FEED MILL FEASIBILITY

BUSINESS PLAN
TROPICAL FEEDS LTD

MAY 15, 2023

TROPICAL FEEDS LTD
Lagos Nigeria.

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 FEASIBILITY
BUSINESS PLAN
FOR
POULTRY, PIG, AND FISH
FEED PRODUCTION PLANT

MIA FEEDS LTD

Lagos Nigeria.

Consultant: Mia Afz Global Concept

07014854184
Surulere, Lagos.
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Table of Contents
EXECUTIVE SUMMARY...................................................................................................................5

Table 1: Project Summary.................................................................................................................6

2.0 JUSTIFICATION OF THE PROJECT......................................................................................7

2.1 The Need for the Project........................................................................................................7

Poultry Population.........................................................................................................................7

Fish Production..............................................................................................................................7

Pig production...............................................................................................................................8

Benefits of Commercially Manufactured Feed..............................................................................8

2.2 Competition Analysis............................................................................................................9

3.0 MARKET ANALYSIS............................................................................................................11

3.1 Structure of the Industry......................................................................................................11

3.2 Demand vs. Supply..............................................................................................................12

3.3 Pricing & Marketing Strategies............................................................................................12

3.4 Technological Changes that could Impact Costing..............................................................15

Competitiveness of the Project....................................................................................................15

Special Attributes Desired by Target Customers.........................................................................15

3.5 Terms & Conditions and Product Specifications desired by target customers...........................16

Types of poultry feed...................................................................................................................16

Nutrient Content of Poultry Feeds...............................................................................................16

Types of pig feed.........................................................................................................................17

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 Types of fish feed........................................................................................................................17

Packaging & Transportation........................................................................................................18

3.6 Assessment of Comparative Advantage...............................................................................18

Potential for Marketing Collaboration.........................................................................................18

4.0 RESOURCE............................................................................................................................20

4.1 Sources of Inputs.................................................................................................................20

4.2 Comparative Analysis of Critical Inputs..............................................................................20

4.3 Sources of Raw Materials for Poultry, Pig, and Fish Feed...................................................21

4.4 Availability of Manpower and Skills...................................................................................23

5.0 THE PLANT............................................................................................................................24

5.1 Choice of Technology for the Feed Manufacturing Process................................................24

Machinery & Equipment Required for Poultry, Pig, and Fish Feed Producing Plant...................25

5.2 Source........................................................................................................................................26

Composition................................................................................................................................27

Equipment and Machinery Sources.............................................................................................29

5.4 Raw Material Consumption.................................................................................................30

5.5 Manpower Requirement & Organization Chart...................................................................30

9.0 COST PRESENTATION.........................................................................................................32

Project cost/ Total Investment.....................................................................................................32

Cost of Project:............................................................................................................................32

Means of Finance.........................................................................................................................32

9.1 Capital Costs........................................................................................................................33

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 Machinery....................................................................................................................................33

Other Fixed Assets.......................................................................................................................33

Preliminary Expenses..................................................................................................................34

Preoperative Expenses.................................................................................................................34

9.2 Operating Cost.....................................................................................................................35

Cost of Utilities............................................................................................................................36

Manpower Costing......................................................................................................................36

Cost of Goods Sold:.....................................................................................................................37

10.0 FINANCIAL ANALYSIS.......................................................................................................38

10.1 Profitability..........................................................................................................................38

Break Even Point, Return On Investment, and Net Present Value/Internal Rate of Return:............45

Final Finding and Recommendation....................................................................................................48

1. Market Potential:.....................................................................................................................48

2. Cost Analysis:..........................................................................................................................48

3. Financial Viability:..................................................................................................................48

4. Risk Assessment:.....................................................................................................................48

Recommendation:............................................................................................................................48

Prepared By: Mia Afz Global Concept

07014854184
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Surulere, Lagos.
EXECUTIVE SUMMARY

This report is a comprehensive feasibility study on establishing a feed manufacturing unit in Lagos,
Nigeria producing poultry, pig, and fish feeds. The proposed unit is designed to process 1 ton per
hour, equivalent to 8 tons per day and 2,400 tons per year of poultry, pig, and fish feed. Given the
growing demand for livestock products, particularly for domestic consumption, farmers are
increasingly aware of the importance of maintaining the health and productivity of their livestock,
thus driving the need for balanced feed.

The report provides a detailed analysis of the project's justification, including market analysis of the
service, resource requirements, technology employed in the plant, plant location, environmental
considerations, project implementation, cost projections, and financial analysis.

(i) Justification of the Project: Growing Domestic Demand: There is a significant and
increasing demand for livestock products in Nigeria, driven by a growing population and
rising income levels. As Lagos serves as a major urban centre and economic hub in
Anambra state, it presents a lucrative market for high-quality livestock feed.
(ii) Resources required: Raw materials, such as corn, soybean meal, fish meal, vitamins,
and minerals, be sourced from reliable suppliers locally and stored properly. Apart from
this the unit requires electricity, water and manpower which are also available in Lagos.
(iii) Technology required: A mechanized plant using state of the art technology has been
proposed for this purpose. The plant has the capacity to process pig, fish, and poultry
feed.
(iv) Plant Location: Considering the availability of raw materials and other infrastructure,
Lagos State has been proposed as the ideal location for the plant.
(v) Environmental Aspects: The production of animal feed may cause air and water
pollution but this may be reduced up to a great extent by following the recommended
measures.
(vi) Implementation of the Project: The implementation of the project will take about than 6
months including pre-project activities.
(vii) Cost Presentation and Financial Analysis: The 5-year financial plan for Mia-Afz
Ventures projects steady growth in revenue and profitability.
(viii) Revenue Projection: Poultry Feeds: With an average price of ₦7,325 per unit, the
company expects to sell 32,000 units annually, generating annual revenue of
₦234,400,000. Pig Feeds: The company forecasts sales of 32,000 units at an average
price of ₦12,350 per unit, resulting in annual revenue of ₦395,200,000. Fish Feeds:
Estimated sales of 32,000 units at an average price of ₦9,800 per unit would generate
annual revenue of ₦313,600,000. The total forecasted revenue for Mia-Afz Ventures over
the 5-year period is ₦943,200,000.

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 (ix) Profit and Loss Projection: The projected gross profit for Mia-Afz Ventures shows a
steady increase from ₦176,944,841.60 in Year 1 to ₦214,882,495.11 in Year 5.
Operating expenses, including sales and marketing, depreciation, insurance, payroll, and
other costs, are considered. Non-recurring expenses and taxes are also factored in. The net
profit for the company is projected to increase from ₦108,905,375.49 in Year 1 to
₦140,313,064.37 in Year 5.
(x) Balance Sheet Projection: The company's assets include current assets (cash, short-term
investments, prepaid expenses, etc.), property and equipment (buildings, machinery, etc.),
and other assets. The total assets are projected to reach ₦543,880,170.04 by the end of
Year 5. The liabilities consist of current liabilities (accounts payable, accrued expenses,
etc.) and long-term debt. The total debt is expected to decrease from ₦100,102,100.00 in
Year 1 to ₦152,100.00 in Year 5. Overall, Mia-Afz Ventures demonstrates a positive
financial outlook, with consistent revenue growth, effective cost management, and
increasing profitability over the 5-year period. The company's strong financial position
and strategic planning provide a solid foundation for future success.

Table 1: Project Summary

Metric Value
Plant Capacity 1 Tons/H, 8Tons/Day (2,400 Tons per annum)
Working hours/Day 8
Working Days in Year 300
Break Even Point ₦21,365,733.76
Return On Investment (ROI) 84.31%
Net Present Value (NPV) ₦56,850,619.62
Internal Rate of Return (IRR) 24.37%

The plant will operate for 8 hours per day and runs for 300 working days in a year.

The Break Even Point for this plant is ₦21,365,733.76, which represents the minimum revenue
needed to cover all costs and start generating a profit.

The Return On Investment (ROI) is calculated at 84.31%, indicating the profitability of the
investment. This percentage represents the ratio of net profit to the initial investment, expressed as a
percentage.

The Net Present Value (NPV) is ₦56,850,619.62, which represents the difference between the present
value of cash inflows and outflows over the lifespan of the project. A positive NPV suggests a
profitable investment.

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The Internal Rate of Return (IRR) is 24.37%, which is the discount rate that makes the NPV of the
investment zero. It indicates the annualized rate of return at which the investment breaks even. An
IRR of 24.37% suggests a relatively attractive rate of return on the investment.

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TO GET THE COMPLETE 34 PAGE
BUSINESS PLAN, KINDLY CLICK HERE
https://felixabeshop.com/product/feed-
production-business-plan/

FOR ENQUIRIES, CONTACT US:

MIA-AFZ GLOBAL CONCEPT (BN:3631044)

07014854184

miafarms3@gmail.com

www.felixabeshop.com

Lagos, Nigeria.

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