Feed Formulation (Doing it yourself) Business Plans

Feed Formulation (Doing it yourself) Business Plans
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CONTENT

  • Feed mill
  • Factors to be considered before embarking on feed formulation
  • Materials need for feed formulation
  • Know the nutrient in your feeds
  • Formulating the feed
  • Pearson square formula
  • 19.5% crude protein feed for layers, 'formulated'

FEED MILL

Feed mill is a department in livestock production that is made up of one or more buildings where feeds are formulated, processed, packaged and send to various livestock farms to meet their animal needs. This is an important branch in the livestock industry, where feeds are being prepared to meet the nutritional requirement of farm animals. Feed mill is of paramount importance, as it contributes about 85% valve to any agricultural based industry that has animal husbandry as its focus.
Feed formulation is the process of quantifying the amount of feed ingredients needed for a particular animal in the right proportion.  

FACTORS TO BE CONSIDERED BEFORE EMBARKING ON FEED FORMULATION

·        Age of animal
·        Origin of animal
·        Nutritional requirement of animal
·        Availability of animal

MATERIALS NEED FOR FEED FORMULATION
· 
      CARBOHYDRATE [energy sources (COH)]
1.      Maize
2.     Cassava
3.     Rice
4.     Yam

·        PROTEIN (including amino acids)
1.     Soya bean cake (SBC)
2.     Groundnut cake (GNC)
3.     Fish Meal

·        CALCIUM

1.     Bone meal
2.     Oyster shell
3.     Periwinkle shell meal
4.     Limestone
5.     Snail shell

·        FIBERS
1.     Wheat offal
2.     Palm kernel cake (PKC)
3.     Rice bran
4.     Soya beans offal

·        MINERALS(supplements/premixes)
1.     Salt
2.     Lysine
3.     Methionine

·        FAT AND OIL (also essential fatty acids)
1.     Animal fat
2.     Vegetable oil

·        VITAMIN
·        Vitamin supplements/premixes

KNOW THE NUTRIENT IN YOUR FEEDS  





         Fish meal is the highest quality protein source commonly available for feed formulation purposes, especially, when is made from a good quality whole fish.
         It is also a rich source of energy and minerals
         Fish meals are highly digestible, highly palatable, good smell that gives it a welcoming smell.
         It contains about 65% protein content with 80% digestibility 
         Its high in LYS, MET (deficient in plant sources)
         Fish meal also contains 1-2.5% n-6 fatty acids, essential to many fish and all shrimp
         If made from byproducts, its quality is not as good as trawler-caught
         The only problem observed is its high ash content, which sometimes result in mineral imbalance
         It is not used sparingly because of its high cost in the market.
         It can be partially replaced by soybean meal and other animal meals
         When using Fish Meal, one must remember that it cannot be stored forever
         It can rancidify due to high lipid content
         further, not all Fish Meal is created equal
         some types (menhaden) appear to be superior to others (sardine meal)
         Fish Meal must be very well ground and sieved to help remove indigestible parts

Soybean Meal (SBM)

         Soybean meal has one of the best essential amino acid profiles of all protein-rich plant feedstuffs
http://www.chrisfarmnigeria.com
         Soybean Meal does not appear to be deficient in any EAA for catfish
         Soybean Meal can be deficient, because their MET/CYS requirement is twice that of catfish
         some fish find Soybean Meal unpalatable, for this reason maximum levels are suggested
         Soybean meal is commonly used as a substitute for fish meal, however, is only to a point
         shrimp will consume high Soybean Meal feeds, but diet must be supplemented with fish meal at some point
         another problem involves losses in energy, minerals and lipids in diets where Soybean Meal replaces Fish Meal or other animal byproduct proteins
         Another variety of soybean meal is known as “de-hulled”
         de-hulled soybean meal contains 25% less ME, 85% less available P and 90% less n-3 FA’s than anchovy meal
         soybeans also contain trypsin-inhibitors
         trypsin inhibitor reduces digestibility of soy protein by the enzyme trypsin
         solution:  most soybeans are roasted prior to milling (destroys inhibitor)

Full-fat Soybeans

         Full fat soybean meal is different from regular Soybean Meal in that it has a full fat complement
         Full fat Soybean has not been solvent extracted
         Full fat Soybean often used as an energy source or for general balancing of the formula
         mainly used in salmonid (cold water) fish diets

Grains and By-products (carbohydrate → COH)

         Grains are primarily used as COH sources
         when whole, they contribute about 62%-72% of dietary starch
         starches are fairly well digested by warm-water species (60-70%), but not by cold
         heating COH via extrusion improves digestibility by 10=15%
         COH can also be used as binding agents
         Corn is commonly used in the U.S., but is high in xanthophyll (a pigment), giving tissue a yellow color (not good for fish sales!)
         corn gluten meal is high in protein (60%) and contains high levels of MET (excellent for formulation)
         rice bran often used in developing countries due to local rice production
         rice bran is a reasonable COH source, but is high in fiber and fat
         wheat gluten is a good protein source, but too expensive, often used as a binder

Animal By-products

http://www.chrisfarmnigeria.com          http://www.chrisfarmnigeria.com meat bone meal


         Meat and bone meal is a byproduct of the slaughter house
         contains 50-55% crude protein
         protein quality is low, so only marginally useful and varies dependent upon meat source
         can be a good source of energy, P, TM’s
         another problem:  high ash content
         digestibility improved by flash- or spray-drying
         poultry by-product meal (PBM) is often used by mills also producing chicken feed
         feather meal high in protein, but indigestible

Crustacean Meals

http://www.chrisfarmnigeria.com krill meal
         Shrimp waste meal is a reasonably good feed ingredient, if heads are included
         otherwise, the shell is primarily chitin and of limited digestibility
         the ammonia in chitin accounts for about 10-15% of the nitrogen in whole meal
         also a reasonable source of n-3 fatty acids, cholestrerol and astaxanthin (carotenoid)
         highly palatable and often serves as an attractant in feeds at 1-2%
         others:  krill meal, Artemia meal

Fats and Oils

         Used as energy sources, provide essential fatty acids, attractant, coating of pellet to reduce abrasion
         both animal and plant fats can be used, animal fats cheaper, better attractants
         marine lipids often added as oils if FM level is low (otherwise no source of marine FA’s)
         sources:  menhaden, shark, cod liver
         must be careful in storage of oil, feeds with oils due to rancidification

Fibrous Feedstuffs

         Most monogastric animals (e.g., fish) do not digest fibrous feedstuffs well
         it is unlikely that adding fiber to diets already with more than 3-5% will have any beneficial effect
         high fiber content reduces binding capacity of feeds, inhibits intake (due to reduced palatability), increases rate of passage and waste production
         sources:  brans

Binding Agents

         Binding agents are really needed for pelletized feeds, but not necessarily for extruded feeds (we discuss this later)
         in extruded feeds, all ingredients are gelatinized by high temperature and bind together well as a result of the process
         most organic binders are good for about 30 min of submergence
         starch is often used at over 10%, however it will hydrate and swell the pellet
         chemical binders (e.g., Basfin) have good binding potential, form cross-linkages with COH and PRO, but are toxic

Basic Facts

         In addition to the essential nutrients, feeds may contain organic and inorganic materials that have various effects on aquatic species:
         beneficial, detrimental or negligible
         they can affect growth, health or the processed product
         may be naturally occurring, intentionally or unintentionally added
         can be produced via microbial growth

Toxins and Antimetabolites

         The more important toxins affecting animal feeding are those associated with molds
         these are called “mycotoxins”
         three important genera are Aspergillus, Penicillium and Fusarium
         they exist and grow anywhere as long as there is enough COH substrate, no less than 14% moisture, adequate temperature, oxygen
         usually produced in feedstuffs prior to harvest, but also result from poor storage

Aflatoxin

         Aflatoxin is the mycotoxin of greatest concern in feeding of culture species
         both outright toxic and carcinogenic
         liver (hepatoma) and blood clotting problems
         rainbow trout are highly sensitive at 1 ug/kg exposure
         traditionally, sources include corn, cottonseed and peanuts
         aflatoxin contamination varies year to year

Ochratoxin

         These are compounds produced by Aspergillus and Penicillium molds
         widely found in nature
         typically associated with kidney toxicity
         toxic level is 4.7 mg/kg in diet
         other mold toxins have been found in warm-blooded animals, but not in fish
         most mold toxins also destroy nutrients in feeds
         example:  Pseudomonas can separate glutamic acid from folic acid, making it ineffective

Microbial Toxins in Commercial Fish/shrimp Feeds

         Usually not known that the feed is contaminated
         commercially-processed feeds are less likely to have these toxins
         screened against international transport and by feed manufacturers by law
         must contain less than 20 ppb
         up to manufacturer to require testing
         not destroyed by steam pelleting or extrusion
         presence in feeds reduced by proprionic acid

Histamine

         This is a toxic compound found in fish meal, a typical feed ingredient
         results from bacterial removal of COOH (carboxylic acid) from the EAA histidine
         comes from improper storage of raw fish prior to production of fish meal
         causes a reduction in growth rate
         usually comes from “dark” meat portion of fish
         other fish meal toxin is “gizzerosine”

Phytic Acid, Gossypol

         Phytic acid is an organic molecule related to inositol
         integral component of plant feedstuffs and holds 60-70% of the phosphorus
         problem is, it’s poorly available to fish
         reduces availability of zinc
         “Gossypol” is a component of pigment lands in the cotton plant
         limits availability of cottonseed meal used in feeds (suppresses growth rate and causes liver damage)

Fish Oils, Fiber

         Marine fish oils contain 20-25% PUFA’s
         the “autoxidation” of PUFA’s results in formation of large numbers of free radicals and peroxide compounds
         these are toxic due to reaction with other nutrients, limiting availability
         also cause cellular/subcellular damage
         severity of effect reduced by Vit E
         fiber can also be mildly “toxic” as it increases rate of gut passage
         high rate of passage causes reduced availability of nutrients

Diet Additives:  Hormones

         Hormonal control used to produce mono sex cultures of fish
         reduces reproduction/increases growth
         ex. Androgenic steroids (ethyltestosterone) fed to tilapia fry = 90% males
         does not work the same on all fish
         17-alpha-methyltestosterone improves growth and survival in salmonids
         andorgenic better than estrogenic
         used as implants in cattle

Pellet Binders

         Steam pelleted aquatic feeds, especially those fed to shrimp, contain binders
         these are used for improving water stability (reduced leaching and nutrient loss)
         two different types:  organic matrix (lignosulfonates or polysaccharides)
         other type:  chemical compounds (sodium hexametaphosphate)
         no evidence of detrimental effect on aquaculture species 

Antibiotics

         Some feeds can be formulated with antibiotics for treatment of Vibriosis, other bacterial infections
         Three antibiotics approved in U.S. are sulfadimethoxine, sulfamerazine and terrymycin (oxytetracycline, OTC)
         OTC commerically available as “medicated” fish (shrimp) feed, 1,500 mg/kg
         Must not feed medicated diets within 14-21 days from slaughter/harvest (more regulations!)

Attractants

         Attractants are materials added to feeds to serve as intake (feeding) stimulants
         They are cost effective since they cause shrimp/fish to eat feeds that otherwise would not be attractive (consumed)
         Facilitates inclusion of by-products
         Usual inclusion level is around 0.5-1.0 %, largely due to cost
         Examples:  krill meal, Artemia meal, fish oils, fish meal
         Sometimes used to reduce protein content of feed (but most also feed more frequently)

Antioxidants

         Oxidation of lipids in feeds or feedstuffs can cause reduction of the nutritional value of certain lipids and vitamins
         It can also result in production of toxic free radicals and peroxides (REM?)
         Potential for formation of these toxic compounds reduced by synthetic compounds such as BHA (butylated hydroxyanisole, BHT (butylated hydroxytoluene)

NUTRITIONAL REQUIREMENTS IN ANIMALS

Different animals need different nutrients to do well in terms of productivity and body build up.
            For example, layers will need much of energy feed (carbohydrates) to be able to produce more eggs, and a drop in the level of energy will reduce eggs production. Again, birds like broilers will need much of body-building feeds (protein) for them to gain weight.
            Pigs will need much of fats and oil (palm kernel cake) and protein, while fishes more of protein feeds

FORMULATING THE FEED

There are many method of feed formulation in the world, some of these are;
·        Computer based soft ware feed formulator  
This is the newly developed software use in the formulation of feed for different animal in the world
·        Ruler of thumb
·        Pearson square formula  

PEARSON SQUARE FORMULA

This is a universal formula use in feed formulation. The Pearson square ration formulation procedure is designed for simple rations. In order for the square to work, follow specific directions for its use. Nutrient contents of ingredients and nutrient requirements must be expressed on the same basis (i.e., dry-matter or "as-fed"). The Pearson square or box method of balancing rations is a simple procedure that has been used for many years. It is of greatest value when only two ingredients are to be mixed. In taking a close look at the square, several numbers are in and around the square. Probably one of the more important numbers is the number that appears in the middle of the square. This number represents the nutritional requirement of an animal for a specific nutrient. It may be crude protein or TDN, amino acids, minerals or vitamins.
In order to make the square work consistently, there are three very important considerations: 







.     The value in the middle of the square must be intermediate between the two values that are used on the left side of the square. For example, the 14 percent crude protein requirement has to be intermediate between the soybean meal that has 45 percent crude protein or the corn that has 10 percent crude protein. If barley is used that has 12 percent crude protein and corn that has 10 percent crude protein, the square calculation method will not work because the 14 percent is outside the range of the values on the left side of the square.
2.     Disregard any negative numbers that are generated on the right side of the square. Be concerned only with the numerical differences between the nutrient requirement and the ingredient nutrient values.
3.      Subtract the nutrient value from the nutritional requirement on the diagonal and arrive at a numerical value entitled parts. By summing those parts and dividing by the total, you can determine the percent of the ration that each ingredient should represent in order to provide a specific nutrient level. Always subtract on the diagonal within the square in order to determine parts. Always double check calculations to make sure that you did not have a mathematical error. It also is very important to work on a uniform basis. Use a 100-percent dry-matter basis for nutrient composition of ingredients and requirements and then convert to an as-fed basis after the formulation is calculated.

With the rising cost of animal feeds, farmers rearing animals are increasingly finding it difficult to make profit from their livestock keeping. All because they find it difficult to formulate their own feeds for their animals such as poultry birds, catfish, pigs, grass cutters and so on. Using Pearson Square method, you can easily formulate one now. However, this is only possible if farmers have the right quality of ingredients or raw material for formulating feeds. The Pearson Square method relies on the Digestible Crude Protein (DCP) as the basic nutritional requirement for feed. The most common ingredients used are whole maize, maize germ, cotton seed cake, soya beans, sunflower or omena (fishmeal).

Some tips on how to feed chicken

An egg-laying chicken requires 130 g of feed per day (provide clean water at all times).
• 1 chick requires 2.2 kg of feed for 8 weeks (thus 100 chicks = 2.2 kg x 100=220 kg. Chicks should be allowed to feed continuously and given adequate clean water at all times). If they finish their daily rations, you can give the animals fruit and vegetables cuttings to increase their level of vitamins, minerals and digestion in them.
• 1 pullet (young chicken about to start laying) should be fed 4.5 kg of feed for two and a half months until the first egg is seen. It should then be put on layer diet. Supplement with vegetables, edible plant leaves or fruits peelings in addition to the daily feed rations.
• All ingredients used must be of high quality and palatable. Never use rotten maize (Maozo). Chickens are very susceptible to aflatoxins poisoning.
• When using omena as an ingredient, ensure it is free of sand and seashells. If
you use maize germ, it should be completely dry.
• Feed should be thoroughly mixed to ensure the ingredients are uniformly distributed. It is preferable to use a drum mixer instead of a spade for mixing.
• Note that even after giving them the formulated feeds, chickens should be put on free range to scavenge for other micronutrients not provided for in the feeds.   

 19.5% CRUDE PROTEIN FEED FOR LAYERS FORMULATED

This is my own resultant on Pearson square formula for layers, using 19.5% crude protein for a 100kg bag.
Carbohydrate (Energy)
Maize                                         58.66
Fiber
Wheat offal                                14.67
Protein
Soya bean cake                            9.23
Groundnut cake                           9.23
Blood meal                                  4.61
Minerals
Premix                                         0.10kg
Methionine                                   0.25kg
Salt                                              0.25kg
Calcium 
Bone meal                                    3kg   
Total                                      100kg bag of feed




For your feed formulation on any animal


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SECTION 1(Business plan section)
  • SECTION I – EXECUTIVE SUMMARY
  • NAME OF BUSINESS / COMPANY
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  • SOCIAL/ECONOMIC VALUE
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  • SUMMARY OF PROJECT COST
  • BUDGET OF FIXED ASSETS / CAPITAL EXPENSES / INVESTMENTS
  • DEPRECIATION
  • UTILITIES
  • OPERATING EXPENSES (OPEX)
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  • INSTALLED / AVAILABLE EQUIPMENT
  • BREAK-EVEN ANALYSIS
  • LOAN REPAYMENT SCHEDULE AND INTEREST PAID
  • FORECAST OF PROFIT AND LOSS
  • CASH FLOW
  • BALANCE SHEET
  • GENERAL ASSUMPTIONS (BREAK EVEN ANALYSIS)
  • BUSINESS RATIOS - PROFITABILITY ANALYSIS
  • CONCLUSION
  • SECTION 3 – APPENDIX

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·         NOTE; According to our policy, we are not “allowed / permitted” to disclose peoples business or written feasibility study, “to anyone”, irrespective of their personality.

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·         This is just a sample of our executive summary on poultry feasibility study and business plan, carried out in Rivers State. 

·         1st sample;

These Feasibility study on poultry farming business (specializing on layers and boilers production), was conducted using projections, impressive publications, compounding interest/values, tables, graph, bar chart, pie chart, profits analysis and cash flow positions in other to give a clear picture of what is obtainable in that location, using eight plots of land, at Esemdiary village, Off Effurun Sapele Road, Okpe LGA of Delta state, Nigeria as a case study. 

Esemdiary village is a community in Okpe Local Government Area of Delta State with coordinates 05°26’N 5°57’E, which also plays the host community to the Warri Airport, which is actually located at Osubi. 

Okpe Local Government is a territory that used to be part of the original Okpe Kingdom, its headquarters is at Orerokpe, with a population of 128,398 people whose primary occupations include commercial farming, fishing, hunting, trading and gas exploration. 

After carrying out the feasibility study on Esemdiary village, Off Effurun-Sapele Road, Okpe LGA of Delta state, Nigeria, it was discovered that, farming generally will do well both on crop and animal production.

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