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How to Start Animal Feeds Business in Kenya

Vincent Nyoike
Vincent Nyoike Kenyan SMEs

With agriculture being Kenya's backbone, investing in agribusiness is a profitable business. Animal feeds business is the booming business in the suburbs. Many people rely on agriculture for livelihood in Kenya. Among the animals reared in Kenya include cows, goats, pigs, chickens, turkeys, ducks and rabbits. If you are planning to start an animal feeds business, we will take you through the process. 

Carry out a Feasibility Study

Before venturing into the animal feeds business, you need to do a feasibility study. It will help you determine if the business is viable. It also makes it easy to write a business plan.  When carrying out a feasibility study, identify the most reared animals. Then you can stock more of their feeds. 

Also, consider the number of businesses that sell animal feeds within the locality. This will help you determine the level of competition in the market. It is not advisable to start a business where the competition is high. 

Read also: How we started a profitable bookshop in Kenya

Write Animal Feeds Business Plan 

If you have carried out a feasibility study, it will help you write a business plan. Since you have all figures at hand, you only need to put them down on paper. A business plan should have startup capital, source of startup capital, business location, market segmentation, projected business revenues, business risks and strengths.  

Another reason why a business plan is important is that it will help your business maneuver where there is a challenge. It is because you will have foreseen challenges that the business is likely to face and found their solutions. 

Find a Good Business Location

Most businesses do well in urban areas, but the animal feeds business thrives well in rural and in the suburbs. You need to set up your animal feeds business in a business location where people rear animals. You also need to stock animal feeds depending on the animals reared in the locality.

For instance, if the locals rear chicken, then you need to stock more chicken feeds. In Kenya, the animal feeds business thrives well in small towns near rural areas. It is unlikely to see people in towns rearing animals. 

Find Reliable and Cheap Animal Feeds Suppliers

When writing a business plan, you need to identify the best animal feeds suppliers in the market. With cheaper suppliers, your business can retain high profit margins. Consider their prices, reliability and the quality of their feeds. You can shop around and get to know the best animal feed suppliers in the market. 

The quality of feeds is very critical. To know the best quality feeds, make sure to talk to farmers and ask which feeds they prefer to use. When farmers know that you stock the animal feeds they prefer, they will be buying from your shop. 

Animal Feeds Business Startup Capital

The animal feeds supply business does not require huge startup capital. You can start a small animal feeds business with Ksh 50,000 and expand your business with time. 

The following is a breakdown of animal feeds business startup capital.  

  • Business licenses – Ksh 5,000 annually
  • Store rent – Ksh 20,000 (inclusive of one month upfront)
  • Branding – Ksh 5,000
  • Dairy meal (5 bags) – Ksh 10,000
  • Chick mash (3 bags) – Ksh 15,000
  • Growers mash (2 bags) – Ksh 6,000

The good thing about the animal feeds business is that you can expand your business and open an agrovet. Alternatively, you can also start supplying animal feeds on a large scale to other retailers. This way, you can diversify your business revenues. 

Read also: How to start an agrovet in Kenya. 

Is Animal Feeds Business Profitable in Kenya?

With a suitable business location, the animal feeds business is a profitable venture. You need to find a business location where people practice poultry, or dairy farming. The profitability of the business also depends on the number of sales you make per day. Also, its profitability depends on animal feeds you are selling. 

Challenges Faced by Animal Feeds Businesses

One of the most common problems faced by a majority of animal feed businesses is poor quality feeds. It may not be the fault of the business but the suppliers. For instance, if you are selling chick mash, you need to be keen on the quality. There is some chick mash in the market that kills chicks. If you sell such feeds to farmers, you may lose customers and never have them back in your business. 

How to Market Animal Feeds Business 

The best way to market your business is through customer referrals. This is only possible if your business is selling quality feeds. A farmer will recommend your business to other farmers if you sell quality feeds. 

You can also market your business by attending agricultural shows and trade fairs. You can take the animal feeds to agricultural shows and then talk to farmers about them. Other ways to market your business is through social media and posters. 

Final Thoughts 

Animal feeds business is a profitable venture if you can supply quality feeds. Get a good business location where people rear animals and then market your business. It is also good that you ask your customers if they like your feeds. This way, you can quickly know what changes you need to make.