Animal feed production

Animal feed production

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Animal feed production
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Food and Agriculture
Business Model Description

Build, operate and manage the production of affordable high-quality feed and supply it to farmers.

Expected Impact

Contribute to farmers' income and the general food security and health and wellbeing of the population.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 50 million - USD 100 million
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 500,000 - USD 1 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Decent Work and Economic Growth (SDG 8)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Good health and well-being (SDG 3)
Sector Sources
  • 1) World Bank (2020). Kenya Economic Update: Turbulent Times for Growth in Kenya. 2) World Bank database, 2020. https://data.worldbank.org/ 3) ISIC Classification Revision. Comparative Industry Forecast Tables - Agriculture. 4) World Bank (2019). Unbundling the Slack in Private Sector Investment: Transforming Agriculture Sector Productivity and Linkages to Poverty Reduction. April 2019 | Edition No. 19. 5) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F. (2020). The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press. 6) Ministry of Agriculture (2019). Agricultural Sector Transformation and Growth Strategy: Towards Sustainable Agricultural Transformation and Food Security in Kenya 2019-2029. 7) Government of Kenya. National Agriculture Investment Plan (NAIP) 2019-2024. http://extwprlegs1.fao.org/docs/pdf/ken189052.pdf 8) World Bank (2020). Kenya Economic Update: Turbulent Times for Growth in Kenya, 9) Food and Agriculture Organization of the United Nations. Agriculture Policies Database for Kenya.
IOA Sources
  • 10) Kenya National Bureau of Statistics (2020). Kenya Economic Survey 2020. https://www.knbs.or.ke/?wpdmpro=economic-survey-2020 11) Republic of Kenya (208). Third Medium Term Plan 2018 – 2022 Transforming Lives: Advancing Socio-economic Development Through The 'Big Four'. 12) Food and Agriculture Organization of the United Nations (2017). Africa Sustainable Livestock 2050 - Kenya Country Brief. http://www.fao.org/3/a-i7348e.pdf 13) Kenya Market Trust (2017). Mapping animal feed manufacturers and ingredient suppliers in Kenya. https://www.kenyamarkets.org/wp-content/uploads/2017/10/Summary-Report-on-Animal-Feed-Millers-and-Ingredient-Suppliers-in-Kenya-2017.pdf 14) ABS TCM Ltd. (2013). Study on the Kenyan Animal Feed and Fodder Sub-sector. https://www.dialogkenya.info/docs/RES-KenyaFeedIndustryPolicyRegulatoryIssues--2013.pdf 15) Md Monirul, I., Azadul, H.M., Md Akteruzzaman, Tofael, A., Hashem, M., et al. (2019). 'Nutritional Compositions and Sensitivity Analysis of Poultry Feed Mills in Bangladesh through Experimental Economics Approach', Agriculture Research and Technology, 21(2). https://juniperpublishers.com/artoaj/pdf/ARTOAJ.MS.ID.556159.pdf 16) Schimmel, H. (2016). Challenges and Opportunities of Animal Feed Processing and Marketing in Ethiopia: AKF Experiences. AKF, N2Africa. https://www.slideshare.net/ILRI/n2-africa-posterakfjan2016 17) Agroberichten Buitenland - Ministerie van Landbouw, Natuur en Voedselkwaliteit (2020). Market study with insights into commercial and home-mix animal feed sectors in Kenya. https://www.agroberichtenbuitenland.nl/actueel/nieuws/2020/11/11/market-study-with-insights-into-commercial-and-home-mix-animal-feed-sectors-in-kenya 18) Kenya Market Trust (2017). Mapping animal feed manufacturers and ingredient suppliers in Kenya. https://www.kenyamarkets.org/wp-content/uploads/2017/10/Summary-Report-on-Animal-Feed-Millers-and-Ingredient-Suppliers-in-Kenya-2017.pdf 19) Food and Agriculture Organization of the United Nations (2016). Environmental Performance of Animal Feeds Supply Chains. Rome: FAO. http://www.fao.org/3/a-i6433e.pdf 20) Delgado, C., Narrod, C. and Tiongco, M. (2003). Policy, Technical, And Environmental Determinants And Implications Of The Scaling-Up Of Livestock Production In Four Fast-Growing Developing Countries: A Synthesis. International Food Policy Research Institute. http://www.fao.org/3/x6170e00.htm#Contents 21) Lewis, M. (2017). The Negative Environmental Impacts Of The Animal Agriculture Industry And The U.S. Policies In Place To Protect It. New York: Union College. https://digitalworks.union.edu/cgi/viewcontent.cgi?article=1055&context=theses 22) Kraham, S. (2017). Environmental Impacts of Industrial Livestock Production. In: Steier, G. and Patel, K. (eds) International Farm Animal, Wildlife and Food Safety Law. Springer, Cham. Springer. https://link.springer.com/chapter/10.1007/978-3-319-18002-1_1#citeas 23) Fertilizers and Animal Foodstuffs (Amendment) Act No.20 of 2015. http://kenyalaw.org/kl/fileadmin/pdfdownloads/AmendmentActs/2015/FertilizersandAnimalFoodstuffs_Amendment_ActNo20of2015.pdf 24) Ministry of Agriculture, Livestock, Fisheries and Irrigation (2019). Draft National Livestock Policy. https://www.kilimo.go.ke/wp-content/uploads/2019/02/Draft-reviewed-National-Livestock-Policy-February-2019.pdf 25) Fertilizers and Animal Foodstuffs Act, Chapter 345, 2012. http://extwprlegs1.fao.org/docs/pdf/ken63334.pdf 26) Fertilizers and Animal Foodstuffs (Amendment) Act No.20 of 2015. http://kenyalaw.org/kl/fileadmin/pdfdownloads/AmendmentActs/2015/FertilizersandAnimalFoodstuffs_Amendment_ActNo20of2015.pdf 27) Livestock Bill 2019. https://www.kilimo.go.ke/wp-content/uploads/2019/12/Livestock-Bill-10th-December-2019.pdf 28) ABS TCM Ltd. (2013). Study on the Kenyan Animal Feed and Fodder Sub-sector. https://www.dialogkenya.info/docs/RES-KenyaFeedIndustryPolicyRegulatoryIssues--2013.pdf 29) Ministry of Agriculture, Livestock, Fisheries and Irrigation (2019). Draft National Livestock Policy. https://www.kilimo.go.ke/wp-content/uploads/2019/02/Draft-reviewed-National-Livestock-Policy-February-2019.pdf 30) KENIvest. Investment Incentives. http://www.invest.go.ke/starting-a-business-in-kenya/investment-incentives/ 31) Kenya Revenue Authority website. https://www.kra.go.ke/en/ngos/incentives-investors-certificate/investing-in-kenya/incentives-investors 32) KENIvest. Investment Incentives. http://www.invest.go.ke/starting-a-business-in-kenya/investment-incentives/ 33) Kenya Revenue Authority website. https://www.kra.go.ke/en/ngos/incentives-investors-certificate/investing-in-kenya/incentives-investors 34) Deutsche Welle (2013). Women take over Kenya's farming sector. https://www.dw.com/en/women-take-over-kenyas-farming-sector/a-16716322 35) SDG Tracker (2021). End poverty in all its forms everywhere. https://sdg-tracker.org/no-poverty 36) Tamfeeds (2021). About. http://www.tamfeeds.com/about/4594116712#:~:text=As%20the%20very%20first%20company,and%20additives%20in%20East%20Africa.