1. Project Cost
Many other costs involved in the project other than Feed mill like boiler, transformer, Genset, civil work, taxes, transportation, Weigh Bridge, warehouse, building construction, working capital, etc. Hence considering all the costs in the project report is essential.
2. 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.
3. Competition in the Market
Kinds & prices of feeds sold, credit policy of competitors, services offered to customers, the local market share, manpower availability & cost, nature of farmers & traders, discount policy, the trend of on-farm grinding and mixing.
4. Selecting the Site
Condition of roads, availability of power, water, and manpower, drainage & nature of the soil, water level, federal and local regulations for pollution & air quality, the 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 a feed mill.
5. Project Feasibility
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 the above factors affect the cost of production. Considering all these factors and working capital, selling price & profits, we can easily calculate the project feasibility & return on investment.