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Livestock Feed Mill Business

Plan [Sample Template]
By: AuthorTony Martins Ajaero
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Are you about starting a livestock feed mill? If YES, here is a complete
sample livestock feed mill business plan template & feasibility report you
can use for FREE.
Okay, so we have considered all the requirements for starting a livestock feed
mill business. We also took it further by analyzing and drafting a sample livestock
feed mill business marketing plan template backed up by actionable guerrilla
marketing ideas for livestock feed mills. So let’s proceed to the business planning
section.

Starting a livestock feed mill business can be regarded as a big and lucrative
business especially if you are grounded in managing a business and are able to
use the dynamics to run your business successfully. For your business to be
however successful, you might need to locate your livestock feed business in an
area where there is an abundance of livestock as well as agricultural inclined
customers.
Depending on the kind of customers you are likely to have, you might need to
custom mix the feed from your feed mill so that you can deliver the feed products
to your customers. While the livestock feed business might be one where you
would need to supplement your income with other revenue generating sources, it
is still a good business to start up.

Before starting this kind of business however, you would need to consult a
business consultant who would be in the best position to let you know how
successful your business is likely to be. Another aspect that is very important
when starting any business is having a business plan.
Writing a business plan might look intimidating especially regarding the aspect
that deals with finances. There are however options available if you want a
comprehensive business plan for your business.
The options are seeking the services of a business plan writer to write out a good
business plan for you or going online to seek for free business plan templates to
act as a guide to writing your own business plan. It is for this reason that a
sample livestock feed mill business plan template has been prepared below;
A Sample Livestock Feed Mill Business Plan
Template
1. Industry Overview
The economic value of animal agriculture in the united states of America is very
huge as it has provided more than 2.3 million jobs for the economy. The
monetary value amounts to $440.7 billion, with $21 billion from household
incomes.

There are nearly 6,000 feed mills in the United States of America and out of this
number nearly 950 produce feeds that are medicated in nature, while nearly 545
produce pet foods. The raw materials used in producing feeds are corn, barley,
wheat, oats, sorghum, soybean meal, corn silage production, hay, and alfalfa.
The livestock feed industry is valued at $32 billion annually. However, this
industry has experienced a slow decline between the periods of 2011 and 2015,
as there have been dramatic spikes in the prices o ffeeds and also increased
demand from wholesale farm suppliers.

Globally though, the rise in population has caused an increase in meat demand
which has also caused more feed mills to produce feeds to meet with the growing
demand by livestock farmers. The revenue for the periods of 2016 to 2022 is
therefore expected to increase.
Most livestock feed mills have been established close to where the source of raw
materials and major transportation hubs are so as to have less operating costs
and therefore offer feeds cheaper to its various customers. The past five years
has seen top manufacturers in this industry concentrate most of their operations
in a small number of sites using automatic equipment and a continuous operation
that produces significant economies of scale.
Most of the products produced are often transported in bulk to the various
destinations across the country. The population growth trend is consistent with
the increasing trends across other industries in the food and agricultural sector.
2. Executive Summary
Livestock Feeds and Mo Inc is a leading and standard livestock feed mill business
located here in San Antonio – Texas in the United States of America with an aim
to cater to various customers in the agriculture industry. We intend to produce
quality livestock feeds for our various customers not only here in San Antonio but
all over the United States of America as well.

We however intend to ensure that we create multiple sources of income by

offering products and services such as feed delivery merchandise, agricultural
educational programs, boarding stables, consultancy and advisory services and
agricultural tools and implements.
Our vision is to ensure that we offer our customers’ feeds on time for their
livestock without compromising on the quality of the feed. We intend to become
the preferred livestock feed business here in San Antonio – Texas and amongst
the top three in the United States of America by 2022.
As we are in business to favorably compete against other livestock feed mill
businesses, we intend to go the extra mile in ensuring that we get the finest
professionals that will ensure that we are able to attain all our goals and
objectives.
Our management team were carefully picked by the chief executive officer due to
not only their experience and capability but also due to the understanding of our
corporate goals and policies as well as an intention of ensuring that they are
committed and willing to ensure that these goals are achieved.
Our employees work in an environment that is not only easily accessible but also
conducive as well. We will ensure that our employees are well paid and that they
receive great welfare and incentive packages that will boost their morale and
make them become more dedicated to ensuring that all our goals and objectives
are achieved.
We will also ensure that our employees are well trained in line with industry
trends. We will also ensure that they attend seminars and conferences that will
not only make them have enhanced skills but also improve the productivity rate
of the organization.
Finally, our Chief Executive Officer, Mr. Benteen Calder and his wife have the
needed experience and management expertise that will not only boost the growth
of our organization but also ensure that we sustain and expand our business at a
pace suitable for us.
3. Our Products and Services
Livestock Feeds and Mo Inc intends to deal in livestock feeds by setting up
livestock feed mills that will see us being able to cater to all the needs of our
various customers here in San Antonio – Texas.
However, because we do not intend to be entirely dependent on one source of
income, we intend to create multiple sources of income that will be in line with
our core service. We will sell agricultural tools and implements, offer agricultural
educational programs as well as consultancy and advisory services.
We intend to through this make as much profits as we can from the agribusiness
sector in the agriculture industry and according to the permissible laws of the
United States of America. Our products and services include;
 Livestock feed
 Feed delivery merchandise
 Agricultural educational programs
 Boarding stables
 Consultancy and advisory services
 Agricultural tools and implements
4. Our Mission and Vision Statement
 Our vision is to ensure that we offer our customers’ feeds on time for their
livestock without compromising on quality of the feed. We intend to become
the preferred livestock feed business here in San Antonio – Texas and
amongst the top three in the United States of America by 2022.
 In order to achieve our mission, we will ensure that we build several livestock
feed mills and also employ competent and capable employees to help attain
our goals and objectives.
Our Business Structure
Building the right business structure is very important to us as a business
especially as we intend to stand out in the industry and compete favorably
against our competitors.
We are therefore willing to go the extra mile in ensuring that we make plans and
build structures and processes that will enable us to build the right business
structure that will make our business become one to be reckoned with. We intend
to do all we can to ensure that we employ competent and proficient hands to
handle all the various positions and roles that will enable our company achieve its
vision and objectives.
 We will ensure that our management team thoroughly understand their roles and
delegate duties when necessary in order for the company to move forward and
grow.
Even though running a conventional livestock feed mill business might be simpler
for us as a start-up, we would not be running something conventional and this is
due to the various additional services and products that we will sell in order to
have multiple sources of income.
Therefore, below is the business structure that we will build at Livestock Feeds
and Mo Inc;
 Chief Executive Officer
 Feed Mill Production Manager
 Admin and Human Resources Manager
 Accountant/Cashier
 Machine Operators
 Store Manager
 Front Desk Officer
 Marketing and Sales Team
 Truck Driver
 Cleaner
 Security Guard

5. Job Roles and Responsibilities

Chief Executive Officer
 Makes strategies and policies that will affect the overall operation of the
organization
 Hires and delegates responsibilities to the management team and ensures that
the policies are duly implemented
 Reviews strategies and policies and negotiates with high level clients on behalf
of the organization
Feed Mill Production Manager
 Oversees the livestock feed production and ensures that quality is maintained
always
 Responsible for and evaluates the performance of employees for the benefit of
the organization
 Ensures that organizational policies and decisions are duly implemented
Admin and Human Resources Manager
 Sources for, interviews and hires capable and efficient employees on behalf of
the organization
 Reviews employee performance and ensures that those who work hard are
duly rewarded
 Ensures that the administrative functions of the organization are performed
smoothly
Accountant/Cashier
 In charge of preparing financial reports, budgets, statements and information
on behalf of the organization
 In charge of conducting financial analysis and forecast on behalf of the
organization
 Prepares tax documents and ensures that they are duly submitted to the tax
authorities
Machine Operators
 Ensures that the machines used for the feed mill are in optimum condition
 Cleans the machines and ensures that they are recalibrated for each new task
it will perform
 Carries out preventive maintenance on the machines and reports major faults
to the management
 Store Manager
 In charge of inventory and monitors all incoming and outgoing stock on behalf
of the organization
 Ensures that the store is adequately secured and ventilated
 Carries out other duties as directed by the management
Front Desk Officer
 Attends to clients on behalf of the organization by answering inquiries and
providing correct information
 Maintains an updated and accurate customer database on behalf of the
organization
 Remains enlightened about the company policies as well as industry trends so
as to give customers accurate information
Marketing and Sales Team
 Conducts market research in order to determine new target markets for the
organization
 Creates effective marketing strategies that will generate revenue for the
organization
 Meets with clients in order to negotiate on behalf of the organization
Truck Driver
 Ensures that customers products arrive on time and at the right destination
 Keeps a logbook of trips undertaken and the routes used
 Obeys all traffic laws and regulations whenever on official errands for the
organization
Cleaner
 Ensures that the premises is cleaned
 Ensures that cleaning stock are always in supply
 Carries out other duties as determined by the management
Security Guard
 Ensure that the facility is secured at all times
 Remains updated as regards trends in the security industry
 Submit regular security reports
6. SWOT Analysis
Starting a livestock feed mill here in San Antonio might look like an easy business
to start up, but there are several factors that we need to take into consideration;
which is why we have engaged the services of a business consultant to look
through our business concept and determine if we had what it takes to make it in
this business.
The business consultant used our strengths, weaknesses, opportunities and
threats to determine if we were likely to make it in this business. Therefore the
SWOT analysis that was conducted on behalf of Livestock Feeds and Mo Inc are;
 Strengths
We have several strengths going forward in this business. Our location for one in
San Antonio – Texas is very strategic as it allows our customers to easily access
us conveniently. The fact that we are also offering other services in addition to
our core service is another strength for us.
We have also employed employees that are not only proficient but also highly
experienced and understand how best to grow our business from a start-up to a
force that will be reckoned with nationally. Finally, our chief executive officer is
highly experienced and possess all the attributes needed to make our business
not only stand out and compete favorably against our competitors but also
succeed in this business as well.
 Weaknesses
 Due to the fact that we are relatively a new business, there are several
weaknesses we are battling with such as low finances to run all the services we
intend to run as well as few staff strength. Also, the fact that we are still unknown
will mean we will need to deploy strategies that will likely make us become more
visible to our target market.
 Opportunities
The fact that not only livestock farmers make use of livestock feeds is a great
opportunity for us in this business. We are however conducting more market
researches that will allow us be aware of the more opportunities available to our
business.
 Threats
The threats that we are likely to face when starting or running this business will
result from having another competitor offering the same services arriving in the
same location as us; also, an economic downturn will likely cause livestock
farmers to want to produce their own feeds, thereby not allowing them to
patronize us as they should.
7. MARKET ANALYSIS
 Market Trends
The livestock feed mill industry consists of animal feed producers who make food
for livestock. Materials that are often used are remnants of flour milling, sugar
production as well as other food materials that are integral to the production of
livestock feed.
The activities in this industry usually include cubed alfalfa, cattle feeds, barley
feeds, chicken feed, turkey feed, swine feed, cubed hay, dairy cattle feed, and
custom grain grinding for animal feed. In most animal feed businesses,
generating revenue is usually from diversification of products and services. This is
so as to achieve substantial growth.
8. Our Target Market
As long as there is livestock farming, there will always be those who demand
feeds for their livestock. While on the average we would be catering to livestock
farmers, we cannot categorically say that these will be only those that we will
cater to, which is why we would be conducting a market research to enable us
determine who our target market is so that we would have an idea of the
marketing strategies that we would create in order for it to be effective.
Another reason for conducting this market research is so that we would also have
an idea of what our intending target market would be expecting from us. From
our findings, we are in business to sell our products and offer our services to the
following groups of people;
 Cattle farmers
 Hunters
 Pet owners
 Ranch farmers
Our competitive advantage
Our intention of starting a livestock feed mill business is so as to offer our various
customers quality livestock feeds on time without compromising on the quality of
these feeds. We intend to become the preferred livestock feed business here in
San Antonio – Texas and amongst the top three in the United States of America
by 2022.
However in order for us to be able to achieve this, we intend to lay out strategies
that will allow us compete favorably against our competitors.
We are going to ensure that we build feed mills that will be able to meet all the
demands from our various customers. Our intention of building these feed mills is
so that no matter what demands will be made, we would still be able to meet
them.
Another competitive advantage that we will have over our competitors is the vast
experience of our management team. Our management team is filled with
professionals who understand the industry thoroughly and know how best to
ensure that our business is able to attain all its goals and objectives.
Our management team also understand how best to communicate our policies to
other employees in such a way as to ensure that everyone is carried along.
Our employees are those that are not only proficient but also capable and
dedicated in carrying out all the needed tasks with as little supervision as
possible. Our employees have also adopted an excellent customer culture that
ensures that all our customers are always attended to and earn a high sense of
satisfaction that will allow us retain a high percentage of these customers.
Finally, we intend to ensure that all our employees are well paid, better than
other employees in similar start-ups such as ours here in San Antonio.
We also intend to give them great welfare and incentive packages that will ensure
that they remain motivated to working for our company. We will also ensure that
our employees undergo the necessary training that will enhance their skills and
boost productivity for our business.
9. SALES AND MARKETING STRATEGY
 Sources of Income
Livestock Feeds and Mo Inc is a livestock feed mill business that intends to offer
livestock feed to all our various customers with the sole aim of generating
revenue and maximizing profit in the agriculture cum agri-business industry here
in the United States of America.
We are going to also offer additional services to our wide range of customers that
will see us generate more income and make more profit. We at Livestock Feeds
and Mo Inc therefore intend to generate income by selling the following;
 Livestock feed
 Feed delivery merchandise
 Agricultural educational programs
 Boarding stables
 Consultancy and advisory services
 Agricultural tools and implements
10. Sales Forecast
The livestock feed business is one that will always be in demand due to the fact
that there are more than enough livestock farmers and others who use livestock
feed for purposes that are important. San Antonio is one of the largest cities in
Texas with a population of more than 1.5 million citizens, with about 30% into
livestock farming.
The location therefore has us well positioned to cater to all our intending and
existing customers. This also has us confident of the fact that we would not only
generate enough revenue but that we will break even and make profit in our first
year of business that will grow and sustain our business.
We have also taken a critical look at the agricultural cum agribusiness industry in
order to analyze our chances at making it in the business we intend to start up.
The sales forecast we therefore came up with is one that was gotten after using
several assumptions and data from similar start-ups such as ours here in San
Antonio – Texas.
Below therefore are the sales projections for Livestock Feeds and Mo Inc based on
certain statistics and data used;
 First Fiscal Year-: $600,000
 Second Fiscal Year-: $1,100,000
 Third Fiscal Year-: $2,000,000
N.B: It should be noted that the above sales forecast was done based on the
statistics obtained from the industry and on the assumptions that there won’t be
any major economic meltdown that would see farmers preparing their own feed
 and that no competitor would be arriving at the same location as ours during this
three year period. Should any of the assumptions or data change, there would be
an increase or decrease in the stated figures.
 Marketing Strategy and Sales Strategy
Because we intend to sustain and grow our livestock feed mill business, we would
take our marketing goals very seriously in order to ensure that we deliver on our
corporate goals and objectives. Marketing for us is a means of generating
revenue as well as creating awareness for our products and services.
In order therefore to create the right marketing strategies that would suit our
business, we intend to therefore conduct a market survey that will allow us
understand who our target market is, what they want from us, and how best to
penetrate the available market and position our business to grow and effectively
compete against its competitors.
We would be using detailed data and information that was gotten from similar
businesses such as ours here in San Antonio – Texas.
We would be engaging the services of a reputable marketing consultant who
understands the industry well to help us craft effective marketing strategies that
will allow our livestock feed business to win a large share of the target market not
only here in San Antonio but throughout the United States of America as well.
We also intend to ensure that our marketing and sales team ensures that
marketing strategies crafted fully align with our corporate sales goals and vision.
Our marketing team have been empowered to modify or remove marketing
strategies that are not deemed effective in helping achieve our intended goals
and objectives.
Therefore, Livestock Feed and Mo Inc will adopt the following sales and marketing
approach in order to sell its products to its various customers;
 Ensure that relevant customers and stakeholders are aware of our livestock
feed business her in San Antonio – Texas.
 Start off our livestock feed mill business with a party that will generate interest
and capture the attention of our target market.
 Ensure that our livestock feed mill business is listed in yellow pages, farmers
guide and online directories.
 Use social media platforms such as Facebook, Twitter and Linkedin to
advertise and market our products and services
 Place adverts in local newspapers and on radio and television stations here in
San Antonio
 Engage in direct marketing and sales of our products
11. Publicity and Advertising Strategy
Publicity is not only a way of creating awareness but also ensuring that a business
generates revenue that will help grow and boost the business. Having the right
publicity for our business is therefore important as we intend to create awareness
within our target market for existing and new customers that will positively
communicate our business and project our brand positively.
We will therefore engage the services of a publicity consultant here in San
Antonio who thoroughly understands the agribusiness sector of the agricultural
industry to help us create publicity strategies that would allow our business stand
out and make us to be able to compete favorably against similar competitors here
in San Antonio.
The publicity strategies that we will use to promote and communicate our brand
are;
 Ensure that we place adverts in local newspapers as well as on radio and
television stations
 Distribute our handbills and fliers in different strategic locations here in San
Antonio
 Use social media platforms such as Facebook, Twitter and Linkedin to further
promote and increase publicity for our livestock feed mill business
 Engage in and sponsor relevant programs in the community
 Install flexi banners and billboards at strategic positions all over San Antonio
so as to increase the awareness for our business
 Ensure that we create a unique logo and have this emblazoned on our delivery
truck so that people would be able to recognize our business.
12. Our Pricing Strategy
Setting a price for our livestock feed as well as other products and services that
we would be offering at Livestock Feeds and Mo Inc is very important because we
do not want to set a price that will allow us run at a loss or chase our customers
away.
Therefore before setting our price, we would be making some consideration on
certain factors such as what it would cost us to produce these feeds, our
overhead expenses, what our nearest competitors are offering and the size of the
feeds.
Because we however are a new business and want to ensure we get a large share
of the market, we would be offering our customers a price discount on our
products and services in order to create awareness for our business and attract
more customers.
The price discount strategy has been carefully reviewed by us and while we might
be running on a low profit margin during this period, we would however not be
running at a loss.
 Payment Options
Because we always want the best for our customers, we at Livestock Feeds and
Mo Inc have come up with different payment options that would suit all our
diverse customers and whatever preferences they might have. The payment
options that we will therefore make available at Livestock Feeds and Mo are;
 Payment via cash
 Payment via online payment portal
 Payment via credit card
 Payment via Point of Sale (POS) machine
 Payment via bank draft
 Payment via check

13. Startup Expenditure (Budget)

The livestock feed mill business is one that requires certain equipment and
structures in place, which will take a chunk of the start-up capital in order for it to
be referred to as a standard business. Therefore, we intend to spend the bulk of
our capital in getting the raw materials for the feed, constructing a feed mill,
getting a truck, buying a land and paying the salaries of employees.
The key areas where we intend to spend our start-up capital on are;
 Total fee for business registration and incorporation in the United States of
America – $750
 Obtaining of licenses and permits, inventory and customer software,
accounting software and other legal expenses – $2,250
 Insurance coverage (equipment insurance, vehicle insurance, workers’
compensation and general liability) – $2,000
 Marketing, promotion and publicity expenses for both grand opening of our
livestock business as well as general marketing promotion – $3,000
 Buying a land, building of administrative, operation and storage facilities
– $200,000
 Cost of hiring a business consultant – $2,000
 Operational cost for the first six months which would include employee salaries
and payment of bills – $150,000
 Start-up inventory (raw materials and packaging) – $50,000
 Constructing of feed mills to produce livestock feed – $10,000
 Other start-up expenses (POS Machines, utilities, signage, business cards and
stationeries) – $3,000
 Purchase of truck for use in operation – $50,000
 Purchase of furniture and devices (computers, printers, photocopiers) for
administrative section – $3,000
 Cost of store equipment (security, ventilation, racks) – $2,000
 Cost of launching a website – $500
 Cost of throwing a party to create awareness – $1,000
 Miscellaneous – $7,000
From the above analysis, we would need the sum of $486,500 to be able to set
up and run a standard livestock feed mill business here in San Antonio – Texas. It
should be noted that the bulk of the capital will go into buying a land and building
several facilities on it, procuring a delivery and an errand truck, getting start-up
inventory and setting up a feed mill and also paying the salaries of employees
and utility bills for the first six months.
Generating Funding/Startup Capital for Livestock Feeds and Mo
Inc Business
Livestock Feeds and Mo Inc is a family business that is financed, owned and run
by Benteen Calder and his wife. Since this is a family owned business, the couple
does not intend to seek for external business partners and due to this, they have
decided to restrict the sourcing of their start-up capital to just few sources.
The areas where we therefore intend to source for our start-up capital from are;
 Generate start-up capital from personal savings and sale of stock
 Source for grants from the federal government
 Apply for loan from the bank
N.B: We were able to generate about $56,000 from our personal savings and
sale of stocks. We won a grant of $200,000 from the federal government to use
in starting our business and we approached the bank for the sum of $230,000 to
be repaid in 10 years at the rate of 3% per annum.
All the documents concerning the loan has been approved and signed on and we
have been told that the amount will be credited to our business account before
the week runs out.
14. Sustainability and Expansion Strategy
The sustainability of a business depends on what plans are being put in place to
ensure that the business survives for a long time. We intend to have our livestock
feed mill business exist for a long time and so we will ensure that certain factors
that will allow our business to remain long in existence and grow are not taken
for granted.
We will ensure that we build a sound business structure, carrying out intensive
publicity and also re-invest in our business.
Building the right business structure is very important to us and as such we do
not mind going the extra mile to ensure that we get employees that are not only
experts but committed and dedicated to ensuring that they put in their best to
see our livestock feed mill business grow.
Our employees all come with experience and understand how things are done in
the industry in order to make sure a business like ours grow.
We intend to make sure that our employees are not only well paid and have the
best incentive and welfare packages but that they are also allowed to go for
training that would not only enhance their skills but boost productivity for our
livestock feed mill business as well.
Our management team understands well the philosophies our company run on
and know how best to ensure that policies are implemented for the good and
growth of the business. In order to ensure that we receive the right awareness
for our business whilst also generating revenue, we intend to engage in massive
publicity.
 To achieve this, we will engage the services of a reputable publicity consultant
here in San Antonio, who understands the industry and will therefore craft the
right publicity strategies that will not only boost our business and positively
communicate our brand, but will allow us stand out and compete favorably
against our competitors.
Due to the fact that we do not intend to continually use external sources of
revenue always, we will ensure that we re-invest 30 percent of our earnings right
back into the business.
We have set plans and structures in place that will ensure that this is always
carried out no matter who is in charge of our financial. These are the three
factors that we intend to engage in so as to sustain and expand our livestock feed
mill business here in San Antonio – Texas.
Check List/Milestone
 Business Name Availability Check: Completed
 Business Registration: Completed
 Opening of Corporate Bank Accounts: Completed
 Securing Point of Sales (POS) Machines: Completed
 Opening Mobile Money Accounts: Completed
 Opening Online Payment Platforms: Completed
 Application and Obtaining Tax Payer’s ID: In Progress
 Application for business license and permit: Completed
 Purchase of Insurance for the Business: Completed
 Conducting feasibility studies: Completed
 Generating capital from family members: Completed
 Applications for Loan from the bank: In Progress
 Writing of Business Plan: Completed
 Drafting of Employee’s Handbook: Completed
 Drafting of Contract Documents and other relevant Legal Documents: In
Progress
 Design of The Company’s Logo: Completed
 Graphic Designs and Printing of Packaging Marketing/Promotional Materials: In
Progress
 Recruitment of employees: In Progress
 Creating Official Website for the Company: In Progress
 Creating Awareness for the business both online and around the
community: In Progress
 Health and Safety and Fire Safety Arrangement (License): Secured
 Opening party/launching party planning: In Progress
 Establishing business relationship with vendors – wholesale
suppliers/merchants: In Progress
 Purchase of trucks: Completed
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