Running a business in the livestock sector is promising and is the right choice. It turns out that this business has great opportunities and affordable capital so that the prospects are tempting. In addition, this business is also assisted by using a corn husking machine that simplifies the production process from corn raw materials.
The Central Statistics Agency (BPS) noted that the consumption of chicken meat and eggs in Indonesia continues to increase every year. This shows that the demand for chicken as a source of animal protein also continues to increase. One of the main raw materials for the chicken feed business is corn. The raw materials can also be diversified into corn rice, corn flour, corn starch and so on. So to produce quality chicken feed, several factors must be considered, namely nutritional value, nutritional content, water content, and texture.
To start and develop a chicken feed business, the initial capital needed is to buy equipment, raw materials, and a place of business. Operational capital is the capital needed to pay for production, distribution, and promotion costs. Additional capital is the capital needed to carry out machine maintenance, product development, and so on.
Overview of estimated costs for each component:
Equipment: IDR 10 million – IDR 20 million
Raw materials: IDR 5 million – IDR 10 million
Business premises: IDR 5 million – IDR 15 million
Operational capital:
Production costs: IDR 3 million – IDR 5 million per month
Distribution costs: IDR 2 million – IDR 4 million per month
Promotion costs: IDR 1 million – IDR 3 million per month
Additional capital
Machine maintenance: IDR 500 thousand – IDR 1 million per month
Product development: IDR 1 million – IDR 2 million per month
Through the estimated calculations above, it can be analogized that if you want to start a business with a production capacity of 1 ton of feed per month, the costs that must be incurred are around IDR 20 million, operational capital around IDR 6 million per month and additional capital around IDR 1.5 million per month. So the total capital is around IDR 27.5 million.