PALM KERNEL CAKE: INCREASED FEED

OPPORTUNITIES ASSISTED BY ITS INHERENT

PROPERTIES

BY

Dr Wan Zahari Mohamed

Principal Fellow

Faculty of Veterinary

Medicine

University Kelantan

Lim Teck Chaii/Fatimah

Zaharah Md Nan

Malaysian Palm Oil Council

2nd Floor, Wisma Sawit

Lot 6, SS6, Jalan

Perbandaran

47301 Kelana Jaya

Selangor Darul Ehsan

Malaysia

Outline Of Presentation

• PKC’s attributes - Commercial &

Nutritive

• Samples of PKC feed formulation used

around the world and by different animals

• Prospect for higher PKC uptake

Global PKC Major Supplier

54%

42%

4% PKC Exports - Breakdown By Country

Indonesia Malaysia Others

• Malaysia is one of the major global PKC exporter.

• Malaysia’s PKC is produced along the lines of balancing the 3Ps.

Source Of PKC

Mesocarp

Shell

Kernel

Basic Facts •Kernel per fruit: 5-8%

•Mesocarp per Fruit: 85-92%

PKC is obtained from the kernel after the kernel oil is extracted.

Picture of PKC

PKC Price Trend

Source : Oilworld

•PKC price trending

higher.

• The major supporting

factors for price rise :

a) Expanding

husbandary sector

due to growing

population and

affluence of the world

b) research on PKC

application

c) extensive promotion

of its inherent

properties

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PKC - Commercial attributes 1. Most attractively priced among major oilmeals in the market

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\MT

PKC Soymeal Sunflower meal Rapeseed meal

2. As PKC is obtained from a perennial crop, PKC appears to be

environmentally greener compared to other major oilmeals which

are derived from seasonal crops.

3. As a perennial crop, users of PKC are guaranteed availability of

supply throughout the year.

PKC – Nutrients obtained Per USD CP per USD (Kg/USD)

ME per USD ( MJ/USD)

TDN per USD (Kg/USD)

PKC 0.76 0.50 3.3

Soymeal 0.84 0.26 1.5

Rapeseed meal

0.92-0.97 0.25-0.30 1.8

Sunflower meal

0.89 0.25 1.9

Source : Dr. Wan Zahari Mohamed & cif Rotterdam price end December, 2012

Price : PKC-USD212/MT, Soymeal – USD565/MT, Rapeseed meal – USD390/MT

CP : Crude protein, ME – Metabolizable energy, TDN – Total digestable nutrient

1. For per USD spend on PKC, the energy value obtained is between 40%-

50% higher compared to soybean, rapeseed and sunflower meal.

2. PKC has between 1.7 to 2.2 times more total digestible nutrient (TDN)

per USD compared to soymeal, rapeseed and sunflower meal.

3 With 1.7 to 2.2 times higher nutrient absorption rate per USD, technically,

PKC should rank higher in terms of availability of crude protein to livestock

although PKC’s crude protein availability is between 15%-22% lower

compared to soymeal, rapeseed and sunflower meal per USD.

Comparative composition of ingredient in different meals CP

(%)

ME

(MJ/kg)

CF

(%)

TDN

(%)

PKC 16.0 10.5 17 70

Soymeal 48.0 14.9 6.2 84

Rapeseed

meal

36-38 10-12 10-12 72

Sunflower

meal

30.0 8.3 25.5 65

Source : Dr. Wan Zahari Mohamed

Note : CP – Crude Protein, ME- Metabolizable energy, CF-Crude protein, TDN - Total Digestable Energy

PK has high crude fibre content. The high fibre content, among others,

is beneficial to ruminants as it promotes chewing and salivation which

helps to stabilize rumen’s PH. In poultry, among the main benefit is that

it protects the mucous wall of the gastrointestinal tract. However, the

proportion of PKC in feed blends suitable for different types of animal

differs.

PKC’s nutritive profile

• High in protein at 16% and carbohydrates as other major components

namely galacto-mannans, arabinoxylans, celluloytic and 4-O methyl

glucuronoxylan , celluloytic are complex sugar-based compounds.

• As the product is rich in protein and glucose-based compounds, PKC

is generally classified as an energy and protein-based feed

ingredients.

Mineral content of PKC Proportion

Calcium 0.21-0.34%

Phosphorus 0.49-0.71%

Magnesium 0.16-0.33%

Potassium 0.76 – 0.93%

Sulphur 0.19-0.23%

Copper 21.0 – 28.9 ppm

Zinc 40.5 – 50.0 ppm

Selenuim 0.23 – 0.30 ppm

Ca : P 0.36 : 1

Source : Dr. Wan Zahari Mohamed

• Low in Ca:P ratio as ideal ratio for

livestock is 2:1.

• More calcium (limestone) is normally

added when PKC is use as main

ingredients for feeds in livestock.

• As sheep is susceptible to copper

toxicity, in preparation of feed

ingredients for sheep, care has to be

taken to avoid copper toxicity.

PKC’s palm kernel oil content

• Fresh PKC exported has on

average 10% palm kernel

oil.

• Occasionally, PKC is

extracted for kernel oil.

• PKC amino acid content has

a high by pass rate of 65-

75%, implying high protein

absorption

• Lysine 2.68 *

• Methionine 1.75 *

• Histidine 1.91

• Leucine 6.07

• Isoleucine 3.22

• Phenylalanine 3.96

• Threonine 2.75

• Valine 5.05Amo

Amino Acid Profile g/16g N

Source : Dr. Wan Zahari Mohamed

Additional Nutritive of PKC

High in beta carotene

4.3 – 11.8 mg/kg

High in vitamin E

0.35 mg/kg

Natural antioxidant

Source : Dr. Wan Zahari Mohamed

Other attributes of PKC

• Free from aflatoxin, toxic metal, heavy

metals, pesticides and dioxins therefore it is

safe for animal feeding.

• High dry matter content of 93% discourages

growth of micro-organism and mould and

this will optimize animal feeds intake and

improve overall growth for animals.

Source : Dr. Wan Zahari Mohamed

Some examples of global feed

formulation using PKC

PKC Feed Ingredients For Beef cattle

%

PKC 80

Grass/hay 17.5

Limestone 1.5

*Premix 1

Vitamins and minerals

Source : American Palm Oil Council (APOC), 2006

• PKC can be fed up to 90%

of total ration without any

adverse effect.

• Daily LWG of Kedah

Kelantan steers fed with

50% PKC and 50% POME

( Palm Oil Mill Effluent)

was about 0.6 kg/day.

• Brahman crossbred steers

fed with 70% PKC for a

period of 120 days gained

0.8 kg per day

Source : American Palm Oil Council (APOC), 2006

PKC Feed Ingredients for Australian Holstein Dairy Cows

Control Diet 1 Diet 2 Diet 3

PKC (%) 0 10 15 18

Milk Yield (kg) 13.8 15.3 16.5 19.5

% increase in milk

yield 10.9 19.6 41.3

Source : Mengniu Dairy Group, China study

• The feeding trial was done by the Mengniu Dairy Group,

China on 24 Australia-Holstein dairy cows.

• The results shows that at 18% inclusion level in their PKC

formulation, milk yield is 41.3% higher than their control group

PKC Feed Ingredients For Swine

Control Diet 1 Diet 2

PKC (%) 5.0 10.0

Corn (%) 64.45 58.7 52.8

Soymeal (%) 14.5 13.8 13.18

LWG*

(g)/day

679 709 610

*LWG- Live Weight gain

Source : Xiangda Company of Tangrenshen Group, China

• The above feeding trials on 144 pigs conducted by Xiangda Company of

Tangrenshen Group, China shows that PKC use in swine diet resulted in

increase growth performance at 5% inclusion level.

PKC Feed Ingredients For Sheep %

PKC 50

Grass/Hay 30

Soymeal 9.0

Rice Bran 10.0

Pre-mix* 1.0

• Vitamin & Minerals

Source : American Palm Oil Council (APOC )

2006

• Sheep are very

sensitive to copper and

levels as low as 25 ppm

in the diet can be toxic

to them (Schoenian,

2009).

• Higher level of feeding

can be practiced but

precaution is needed to

avoid copper toxicity.

Source : American Palm Oil Council (APOC )

PKC Feed Ingredients For Grass Carp Control Diet 1 Diet 2 Diet 3

PKC (%) 0 5 10 20

Wheat 10 10 9 6

SBM (%) 30 29 28 26

LWG (g)/ day 2.72 2.80 2.83 2.66

Total Feed

Cost

(Yuan/kg)

2,262 2,236 2,194 2,130

Source : Wuxi Freshwater Fish Research Institute , China’s study

Above results shows that PKC inclusion at 5-10%

reduced the feeding cost without affecting growth

performance.

PKC Feed Ingredients For Broilers PKC level (%) Daily feed intake

(g)

Daily weight gain

(g)

0 54.7 26.5

10 58.3 28.7

15 58.7 28.4

20 59.5 27.8

25 60.8 27.7

30 60.2 27.4

Source: Yeong (1985)

Effects of PKC on broiler growth done by a local

scientist establishes that daily weight gain is highest

at 10% PKC inclusion level.

PKC Feed Ingredients For Layer Chicken Control Diet 1 Diet 2 Diet 3 Diet 4

PKC (%) 0 6 10 6 10

Corn (%) 61.84 55.59 51.43 55.59 51.43

SBM (%) 27.40 26.27 25.53 26.27 25.53

Heimei

Enzyme

(500 g/t)

0 0 0 0.05 0.05

Total Feed

Cost

(Yuan/kg)

2,084 2,071 2,062 2,106 2,097

Feed:Egg

ratio

2.16 1.80 2.05 2.25 1.88

Source : Eco-agricultural Chicken Feedlots in Tangrenshen Group, China s

Feeding trial done by a group of animal nutritionist from Eco-

agricultural Chicken Feedlots in Tangrenshen Group, China

shows that PKC inclusion at 6-10% improved feed to egg ratio.

Further improvements are observed when Heimei enzyme was

added at 10% PKC inclusion rate.

PKC Market Potential

Global Oilmeal consumption

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Global Oil Meals Consumption

• Annual growth of global oilmeals disappearance from 1990 – 2011 is 3.5%.

• Major oilmeals used are soymeal, rapeseed meal, corngluten feed and PKC

which accounts for 61%, 12.0%, 5.2% and 2.3% of the global consumption

respectively in 2011.

• Major consuming countries of oilmeals are EU-27, China and USA. These 3

countries accounted for 22%, 21% and 15% of global oil meal consumption in

2011.

Potential for PKC in EU-27 • EU-27 growth in total oilmeals

consumption is slow averaging

1.2% from 1994 – 2011. From

2008 onwards, there were

virtually no growth.

• Market do not have high growth

potential for oilmeal

consumptiondue to the region’s

stable population and lifestyle,

• However, there is potential for

higher PKC usage as imports to

EU-27 in 2011 only registered

2.2 Mn MT which is only 1.5% of

the region’s compound feed

production of 150.1 Mn MT. 0

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PKC import Compound feed production

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EU-27 PKC import Vis-a-vis Compound feed Prooduction

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EU-27 Oilmeals consumption

Potential for PKC in USA

• Similar to EU-27 market, USA

growth in total oilmeals

consumption is slow averaging

1.7% from 1994 – 2011. Slow

growth is seen post 2006.

• With stable population and

lifestyle, market do not have

high growth potential for total

oilmeal consumption.

• However, there is potential for

higher PKC usage as imports

is negligible while its

compound feed formulation for

2011 is 121.2 million MT.

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USA oilmeal consumption ('000 MT)

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PKC usage vis-a-vis Compound feed production

PKC Feed Potential For China • China’s oil meals consumption grew

at an average annual rate of 8.6%

between 1994 – 2011 to register 65.2

million MT in 2011.

• Supporting China’s oilmeals

consumption are growing country’s

prosperity due to continuous GDP

growth and changing lifestyle brought

about by rapid urbanization rate

averaging 2.3% a year on a population

base of 1.37 billion people.

• Prospect for higher PKC usage is

bright as the country consumes only

245,000 MT in 2011 which is only

0.2% of the country’s compound feed

production of 120 million MT

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China's Oil Meal Consumption ('000 MT)

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PKC usage vis-a-vis Compound feed production

Other Potential Markets for PKC

• New Zealand has registered phenomenon growth in

PKC usage. New Zealand’s preference for PKC has

increased following severe droughts in 2005 and 2007,

which led farmers to believe that the grassland is not a

reliable source of animal feed. The country’s import of

PKC from Malaysia rose from 32,506 MT in 2003 to

702,880 MT in 2012.

• The subcontinent, mainly India and Pakistan, could also

be potential areas for PKC feed usage in view of the

large cattle industries of the two countries. Both India

and Pakistan are producing large amounts of meat and

milk products from their livestock industry.

Other Potential Markets for PKC

• India has also topped the list of beef and veal exporters

in 2012 and due to strong export demands, India’s beef

production is expected to increase to 14% in 2013.

Pakistan’s production of beef is also significant, but it is

mainly for domestic consumption.

• At present, the consumption of PKC by India is not very

significant as the country is also producing large amount

of soymeal. On the other hand, Pakistan’s import of PKC

is on the rising trend, with imports shooting up from just

19,871 MT to 72,510 MT in 2011.

Other Potential Markets for PKC

• South Korea imports of PKC in the last 3 years are also

registered significant volume of more than 400,000

tonnes.

• Middle East, mainly Saudi Arabia and Turkey also

imported some volume of PKC into the country.

Conclusion

• Samples of global feed formulation provided in this write-up

shows that it is use as feed blends for fresh water fish, beef

cattle, dairy cattle, sheep, swine, broiler and layer chicken.

• PKC offers feed producers a competitive priced feed

ingredient as it is the most competitive oilmeal traded in the

market.

• As PKC is obtained from a perennial crop, the product is

produce everyday. Thus, PKC can sustainably meet

compound feed producers daily requirement.

• With PKC appearing to be greener as it is derive from a

perennial crop compared to other major oilmeals which is

derived from crops which are seasonal in nature, PKC is a

good choice ingredient among green animal feed product

marketers.

Conclusion

• PKC is generally classified as an energy and protein-based

feed ingredient.

• The other valuable qualities of PKC is that it has a beta-

carotene content of 4.3-11.8 mg/kg, 0.35 mg/kg of vitamin E,

free from aflatoxin, toxic metal, heavy metals, pesticides and

dioxins.

• Fresh PKC has on average 10% palm kernel oil. PKC is

occasionally extracted by users to yield kernel oil to increase

its product value.

• PKC’s total amino acid content has a high by pass rate of 65-

75% implying high protein absorption.

• Generally, prospect for PKC globally is bright as there should

be much bigger market for the product alongside growing

global feed meals requirement to meet growing population

and affluence of the world.

Conclusion ( Continue) • The commercial reasoning that tied up growing affluence with

rising feed demand is that consumption of meat will rise with

rising income as vegetable-based food is relatively more dull

and bland.

• As for individual countries, they may have different market

potential. For example, in EU and USA, there is low potential

for growth in oilmeals usage due to stable lifestyle and

population. Despite stable outlook for oilmeals demand,

prospect for higher PKC usage is good as PKC usage is low.

In USA, imports of PKC is negligible while its compound feed

production is 121.2 Mn MT while EU-27 imported 2.2 million

MT while its compound feed production totalled 150.1 Mn MT.

Conclusion ( Continue)

• The EU is currently the biggest PKC importer, but the volume

is not significant in view of the total compound feed utilisation

by the livestock industry in the region. The strength of PKC,

which has proven to improve milk production in dairy cattle,

could be the main reason why New Zealand is importing a

substantial amount of PKC for its livestock industry. While

Pakistan’s import of PKC is rising, there is still room for much

improvement, in view of the sizeable dairy industry of the

country.

Thank You