Digital Re-print - July | August 2014

Animal Feed Milling in India - Pondering on Strategic Check Points

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The animal feed milling industry in India is highly diverse and ranges from simple feed mixing to hi-tech feed milling.

While the country has progressed quite a bit in terms of improving milling practices, it has a long way to go. Despite progress, wide variations on degrees of modernisation continue to exist.

The industry is becoming highly aware that animal performances come in due to two main reasons – genetics and nutrition.

Feed milling is thus a major factor that is directly responsible for how animals are produced and how the maximum genetic potential is extracted. Genetic improvements are therefore placing constant pressure on feed manufacturers to produce quality feeds that match increased requirements of breeds without creating additional stress or physiological disturbances.

Significant progress is seen in the feed formulation technology but feed milling technology is still yet to see some focused improve-ments.

Five milled feedsFeed is mainly milled for broilers, layers, shrimp, fish and dairy. Feeds for broilers and shrimp are considered to be rather mature

segments in the feed milling industry as they are technologically advanced in terms of milling and formulations.

Fish feeds are relatively of recent origin (since 2006). However a majority of Indian fish farming is yet to take on to

using formulated feed as against traditional mash type of feed. Very little cattle feed in India is pelleted and most of it is in mash form - called TMR (Total Mixed Ration).

Four broad value chain pathways comprise of animal husbandry. They are raw material input system for feeds, feed milling technology, animal production by itself and marketing the produce. Of these the most developed segment in India is the animal production sector which closely matches with International standards especially in the broiler, layer and shrimp segments. Feed milling technology in rela-tive terms need to be improved more. Feed raw material and feed milling are two steps that are found at the bottom most level in the value chain for food. The amount of care taken at these two levels will determine the quality of animal produce that ultimately is used as human food.

India has produced an estimated 30.99 MMT of feed from organ-ized feed milling processes in 2013. Commercial broilers accounted for 10 MMT, commercial layer for 11 MMT, poultry breeders used 1.74 MMT, aquaculture comprising both fish and shrimp milled 1.25 MMT. Compounded dairy feeds accounted for 7MMT (various Industry sources, CLFMA, USSEC). It is likely that India will produce 40 MMT by 2020 based on historical growth patterns examined for the past five years. As a sample assessment carried out by USSEC in the last 6 months, it was recorded that 24 feed mills came into oper-ation carrying along an installed capacity of 1.27 MMT. Of these, 15 mills were for producing aqua feeds and rest for poultry. Interestingly an analysis carried out by USSEC in the last five years accounted for 173 new feed mills contributing to a capacity build up of 7.88 MMT. Thus the feed industry has been growing rapidly on capacity terms but it is felt that the industry needs to focus of milling efficiencies too, in order to be able to derive the most from investments.

Feed milling is a vast subject as we all know. However a few

selected aspects have been picked up for the purpose of this article. These seem to be very critical points that the Indian feed milling industry should take note of. Broadly the critical points can be clas-sified into internal and external processes effecting efficiencies of Indian mills.

Foremost on the internal factor is ‘People on controls’. The mills need to have trained and knowledgeable heads/leaders on five major feed milling sectors, namely, on the formulation front, engineering, QC and inventory control, raw material procurement and the actual production. All these processes are interlinked and call for strong internal management coordination to be able to make the best of the mill. For example the head of production will be responsible on a daily basis for production output and quality of feed coming out from a plant. For this he has to depend on the engineering division that will ensure efficient functioning of each moving part and the processes that are laid down for preventive as well as corrective maintenance. Likewise housekeeping and training of manpower on the shop floor is also interlinked. He has to work in tandem with the QC/lab and the procurement and material logistics divisions to ensure a smooth flow of inputs at the prescribed quality standards. If people’s cross-functional abilities are well in place, a major aspect in the feed milling sector is addressed.

Most feed mills do not have direct control on raw material. They come from different geographies and differ in quality and quantity because, not always is a feed mill located at vantage points where raw material is produced. Agriculture by-products come from varied processes and handling techniques. Procurement of raw material is therefore a challenge and is very critical given these vagaries. Indian feed millers have to gradually move away from purchasing material based on moral guarantee. Verbal agreements and phone agreements are widely used and contracts in most cases are not honoured. A rapid change in raw material procurement style using the guagrentee methods and depending on analytical methods is urgently required. Majority of the feed mills do not have labs while the progressive ones rely on rapid analysis equipment and processes which help take quick decisions and saves money. It is very critical for every feed mill to have an analytical lab that will provide feedback on many qualitative aspects and will help carry out economic assessments.

Seven internal processes are critical to Indian feed milling and these usually falter. Improving these aspects will enhance throughput of the mill and reduce wastage or save costs. The key areas are grinding, mixing, control of fines, moisture, pest control, storage techniques and the actual pelleting process.

Grinding is a big cost in feed mills. Selection of equipment, a strong maintenance program and optimizing particle sizes saves costs on this section. Particle size is linked to animal performance and many reports indicate that it is correlated to digestion especially in the upper tracts of younger animals. Mixing is the next important aspect that has a bearing on the nutrient uniformity. Mixer testing procedures are often not available and not practiced. Developing a correlation between mix time and diet uniformity would be helpful. Equipment functions as we see are directly or indirectly connected to animal performance and in this case diet uniformity is critical, especially in younger animals.

Most feed millers in India are convinced that pelleting is the way forward in feed manufacture and a majority have taken to this method.

Animal Feed Milling in India Pondering on Strategic Check Pointsby Dr P.E. Vijay Anand, Director – India Feed/ Meal Program, US Soybean Export Council, New Delhi, India

F

It is a known fact that pelleting improves digestibility, improves palat-ability, thermally modifies starch and protein structures, destroys path-ogens, reduces ingredient segregation and minimizes selective feeding. Quality checks become easy when feed is pelleted because 60% of the pellet quality can be determined before it reaches the pellet mill. Pellet quality depends largely on formulation (40%) and grinding (20%). It is common thinking that formulation is an aspect that is often linked with nutritional requirements of the animal and performance but least do mill managers think that it could also contribute to pellet quality. By thinking creatively beyond the present functions of a formulation, least cost or best cost formulations can be made to predict pellet quality. Charts are available on the pelleting ability of commonly available raw material and this could possibly be integrated into a formulation pro-cess. It is considered that about 20% of pellet quality depends on con-ditioning, 15% on die selection and 5% on cooling or drying processes.

Production of fines is an economic loss for a feed mill and depends mainly on pellet quality and equipment functioning. Fines hinder pellet cooling, lead to particle segregation, pose fat coating hindrances and lead to selective feeding if given to animals. Higher the amount of fines, more the recycling efforts and cost involved. The throughput of the mill is reduced to the extent fines are recycled – say on a year’s time scale. Finally moisture control is one aspect Indian feed mills need to pay attention to. Moisture check points are present in the system beginning from raw material purchase, all the way to drying, cooling and storage of finished feed. If raw material with high moisture is procured it will result in an economic loss due to its shrinkage in the plant. If the finished product has higher moisture content especially in a tropical country like India, this could result in economic losses owing to marketing problems that may arise. Within the plant appropriate storage methods are of prime importance for Indian feed mills. Improper staking on floor or against walls prompts moisture to migrate to one region in a feed bag. Moisture thus concentrates and increases the overall levels of moisture beyond recommend limits at the particular location inside the bag and encourage mold growth.

Four factors outside industry’s controlFour factors have been identified as external entities on

which the feedmills may not have direct control. In order to combat increasing external costs, the mills have

to be even more efficient on what they can easily control and/or increase feed manufacturing efficiencies.

Fuel is used for transport and for in-plant operations. Fuel prices have been continuously on the rise in India. There is a double impact on the feed mill through trucks which carry in bulk of the raw material into the plant and finished products out of the plant.

Most large plants work on a backup power generation for which diesel is used. Between 2009-13 diesel cost has increased by 85 percent (from INR 35 to INR 64).

The other external cost is electricity and this is directly linked with plant machinery operations. For industrial purposes, the power tariff increased from INR 4.16/KWh to INR 4.97/KWh between 2007-08 and 2011-12 which is about 20 percent increase.

The third cost affecting feed milling operations will be raw material prices.

About 80 percent of operational finances in feed milling operations go for raw material. In volume terms this forms a majority. So when cost and volume together influence this input system, it is of utmost importance to mange this aspect efficiently.

Any increasing cost on raw material calls for a focused atten-tions and planning.

Maize in 2010 increased from INR 7683/MT to INR 13,554/MT while soymeal in 2010 increased from INR 17503/MT to INR 30,891 in 2013 (76 percent increase on both feed com-modities).

The fourth factor that most feedmills encounter is cash flow. Unfortunately, they are caught between operational invest-

ments on incoming raw material and cash flow blockage on slow revenue returns on finished feed on the market front. This

is an aspect that is largely built into the system by practice and the mills have to evolve an efficient way to manage cash flows.

The futureIndia’s feed industry will continue to grow because there is an

increasing demand for consuming animal products. This is caused due to rising incomes and changing life styles.

At the same time cost of production of animal products or feed keep increasing year after year.

Feed milling technology and efficiencies have to deeply reflect into their practices, save costs and aggressively look at means to off-set rising costs from external uncontrollable factors. A lot of savings can be obtained by utilising mills better, preventing wastage and optimis-ing each production parameter within the feed mills.

About the author:Dr P. Emmanuel Vijay Anand is the Director for the Indian

Animal Feed, Aquaculture and Soy Meal Program of the US Soybean Export Council. The focus is mainly on soybean prod-uct promotion in animal and aquaculture feeds. He also helps improve feed technologies for poultry, dairy and aquaculture, manages industry network and relationships, guides and devel-ops new businesses, provides training for the industry.

Dr Vijay has worked in farm management, feedmills, animal health care programs and feed commodity processes and marketing. Dr Vijay has been associated with the animal feed industry since 1993 and is known for his innovation, visionary abilities and working in challenging situations and cultures, both nationally and internationally.

He completed is under-graduation and post-graduation in fisheries and aquaculture from the College of Fisheries, Mangalore (University of Agricultural Sciences, Hebbal, Bangalore) and his doctoral research degree (PhD) from the Cochin University of Science and Technology.

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It is a known fact that pelleting improves digestibility, improves palat-ability, thermally modifies starch and protein structures, destroys path-ogens, reduces ingredient segregation and minimizes selective feeding. Quality checks become easy when feed is pelleted because 60% of the pellet quality can be determined before it reaches the pellet mill. Pellet quality depends largely on formulation (40%) and grinding (20%). It is common thinking that formulation is an aspect that is often linked with nutritional requirements of the animal and performance but least do mill managers think that it could also contribute to pellet quality. By thinking creatively beyond the present functions of a formulation, least cost or best cost formulations can be made to predict pellet quality. Charts are available on the pelleting ability of commonly available raw material and this could possibly be integrated into a formulation pro-cess. It is considered that about 20% of pellet quality depends on con-ditioning, 15% on die selection and 5% on cooling or drying processes.

Production of fines is an economic loss for a feed mill and depends mainly on pellet quality and equipment functioning. Fines hinder pellet cooling, lead to particle segregation, pose fat coating hindrances and lead to selective feeding if given to animals. Higher the amount of fines, more the recycling efforts and cost involved. The throughput of the mill is reduced to the extent fines are recycled – say on a year’s time scale. Finally moisture control is one aspect Indian feed mills need to pay attention to. Moisture check points are present in the system beginning from raw material purchase, all the way to drying, cooling and storage of finished feed. If raw material with high moisture is procured it will result in an economic loss due to its shrinkage in the plant. If the finished product has higher moisture content especially in a tropical country like India, this could result in economic losses owing to marketing problems that may arise. Within the plant appropriate storage methods are of prime importance for Indian feed mills. Improper staking on floor or against walls prompts moisture to migrate to one region in a feed bag. Moisture thus concentrates and increases the overall levels of moisture beyond recommend limits at the particular location inside the bag and encourage mold growth.

Four factors outside industry’s controlFour factors have been identified as external entities on

which the feedmills may not have direct control. In order to combat increasing external costs, the mills have

to be even more efficient on what they can easily control and/or increase feed manufacturing efficiencies.

Fuel is used for transport and for in-plant operations. Fuel prices have been continuously on the rise in India. There is a double impact on the feed mill through trucks which carry in bulk of the raw material into the plant and finished products out of the plant.

Most large plants work on a backup power generation for which diesel is used. Between 2009-13 diesel cost has increased by 85 percent (from INR 35 to INR 64).

The other external cost is electricity and this is directly linked with plant machinery operations. For industrial purposes, the power tariff increased from INR 4.16/KWh to INR 4.97/KWh between 2007-08 and 2011-12 which is about 20 percent increase.

The third cost affecting feed milling operations will be raw material prices.

About 80 percent of operational finances in feed milling operations go for raw material. In volume terms this forms a majority. So when cost and volume together influence this input system, it is of utmost importance to mange this aspect efficiently.

Any increasing cost on raw material calls for a focused atten-tions and planning.

Maize in 2010 increased from INR 7683/MT to INR 13,554/MT while soymeal in 2010 increased from INR 17503/MT to INR 30,891 in 2013 (76 percent increase on both feed com-modities).

The fourth factor that most feedmills encounter is cash flow. Unfortunately, they are caught between operational invest-

ments on incoming raw material and cash flow blockage on slow revenue returns on finished feed on the market front. This

is an aspect that is largely built into the system by practice and the mills have to evolve an efficient way to manage cash flows.

The futureIndia’s feed industry will continue to grow because there is an

increasing demand for consuming animal products. This is caused due to rising incomes and changing life styles.

At the same time cost of production of animal products or feed keep increasing year after year.

Feed milling technology and efficiencies have to deeply reflect into their practices, save costs and aggressively look at means to off-set rising costs from external uncontrollable factors. A lot of savings can be obtained by utilising mills better, preventing wastage and optimis-ing each production parameter within the feed mills.

About the author:Dr P. Emmanuel Vijay Anand is the Director for the Indian

Animal Feed, Aquaculture and Soy Meal Program of the US Soybean Export Council. The focus is mainly on soybean prod-uct promotion in animal and aquaculture feeds. He also helps improve feed technologies for poultry, dairy and aquaculture, manages industry network and relationships, guides and devel-ops new businesses, provides training for the industry.

Dr Vijay has worked in farm management, feedmills, animal health care programs and feed commodity processes and marketing. Dr Vijay has been associated with the animal feed industry since 1993 and is known for his innovation, visionary abilities and working in challenging situations and cultures, both nationally and internationally.

He completed is under-graduation and post-graduation in fisheries and aquaculture from the College of Fisheries, Mangalore (University of Agricultural Sciences, Hebbal, Bangalore) and his doctoral research degree (PhD) from the Cochin University of Science and Technology.

July - August 2014 | 15GRAIN&FEED MILLING TECHNOLOGY

M llingInternational

Directory

twenty two

2013/14

internationalmilling.com

The premier resource for the global milling industry

ONLINE | PRINT | MOBILE

See our new extended International Organisations section

Get the IMD on your smart phone

F

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