The document summarizes key points about animal feed milling in India. It discusses that while India has progressed in feed milling practices, there is still room for improvement. It identifies several areas Indian mills could focus on to increase efficiencies, such as grinding techniques, mixing uniformity, pellet quality control, and moisture management. It also notes external factors like increasing fuel and electricity costs and raw material prices that mills have less control over. To remain profitable as costs rise, mills will need to optimize internal processes and maximize output.

1. Digital Re-print -
July | August 2014
Animal Feed Milling in India
- Pondering on Strategic Check Points
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3. FEATURE FROM
Animal Feed Milling in India
Pondering on Strategic Check Points
by Dr P.E. Vijay Anand, Director – India Feed/ Meal Program, US Soybean Export Council, New Delhi, India
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 feeds
Feed 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.
F

4. GRAIN&FEED MILLING TECHNOLOGY July - August 2014 | 15
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 control
Four 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 future
India’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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