Animal feed production and distribution

Animal feed production and distribution

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Animal feed production and distribution
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

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

Expected Impact

Enable quality animal products, which contribute to agricultural productivity and nutritional improvements.

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.
Short Term (0–5 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
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
  • (I) 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. (II) United Nations Development Programme (2019). Briefing note for countries on the 2019 Statistical Update: Uganda. (II) Ministry of Agriculture, Animal Industry and Fisheries. Agricultural sector potential in Uganda. https://www.agriculture.go.ug/agricultural-sector-potential/ (IV) National Planning Authority. National Development Plan III (NDPIII) 2020/21 – 2024/25. (V) Fowler, M. and Rauschendorfer, J. (2019). Agroindustrialisation in Uganda. https://www.theigc.org/wp-content/uploads/2019/11/Fowler-and-Rauschendorfer-2019-working-paper.pdf (VI) Rakotoarisoa, M.A., Iafrate, M. and Paschali, M. (2011). Why Has Africa Become a Net Food Importer? http://www.fao.org/fileadmin/templates/est/PUBLICATIONS/Books/AFRICA_STUDY_BOOK_REVISED_low_res.pdf (VII) Government of Uganda. Uganda Green Growth Development Strategy (UGGDS) 2017/18 – 2030/31. (VIII) United Nations Development Programme (2019). Inequalities in Human Development in the 21st Century. Briefing note for countries on the 2019 Human Development Report. Uganda. (IX) World Bank (2018). Making Farming More Productive and Profitable for Ugandan Farmers.https://www.worldbank.org/en/country/uganda/publication/making-farming-more-productive-and-profitable-for-ugandan-farmers (X) Government of Uganda. Uganda Vision 2040. https://consultations.worldbank.org/sites/default/files/materials/consultation-template/materials/vision20204011.pdf
IOA Sources
  • (1) 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. (2) World Food Programme (2019). Fill the Nutrient Gap Uganda. https://docs.wfp.org/api/documents/WFP-0000108062/download/ (3) Food and Agriculture Organization of the United Nations (2019). The future of livestock in Uganda. Opportunities and challenges in the face of uncertainty. Rome. http://www.fao.org/3/ca5420en/ca5420en.pdf (4) UN Comtrade database. https://comtrade.un.org/data/ (5) 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 (6) 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 (7) 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 (8) 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 (9) 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. https://doi.org/10.1007/978-3-319-18002-1_1. https://link.springer.com/chapter/10.1007/978-3-319-18002-1_1#citeas (10) Ministry of Agriculture, Animal Industry and Fisheries. Agriculture Sector Strategic Plan 2015/16-2019/20. (11) Uganda Revenue Authority (2019). A tax incentives guide for investors in Uganda. https://www.ebiz.go.ug/wp-content/uploads/2020/03/TAX_INCENTIVES_GUIDE_FOR_INVESTORS_IN_UGANDA_October_2019.pdf (12) Ministry of Agriculture, Animal Industry and Fisheries (2005). National Animal Feeds Policy. https://www.agriculture.go.ug/wp-content/uploads/2019/04/Animal-Feeds-Policy-September-2004.pdf] (13) Konrad Adenauer Stiftung (2020). Industrial Policy for Economic Transformation in Uganda. https://www.kas.de/documents/280229/9581001/CDA_KAS+Reality+Check+12_Industrial+Policy+for+Economic+Transformation+in+Uganda.pdf/34cdb812-3de4-87e2-7281-0256682ba53f?t=1594904315863 (14) Ministry of Agriculture, Animal Industry and Fisheries (2013). National Agriculture Policy. https://www.agriculture.go.ug/wp-content/uploads/2019/04/National-Agriculture-Policy-1.pdf (15) Uganda National Bureau of Standards (2017). Dairy cattle feed premix — Specification.http://www.puntofocal.gov.ar/notific_otros_miembros/uga618_t.pdf (16) Government of Uganda. Companies Act 2012. https://ulii.org/ug/legislation/act/2015/1-4 (17) Government of Uganda. Free Zones Act 2014 (No. 5 of 2014). https://www.ilo.org/dyn/natlex/docs/ELECTRONIC/96870/114656/F-592265241/UGA96870.pdf (18) Ministry of Trade, Industry and Cooperatives (2012). National Standards and Quality Policy. http://www.mtic.go.ug/wp-content/uploads/2019/08/National-Standards-and-Quality-Policy.pdf (19) UgandaUKConvention (2020). Putting up an animal feed plant business in Uganda. https://www.ugandanconventionuk.org/putting-up-an-animal-feed-plant-business-in-uganda/ (20) Business Daily (2020). Lobby warns of animal feeds cost rise looms on costly maize germ. https://www.businessdailyafrica.com/bd/markets/commodities/lobby-warns-of-animal-feeds-cost-rise-looms-on-costly-maize-germ-2721818 (21) ReliefWeb (2007). Uganda to be in land crisis due to large population. https://reliefweb.int/report/uganda/uganda-be-land-crisis-due-large-population (22) Farm Africa. Our work in Uganda. https://www.farmafrica.org/us/uganda/uganda (23) Ministry of Agriculture, Animal Industry and Fisheries. About Us. https://www.agriculture.go.ug/the-ministry/ (24) Ministry of Trade, Industry and Cooperatives. Background and Mandate. http://www.mtic.go.ug/background-and-mandate/ (25) EABW News (2019). Government Woos Investors To Invest In Livestock Sector Value Chain. https://www.busiweek.com/government-woos-investors-to-invest-in-livestock-sector-value-chain/ (26) Carter, N., Dewey, C., Grace, D., Lukuyu, B., Humphries, S. and de Lange, C., (2015). Development of balanced diets using local feeds for smallholder East African pigs: implications for livelihoods and food security. https://www.researchgate.net/publication/276294158_Development_of_balanced_diets_using_local_feeds_for_smallholder_East_African_pigs_implications_for_livelihoods_and_food_security (27) Prabhakar, S., Kesharwani, R.K. and Keservani, R.K. (2017). Sustained Energy for Enhanced Human Functions and Activity. http://www.sciencedirect.com/science/article/pii/B9780128054130000065 (28) Monirul, M.I., Azadul, H.M., Akteruzzaman, M., 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: Open Access J. 21(2). https://juniperpublishers.com/artoaj/pdf/ARTOAJ.MS.ID.556159.pdf (29) Alliance for a Green Revolution in Africa (2019). The Agribusiness Deal Room at the 2019 African Green Revolution Forum (AGRF). https://agrf.org/dealroom/wp-content/uploads/2020/07/Agribusiness-Deal_Room-AGRF-booklet_020919.pdf (30) Ziggers, D. (2009). Building a new feed mill: Go or no – go. https://www.allaboutfeed.net/Processing/Automation/2009/6/Building-a-new-feed-mill-Go-or-no--go-AAF011435W/ (31) Haryo, M., Rifin, A. and Sanim, B. (2017). Factors affecting profitability on animal feed companies in Indonesia. https://www.researchgate.net/publication/322794975_Factors_Affecting_Profitability_on_Animal_Feed_Companies_in_Indonesia