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Feed mill business case

Feed mill ROI and CAPEX calculator — contribution, break-even and payback.

Screen a feed plant before you spend engineering money: contribution per tonne, break-even tonnage, an EBITDA proxy and payback across three scenarios — built entirely from figures you enter, then handed to a supplier-neutral RFQ.

Enter every figure below in the same currency — nothing is converted.

Rest is consumed by your own farms.

Sale price, or the price you pay a third-party mill today.

Delivered raw-material cost per tonne of finished feed.

Pelleting ~10–20; extrusion ~60–100 incl. drying.

Labour, packaging, consumables, die and roller wear.

Leave 0 if unknown — you still get the project class.

Indicative project class

Large industrial mill project

FeedMatch does not publish equipment prices. Final pricing requires a technical specification and current supplier quotations.

  • · Installed capacity (t/h) and number of parallel lines
  • · Process route — mash, pelleting, crumbling or extrusion with drying
  • · Raw-material storage volume, intake rate and silo count
  • · Automation depth: manual dosing vs PLC/SCADA with traceability
  • · Utilities — boiler, electrical supply, generator backup, compressed air
  • · Civil works, foundations, tower structure and building height
  • · Freight, duties and country of equipment origin
  • · Installation, commissioning, training and spare-part package

Conversion cost

Energy per tonne
0.00 USD/t
Total conversion
0.00 USD/t
Contribution per tonne
Enter feed value and ingredient cost
Break-even volume
—

Scenarios

ScenarioTonnesContributionEBITDA proxyPayback
Conservative102,000———
Expected120,000———
Optimistic126,000———

Indicative planning figures only. No return, margin or yield is guaranteed.

Size the plant first

Project financing may be available subject to buyer, project, country, equipment origin and lender eligibility. No approval is implied.

Assumptions
  • · Every commercial figure is entered by you. FeedMatch does not publish feed prices, ingredient costs or equipment prices — those come from your market and from current supplier quotations.
  • · Contribution per tonne = feed value − delivered ingredient cost − energy cost − other conversion cost. Ingredient cost is normally 70–85% of the total, so it dominates the result.
  • · Energy cost per tonne = kWh/t × your electricity price. The kWh/t default carries over from the mill calculator and is editable.
  • · The EBITDA proxy deducts annual fixed cost and maintenance (a % of CAPEX) from contribution. It excludes depreciation, interest, tax and currency effects.
  • · Payback = (CAPEX + working capital) ÷ EBITDA proxy, undiscounted. It is a screening figure, not a financial model.
  • · Scenarios flex margin and achieved volume only. Ramp-up, downtime, recipe changeover losses and price volatility are not modelled.
  • · Indicative planning output. No yield, margin or return is guaranteed; final figures require a technical design, current supplier quotations and your own financial review.

Short answer · reviewed August 2026

How do you calculate the payback of a feed mill?

Payback is installed project cost plus working capital divided by annual EBITDA proxy. The EBITDA proxy is contribution per tonne — feed value minus delivered ingredient cost, energy cost and other conversion cost — multiplied by achieved tonnage, less annual fixed cost and maintenance. Ingredients are typically 70–85% of the cost of a tonne of finished feed, so the ingredient price you actually achieve moves payback far more than equipment price does. Screen the case on contribution per tonne first; only then does CAPEX precision matter.

What moves a feed mill business case

What moves a feed mill business case — values reviewed August 2026 by FeedMatch Group
MetricValueUnitBasis
Ingredient cost share70–85% of cost/tDominant driver of contribution
Pelleting energy10–20kWh/tRecipe and die dependent
Extrusion energy60–100kWh/tIncludes drying
Maintenance2–5% of CAPEX/yrWear parts, dies, rollers, service
Design utilisation60–80%Hours actually run vs 24/365

Sources · Master feed mill calculator · Feed mill cost per tonne of capacity · Feed mill capacity sizing

Ranges are indicative buyer-side benchmarks compiled by FeedMatch Group from supplier offers and the sources above; verify against a current quotation before budgeting.

Planning or sizing a feed mill

Cost, equipment scope and capacity in three references — then the ingredient volumes the mill will need every month.

  • Feed mill cost per tonne of capacityInstalled capex bands for 2–20 t/h and USD 16–45/t conversion cost.
  • Feed mill equipment list by capacityEvery machine in the line and the ten things a quote must state.
  • What size feed mill do I need?Animal numbers to tonnes per hour, with worked examples.
  • Feed mill growth plannerAlready producing? Map the capacity step, bottlenecks, storage and utilities.
  • Feed mill expansion & modernisationUpgrade vs second line, automation retrofit, utilities and CAPEX drivers.
  • Master feed mill calculatorCapacity, equipment package, silos and power — carried straight into an RFQ.
  • Feed market opportunity scorecardWhich markets justify a plant project, and the vertical to lead with.
  • Farm feeding infrastructureFeeding a growing farm: storage, distribution, automation and monitoring at scale.
  • Farm feeding infrastructure plannerPonds, houses or barns growing? Turn target scale into tonnes per day and a scope.
  • Ingredient supply for the millHand the tonnage straight to a supplier-neutral RFQ.

Feed mill ROI questions

How do you calculate the payback of a feed mill?
Payback is the installed project cost plus working capital divided by the annual EBITDA proxy, where the EBITDA proxy is contribution (feed value minus ingredient, energy and other conversion cost, multiplied by tonnes) minus annual fixed cost and maintenance. Because ingredients are typically 70–85% of the cost of a tonne of feed, the ingredient price you actually achieve moves payback far more than the equipment price does.
What is a realistic conversion cost per tonne of feed?
Conversion cost — energy, labour, consumables, packaging and die wear — is the part of the cost you control once the mill is built. Energy alone is roughly 10–20 kWh per tonne for pelleting and 60–100 kWh per tonne for extrusion including drying, so the electricity price in your country changes the number materially. This calculator asks you to enter both rather than assuming a benchmark.
Should a poultry integrator build its own feed mill?
The case is usually built on the margin currently paid to a third-party mill, not on selling feed externally. Enter the price you pay today as the feed value and your delivered ingredient cost, and the contribution per tonne shows what in-house production would retain. Then weigh that against the CAPEX, working capital, technical staffing and the risk of running below design utilisation.
What drives the CAPEX of a feed mill project?
Installed capacity and line count, process route (mash, pelleting, crumbling or extrusion with drying), storage volume and intake rate, automation depth, utilities such as boiler and generator backup, civil works and tower height, freight and duties by equipment origin, and installation, commissioning and spares. FeedMatch returns an indicative project class from these drivers; final pricing requires a technical specification and current supplier quotations.
Does FeedMatch publish feed mill prices?
No. FeedMatch is a supplier-neutral sourcing platform, not a manufacturer, and does not publish equipment prices or feed and ingredient prices. This calculator uses only figures you enter, and the RFQ is what produces comparable current quotations for the specification you defined.
Is project financing available for a feed mill?
Project financing may be available subject to buyer, project, country, equipment origin and lender eligibility. FeedMatch can route qualified projects toward financing partners alongside the supplier comparison, but no approval is implied or promised at this stage.
FeedMatch Group logo — wheat sheaf and interlocking chevrons emblem representing the independent animal feed procurement and ingredient intelligence platform
FeedMatchGroup

Global animal feed & ingredient procurement. Supplier-neutral sourcing of feed and raw materials for farms, integrators, feed mills and importers worldwide.

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FeedMatch Group is the specialized animal feed and feed-ingredient procurement platform of Global B2B Group. FeedMatch Group is not a feed manufacturer, ingredient trader, commodity trader, distributor, broker, feed mill, nutritionist, veterinarian, EPC contractor, lender, bank, credit provider, financial advisor, investment advisor, insurer, underwriter or regulated financial services provider. Any financing, leasing, trade finance, working capital or project-finance option mentioned on this website is provided solely by independent third-party financing providers, subject to their own eligibility checks, KYC, due diligence, compliance review, approval, terms and documentation. FeedMatch Group does not provide financial advice, does not arrange regulated financial products, does not guarantee financing approval, and is not responsible for any financing decision, offer, rejection, delay, cost, term or outcome. Quotes, feed, ingredients, additives, equipment, logistics, services, warranties, feed safety, nutritional outcomes, FCR and animal performance remain solely the responsibility of independent third-party suppliers, manufacturers, logistics providers or qualified professionals. See Terms and Disclaimer.

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© 2026 FeedMatchGroup.com · All rights reserved.FeedMatch Group is the specialized animal feed and feed-ingredient procurement platform of Global B2B Group. FeedMatch is not a feed manufacturer, ingredient trader, commodity trader, distributor, broker, feed mill, premix or additive producer, EPC contractor, lender or regulated financial services provider. Quotes, feed, ingredients, equipment, logistics, financing and services are provided solely by independent third parties and remain subject to their terms, approvals and responsibilities. Operated from the Republic of Cyprus.Built for commercial feed procurement from USD $250K+ — feed mills, integrators, importers, EPCs, governments and industrial farms. Not intended for hobby, backyard, pet-owner or small retail purchasing. How FeedMatch works.FeedMatch Group is a specialized platform of Global B2B Group — a global B2B procurement, project development and financing ecosystem. Sister platforms: HatchMatch Group, ColdMatch Group, FishMatch Group, SeedMatch Group.The specialized feed platform within the Global B2B Group ecosystem.
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Internal cluster map

What does it cost to build or upgrade a mill at this capacity, and who delivers it?

Feed mills, plants & equipment

  • feed mill projectsWhat does it cost to build or upgrade a mill at this capacity, and who delivers it?

Related in this cluster

  • turnkey feed mill delivery
  • mixers, pellet mills and extruders
  • feed mill cost benchmarks
  • size the line to your tonnage

Connected clusters

  • finished feed and premix sourcing
  • large-scale feed procurement

Next step

  • start a structured RFQSpecification, volume, destination and timeline

Consultant answers on this topic

  • FAQ: formulation and cost-optimisation support