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| Most small family owned feed businesses here not only serve the small hobby producer feeding a few head but also larger operations who raise livestock as their sole source of income.
I guess what I'm trying to say is that you need to be able to service every customer, whether they need a couple bags of sweet chop and a bag of dog food or a semi-load of cake delivered to their overhead bin. A niche market for servicing the needs of organic beef production only, I don't see how anyone could make a living at that.
As a small customer I used to buy 2 tons of cracked corn/DDG mix every 3 weeks or so through the winter for my weaned calves, salt and mineral for everything, and a ton of lick tubs every so often. Now that I have retired, all I ever buy is a 40lb bag of cat food when I need it.
IMO, there aren't enough small hobby type customers around here that a feed business could make a living focusing only on those customers. Your area may be different.
As mentioned, you can have your own home made mix, but also need to affiliate with a well known feed brand (perhaps several brands if possible) offering a broad spectrum of products for a broad spectrum of customers who raise a broad spectrum of livestock.
Takes a wide array of products if you seek to provide every customers with their needs for cattle, sheep, swine, horses, and poultry. Local family owned feed guy here also offers quite a few veterinary pharmaceuticals, water system products, and livestock equipment too.
The workforce of this small operation consists only of the owner and a young hired guy who minds the store while he is out on deliveries. Facilities are very basic. No pellet mill of his own. Pellets are delivered from 100 miles from an established mill. He has a large quonset for feed storage, 3 overhead bins which vary in contents throughout the year, a small trailer for office and smaller items, and an outdoor scale large enough to accomodate a semi.
Carries several name brands including CHS feed, Vigortone, Payback, and Purina minerals, CountryVet pet foods,American Stockman salt, Vern's Mfg and Stur-D livestock handling equipment, Ritchie waterers, among others. This guy is a long-time neighbor. He took over an existing elevator facility that burned down. Basically, he started with only the quonset that was the only thing left. Seems to do a good business, and is a top notch guy to deal with too.
HTH, and good luck. Is there a possiblity you could buy into and eventually take over an existing operation already providing this service?
Edited by John SD 5/27/2013 12:39
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starting a feed business
