THA
ANKS Back to Annexure
Moderator/Coordinator: 1. Dr. O. P. Chaudhary, IFoS, Joint Husbandry and Dairying Panelists: 1. Shri Suresh Deora, Chairman, CLF 2. Shri Anoop Kalra, Director, Ayurvet 3. Shri Dinesh T Bhosale, Commercia National Seminar o SESSIO IMPROVEMENT IN D MARKETING AS
t Secretary, Department of Animal MA t Ltd. al Director, AB Vista on Maize & Ethanol ON III: DDGS QUALITY AND S ANIMAL FEED Back to Annexure
Present Demand Analysis of Solubles in Million Tons India: Animal Feed Market Forecast: Produ 60 40 40.3 42.5 45.0 20 0 2021 2022 2023 Source: IMARC DDGS is a valuable source of protein and energy in an increasingly used as an alternative to other ingr Market expansion driven by the increasing demand for livestock feed, particularly from the poultry in Increased earnings and the development of the meat products demand has increased and expe DDGS is a good protein and fibre source for cattle, fish
f Distillers Dried Grains with s (DDGS) uction Volume (in Million Tons), 2021-2026 47.8 51.0 54.6 2024 2025 2026 nimal feed. redients like maize and soybean meal. ndustry. urban population ected to grow in future h, and poultry. Back to Annexure
DDGS in layer diets is an excellent partia inorganic phosphate and supports exce DDGS could be added to the diet of layin 30% of the total dietary protein, without s It does not affect egg production or Demand for soybean, maize and othe increasing causing a sharp price increas DDGS has ample opportunity as an alt both on nutrition and cost basis. With Increased Ethanol Production from G added benefit. With Increasing Demand for food , DDGS this segment Present Demand
l replacement for corn, soybean meal and llent layer performance and egg quality. ng hens at 10 to 20%, accounting for about ynthetic lysine supplementation. egg weight. er grains in the global market is ever se. ernative grain resource in feed industries Grain and Maize, DDGS availability will be an S will have an opportunity to participate in Analysis of DDGS Back to Annexure
The maize DDGS an excellent feed ingredient for use in layer, contains approximately 85% of the energy v moderate levels of protein and essential am Maize DDGS also has a higher digestibility, w Additionally, maize DDGS is higher in some DDGS. The high energy level of DDGS is derived pre cause any risk of developing acidosis. Rice DDGS has lower levels of fat, and fiber than maize However, rice DDGS contains more starch ruminants such as cattle. Overall, maize DDGS is higher in fiber and fat a However, both are high energy, protein-rich fe livestock, poultry, and aquaculture species. Comparative Analysis Maize
broiler, duck and turkey diets value in corn, mino acids, and is high in available phosphorus. which makes it more easily digested by livestock. e essential amino acids, such as lysine, than rice edominantly from fiber and fat and does not DDGS. h than maize DDGS, making it more suitable for and has a higher lysine content than rice DDGS. eeds and can be used as a nutritious feed for s of DDGS Quality from &Rice Back to Annexure
The primary market for DDGS is the poultry and used as a feed supplement for both indust more cost-effective feed source. Alternative to costly traditional animal feed DDGS is also increasingly being used in dai DDGS producers should focus on developing e customers such as Creating a website, running promotional ca Participating in regional and international t Promotional campaigns to increase aware Partner with feed producers in India to pro feed products. DDGS Pricing in India is largely influenced by g Prices of DDGS are determined by the demand and supply of DDGS in India, as w market. Prices of DDGS in India have been volatile d Economics of D
d livestock industry try. d sources like corn and soybean meals. ry, aquaculture, and swine feed. effective marketing strategies to reach potential ampaigns, and using social media platforms. trade shows to showcase their products. ness about the benefits of corn DDGS. ovide corn DDGS as an ingredient in their animal global market conditions. prices of maize and other feed ingredients, the well as the demand-supply dynamics in the global due to the fluctuating global market conditions. DDGS Marketing Back to Annexure
INDIAN ANIMAL FEED MARKET Back to Annexure
India: Animal Feed Market Trend: Production Volume (in Million Tons), 2015-2020 India: Animal Productio 31.5 31.4 34.2 38.7 43.3 38.7 50 45 40 35 30 25 20 15 10 5 in 0 Million Tons The Indian animal feed reached a production volume of 3 2015-2020. Market Trends indicate a production volume of 54.6 Million T Boosted by growth in the poultry business and rising per c areas and is increasingly in rural areas as well. Additionally, milk producers are now switching from con feed realizing the benefits in terms of yield enhancement, w 2015 2016 2017 2018 2019 2020 Source: IMARC
Feed Market: on Volume India: Animal Feed Market Forecast: Production Volume (in Million Tons), 2021-2026 40.3 42.5 45.0 47.8 51.0 54.6 50 40 30 20 10 0 60 2021 2022 2023 2024 2025 2026 in Million Tons 38.7 Million Tons in 2020, growing at a CAGR of 4.2% during Tons by 2026, exhibiting a CAGR of 6.3% during 2021-2026. capita chicken consumption, which is already high in urban nventional feed to more nutritionally balanced compound which has also sparked a boom in market demand. Back to Annexure
Indian Animal Feed Mar Breakup India: Animal Feed Market: Breakup by Type (%), 2020 27.7% 6.3% 66.0% Poultry Rumina Aqua Fe
rket: Production Volume p by Type ant Feed eed Animal Feed Industry: By Type In 2020, poultry feed accounted for the share of 66.0% in total animal feed production of India. Poultry feed was followed by ruminant feed (27.7%) and aqua feed (6.3%). Primary Drivers being frowing consumption off Poultry and Milk products Ruminant feed has associated benefits such as enhanced animal health, improved meat quality, and milk production. The driving demand for milk and milk products provides a lucrative opportunity for ruminant feed manufacturers in India. Back to Annexure
India: Poultry Feed Market Trend: Production Volume (in Million Tons), 2015-2020 Indian Poultry Productio 20.0 20.3 21.3 24.9 26.8 25.9 30 25 20 15 10 5 0 in Million Tons Production volume of 38.7 Million Tons in 2020, growing at In future expected production volume of 54.6 Millio The Indian poultry industry is in transition, becoming m mitigating the feed price volatility. Propelling the market growth of poultry feed. Poultry feed demand has been increasing consiste as broiler meat and surging demand for compound 2015 2016 2017 2018 2019 2020 Source: IMARC
y Feed Market: on Volume India: Poultry Feed Market Forecast: Production Volume (in Million Tons), 2021-2026 28.7 30.7 32.4 34.0 35.8 40 37.8 35 30 25 20 15 10 5 0 2021 2022 2023 2024 2025 2026 in Million Tons a CAGR of 4.2% during 2015-2020. n Tons by 2026, exhibiting a CAGR of 6.3% during 2021-2026. more integrated and consolidated in its structure, which is ently over the last five years: demand of poultry meats such d poultry feed. Back to Annexure
Emerging R In the evolvin
ole of DDGS g Feed Sector Back to Annexure
Process Flow Diagram for Proc Milling Liquefaction DDG Drying Evaporation Centrifu DDGS syru p Wet Dist Grains Thin Stillage Steam Enz Corn Condensate
Typical Dry-grind Ethanol cess Saccharificatio n Fermentation ugation Distillation Rectification / Dehydration Ethanol Storage tillers Steam Whole Stillage Yeast CO2 Enzyme zyme Back to Annexure
Sector-wise Pe Broiler L Maize 55 to 60 30 Jowar 10 to 20 20 Broken Rice 10 to 20 20 Bajra 10 to 20 20 Soybean Meal 20 to 30 10 DDGS 0 to 5 0 Fish Meal 0 to 5 0 Meat and Bone Meal 0 to 5 0 Mustard Meal 0 to 5 0 Groundnut Meal 0 to 5 0 Sunflower Meal 0 to 5 0 Deoiled Ricebran 0 0 Rice Polish 0 to 5 0 Driven by Ma
ercent of Usage Layer Cattle Fish Shrimp 0 to 60 0 to 20 0 to 10 0 0 to 30 0 to 10 0 0 0 to 40 0 to 20 0 0 0 to 30 0 to 10 0 0 0 to 20 0 0 to 30 0 to 10 0 to 10 0 to 15 0 to 5 0 0 to 5 0 0 to 30 0 to 50 0 to 5 0 0 to 5 0 0 to 5 0 to 20 0 to 10 0 to 10 0 to 5 0 to 20 0 to 10 0 0 to 5 0 to 20 0 to 10 0 0 to 10 40 to 60 0 to 40 0 0 to 5 0 to 10 0 0 aize and Soya Back to Annexure
How are key raw ma Maize Purchase From Traders on b aflatoxin & Moisture Transportation Trucks Quality Check At Plant Gat Credit Period 10-40 Days Integrators Through FPOs , Som own collection c DDGS – is currently sold through t Opportunity to sell dir
aterials purchased? Soyabean meal basis of e Content Directly from Plants. Sometimes through Traders. Trucks & Rakes te At Plant Gate s 30 days + me have entres raders like all other ingredients . rectly to Feed Millers Back to Annexure
Feedback from Stakeholder • Variation in product quality is very high. • Moisture variation. Normally feed millers rej • Perceived shelf life of DDGS is low. They buy • DDGS price should be • As per production cost and not as per soyb • Education about shadow pricing is needed • Composition • Energy content - 2900 to 3200 kcal/ kg. • Protein content - 28 to 44%. • Amino acid values are outliers in NIR testing • Color also varies. • Dark color means over processing means m due to mallards reaction. • DDGS use is around 3-5% in broiler feeds. DDGS • Mycotoxin content is main constraint. It’s painfu • All tests needs to be done prior to use of DD
rs ( Over 20 + interviewed ) ject product over 13-14% moisture. y and use it. bean meal pricing. d. g. mallards reaction. Lysine availability will be less S use is around 3-7% in layer feeds. ul ingredient to use due to inconsistent quality. DGS. Back to Annexure
Key Cha • Lack Of knowledge amongst Users. • Lack of consistency in Product Qualit • Colour • Moisture • Consistency • Mycotoxins level • No Standards • Pricing will depend on soybean mea
allenges ty al price and also on product quality. Back to Annexure
DDGS Production and Volume In Tones 2022/2 Cattle Volume 130 DDGS % 2.30 DDGS 2.99 Broiler Volume 140 DDGS % 1.07 DDGS 1.50 Layer Volume 125 DDGS % 1.41 DDGS 1.76 Total DDGS 6.25 Expected DDGS Production 6.26 % of DDGS Production 99.80 Critical to aim as percentage of form nutritionists - work
d Demand Projection Quantity in Lakh MT 23 2023/24 2024/25 2025/26 2026/27 145 161 179 199 3.00 4.00 4.00 5.00 4.34 6.44 7.17 9.97 149 159 169 180 1.40 2.00 2.50 3.00 2.10 3.18 4.23 5.40 133 142 151 161 2.90 3.50 4.00 4.50 3.86 4.96 6.04 7.24 10.30 14.58 17.44 22.61 10.30 14.77 16.25 17.87 0 100.0 98.7 107 126.5 mulation. Get the formula fixed with ahead of the curve Back to Annexure
Cr DD an in Ch Product Improvement Product Formulati for each Feed Sector THE ROA
reate DGS as nput of hoice ion Customer Education BIS Standards AD MAP BIS is working on standards. AIDA to assist and work Back to Annexure
The Task • With support from CLFMA, In Husbandry, AIDA needs to work w • Build consistency in product and moisture. • BIS to get standards in place f • Conduct an outreach progra millers on the benefits of DDGS • Soybean Meal was established a time. DDGS may also take some • DDGS manufacturers and AIDA addressing the challenge head them.
k Ahead ndia & Department of Animal with its members to t quality and control mycotoxins for ingredients/packing etc. amme with nutritionists and feed S. as protein source over a period of time. A should focus immediately on on and work immediately on the Back to Annexure
Moderators/Coordinators: 1. Shri Subodh K Singh, IAS, Additiona 2. Shri Sunil Kumar, IRAS, Joint Secreta Panelists: 1. Shri P S Ravi, ED, BPCL 2. Shri Sridhar Goud, ED, HPCL 3. Shri Sanjay Parashar, ED, IOCL 4. Shri Pravin Gupta, Director, Balram 5. Shri Shekhar Swarup, VP, AIDA National Seminar o SESSIO COSTING AND PRICING O
al Secretary, DFPD ary, MoPNG pur Chini Mills Ltd. on Maize & Ethanol ON IV: OF ETHANOL FROM MAIZE Back to Annexure
OBJEC Promote production of Etha intensive crop compared to S Encouraging cultivation of Ma Maize as viable and preferred Creation of required wareho the year availability of Maiz distilleries
CTIVES anol from Maize, a less water Sugarcane and Rice aize for production of ethanol d feedstock for ethanol plants ousing facilities to ensure round ze for production of Ethanol to Back to Annexure
ANNUAL MAIZE REQUIREMEN ETHANOL PLA 20 Dedicated Ethanol Plants having Cr. ltr have committed to supply et 84 Dedicated Ethanol Plants havin 519 Cr. ltr have committed to supp feedstock. Approx. 9 MMT of Maize is estimate Dedicated Ethanol Plants (consid plants using both rice and maize)
NT OF UPCOMING DEDICATED ANTS (DEPS) g an annual production capacity of 74 hanol exclusively from Maize. ng an annual production capacity of ply ethanol using Maize or Rice as a ed per annum by these upcoming 104 ering 50% ethanol from maize from Back to Annexure
Suggestions - Increasing Catchment Area Model Similar to sugarcane catchment area mo Maize Catchment Area is to be attached t Grain Distilleries will procure maize at MSP Benefits It will reduce cost of maize to distillerie trader margins, additional transportation Farmers will get assured price of Maize i:e Constant availability of maize to Ethanol d Grain Based Maize Catchment Area Payment to Farmers at MSP Production Supply to Distilleries Catchment Area in the radius of 2 Km to 12 Km is required basis the capacity of Grain Distilleries
g Use of Maize for Ethanol del, Maize catchment area can also be defined to grain based Ethanol distillers P from catchment area s as various in-between cost i:e mandi taxes, cost etc. will not be applicable MSP distillers d Distilleries • To Promote catchment area model, OMCs may explore to incentivize the distilleries attached to catchment area • Ethanol Price from maize = X+ Delta • Where X = Ethanol Price from Maize • Delta = additional incentive to those suppliers who have agreement with farmers or state govt. for the catchment area for supply of Maize. Back to Annexure
Dedicated Maize Production Pla State ANDHRA PR ASSAM BIHAR CHHATISGA DELHI NCT GUJARAT H.PRADESH HARYANA JHARKHAND KARNATAKA MADHYA PR MAHARASH MEGHALAYA ODISHA PUNJAB & U CHANDIGA RAJASTHAN TELANGANA UTTARAKHA WEST BENG Grand Tota 9.74 83.73 Maize Catchment Area Req. in Lakh Ha Maize Cultivation Area available (Lakh Ha)
Catchment Area for Ethanol nts e No of Maize Based DEPs (Existing +Upcoming) Total Capacity (Cr. Lit/Annum) Maize requirement (MT/Annum ) Catchment Area Required (Lakh Ha) Maize Cultivation Area available (Lakh Ha) RADESH 2 12 151974 0.17 3.01 6 35 455921 0.51 0.00 16 74 1623947 1.80 6.73 ARH 5 26 336579 0.37 1.30 5 45 594868 0.66 0.00 4 22 289145 0.32 4.38 3 18 242763 0.27 2.87 7 42 551974 0.61 0.06 D 5 44 576316 0.64 2.57 A 1 6 156579 0.17 15.00 RADESH 19 85 1209828 1.34 15.37 HTRA 5 20 382237 0.42 11.27 A 1 3 43421 0.05 0.18 6 32 420526 0.47 0.65 UT of RH 4 29 384276 0.43 1.15 N 1 3 43421 0.05 8.91 A 4 28 374342 0.42 6.43 AND 3 12 156316 0.17 0.22 GAL 7 56 772895 0.86 3.62 al 104 593 8767328 9.74 83.73 Back to Annexure
PRICING PRINCIPLES – Cost Plus basis for ethanol from Maize. Most recent MSP(minimum support price) Maize is taken at the start of ESY. Cost of Maize based on yield of ethanol considered. Other elements taken are : Conversion cost, Cost of Steam & Power, Co of Pollution Control Cost of Capital, Depreciation Revenue Setoff on a/c of DDGS is considered. Net price payable to Ethanol distillery is arrive at (excl GST & Transportation).
ETHANOL FROM MAIZE of is st ed 63% 6% 17% 14% Feedstock Cost Cost of Capital Conversion Cost By-Product Cost Back to Annexure