Points To Be Kept In Mind While Setting A Feedmill
Things to be kept in mind while setting a Feed Mill
Project cost :
Many other costs involved in the project other than Feed mill like boiler, transformer, genset, civil work, taxes, transportation, Weigh Bridge, ware house, building construction, working capital etc. Hence considering all the costs in the project report is an essential.
Market area ( Radius of 200 kms) :
Future trends and concentration of livestock , poultry and other animal production, demand & availability of feed, demand & availability of raw material , grain surplus or deficit area, kind of feed grains grown and fed , future trends in feed potential etc.
Competition in market:
Kinds & prices of feeds sold, credit policy of competitors, services offered to customers, share of local market, man power availability & cost , nature of farmers & traders , discount policy , trend of on-farm grinding and mixing.
Selecting the site:
Condition of roads , availability of power , water and manpower , drainage & nature of soil , water level , federal and local regulations for pollution & air quality , attitude of local people and government towards a new feed manufacturing unit , taxation and subsidy rules etc. All these factors must be taken into consideration while selecting a site for feed mill.
Raw Material Cost+ Processing cost + Packaging + over heads = Total Cost of production
Where raw material is grains like Maize, Soya, Mustard, GNE, Cakes, DORB, Oils, Molasses, Medicines, Supplements etc.; processing cost involves Boiler Fuel, Electricity,Labour, Maintenance, general Wear & Tear; packaging cost for PT Bags and overheads are depreciation, bank interest, salaries, promotions & branding etc.
Hence all above factors effects the cost of production and considering all these factors along with working capital, selling price & profits we can easily calculate the project feasibility & return on investment.
The above information is based on data collected from our existing customers & internet sources and is only for your reference. As expertise in feed mill engineering only, lark engineering will not be responsible for any type of ccur due to above stated information.