vijay anand p e; ussec animal feed milling - pondering on strategic check points

ANIMAL FEED MILLING PONDERING ON STRATEGIC CHECK POINTS

Dr. P E Vijay Anand

Director

India – Feed / Meal Program, USSEC

Marketing

FEED MILLING IN THE VALUE CHAIN?

Raw Material and Input

Management Feed Milling Technology

Animal Production

So its important

Vijay Anand; Global Milling Conference 2014; 23-24 April 2014, Pondering on strategic feed milling check points

Animal feed milling - Pondering on strategic check

points

WHY SHOULD FEED MILLING IMPROVE IN

INDIA?

Most of it is not OK

Some - thinking of improving

Very few practice GMP Vijay Anand; Global Milling Conference 2014; 23-24 April 2014, Pondering on strategic feed milling check points

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FOOD VALUE CHAIN – WHY IS FEED MILLING IMPORTANT

Vijay Anand; Global Milling Conference 2014; 23-24 March 2014, Pondering on strategic feed milling check points

Raw material

Feed Manufacture

Animal production

Human food

Lower most step

All the more attention is needed because of this position; what goes wrong here gets passed throughout

points

THE SWING IS HIGHLY VARIABLE

Degrees of modernization vary - There is a lot of room for modernization and improvement immaterial of size of the mill

points

INTER-LINKAGES IN FEED MILLING

Genetics

Nutrition

Performance

points

PRESENT DAY DRIVER?

points

Genetic improvements are placing constant pressure on feed

manufacturers to produce quality feeds that match the increased

requirements of improved breeds without creating additional physiological or health

stress

HOW MUCH FEED WAS PRODUCED IN 2013?

Commercial broiler – 10 MMT

Commercial layer – 11 MMT

Poultry breeders – 1.74 MMT

Aquaculture – 1.25 MMT

Dairy – 7 MMT

TOTAL – 30.99 MMT Vijay Anand; Global Milling Conference 2014; 23-24 March 2014, Pondering on strategic feed milling check points

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HOW MUCH FEED WILL BE PRODUCED BY 2020?

31 40.00 29%

Obvious - Some good attention is needed

points

NEW FEED MILL BUSINESSES IN THE LAST 6

MONTHS

24 Mills 1.27 MMT Rapid expansion

points

NEW SOY MEAL BUSINESS

CG-Nil

OR- Nil

BH(2) 72/15

MP-Nil

PB(1) 48/10

HR(3)144/31

MH(1) 60/15

KA (0) Nil

KL(0) Nil

AP(6) 444/123

WB(2) 108/28

JH - Nil

RJ (2) 96/21

Feed capacity 1.11 MMT SBM potential 0.274 MMT

Poultry 13 Aqua 8

UP(2) 144/31

points

NEW FEED MILL BUSINESSES IN THE LAST 5 YEARS

Year New animal feed

businesses

New feed milling

capacity

New soybean

requirement

2009 39 2.5 0.500

2010 29 1.08 0.235

2011 29 1.04 0.254

2012 25 1.16 0.270

2013 51 2.10 0.403

TOTALS 173 7.88 MMT 1.66 MMT

points

PEOPLE ON CONTROLS

Feed Mill

Formulator

Production

Procurement QC and inventory

Engineering

Check Points

points

PROCUREMENT – FIRST STEP

Feed mills cannot have direct control on raw material

Material is diverse in terms of production methodologies used, geographies, quality, quantity, processing and handling

Purchase based on moral guarantee?

points

PROCUREMENT – CHANGE STYLE

Verbal agreements and phones are in great use

Contracts are not honored

Depending on guarantee has to set in

Analytical reports will decide; not phone calls

points

16 Vijay Anand; Global Milling Conference 2014; 23-24 March 2014, Pondering on strategic feed milling check points

LAB ANALYSIS? Majority don’t have labs

Advanced rapid analysis is helping take decisions; saves money

Choice of analytical labs is a matter of striking a balance between buyers and sellers

points

PRODUCTION Animal feed milling - Pondering on strategic check

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Head of production

Preventive maintenance

House keeping

Attention to every functioning part

Manpower on shop floor; training

18 Vijay Anand; Aqua India 2014; 23-24 January, Vijayawada, India; Advocating a path forward for freshwater fish farming

THREE MAJOR COSTS THAT FEED MILLS HAVE TO FIGHT

Fuel for transport and in-plant

operation

Increasing electricity cost

Increasing raw material cost

points

External factors not in

control of feed mills

ELECTRICITY

Grinding Mixing

Fines Pelletting

Cooling Moisture

points

DIESEL DOUBLE PINCH

Material in Material out

FEED MILL Vijay Anand; Global Milling Conference 2014; 23-24 March 2014, Pondering on strategic feed milling check points

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DIESEL IN THE LAST DECADE Animal feed milling - Pondering on strategic check

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RISING RAW MATERIAL

Surely a major combat area – cant afford to keep mill efficiency low

points

23 Vijay Anand; Global Milling Conference 2014; 23-24 April 2014, Pondering on strategic feed milling check points

CASH FLOW

Capital advance for input management

Capital blockage due to market vagaries

points

IMPORTANT CHECK POINTS (INDIA)

Feed Mill

Grinding

Mixing

Moisture Pest

control

Storage

Pelleting

points

GRINDING

Big cost in a feed mill

Selection of equipment

Strong maintenance

Optimizing particle size saves cost

Particle size – linked performance

Increase in particle size is known to increase digestion specially in the upper tracts of young animals

points

MIXING

Nutrient uniformity

Mix time; diet uniformity; ingredient segregation co-relation is not available

Mixer testing procedures?

Diet uniformity critical in younger

animals as compared to older animals

points

PELLETING

Pelleting

Reduces wastage

Minimizes selective feeding

Reduces ingredient

segregation

Less time and energy for

prehension

Destroys pathogens

Thermal modification of

starch and protein

Improved palatability

points

PELLETING

40% Formulation

20% Grinding

20% Conditioning

15% Die section

5% Cooling/Drying

60% of pellet quality can be

determined before it

reaches the pellet mill

points

WHAT ELSE DOES THE FORMULA DO?

Animal requirements

Pellet quality

points

WHAT ELSE DOES THE FORMULA DO?

Least cost formulations/Best cost formulations – can they be made to predict pellet quality too?

Charts are available on pelletablity of common ingredients

points

Pellet cooling

hindrances

Fat coating hindrance

Selective feeding

Segregation

Usually generated due to low pellet quality

Lower pellet quality

More fines

More recycling efforts/cost

Reduced through put of mill

points

MOISTURE

25 kg feed bag 10% moisture Equals 2.5 l water

2.5 l water is evenly distributed in a normal course

points

MOISTURE MIGRATION

Feed Bag Stacked against a wall Cooler surface

15 kg feed 2.5 l water

=16% moisture

points

WHAT ELSE DOES MOISTURE DO TO A MILL?

points

High raw material moisture = production loss due to in plant shrinkage

Higher finished product moisture = marketing problems

Procurement Manufacturing

SUMMARY

points

Milling is a weak link

Genetics is driving milling

Feed business growing

New Business in India

Feed’s position on value chain

Three major external costs

People on controls

Cash flow

Pelleting

Formulation

Mixing

Grinding

Moisture

LETS THINK AND PLAN

BETTER MILL EFFICIENCY

points Thank You

vijay anand p e; ussec animal feed milling - pondering on strategic check points

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