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

Upscale the production and distribution of animal feed (powdering and blending raw materials and nutrients) adapted to the local context and needs, as well as supply the products to farmers through pay-as-you-go or harvest-based loans.

Expected Impact

Contribute to improving the productivity and nutrients of the current livestock production, which in turn enhances Rwanda's food and nutritional situation.

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 ROI)
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.
Livestock feed demand is forecast to reach 4,600 metric tons (MT) by 2030.(8)
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
< USD 500,000
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Industry, Innovation and Infrastructure (SDG 9)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) Decent Work and Economic Growth (SDG 8) Reduced Inequalities (SDG 10)
Sector Sources
  • 1) National Institute of Statistics of Rwanda (2020). Labour Force Survey Trends August 2020 (Q3). 2) International Fund for Agricultural Development (2019). Country Strategic Opportunities Programme 2019 – 2024 for the Republic of Rwanda. 3) Ministry of Agriculture and Animal Resources (2018). Strategic Plan For Agriculture Transformation 2018-2024. Republic of Rwanda. 4) Yilmaz, D.and Yilmaz, I.C. (2020). 'Comparative Cost Assessment of Cold Storage Plants and Natural Storage Structures for Potatoes', Potato Resources. 5) Ministry of Agriculture and Animal Resources (2018). Strategic Plan For Agriculture Transformation 2018-2024. Republic of Rwanda. 6) World Food Programme (2019). Fill the Nutrient Gap. 7) Ntirenganya, E. (2019). Poultry farmers appeal for affordable animal feed. 8) Enahoro, D., Njiru, N., Thornton, P. and Staal, S.J. (2019). A review of projections of demand and supply of livestock-derived foods and the implications for livestock sector management in LSIL focus countries.
IOA Sources
  • 9) Ntirenganya, E. (2019). Livestock industry generates Rwf 300 billion in revenues. 10) UN Comtrade database. 11) Food and Agriculture Organization of the United Nations. Modernizing Rwanda's livestock to attract investment and enhance food security. 12) Ziggers, D. (2009). Building a new feed mill: Go or no – go. 13) Haryo, M., Rifin, A. and Sanim, B. (2017). Factors affecting profitability on animal feed companies in Indonesia. 14) Alliance for a Green Revolution in Africa (2019). The Agribusiness Deal Room at the 2019 African Green Revolution Forum (AGRF). 15) Md Monirul I., Azadul, H.M., Akteruzzaman, Md, Tofael, A., Hashem, M., et al. (2019). 'Nutritional Compositions and Sensitivity Analysis of Poultry Feed Mills in Bangladesh through Experimental Economics Approach', Agricultural Research and Technology, 21(2). 16) Schimmel, H. (2016). Challenges and Opportunities of Animal Feed Processing and Marketing in Ethiopia: AKF Experiences. AKF, N2Africa. 17) Gashu, D., Demment, M. and Stoecker, B. (2019). 'Challenges and Opportunities to the African Agriculture and Food Systems', African Journal of Food, Agriculture, Nutrition and Development. 18) Food and Agriculture Organization of the United Nations (2016). Environmental Performance of Animal Feeds Supply Chains. Rome: FAO. 19) 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. 20) Lewis, M. (2017). The Negative Environmental Impacts of the Animal Agriculture Industry and the US Policies in Place to Protect It. New York: Union College. 21) Food and Agriculture Organization of the United Nations (2016). Environmental Performance of Animal Feeds Supply Chains. Rome: FAO. 22) Kraham, S. (2017). Environmental Impacts of Industrial Livestock Production. In: Steier G., Patel K. (eds) International Farm Animal, Wildlife and Food Safety Law. Springer, Cham. 23) Ntirenganya, E. (2017). Farmers want govt to subsidise animal feeds. 24) Ministry of Agriculture and Animal Resources (2017). National Agriculture Policy. 25) Ministry of Agriculture and Animal Resources (2018). Strategic Plan For Agriculture Transformation 2018-2024. Republic of Rwanda. 26) Shapiro, B. and Gebru, G. (2017). Rwanda Livestock Master Plan. International Livestock Research Institute. 27) Ministry of Agriculture and Animal Resources (2009). Strategic Plan For Animal Nutrition Improvement Programme For Rwanda. Republic of Rwanda. 28) Republic of Rwanda. Official Gazette nᵒ 22 of 30/05/2016. 29) Republic of Rwanda. Official Gazette No 40 of 04/10/2010. 30) Republic of Rwanda. Official Gazette N' Special of 20/04/2016. 31) Ministry of Agriculture and Animal Resources. About Ministry. 32) Ministry of Health. About us. 33) Food and Drugs Authority. About Rwanda FDA. 34) Africa Legal Network. Investment Guide - Rwanda. 35) Rwanda Development Board. Agriculture - Incentives for investors in the sector. 36) Mazimpaka, E. Characterization of Cattle Production Systems in Nyagatare District of Eastern Province, Rwanda. 37) Mahoro, J., Mbuza, F., Muasya, T. and Habimana, R. (2017). Characterization of indigenous chicken production systems in Rwanda. 38) Mazimpaka, E., Tukei, M., Shyaka, A. and Gatari, E. (2017). Poultry production and constraints in Eastern Province of Rwanda: case study of Rukomo sector, Nyagatare district. 39) 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. 40) Republic of Rwanda (2019). Voluntary National Review Rwanda 2019. 41) SDG Tracker (2021). Measuring progress towards the Sustainable Development Goals. 42) United Nations. Sustainable Development Goals. 43) Zamura.