Feed Manufacturing Cost

Total Production Cost = Raw Material Cost + Processing Cost + Packing Cost + Overhead Cost


1. Raw Material Cost

Raw Material% in FormulaMarket Price (Approx.)Effective Cost (₹/kg feed)
Maize60–65%₹14 / kg₹9.10
Soya Meal25–30%₹70 / kg₹21.00
DCP1–2%₹35 / kg₹0.70
Limestone Powder~1%₹1.20 / kg₹0.01
Mustard Cake~1%₹57 / kg₹0.57
MBM1–2%₹28 / kg₹0.56
Medicines (Premix, Additives) + Oil2–4% + 2–4%₹200 / kg₹5.00
Total Raw Material Cost  ₹36.94 / kg

Raw Material Cost (Rounded): ₹37.00 / kg


2. Processing Cost

Processing ComponentConsumptionApprox. Cost (₹/Ton)
Boiler Fuel~40 kg / ton₹200
Electricity – Feed Mill~25 units / ton₹200
Electricity – Fixed Charges & Utilities (boiler, silos, office, pumps, etc.)~8 units / ton₹80
Labour₹180–200
Overheads (maintenance, depreciation, consumables, staff)₹150–200
Bank Interest (Approx. ₹3 crore loan @ 1% monthly, 4,000 MT/month)₹80
Total Processing Cost ₹900–950 / ton

Processing Cost (Average): ₹950 / ton ≈ ₹0.95 / kg

  • Bag Cost (PT / High Quality Bag): ₹15–20 per bag
  • Average Packing Cost: ₹0.50 / kg
Cost ComponentCost (₹/kg)
Raw Material Cost₹37.00
Processing Cost₹0.95
Packing Cost₹0.50
Total Pellet Feed Production Cost₹38.45 / kg (Approx.)

Total Cost Of Production =  Raw Material Cost + Processing Cost + Packing Cost  

Total Cost Of Production= Rs. 37 + Rs. 1 + Rs. 0.5 = Rs. 38.5

Selling Price= Rs . 50- 20-22 % Discount ( Dealer )  = Rs. 41

Profit = Selling Price – Cost Of Production = 41.0 – 38.5 = Rs. 2.5 / Kg( Inr ) ( Approximate )

The above calculation is for starter feed &is based on data collected from our existing customers and internet sources ( as per Indian Standards ) . The actual results may vary from the details mentioned above.