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INDUSTRY PROFILE

Cattle play a vital role in the economy of India. Cow and bullocks are regarded as the
foundation of agriculture in India. Cattle feed supplies the motive power for almost all
agriculture operations such as ploughing, lighting water from wells and the transport of
produced to the market. They provide most of the manure used by the farmers in India and
often enable them to earn some this during this spare time by carting for hire; they again
yield valuable product such as milk, butter and ghee. The unawareness of farmers about the
proper feeding methods of cows affects the milk productivity cows in rural areas. Due to
this reason the importance of cattle feed industry has been increased in India.
Indian livestock feed industry , though quite old, is still in a very primitive
stage, as it is supplying only about 5 % for cattle feed , and 30% for poultry feed in India.
The bulk of the feed is being produced by un-organized sector compressed of home and
custom mixers. Our human population is ever growing and more people are likely to
consume more animal product as the economy and income of the people grow. This
expands the market for animal products and therefore compound feed also.
India is deficient in green fodder. The increasing allocation of arable land and other
natural resources for growing food grains,” cereals, and oil seeds for human consumption
and cash crop for exports, the problem of shortage of green for animal feeding is bound to
increase. This opens up prospects for compound livestock industry.
Feed industry come into existence in India in 1961 with establishment of feed
plant in Ludhiana, India. The animal feed industry has developed since the beginning of
20th century, initially supplying feedstuffs only for ruminants and later, as demand
developed, also for pigs and poultry. In the past feed mills were usually built at major ports
or close to inland water ways. Many of the raw materials were imported, including serials
such as wheat, barley and maize, and proteins from groundnuts, linseed , cottonseeds and
fishmeal. Some home produced materials were also used generally by products of the food
industry. These included wheat feed, left over from flour manufacture; oilseed cakes and
meal, from the manufacture of margarine and cooking oils. It can be seen as the compound
feed production for cattle increased between 1974 and 1983. This increase was influenced

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by the financial incentives for dairy farmers to produce as much milk as possible, there by
requiring large volume offered for their cattle.
The quality standards of Indian feeds are high are high and up to international
levels. The industry’s production is about 3.0 million tones, which represents only 5 % of
total potentials, and feed exports are not very high. The feed industry has modern
computerized plants and latest equipments for analytical procedure and least cost ration
formulation , and its employs the latest manufacturing technology. In India the most
research work on animal feed is practical and focuses on the use of by products the
upgrading of ingredients and the enhancing of productivity.
Feed manufacturing on commercial and scientific basis started around 1965 with
the setting up of medium- sized feed plants in northern and western India. Feed was
produced mainly to cater to the need of dairy cattle. India is currently self sufficient in live
stock feed and dose not depend on imports. Instead , the country exports large quantities of
solvent extracted metals, which are a major source of foreign exchange earnings. BIS has
produced guideline feed standards and the industry also has its own guidelines. Currently
there is no compulsion to use BIS standards, but the central government has been advising
states to introduce their own regulatory standards.
GLOBAL SCENARIO:
The global animal feed market is growing at a steady pace and has a promising
future because of the globally increasing demand for meat and meat products. Feed
additives are becoming an important part of feed for animal growth and nutrition. Recently,
disease outbreaks such as avian flu and foot-and-mouth diseases have also increased
concern over animal health across the world. Environmental concerns, such as reduction of
phosphorous content in manure are promoting feed additives consumption for animals.
The Europe and the U.S. are the largest markets for animal feed additives and Asia
is emerging as a high growth market.
Live stock production is growing rapidly as a result of the increasing demand for
animal products. A joint IFPRI /FAO/ILRI study :Live stock to 2020.the next food
revolution (Delgado 1999),suggest that global meat production and consumption will rise
from 233 million tons (2000) to 300 million tons(2020),and milk from 568 to 700 million
tons over the same period . Over the few decades, the increasing demand has been largely

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met by the worldwide growth in intensive livestock production, particularly poultry. This is
expected to continue as real income grows in the emerging economies.
Intensive livestock production is very efficient in using feed conversion rates of
1.8-1.9 are possible .feed conversion for layers is now below 1.65kg/dozen eggs. But
production relies heavily on grain, soya, fishmeal and other feed which frequently need to
be imported into developing countries. Feed grains are thought to compete directly, or in
the use of land, with grains for human consumption and livestock are often blamed for
inefficient use of feed and energy. Indeed, in some systems, e.g. beef feedlots, energy and
nitrogen conversion is poor. However, if efficiency is seen over the entire production
chain, and expressed as input of edible human food/output in human edible food, the view
of animal production is more positive. If it is assumed that all 1000 million tonnes of
cereals, roots and tubers used for livestock are edible for humans (in practice, they are not)
then livestock use 80-100 million tonnes edible protein. On the positive side, the 233
million tonnes meat, 568 million tonnes milk and 55 million tonnes eggs produced globally
contain 65 million tonnes of protein. So while input is higher than output, if improved
protein quality on the output side is considered, a reasonable balance emerges.
Industrial livestock production depends on external inputs. Technology, capital and
infrastructure requirements are based on large economies of scale and labour efficiency,
which may or may not be seen as positive in developing countries. One person can operate
a unit of 10- 12,000 laying hens and 35-40,000 broilers, 6.5 times per year. Hence
industrialisation requires less labour than traditional systems. However, given the rapid
increase in demand, there is additional employment above the current level and further jobs
are created in the supply and processing industries. And as a way of providing eggs,
poultry meat and pork at competitive prices, it has been successful in meeting the
escalating demands for low cost animal products in rapidly growing urban centres of the
developing world.
The industrial system is also associated with environmental problems.
Industrialisation implies large numbers, large volumes of wastes, animal and human health
risks, and poor animal
welfare. Waste products are often dumped without accounting for the
environmental costs. Manure storage and disposal is one of the main problems of large

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industrial operations. Pigs and poultry excrete some 65 and 70 percent, respectively, of
their nitrogen and phosphate intake. Nitrogen, under aerobic conditions, can evaporate in
the form of ammonia with toxic, eutrophic and acidifying effects on ecosystems. Nitrous
oxide, a greenhouse gas, is formed as part of the denitrification process with particularly
harmful effects on the environment. Nitrates are leached into groundwater posing human
health hazards, and run-off and leaching of nitrogen directly lead to eutrophication and bio-
diversity loss of surface waters and connected ecosystems. Phosphorus, on the other hand,
is rather stable in the soil, but, when P saturation is reached after long term high level
application of manure, leaching occurs and this also causes eutrophication or rivers and
lakes.
To control the undesirable effects of industrial livestock production, The Livestock
and Environment authors proposed:
1. to establish zoning for industrial production systems;
2. to bring animal densities in line with the absorptive capacity of land and water,
through quota systems, as already imposed in many parts of the world; and
3. to prescribe regulations for waste control from processing and industrial
production units, and use of noxious substances, management practices, and labelling.
They also point out that there may be environmental benefits of industrial
production systems.Firstly, the rapid development of pig and poultry systems helps to
reduce total feed requirements of the global livestock sector to meet a given demand. The
shift from red to white meat (i.e., ruminants to monogastrics) implies a great improvement
in feed conversion efficiency. It may therefore alleviate pressures for deforestation and
degradation of rangelands, such as is happening in parts of Latin America and Asia, thus
saving land and preserving biodiversity. Secondly, the feed-saving technologies developed
for this system can be effective at any scale and therefore can be successfully transferred to
smaller farming systems. Thirdly, waste management and treatment technologies have
been developed which may convert it into valuable organic fertilizer and energy in the
form of biogas or electricity.
More benign development of pig and poultry production systems requires attention
to national and local government policy to promote and encourage effective solutions.

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INDIAN SCENARIO:
The Indian feed industry is about 35 years old. It is mainly restricted to dairy and
poultry feed manufacturing; the beef and pork industry is almost non-existent. The quality
standards of Indian feeds are high and up to international levels. Raw materials for feed are
adequately available in India (there is the advantage of a successful soyabean industry with
some 5.7 million hectares in production). The industry's production is about 3.0 million
tonnes, which represents only 5 percent of the total potential, and feed exports are not very
high. The feed industry has modern computerized plants and the latest equipment for
analytical procedures and least-cost ration formulation, and it employs the latest
manufacturing technology. In India, most research work on animal feeds is practical and
focuses on the use of by-products, the upgrading of ingredients and the enhancing of
productivity. The projected increase in the demand for livestock products has important
implications for the livestock feed industry, and the demand for energy and protein raw
materials. At present rates of growth, it is projected that production will have reached 5
million tonnes by 2020.
Sustainable agriculture, integrated systems and organic farming methods have been
promoted by development agencies for many years, and yet their real impact is very small.
Over the last 30 years, FAO has worked in the field to develop technologies for integrated
farming systems appropriate to small producers, particularly in the tropics. For ruminant
livestock, urea treatment of straw and the use of multi-nutrient blocks have been shown to
greatly improve nutrition of animals fed on low quality roughage diets. The use of
sugarcane and its by-products has been demonstrated in many countries, including the
feeding of pigs on sugarcane juice and molasses while ruminants consume the pressed cane
stalk or bagasse. Legumes and tree forages have also provided needed protein inputs into
cattle, sheep and goat production systems, while benefiting the environment through
nitrogen fixation and organic matter. Attention has been paid recently to the use of
mulberry, Morusalba, as a high quality forage for cattle. Finally, the use of water plants
(Azolla, Lemna, etc.) has been shown to provide good DM production and animal
performance in studies in Latin America and Asia.
These technologies have been combined into integrated farming systems for the
small producer that are biologically sustainable and achieve high levels of production, with

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minimal environmental problems as the manure is recycled or used for biogas

production.Much of this work is described in publications by T.R. Preston, of which one is
cited here.Undoubtedly, the technologies have contributed to the improvement of income
and lifestyle of small farmers and represent an effective approach to sustainable
development and poverty alleviation. But the approach has been divorced from the parallel
growth of intensive systems and industrial livestock throughout the world, which can be
seen as providing the bulk of supply to meet the demand.
The challenge is to enable small producers (who are usually the ones applying the
more sustainable technologies and integration of farming activities) to have access to a
wider market - termed Ruralizing the Livestock Revolution. There is also a need and
demand for low cost and simple technologies for livestock and product processing. All too
often, the middle-men or traders take the greatest share of the profit because they have the
means, the knowledge and the access to the consumer market. Emphasis needs to be given
to the development of small-scale and village-level processing, including equipment,
training, distribution and marketing. India already has an advantage in this area.Medium
sized and small cooperative livestock systems
India's very positive experience with the NDDB and milk production could have
important lessons for the development of other parts of the livestock sector. If the
cooperative system and organized marketing is applied more to the poultry sector, there is
enormous potential for expanded production in rural areas, supplying the cities. The
authors of the FAO report suggest that backyard production could be coordinated through
local units, given that the scavenging hen produces the cheapest eggs. But this may not be
the most effective method to advance production and supplies to meet the demand. It may
be better to develop medium sized cooperative commercial units which are more
susceptible to technological improvement and sustained supply. Such systems would not be
the very small, backyard operations but medium sized village cooperatives of say 10000 to
50000 birds. The advantages of such development would include:
1. Ownership remains with village people
2. Enterprise is larger and enjoys some economy of scale
3. Some of the technical advantages of industrial systems compared to backyard
farming

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4. A small but viable feed mill can be operated

5. Management is more efficient: breeding, feeding, veterinary treatment, etc.
6. Extension work is facilitated
7. Can still be less capital intensive than industrial units
8. Labour is reduced and allows for secondary employment/income
9. Marketing is more efficient: regular supply, increased scale, improved standards
possible...
10. More people participate and benefit from the market
11. Easier to apply Good Agricultural Practices than either industrial or backyard
farming
12. Environmental and ethical advantage over industrial units could be exploited for
added value
Given the potential market for an additional million tonnes each of eggs and poultry
meat, the is considerable opportunity for participation in this expanding sector. It also
implies more than 2-3 times the required capacity for poultry feed production, preferably in
small integrated units.
The implications for local feed production are that these small units (10,000
layers/35,000 broilers) would need 1-2 tonnes per day of poultry feed. This might be
further integrated, particularly in the states of Karnataka, Kerala, Andra Pradesh, Tamil
Nadu and Maharashtra, with soya bean production and small-scale processing.
Such vertical integration, albeit on a relatively small scale, is desirable and appears
feasible with these numbers. Cooperative marketing is required to ensure the scale needed
to supply the cities.Unfortunately, experience in the Indian poultry industry has been mixed
with wide shifts in prices and failures of companies as a result.
There is suspicion of the present 'integrators' and a need for a more organized and
sustainable system to develop the sector effectivelyThe above analysis highlights the
potential for livestock production globally and in India particularly. However, there are
serious concerns about food safety and the environment associated with the growth of
intensive, commercial livestock which need to be addressed if the livestock sector is to
develop in a sustainable way, satisfying the more exacting demands of the consumer and
world markets.In recent years and in many countries, public concern about the safety of

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foods of animal origin has heightened due to problems that have arisen with bovine
spongiform encephalopathy (BSE), dioxin contamination, outbreaks of foodborne bacterial
infections, as well as growing concern about veterinary drug residues and microbial
resistance to antibiotics. These problems have drawn attention to feeding practices within
the livestock industry and have prompted health professionals and the feed industry to
closely scrutinise food quality and safety problems that can arise in foods of animal origin
as a result of animal feeding systems.
Some foodborne diseases have recently become more common. For example,
outbeaks of salmonellosis have been reported for decades, but within the past 20 years the
disease has increased in incidence on many continents. In the Western hemisphere and in
Europe, Salmonella enteritidis (SE) has become the predominant strain. Investigations of
SE outbreaks indicate that its emergence is largely related to consumption of poultry or
eggs. In 1994, there was a nationwide outbreak of salmonellosis in the United States as a
result of contamination of pasteurized ice cream during transport in lorries that had
previously carried nonpasteurized liquid eggs containing Salmonella enteritidis. It is
estimated that 224,000 persons were affected by the outbreak.
Other foodborne pathogens are increasing in prevalence because they are new
microorganisms or because the role of food in their transmission has been recognized only
recently. Infection with Escherichia coli serotype O157:H7 (E. coli) was first described in
1982. Subsequently, it has emerged rapidly as a major cause of bloody diarrhoea and acute
renal failure. The infection is sometimes fatal, particularly in children. Outbreaks of
infection, generally associated with beef, have been reported in Australia, Canada, Japan,
United States, in various European countries, and in southern Africa. In 1996, an outbreak
of Escherichia coli O157:H7 in Japan affected over 6,300 school children and resulted in 2
deaths. This is the largest outbreak ever recorded for this pathogen.
Listeria monocytogenes (Lm) is considered emerging because the role of food in
its transmission has only recently been recognized. In pregnant women, infections with Lm
can cause abortion and stillbirth, and in infants and persons with a weakened immune
system it may lead to septicemia (blood poisoning) and meningitis. The disease is most
often associated with consumption of foods such as soft cheese and processed meat
products that are kept refrigerated for a long time because Lm can grow at low

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temperatures. Outbreaks of listeriosis have been reported from many countries, including
Australia, Switzerland and the United States. Two consecutive outbreaks of Listeria
monocytogenes in France in 1992 and 1993 were caused by contaminated pork.tongue and
potted porkFAO data show that livestock production, and demand for animal products, will
grow rapidly in the next 20 years. These predictions show a massive increase in animal
protein demand, needed to satisfy the growth in the human population. Consumption of
livestock products, with the associated demand for feed grains and the environmental
effects of this pressure, will grow even faster in some countries. It is predicted that there
will also be a greater concentration and associated problems of livestock in the cities and
peri-urban areas. These problems will include environmental pollution and, not least, the
increasing risks of zoonotic diseases affecting humans.
The big increase in animal protein demand over the last few decades has been
largely met by the world wide growth in intensive livestock production, particularly
poultry. This is expected to continue as real income grows in the emerging economies.
Industrial production relies heavily on grain, soya and fishmeal, and has a high cost in
terms of fossil fuel consumption. The concentration of animals, disassociated from land
and crops, presents alarming problems of waste disposal. Technologies are needed to make
use of the waste as fertilizer and fuel.
Sustainable agriculture, integrated systems and organic farming methods have been
promoted by development agencies for many years, and yet their real impact is very small.
The challenge is to enable small producers to have access to a wider market. There is also a
need and demand for low cost and simple technologies for livestock and product
processing. Emphasis needs to be given to the development of small-scale and village-level
processing, including equipment, training, distribution and marketing.
It may be better to develop medium sized cooperative commercial units which are
more susceptible to technological improvement and sustained supply. If the cooperative
system and organized marketing is applied to the poultry sector, there is enormous
potential for expanded production in rural areas, supplying the cities. The advantages of
such development are: ownership remains with village people; enterprise is larger and
enjoys some economy of scale; some of the technical advantages of industrial systems
compared to backyard farming; a small but viable feed mill can be operated; regular

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supply, increased scale, improved standards possible; more people participate and benefit
from the market; its is easier to apply good agricultural practices than either industrial or
backyard farming; and there are environmental and ethical advantage over industrial units
that could be exploited for added value.
Fulfilment of consumer demand is not only quantitative but also qualitative.
Livestock products must be produced from disease-free animals and under hygienic
conditions. We must also question the use of additives that 'improve' production but are
unacceptable to the consumer. At the policy, producer and processor level, the provision of
safe and wholesome food must be recognised as the cornerstone to sustainable livestock
and product development.
FAO is engaged in developing Codes of Good Agricultural Practices (both in the
feed industry and from 'farm to fork') which will support Quality Assurance schemes that
address issues of human health, animal health and the environment India's animal wealth is
quite large in terms of its populations of cattle, poultry, sheep and goats, camels, horses
and pets Recently, aquaculture has also been growing in importance in India.
Feed manufacturing on a commercial and scientific basis started around 1965 with
the setting up of medium-sized feed plants in northern and western India. Feed was
produced mainly to cater to the needs of dairy cattle.
CLFMA was formed in June 1967 as an association of feed manufacturers and
associated industries such as ingredient suppliers, importers, feed additive manufacturers,
consultants, hatcheries and milk cooperatives and feed machinery manufacturers.
The objectives of CLFMA are to promote the concept of nutritionally balanced
compound feed; to promote, assist, organize and coordinate scientific research in the field
of animal nutrition; to conduct, assign, sponsor or co-sponsor surveys and studies; to
collect, classify and circulate information related to animal feed to its members and
government; to offer suggestions to government in formulating policies; and to impart
training to livestock farmers, feed mill personnel, veterinarians, students and others. The
office-bearers of CLFMA are elected and operate for a maximum of two years at one level.
Over the years, CLFMA has been able to solve many problems of the industry, but
many others still remain unsolved. CLFMA is gradually becoming a representative of the
entire livestock industry.

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Formed in June 1967 as The Compound Feed Manufacturers Association, CLFMA

now has around 200 members, including all sectors of the livestock industry. CLFMA OF
INDIA is recognized not only by livestock farmers, Central and State Governments,
Government Departments, Agricultural Universities, Veterinary Colleges and National
Research Institutes in the country, but also by related sectors outside the country.
CLFMA's views are solicited and reckoned with by our Central and State
Governments while formulating policies governing not only animal feed industry but also
the entire gamut of animal production.
CLFMA, the sole, All-India representative of manufacturers of nutritionally
balanced and scientifically compounded feed for cattle, poultry, fish, prawns etc.,
manufacturers and suppliers of feed supplements & raw materials, feed plants & machinery
and other service providers business associated with livestock industry. Today CLFMA has
around 200 members including all sectors of the industry.
Few animal feed manufacturers’ way back in 1964 initiated the dialogue to give
organizational bent to this industry. As a result, CLFMA was formed and registered on 8th
June 1967, which in 1969 was registered as a charitable public trust. The prime objective
of CLFMA is helping the promotion of overall animal husbandry, by promoting the
concept of balanced feeding of animals in accordance with their nutritional requirements
for deriving the maximum output from them through productivity improvement.
CLFMA is fully committed to manufacturing and supplying high quality; safe and
conversion-efficient animal feeds to livestock farmers at prices affordable to them.During
2001, at the AGM held at Goa, the resolution was passed to form a Sub-Committee to
broad-base CLFMA.It was agreed by the members present that all sectors of livestock
industry should come together for the progress of the industry.
The share of compound cattle feed manufactured by the industry, in relation to the
overall potential, is low for the following reasons:
1. The cattle population is fragmented and spread over large parts of the country.
Farmers' low level of education and strong traditional beliefs mean that there is generally
little awareness of compound cattle feed.
2. More than 50 percent of the country's total milk production comes from a very
large number of low-yielding cows and buffaloes. A further 25 percent of milk production

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comes from buffaloes and only the remaining 25 percent of the total is produced by cross-
bred and improved cows.
3. Industrially manufactured compound cattle feed has proved its value for cross-
bred cows and buffaloes but not for low-yielding cattle because of
their genetic limitations. Home- mixed feed is very frequently used for buffaloes and low-
yielding cattle.

KERALA SCENARIO:
Cattle feed industry is growing in Kerala. There are many cattle farmers as well as
laboratories, so cattle feeds industry is growing. The major players n Kerala are Kerala
feedsGodrej FeedsLtd,Milmafeeds,SunandhiniFeed , Prima Feed.
a) Kerala Feeds: Kerala Feeds Ltd is a public sector stock feed manufacturing Unit
under the Government of Kerala which was set up in 1995 with a total project cost of
approximately Rs.35 Crore. The plant is located in Panjapally (Now Feed Nagar) in
Kalletumkara Village of Thrissur District, 2.5 kms away from the Irinjalakuda Railway
station. The commercial production was started in 1999. Within a short period of 4 years
the company has increased its total production from 3793.49 MT in 1998-1999 to 125567
MT in 2004-2005. The technology used for manufacturing is MMCP (Milling, Mixing,
Cooking & palletizing). The machinery is imported from Netherlands
b) Milma: The name MILMA has been derived from the cumbersome predecessor,
Kerala Livestock Development Board and Milk Marketing Board (KLD&MMB).
KLD&MMB existed from 1976 to 1981. The name MILMA was coined at the official
level by Mr. S. Nagarajan IAS. A 1961 batch Indian Administrative Service (IAS) officer,
he took over KLD&MMB as its first chairman.
Milk distribution in Kerala was available at only a few locations in Kerala. The
distribution and sale was handled by the employees of the Board. The consumers had to
purchase coupon booklets in advance and exchange the coupons in exchange for milk. No
mechanism existed to tally the sale of milk and the coupons received. Mr. Nagarajan
bought about a change in this system by making the consumer pay for milk at the time of
purchase instead of the coupon booklet system. Moreover at that time milk was being sold
in bottles and for the first time in India he introduced milk in ½ liter sachets. He had a

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prototype machine for packaging milk in sachets installed in Thiruvananthapuram. From

the public sector he moved the sale of milk to the private sector. Milk booths permits were
issued to private entities for the sale of milk from MILMA. From 1981 onwards under the
advice of Dr. V. Kurien, by forming cooperative societies PrayarGopalakrishnan and others
were able to introduce MILMA to the whole of Kerala
The KeralaCo-operative Milk Marketing Federation (KCMMF) or Milma started
its operation in 1980 with its head office at Thiruvananthapuram. It was started under the
Indo- Swiss project The project was launched in 1963 on the basis of a bilateral agreement
executed between the Swiss Confederation and the Government of India. The project has
made great strides in the improvement of livestock farming in the state. One of them is the
development of Swiss Brown, a cross breed suited for the state's conditions. The project is
now managed by the Kerala Livestock Development and Milk Marketing Board. It main
motive was to implement the Operation Flood programme started by the National Dairy
Development Board (NDDB) in Kerala.
The project impact was so widespread that close to about 83 % of the adult cattle of
the state got converted to the new breed – Sunandini-, the milk production increased by
over ten times and the per capita availability of milk increased by over 7 times with over a
million families dependent on milk production. The project has succeeded in integrating
better technology and management to the traditional small holder production system. It
also demonstrated how the high productive, semi stall fed cows led to a spontaneous
decline in the total bovine population of the state from 34.6 lakh in 1977 to 21.86 lakh in
2003 when the total bovine population of India went through an upsurge. This contributed
immensely to environmental sustainability. By demonstrating a growth model for
productivity enhancement,the project not only impacted the million small livestock holders
in Kerala, but also millions outside the state
The project demonstrated revolutionary institutional changes beginning with the
Indo Swiss project of Kerala, an autonomous institution under the govt. of Kerala to the
Livestock Development and Milk Marketing Board and then to the present autonomous
company - the Kerala Livestock Development Board, with the formidable dairy
cooperative system under the Kerala Cooperative Milk Marketing Federation (MILMA),
under the able guidance of its first managing director S. Nagarajan IAS, spun off as

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successful an independent entity.

Kerala's milk demand / consumption per day is 10.90 Lakhs liters, whereas total
production in Kerala amounts to 7.80 Lakhs liters per day. Thus, Kerala imports round
about 3 Lakhs liters per day of milk from Karnataka, Tamil Nadu and Maharashtra.

c) Prima Feeds: Prima Agro Products Ltd is a Cochin based company. The Company is a
Prima Group Company. The company has identified Ms Jung Won Corporation, Seoul,
South Korea as a collaborator for the expansion project. The company has launched in the
Kerala market its Rich Foods brand of food products. It has entered the capital market in
August 1993 with a public issue of Rs 360 lakhs. It has already launched cattle feed
products in different varieties under the brand name Prima Feed

PERCTAGE OF GDP EARNED:

Livestock plays an important role in Indian economy. About 20.5 million people
depend upon livestock for their livelihood. Livestock contributed 16% to the income of
small farm households as against an average of 14% for all rural households. Livestock
provides livelihood to two-third of rural community. It also provides employment to about
8.8 % of the population in India.

EXPORT POTENTIAL:
Indian feed was exported to the near east during the 1980’s but the export
demand was reduced when feed mills were set up in the near east. At presently, India
exports about 25000 tons of feed to the near east as general animal feed.
• There is no import of animal feed as such in to India. However, the
country does import certain chemicals, feed activities, amino acids and
essentials for aquaculture feed.

Animal Feed is traded all around the world. The data provided on the export
analysis shows that there are almost 117 countries and territories, which actively import
Animal Feed from India. The combined value of total export is 128.13 USD million.
Therefore, if any exporter wishes to export Animal Feed then Connect2India offers a

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complete guide on how to export Animal Feed from India. The following data contains
everything from Animal Feed export analysis to export resources.

The top five countries to export Animal Feed from India

From the perspective of the data on Animal Feed export, India’s top 5 trade
partners who import Animal Feed from Indian exporters are mentioned in the table,
although the total export value of the top 5 countries is 67.55 USD million which is the
52.72% of the total export value of Animal Feed.

Where to export Animal Feed

Export analysis of Animal Feed are represented in the map format. The mapping
presentation will assist Indian exporters of Animal Feed to pick up their target region.
The map clearly shows the regions where Animal Feed is majorly exported

Top countries for Animal Feed export from India

Country Value (USD Million)
Bangladesh 25.69

China,
Hong Kong 12.7
SAR

Nepal 10.68

Norway 9.41

France 9.07

KEY PLAYERS:
Severe competition exist in the cattle feed industry. Most of the
competitors are from Kerala and many of others nearest states. Most of the
people in Kerala and many others southern states of India use cattle feed for
their cows and buffaloes and this makes the competition very tough. In the
cattle feed sector competition is mainly from Govt, sector Company "Kerala
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feed" has set a plant at Kalletumkara. Milk marketing of Kerala (MILMA) is

also a strong competitor of KSE in the dairy division. Govt, is showing high
protectionism towards Milma. KSE Ltd is given permission to procure milk only
from certain area of Thrissur district. Vesta ice cream is another milk product of
KSE Ltd. It has many competitors in the market. So the company may adopt
better strategies to face stiff competition.

The main competitors are as follow:

• Kerala feed- Cattle feed

• Mysore feed-Cattle

• Prima feed-Cattle

• Godrej -Animal feed-Cattle feed

• Milma- milk products

• Amul-milk products

PESTEL ANALYSIS:
Political:

 As per GST Law, there is no GST payable on cattle feed supplement. So the rate of
GST payable on cattle feed supplement is nil rate. The GST Council has broadly
approved the GST rates for goods at nil rate, 5%, 12%, 18% and 28% to be levied
on certain goods.
 Trade of livestock and livestock products are regulated as per the Foreign Trade
Policy of Government of India which is implemented by Department of Commerce.

 The Department of Animal Husbandry and Dairying regulates import livestock and
livestock products in accordance with provision of Section 3 and Section 3A of the
Livestock Importation Act., 1898 so as to prevent ingress of Exotic diseases though
import of such livestock and livestock products.
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 The corruption scheme involved the fabrication of "vast herds of fictitious

livestock" for which fodder, medicines and animal husbandry equipment was
supposedly procured. Although the scandal broke in 1996, the theft had been in
progress, and increased in size, for over two decades.

Economic:

 Under this scheme 3% discount would be given on interest rate for setting up units
of milk / milk products, meat, cattle feed and silage units.

 The market is expected to surge in the country due to the rising food demand,
increasing disposable income, and growth in the dairy sector.

Social:

 Cattle feed is a very important factor in animal agriculture and it contributes to the
majority cost of the raising animals.
 The cattle feed market size was valued at $73.5 billion in 2019, and is projected to
reach $78.3 billion by 2027, growing at a CAGR of 4.4% from 2021 to 2027.
 The cattle feed industry is expanding into the market of feed-acidifiers, feed-
enzymes, feed-antibiotics, and feed-microbial.
 The Indian Government has ordered partial closure of its international ports
promoting further disruptions in the animal feed supply chain.

Technological:

 The accumulated use of technology in the beef industry has improved cattle and
enterprise efficiency and has decreased the resource inputs of feed and land.
Important technologies that have been adopted include antibiotics, implants,
ionophores, parasiticides, genetics, vaccines, physiological modifiers, and nutrition.
 water management sensors and app-driven weather stations. soil moisture sensors
and satellite-driven pasture management, crop health systems. livestock
management smart tags, BeefSpecs camera, cattle tracking collars and electric
fence monitors. farm management dashboards and ROI calculators.

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 Making best use of these facilities, studies have been undertaken on soil-plant-
animal relationship, roughage utilization and improvement, rumen ecosystem and
feed technology.

Legal:

 Legislation applies from primary production to placing animal feed on the market
and feeding of food producing animals.
 This Act provides rules for animal feed and feed processing, feed business
operators and control in all stages of production, processing and distribution chain,
from primary production of feed until the placing on the market and use of feed.
 The Act, among other things, provides for quality control of animal feed.
 The role of animal feed in the production of safe food is recognized worldwide, and
several critical incidents have underlined its impact on public and animal health,
feed and food trade, and food security.
 The provision of Section 3 and Section 3A of the Livestock Importation Act., 1898
so as to prevent ingress of Exotic diseases though import of such livestock and
livestock products.
 A Sanitary Import Permit is not a licence, but a certificate certifying India's sanitary
requirements.

Porter's Five Forces Analysis:

The Porter's five forces model is an analysis of the structure of the industry should
be undertaken in order to find effective sources of competitive advantage. Therefore, in
ordertoanalyze the competitive environment of KSE, Porter's five forces analysis has been
us

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Threat of
new
enntrants

Rivalry
Bargaini
among Bargaini
ng power
competin ng power
of
gfirm in of buyers
suppliers
industry

Threat of
substitute
products

Fig No.2.1 Porter Five Force Model for Industry Analysis

1. Threat of new entrants:
The threat of new entrants is moderate mainly because of the
1. It would be very difficult for a new company to enter this industry because they
would not be able to compete with the established brand names,distribution channels, and
high capital investment.
2. Need of high end and sophisticated technology requirements is pausing the entry
of new players.
3. The new companies who are entering are Active Kerala feeds, Milmaete
2. Bargaining power of buyers:
The buyers in India have variety of choice. There are more than 6 cattle feed
producing companies in India. So, the bargaining power of buyers is more because they
have lot many choices available to purchase cattle feed.
1. They can switch from one company to other since the switching cost is very
low because the cost of cattle feed is almost same in every company.
2. Since the buyers of cattle feed purchase in bulk quantities the buyers has the
power to bargain over the price of cattle feed.
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3. Bargaining power ofsuppliers:

The supplier population in this industry has low to moderate bargaining power due
to the following matters:
1. Bargaining power of supplier depends on famers availability. When the demand
for farmers is more suppliers will drive the bargaining power.
2. The switching cost is also very low. It's not going to cost much for the industry to
shift from one supplier to another and this is one big threat for the supplier and other
reason is there is lots of supplier.

4. Threat of substitute Products:

There is not much substitute in this case. Customers view the substitute based on
the cattle feed industry as extremely satisfactory in terms of quality, comfort and
convenience

5. Rivalry Among Existing Competitors:

Companies are able to maintain a competitive advantage with innovation due to the
large.
amount of technology that goes into the products and services. Obtaining that competitive
advantage is a key factor. Economies of scale can play a huge role in success as well as the
market can also be price sensitive. Due to the fact that the cost of raw materials can
sometimes be volatile, the company must plan ahead in order to remain efficient as extra
expenses can only be made up by passing the burden to their customer.
Major cattle feed industries are Milma, kerala feeds, etc.

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