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The short answer
A small feed mill grinds and mixes maize, protein meals and additives into bagged poultry feed for local farmers. The core kit is a hammer mill, a mixer, a weighing scale and a bag stitcher, but most of the money goes into raw materials, and margins per tonne are thin, so the business depends on steady buyers, careful formulation and buying grain well.
What a small feed mill does
Commercial poultry farmers buy feed either as branded bags from large mills or as locally mixed feed from small mills near them. A small mill buys grains and protein meals, grinds them, mixes them to a recipe for each type of bird and stage (chicks, growers, layers, broilers), bags the result and sells to farmers within delivery distance. Some small mills also mix to a farmer's own recipe for a fee.
The pull for a small mill is price and freshness: a farmer close by can buy smaller quantities more often and can see the ingredients. The challenge is consistency. A farmer who loses egg production after a bad batch will not come back.
The machines
Machine prices vary widely by capacity, motor type, local or imported build and the seller. We did not find a reliable published price list, so the figures below are an example only. Get at least three written quotes, and ask to see each machine running.
| Equipment | Purpose | Example cost |
|---|---|---|
| Hammer mill | Grinds maize and other grains | ₦1,800,000 |
| Vertical mixer | Blends ground grain, protein meals and premix evenly | ₦2,200,000 |
| Platform scale | Weighs every ingredient and bag | ₦150,000 |
| Bag stitcher and sundries | Closes bags; scoops, pallets, tarpaulins | ₦250,000 |
| Total equipment (example) | ₦4,400,000 |
Power is the other fixed choice. Mills run on grid power, a diesel engine or both. If you are on a Band A feeder, NERC's July 2025 order for Ikeja Electric set Band A at ₦209.50 per kWh, but supply can drop; budget for a backup engine and check your own DisCo's current tariff.
Raw materials and formulation basics
Poultry feed combines an energy source (mainly maize), protein sources (such as soybean meal, groundnut cake or fish meal), fibre and filler (such as wheat offal), minerals (limestone or bone meal for laying birds) and a vitamin and mineral premix. Each stage of bird needs a different balance; layers need more calcium, broiler starters more protein.
- Get a recipe from a qualified animal nutritionist, a university livestock department or an agricultural extension officer. Do not copy recipes from social media.
- Buy grain dry and free of mould. Mouldy maize can carry toxins that harm birds and will damage your name quickly.
- Store grain off the floor, in a dry, ventilated room, and use the oldest stock first.
- Keep a batch record: date, recipe, ingredient sources and weights, and which farmer bought each batch.
Worked example: margin on one tonne
This is an example with assumed prices for one tonne of finished feed sold as 40 bags of 25kg.
| Item | Amount |
|---|---|
| Raw materials for 1 tonne (assumed) | ₦650,000 |
| Power or diesel for milling | ₦15,000 |
| Labour | ₦10,000 |
| 40 bags at ₦200 | ₦8,000 |
| Total cost | ₦683,000 |
| Sales: 40 bags at ₦18,500 | ₦740,000 |
| Margin per tonne | ₦57,000 |
That is about 7.7% of sales. At five tonnes a week the mill would make about ₦285,000 a week before rent, delivery, machine repairs and bad debts. Raw materials for those five tonnes would tie up about ₦3,250,000 at a time, so working capital, not machinery, is usually the bigger need. A 5% rise in grain cost that you cannot pass on would cut the margin per tonne by ₦32,500, more than half of it.
Quality control that keeps buyers
- Weigh every ingredient for every batch; guessing by the bucket is how recipes drift.
- Mix for the full time your mixer's maker recommends so the premix spreads evenly; a short mix leaves some bags short of vitamins.
- Label each bag with the feed type, batch date and your phone number.
- Keep a sample from each batch for a few weeks so you can check it if a farmer complains.
- Clean the hammer mill and mixer between feed types, especially when switching from medicated to plain feed.
Who buys, and the demand risk
- Small and medium layer and broiler farms within delivery distance.
- Catfish farmers, if you also mix fish feed (a different recipe and often a pelleting machine).
- Farmers' groups and cooperatives buying in bulk.
Demand moves with bird numbers. Nairametrics reported in March 2026 that a shortage of day-old chicks meant some farmers could not restock until late 2026. Fewer birds on farms means fewer bags sold. Talk to your target farms about their restocking plans before you commit to large grain purchases. Our planned guide to poultry farming risks and feed prices covers the farmer's side.
Financing and registration
The Bank of Agriculture's loan requirements page, updated September 2025, lists conditions for micro and SME loans, including a lien deposit for micro loans and collateral and six months of bank statements for SME loans. Check its current terms directly. Register the business with the CAC before approaching any lender or large buyer; our guide to business name or limited company helps you choose.
Where Pryme fits
A Pryme Business Account can take transfers from farmers and send invoices for credit sales. The Finance agent prepares a record of who owes what, and a person approves anything above the ceiling you set.
Questions people ask
How much does it cost to start a small feed mill in Nigeria?
Equipment for a small mill can run into several million naira, and raw materials for a few tonnes often cost as much again. Get written machine quotes and price grain locally before planning.
Is producing poultry feed profitable?
It can be, but margins per tonne are thin. In our example the margin was about 7.7% of sales, so volume, grain buying and steady buyers decide profit.
What ingredients are used to make poultry feed?
Mainly maize for energy, soybean meal, groundnut cake or fish meal for protein, wheat offal, limestone or bone meal and a vitamin premix. Get a recipe from a qualified nutritionist.
Do I need NAFDAC approval to sell poultry feed?
Ask NAFDAC directly before selling bagged feed under a brand name. We could not confirm the current rule for small mixers.
Sources
- NERC July 2025 Supplementary Order to MYTO 2024, Ikeja Electric (ORDER/NERC/2025/064) · accessed Oct 2026
- Egg prices rise to N8,500 as chick shortage tightens supply nationwide (Nairametrics, 29 Mar 2026) · accessed Oct 2026
- Bank of Agriculture: loan requirements · accessed Oct 2026
- CAC New Schedule of Fees (29 May 2025) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.