Have you researched much about the pellet mill?  I have worked in a couple of feed mills and we always had a boiler to condition the feed prior to pelleting and also a cooling tower to cool and dry the pellets.  It seems like that would get expensive in a hurry.

It also takes a lot of experience to run a pellet mill properly.  And then you compound the problem once you start bagging.  If you bag too wet, you get mold.  Too wet also causes shrinkage after it is weighed/bagged so your 50.5 pound bags may only be 49 pounds and the state shuts you down.  Then if you try to allow for it, you get 52 pound bags so then 4% of your product goes out the door with the 50 pounds you charged for.  We had a semi go out with "50,000" and got stopped at the DOT scale for being overweight.  The trucker was not happy, neither was the mill manager.

You run into the same scale problem with bagging any feed.  And then there is the analysis issue already mentioned.  And watch for the guy who brings in soybean meal spiked with urea to bring the protein test to specs.  Or the bin that does not empty out and you mix a batch using part of the previous batch.

If your are organic, maybe USDA will not be such a problems but they are a real burger on any residue that is not mentioned on the label.  We had issues with stock rotation also, and dust control and even regulations as far as "PCB's" in electrical transformers at the facility (but this was 30 years ago.)  Oh, is OSHA still out there?

BTW, welcome aboard newagtalk, and good luck with your venture.