Everything You Need To Start An Animal Feed Business In Kenya

Animal Feed Business In Kenya

Kenya is a nation rich in agriculture and a growing demand for agricultural resources. As such, one of the resources that are high in demand is the animal feeds. Of course, animal feeds are needed for nutritional purposes in raising livestock.

On the other way round, starting an animal feed business now contributes to the agricultural revenue in the country. Just imagine the livestock population which ranges from poultry, cattle, goats, and many others. This has however created a substantial market for animal feeds.

Also, there is an export opportunity in the animal feed business, so you can tap into this segment and benefit from all the goodies that come with this business.

However, this article will open your eyes more to how you can start an animal feed business in Kenya.

What Is The Demand For Animal Feeds In Kenya?

Stanley Mutua who is the head of Animal Feeds and Nutrition Services at the Ministry of Agriculture State Department for Livestock Development states that Kenya provides only 40% of 55 million metric tons of feed annually. So that’s the demand for animal feeds in Kenya currently.

What Are The Ways Of Starting An Animal Feeds Business In Kenya?

There are two major ways of running an animal feed business in Kenya, and they are:

1. Animal Feed Production: Animal feed production businesses are the type of animal feed business that deals in the manufacturing of feeds for livestock, poultry, and other animals. It involves using some raw materials to create formulated feeds.

2. Animal Feeds Distribution Business: Another way of starting an animal feed business in Kenya is through the “distributorship method”. This involves the buying of animal feeds in bulk from producers and selling them to consumers or even to retailers.

How Profitable Is Animal Feeds Business In Kenya?

What determines how profitable an animal feed business can be is the location of the business, and if your target audience can easily locate you. If you get this factor right, the animal feed business will be a profitable business for you.

Another reason is the constant demand for formulated feeds across society.

However, to finally maximize profit in this business, it is advisable to conduct market research to understand the animal feed market and how to offer or render your services to society.

How Much Does It Cost To Start An Animal Feeds Business In Kenya?

There are so many factors that determine the cost of starting an animal feed business in Kenya.

One of the factors is the way you want to operate your animal feed business. That is to say that, it is based on whether you are starting as an animal feed producer or whether you are starting as a distributor or even as a retailer.

These are the major determinants of the cost of starting an animal feed business in Kenya. So if you want to go into the production of animal feeds, you will need a budget of about Ksh 2 million upward.

And if you are starting as a wholesaler, you will need a capital of Ksh 800,000. While starting a small animal feed business which is as a retailer will cost you about Ksh 300,000.

How Do I Start An Animal Feeds Business In Kenya?

Below are the step-by-step guide on how to start an animal feed business in Kenya:

1. Do A Market Research: At first, you have to research the market to get a basic understanding of the business. This will help you know who your target markets are and how to reach out to them and serve them well.

2. Write A Business Plan: Whether you are starting as a producer, wholesaler, or retailer, it is very important to write a business plan for your business. A business plan is the foundational aspect of starting your feed business in Kenya.

3. Rent A Space: You will need either a shop or warehouse where you will stock your feeds. The sizes of your shop/warehouse will be determined by the quantity of feeds you want to store. Most especially, ensure that you are in the right location.

4. Buy All The Needed Equipment: The equipment to buy is also determined by the type of animal feed business you are going into. These equipment also vary in size. Meanwhile, the most required ones are shelves, measuring cups, scales, shipping crates, etc.

5. Look For Supplier: If you are starting as a distributor, you have to contact top manufacturers of animal feeds and reach an agreement on how they can supply you with animal feeds.

And if you are a retailer, you need to find a reliable distributor that will supply you with quality feeds whenever you place an order.

6. Obtain Business License: This is very important before starting your animal feed business in Kenya. However, ensure that you meet up with the license requirements to operate your business legally.

7. Start Selling: Once everything is in place, you can now officially start selling your feeds. Have a signpost that bears the name of your animal feed business so that you can let people know that you are into the business.

Also, use word-of-mouth marketing and online advertisement to reach more people and attract customers for your business.

Conclusion

Without a doubt, the animal feed business in Kenya is profitable. It requires you to carry out a research detailedly and, understand the market before venturing into the business. Therefore, do it with diligence and commitment, then expect it rewarding in nature which is massive sales and profit.

Ambassador Victor Chidera
Ambassador Victor ChideraAmbassador Victor Chidera is a business consultant, writer and a blogger. He provides lots of professional and expert advice to small businesses, entrepreneurs and organizations. He has many years of experience in business, teaching field, and research work. And his aim is to provide business articles that matters to you both nationally and internationally.
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