Feed Mill Cooperative in Australia Produces 1,000 Tonnes of Pig Feed per Week

Five pig farmers joined forces to gain full control over feed quality and reduce production costs

Pentagon Feeds is an Australian farmer-owned feed mill established by five pig producers who wanted to take control of one of the largest costs in pig production: feed.

Back in 2010, fluctuating feed prices and high transport costs made it increasingly difficult to maintain predictable production costs. Instead of relying on external feed suppliers, the farmers decided to invest in their own SKIOLD feed mill, creating a cooperative feed production facility that would supply both their own farms and other livestock producers.

What began as a project with a target production of 600 tonnes of feed per week has grown into a successful business producing around 1,000 tonnes of feed per week, generating an annual turnover of approximately AUD 12 million.

A cooperative approach to feed production

The idea behind Pentagon Feeds was simple: by joining forces, several farmers could invest in a modern feed mill that would have been difficult to justify individually.

The cooperative model gives the members full control over feed production while sharing the investment and operating costs.

Producing feed in-house has reduced dependence on external suppliers and provided greater flexibility to adjust feed formulations according to changing production requirements.

Full control over feed quality

For the owners of Pentagon Feeds, producing their own feed is about much more than reducing costs.

Complete control over raw materials, feed formulations and production quality helps ensure consistent feed quality and supports better animal performance.

Being able to produce feed according to their own specifications also provides greater traceability and confidence in the quality of every batch produced.

“Having 100% control over our own feed is extremely important for us as pig producers. Controlling feed quality has improved our production results and, together with lower feed costs, made our farms much more profitable.”
— Aeger Kingma, Executive Manager, Pentagon Feeds

Stable feed costs improve profitability

One of the biggest advantages of producing feed in-house has been the ability to maintain stable feed costs despite changing market conditions.

When the project was launched, Pentagon Feeds developed a long-term budget for feed production costs.

More than seven years later, the business was still operating below its original feed cost budget, demonstrating the long-term financial value of the investment.

For pig producers, greater predictability in feed costs provides a stronger foundation for profitable production.

“Seven years after we prepared our feed cost budget, we are still below budget. That is extremely satisfying, and we are very pleased with our SKIOLD feed mill.”
— Aeger Kingma, Executive Manager, Pentagon Feeds

From idea to production in just 17 months

From the moment the project was approved, the development progressed quickly.

Within 17 months, the first batches of feed were being produced.

Today, the feed mill not only supplies its founding members but also manufactures feed for additional customers, making Pentagon Feeds a successful commercial feed producer alongside its role as a farmer cooperative.

Complete SKIOLD feed mill solution

Pentagon Feeds invested in a complete SKIOLD feed mill with a production capacity of approximately 10 tonnes per hour.

The installation includes:

• Raw material silos
• SKIOLD SK10 Disc Mills
• Accurate dosing and weighing
• Feed mixing
• Pelleting
• FlexMix Pro process control system

Configured as a dedicated single-species feed mill, the installation produces approximately 10.5 tonnes of pig feed per hour while ensuring efficient and consistent feed production.

A successful model for farmer-owned feed production

The Pentagon Feeds project demonstrates how cooperation between livestock producers can create significant long-term value.

By investing together in a modern feed mill, the owners have achieved greater control over feed production, more stable feed costs and improved profitability while creating a scalable business that continues to grow.

The cooperative model has transformed feed production from a major production cost into a strategic advantage for the participating pig producers.

Results

The SKIOLD feed mill has enabled Pentagon Feeds to achieve:

• Production increased from 600 to 1,000 tonnes of feed per week
• Full control over feed quality and raw materials
• More stable and predictable feed costs
• Improved profitability for the participating pig farms
• Reduced dependence on external feed suppliers
• Annual turnover of approximately AUD 12 million
• Feed production for both member farms and external customers
• Feed mill operational within 17 months from project approval
• A scalable cooperative feed production business

Facts

• Location: Australia
• Company: Pentagon Feeds
• Application: Pig feed production
• Ownership: Farmer-owned cooperative
• Founding members: Five pig producers
• Feed mill capacity: 10 t/h (approximately 10.5 t/h)
• Weekly feed production: Approx. 1,000 tonnes
• Initial target: 600 tonnes/week
• Annual turnover: Approx. AUD 12 million
• Control system: FlexMix Pro
• Feed mill: SKIOLD SK10 Disc Mills

Contact us for more information