Start A Poultry Feed Mill - Business Ideas

Updated: September 15th, 2022
Start A Poultry Feed Mill

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

The poultry farming industry is one of the fastest-growing agricultural segments today. The survival and profitability of poultry farming depend on access to quality chicken feeds.

Starting the poultry feed processing business consists of receiving raw materials, crushing, compounding, mixing, granulating, and packaging the finished product.

To start the poultry feed processing business, you need feed formulation skills. You may hire experienced personnel or attend training so you are equipped with poultry feed formulation.

Starting a poultry feed mill requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell domestic birds food production services, or selling domestic birds food production services online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size
$176B
starting costs
$18.9K
gross margin
43%
time to build
270 days

Startup Costs

Min Startup Costs Max Startup Costs

Equipment & Supply Expenses

$66

$1,200

Retail Business Expenses

$1,250

$11,650

Inventory Expenses

$350

$14,750

Advertising & Marketing Costs

$75

$9,636

Software Expenses

$0

$425

Website Costs

$13

$215

Total Startup Costs

$1,754

$37,876

Successful Businesses

Business URL Rank

FLEET FARM

fleetfarm.com

52,078

Purina Mills

purinamills.com

225,727

Perdue

perdue.com

284,874

Chickens for Sale

cacklehatchery.com

290,999

Meat Processing, Food Safety, Poultry Processing

meatpoultry.com

397,763

Suguna Foods

sugunafoods.co.in

497,805

Aviagen

aviagen.com

547,534

IFA Country Stores

ifacountrystores.com

578,377

Chicken Delivery & Hatchery Equipment

strombergschickens.com

629,818

Mazuri

mazuri.com

698,958

Sanderson Farms

sandersonfarms.com

752,561

Pros & Cons

Pros Description

Rewarding work

Starting a poultry feed mill can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

Meaningful business connections

You never know who you will meet as a poultry feed mill. This could be the start of an incredible business opportunity!

Daily physical activity

Poultry Feed Mill's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.

Amazing perks and discounts

Working in the poultry feed mill comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.

You are your own boss!

With starting a poultry feed mill, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!

Local Community

One of the best parts of starting a poultry feed mill is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.

Cons Description

Crowded Space

Competition is high when it comes to your poultry feed mill, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

Finding The Right Supplier

Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Low margins

The gross margins for your poultry feed mill are typically around 43%, which can make it more challenging to incur new expenses and maintain profitability.

High employee turnover

In the poultry feed mill, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Taxes

As a poultry feed mill, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

Marketing Ideas

  • 1

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

    Learn more about direct sales ➜

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

    Learn more about word of mouth ➜

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜