Feed Processing Plant

Animal Husbandry
Feed Processing Plant
1.Importance of feed in livestock sector
The success of livestock farming is largely dependent on the continuous supply of good
quality nutritious feeds at competitive price. Feed alone constitute about 60-70 per cent of
total cost of production of livestock products. Therefore, it needs more attention though
other factors are also important for remunerative return from livestock enterprises. The
farmers used to feed the crop residues to the cattle and buffaloes, however, sheep and goat
are normally maintained on grazing/browsing with supplementary feeding of broken
grains/other bypoducts.
Therefore, feeding of balanced concentrate feed to these animals was not common,
because of low productivity and unremunerative prices for the livestock products. The
improved poultry is fed only with concentrated feed. The requirement of food of animal
origin like milk, meat and eggs is increasing at a faster rate due to increased awareness
about the significance of protective proteins for the maintenance of human health. The
farmers realised the importance and started rearing good quality and high productive
animals/birds under stall fed conditions.
2.Scope for feed industry
2.1 With the increased demand for livestock products for domestic consumption as well as
export, the farmers realised maintaining of quality animals with proper feeding and
management. The proportion of crossbred animals or improved strains of birds increased
over the years. This has necessitated higher demand for balanced concentrate feed.
Presently, various milk unions, poultry corporations/ federations and private companies
are supplying both cattle and poultry feed of different qualities and forms (mash/ pellets/
crumbles) to the farmers.
Large size poultry farm/dairy farm owners, hatcheries and cooperative poultry units are
normally manufacturing their own feed by installing the necessary plant and machinery on
the farm. Some of the farmers are still feeding broken grains, cakes, gur, salt,etc. to dairy
animals by mixing at home.
2.2 The compounded feed manufactured by CLFMA (Compounded Livestock Feed
Manufacturers Association) members during 1998-99 was 3.16 million tonnes. The feed
production under organised sector since 1965 is given in Annexure-I. The demand-supply
position for various feeds is given in Annexure - II. The present supply is only half of the
total requirement. Moreover, the demand for small ruminants (goat and sheep) under stall
fed conditions, rabbits and pigs is not estimated. Considering their requirements, the gap is
much more.
2.3 The feed production could not keep pace with the growth in various species of farm

animals and poultry. To meet the growing demand of processed and complete feeds for
different class of animals, the unconventional feeds should also be used in the rations
through proper processing for removal of anti nutritional factors. Thus, it indicates that
there is a good scope for setting up feed processing plants of different capacities for
production of various quality feeds.
3.Financial assistance for feed industry
3.1 NABARD is an apex institution for all matters relating to policy, planning and operations in the field
of agricultural credit. It serves as a apex refinancing agency for the institutions providing investment
and production credit. It promotes development through formulation and appraisal of projects through
a well organised Technical Services Department at HO and Technical Cells at each of the ROs.
3.2 Loans from banks with refinance facility from NABARD are available for starting feed processing
plants. For obtaining the bank loan, the entrepreneurs/companies should apply to the nearest branch
of the commercial or cooperative or regional rural banks in their area in the prescribed application
form which is available in the branches of financing banks. The entrepreneurs are also required to
submit a detailed project report for which they can also take the help or guidance of the technical
officers attached to the bank.
3.3 For feed processing plant with very large outlay, a detailed project reports will have to be
prepared. The model format for formulation of bankable project is given in para 4. Banks provide
financial assistance for the following purposes.
(a) Construction of factory building, godowns for raw materials as well as for finished products, office,
canteen, generator room, essential quarters,etc.
(b) Purchase of equipments such as grinder, feed mixer, pelletizer, elevators, feed packing units, etc.
(c) Miscellaneous equipments such as transformer, generators, weighing scales vehicles, etc.
(d) Margin money for working capital requirement for one cycle of operation. The cost of land is not
considered for loan. However, if land is purchased for establishing a feed processing plant, land cost
can be treated as party's margin money upto a maximum of 10 per cent of the total cost of project.
3.4. Scrutiny of Scheme by the Bank: After the scheme is submitted to the Bank, it is examined for
technical feasibility and economic viability.
(a) Technical Feasibility:
This would briefly include:
(i) Availability of raw material such as grains, brans, oil cakes, mineral mixture, molasses, fish meal,
vitamins, etc.
(ii) Feed formulation and technical norms
(iii) Infrastructure available for feed testing, procurement of raw material, marketing of different feeds,
experience of the entrepreneur.
(b) Financial Viability: This would briefly cover:

(i) Project outlay, sources of funds and loan requirement

(ii) Raw material cost, expenses on fuel, labour, transport commission to be paid and other
overheads
(iii) Output costs i.e. quantity and sale price of different feeds, number and sale price of empty gunny
bags.
(iv) Income Expenditure statement and annual gross surplus
(v) Cash flow analysis - Benefit Cost Ratio(BCR), Net Present Worth (NPW) and Internal Rate of
Return (IRR)
(vi) Repayment Schedule i.e. Repayment of principal loan amount and interest Other documents such
as loan application forms, security aspects, margin money requirements,etc. are also examined. A
field visit to scheme area is undertaken for conducting techno economic feasibility study for appraisal
of the scheme.
3.5. Sanction of Bank loan and its disbursement: After ensuring its technical feasibility and financial
viability, the scheme is sanctioned by the Bank. The loan is disbursed in two or three stages against
construction of various civil structures, purchase of plant and machinery, miscellaneous fixed assets
and margin money for working capital requirements. Constant follow up and supervision of the
scheme is done by the Bank.
3.6. Lending terms
i) Unit Cost:
The Unit Cost depends upon the capacity of the feed mixing unit, type of feeds to be manufactured
and also the infrastructure required.
ii) Margin Money:
In case if the feed mixing unit is integral part of the commercial poultry or dairy scheme, the down
payment is based on the category of beneficiary. However, in respect of feed processing plant of
larger size, the margin money is normally 25 per cent of the total cost of the project.
iii) Interest Rate:
It depends upon the RBI guidelines and also the individual banks. The present rate of interest for
2.00 lakhs and above is linked to primary lending rates of banks which varies with the type of
investment, beneficiary and also the credit rating.
iv) Security:
Security will be as per RBI guidelines issued from time to time.
v) Repayment period of loan:
It depends upon the gross surplus generation in the scheme. The loan will be repaid in suitable
monthly or quarterly instalments usually within a period of 5-7 years. Wherever required, the grace
period is also considered.

vi) Insurance:
The building and other assets such as poultry sheds, equipments may be insured against natural
calamities.
4.Format of bankable project for feed plants
4.1 Introduction:
It should cover the name of the company, location of plant, activities, products, capacity of plant and
project outlay
4.2 Company :
It should cover the location of registered office, date of formation, registration and authorised share
capital. It should also cover the date of incorporation and commencement of business, the objectives,
areas of operation, subscribed share capital.
4.3 Promoters and their background: Name and address of promoters, their background, experience
and net worth.
4.4 Management of the company: Persons looking after the day to day management, their
background, experience,etc. should be covered.

4.5
i)

Project
Land

profile:
and

location:

This should cover the area of land, location of the plant, distances from nearby town, availability of approach
roads, power and water supply and other communication including schools, banks, hospitals,etc.
ii)

Civil

Structures:

Name of the Architect, type of structures proposed, drawings and detailed cost analysis of various civil structures
along with the present position of implementation may be indicated. The technical specifications of civil structures
are
given
in
Annexure
III.
iii)

Plant

and

Machinery:

The major plant and machinery (imported and indigenous separately), sources of supply, specifications and
quotations for various items of equipment need to be given. List of major suppliers of feed plant machinery is
given
in
Annexure
IV.
iv)

Technical

collaboration:

The name of the technical collaborators for monitoring and marketing of the products along with their addresses
and the type of collaborations should be indicated. Technical collaboration fee/royalty to be paid should also be
indicated.
v)

Manufacturing

process:

It should cover the manufacturing process of feed (mash/ pelleted feed) in the form of flow chart, proportion of
various
feeds
to
be
manufactured
and
the
composition
of
the
different
feeds.
vi)

Infrastructural

facilities:

a)

Raw

Material:

The feed ingredients (grains, cakes, brans, fish meal, molasses, vitamins, minerals,etc.), source and method of

procurement, basis of price fixation, agreements if any for regular supply of raw material may be indicated. BSI
standrads for feed ingredients are given in Annexure - V. Average nutritive values of common feed ingredients
and the reasonable levels for their inclusion are given in Annexure - VI and VII respectively.
b)

Packing

material

The type of packing material required (jute/plastic bags), source of supply, capacity and price of bag, approximate
quantity
required
per
month
and
method
of
purchase
need
to
be
furnished.
c)

Utilities:

Power:

The total power requirement of the unit, source of power supply, position of power supply in the area and stand
by arrangements made by the company, whether permission is obtained or applied to the State Electricity Board
for
power
connection.
*

Water:

The source of supply, quantity available vis-a-vis daily requirement and arrangements made for supply of water.
*

Fuel

The requirement of coal, diesel and gas, source of supply, adequacy of availability and cost of material may be
mentioned.
*

Steam:

Quantity required, source and capacity of boiler.

* Transportation:
The mode of transportation of raw material as well as feed, whether owned or hired vehicles,
availability of vehicles and cost per kilometer.
* Laboratory :
Whether the company is planning to set up a laboratory for testing the raw material as well as feed,
specification of laboratory equipment, quality and cost, the proposed tests to be carried out and the
adequacy of man power for carrying out these tests.
vi) Pollution Control:
The type of measures proposed for controlling the air pollution inside the unit and also for the
employees of the company.
vii) Man power:
It should cover the technical skill and unskilled labourers required, their availability and source,
method of recruiting them and also their salary structures/wage rates should be mentioned.

4.6 Marketing and business prospects:

a) The product mix, capacity of the plant, year-wise capacity utilisation and actual quantity of products produced
per year.
b) Areas of marketing of the product and strategies i.e. Talukas, district or state-wise quantities proposed for sale,
methods of sale, agencies/contractors, method of transportation of products, incentives or commission proposed
to be paid, expenditure on publicity and brand name should be indicated. It should also cover the proposed

marketing network in terms of staff and material.

c) Market survey for raw materials as well as for the products to be sold covering the demand/supply position,
other sources of supply of products, the average price of products for the last 4-5 years and also the potential for
selling the products should also be covered.
4.7 Socio-economic benefits:
The number of villages, farmers and number of animals benefited and also number of persons employed either
directly or indirectly in this activity.
4.8 Schedule of Implementation:
The proposed implementation schedule of the scheme may be indicated starting from purchase of land till
commercial production.
4.9 Swot Analysis:
The strengths, weaknesses, opportunities and threats should be discussed separately.
4.10 Project cost:
i) Land:
Area of land, cost of land and conversion charges
ii) Site and land development:
It should cover the land levelling, fencing/compound wall, internal roads, drainage,etc. The specifications, unit
cost and the total cost should be furnished.
iii) Civil structures:
The civil structures comprises of factory building, raw material and finished products godowns, office, laboratory,
quarters, garage, canteen, etc. Detailed plan lay outs along with cost estimates certified by the Engineer should
be given.
iv) Plant and machinery:
Imported/indigenous components, major suppliers, quantities, unit cost and the total cost of the plant and
machinery including the misc. equipments should be given. The quotations along with the specifications is
required to be enclosed.
v) Electrical system:
Covering transformer, diesel generators, internal and external electrification and also the deposits to be paid to
the State Electricity Boards. The specifications of transformer as well as generators along with the quotations
should be furnished. With reference to electrification - the break up is required to be given.
vi) Water supply and other utilities:
Source of water, specifications and expenditure on water supply system, cost of boilers for steam generation,etc.
vii) Vehicles:
Number and cost along with justification on requirement of the various vehicles, price quotations from the dealers
along with specifications should be furnished.

viii) Pre-operative and preliminary expenses:

The item wise cost and justification should be given.
ix) Contingencies:
Percentage of contingencies and its reasonableness
x) Margin money for working capital:
The margin money for working capital may be worked out taking into account the requirements of various raw
material, packing material, fuel,etc., finished products and sundry debtors for one cycle of operation.

4.11 Sources of Finance:

The total project cost and source of funds (equity/public issue, subsidy, loan,etc. should be furnished.
4.12 Techno economic parameters:
Should cover the capacity of the plant, yearwise capacity utilisation, quantity of feed manufactured,
commission on sale of feed, transportation charges, power and fuel charges, packing material
charges, salaries and wages, marketing expenses and other overheads. The procurement prices of
various ingredients as well as the sale price of various brands of feed should be indicated.
4.13 Economics of the project and cash flow analysis:
Considering the capacity utilisation and also the various techno economic parameters, the income
and expenditure streams have to be worked out to arrive at the gross profit. From the cash flow
analysis, the Benefit Cost Ratio (BCR), Net Present Worth (NPW) and Internal Rate of Return (IRR) of
the project may be worked out to establish the economic/financial viability of the project.
4.14 The model economics for feed plant with a capacity to manufacture 100 MT per day are given in
statements 1-10 as per the requirements sepcified in previous paragarphs.
4.15 Documents and clearances required:
Site Plan, structural drawings,quantities and detailed cost analysis of various civil structures certified
by an Architect, Price quotations and specifications for various items of plant and machinery, Approval
from State Electricity Board for load connection, NOC from Panchayat, approval from Inspector of
Factories, Registrar of Copy Rights, approval for brand registration, Registration of Company,
Memorandum of Articles of Association, Registration of Unit under SSI (If applicable), permission for
procurement of molasses, agreement between the Company and the collaborator for technical
assistance and market survey report.
5.Information sources and training facilities
Further reference list of books/periodicals on cattle and poultry feeds is given in Annexure - VIII. The
addresses of training centres on feed formulation and quality control are given in Annexure - IX.
6.Checklist for financing cattle/poultry feed projects (To be completed by the Executive/Officers of
the Bank forwarding the Scheme)
1. Articles of Association and Memorandum of the Company/Corporation _ _ _ _ _ _ _ _ _ _ _

2. Balance Sheets and profit and loss statements for last 2-3 years for the existing companies _ _ _ _
______
3. Profile of Directors of Company _ _ _ _ _ _ _ _ _ _
4. Project cost and sources of funds _ _ _ _ _ _ _ _ _ _
5. In case of consortium, names of banks participating in consortium _ _ _ _ _ _ _ _ _ _
6. Details of site, availability of land, electricity and water _ _ _ _ _ _ _ _ _ _
7. Availability of raw materials - Feed ingredients' source of supply and costs _ _ _ _ _ _ _ _
8. Capacity of the feed plant per shift, no. of shifts
and capacity utilisation over years _ _ _ _ _ _ _ _ _ _
9. Type of feeds and quantities proposed to be manufactured _ _ _ _ _ _ _ _ _ _ _
10. Market survey report for raw material as well as finished products _ _ _ _ _ _ _ _ _ _
11. Marketing strategy and net work for the sale of feed _ _ _ _ _ _ _ _ _ _
12. Technical and other man power
requirement availability and their salary structure _ _ _ _ _ _ _ _ _ _
13. Techno economic parameters for working out the economics of the project _ _ _ _ _ _ _ _
14. Cash flow and profitability statement _ _ _ _ _ _ _ _ _ _
15. Break even point and income generation _ _ _ _ _ _ _ _ _ _
16. Arrangements for working capital requirements _ _ _ _ _ _ _ _ _ _
17. Undertaking from State Govt. for meeting the deficit if any and also for repayment of loan and
interest if it is a corporation activity _ _ _ _ _ _ _ _ _ _
18. Licenses/approvals/permissions required from the concerned departments _ _ _ _ _ _ _ _
19. Site plan of the area _ _ _ _ _ _ _ _ _ _
20. Detailed drawings and cost estimates for all items of civil works signed by qualified engineers. _ _
________
21. Detailed specifications and cost of utilities _ _ _ _ _ _ _ _ _ _
22. Detailed specifications of each of equipment/ machinery and its cost based on market
data/quotations _ _ _ _ _ _ _ _ _ _
23. Detailed list and cost of imported items of equipment and license for import _ _ _ _ _ _ _ _ _ _
24. Implementation schedule and the mode of execution of work i.e. Departmentally/ labour
contract/turnkey basis _ _ _ _ _ _ _ _ _ _

Annexure - I
Growth pattern in production of compounded feeds by CLFMA members

Year

Production(000 % to total Production(000 % to total Production(000

tonnes)
tonnes)
tonnes)

1,965

53.30

67.73

25.40

32.27

78.70

1,970

125.40

59.80

84.30

40.20

209.70

1,975

275.30

65.67

143.90

34.33

419.20

1,980

549.90

61.09

350.20

38.91

900.10

1,985

867.30

63.30

502.80

36.70

1370.10

1,990

1324.50

61.29

833.70

38.71

2161.20

1991-1992*

1479.20

61.07

942.80

38.93

2422.00

1992-1993*

1475.30

63.09

863.10

36.91

2338.40

1993-1994*

1370.80

61.00

876.50

39.00

2247.30

1994-1995*

1465.10

57.69

1074.60

42.31

2539.70

1995-1996*

1542.80

54.89

1267.80

45.11

2810.60

1996-1997*

1528.60

52.03

1409.00

47.97

2937.60

1997-1998*

1430.70

51.54

1345.00

48.46

2775.70

1998-1999*

1488.20

46.73

1696.60

53.27

3184.80

1999-2000

1302.30

44.46

1600.70

55.14

2903.00

2000-2001

1274.80

45.62

1519.30

54.38

2794.10

Annexure - II
Demand for cattle and poultry feeds and supply by CLFMA members
Population in millions

Feed in million tonnes

Particulars

1994-95

1995-96

1996-97

1997-98 1998-99 1999-2K

Animals in milk

27.874

27.875

27.876

27.878

27.879

27.88

Dry animals

33.583

33.584

33.586

33.588

33.589

33.591

Animals in milk

24.570

24.571

24.572

24.574

24.575

24.576

Dry animals

15.266

15.267

15.268

15.268

15.269

15.27

Animals in milk

7.156

7.156

7.156

7.157

7.157

7.157

Dry animals

2.155

2.155

2.156

2.156

2.156

2.156

Animals in milk

12.232

12.233

12.234

12.234

12.235

12.235

Dry animals

1.900

1.900

1.900

1.900

1.900

1.901

A. Total cattle feed

requirement

23.443

23.445

23.446

23.447

23.448

23.449

Commercial layers

118

123

127

133

137

145

Commercial broilers

532

532

585

600

612

625

Layer parents

1.18

1.23

1.27

1.33

1.37

1.45

Broiler parents

3.8

3.8

4.18

4.29

4.37

4.46

Commercial layers

5.61

5.84

6.03

6.32

6.51

6.89

Commercial broilers

1.76

1.76

1.93

1.98

2.02

2.06

Layer parents

0.06

0.06

0.06

0.07

0.07

0.07

Broiler parents

0.25

0.25

0.27

0.28

0.28

0.29

B. Total poultry

7.67

7.91

8.3

8.64

8.88

9.31

Estimated cattle
population :
Cattle Population
CB cows

Buffaloes

Cattle feed
requirement
CB cows

Buffaloes

Poultry population

Poultry
feedrequirements

feedrequirements
C. Total of cattle
andpoultry feed
requirement (A + B)

31.11

31.351

31.744

32.089

32.328

32.762

Supply of livestock feed

from CLFMA members

2.54

2.81

2.91

2.76

3.16

2.90

Annexure -III
Technical Requirements of Civil structures
1. Site Plan
A detailed site plan indicating the following information should be furnished: - Area of the land Boundary conditions and approach road - Layout, location of various existing and proposed structures
indicating with different colours (preferably)
2. Drawings and rate analysis
Structural and Architectural drawings of each item of civil constructions, measurement sheet, abstract
of measurement and estimate of work rates approved in the schedule of rates, current market rates
and analysis of rates applied to site conditions should be provided.
3. Development and Construction works
3.1 Land Development
The type of development, earth work and the cost should be given.Care should be taken to limit the
cost by assessing the area - requirement for various construction works.
3.2 Fencing
Fencing can be of barbed wire with angle iron/ R.C.C./ Stone/ Wooden poles or chain link or boundary
wall. The prevailing cost of these fences/wall may be considered.
3.3 Roads
Normally, Water Bound Macadam (WBM) roads are adequate. Normal road width of 15 to 20 ft. is
sufficient. The total length, width and the height of the road alongwith the prevailing cost may be
furnished.
3.4 Civil Structures:
i) Godown :
For raw material and finished products. Normally, the raw material godown with a capacity to hold
ingredients for a period of 45 days is considered. For storing 200 kg. of raw material, roughly one
sq.ft. area is required. Similarly, in case of finished products(feed) also, for storage of one week
production the godown may be considered.

ii) Silos :
The silos for storage of grains may also be considered in case of large size plants. The silos may be
of cement or aluminium or steel structure.
iii) Factory Building:
Depending upon the capacity of the plant, the factory building area may also be considered. Normally,
for a 10 tonne per day capacity plant, an area of 600 sq.ft. is sufficient. In case of automatic plants,
higher areas may be considered which includes the ingredient bins, elevators and control panel
areas,etc.
iv) Laboratory:
For proximate analysis of ingredients as well as finished product it is essential to have own laboratory
in case of large size processing plants. An area of 500-600 sq.ft. may be considered for such
laboratory purpose.
v) Office Building :
It depends upon the number of staff to be positioned in office for a plant with a capacity to handle 100
tonnes per day, an office area of 800-1000 sq.ft. is approximately sufficient.
vi) Store Room :
It depends upon the capacity of the plant. A separate store may be considered for other equipments
and vitamins, growth promoters,etc.
vii) Generator Room :
200-400 sq.ft. area for a generator is sufficient.
viii) Security Post:
A Security Post at the entrance is essential to control the movement of trucks as well as the mobility of
staff.
ix) Quarters: Manager :
Plinth area of 700-800 sq.ft. area is adequate for the purpose. Supervisor: A maximum plinth area of
400 sq.ft. may be considered. Labour and other staff: 200 sq.ft. area is adequate. The quarters are
normally considered only for the essential staff who are required to be on the site/plant.
x) Weigh bridge :
For the weighment of ingredients and the finished products, a weigh bridge is essential at the
entrance.
xi) Raw Material drying area:
For drying of the grains to reduce the moisture levels to the extent required for a longer time. The
drying area depends upon the capacity of the plant and the quality of grains to be stored.
4. Minor Irrigation Structures
Source of water and the expenditure on MI structures like well, motor, pipeline, water tanks,etc. may
be considered.

Annexure - IV
List of major suppliers of Feed Plant Machinery

List of Feed Plant Machinery Suppliers

1 Ashok Engineering Works Behind
11 Khare Engineering Industries C -17,
Satkar Hotel, Bankapur Chowk, PoonaIndustrial Estate Coop.Society Miraj 416
Bangalore Road, Hubli 580 020
410
2 B I Industries 22-1-1040/9, Derulshafa
Main Road Hyderabad 500 024

12 Kiran Engineering Works G T Road,

Batala - 143 505, Punjab

3 B K Allied Industries G T Road, Near

Water Tanks Khanna - 141 401, Punjab

13 Paragon Enterprise Industries 27,GIDC

Industrial Estate Nandesari-391340
Baroda Dist. Gujarat

4 Buhler (India) Ltd. 209, T V Industrial

EstateS K Ahire Marg, Worli, Mumbai
400 028

14 Power Tech 900/1/A,GIDC, Makarpura,

Baroda 390 010

5 Cremach Designs 893/4, GIDC

Industrial Estate Makarpura, P B
No.802 Baroda 390 010

15 Precision products Plot No.2007, Phase

IV GIDC Estate Vatva, Ahmedabad 382
445

6 Forms and Gears L -3 , Industrial

EstateGuindy, Madras 600 032

16 Shakti Engineering Works G T Road,

Batala 143 505, Punjab

7 Hard case Engineering Works Ltd. 5-3- 17 Spectoms Engineering Pvt Ltd.
325, Lalaji Meghaji Compound M G
Purushottam Estate Bahvcharaji Road
Road, Secunderabad - 3
Baroda 390 018
8 Indian Fabricators Phase IV Plot
No.1305/1, GIDC Industrial
EstateNaroda, Ahmedabad 382 330

18 Sri Guru Siddheshwar Engineering

Works, Karwar Road, Near INDI Pump
Hubli - 580 024, Karnataka

9 Jaspal Steels & Allied Industries,

Chandigarh Road P B No. 73, Khanna
141401, Punjab

19 Standard Equipment Co. Jandiala Road,

Taran Taran Amritsar - 143 401Punjab

10 Jaymes Engineering Co.Ltd. Great

Western Building 130-132, Shahid
Bhagat Singh Rd. Mumbai 400 023.

20 Troika Processes Ltd. 607, Embassy

Centre Nariman Point Mumbai 400 021.

Annexure - V
BIS Standards for Feed/Ingredients
1.Animal feeds and feeding stuffs
-glossary of terms for IS :9703-1980
-methods of test for : General methods IS:7874 (Pt I)-1975
-minerals and trace elements IS:7874(PtII)-1975
-microbiological methods IS:7874(Pt III)-1975
-methods of sampling for aflatoxin analysis IS:13246:1992
-determination of aflatoxin B-1 content IS:13427:1992, IS 6651-1989
-determination of calcium: Titrimetric method IS:13433(PtI)-1992;
-Atomic absorption method IS:13433(PtII)-1992
-determination of calcium and magnesium in mineral supplements IS: 13574-1992
2. Blood
3.
4.

meal
Bone

IS

meal

Coconut

Oilcake

7.
8.

1942-1968,
pressed

IS:7061-1973(calcined)
IS:2154-1986

extracted
Cottonseed

Oilcake

solvent
6.

7060-1973

IS:
Expeller

Solvent
5.

IS:3592-1985

Expeller

pressed

IS:1712-1982

extracted
Dicalcium
Fish
Fodder

phosphate,

animal
meal
yeast

IS:3592-1985
feed
IS:4307
IS:3198

grade

IS:5470

-1969

1983

1965

9.

Gram

oilcake

Expeller
solvent

11.

Guar

12.

oilcake

Expeller

Maize

germ

Malt

pressed

15.
16.

17.Mustard
18.
Par

boiled

bran

seed

as

livestock

Silk

worm

Solvent

extracted

Solvent

extracted

Solvent

extracted
Sunflower

livestock

feed

-1986

1986
-

1970

IS:9867

IS:9863
-

1981
1992

1975
-

IS:3163

1979
-

1965

(kardi)oilcake

extracted

26.

1983

IS:5065

ingredient

for

1986

IS:5862

feed

IS:2503

1886

IS:6242
solvent

oilcake

IS:1932

extracted

polish

(til)

1972

IS:11586

ingredient

IS:3648

pressed

Sesamum

IS:10671

Safflower

25.

1985

IS:3593

meal,

1985
1985

ingredient

requirements

Rice

Salseed

oilcake

solvent

bran

-solvent

feed

extracted

-Expeller

-as

livestock

Nutrient

23.

1982

feed

1986

ingredient

kernel

rape

rice

-solvent

30.

livestock

as

Rice

22.

feed

1982
-

IS:2152

oilcake,

Poultry,

21.

livestock

IS:2151

seed

Nigerseed

20.

29.

as

and

1986

4193

feed

meal

IS:

IS:2153

oilcake

Meat

ingredient

IS:1935

bran

Mango

feed

IS:3440

sprouts

1965

IS:3441

as

gluten

14.

28.

IS:1713

extracted

13.

27.

livestock

meal

-solvent

1965
-

extracted

Linseed

as

pressed

IS:3162

Groundnut

24.

IS:3161

husk

10.

19.

chuni

as

extracted
livestock

pupae,

IS:

feed

oilcake

(meal)

sal

seed

meal

oilcake

oilcake;
ingredient

IS:

IS:10657

1982

1982
1971

5862

undecorticated
IS:10147

1973

IS:7059

(meal)

IS:1934

IS:6107

nigerseed

soyabean

7059

ingredient

dry

1985

1970
1973

1983

-decorticated

IS:10165

1982

31. Tapioca IS:1509 - 1972

32.
33.

Spent
Tur

pulp
-

IS:

chuni

husk

IS:

5064
3160

IS:

1980

1965

5063

1969

34. Wheat bran IS: 2239 - 1971

Annexure - VI
Average Nutritive Values of common feed ingredients (Dry Matter basis)
No. Botanical name
B
A1
12
3
24
35
6
47
58
9
6
10
11
7
12
13
8

LEGUMINOUS SEEDS
CEREALcajan
GRAINS
Cajanus
Cicer
Avenaarietinum
Sativa
Cyamopsis tetragonolobo
Eleusine lablab
coracana
Dolichos
Gossypium
spp.
Hordeum vulgare
Glycine max.
Oryza sativa
Lathyrus
sativus
Lens
esculenta
Panicum millaceum
Phaseolus aconitifolius
Pennisetum typhoides
Paureus
P.radiatus
Sorghum bicolor
P.calcaratus
Vigna
sinensis
Triticum
aestivum

9C
1
2
3
4

Zea SEEDS
mays
OIL
Arachis hypohaea
Brassica spp.
Lunium usitatissium
Sesamum indicum

D NON CONVENTIONAL
SEEDS
1 Acacia nilotica
2 Cannabina
3 Cassia tora
4 Crotalaria juncea

Common
name

Oats, Jai
Finger millet
Barley, Jav
Rice, Chawal
Proso millet
Pearl millet
sorghum,
Jowar
Wheat
Maize, Makka

CP (%)

DCP(%) TDN (%) DEMCal MEMCal

Pigeonpea
Chickpea,
Gram
10
7.5
Cluster bean
10
7.0
Hyacinth
bean
Cotton seed
11
7.7
Soyabean
8 Khesari6.0
Lentil,
Masoor
6
4.0
Moth bean
12
6.0
Green gram
Black gram
12
6.6
Rice bean
Cowpea,
Lobia
13
9.0
10

7.0

20
20
80
30
70
17
18
85
40
85
29
25
70
27
65
26
19
85
21
26
87

14.5
14.0
22.5
10.2
12.5
37.0
22.0
20.0
22.0
20.0
14.0
15.0
20.0

85

75
3.585
79
3.170
3.788
90
3.785
3.180
82
2.8
82
3.778
73
3.875
3.7

3.3 2.7
3.72.8 3.2
3.5 2.8
3.12.5 2.5
3.83.1 3.3
4.0 3.4
3.73.2 3.2
3.52.5 2.9
3.6 2.9
2.3
3.6 2.9
3.43.2 2.9
3.2 2.7
3.33.4 2
3.3

Groundnut seed
Mustard, Rape
Linseed, Flex
Sesame, Til

30
22
19
24

23.0
20.5
15.5
19.5

130
112
118
125

5.8
5.0
5.2
5.5

5.0
4.5
4.3
5.0

Babul seed/pod
Seeds
Chakunda
Sunhemp

14
33
18
36

10.2
--12.5
31.0

65
--88
70

3.0
--3.9
3.1

2.6
--3.2
2.5

PROTEIN SUPPLEMENTS
(VEGETABLE SOURCE)

Arachis hypogaea

Brassica spp.

Expeller

47

32.0

85

3.7

3.3

Solvent ext.

49

43.2

70

3.1

2.6

Expeller

34

28.5

80

3.5

2.9

Solvent ext.

38

30.5

68

3.0

2.4

Carthamus tinctorius

Expeller

42

32.0

69

3.0

2.5

Cocos nucifera

Coconut

23

18.0

85

3.7

3.2

Glycine max.

Expeller

41

35.7

86

3.7

3.3

Solvent ext.

46

41.4

80

3.5

3.0

Gossypium spp.

Expeller

28

20.0

80

3.5

2.9

Linum Usitatissium

Expeller

30

25.5

80

3.5

3.0

Sesamum inidcum

Expeller

40

35.0

85

3.7

3.3

Zea mays cake

20

15.0

82

3.6

3.1

10

Helianthus spp

Sunflower

26

22.0

70

3.1

2.7

11

Guizotia abyssinica

Niger cake

45

25.5

55

2.4

2.0

(ANIMAL PROTEIN SOURCE)

1

Blood Meal

87

62.0

90

4.0

3.4

Meat Meal

65

52.5

85

4.2

3.6

Fish Meal

50

45.0

70

3.4

2.7

Annexure - VII Reasonable levels of inclusion of various Feed Ingredients in Poultry feeds

S.No. Ingredients

Level in diet (%)

C FEEDS
PROTEINOUS FEEDS (VEGETABLE SOURCE)
ENERGY

Barley

Maize (yellow
or white)
3 Groundnut
cake, solvent extracted

Oats

Pearl millet or Bajra

30 - 40

Rice, hulled
7 Safflower cake, decorticated

40 - 50

Sunflower
decorticated
Sorghum8 (white
with cake,
low tannins)

25 - 35

20

Sorghum (milo or coloured)

Less than 10

20

8
B

Wheat 11 Sunflower cake, decorticated

MILLING BYPRODUCTS OF CEREAL GRAINS

Hominy feed, Maize bran, Maize grit

2
3

Molasses2 Fish meal, 55 - 60% protein

3 deoiled
Fish scrap,
solubles (dried)
Rice bran,
ricefish
bran

Rice polish

Salseed meal,
deoiled
6 Skim
milk powder

Tapioca chips, flour

Coconut cake, Cottonseed cake

Groundnut cake, expeller

Linseed cake

Linseed cake, hot water treated

Mustard cake, rape cake, niger cake

Sesame cake or til cake, expeller

10 Soyabean meal, heat treated

D PROTEINOUS FEEDS (ANIMAL SOURCES)

1

Fish meal, 45% protein

Feather meal, hydrolysed

Silkworm pupae meal

20 - 35

40

60
Less than 10

20
Less than 5
20
Less than 10

45 - 50
Less than 10

20

30 - 40
20

10

5 - 15

6-8

10 - 20

25 - 40

3-5

5
5

10 - 20

E MISCELLANEOUS FEEDS
1

Animal and vegetable fats

3-5

Distillers dried grains and solubles

10

Leguminous fodders leaf meal

Penicillin mycellium wastes

10

NB: Some minor seeds like that of Lathyrus, Kasani, Dhaincha etc. and cakes like water washed
neem seed kernel cake, mahua seed cake and other processed feeds may be used as
Annexure replacement for similar feeds at 5 to 10 % levels.
VIII List of
Training Centres on Feed Formulation and Quality control
1. Central Avian Research Institute, Izatnagar - 243 122 (Uttar Pradesh)
2. Harayana Agricultural University College of Animal Sciences, Hissar - 125 004
3. Regional Feed Analytical Laboratory Govt. of India, CPBF Campus Industrial Area, Chandigarh 160
002
4. Govt. of Maharashtra Feed Analytical Laboratory C/o. Wool Research Centre, Sheed Breeding
Farms Gokhalinagar, Pune 411 016.
5. Regional Feed Analytical Laboratory Govt. of India, C/o. Central Poultry Breeding Farms, Aarey
Milk Colony, Mumbai 400 065.

6. B V Rao Institute of Poultry Management & Technology Urlikanchan, Pune, Maharashtra

7. Central Poultry training Institute Govt. of India, Hessarghatta Bangalore 560 088
8. TAPCO Feed Analytical Labs No.2, Chamiers Road, Nandanam Chennai 500 035
9. ICAR Research Complex for North East Region Bishnupur, Shillong 793 004
10. Orissa University of Agriculture and Technology Bhubaneshwar 751 003

Annexure - IX
Books/Periodicals on Cattle/Poultry Feeds
----------------------------------------------------------------------------------------------------------------------Sr Name of Book Author Publishers No.
-----------------------------------------------------------------------------------------------------------------------1. Hand book of Animal Husbandry ICAR ICAR Bhavan Pusa, New Delhi
2. Animal Nutrition and Feeding Practices S K Ranjhan Vikas Publishers, New Delhi
3. Feeding of Poultry Dr B Panda ICAR, N.Delhi

4. Poultry Nutrition S Bose -do5. Agro Industrial by products and non conventional feeds for livestock feeding S K Ranjhan -do6. Text book of Feed processing Technology N Pathak Vikas publishers, New Delhi
7. Poultry Feed Technology H C Saxena International Book Distri- butors
8. Operation and Maintenance of Cattle Feed Plants NDDB MIS, Mehsana
9. Indian Poultry Industry Year Book(1994) P R Gupta A-25, Priya- darshanivihar New Delhi
10. Dairy India Year Book(1997) P R Gupta A-25, Priya- darshanivihar New Delhi

Statement 1 : Commercial Poultry Feed Formulations

Sr.No.

Ingredient

Commercial Layer Feed

Chick

Grower

Layer

Cost

Prop
ortion

Value

Proportio
n

Value

Proportio
n

Value

( /Kg)

(Kg)

( )

(Kg)

( )

(Kg)

( )

Maize

4.88

511.90

2498.07

319.30

1558.18

391.50

1910.52

Rice Polish

4.00

50.00

200.00

50.00

200.00

50.00

200.00

Jowar

4.19

0.00

0.00

60.00

251.40

40.00

167.60

Rice Kani

5.00

50.00

250.00

100.00

500.00

60.00

300.00

DEO Rice
Polish

3.00

0.00

0.00

124.10

372.30

0.00

0.00

DEO
Groundnut
cake

7.90

50.00

395.00

90.00

711.00

130.00

1027.00

DEO
Soyabean
meal

8.00

230.00

1840.00

80.00

640.00

110.00

880.00

Sunflower
meal/extract

4.02

50.00

201.00

120.00

482.40

90.00

361.80

Limestone
powder

1.00

5.00

5.00

5.00

5.00

20.00

20.00

10

Dicalcium
Phosphate

11.26

10.00

112.60

10.00

112.60

10.00

112.60

11

Salt Pure

4.00

5.00

20.00

5.00

20.00

4.00

16.00

12

Poultry
Mineral
Mixture

2.00

30.00

60.00

30.00

60.00

30.00

60.00

13

Shell Grit/
Marble Grit

1.40

0.00

0.00

0.00

0.00

50.00

70.00

14

Vitamin and
Probiotics
Mix

30.00

6.00

180.00

6.00

180.00

13.00

390.00

15

D.L.
Methionine

180.00

1.50

270.00

0.40

72.00

1.20

216.00

16

L.Lysine

140.00

0.60

84.00

0.20

28.00

0.30

42.00

1000.00

6115.67

1000.00

5192.88

1000.00

5773.5

Total(Kg)
Statement 1 :

Commercial Poultry Feed Formulations (continuation ...)

Sr.No. Ingredient

Commercial Broiler Feed

Starter
Cost

Finisher

Proportio
n

Value

Proportio
n

Value

(Kg)

(Rs.)

(Kg)

(Rs.)

Maize

4.88

512.00

2498.56

573.00

2796.24

Rice Polish

4.00

50.00

200.00

0.00

0.00

Jowar

4.19

0.00

0.00

30.00

125.70

Rice Kani

5.00

0.00

0.00

20.00

100.00

DEO Rice Polish

3.00

0.00

0.00

0.00

0.00

DEO Groundnut cake

7.90

70.00

553.00

60.00

474.00

DEO Soyabean meal

8.00

280.00

2240.00

235.00

1880.00

Sunflower meal/extract

4.02

30.00

120.60

25.00

100.50

Limestone powder

1.00

5.00

5.00

5.00

5.00

10

Dicalcium Phosphate

11.26

10.00

112.60

10.00

112.60

11

Salt Pure

4.00

4.00

16.00

4.00

16.00

12

Poultry Mineral Mixture

2.00

30.00

60.00

30.00

60.00

13

Shell Grit/Marble Grit

1.40

0.00

0.00

0.00

0.00

14

Vitamin & Probiotics

Mix

30.00

7.00

210.00

6.00

180.00

15

D.L. Methionine

180.00

1.50

270.00

1.50

270.00

16

L.Lysine

140.00

0.50

70.00

0.50

70.00

1000.00

6355.76

1000.00

6190.04

Cost ( /Kg) Proportion(Kg

)

Value ( )

Total(Kg)
tatement 2 :
Commercial Cattle Feed Formulation

Sr.No. Feed Ingredient

1

Deoiled Cakes (cotton seed,

sunflower, corngluten, etc.)

8.00

150

1200.00

Cereals (maize, jowar, sorghum

broken rice, etc.)

4.88

100

488.00

Deoiled rice bran

3.00

470

1410.00

Tapioca Products

3.00

100

300.00

Salt

4.00

20

80.00

Mineral (bone ash, lime, etc.)

10.00

20

200.00

Molasses

5.00

120

600.00

Urea

4.00

20

80.00

1000

4358.00

Total
Weighted average cost of raw
materials

Cost ( /Ton)

Proportion(Ton)

Value ( )

Broiler - Starter - Finisher

6355.76 6190.04

0.125 0.125

794.47 773.76

Layer - Chick - Grower - Layer

6115.67 5192.88
5773.52

0.050 0.100
0.300

305.78 519.29
1732.06

Cattle - Feed

4358.00

Total

0.300

1307.40

1,000

5432.75

Statement 3 :
Calculation of working capital requirements (

in lakhs)

Year
Sr.No. Particulars

Period Cost (
/ton)
---

---

1*

70

80

90

100

70.70

80.80

90.90

101.00

Capacity Utilisation

Raw materials
consumption including
wastage (tonnes per day)

Raw materials inventory 45days

5433

172.85

197.54

224.24

246.93

Work in progress

1 day

5937

4.20

4.80

5.40

6.00

Packing material

30days

305

6.47

7.39

8.32

9.24

Power and Fuel

15days

160

1.70

1.94

2.18

2.42

Finished goods inventory 7 days

6193

30.65

35.03

39.41

43.79

Sundry debtors

7 days

6908

33.85

38.68

43.52

48.36

Less : Sundry creditors

7 days

5433

26.62

30.42

34.23

38.03

Total working captial

requirement

223.09

254.96

286.83

318.70

Margin money on
working capital

55.77

63.74

71.70

79.67

7.97

7.96

7.97

IIncremental margin on
working capital
Working capital loan

167.32

191.22

215.13

239.03

Interest on working
capital loan (@18% per
annum)

15.06

34.42

38.72

43.03

Statement 4 :
Capital cost of the Project

S.No.

Particulars

Quantity

Specifi- cations

Unit cost

Total
cost
(Rs.in
lakhs)

acres

Statement
5 : Land
1

50000

/acre

3.5

Land
and site
Manpower
Requirement
2
development
i)
Land levelling
Sr.No.
Manpower
(No.)

70000

ii)

Barbed wire fencing

850

iii)1

Manager
Internal roads

300000

iv)2

Gate Officer
Accounts

v) 3

Security cabin Engineer

Maintainance

4
3

i) 6
ii)
iii

1 r.mts.

1000
5,000

r.mts. 5,0000.5

30

1 Sq.mts.

3000
6,000

/Sq.mts.
6,0000.9

5,000

5,000

4,000

8,000

3 Sq.mts.

3,000
3500

3,000

Chemists

2354

Machinery Hall

Stores Supervisor

laborratory
Assistant
Accountants

250

Office cum

325

Generator Supervisor
and
Electrical

90

switch room

11

Mechanical
Canteen andSupervisor

12

change room
Skilled
workers

v)

50

Civil Structures

iv)10

8,000
8,000 3
300000 Lumpsum

Sub total

Operators

vi)

Garrage for vehicles

vii)

Residential quarters

200
80

Total

Incentives and Perks (30% of

a.the
Manager
salary)(one)

1
1

Sq.mts.
Sq.mts.

17.5

3770

/Sq.mts.

12.25

2,500
2,500

2,500

37

9,000

/Sq.mts.

2,500
3000

21

9,000
/Sq.mts.
82.39

7000

1 Sq.mts.
Sq.mts.

10.58

2,500
2,500

2,5002.7
/Sq.mts.
2,500

3230

/Sq.mts.

6.46

2150

/Sq.mts.

1.72

Sq.mts.

3500

/Sq.mts.

2.8

Sq.mts.

2,000
---

42,000

102,000
30,600

b. Supervisor (3)

150

Sq.mts.

3200

/Sq.mts.

4.8

c. Labourers (10)

150

Sq.mts.

2000

/Sq.mts.

Architect fees

0.5

% of civil cum land

development costs

Total monthly payments

viii)

1.4
Salary2(per /cuft
Total Salary
month)
150
/r.mts.
1.28

1Lumpsum

Sales Officer
Raw material and
Floor
supervisors
finished
feed
godown

cuf
Requirement(Per
head)r.mts.

132,600

0.7

Sub total

134.33

Plant and Machinery

i)

Intake and grinding

section

733000

/unit

7.33

ii)

Mixing section

232000

/unit

2.32

iii

Bagging and
services

340000

/unit

3.4

iv)

Electricals

164000

/unit

1.64

v)

Steel strructures

297000

/unit

2.97

vi)

Errection and
commissioning

Lumpsum

--

95000

Lumpsum

0.95

vii)

Hopper speed
control

Lumpsum

--

180000 Lumpsum

1.8

Lumpsum

--

355000 Lumpsum

3.55

and hopper & misc.

equipment
viii)

Transportation,
insurance

Statement 6 :
Techno-economic parameters

S.No.

Particulars

Capacity of the plant ( MT / 2shifts )

No. of operating shifts per day (8hrs/shift)

No. of working days in a year

100
2

First year

150

Second year

300

Capacity utilisation (%)

First year

70

Second year

80

Third year

90

Fourth year

100

Wastage of raw material (%)

1.00

Raw material consumption(MT)

First year

10605

Second year

24240

Third year

27270

Fourth year

30300

Average cost of Raw materials

5433

(Rs. per MT)

8

Power and fuel

160

(Rs. per MT of raw material consumed)

9

Cost of packing materials

305

(Rs. per MT feed manufactured)

10

Wages (Rs. per MT of feed manufactured)

39

11

Factory overheads (Rs. lakhs per year)

30

12

Repairs and maintainance (Rs. lakhs per year)

2.40

13

Administrative overheads (Rs. lakhs per year)

33

14

Selling and distribution overheads (Rs. lakhs per year)

27

15

Salaries, incentives and perks (Rs. in lakhs/ Month) with 5%

increase per year

16

Product mix (%)

17

1.33

Comm. broiler - starter

12.50

Comm. broiler - finisher

12.50

Commercial Layer - Chick mash

5.00

Commercial Layer - Grower mash

10.00

Commercial Layer - Layer mash

30.00

Cattle Feed

30.00

Quantity of feed manufactured(MT)

First year

10500

Second year

24000

Statement 7 :
Calculation of depreciation on written down value method (Rs.in Lakhs)

Civil
Depreciatio Plant and Depreciatio Misc. Fixed Depreciatio
Structures
n
Machinery
n
Assets
n
Year

Value at
begining of
the year

( @ 10 % per
annum )

Value at
begining

( @ 25 % per
annum )

141.40

14.14

45.44

11.36

50.50

16.67

127.26

12.73

34.08

8.52

33.84

11.17

114.53

11.45

25.56

6.39

22.67

7.48

103.08

10.31

19.17

4.79

15.19

5.01

92.77

9.28

14.38

3.59

10.18

3.36

83.50

8.35

10.78

2.70

6.82

2.25

75.15

7.51

8.09

2.02

4.57

1.51

67.63

6.76

6.07

1.52

3.06

1.01

60.87

6.09

4.55

1.14

2.05

0.68

10

54.78

5.48

3.41

0.85

1.37

0.45

11

49.30

4.93

2.56

0.64

0.92

0.30

Statement

Value at ( @ 33 % per
begining
annum )
of the year

Income and expenditure and tax liability

*The value is a notional figure to arrive at Average DSCR through computerised formula for any
number of years i.e upto 10 years

Statement 9
Repayment schedule

Quarter

O/S at the Recovery Recovery Recovery Recovery

Total
Total
begining
of
of
of interest of interest recovery recovery
of the qtr. principal principal
in the year in the qtr in the year
in the year

1*

58.94

0.00

2.28

2.28

2*

176.81

0.00

6.85

6.85

235.74

0.00

9.13

9.13

235.74

0.00

235.74

9.82

9.13

18.96

225.92

9.82

8.75

18.58

216.10

9.82

8.37

18.20

206.27

9.82

196.45

9.82

7.61

17.43

10

186.63

9.82

7.23

17.05

11

176.81

9.82

6.85

16.67

12

166.98

9.82

13

157.16

9.82

6.09

15.91

14

147.34

9.82

5.71

15.53

15

137.52

9.82

5.33

15.15

16

127.69

9.82

17

117.87

9.82

4.57

14.39

18

108.05

9.82

4.19

14.01

19

98.23

9.82

3.81

13.63

20

88.40

9.82

21

78.58

9.82

3.04

12.87

22

68.76

9.82

2.66

12.49

23

58.94

9.82

2.28

12.11

24

49.11

9.82

25

39.29

9.82

1.52

11.34

26

29.47

9.82

1.14

10.96

27

19.65

9.82

0.76

10.58

28

9.82

9.82

0.00

39.29

39.29

39.29

39.29

39.29

39.29

9.13

7.99

6.47

4.95

3.43

1.90

0.38

27.40

34.26

28.17

22.08

15.99

9.90

3.81

9.13

17.82

16.29

14.77

13.25

11.73

10.20

27.40

73.55

67.46

61.37

55.28

49.19

43.10

* During first and second quarters the average balance is taken into consideration as the loan
will be disbursed in a phased manner

Statement 10 :
Cash flow analysis of the feed plant project (Rs. in Lakhs)