BEEF-FATTENING: a money-spinning business
Introduction
Cattle-rearing is not a new business Nigeria. What is new, however, is the modern method which is unknown to the local farmers, most of whom risk their lives habitually throughout the dry season toiling and looking for where to migrate to in order to find water and feed for the animals. A study of modern ways of breeding cattle recommends beef-fattening as a more scientific and convenient approach, compared to migrant farming which is practically out-dated. The beef fattening project would indeed be superb if incorporated into an integrated farm agenda.
Studies across countries and in Nigeria, shows that Beef Fattening, whether on a small or large-scale basis, is a lucrative business. It consists of buying healthy stock, feeding and fattening them for about 120 days (farming cycle), and selling them at maturity, anytime of the year.
Ideal Stock Variety
The preferred local breed to stock is Sokoto Gudali, with short horn; the type that has ‘tilled the ground’ and become strong. The best places to buy this breed are Zaria, Kano, Katsina, Sokoto and Niger Republic.
Breeding Cycle
The best attainable age bracket to start stocking a local bull is 3 to 4 years. At that age, the bull is fully independent from the parent. Breeding before resale usually lasts for an average duration of 6 months, although this period may be shortened to 3 to 4 months depending on the size and weight of the animal before purchase; the greater the weight, the shorter the breeding cycle.
Purchase & Resale Prices of Stock
The average price per bull of age 3 years is N150, 000 while the resale price of a 3 ½ year old bull is about N200, 000.
Advantages derivable from Project
The greatest advantage of embarking on this project is that electricity is not needed. There may be need to light up lanterns at night to keep pests and dangerous creatures at bay. This is very encouraging in the Nigeria of today where the problem of electricity has constrained the growth of industries. In this case, unforeseen infrastructure costs would not arise.
Another possible advantage is that, if given adequate publicity, the project could attract federal government support, in addition to possible grants from multilateral development agencies.
A number of people regard this project as a prestige project and many people would have wished to set up this project, if they had all it takes to do so – capital, time, knowledge of the business, etc.
Problems facing the Bull Fattening Business
The greatest problems are: health hazards/ epidemic, transportation problems (prospects of accident and exposure to heat during distant journeys, which may result to fatigue and possible death). Apart from transportation risks, other forms of risks are largely controllable. Health hazards are handled by Veterinary Doctors while heat problems are handled through proper care.
Lack of finance is another problem that a farmer may face. However, the amount of money to start is relatively small, and affordable. The micro finance banks provide loans but at exorbitant costs, with interests soaring above 5% per month.
Health Care
Veterinary doctors who carter for the animal health, are to be found all over FCT; some of them have offices at the municipal abattoir. Initial treatment meant to flush the bowels of the animals so as to rid them of worms is given as soon as they are brought to the breeding centre. Thereafter, the animals are further treated from time to time to rid them of parasites. The average cost of treating one animal per week is about N2, 000. It is also advisable to ensure that the animals have been properly vaccinated against common diseases before bringing them to the feedlot.
Importantly too, the farm manager must endeavour to bathe the animals at least once a week. Given proper care, there is less danger of diseases and parasites affecting confined animals and the fattening period may be shorter. It is instructive to avoid animals with rough skin and those which are blind and lame
Feeding Arrangement
The local feeds, which constitute mainly maize and guinea corn products, are sold in bags at the price of N7, 000 per bag. A diet of 80 to 90% diet of grain is the common way (the feedlot way) to fatten cattle within a period of 3 to 4 months. About 1 ½ bags costing about N10, 000 will be required to feed one bull on a weekly basis. This means that in a given month, about 6 bags costing N60, 000 will be required to feed one bull. Supplementary feeds include groundnut leaf and guinea corn peel. This will add about N5, 000 per animal per month, bringing the total feeding cost to about N65, 000 per month per bull. Feed trough and water troughs are used in most farms. A modest kind of feed trough that the local farmers use is the old form of water-trough placed under bathroom showers.
A low, carefully constructed water well or tank filled and refilled with water periodically should be stationed outside the housing structure. The animals would after feeding, be taken to the low well/ tank so that they could drink water. It will be advantageous to connect the site of the farm to a public water source. The well should be bored and cemented with outlet to drain away dirty water. In the alternative, a number of tanks should be bought and filled with water.
Labour
Labour required is in the ratio of 10 workers to look after 100 bulls plus 2 security men. A mini-scale operation should consider 1 worker per bull and a security man who will double as an assistant. Average salaries range from N15, 000 to N25, 000 per month.
The owner of the business should hire people who will work in the farm for him but he should endeavour to embark on supervision visits frequently.
Housing
The best form of shelter is usually a pen with open-sided walls located within the farm premises, close to sheds of trees and a grazing yard. The pen is usually constructed close to the farm house, which provides accommodation for manager’s office and pantry. Cattle generally like rain and cold weather. Hence, it would be beneficial to expose them to suitable environmental conditions.
For confined animals, wood (timber frames) or mud should form the walls of the housing while thatch or asbestos should provide the roofing. Concrete floor is ideal for the main animal house, store and offices. Zinc roofing should be avoided as this generates too much heat.
Average building height should range from 1.7 to 1.9 meters while the width should vary from 2.1 to 2.7 meters. Each animal should be allocated an area of about 1.5 to 4.5 sq. meter space. Fencing with gate will help to beef up security.
Dilis Investment Limited is willing and able to prepare a comprehensive Feasibility Report/ Business Plan for businessmen who are aspiring to start and manage the Bull-fattening business.
TIPS FOR SETTING UP A MODERN POULTRY BUSINESS
Background
It may be appropriate to give commendation to the government for banning certain commodities that we have all-round internal capacity to produce. Such banned items include poultry, fruit juice, shoes, timber, toothpick, and table water, and a host of others.
However, the focus here is on how to set up modern poultry business. It is therefore expected that if many people take advantage of the Poultry-import prohibition policy, Nigeria would soon become self-sufficient in poultry production, and indeed one of the most renowned poultry-breeding hubs in the world. Notably, those who invest in the project will be smiling to their banks frequently.
Market Outlook
Poultry products, chicken in particular, are in high demand in our country and in all other countries across the world. This is because poultry products constitute major protein resources for human needs. Since the products are less fattening compared to other meat products, they are preferred in a modern society that is concerned about obesity. More importantly, the shortage of pork and beef is a boost to the future development of the poultry industry. Research has shown that: the well-to-do people eat poultry products every other day on the average; and again, over 55% of the middle and upper class eat eggs on a fairly regular basis and about that same proportion, especially those in the south of the country, undoubtedly eat chicken during festival periods. This is an indication that there is a regular market for eggs and Layers and seasonal market for Broilers.
Management System
The poultry business is also very easy to manage. From the small backyard flock to the one thousand-bird automated house, poultry management systems can be classified in a number of ways. In technical terms, poultry management systems range from the Village backyard System to the Poultry Controlled, to the Contained Management, to the Deep Litter, to the Backyard Floor, to the Battery Management System. All may differ in scope and complexity but definitely the principles are similar.
Flash points
⦁ The best way to go about poultry business in Nigeria is to start small, using the Deep Litter or the Battery Management (modern Cage System), then progressively expand, learning from the lessons afforded by practice and experience;
⦁ House and equipment should be thoroughly cleaned and disinfected two weeks before chickens arrive and fairly frequently thereafter;
⦁ Newly hatched chicks are commonly vaccinated at the hatchery to protect them from Marek’s disease;
⦁ It is always best to work with local resources, namely: feed, suppliers and equipment, such as feeders, watering equipment, nesting roosts;
⦁ It is advisable also to employ commercial feedstock: chick marsh, grower marsh and broiler marsh for improved brood operation;
⦁ For an investor keeping Pullets for Layers, the rearing stages of chicks is from 8 to 10 weeks of age until they start to lay at 18 to 22 months of age;
⦁ Where nests or cages are preferred, there may be need to limit a nest or cage to every four pullets;
Profitability
In terms of turnover, about N3m is realizable from the sales of a set of reproduced Broilers (2,000 units at an average N1, 500 per mature unit) at the end of a given year;
Eggs appear to be even more profitable. For instance, the gross revenue accruable from eggs per 1, 000 units of the Parent Stock Layers per season (lasting about 3 months) is in the neighbourhood of about N7, 500, 000 (estimate of 10 crates per Layer at an average market price of N750 per crate);
, the profit margin is quite impressive, implying a fantastic Payback period of less than 2 years, with adequate cash provision allowed for possible risks;
Investment Outlay
The cost of setting up a beef-fattening venture could be trimmed down to as little as N4.5m.Anyone wishing to establish this business is free to adjust the size to suit his pocket. Usually, the larger the capital invested in a poultry project, the brighter the profitability prospect, all things being equal.
Conclusion
It is advisable for the investor to seek the services of a competent Consultant who should prepare a proper Business Plan that will provide guide for setting up the project, especially where external finance is being solicited.
Dilis Investment Limited is willing and able to prepare a comprehensive Feasibility Report/ Business Plan for businessmen who are aspiring to start and manage a modern poultry business.
GUIDE TO SETTING UP A COMMERCIAL GOAT REARING VENTURE
Introduction
Goats are very friendly, inquisitive animals that are usually domesticated. They are easy to handle, hence they make things easy for the small farmer. The goat is a ruminant whose balanced diet comprises good mixed pasture, good quality hay, 16% non-urea dairy ration, fresh water and minerals.
Female goats are called does, males are bucks, and young goats kids. It takes five months after a doe is mated to a buck before the kids are born, two or more. When the kids are weaned, the doe may possibly be milked twice a day, and the milk can be used for drinking, making yogurt, butter and cheese, or can be fed to other young farm animals.
How to raise goats
⦁ Build a pen to hold your goats; a four-foot high mesh fence would work well; it should be tall enough that a goat will not jump over it; a rural environment is most idle.
⦁ I advise you should put no more than sixteen goats on a half plot of land of land in order to give them plenty of room and a lot of land to graze.
⦁ A good way to start the goat business is with one Buck and three Does
⦁ A goat has an average of two kids once a year; so with your four goats in a year, you will have additional six little ones or thereabout.
⦁ At the end of a particular season, sell all the old males; bring in a new buck so the old ones are not related to any of the females.
⦁ A good shelter is a critical survival factor.
⦁ The goats also need to be fed with hay and some form of supplement on a daily basis as they get the vitamins and minerals that they need from the land.
⦁ When you sell your goat, you can expect to receive more than double your investments at the end of the year;
Profitability
Consider rearing 16 goats, 4 males and 12 females, on 1 plot of land, with half a plot for a start and the remaining portion for future expansion. The total capital involved will be around N120,000; given that each of the kids were procured for N5,000 each, land-lease per annum obtained for N20,000, and feeds for N20,000.
At the end of the year, each of the 12 female goats on the half plot of land will give birth to a minimum of 2 goats, which brings the total at the beginning of the next year to 24 new does. If 4 of the old bucks and 12 of the old stock of Does are sold off at a concessionary average price of N10, 500 per unit that gives you about N168, 000 in revenue earnings. The cycle will be repeated during the next season, and with the addition another batch of 4 new bucks, at least a marginal revenue of N168,000 will again be generated. Assuming the whole one plot of land was utilized in the second year, it means that the gross revenue that will be generated will jump to N336, 000, with profit alone averaging N216,000. This is a micro-operation, which means that if the capital was to be doubled to around N240,000, a profit margin of about N432,000 is assured.
Against approximate production costs of N180, 000 per herd, a small investor will earn about N312, 000 by the end of the first year. In year 2, such an investor would earn practically double this amount. There will progressively be much greater profit if investment outlay is marginally scaled up.
Details of the housing, feed-stock, water, drug, preferred stock, cost items, the market, regulatory provisions, staffing, day-to-day management, profitability of the venture and other essential details, will be embodied in a comprehensive Feasibility Report, which the writer may be willing to prepare for an interested prospective investor.
Dilis Investment Limited is willing and able to prepare a comprehensive Feasibility Report/ Business Plan for businessmen who are aspiring to start and manage a commercial goat-rearing venture.
ESTABLISHING ANIMAL-FEEDS FACTORY as subsidiary of the INTEGRATED FARM
Introduction
Animal feeds refer to a mix of whole or processed grains, concentrates, and commercial feeds for all species of animals. Modern animal feeds factory is the kind of business set-up that Nigeria needs today.
The old nomadic practice of feeding animals was such that when grass and fodder get depleted in one area, domesticated animals such as cattle, goat and sheep are moved to the areas where fodder is in abundance. This practice is becoming out-dated. The modern method is to confine the animals to an enclosed space, and possibly incorporate commercial feeds factory into the breeding space.
The kind of feed factory being introduced here will serve the needs of different varieties of animals – cattle, poultry, goats, and conceivable others. Early mills were also built for the purpose of grinding wheat and corn for human consumption. It was later that the practice was adopted for animal needs. In this time and age, simple grinding is becoming archaic not only for human beings but also for animals. The modern method goes beyond the rudimentary crushing and simple mixing of feed ingredients, advancing to automated-processing, which involves diverse technological stages of de-hulling, extrusion, machine-driven grinding, rolling, flaking, popping, roasting, micro-waving, exploding or pelleting. Ultimately, the modern method has shown that improved nutrient value leads to improved response in growth rate. At the same time feed application is becoming more convenient and administration more efficient.
Diets given to different species are, however, not all the same. For example, livestock animals (cattle, cows, bulls, goats, sheep, llamas. and heifer) are fed on a diet that consists mainly of roughages; whereas poultry, swine, and fish are fed with concentrates. Livestock in a feedlot within the animal farm may be fed with natural energy feedstuffs which usually come from grains, supplied alone or as part of a total mixed ration.
Concentrates (distillates mainly from cereal grains and their by-products) are high in energy. They may also be prepared from high-protein oil meals or cakes, and by-products resulting from sugar beets and fibres derived from sugarcane processing. Concentrates may also be locally formulated from roughages, grasses, or plant parts like straw, forage, root crops such as cassava and potatoes.
Feed Formulation
Poultry ration requires appropriate mix of components of carbohydrates, fats, proteins, minerals and vitamins in their feed. Carbohydrates, which are usually supplied by grains including corn, wheat, barley, etc., serves as a major energy source in poultry feed. Fats, usually from tallow, lard or vegetable oil are essentially required to provide important fatty acid in poultry feed for membrane integrity and hormone synthesis. Proteins are important to supply the essential amino acids for the development of body tissues like muscles, nerves, cartilage, etc.
Meals from soybean, canola, and corn gluten are the major source of plant protein in poultry diets. Calcium, phosphorus, chlorine, magnesium, potassium and sodium are also required in larger amounts by poultry. Vitamins, such as vitamin A, B, C, D, E, and K, on the other hand, are the components that are required in lower amounts by poultry animals.
The easiest and most popular way to feed birds is to use pelleted feeds. Aside from the convenience to the farmer, pelleted feeds enable the bird to eat more at a time. Improvement of feed conversion, decreased feed wastage, improved sweetness have been noticed when birds were fed with pellet feed as compared to birds fed with mash feed.
Commercial manufacturing of pelleted feed usually involves a series of major processes including grinding, mixing and pelleting. The produced pellets are then tested to determine quality. To enhance good health and growth, antibiotics are often added to the pelleted feed.
Feed formulation researchers have noticed that smaller particle-sized feed will improve digestion in most animals due to the increased surface area for acid and enzyme digestion in the gastrointestinal tract. However, other researchers have recently brought to our attention the necessity of coarse particles for poultry feed to complement the natural design and function of the gastrointestinal tract
All of this data shows that both fine and coarse particle sizes do have different functions in poultry feed. For instance, appropriate proportions of these two ingredients suit the live performance of mainly broilers.
There is no specific requirement of feed intake for each livestock because their feed continuously varies based on the animals’ age, sex, breed, environment, etc. However, basic nutrient requirements of a livestock’s feed must consist of protein, carbohydrates, vitamins and minerals. Dairy cattle need more energy in their feed than other types of cattle. Like other animals, livestock also require appropriate proportions of fine and coarse particles in their feed. Theoretically, finer particles will be easier to digest in the rumen; however the presence of coarse particles might increase the amount of starch entering the small intestine, thus increasing energetic efficiency.
Similarly, livestock consume grains as the main feed or as a supplement to the forage based feed. Processing grains for feed is aimed at getting the easiest digestible grains to maximize starch availability, thus increasing the energy supply. Milk performance is significantly better when the cattle are fed with ground corn.
Corn, sorghum, wheat and barley (grains) are the most used cereals in the preparation of feed for the livestock, poultry, swine, and fish industry. The commonest grains, which have also become the most popular, economical, and widely available feed ingredient for use in Nigeria, in some livestock and poultry feeds are corn and soybean meal. Sometimes, for ruminants, grass is mixed.
Formulating a swine ration considers the required nutrients at various growth stages. The basic nutrients required are crude protein, energy that is fast to digest and absorb, as well as minerals, vitamins and water. Ground cereal grain provides the source of the carbohydrate, soybean meal as a protein source. Minerals like calcium and phosphorus are also added likewise vitamins. The feed can be fortified with by-products of milk, meat, cereal grains; and other related products. Antibiotics may also be added to reinforce the feed and help the animal’s health and growth.
Cultivated fish eat specially formulated pellet feeds containing the required nutrients for both fish health and the health of humans who eat fish. Herbivorous fish eat mostly plant proteins like soy or corn, vegetable oils, minerals, and vitamins; and carnivorous fish are given fish oils and proteins. Carnivorous fish feed contains 30-50% fish meal and oil. Soybean meal is a good alternative to fishmeal.
Particle sizes convenient for different fishes are taken into consideration in the milling process. Hence particle size affects the selection of the mill equipment to be used, and some properties of the mill equipment (for example corrugations, gap, speed, and energy consumption).
Quality Control
The quality of the prepared feed ultimately depends on the quality of the material such as the grain or grass used. The raw material should be of very good quality. Commercial feed manufacturing is an industrial process, and therefore should follow modern, acceptable procedures specified by the National Food and Drug Administration and Control (NAFDAC) in Nigeria. The Agency is in charge of the regulation of human food and animal feed for poultry, livestock, swine, and fish. NAFDAC approves a management system in which food safety for humans and animals is addressed through the analysis and control of biological, chemical, and physical hazards from raw material production, procurement and handling, to manufacturing, distribution and consumption of the finished product. Similar to human foods, animal feeds must be unadulterated and wholesome, prepared under good sanitary conditions, and truthfully be labelled to provide the required information to the consumer. The quality standards are tested in accredited laboratories.
Cost considerations
Feeding costs make up a sizeable proportion of the overall cost of raising poultry animals. Birds in general require feeding more than any other animals, particularly due to their faster growth rate and high rate of productivity.
Manufacturing Process
Depending on the type of feed, the manufacturing process usually starts with the grinding process. Grinding of selected raw material is to produce particle sizes to be cost-effective and easily accepted by the animals. Depending on the formulation, feed could contain up to 10 different components including carbohydrate, protein, vitamins, minerals and additives. The feed ration can be pelletized (formulated in form of pellets) by proportionally homogenizing the specific compositions. Pelleting is achieved by various methods, but the most common means is by extrusion. A hygienic environment is important during the entire process of the feed production to ensure quality feed.
Milling (crushing and grinding) cereal grains by mechanical action involves several forces like compression, shearing, crushing, cutting, friction and collision. The particle size of the ground cereal is very important in the animal feed production; smaller particle sizes increase the number of particles and the surface area per unit volume which increase access to digestive enzymes. Other benefits are increased ease of handling and easier mixing of ingredients.
Finished Products
The forms that the finished feed products could take are meal, crumbles, pellets, blocks, liquid.
Standard Equipment
Roller and Harmer Mills are the two types of processing equipment generally used to grind grains into smaller particle sizes.
A simple feed distribution system, service extension of an already existing animal farm, can be constructed locally. Local feed manufacturing equipment includes hand scoop shovel, simple basic mixing tool or tip-tub mixes.
The most technologically advanced feed manufacturers go the extra mile to monitor ingredient quality, arrange preventive maintenance programmes, and in some cases apply computer technology and know-how in order to efficiently manage material mix and ensure standards. The newest technology for feed manufacturing further introduces enhanced ways of eliminating costs and disposing wastes emanating from the processing of oil seeds. The waste materials or by-products are also assessed to determine their definite market value. Chemical analyses that take place in modern contexts confirm the protein value of the feed products, as well as the mineral and vitamin contents. The process also specifies the limiting factor in the production of meat and eggs. The need to process and mix those by-products with main feed grains is also being emphasized.
Conclusion
Details of all it will take to set up the animal feeds factory, including cost and profitability analyses, will be embodied in a Feasibility Report for interested investors.
