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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
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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 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
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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 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
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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
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of large 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
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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.
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
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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 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
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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.
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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 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.
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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
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
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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;
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regular 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
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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.
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
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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 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.

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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
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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 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
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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 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

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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 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.

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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 12.7
Kong 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 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
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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.

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 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.

 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.

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 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.
 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.
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 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

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

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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.
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.

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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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