DAF 08b - Sadru Dada - Feed Mill Design - ASP Products, Investments, Operating Costs, Yields, and...

Trends and Markets in Aquaculture Feed Ingredients, Nutrition, Formulation and Optimized Feed

Production and Quality Management

Aquafeed Platform Eastern Europe, CIS, Middle East, Africa and India

Feed Mill Design – ASP Products, Investments, Operating Costs, Yields and Quality

Mr. Sadru DadaInternational Agribusiness Technical Consulant,

1101 Al Manarah Tower, Buhairah Corniche, Sharjah, [email protected] 971 6 556 7940

Trends and Markets in Aquaculture Feed Ingredients, Nutrition, Formulation and Optimized Feed Production and Quality

Management.

The following slides are curtesy of Daniel Chajuss of Hayes General Technology Company Limited.

Industrial Soy Protein Ingredients for the Food and Feed Industry

• Full fat, defatted, re‐fatted soy flours and/or texturized soy flour

• Soy protein concentrates (SPC) current production is over 1million MT/year and growing at 15% per year. Replacement for fishmeal.

• Soy protein isolates

Products Costs Results Summary

Soy Protein Concentrates (SPC)

• Aqueous alcohol washed traditional concentrates approximately I million MT/year

• Acid washed concentrate approximately 10,000 MT/year

• Hot water washed concentrate using enzymes. None currently produced


Technological Advantages of Aqueous Alcohol Washed SPC

• Cost effective, functional, nutritive and adaptable ingredient can be texturized into quality analogs, meat extenders and alternatives

• Convertible into very bland, highly functional soy protein isolate‐like products

• Excellent substitute for fish meal to produce aqua feeds


Benefits of Traditional SPC in Aquafeeds• The crude protein level of SPC can be similar to fishmeal

(65% protein)• The high protein level of SPC makes it suitable for

nutrient dense aqua feeds for marine fish and marine shrimp

• SPC has amino acid profile similar to fishmeal• SPC has much lower levels of ANF’s than soybean meal.

The soy antigens are denatured during the manufacturing of SPC which is essential for salmon and trout.

• Indigestible and harmful carbohydrates are extracted during SPC processing

• Stable for storage.


Soy Molasses is a brown viscous syrup with a bitter sweet flavor,it is a concentrated, desolventized, aqueous alcohol extract of defatted soybean flakes.

Approximately 250,000 tons of soy molasses are produced annually worldwide.

Potential Usages of Soy Molasses• Liquid feed for dairy cattle • Source of Isoflavones and other pharmaceuticals• Food additives• Source of sugars for fermentation• Add back to hulls for cattle feed• Boiler feed for heat recovery



Soy Protein Concentrate Study

Modeling of Soybeans

Low Pro Meal Hi Pro Meal

Chemical Bean Moisture Loss Bean Moisture Loss Hulls Off Bean Moisture

Hulls Oil Off 100% Bean Moisture Hulls Oil Dehull 0% Bean

Moisture Oil Dehull 75% Bean Moisture Hulls Oil Dehull

Analysis KG. KG. KG. KG. % KG. KG. KG. % KG. % KG. %

Moisture 12.00 2.50 9.50 0.80 10.00 8.70 0.00 8.70 12.25 9.50 12.03 8.90 12.19

Fiber 5.00 0.00 5.00 3.20 40.00 1.80 0.00 1.80 2.54 5.00 6.33 2.60 3.56

Protein 36.00 0.00 36.00 0.80 10.00 35.20 0.00 35.20 49.58 36.00 45.57 35.40 48.49

Oil 19.50 0.00 19.50 0.08 1.00 19.42 18.50 0.92 1.30 1.00 1.27 0.94 1.29

Ash/Minerals 5.00 0.00 5.00 0.32 4.00 4.68 0.00 4.68 6.59 5.00 6.33 4.76 6.52

Carbs/Sugars 22.50 0.00 22.50 2.80 35.00 19.70 0.00 19.70 27.75 22.50 28.48 20.40 27.95

Totals 100 2.5 97.5 8.0 100 89.5 18.5 71.0 100 79.0 100 73.0 100



Quality & Yields

Parameters Soybeans Hi Pro Soy SPC Soy Molasses SM BRIX

Moisture 12.0 12.0 8.0 21.5 0.0

Protein 36.0 48.0 65.0 12.5 16.0

Oil 19.5 1.0 1.0 2.0 2.4

Fiber 5.0 3.5 4.0 2.5 3.3

Ash/Minerals 5.0 6.5 6.0 7.5 9.7

Carbs/Sugars 22.5 29.0 16.0 54.0 68.6

Total 100.0 100.0 100.0 100.0 100.0

Yield from SB 100.0 73.0 50.0 23.0 18.0



Mass Balance from High Protein Meal

To SPC, SM and SMBRIX

Hi Pro Meal SPC SPC SM SM SMBRIX SMBRIX

KG. % KG. % KG. % KG. %

Moisture 8.90 12.19 4.00 8.00 4.90 21.30 0.00 0.00

Fiber 2.60 3.56 2.00 4.00 0.60 2.61 0.60 3.31

Protein 35.40 48.49 32.50 65.00 2.90 12.61 2.90 16.02

Oil 0.94 1.29 0.50 1.00 0.44 1.91 0.44 2.43

Ash/Minerals 4.76 6.52 3.00 6.00 1.76 7.65 1.76 9.72

Carbs/Sugars 20.40 27.95 8.00 16.00 12.40 53.91 12.40 68.51

TOTALS 73.00 100.00 50.00 100.00 23.00 100.00 18.10 100.00



Gross and Net Margins for Production of Soy Protein Concentrate (SPC) and Soy Molasses (SM) from High Protein Soybean Meal (SBM)

Product Yield Price/Ton Value/Ton

SPC 68% $750 $510

SM 30% $100 $30

Shrink 2% $0 $0

Total 100% N/A $540

SBM 100% $350 $350

Gross Margins N/A N/A $190

Production Cost N/A N/A $50

Net Margin N/A N/A $140

Net Profit $18,740,400


Consumptions Category MT/Day Energy & Chemical Costs Costs

Steam Kg/T Variable 2200

Natural Gas MCF/T Variable 6 Natural Gas $4.50/MCF

Electricity KWH/T Variable 215 Electricity $0.045/KWH

Ethanol gal/T Variable 2.50 Ethanol $2.00/gal

Make‐up Fresh Water gal/T Variable 50 Fresh Water $0.5/1000 gal

Cooling Water M3/T Variable 110 Wastewater Disposal $2.0/1000 gal

Operation MT/Day

Daily Capacity, Hi Pro SBM 400

Annual Capacity, MT 133,860

Operating Days 345

Efficiency 97%

SPC Study Assumptions


Headcount Category MT/Day Education

Production Semi Variable 4 Technical School

Receiving Semi Variable 0 Technical School

Shipping Semi Variable 2 Technical School

Housekeeping Semi Variable 0 High School

Supervisors Fixed 0 Technical School

QC/QA Fixed 1 University Degree

Maintenance Semi Variable 1 Technical School

Electricians & Automation Fixed 0 Technical School

Plant Engineer Fixed 0 University Degree

Production Manager Fixed 0 University Degree

Merchandising/Selling Fixed 1 University Degree

G&A Fixed 1 University Degree

Total 10

Nominal Investment $(000) 30,000

Nominal Depreciation $(000) 1,500

SPC Operating Costs


SPC Operating Costs ContinuedVariable Costs

Type Amount $/Ton Headcount Salary Total Benefits (25%) CommentsBoiler Fuel $3,614,220 $27.00 $4.50/MCFDryerl Fuel $0 $0 Only 50% of Crush is DriedElectricity $1,295,096 $9.68 4.5C/KWHEthanol $669,300 $5.00 $2.00/gal

Fresh Water $3,347 $0.03 $.50/1000 galWaste Water $0 $0 $2/1000 galChemicals $13,386 $0.10 ‐Sub Total $5,595,348 $41.80

Semi‐Variable CostsProduction Labor $0 $0 4 $35,000 $140,000 $35,000Maintenance Labor $0 $0 1 $40,000 $40,000 $10,000

RECE. LABOR $0 $0 0 $35,000 $0 $0Shipping Labor $0 $0 2 $30,000 $60,000 $15,000House Labor $0 $0 0 $30,000 $0 $0

Electricians & Automation $0 $0 0 $40,000 $0 $0Major Maintenance $33,465 $0.25 ‐ ‐ ‐ ‐Regular Maintenance $66,930 $0.50 ‐ ‐ ‐ ‐

Suppplies $50,000 $0.37 ‐ ‐ ‐ ‐Sub Total $150,395 $1.12 7 $240,000 $60,000

Fixed CostsSuper. Labor $0 $0 0 $50,000 $0 $0Plant Engineer $0 $0 0 $75,000 $0 $0

Production Manager $0 $0 0 $80,000 $0 $0QC/QA $0 $0 1 $30,000 $30,000 $7,500

Insurance $180,000 $1.34 ‐ ‐ ‐ ‐ 0.5% of capexProperty Taxes $90,000 $0.67 ‐ ‐ ‐ ‐ 0.25% of capexPermits & Fees $25,000 $0.19 ‐ ‐ ‐ ‐

Sub Total $295,000 $2.20 1 $30,000 $7,500Market Labor $0 $0 1 $60,000 $60,000 $15,000 Marketing/SalesG&A Labor $0 $0 1 $60,000 $60,000 $15,000 AccountingG&A Other $25,000 $0.19 ‐ ‐ ‐ ‐Sub Total $25,000 $ 0.19 $120,000 $30,000Total $6,065,743 $ 45.31 0 $390,000 $97,500

Depreciation $1,500,000 $11.21 $487,500


System Description Factor Item Cost System Cost Area Cost Comments1 SPC $29,812

SPC Building 44,000 sq. ft. (100'x110'x3fl) 75 $2,475 $2,475 Addition to Extraction BuildingProcess equipment ‐ Crown $15,400 $15,775 From correspondence with Crown, budget figureMaterial Handling Equipment $375 Allowance for conveyors to from SPCMech. Inst. (% of equip cost) 0.6 $9,465 $11,437Elec. Inst. (% of equip cost) 0.125 $1,972Extraction MCC Addition $75 $125 Additional MCC sections in extraction elec. Rm.

Extraction PLC Controls Addition $50 Additional PLC control hardware & programming2 SPC Storage & Handling $1,428

SPC Packaging & Warehouse 10,000 sq. ft. (80'x100'x1.25fl) 75 $750 $750Packaging Equipment $150 $225 Filling of 2000 lb bulk bags

Packaging Pollution Control Eq. $75Mech. Inst. (% of equip cost) 0.6 $135 $163Elec. Inst. (% of equip cost) 0.125 $28

Pipe & Conveyor Bridge (400') 250 $100 $210 400 LF of Bridge between SPC and WarehouseMechanical Intallation $60

Piping Insulation $20Electrical Instllation $30MCC / Electric Room $80 $80

3 Engineering, Procurement & Contruction $2,031Overhead cost for EPC 5.5% of Project Costs 5.3% $1,640 $1,640 Range 5‐7% used 5.25% for budget

Bonding Cost 1.5% of Project Costs 1.3% $391 $391 Range 1‐3% used 1.25% for budget4 Equipment Spare Parts $800

Subtotal Equipment costs $16,000 5% $800 $800 Percentage of equipment costs for spares5 Equipment Shipping Costs $800

Subtotal Equipment costs $16,000 5% $800 $800 Percentage of equipment costs for shipping estimate6 Capital Cost Estimate $34,871

7 Contingency Range $5,111Project Cost Sub‐Total $34,071 15% $5,111 $5,111 Percentage Contingency

8 Total Capital Cost Estimate Range Contingency Factor 15% High $39,981Low $29,760

Detailed Preliminary Investment Estimate

Soy Protein Concentrate 3D Plant Model


Courtesy of CROWN IRON WORKS


Aquaculture Production and Forecast

• Total Marine and Aquaculture Production = 150 million T

• 52% is Marine, 48% is Aquaculture.

• Fish consumption is 20 kg per capita.

• Annual growth rate is 7.5%


Aqua feeds Production and Forecast• Total Aqua feeds production is about 30 million T.• The top 5 Countries for Production are China, Vietnam,

Indonesia, Norway and Thailand.• Chine= 16 million T, Vietnam= 3 million T, Indonesia= 2 million

T, Norway= 1 million T and Thailand= 1 million T.• Feed is 50% of the variable costs.• Floating Feeds = Tilapia, Catfish and Carp.• Slow Sinking = Trout, Salmon and Cod.• Fast Sinking = Sea Bass, Sea Bream and Shrimp.• Size of feed varies from 0.5 mm to 60 mm.


SPC Production and Forecast• 2015 Production = 1 million T• 2020 Production = 6 million T• 2015 SPC for Human = 60%, Animal = 40%• 2020 SPC for Human = 30%, Animal = 70%• 50% Fishmeal demand for Aquafeeds can be

substituted by SPC.• Current demand for SPC in Aquafeeds is 150,000

T. By 2020 Aquafeed SPC is expected to expand dramatically to 3 million T.

• The greatest opportunity for substitution of Soy Protein is for fishmeal.

DAF 08b - Sadru Dada - Feed Mill Design - ASP Products, Investments, Operating Costs, Yields, and...

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