill the supply gap which continues to widen daily. A gap that has a linear
relationship with the frequent number of farmers-herders clashes.
Several factors have contributed to the increasing need for livestock feeds in Anambra State and Nigeria as a whole. A
major factor is the population increase estimated at about 5 million annually in Nigeria and over 175,000 people yearly in
Anambra state alone. This increasing pressure on food resources in the country has not been met with an equitable
increase in production hence the persistent gap in livestock feed availability for livestock husbandry and scarcity of
vegetation in Northern Nigeria that has led to the southern migration of non-ranching livestock farmers.
10 | P a g e
Declaring a state of emergency in the livestock feed sub-sector in Anambra and other south eastern states may not be an
alarmist act as the pressure of population and politics, geography and socio-economic influences lay heavy on the
shoulders of stakeholders in the agriculture sector.
Poultry, Fish and Cattle Population
Livestock farming in Anambra State is an all year-round activity. About 285,000 to 350,000 cattle are reared in Anambra
State, and over 6.5 million to 8 million poultry birds are kept in both subsistent and commercial farms in the state. This, in
comparison to the nearly 19.5 million herds of cattle and 180 million birds managed by livestock management
practitioners, may pale in comparison. However, the enormous potential of the agriculture industry is an investors haven.
About 2 million tons of fish are consumed in Nigeria yearly, 30,000 to 50,000 tons of this figure is attributed to Anambra
state. Using applied data, the animal feed requirement for the state for poultry and aquaculture alone is estimated at about
between 500,000 to 700,000 metric tons per annum.
Benefits of Commercially Manufactured Feed
The primary purpose of commercial feeds is to provide concentrated sources of necessary nutrients for
livestock. These nutrients include not only macro-nutrients of energy and protein but also important specific
nutrients such as amino acids, fatty acids, enzymes, vitamins, minerals and others.
With the increased demand for livestock products for domestic consumption as well as export, farmers realize
the importance of maintaining the health of their livestocks with proper feeding and management. The
proportion of crossbred livestock increased over the years. This has necessitated higher demand for balanced
feed. The feed supply could not keep pace with the growth in various species of cattle.
To meet the growing demand of processed and complete feeds for different class of livestock there is a good
scope for setting up feed processing plants of different capacities for production of various quality feeds in
Anambra State, Nigeria.
Average Nutritive Values of common feed ingredients (Dry
Matter basis) Table 3: Average Nutritive Values of
Common Feed Ingredients
Igbo CP DCP TDN DE ME
Common Transl
No. Botanical
Name ation
Name (%) (%) (%) MCal MCal
A Cereal
Grains
1 Avena Oats Otis 10 7.5 80 3.5 2.8
Sativa
2 Eleusine Finger millet Mkpịsị 10 7.0 70 3.1 2.5
coracana aka millet
3 Hordeum Barley Ọka Bali 11 7.7 85 3.7 3.1
vulgare
Rice
4 Oryza Osikapa 8 6.0 85 3.7 3.2
sativa
5 Triticum Wheat 13 9.0 87 3.8 3.4

aestivum Ọka Wit
11 | P a g e
Ọka
Maize
6 Zea mays 10 7.0 85 3.7 3.3
B Leguminous
Seeds
1 Cajanus Pigeon Fio fio 20 14.5 75 3.3 2.7
cajan Pea
Cy
2 Cluster bean ụyọkọ 30 22.5 79 3.5 2.8
amo
agwa
psis
tetra
gono
lobo
5 Gossypium Cotton seed Apku- 18 12.5 88 3.8 3.3
spp. Ogwu
6 Glycine Soyabean Agwa 40 37.0 90 4.0 3.4
max. Soya
Cowpea,
13 Vigna Ehi ehi 26 20.0 75 3.3 2
sinensis
C Oil Seeds
Groundnut
1 Arachis Mpuru 30 23.0 130 5.8 5.0
seed
hypohaea aku
2 Sesamum Sesame Ogiri 24 19.5 125 5.5 5.0
indicum
D
Livestock
Protein
Source
2 Meat Meal Nri Anụ 65 52.5 85 4.2 3.6
3 Fish Meal Nri Azụ 50 45.0 70 3.4 2.7
CP: Crude Protein “…About 2 million tons of fish are consumed in Nigeria
DCP: Digestible rude Protein yearly, 30,000 to 50,000 tons of this figure is attributed to
Anambra state. Using applied data, the animal feed
TDN: Total Digestible requirement for the state for poultry and aquaculture
Nutrients alone is estimated at about between 500,000 to 700,000
DE: Digestible Energy metric tons per annuum…”
ME: Metabolizable Energy
2.3 Competition
Analysis
One of the leading manufacturers of animal nutrient pellets in Anambra State is Ebenezer Group of Companies which
recently commissioned its animal feed production factory under its subsidiary, Benza Agro-Allied Company Limited at
Nnewi, Nnewi North Local Government Area. The factory is estimated to have an installed capacity of between 100 to
150 tonnes per day. The global Agri-business giant, Olams Company (Crown Flour Mill) opened its distributing outlet
only three years following the entrance of Benza Agro-Allied Company ltd into the feed mill space. Oasis Farms and
Agro Services Limited, the subsidiary of Olam established the mega outlet at Aroma junction Awka, Anambra State,
Nigeria. Olam grows, sources, trades and processes food and industrial raw materials across 16 product platforms.
Similarly, in 2019, the governor of the state inaugurated a N1.2 Billion fish feed milling facility owned and operated
12 | P a g e
by GCOML. The firm, with headquarters in Jos, Plateau State, Nigeria is a subsidiary of Nigeria’s oldest and versatile
conglomerate, UAC Nigeria Plc. GCOML produces the Vital Fish Feed brand. The establishments of large feed mills in
the state is evidence of mounting competition in the livestock industry in the state, however it is also indicative of the
huge opportunity growing in the state as the gap in feed supplies become more evident in the all year round market for
meat and livestock products.
13 | P a g e
3.1 MARKET ANALYSIS
3.2 Structure of the Industry
The Key Stakeholders
For Anambra State, the livestock feed marketing systems can be said to comprise of following stakeholders
MANUFACTURERS/
IMPORTERS
WHOLESALERS
RETAILERS
END USERS
Manufacturers/Importers: Persons or firms that manufacture or import feed.
Wholesalers: Intermediaries in the distribution channel that buy large quantity of livestock
feed from the manufacturers and resells it to retailers.
Retailers: Persons or entities who buy the feed from the wholesalers and sell it to the end users.
14 | P a g e
End Users: End users are those who buy the feed from retailers. They are livestock farmers.
The animal husbandry business gives the burgeoning population in Awka and environs a chance for employment. The
industry is able to engage the wide range of unemployed youth across the state if the government pays due attention
through its agribusiness value chain such as commercialization of feed and toll milling, processing of poultry products,
marketing of poultry, cattle and fish, hatchery and breeder farm operations.
In 1997, the market in Nigeria reported an expected decrease of 225 000 tons of commercial poultry feed from 250 000
tons in 1995. In Nigeria, the feed milling industry produces only 15% of its production capacity. This twist can be
attributed to volatility of government import ban and the World Bank 's intervention efforts which led to price changes
that eroded buying power and raised the costs of poultry inputs and products.
Poultry feeds, cattle feeds and fish feeds are essentially animal feeds used to feed poultry birds, cattle and fish,
respectively. They are formulated from a mixture of ingredients, including cereal grains, cereal byproducts, fats, plant
protein sources and by-products, vitamin and mineral supplements, crystalline amino acids and feed additives
compounded in such a way as to provide essential nutrients for sustaining optimum growth and production.
Top feeds, livestock feed (Pfizer), Rainbow feeds, Guinea feeds, Animal Care feeds and Vital Feeds are the dominating
trading names in the Nigerian market. In the feed mill industry there are three kinds of feed mills: custom, toll and
integrated farms. The custom miller markets its feed with registered tradenames.
The federal government’s recent ban on the import of frozen chicken to Nigeria – has often resulted to scarcity,
asymmetrical and inadequate feed supplies. This has a very negative effect on the poultry industry.
Nigeria is currently faced with enormous challenges that hinder growth and marketing of its products and inputs in the
poultry and feed mill industry. These issues include inadequate marketing and production knowledge, high feed prices,
lack of government support, insufficient credit, a poor road network, insufficient storage facilities and credit sales. The
supply of fundamental inputs has persistently affected the industry, particularly when certain ingredients required in feed
formulation come from abroad. This resulted in increased cost to end users of the product.
Image 3.3: Poultry Feed
15 | P a g e
3.3 Demand vs. Supply
Livestock are raised as a source of milk or eggs, meat, manure, draught power and therefore they are reared as assets. Dairy
products, especially butter, form an important component of the Anambra State diet. About six cattle breeds are used for milk
production in Anambra State. In Anambra State, a major source of cattle feed is forest grazing, fodder, native pasture and
crop residues. Many subsistence farmers in the state engage in processing feeds internally for poultry and aquaculture. But to
improve the quality and quantity of milk in dairy animals and to facilitate egg and meat maximization for layers and broilers
respectively farmers have to overcome the scarcity of livestock feed inputs before harvest seasons in May/June in the North and
March/April in the southern part of nation.
As pre-stated, over 285,000 cattle are reared in Anambra State, 6.5 to 8 million poultry birds are kept in farms in the state
while between 30,000 to 50,000 tons of fish is attributed to Anambra state. The supply gap for feeds in the industry is
estimated at between 45% to 60%; some analysts put this figure above the 80 th percentile. These are data that point towards
the need for more investment in the animal feed sector.
3.4 Pricing & Marketing Strategies

The projects marketing effort will call for a strategy based on segmenting, targeting & positioning.
Segmenting: Segmenting is the act of dividing the Awka market space into distinct groups of buyers who might require
separate offerings in terms of product attributes, pricing, promotion and distribution. Broadly speaking the livestock feed
market in Anambra State is primarily a rural phenomenon. It can be classified in to 1. Individuals 2. Institutional buyers.
For livestock feed, individual consumers would be lower income group generally the farmers. In 2012, 90% of the farmers in
Anambra State owned an average of two to three cattle (ie cows, goats etc) 5 to 7 chickens and fish.
Institutional buyers can be split into following groups:
1. Poultry farmers rearing birds for egg production(Layers)

2. Poultry farmers rearing birds for meat(Broilers)
3. Fisheries
4. Dairy Farms
5. Cattle Farms
Targeting: This is the act of choosing some of the segments identified from considerations of commercial attractiveness.
The company will try to focus much in winters to serve the farmers as there will be scarcity of natural feed during this
period.
But for institutional side, the company has to focus meeting up the demand all throughout the year. Accordlingly, the Sales
team should have clearly spelt out responsibilities for team members to address the above segment with a properly devised
sales plan.
Positioning: This is the act of providing a viable competitive positioning of the firm and its offer in each target market. It
should ideally communicate uniqueness that adds value.
Some viable positioning statements could be:
 Nutritional value of the feed which would help to make the cattle healthy and increase their productivity
 A quality product
 Affordably priced
 Readily available round the year
16 | P a g e
The marketing mix should accordingly be defined encompassing aspects like the product attributes including quality and
packaging, pricing strategy, promotion and distribution and logistics all carefully designed to ensure a high level of consumer
satisfaction.
Product: By ensuring proper quality of raw material and strict adherence to manufacturing process guidelines, the
company can ensure that their products are better than prevalent standards in the market. The units can then even think of
branding their products through an appropriate logo that communicates value.
Price: To gain an entry in the market a competitive pricing strategy would be used. As there is only one large manufacturer
of livestock feed the price will be compared with theirs and therefore the price cannot be very different. Similarly, there
should be attractive margins for the trade – in keeping with or ahead of the market.
Promotion: The promotional strategy for individual buyers could be as follows. For individual consumers, the company
would target dealers, wholesalers and consumers to convey to them the benefits of the products through proper media
channels like radio, television and outdoors. There should be attractive performance recognition schemes and contests for
dealers – particularly for the first year of operation.
The promotional strategy could also induce trial through free sampling of the product. For institutional buyers, the sales team
would ensure that the segment is well covered by initiating cold calls and staging product presentations to spread awareness
and generate interest. For customers who already are in a higher state of readiness and floating enquiries, the Sales team
would respond to them by sending in quotations followed by a discussion and negotiation leading to closures.
The table below shows the promotional activities that must be undertaken
Table 3.3: Promotional Activity
Serial Number Promotional Activity

01 The product must be launched with coverage on the radio, TV and newspaper.
02 Occasional TV and radio advertisements to make farmers aware about the benefits
of the product.
03 Distribution of leaflets, pamphlets, stickers wherever possible

04 Promotional & discounted sales campaigns to farmers and retailers
05 Regular liaisoning with Diary & cattle farms
06 MOU with Farmers and agriculture cooperatives in the State should be an important
and frequent activity
Place: Superior Distribution & Logistics would be the key to success in a geographical area where rural roads as well as
transportation facilities are in a state of evolution so that the product can be easily trans- ported. The right place for the sales
offices would be rural areas. Company can hire local people who can operate from their home offices.
3.5 Feed Formulation

The three common practices used to formulate and manufacture animal diets include Managed Formulation, Fixed
Formulation, and Least-Cost Formulation.
Constant nutrition: is a management program of diet formulation. Using this method, we are able to deliver a constant level
of nutrients taking into account the biological variation of natural feedstuffs. Ingredients are assayed daily and necessary
formulation refinements are made if required to minimize nutrient variation. The actual ingredients used or their order of
inclusion in the diet does not change, the benefit to the scientific community is a constant baseline of nutrition to help control
unwanted, nutritionally induced variables.
In addition, ingredients are assayed for interfering environmental contaminants to further reduce the possibility of unwanted
variables introduced through the diet.
17 | P a g e
Fixed formulation: is a method where the ingredient inclusion levels are fixed and do not change based on nutrient content of
incoming ingredients. Extensive ingredient research has proven that formulas produced under ‘Fixed Formulation’, without
credence to ingredient variability, will result in unknown and sometimes radical changes in nutrient concentrations. These are
primarily economy minded formulated feeds that can be safely fed for production purposes to the beef, swine and dairy
industries. The finished product testing on these feeds from season to season proves ingredient variability can change the
nutritional composition of an animal feed.
Least cost formulation: The practice of ingredient interchange, known as “least-cost formulation,” is widely practiced within
the commercial feed industry for production animals. When the cost of one ingredient increases, a lower cost ingredient may
be used as a substitute in order to produce a lower cost feed; thus providing the customer with the most economical feed. It is
widely known, however, that laboratory feeds are fed to animals raised for breeding and research, not for animals used to
produce food such as meat, milk and eggs. Because laboratory animal diets need to be consistent products,
There exists two approaches to feed formulation in a feed milling operation, these include the Manual approach and
Mathematical linear single /multiple programming approach.
Manual techniques of feed formulation: Pearson’s Square Method (PSM): This shows the proportion of two feed ingredients
to be mixed together in order to obtain the percentage of the particular nutrient. Example of this is found in the mixing of
corn and soya beans to meet a 23% protein requirement. However the technique is not suitable in a complex feed mix
problem.
Trial and Error Method (TAE): This is the most popular method done either manually or by using EXCEL spreadsheet . For
example, in choosing four ingredients combination that must meet a protein requirement between 25-30%. The limitation of
this problem is that it requires more time especially where there are a lot of ingredients and nutrients needed to be
considered. Simultaneous Algebraic Equation (SAE): This is used to balance two or more feed ingredients to achieve a
targeted optimum nutrients value.
The limitation of simultaneous algebraic equation is that it can only balance for two nutrients at a time. It is not practical for
solving a problem which takes many nutrients.
Mathematical single-linear programming approach: The first attempt on a single objective programming as a tool for
solving a feed.
ECBS Company will adopt the mathematical single-linear programming and the least cost formulation method.
3.6 Competitiveness of the Project

The project advocates setting up a manufacturing plant for the production of several varieties of animal feed.
The unit aspires to deliver quality products which would be beneficial for the health of the livestock in the community;
improving their longevity and productivity. It is expected that there would be a demand pull at the customer end which can
be further strengthened through innovative promotional strategies. The demand pull is estimated to be significant ensuring
lowering of costs through economies of scale.
3.7 Special Attributes Desired By Target Customers

In general customers would prefer :
1. High Quality Graded Feed

2. They would prefer an affordable price: some may prefer to have a credit period
3. Some would look forward to promotional offer
4. Timely delivery in good condition
However the customer needs and wants may vary from one customer segment to the other. For example, the requirements of
feed type of beef cattle farmers would be different from requirements of feed type of dairy cattle farmers. Poultry farmers
also require different feed formula at the different stages of their birds.
18 | P a g e
3.8 Terms & Conditions and Product Specifications desired by target customers
Types of Cattle Feed
a) Broiler starter: This is high in protein and energy and is given from day old until 4-6 weeks old
b) Layer starter: this is also high in protein and is fed to the birds for the first 8 weeks.
c) Grower feed: This is about 18 percent protein and are fed to the birds until 14 weeks of age.
d) Layers feed: When about 5 to 10% of the birds start laying eggs this formula is fed to the birds until they are sold off.
Laying hens at 22 weeks require 16 to 18 percent protein level and extra calcium and minerals for strong egg shells.
e) Natural fish feed: such as Plankton, aquatic insects, wolffian, rotted plants etc which are available in fish ponds when items
like fertilizer is applied in the fish pond.
f) Supplementary fish feed: This is the type that ECBS Company proposes to produce and is a mixture of rice bran, wheat,
soya cake, bone and fish meal etc. and comes in different forms such as dried fish foods which are baked to remove moisture
and suitable for tropical fish. Medicated fish feed and frozen fish feed are other types of fish feeds
g) Calf Starter: Specially formulated feed for calves to be started from the 42nd day till 8 months.
h) Cattle Concentrate: Feed formulated for milking cows to maintain health, ensure milk production and
reproductive health.
i) Milk Ration: Milk ration is a high energy feed to ensure higher milk production and maintenance of the cattle
and is recommended for milking cow producing more than 10 liters of milk per day.
Nutrient Content of Feeds

The table below shows the nutrient content of different types of Feeds:
Table 5: Nutrient Content
Types of Feeds ME(kcal/g) Moisture% CP% Ca% P%
Broiler Starter 2,800 14% 20% 1% 0.45%

Grower Mash 2,800 14% 18% 1% 0.40%
Layer mash 2,600 14% 16.50% 3.60% 0.45%
Fish feeds 4,510 17% 60% 2.50% 1.50%
Calf Starter 3,000 11.25% 19% 0.60% 0.50%
Cattle Concentrate 2,500 11.25% 18% 0.80% 0.70%
Milk Ration 2,890 11.25% 18% 0.85% 0.75%
3.9 Packaging & Transportation Woven Polypropylene

Large loads of premixed feed are packed into bulk bags. If the ingredients Sacks have a
have to travel greater distances, Q bags are used to assist in stability and significant role within
maximize the load. All types of Polythene Sacks are used. Presently, ECBS this sec tor
Company will use hand held sealing machines but will in the near future predominantly because
install Automated Form Fill and Seal Machines.. Paper Sacks are used of their inherent
where dry foods stuffs and powders are used. This is used in industry and strength.
are acceptable to end user in over the counter sales.
It needs to satisfy the
19 | P a g e
following objectives:
Figure 1: Q Bag
1. Protects the quality of the product.
2. Provide information to buyers, such as variety, weight, specification of the product,

quality grade, producer’s name, country, area of origin, etc.
Figure 2: Polythene Sack
20 | P a g e
3.10 Assessment of Comparative Advantage
a) Abundance of Hydroelectric Power
Electricity customers in Awka, Anambra State and Owerri, Imo State will continue to enjoy improved power
supply going by the level of investments the Enugu Electricity Distribution PLC (EEDC) has made towards
improving its electricity infrastructure in the two states. This is a welcome relief and a source of hope to
industrialists who bear the weight of high cost of power.
These investments include the construction of a 1 x 7.5MVA Injection Substation at ABS, Awka, and upgrading of
the 7.5MVA Injection Substation at Agu Awka to a 15MVA; while in Imo State, approval has been obtained for
the construction of a new Oguta 33KV line valued at over N140 million, which will radiate from Egbu
Transmission Company of Nigeria (TCN) station.
The 1 x 7.5MVA Injection Substation at ABS, Awka, is expected to improve electricity supply to Okpuno,
Isuaniocha, Mgbakwu, Urum and Amanuke communities and the university community.
The upgrade of Agu Awka Injection Substation is expected to address the electricity supply challenges and boost
supply to Awka Industrial Layout, Ifite, Agu-
Awka GRA, parts of Nkwere Awka, UNIZIK,
“…Electricity customers in Awka, Anambra State and
Amansea, Ebenebe, Ugbenu and Ugbene
Owerri, Imo State will continue to enjoy improved power
communities.
supply going by the level of investments the Enugu
Electricity Distribution PLC (EEDC) has made towards ECBS Company, however, plans to support its
improving its electricity infrastructure in the two states. power requirement from the national grid, as
This is a welcome relief and a source of hope to earlier captured, with an alternative power supply
industrialists who bear the weight of high cost of power generator with a 30 kva capacity.
…”
b) Availability of Water
Public pipe-borne water system in Anambra state, Nigeria has been in a less than optimal state for over seventeen
years, challenging the residents of the state to resort to alternative sources of potable water, notably, boreholes. It is
imperative to continuously assess the quality of the water. In a research conducted in 2019, boreholes in several
communities, one from Aguluzigbo, and others in three local government areas (Anaocha, Awka-North, Awka-
South) in the state were sampled, and tested for pH, Conductivity, Hardness, Total Suspended Solids, Lead,
Arsenic, Cadmium, Bacteria and Yeast loads. It was discovered that the water samples were all soft and mostly
acidic. While there were not much threats of yeast, the aerobic bacteria counts were above the acceptable limits.
The Lead, Arsenic and Cadmium concentrations were above the tolerable limits in most communities in Anaocha
and Awka-South. Arsenic, Lead, Cadmium were absent in all the samples in Awka-North except in four
communities where Cadmium was present. Suspended solid contents were also high in all the Local Government
Areas. Overall, the quality of the water consumed by the people in the selected population calls to question of the
water and sanitation component of the public health system.
The company’s major use of water will be for sanitation and production purposes. It will rely on the public utility
system or purchase and treat water as required.
The requirement for water in the factory is estimated at about 10,000 litres monthly.
c) Ready availability of Limestone, Maize, Bran of Cereals & Other Grains (Rice & Wheat)
Limestone, maize, bran of cereals and other grains (rice, wheat) are some of the raw materials that are
used for manufacturing of feed and these raw materials are readily available in Anambra State.
3.11 Potential for Marketing Collaboration

There is a tremendous potential for marketing collaborations at the customer end of the supply chain.
ECBS Company’s feed mill unit will appoint independent sales agents or exclusive tie ups with
21 | P a g e
certain stores or outlets who will act as key distributors.
Animal feed is the nucleus of livestock industry in Anambra State and its development is directly
related to that of agriculture as a whole in the South eastern state. Animal feed represents the major
cost of livestock husbandry, constituting about 70 percent of the total cost. Of total feed cost, about 95
percent is used to meet energy and protein requirements, about 3 to 4 percent for major mineral, trace
mineral and vitamin requirements and 1 to 2 percent for various feed additives.
Compounded poultry feed can be in form of mash or pellets. There are three types of feed millers in
the livestock farming in the state, namely; custom, toll and integrated farms. The custom millers mill
and market their feeds under registered trade names. The dominant trade names in the Nigerian market
include Top Feeds, Livestock Feeds (Pfizer), Rainbow Feeds, Guinea Feeds, Animal Care Feeds and
Vital Feeds. Some of these custom millers have adopted franchising as an operational method for
achieving a wider reach across the country. The toll millers are spread across major locations with
significant concentration in small-to-medium scale poultry farms. They mill feed to the specification
of customers and charge a fee per quantity milled. The customers either bring their feed ingredients or
purchase them from the millers, if the millers have them in stock. The third category of feed millers is
the integrated poultry farmers, they own feed mills and produce feed for own use.
A study conducted on the marketing of poultry feeds in Anambra State, Nigeria was done with the specific
objectives of describing the socio-economic characteristics of the poultry feeds marketers; identifying and
describing the marketing channels for poultry feeds; describing the promotional activities adopted by these poultry
feed marketers; assessing the degree of market concentration among wholesalers and retailers of poultry feeds;
determining the marketing margins for poultry feeds at wholesale and retail levels and ascertaining the factors that
determine the selling price by the marketers of poultry feeds. A survey design was adopted in the study and data
for the study were collected from a sample
of 120 marketers through the use of two
sets of structured and pre-tested questionnaire.
The data were presented using descriptive
statistics while Gini coefficient, marketing
…
margins and multiple regression were used for
the analysis. The study showed that males
“…There are three types of feed millers in the
(63.3%) dominated wholesaling, while
females (55%) livestock farming in the state, namely; custom, toll dominated retail
marketing business of and integrated farms. The custom millers mill and poultry feeds. About 70-
75% of them were market their feeds under registered trade names. within the highly
productive age range of The dominant trade names in the Nigerian market 20-50 years. About
11.7% of the retail include Top Feeds, Livestock Feeds (Pfizer), Rainbow marketers attended
primary school while Feeds, Guinea Feeds, Animal Care Feeds and Vital 43.3% and 45%
attended secondary and Feeds…” higher institutions,
respectively. Majority (86.7%) of the
wholesalers bought directly from producers
(feed millers) while 13.3% bought from other wholesalers. Most (95%) of the retailers made their purchases
through the wholesalers. Marketers purchased feed products packaged in bags of 25kg weight and distributed
same using the same packaging from the producers. Some retailers also sold in producers’ packaging and /or
smaller measurements. Majority (88.3%) of the wholesalers obtained information on source of supply through
personal contact from others in the same trade or suppliers’ agents. There was poor marketing information as new
product introduction strategy was also done by personal contact and price reduction. Popular means of
advertisement like radio, television and newspapers were not very common. Only about 5% of the marketers were
influenced through the mass media. There were high inequalities in sales distribution as well as income among the
marketers as Gini coefficient values of 0.46 and 0.57 were obtained for wholesalers and retailers, respectively. The
mean marketing margin of N138/25kg bag or 6% for wholesalers was higher than the mean value of N105/25kg
bag or 4% for retailers.
ECBS Company plans to set up a mixed miller system of producing customized feeds as well as
22 | P a g e
operating a toll miller system. The company will brand and bag its feeds, producing more of the
poultry feeds (about 70% of its product line) while cattle and fish feeds as well as vegetable oil by-
products will make up about 30% of its offering.
Some Feed distributors in Awka, Anambra state, Nigeria being considered as off-takers for ECBS
Company’s products include:
 Oasis Farms & Agro Ltd

Lamb of God plaza, Aroma
0706 8566178
 Agric Fish and Poultry Feed Depot
Owerri
08136875638
 Emmanson Enterprises
Onitsha
0803 508 3177
 Confirmed Feed base ltd
Enugu
08036375353
 Asaba Lagam Vet Cons.

Animal Feed Store
08154366358
 Agro Dealers Enterprises

Animal feed store
Owerri
08096085452
 Zulinkx Agro and Vet services

Poultry store
Onitsha
08134750806
Figure 3.9: Feed mill plant
Image 3.9.2: Locally fabricated hammer mill

23 | P a g e
24 | P a g e
4.1 RESOURCE
4.2 Sources of Inputs
Utilities required by the plant consist of electricity and water
Electricity is required to run the production machinery and to provide lighting for the plant. As severally
stated, the company will purchase a generator as alternative power supply.
Water is required for general purposes and sanitation
4.3 Comparative Analysis of Critical Inputs

Electricity: Theoretically, setting up one’s own solar panels to be self-sufficient on electricity seems possible but the
high investment cost, ever increasing maintenance costs and low comparative power output ratio to cost makes it a
poor alternative to power from the National grid. A diesel or PMS powered generator remains a better second choice.
Water: As pre-stated, a 5,000 litres storage tank will be installed on the premises to serve as a water reservoir. In the
distant future, the firm will install a borehole in at the factory site to cater to its water requirements.
4.4 Sources of Raw Materials for Animal Feed

Major raw materials required for the manufacture of feed are oil cake, bran of cereals, molasses, maize, salt, limestone
(ground), other grains (wheat, barley, etc), meal (bone or flesh or blood). The feed consists of three major groups of
substances: carbohydrates, oils and proteins together with smaller amounts of minerals and vitamins.
Oil Cake: Oil-cake is the residue obtained after the greater part of the oil has been extracted from an oilseed. Oil-
cakes are rich in protein and are valuable for cattle feed. Oil-cakes are great source of fiber and energy.
Bran of Cereals: Different bran of cereals such as rice bran, wheat bran is used in the manufacturing process of
cattle feed. Bran is used widely as the energy portion. Bran contains fiber and protein.
Molasses: Molasses is a source of quick energy and a rich source of minerals. Molasses in cattle feed increase milk
solid production, improving milk let-down, promoting livestock health, improving digestion of fiber, helping to
reduce heat related stress, helping in growth and development of young stock. It is also a good binder for poultry feed
and provides a good source of energy to the birds.
Maize: Maize is the most common grain used for most livestock feeds feed. The energy value of maize is
commonly used as a standard with which other energy sources are compared. Thus, if the relative energy value of
maize is taken as 100, the energy value of other grain sources is generally lower. The efficient utilization of the gross
energy is mainly due to the low fiber content of the maize kernel and the high digestibility of its starch. The crude
protein content of maize is relatively low, ranging from 8–11%.
Meat & Bone Meal: It is typically about 48–52% protein, 33–35% ash, 8–12% fat, and 4–7% moisture. It is
primarily used in the formulation of feed to improve the amino acid profile.
Limestone (ground): Calcium plays essential roles in cattle nutrition. It is required for proper development of bones
and teeth, regulation of heartbeat and blood clotting, muscle contraction, nerve impulses, enzyme activation, hormone
secretion and milk production. The calcium content is more in layer feeds to facilitate healthy egg shells produced by
layers.
Other Grains (wheat, barley, etc): Wheat is low in fiber and high in energy and compares favorably with other
grains in energy content. The protein content of wheat from the world collection was shown to vary from 6 to 22%
but the wheat most commonly used contains 13–15% crude protein. The protein content of oats ( Otis in igbo) is
relatively high (11–14%) and the amino acid distribution is more favorable than that of maize. Recent studies with
cattle of different age groups indicate that steers and non-lactating cows digest completely the starch of rolled oats
25 | P a g e
and that steers digested more of the starch of the whole grain than did cows. Barley has a feeding value of 91% that
of maize.
All raw materials required for feed production can be sourced in several markets in Anambra State including the
following:
Image 4.3.1 : Map of Some Markets in Anambra state for sources of Livestock feeds raw materials
Inputs can be sourced from the open markets and prices are competitive. Okoti Main market, Eke Umudioka and
Umuobodo Market are some of the markets in the state to source raw materials. One of the largest markets in West
Africa, the main market Onitsha which is the host community for some of the largest merchandizing businesses in
South East, Nigeria is a major source of agricultural produce. Over 8,000 tonnes of goods are brought into the market
yearly by major merchants dealing in agriculture, luxury items and fast-moving consumer goods.
Outside Anambra State where ECBS Company plans to establish its feed mill, several states in Nigeria constitute the
major sources of price competitive agriculture produce which form the inputs for Poultry, fish and cattle feeds.
Kaduna State tops the list with a production volume which is about 15 percent of the nation’s grains production. Other
states that feature north of the volume list which the management of ECBS Company can source its sorghums, soya
beans and maize include Plateau State, Taraba State, Niger and Borno states. These five states produce over 40% of
the nation’s maize and several varieties of grains.
One common ingredient in most poultry feed and perharps the largest source of protein in the livestock diet is
soybeans. It is therefore the most sought-after ingredient in animal feed formula. Nigeria is West Africa’s largest
producer of soybeans. In marketing year 2018/19 (October-September), Nigeria produced an estimated 1 million
metric tons of soybeans, with yields of about 1.05 MT per hectare. Cultivation is largely located in the country’s green
middle belt (65-70 percent of production), in the states of Kaduna, Niger, Kebbi, Nasarawa, Kwara, Oyo, Jigawa,
Taraba, Borno, Bauchi, Lagos, Sokoto, Plateau, Zamfara, and the Abuja Federal Capital Territory. Domestic
production is consumed locally mainly in the form of soymilk and specially formulated foods to help malnourished
population groups. Soybean Cake and Meal, as mentioned earlier in this report, are by-product from the soy oil
production as such Nigerian farmers use soybean cake as a high-protein animal feed. Soybeans is therefore
effectively an important high quality, affordable source of protein because it consists of more than 36 percent protein,
30 percent carbohydrates, and is an excellent source of dietary fiber, vitamins, and minerals. Soybean meal counts
with a protein digestibility in poultry of approximately 85 percent.
Raw materials suppliers of choice include:
1. Elwin Amanchasis Co. Ltd.

Supplier : Pure edible & non edible oilseeds of natural sesame seed, jatropha, castor beans, soy beans, sunflower oil,
neem seed, palm kernel oil& shell, cassia tora, african locust bean, cashew kernel, cashew nut liquid, wood products
26 | P a g e
such as kosso, gmelina, african padauk, apa wood chips, dried split ginger and turmeric powder.
Contact Details:
Km 30, Enugu-Onitsha Expressway Awka
Beside Winners Church Awka
Anambra State Nigeria.
Image 4.3.2: Onitsha Main market
Image 4.3.4: Kaduna grains market
27 | P a g e
28 | P a g e
4.5 Availability of Manpower and Skills
The total population in Nigeria is divided into labour force (currently active) and non ‐labour force (not
currently active). The labour force population covers all persons aged 15 to 64 years who are willing and able
to work regardless of whether they have a job or not. The definition of unemployment therefore covers persons
(aged 15–64), who during the reference period were available for work, actively seeking for work but were
without work. The non-labour force includes population below 15 or older than 64, as well as those within the
economically active population i.e. 15‐64, who are unable to work, not actively seeking for work or choose not
to work and/or are not available for work.
Anambra state has a youth population of about 47.6% (NBS 2017) and an active labour force making it rich in
not only natural resources but also human resources. Even though the state has the lowest underemployment
rate in the country at 17% (NBS 2020), the state remains fertile in the area of manpower for the proposed
factory in Awka Local Government Area.
With a 47.6% youth population and an underemployment rate of 17%, the state has an economically active
under employed population about 1.08 million out of which about 119,000 are resident in the state capital.
ECBS Company intends to create well over 100 direct and indirect jobs in the state capital through its agro-
processing venture make a dent, albeit small, but an impact nevertheless in the unemployment statistics of the
South Eastern State of Nigeria.
4.6 Need for Skill Development

As the workforce is mostly unskilled, there is a need to develop their skills according to the need of the
industry. Workshops or on-site short-term trainings may be organized by the suppliers of on the machine
operations and maintenance. Similarly, training should be conducted by an experienced agro-processor in the
livestock feed industry for hands-on feed milling and distribution. The trainings will be a combination of theory
sessions, on the job coaching sessions and on the job supervision. For people joining with no relevant
experience training in their respective functional area would be mandatory. There should be a periodic skill
assessment done by the management on the basis of observation of on the job performance. Based on the
findings, a training calendar needs to be drawn up.
Image 4.5: Anambra Youths in Awka, Anambra State, Nigeria.
29 | P a g e
5.1 THE PLANT
5.2 Choice of Technology for Feed Manufacturing Process
The major operations involved in the production of livestock feed are: raw materials preparation,
primary crushing, assorting and measuring, molasses mixing, fine crushing, pellet making, and
packaging. Raw and auxiliary materials are first charged into silos and tanks where they are made
ready for further pro cessing. They are then processed by primary crusher. Crushed materials are
further separated by means of a sifter, and then stored in the assorting tanks according to the kind of
raw materials. In assorting and measuring operation, small amounts of additives are charged into the
bins containing different assortments of raw materials. The raw materials stored in the assorting tanks
are used in accordance with the desired proportion.
The raw materials are then mixed by means of a mixer. In this process, fatty ingredients are added to
the materials in order to raise the nutritional value of the feed. The feed obtained from the mixer is
blended with molasses. After the feed is blended with molasses, it is further crushed by means of the
second crusher. Assorted livestock feed that is crushed into fine particles is further formed into pellets. The
pellets, which are cylindrical type and size, 1mm to 6mm in diameter and 0.5 cm to 2cm in length, are
then dried. The product is next stored in the product tanks, weighed and packaged in jute bags.
Figure 3: Manufacturing Process
Manufacturing Process Diagram of Livestock Feed
30 | P a g e
Machinery & Equipment Required By Feed Producing Plant
The table below shows the machinery required by Cattle Feed Producing Plant. While the project is about
manufacturing livestock feed, the manufacturing system proposed would have the capacity to process fish feed
and poultry feed as well.
Table 5.0: Machinery Requirement
S. No. Description Quantity

1 Mixer (5 ton per hour capacity) locally fabricated with pellet 1
machine and dust collector
2 Hammer mill (crusher) Locally fabricated with boiler 1
3 Weighing scale (5 tons) 1
4 30 kva Generator-Perkins 1
5 5000 litres Geepee water tank 1
6 Silo for grain storage 1
5.3 Source
Grain Storage Silos
Capacity: 2 tons
Dimension: 1m*1m*1m
Weight: 400 kg
Volume: 1,000 litres
Material: Steel
Brand Name: Locally Fabricated
Proposed Supplier: Solbatech Limited. Anglo D Opposite Fire Service Jos Plateau
State. 08023741070 & Emesco Metal Fabrication, Jos, Plateau State.
Hammer Mill
Capacity (ton/hour): 5 tons per day
Power: 11-220 KW
Supplier’s Details: Solbatech Limited. Anglo D Opposite Fire Service Jos Plateau
Pellet Machine
Brand Name: Locally
Fabricated Number:
142 Voltage:220V
Dust Collector
Minimum Particle Size: 3-15g/cubic meters
Dimension (L*W*H): 1350*960*1320
31 | P a g e
Weighing Machine
Brand Name: Number:
hlt-208 Battery: 4V or
6V Power Supply:
AC/DC Voltage: 220 V
Features: Rechargeable Battery, overload and low voltage indication, automatic standby mode
Boiler
Brand Name:
Locally fabricated
Dimension (L*W*H): 480*480*600mm
Weight: 300kg
Capacity: 200kg/hr
Product Tank
Brand Name: Geepee
Capacity: 5,000 litres
Supplier’s Details: Geepee
5.4 Rate of Consumption of power, fuel, utilities & consumables

A plant with annual capacity of 16,000 tones is envisaged considering the market study and minimum
economies of scale. The plant will operate a single shift of 8 hours a day, and 312 days a year.
The table below shows the annual requirement of utilities:
Table 5.3: Annual Requirement of Utilities
32 | P a g e
Average costs per

annum

I t e m Quantity =N=
Fuel 4,800.00 litres 792,000.00

Water 192,000.00 litres 440,000.00
Electricity 4,800.00 units 288,000.00
Lubricants 200.00 litres 220,000.00
Others
TOTAL 1,740,000.00
5.5 Raw Material Consumption

The table below shows the annual requirement of raw materials:
Table 5.4: Annual Requirement of Raw Materials
RAW
MATERIAL QTY REQD/ COST PER TOTAL COST COMPOSITION COMPOSITION
COST
ANNUM BY WEIGHT BY VALUE
(N'000) (N'000)
Soya bean 36,036 0.245 8,828.82 14.8% 19.2%
Cotton Seed 51,480 0.100 5,148.00 21.1% 11.2%

Fish Meal-
N400/kg- bone
meal-N70/kg
Minerals and salt
-N150/kg 11,700 0.6200 7,254.00 4.8% 15.8%
Maize grain &
Maize offal 94,380 0.1550 14,628.90 38.7% 31.8%
Palm kernel cake 11,700 0.1000 1,170.00 4.8% 2.5%
Groundnut cake 8,580 0.4000 3,432.00 3.5% 7.5%
Brewer Spent
grains 21,060 0.1000 2,106.00 8.6% 4.6%
cattle premix 1,716 1.2000 2,059.20 0.7% 4.5%
Packaging 7,133 0.2000 1,426.59 2.9% 3.1%
GRAND TOTAL 243,785 46,054
33 | P a g e
5.6 Manpower Requirement & Organization Chart
The table below shows the manpower requirement:
Table 5.5: Manpower Requirement
Gross No. Reqd. (for

Salary/Wages Total Salary per
Personnel No. Shifts Monthly new/Expansion
Per Worker (N) Annum (N)
Wage Bill (N) Projects)
MD/CEO 1 1 150,000.00 150,000.00 1,800,000.00 1

Manager 1 1 50,000.00 50,000.00 600,000.00 1
Supervisor 1 1 30,000.00 30,000.00 360,000.00 1
Accountant 1 1 55,000.00 55,000.00 660,000.00 1
Farm Workers 9 9 25,000.00 225,000.00 2,700,000.00 9
Receptionist 1 1 19,166.67 19,166.67 230,000.00 1
Store keeper 1 1 25,000.00 25,000 300,000.00 0
Security Guards 2 2 19,166.67 38,333.33 460,000.00 2
Total 17 17 373,333.34 592,500 7,110,000.00 17
5.7 Specification of Product & Byproduct

Types of Feed
a) Grower Mash
Image 5.6.1: Grower Mash
b) Starter feed
Image 5.6.2: Starter feed
34 | P a g e
c) Layer feed
Image 5.6.3: Layer feed
d) Fish feed
Image 5.6.4: Fish feed
35 | P a g e
e) Calf Starter: Specially formulated feed for
calves to be started from the 42nd day till 8
months.
Figure 4: Calf Starter
f) Cattle Concentrate: Feed formulated for milking cows to

maintain health, ensure milk production and reproductive
health.
g) Milk Ration: Milk ration is a high energy feed which ensures
higher milk production and maintenance of the cattle and is
recommended for milking cow producing more than 10 liters
of milk per day.
Figure 5: Cattle Concentrate
5.8 Extent of Technical Assistance Needed Including Training

As the workforce is not so much skilled there is a need to develop their skills according to the need of the industry. Workshops or
on-site short-term trainings will be organized by the suppliers of machineries on how to control the temperature, operate machineries
etc. The training will be a combination of theory sessions, on the job coaching sessions and after that on the job supervision. The
duration of training will be of 2 weeks, 1 week for the theory and on the job training and 1 week for the supervision at a pre-fixed
date. The duration of training may be extended later on if required.
Image 5.7: Livestock feed pellets
36 | P a g e
37 | P a g e
6.1 PLANT LOCATION & INFRASTRUCTURE
The location of a plant is determined on the basis of proximity to raw materials, availability of infrastructure and
distance to market outlets. It is proposed that this plant be located in within a 5 (five) kilometer radius of the Eke
Awka Market so that access to raw materials is easier and proximity to customers makes for reduced cost of
transportation to target market segment. Furthermore, Awka being the capital of Anambra state and a major
commercial hub ensures that the logistics of sale and distribution is less cumbersome.
The Eke Awka is the largest market in the Anambra capital city named after one of the four market days. Eke
Awka has grown from a small market serving the needs of residents of the Agulu, Ezi-Oka and Amikwo sections
of Awka to functioning as the main retail outlet for the city and neighbouring towns. It houses an estimated 5,000
lock-up shops and stalls all tightly packed into less than 35,000 square meters of space and has become infamous
for causing tremendous traffic chaos with a medley of shoppers, buses, wheel barrows all jostling for the limited
amount of space available.
The second largest market in Awka is Nkwo Amaenyi located further down on the busy Zik Avenue business
district artery. It is far smaller than Eke Awka with less than 100 market stalls in an area estimated at around 3,000
square meters.
6.2 Availability of Electricity

Refer again to investments in the power sector in the state which include the construction of a 1 x 7.5MVA
Injection Substation at ABS, Awka, and upgrading of the 7.5MVA Injection Substation at Agu Awka to a 15MVA;
while in Imo State, approval has been obtained for the construction of a new Oguta 33KV line valued at over N140
million, which will radiate from Egbu Transmission Company of Nigeria (TCN) station.
The last quarter of 2021 saw another boost in the power sector in Anambra State. Electricity consumers in Awka,
Ogidi, Ekwulobia and environs, Anambra State received further assurance from the Enugu Electricity Distribution
Company (EEDC) that they would begin to enjoy improved power supply.
This is following the commissioning of the National Integrated Power Project (NIPP) 2x60MVA 132/33KV station
at Awka, Anambra State by the Vice President of the Federal Republic of Nigeria, Professor Yemi Osinbajo, in the
company of the Governor of Anambra State, Chief Willie Obiano and the Managing Director, Niger Delta Power
Holding Company Limited (NDPHC), Mr Chiedu Ugbo.
Figure 6.1: New Awka Power Station 2021
6.3 Awka town in Perspective

Awka is an agricultural trade centre with rich farm produce like yams, cassava, corn [maize], palm oil and kernels
planted and harvest by the Igbo people of the surrounding area. Awka is the traditional home of the Igbo (Ibo)
blacksmiths; early bronze artifacts have been discovered in the vicinity, and the town’s artisans are still noted for
their metalworking and wood carving. In the 19th century, Awka’s Agballa oracle, which was subservient to the
supreme Igbo oracle at Arochukwu, was an active instrument of the hinterland slave trade.
38 | P a g e
Awka lies below 300 metres above sea in a valley on the plains of the Mamu River. Two ridges or cuestas, both
lying in a north–south direction, form the major topographical features of the area. The ridges reach the highest
point at Agulu just outside the Capital Territory. About six kilometers east of this, the minor cuesta peaks about 150
metres above sea level at Ifite –Awka.
Awka is sited in a fertile tropical valley but most of the original Rain forest has been lost due to clearing for
farming and human settlement. A few examples of the original rain forest remains at places like the Ime Oka
shrine. Wooded savannah grassland predominates primarily to the north and east of the city. South of the town on
the slopes of the Awka-Orlu Uplands are some examples of soil erosion and gullying.
Image 6.2: Map of Awka Town
39 | P a g e
6.4 Factory Space requirement
A 200 sq metre floor space will be sufficient for the project. This is equivalent to an average size 4 bedroom
house. This will house the machinery, store and administrative quarters.
6.5 Availability of Transportation Facilities

Awka’s road network has improved over the years and could be attributed to the opening up of new development areas
leading to the creation of new access roads and the tarring of previously untarred roads. The nature of roads in Awka by
2011 has been depicted in figure 6.4. In 2017, as shown in figure 6.4.2, 6 and table 3, the number of tarred and untarred
roads clearly surpassed that of 2006 and 2011. The number of tarred roads were counted to be 3360 while untarred is
1409.
Figure 6.4: Roads in Awka
Road Type Number of Roads Percentage (%)
Tarred 3360 70
Untarred 1409 30
Total 4769 100
Table 3: Road Type Distribution in 2017
Source: Authors Computation, 2018
Figure 6.4.2: Map of Awka road network
40 | P a g e
6.6 Availability of Ancillary Facilities
An industrial unit which manufactures parts or intermediaries, or provides services is an ancillary unit. A large part of its
production or services is used by another industrial taking. An ancillary unit is typically small with relatively small
investment in fixed assets in plant and machinery. So a farmers’ cooperative growing maize could be an ancillary unit for
livestock feed. There are about 250 registered farmers cooperatives in Awka Local Government area. In 2019, all 141
farmers cooperatives registered in the Awka south had a member count of about 3,000 farmers who where engaged in the
production of both food crops and livestock. Awka North as at 2018 boasted of 13 all women farmers cooperative who
continue to contribute immensely to the agricultural sector of the state. ECBS Company will partner with some of these
farmer cooperatives who will act as ancillary facilities that will provide much needed inputs for the feed mill.
By registering some of the cooperatives under the ECBS Feeds Input Aggregation Scheme (AFIAS) the company’s
factory will have a symbiotic relationship with farmer cooperatives who will be tasked to farm or source inputs like soya
beans, maize and raw materials for the company’s feed mill unit. This will immensely empower a lot of farmers in Awka
and environs and create further employment in the state. Ultimately, the feed mill in addition to sourcing materials from
states that have a comparative advantage in grain production, ECBS Company’s livestock food production arm will
supplement its raw material needs through AFIAS. The farmer cooperatives will also serve as off-takers for the project as
livestock farmers in these cooperatives will form part of the company’s target market.
6.7 Awka Land use growth pattern

Awka metropolis witnessed a remarkable growth between 1986 and 2016 to have more than tripled spatially from mere
3444.48 Km2 in 1986 to about 11,452.46 Km2 in 2016.
This growth is attributed to the sharp decline in farmland from 25,500.51 km 2 (37.53%) in 1986 to 1788.44 km2 (36.56%)
in 2000 and further declined to 10,037.07 km2 (29.82%) in 2016. The reduction in farmlands is a result of encroachment
on agricultural lands by developmental projects such as roads, houses, markets, school amongst others that has taken place
over time. The sharp decline in both light and dense vegetation is attributed to increase in built-up land in the area. Light
vegetation witnessed a considerable decline from 20,219.49 km 2 (29.06%) in 1986 to 4477.32 km2 (9.17%) in 2000 and
further reduced to 1869.32 km2 (5.55%) in 2016. Dense vegetation also witnessed a decline from 15,010.02 km 2 (22.09%)
in 1986 to 11,499.39 km2 (23.55%) in the year 2000 and 9082.47 km2 (26.98%) in 2016. Over the years, bare surface
increased slightly from 3761.37 km2 (55.54%) in 1986 to 5563.57 km2 (11.00%) in the year 2000 and recently witnessed a
decline from 5563.57 km2 to 1219.74 km2 (3.62%) in 2016. The decline in these land use types is mainly as a result of
urban expansion over the period of 30 years.
The period of thirty (30) years from 1986 to 2016 witnessed considerable increase in population in the study area, this can
be inferred from the fact that the land area covered by built-up area, comprising of residential, commercial, industrial and
institutional land uses are on the increase, thereby affecting other land use/cover categories. For instance, the maps
confirmed that built up areas increases from 5.07% to 19.32% from 1986 and 2000. Further increase from 19.32% to
34.02% was witnessed from 2000 to 2016.
6.8 Communication Facilities

There are two independent newspaper dailies in the Anambra State capital of Awka; Fides Communications and Orient
daily. The third is National Light which is a flagship publication of the Anambra State Government-owned
Anambra Newspapers and Printing Corporation (ANPC). The state also hosts 4(four) FM Stations inclusive of the Federal
Radio Corporation of Nigeria. Channel 5 NTA Awka, Channel 27 Anambra Broadcasting Service and Channel 39
Silverbird TV Awka are the three TV stations in the Anambra State capital. In addition, MTN, Airtel, GLO and 9 mobile
services are accessible in Awka, making the town an optimal communication centre.
41 | P a g e
6.9 Factory layout plan
42 | P a g e
7.0 ENVIRONMENTAL ASPECTS
The following environmental aspects need to be considered.
Air Quality
Figure 7.0 : Polluted River in Awka
Livestock feeding operations produce several
types of air emissions, including gaseous and
particulate substances, and concentrated livestock
feeding operations (CAFOs) produce even more
emissions due to their size. The primary cause of
gaseous emissions is the decomposition of
livestock manure, while particulate substances are
caused by the movement of livestock.
The most typical pollutants found in air

surrounding CAFOs are ammonia, hydrogen
sulfide, methane, and particulate matter, all of
which have varying human health risks. Most
manure produced by CAFOs is applied to land
eventually and this land application can result in
air emissions.
Odours
One of the most common complaints associated with CAFOs are the Odours produced. The Odours that CAFOs emit are a
complex mixture of ammonia, hydrogen sulfide, and carbon dioxide, as well as volatile and semi-volatile organic
compounds. These Odours are worse than smells formerly associated with smaller livestock farms. The anaerobic reaction
that occurs when manure is stored in pits or lagoons for long amounts of time is the primary cause of the smells. Odours
from waste are carried away from farm areas on dust and other air particles.
Insect Vectors
CAFOs and their waste can be breeding grounds for insect vectors. Houseflies, stable flies, and mosquitoes are the most
common insects associated with CAFOs. Houseflies breed in manure, while stable and other flies breed in decaying organic
material, such as livestock bedding. Mosquitoes breed in standing water, and water on the edges of manure lagoons can
cause mosquito infestations to rise. Flies can change from eggs to adults in only 10 days, which means that substances in
which flies breed need to be cleaned up regularly.
Antibiotics
Antibiotics are commonly administered in livestock feed. Antibiotics are included at low levels in livestock feed to reduce
the chance for infection and to eliminate the need for livestocks to expand energy fighting off bacteria, with the assumption
that saved energy will be translated into growth. The main purposes of using non-therapeutic doses of antimicrobials in
livestock feed is so that livestocks will grow faster, produce more meat, and avoid illnesses. Supporters of antibiotic use say
that it allows livestocks to digest their food more efficiently, get the most benefit from it, and grow into strong and healthy
livestock. The trend of using antibiotics in feed has increased with the greater numbers of livestock held in confinement.
The more livestock that are kept in close quar ters, the more likely it is that infection or bacteria can spread among the
livestock. Seventy percent of all antibiotics and related drugs used in the U.S. each year are given to beef cattle, hogs, and
chickens as feed additives. Nearly half of the antibiotics used are nearly identical to ones given to humans. There is strong
evidence that the use of antibiotics in livestock feed is contributing to an increase in antibiotic-resistant microbes and
causing antibiotics to be less effective for humans. Resistant strains of pathogenic bacteria in livestock, which can be
transferred to humans thought the handling or eating of meat, have increased recently. This is a serious threat to human
health because fewer options exist to help people overcome disease when infected with antibiotic-resistant pathogens. The
antibiotics often are not fully metabolized by livestock, and can be present in their manure. If manure pollutes a water
43 | P a g e
supply, antibiotics can also leech into groundwater or surface water.
Table 7.0: Elements considered for environmental impacts
Element Element Element

1 Land Use 2 Soil 3 Ecology
Noise Quality and
4 Subsidence and Landslide 5 6 Vehicular Movement
Ground Vibration
7 Water Resources 8 Hydrology 9 Water Quality
10 Air Quality 11 Solid Waste 12 Human Settlement
Socio-economic Site of Cultural
13 14 Aesthetics 15
Conditions Heritage and Scenic
Importance
Environmental Impacts
During Operation Phase

Table7.1: Environmental impacts during operation phase
S.
Attributes Problem Impacts due to Plant
No
1 Land Use Area is industrial/agricultural land.
2 Soil Positive impact due to horticulture and plantation.
No major impact due to vegetation and plantation in
3 Ecology
the surrounding area.
4 Subsidence and Landslide Problems No impact.

Depletion of water resources due to water
5 Water Resources
withdrawal.
Discharge of sewage and storm water run-off may
6 Water Quality cause deterioration of water quality.
Increase in TSPM and RPM levels and impairment of

7 Air Quality ambient air quality.
8 Noise Quality Increase in noise level in the surrounding area.
Traffic congestion/accidents in conjunction with loss

9 Vehicular Movement
in air quality.
Inappropriate disposal of garbage/ sewage could be
10 Solid Waste
hazardous.
11 Aesthetics Loss in environ-aesthetics to some extent.
44 | P a g e
Site of Cultural, Historical and Impact on the site of Cultural, Historical and Scenic
12 Importance, if available
Scenic Importance
No impact as no relocation/resettlement required if

13 Human Settlement
industrial area.
Increased economic activities in the region resulting
14 Socio-Economic condition in new jobs and better quality of life of people.
Environmental Management
The mitigation measures including prevention and control for each environmental component have
been delineated in the sub-sections that follow.
During Operation Phase
Table7.2: Mitigation measures during operation phase
S. No Attributes Problem Impacts due to Plant

1 Land Use Development of green belt in and around the plant.
2 Soil Tree plantation all around the plant.
3 Ecology Development of green belt in and around the plant.
45 | P a g e
There shall be a perpetual demand on water resources. The
water requirement in the plant will have no adverse effect on the
4 Water Resources water source and the water required at the plant can be
adequately met
from the current allocation to the plant from the community.
The plant shall take into consideration the local geological,

5 Hydrology geomorphological and hydro-geological settings.
There will be substantive generation of waste water at the plant

6 Water Quality premises besides the use at the staff quarters for sanitation
purposes. This waste water will be collected in septic tanks.
Provision of suitable bag filters for dust control. Provision of leak

proof and properly covered transport equipment to prevent dust
from being airborne. Adequate dust suppression and extraction
Air Quality facilities at material handling and transfer points. Provision of green
7 belt around the plant. Provision of a well-equipped workshop for
regular maintenance of vehicles in order to control emissions
Noise abatement at source by choosing machinery and equipment

suitably. Proper mounting of equipment and ventilation systems.
Noise Quality and Provision of noise insulating enclosures or padding, wherever
8 Ground Vibration possible. Provision of personal protective equipment for workers.
Dense belt of trees to act as acoustic barriers.
Provision of wide tar/concrete road. Provision of a well-equipped

9 Vehicular Movement workshop for regular maintenance of vehicles in order to control
emissions.
No solid waste will be generated besides from the staff quarters.

10 Solid Waste Proper disposal of the waste based on terrain, landscaping, drainage
& aeration. Septic tanks will be constructed at the staff quarters.
11 Aesthetics Landscaping and use of vegetation.

12 Human Settlement Not applicable.
Maintaining good communication with local communities before,
Socio-Economic during and after construction. Training of local personnel for
13 Conditions specific (skilled) positions. Welfare measures for local populace.
Solutions Adopted in the Technical Concept

46 | P a g e
The guidelines for various industrial units, stipulate “limiting values” for water quality, air quality and
noise quality.
For the project, adequate pollution control equipment has to be considered. The general requirement
and measures to be considered for arresting the pollutants is tabulated in the following table.
Table 7.3: Estimated release of pollutants
S.No. General Requirement Measure Considered

1 Water Quality
For plant
A Treated Effluent discharges should have a pH Sewage treatment plant of adequate
in the range of 6-9. capacity to control the pH and TSS.
2 Air Quality
For Plant
The air quality should conform to the limiting Bag Filters & modern burner with precise
A values of SPM. fuel dosing system should be considered
for the air quality.
3 Noise Quality
For Plant
A maximum increase in background levels of The plant should be designed not to
3 dB (A) or the following levels: generate more than 60 dB (A) maximum.
Residential 55/45 dB (A) All high noise emitting machinery such as
the roller mills will be enclosed in a
Industrial 75/70 dB (A)
housing (lined with a 2inch glass wool) so
A Commercial 65/55 dB (A) as to minimize sound emissions outside
the plant. The walls of the structure
housing the machinery will be made of
mud bricks to absorb the sound
Occupational Health and Safety
All workers in the plant, crusher and mine locations will be provided with and shall be mandated to use
protective gear and equipment to ensure their personal safety. Safety boots, gloves, eye goggles, helmets, nose
masks (wherever necessary), ear plugs, reflective jackets and other protective equipment will be provided by
the company. Trainings on safety for all new recruits as well as refresher courses on safety for the regular staff
will be conducted regularly from time to time in order to ensure that safety procedures are followed at all times.
A safety inspector shall be appointed (plant manager) and an OHS committee comprising of employees shall be
formed to monitor and ensure compliance to safety norms and procedures.
47 | P a g e
8.1 PROJECT IMPLEMENTATION & SCHEDULE
The key factors that would facilitate successful and timely project implementation are:
 Proper choice of technology and machinery suppliers.
 Adequate diligence in formulating the technical concept and system design.
 Proper choice of contractors for civil construction and erection of equipment.
 Formulation of an effective project team led by an experienced Project Manager.
 Establishment of an efficient system for project planning & monitoring including reporting procedures
for progress review & co-ordination.
Implementation Strategy
Typically, any project has four core dimensions which are as follows –
 Engineering: this directly impacts the smooth operations of the plant over its entire life.
 Procurement: is critical on account of the impact that it has on investment and performance benchmarks
and also in ensuring the choice of appropriate technology.
 Construction: is critical in terms of its impact on completion quality and the duration of the project phase.
 Project Management: other than its obvious impact on project timeliness it also contributes to risk
minimization for the promoter.
Implementation Schedule
Pre-project Activities Include:
1. Hydrological investigations for ensuring the availability of the requisite quantum of water.
2. Receipt of requisite clearances from competent authorities with respect to :
 Environmental clearance
 Sanction and supply of power
 Sanction and supply of water
 Tying up sources of funds for the project to achieve financial closure
 Procurement of factory site
48 | P a g e
3. Site Preparation & Levelling of land.
The table given below shows the project schedule:
Table 8: Project Schedule
Weeks
S/.No. Activity
1 2 3 4 5 6 7 8 9 10 11 12
1 Procurement, preparation of site and
hiring of people
Installation of Machineries
2
3 Training & Commissioning of People

4 Trial Production Runs
49 | P a g e
9.1 COST PRESENTATION
Project cost/ Total Investment
Summary:
Table 9.0.1: Project Summary
Plant Capacity: 3 to 5 Tons per day (1,000 Tons per annum)

Production volume 20% to 25% of capacity
No. of Shift: One (8 hours per shift) per day
Working Days in Year: 312
Gross profit margin: 30.45%
IRR : 123%
NPV : N31 Million
Cost of Project:
The total cost of the project is estimated at N10 Milllion as per the particulars given in the following table
Table 9.0.2: Project Cost

=N= =N=
A.
Non-Cash Assets 70,000,000.00
B.
Cash at hand and Bank 10,000,000.00
Purchase of Equipment:
1 Mixer (5 ton per hour capacity) locally fabricated 1,500,000.00
2 Hammer mill (crusher) Locally fabricated 1,800,000.00
3 Weighing scale (5 tons) 550,000.00
4 30 kva Generator-Perkins 1,200,000.00
5 5000 litres Geepee water tank 300,000.00
6 Silo for grain storage 300,000.00
7 Freight, Transportation and Installation 50,000.00

5,400,000.00
Working Capital & Raw Materials:
8 Soya bean 650,000.00
9 Cotton Seed 700,000.00
10 Fish Meal 450,000.00
11 Maize 500,000.00
12 Bone-Meal 50,000.00
13 Minerals/Vitamins 100,000.00
14 Brewer Spent grains 100,000.00
15 cattle premix 350,000.00
16 Packaging 300,000.00
17 Salaries, rent and running expenses 1,400,000.00
50 | P a g e
4,600,000.00

B. Total Growth 10,000,000.00
C. Capital Required 10,000,000.00
Means of Finance
The table given below shows the means of finance:
Table 9.0.3.1: Means of Finance

First stage of project
S. No. Particulars Value (=N=)

1 Promoters’ Equity 10,000,000.00
2 Term loan from -
Financial
institution
Total 10,000,000.00
Table 9.0.3.1: Means of Finance
Second/expansion stage of project

S. No. Particulars Value (=N=)
1 Promoters’ Equity 10,000,000.00
2 Term loan 190,000,000.00
Total 200,000,000.00
51 | P a g e
The term loan has been arrived based on the breakup of individual investment item and bank’s financing
pattern .
9.2 Capital Costs

Land, Building & Civil Works
The total land area of the plant is projected at a minimum of about 300 square meters. The built-up area
required by the plant is estimated at 200 square meters. The cost for civil works required for machine
installation has been incorporated in the general expenses.
Machinery
The table given below shows the cost of machinery:
Table 9.1.1 : Cost of Machinery
Total Cost
S. No. Description Quantity
(=N=)
Mixer (5 ton per hour capacity)

1 locally fabricated with 1
pellet machine and dust
collector 1,500,000.00
2 Hammer mill (crusher) Locally 1
fabricated with boiler 1,500,000.00
3 Weighing scale (5 tons) 1 550,000.00
4 30 kva Generator-Perkins 1 1,200,000.00
5 5000 litres Geepee water tank 1 300,000.00
6 Silo for grain storage 1 300,000.00
7
50,000.00
Transportation cost
1
Total Cost 5,400,000.00
52 | P a g e
Other Fixed Assets
The table given below shows the cost of other fixed assets:
Table 9.1.2: Cost of other fixed assets
Amount
S. No. Particulars Qty. (Nos)
(=N=)
1 Office Equipment Sundry 50,000.00
Sundry
2 Furniture and Fixture 150,000.00
1
3 Computer System 50,000.00
4 Fire Fighting 4 20,000.00
270,000.00
Pre-Operating Expenses
Preliminary Expenses
The table given shows the preliminary expenses:
Table 9.1.3: Licensing Expenses
S. No. Particulars Estimated Amount (=N=)

1 NAFDAC Expenses 150,000.00
Total 150,000.00
Preoperative Expenses
Expenses incurred prior to commencement of commercial production are covered under this
head that total
Pre-operative expenses include establishment cost, rent, taxes, other miscellaneous expenses.
Based on the project implementation schedule, the expected completion dates of various activities and the
estimated phasing of cash requirements, interest during construction has been computed. Other expenses, under
this head have been estimated on a block basis, based on information available for similar projects.
9.2 Operating Cost

Cost of Raw Materials
The table given below shows the costing of raw materials:
53 | P a g e
Table 9.2: Cost of Raw Materials
Unit of
Description Measure Quantity Unit Price (n) Amount(N) Total
Soya bean kg 2,653 245.00 33,000.00 650,000.00
Cotton SeEd kg 7,000 100.00 48,000.00 700,000.00
Fish Meal-N400/kg- bone
meal-N70/kg Minerals and
salt -N150/kg kg 726 620.00 2,760.00 450,000.00
Maize grain & Maize offal kg 3,226 155.00 90,000.00 500,000.00
Palm kernel cake Kg 500 100.00 7,920.00 50,000.00
Groundnut cake Kg 250 400.00 396,000.00 100,000.00
Brewer Spent grains Kg 1,000 100.00 24,000.00 100,000.00
cattle premix Kg 292 1,200.00 888 350,000.00
Sacks Pc 1,500 200.00 50 300,000.00
Grand total 3,200,000.00
Note: The cost for packing material (sack) is excluded from the annual cost of raw materials. It is included in distribution expenses
54 | P a g e
Land Lease Charge
Land Lease Rate: The land having an area of 200 square meters has been considered on lease @ N600,000.00
per annum for first three years.
The table given below shows the rate of land lease:
Table 9.3: Land Lease Charges
Lease Charges
Per Annum
S. No. Year (=N=)
1 1st Year 600,000.00

2 2nd Year 600,000.00
3 3rd Year 600,000.00
Cost of Utilities
The table below shows the costing of utilities:
Table 9.4: Cost of Utilities
Average costs per annum

I t e m Quantity =N=
Fuel 4,800.00 litres 792,000.00

Water 192,000.00 litres 440,000.00
Electricity 4,800.00 units 288,000.00
Lubricants 200.00 litres 220,000.00
Others
TOTAL 1,740,000.00
55 | P a g e
Manpower Costing
The table below shows the costing of manpower:
Table 9.5: Manpower Costing
Gross No. Reqd. (for

Salary/Wages Total Salary per
Personnel No. Shifts Monthly new/Expansion
Per Worker (N) Annum (N)
Wage Bill (N) Projects)
MD/CEO 1 1 150,000.00 150,000.00 1,800,000.00 1

Manager 1 1 50,000.00 50,000.00 600,000.00 1
Supervisor 1 1 30,000.00 30,000.00 360,000.00 1
Accountant 1 1 55,000.00 55,000.00 660,000.00 1
Farm Workers 9 9 25,000.00 225,000.00 2,700,000.00 9
Receptionist 1 1 19,166.67 19,166.67 230,000.00 1
Store keeper 1 1 25,000.00 25,000 300,000.00 0
Security Guards 2 2 19,166.67 38,333.33 460,000.00 2
Total 17 17 373,333.34 592,500 7,110,000.00 17
Sales Realization
It is assumed that 20-25% capacity utilization will be achieved during first year of operation, 32.5% in the
second year and 35% from the third year onwards. The average selling price is calculated on the basis of the
retail prices prevalent in Anambra State at the time of making this report.
Accordingly, the revenues are:
Table 9.6: Sales Realisation
=N=
Total sales realization at 100% 385.56
First year 25% 56,263,397.93
Second Year 32.5 % 83,540,189.74
Third Year 35% 84,548,204.09
Estimated Cost of Production & Profitability
The profitability projections have been worked out for 3(Three) years; at 25% capacity utilization during first
56 | P a g e
year of operation, 32.5% in second year and 35% from third year onwards and following assumptions and basis
as relevant and applicable to Anambra State have been considered while preparing the profitability.
 Repairs & maintenance have been taken as @7.5% p.a. on fixed assets.
 Cost of capitale has been calculated @11.25% p.a. on owner’s capital.
 Insurance charges @1% on all assets per year.
 Power & water charges increases by 33% in year two as a function of productivity.
 Administrative expenses are projected to be fairly constant.
 written off from II year @10% every year in next 10 years.
 Straight Line Depreciation has been charged taking useful life for equipment and machines to be 10 years
 Insurance, lease rent & interest has been taken as fixed cost for calculating B.E.P.
 Income tax has been charged @30% every year as per Company Income Tax rate.
57 | P a g e
10.1 FINANCIAL ANALYSIS
Table 10.1: Projected Statement of Financial Position
Year 1 (N) Year 2 (N) Year 3 (N)
Assets
Cash 9,334,530.44 17,209,205.07 25,339,693.60

Debtors 6,251,488.66 9,282,243.30 9,394,244.90
Investment 609,139.18 476,935.24 321,055.85
Inventory 3,125,744.33 4,641,121.65 4,697,122.45
Fixed Assets 75,400,000.00 75,400,000.00 75,400,000.00
Accumulated Depreciation (540,000.00) (1,080,000.00) (1,620,000.00)

Prepayments
TOTAL ASSETS 94,180,902.61 105,929,505.27 113,532,116.79
Liabilities
Accounts Payable 1,035,802.46 1,149,740.73 1,276,212.21
Long Term Liabilities - - -
Other Liabilities

TOTAL LIABILITIES 1,035,802.46 1,149,740.73 1,276,212.21
Equity
Equity 1,000,000.00 1,000,000.00 1,000,000.00
Dividend Payments 478,032.10 3,319,663.23 3,891,069.76
Directors Account 91,082,806.60 96,402,735.14 102,609,082.89

Accumulated Net Surplus 265,573.39 1,844,257.35 2,161,705.42
General Reserves 318,688.07 2,213,108.82 2,594,046.51
Total Liabilities and
Equity 94,180,902.61 105,929,505.27 113,532,116.79
Notes:
The company projects to attain a financial position of about N94,180,902.61 in the first year.
This is expected to increase by about 12.47% in year 2(two) to N105,929,505.27. Current
ratio is projected at 18.7:1 in year one, and in the second year, current assets will cover
liabilities by 27.5 to 1.
Table 10.2: Projected Statement of Income

Year 1 (=N=) Year 2 (=N=) Year 3 (=N=)
56,263,397.9 83,540,189.7 84,548,204.0
Turnover
3 4 9
58 | P a g e
39,129,167.0 58,099,193.4 58,800,231.1
Cost of Sales
8 8 6
17,134,230.8 25,440,996.2 25,747,972.9
Gross Financial Margin
5 6 3
impairment losses
785,257.44 800,411.22 800,971.22
16,348,973.4 24,640,585.0 24,947,001.7
Net Financial Margin
1 5 1
Loan Interest
- - -
13,651,835.8 12,563,414.4 12,563,414.4
Administrative & Op Exp
3 4 4
540,000.0 540,000.0 540,000.0
Accumulated Depreciation
0 0 0
Net income from operations
(after taxes) 2,157,137.58 11,537,170.61 11,843,587.27

- -
Excess of Income over Expenses
2,157,137.58 11,537,170.61 11,843,587.27

-
1,094,844.0 4,425,714.5 5,041,022.9
Total Tax Paid
3 9 3
1,062,293.5 7,111,456.0 6,802,564.3
Net Profit After Tax
6 1 4
265,573.3 1,844,257.3
Profit B/f
- 9 5
1,062,293.5 7,377,029.4 8,646,821.6
Total
6 0 9
Appropriation:
478,032.1 3,319,663.2 3,891,069.7
Dividend Payments
0 3 6
318,688.0 2,213,108.8 2,594,046.5
General Reserves
7 2 1
265,573.3 1,844,257.3 2,161,705.4
C/f
9 5 2
Company Income Tax Computation
Cost of Fixed Assets 5,400,000.00 5,140,000.00 4,369,000.00

Additional Fixed Assets
Initial Allowance 162,500.00
Annual Allowance 97,500.00 771,000.00 655,350.00
59 | P a g e
260,000.00 771,000.00 655,350.00
TWDV C/F 5,140,000.00 4,369,000.00 3,713,650.00
Year 1 Year 2 Year 3
Profit/(Loss) as per account 2,157,137.58 11,537,170.61 11,843,587.27
Add: Depreciation 1,508,000.00 3,016,000.00 4,524,000.00
Adjusted Profit 3,665,137.58 14,553,170.61 16,367,587.27
Deduct Capital Allowance
Initial Allowance 162,500.00 - -
Capital Allowance For the Yr 97,500.00 771,000.00 655,350.00
260,000.00 771,000.00 655,350.00

Restricted to 662/3 of Adjusted
Profit 2,443,180.71 9,701,143.53 10,910,633.67
Unabsorbed Capital Allowance c/f - - -
Taxable Profit 3,405,137.58 13,782,170.61 15,712,237.27
CIT @ 30% of Taxable Profit 1,021,541.27 4,134,651.18 4,713,671.18
Education Tax @ 2% of Adjusted

Profit 73,302.75 291,063.41 327,351.75
Total 1,094,844.03 4,425,714.59 5,041,022.93

Grand Total-Taxes 1,094,844.03 4,425,714.59 5,041,022.93
Notes:
The company projects a turnover of about N56,263,397.93 in the first year following expansion.
This turnover is expected to increase by 48.48% to about N84,548,204.09
Gross margin in the first year is projected to be N17,134,230.85 and will increase to about N25,440,996.26
by year 2 following the proposed expansion.
Table 10.3: Projected Statement of Cash flows
For
year(s)___3_______ Year 1 (N) Year 2 (N) Year 3 (N) (N)
Total
Beginning Cash
Balance 10,000,000.00 9,334,530.44 17,209,205.07 10,000,000.00
Cash Receipts
60 | P a g e
Cash Sales -Note 1 46,886,164.95 69,616,824.78 70,456,836.74 186,959,826.47
Grants/Other
inflows - - - -
Loans or Other -
Total Cash Receipts 46,886,164.95 69,616,824.78 70,456,836.74 186,959,826.47
Cash
Disbursements
Cost of Input-Note 2 33,137,057.52 48,415,994.56 49,000,192.63 130,553,244.71
Gross Wages-Note 3 7,110,000.00 7,110,000.00 7,110,000.00 21,330,000.00
Payroll Expenses 71,100.00 71,100.00 71,100.00 213,300.00
1% Processing Costs - -
Light and Power
Note 4(Office &
Operating) 1,080,000.00 1,440,000.00 1,440,000.00 3,960,000.00
Note 5-Repairs and
Maintenance 304,735.83 406,314.44 406,314.44 1,117,364.71
Advertising-Note 6 600,000.00 600,000.00 600,000.00 1,800,000.00

Note- 7 Licensing,
F&F, Car, Delivery
and Travel 2,150,000.00 600,000.00 600,000.00 3,350,000.00
Note 8-Licensing
and legal expenses 200,000.00 200,000.00 200,000.00 600,000.00
Rent-Note 9 600,000.00 600,000.00 600,000.00 1,800,000.00
Telephone-Note 10 876,000.00 876,000.00 876,000.00 2,628,000.00

Supplies and
Utilities-Note 11 660,000.00 660,000.00 660,000.00 1,980,000.00
Insurance 100,000.00 100,000.00 100,000.00 300,000.00
VAT 662,741.15 662,741.15 662,741.15 1,988,223.45

Total Cash
Disbursements 47,551,634.50 61,742,150.15 62,326,348.22 171,620,132.87

Net Cash Flow (665,469.56) 7,874,674.63 8,130,488.52 15,339,693.60
Adjustments to Net Cash Flow -

61 | P a g e
(+) New Owner
Investment - - -
(-) Old Debt
Payment - - -
(-) Loan Paymts - - - -

(-) Owner
Withdrawals - - - -
Adjusted Net Cash
Flow (665,469.56) 7,874,674.63 8,130,488.52 15,339,693.60

Ending Cash
Balance 9,334,530.44 17,209,205.07 25,339,693.60 25,339,693.60
Notes:
Assumptions:
1) It is assumed that the management of the company will contribute 100% of the finance required
for the start-up in the phase one of the project. Phase two of the project is projected to start in year
four. Debt finance of N190 million will be required with total growth expenses of N200 million
and a 5% equity contribution by ECBS Company’s management. The projected cash flow
statement captures three years of operations.
Notes:
Note 1-Sales Figure is Based on market projections and maximum production capacity of plant.
Breakdown is as follows:
Type Unit Price (₦) Unit Sales/day Value (₦) Monthly Sales (₦)
Poultry feed-Grower
Mash-(8weeks to 17
weeks) 250.00 150.00 37,500.00 975,000.00
Poultry feed-Layer
mash 240.00 250.00 60,000.00 1,560,000.00
Fish feed 500.00 150.00 75,000.00 1,950,000.00

Vegetable oil-10%
yield from soya bean 1,000.00 11.55 11,550.00 300,300.00
5,162,300.00
Total
It is also assumed that turnover will peak following moratorium period. Sales are projected to
increase at about 1% monthly.
 Note 2-Cost of Input is 69.55% of sales figure or turnover. This is based on industry
averages.
 Note3-Salaries and Wages have been computed according to prevailing industry Standards.
Refer to Payroll
 Note 4-Light and power -Estimated to be ₦1,080,000.00 in in the first year.
62 | P a g e
 Note 5-Repairs and maintenance- projected at ₦0.3 million in the first year.
 Note6-Advertising- The company will place 3 radio adverts monthly at a cost of

₦15,000.000 and print media costs are projected at about ₦35,000 monthly in the first year
bring advertising costs to a total of ₦50,000.00 monthly or N600,000 per annum.
 Note 7-Licensing, F & F,Car, Delivery and Travel: are projected at ₦100,000.00 per
month. In month 6, the company will make major expenses which will include the purchase
of a delivery truck Valued at about N1.08 million. Several items of furniture will also be
purchased costing about N0.27 million (Ref Table 9.1.2).
 Note 8-Licensing and legal expenses- This includes legal expenses on retainership at
N50,000.00 per annum and commencement of NAFDA registration costing about N0.15
million (Ref Table 9.1.3)
 Note 9-Rent is set at N600,000.00 per year.
 Note 10-Telephone expenses have been pegged at ₦120,000 per annum being an average
daily consumption of ₦4,000.
 Note 11- Utilities are projected at ₦660,000.00 per annum.
63 | P a g e
APPENDICES:
1. NAFDAC GUIDELINES
National Agency for Food & Drug Administration &

Control (NAFDAC)
Registration & Regulatory Affairs (R & R)

Directorate
64 | P a g e
GUIDELINES FOR REGISTRATION OF ANIMAL FEEDS
MADE IN NIGERIA
65 | P a g e
1. General
1.1. These Guidelines are for the interest of the general public and in particular, manufacturers of Animal Feed
made in Nigeria.
1.2. It is necessary to emphasize that, no Animal Feed shall be manufactured, imported, exported, advertised,
sold, distributed or used in Nigeria unless it has been registered in accordance with the provisions of
NAFDAC Act CAP N1 (LFN) 2004, other related Legislations and the accompanying Guidelines.
2. Applications
2.1. A written application for registration of Animal Feed made in Nigeria should be made on the company’s
letter head paper to the Director-General (NAFDAC), ATTENTION: The Director, Registration and
Regulatory Affairs (R & R) Directorate, 1 st Floor, NAFDAC Office Complex, Isolo Industrial Estate,
Oshodi-Apapa Express Way, Isolo, and Lagos State.
2.2. An online application form for Product Registration should be purchased at;
http: //registration.n afdac.gov.ng and completed.
2.3. A separate application form shall be submitted for each product.
Step I
3. Documentation
3.1. The application letter and print-out of the registration form are to be accompanied with two (2) sets of the
following documents are to be submitted at the Liaison Office of the Director (LOD), R & R Directorate,
1st Floor, NAFDAC Office Complex, Oshodi-Apapa Express Way, Isolo, Lagos State or any NAFDAC
Office (outside Lagos):
3.1.1. Evidence of Business Incorporation. In-case of Micro, Small and Medium Enterprises (MSMEs);
evidence of Business name.
3.1.2. Evidence of payment to the Agency.
3.1.3. Contract Manufacturing Agreement (where applicable).
3.1.4. Evidence of Registration of Brand Name with Trademark Registry in the Ministry of Industry,
Trade and Investment. This should be done in the name of the owner of the Trademark/Brand name
as the case may be.
3.1.5. Evidence of satisfactory Inspection issued by the relevant Directorate or Good Manufacturing
Practice (GMP) certificate for product line (companies with registered products).
3.1.6. Product Labels/artwork.
3.1.7. Comprehensive Certificate of Analysis. The certificate of analysis must be presented on a
66 | P a g e
letter-headed paper of the Quality Control Laboratory where the sample was
tested/evaluated and should contain the under listed information:
3.1.7.1. The brand name of the product
3.1.7.2. The batch number of the product
3.1.7.3. The manufacturing and expiry dates
3.1.7.4. The name, designation and signature of the analyst
Step II
4. Product Approval Meeting
4.1. Upon satisfactory Documentation review, GMP inspection of the production facility and laboratory
analysis of product, products are presented for Approval Meetings.
4.2. For products labels with compliance issues, compliant artworks may be submitted with a commitment
letter from manufacturer (stating that the commercial products will be in compliance).
Step III
5. Issuance of Notification
5.1. For products approved at the meeting, Notification of Registration is issued to the applicant while
Compliance Directive is issued to those not approved.
6. Labelling Information
6.1. Labelling should be informative, accurate and in conformance with the Agency’s Regulations.
7. Tariff
7.1. See Tariffs section.
8. Note
8.1. Failure to comply with these requirements may result in the disqualification of the application or lead to
considerable delay in the processing of registration.
8.2. A successful application will be issued a Certificate of Registration with a validity period of five
(5) years.
8.3. Registration of a product does not automatically confer Advertising Permit. A separate application and
subsequent approval by the Agency shall be required if the product is to be advertised. Simultaneous
submission of registration and advertisement applications are allowed.
8.4. NAFDAC reserves the right to revoke, suspend or vary a certificate during its validity period
67 | P a g e
8.5. Filing an application or paying an application fee does not confer registration status.
8.6. Failure to respond promptly to queries or enquiries raised by NAFDAC on the application (within 90
working days) will automatically lead to the closure of the Application.
8.7. The time line for product registration from acceptance of submissions to issuance of Registration
number is one hundred and twenty (120) working days.
8.8. Please note that the clock stops once compliances are issued.
All correspondences should be addressed

to:- Director-General (NAFDAC),
Attn: The Director
Registration and Regulatory Affairs Directorate,
National Agency for Food and Drug Administration and Control (NAFDAC),
Ground Floor, NAFDAC Office Complex
Isolo Industrial Estate
Apapa-Oshodi Expressway, Isolo, Lagos
NAFDAC website:
www.nafdac.gov.ng E-mail:
registration@nafdac.gov.ng
Telephone no.: +234-1-4772452
All submissions should be made at the Office of the Director, R & R,

Ground Floor, NAFDAC Office Complex, Isolo Industrial Estate, Oshodi-
Apapa Express Way Isolo, Lagos or the nearest NAFDAC Office (outside
Lagos).
REFERENCES
 Article on Food Production to Increase with Ban on Open Grazing,
68 | P a g e
https://guardian.ng/features/agro-care/food-production-to-increase-with-
ban-on-open-grazing, Access date 14th September 2021
 Nse-Nelson, F.A. Osondu, K.R. Oke, U.R. and Chux, J.C. ,Economic
Analysis Of Beef Marketing In Awka North Local Government Area Of
Anambra State, Nigeria, Journal of Tropical Agriculture, Food,
Environment and Extension Volume 16 Number 3 (September 2017) pp.
9 – 14
 Elsadik M.A , Badamasi S.M, Research On Impediment Observed In

Poultry Farming In Katsina State, Northern Nigeria,
,https://www.researchgate.net/publication/281368012_impediment_obse
rved_in_poultry_farming_in_katsina_state_northern_nigeria, Access
date 14th September 2021
 IFIF, Report on The Global Feed Industry, https://ifif.org/global-

feed/industry, Access date 15th September 2021
 Theophilus Miebi Gbigbi and V.A.A. Chuks-Okont, Report on

Performance analysis of poultry feed marketers inDelta State,
Nigeria,https://aipublications.com/uploads/issue_files/3IJREH-
JUL20202-Performance.pdf
 Benadine N., Article on Different types of poultry

feeds,https://agric4profits.com/different-types-of-poultry-feeds/, Access
date 17th September 2021
 Joseph A., Article on Types of Fish feeds in Nigeria,

https://infoguidenigeria.com/types-fish-feed-nigeria/, Access date 17 th
September 2021
 Akinbobola A, Article on Nutritional Requirements of Chicks, Pullets

and Layers, https://www.livestocking.net/nutritional-requirements-
chicks-pullets-layers/, Access date 17th September 2021
 EEDC, Article on Improved Power Supply in Anambra and Imo State,

https://enugudisco.com/index.php/36-press-releases/news/460-
improved-power-supply, /, Access date 17th September 2021
 NAFDA, Guidelines for Registration of Animal Feeds Made in Nigeria,

https://www.nafdac.gov.ng/wp-
content/uploads/Files/Resources/Guidelines/R_and_R_Guidelines/LOC
AL/Guidelines-for-Registration-of-Animal-Feeds-made-in-Nigeria.pdf
 NBS, Unemployment and Underemployment report,

https://www.nigerianstat.gov.ng/pdfuploads/Q2_2020_Unemployment_
Report.pdf
69 | P a g e

ECBS Company Feasibility Study Main

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

ECBS Company Feasibility Study Main

Uploaded by

Copyright:

Available Formats

ECBS Company

Livestock feed feasibility report

Company Registered Address: Jos, Plateau state, Nigeria

Terms & conditions and

3.8 Packaging & Transportation 20

Potential for Marketing

5.4 Raw Material Consumption 34

6.2 Awka town in Perspective 40

6.3 Factory Space requirement 41

AFIAS ECBS Feeds Input Aggregation Scheme

BEP Break Even Point

CUSP Caltech-USGS Seismic Processing

DCP Digestible Crude Protein

DSCR Debt Service Coverage Ratio

EMP Environment Management Plan

EPI Expanded Program on Immunization

ETP Effluent Treatment Plant

ISPs Internet Service Providers

NPV Net Present Value

ORC Out Reach Clinics

RPM Revolutions Per Minute

TSPM Total Suspended Particulate Matter

TSS Total Suspended Solids

WFP World Food Program

The purpose of this report is to showcase the viability of the

MILLION WHOLLY FINANCED WITH demand of

(viii) Cost Presentation and Financial Analysis:

Plant Capacity: 3 to 5 Tons per day (1,000 Tons per annum)

2.1 JUSTIFICATION OF THE PROJECT

Serial Number Fodder Resource for Large Ruminants

Poultry, Fish and Cattle Population

Benefits of Commercially Manufactured Feed

5 Triticum Wheat 13 9.0 87 3.8 3.4

The Key Stakeholders

Manufacturers/Importers: Persons or firms that manufacture or import feed.

3.4 Pricing & Marketing Strategies

Institutional buyers can be split into following groups:

1. Poultry farmers rearing birds for egg production(Layers)

Some viable positioning statements could be:

Table 3.3: Promotional Activity

Serial Number Promotional Activity

03 Distribution of leaflets, pamphlets, stickers wherever possible

3.5 Feed Formulation

3.6 Competitiveness of the Project

3.7 Special Attributes Desired By Target Customers

1. High Quality Graded Feed

Nutrient Content of Feeds

Table 5: Nutrient Content

Types of Feeds ME(kcal/g) Moisture% CP% Ca% P%

Broiler Starter 2,800 14% 20% 1% 0.45%

Cattle Concentrate 2,500 11.25% 18% 0.80% 0.70%

Milk Ration 2,890 11.25% 18% 0.85% 0.75%

3.9 Packaging & Transportation Woven Polypropylene

2. Provide information to buyers, such as variety, weight, specification of the product,

Figure 2: Polythene Sack

3.11 Potential for Marketing Collaboration

 Oasis Farms & Agro Ltd

 Asaba Lagam Vet Cons.

 Agro Dealers Enterprises

 Zulinkx Agro and Vet services

Figure 3.9: Feed mill plant

Image 3.9.2: Locally fabricated hammer mill

Water is required for general purposes and sanitation