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ON-FARM TRANSFORMATION OF GRAINS INTO POULTRY FEED ADDS VALUE KE

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ON-FARM TRANSFORMATION OF GRAINS INTO
       POULTRY FEED ADDS VALUE
                                         by

 KE Ralivhesa, FK Siebrits & W Van Averbeke

        Tshwane University of Technology, South Africa
                     23 February 2009
Background and Justification

Small-scale commercial broiler enterprises

                                       Contribution
Variable costs            R per bird
                                        to TVC (%)
Chicks                                                   Feed is a major backward
                             R 3.66          17.88
                                                      growth linkage leak (Wynne and
Feed                       R 12.74           66.05              Lyne, 2004)

Heating                      R 1.92           9.38
                                                       Backward growth linkages
Lights                       R 0.34           1.66        (74.7% of cash sale price)

Vaccines and medicines       R 0.70           3.42
Water and Disinfectant       R 0.15           0.73
Wood shavings                R 0.18           0.88
Total variable costs       R 19.69           100.00
                                                      Localised forward growth
Cash sale price            R 26.00                    linkages (mainly restricted to
                                                      retail mark-ups)
Gross margin                 R 6.31                     (24.3% of cash sale price)
2
                             Grain
                           Production



               Broiler
    Broilers
                litter
                                           Grains




Consumers                   Broiler
                          Production            Consumers




Integration of grain and broiler production in a rural village
economy
3
                                How can raw soya beans be
                                transformed into poultry feed
                                using simple on-farm technology?




               Broiler
    Broilers             How do broilers fed on this               Grains
                litter   locally manufactured feed
                         perform?




                                 Broiler
                               Production




Focus of the current research project
4
3. Main objectives of the study:-

 To develop a soya bean and maize grain processing
  procedure for on-farm use under smallholder
  circumstances.

 To determine the biological performance (feed intake,
  growth rate and feed conversion ratio) of broilers fed on the
  on-farm processed diet using the commercial multi-phase
  diet as a benchmark.

 To determine the economic performance (total variable
  cost, gross income and gross margin) of enterprises using
  the on-farm processed diet and the commercial multi-phase
  diet.
5
Part 1: Grain processing procedure




6   Step1: Soaking the soya beans for 24 hour
    Step 2: Boiling soya beans using converted drums and a gas burner
7
    Step 3: Drying the boiled soya beans on a home-made sun drier
8
Stage Drying stage    Bean size      Bean     Touch of            Effect of exerting force on bean             Moisture
  of   designation                  colour      seed                                                           content
drying                                          coat                                                             (%)

                                                         Orthogonal using     Orthogonal       Oblique
                                                         thumb and index      using thumb using thumb
                                                              finger         nail and index   and index
                                                                                  finger        finger
  1   Early          At least      Considera Slippery    First water appears Bean is sliced Seed lobes           >50
                     twice as      bly lighter           and then the bean with ease        slip out of
                     large as      than                  is squashed                        seed coat
                     uncooked      uncooked                                                 with ease
                     grain         grain

  2   Intermediate Visible     Darker        Tacky or    Water no appears     Greater force     Seed lobes      20 - 50
                   reduction   than in       sticky      and more force is    is needed to      no longer
                   compared to stage 1                   needed to squash     slice the bean    slip out of
                   stage 1                               the bean than in     than in stage 1   the seed
                                                         stage 1                                coat

  3   Advanced       Further       Same      No          Bean displays        Slicing the       Seed coat is    10 - 20
                     reduction     colour as longer      elastic resistance   bean requires     firmly
                     and wrinkly   uncooked sticky       to force and can     great force       attached to
                     appearance    grain                 no longer be                           seed lobes
                                                         squashed

  4   Dry            Same size     Same      No          Hard and resistant   Great force       Seed coat is     <10
                     as uncooked   colour as longer      as for uncooked      cracks the        firmly
                     grain but     uncooked sticky       grain                bean              attached to
                     wrinkled      grain                                                        seed lobes
                     appearance



 9    Key to the sensory assessment of the moisture content of cooked soya beans
     Step 4: Processing soya bean with hammer mill

10
     Step 5: Mixing ground soya beans and maize grain with other ingredients
11
 Testing the biological performance of the
 on-farm broiler diet




     Group of chicks fed on commercial     Group of chicks fed on on-farm
     treatment during 1-21 days            treatment during 1-21 days


 Allocation of the day-old Ross broiler chicks to the two diet treatments during the first
 21 days of growth
12
     Allocation of broilers to the two diet treatments from the 22nd day
     of growth onwards
13
RESULTS - Biological performance
Effect of diet on the biological performance of broilers

     Biological performances            Broiler diets      Significance level
            indicators          commecial        On-farm      of treatment
                                                                  effect

                                 Experiment 1
Days of growth until 2300 g
                                    39.8           47.1         p<0.001
body weight
Total feed intake (g bird-1)       4505           5247          p<0.001
Feed conversion ratio               1.99           2.32         p<0.001
                                 Experiment 2
Days of growth until 2300 g
                                    42.4           50.7         p<0.001
body weight
Total feed intake (g bird-1)       4836           5976          p<0.001
Feed conversion ratio               2.14           2.65         p<0.001

14
    Economic performance
   Calculation of cost of feed for on-farm diet
   Ingredients                    Quantity         Unit cost         Cost

                              (kg 100 kg-1 feed)   (R kg-1 )   (R 100 kg-1 feed )

   Monocalcium phosphate            1.75             R 3.78          R 6.61

   Limestone                        2.26             R 0.50          R 1.12

   Lysine                           0.68           R 12.50           R 8.50

   Methionine                       0.33           R 16.80           R 5.54

   Salt                             0.48             R 2.00          R 0.96

   Vitamin & Mineral grower         0.25           R 12.50           R 3.13

   Diesel (ℓ)                       1.00            R 5.95           R 5.95

   Gas (kg)                         1.90           R 11.00          R 20.90

   Maize                            64.25           R 2.00         R 128.50

   Soya beans                       30.00           R 2.00          R 60.00

15 Total                                                           R 241.21
Cost of feed per kg for on-farm and commercial diet

                              On-farm diet        Commercial diet

                                             Starter   Grower   Finisher

Cost per unit feed (R kg-1)      R 2.41      R 3.00    R 2.80   R 2.66




16
Effect of diet on total variable costs, gross income and gross margin of broiler
(at target weight of 2300g)

         Financial indicators                         Broiler diets                         Significance level of
                                                 Commercial     On-farm                       treatment effect

                                                           Experiment 1
     Total Gross income (R bird-1)*                 R 27.23              R 27.21                   p=0.74
     Total variable costs (R bird-1)                R 19.69              R 19.62                   p=0.86
     Total Gross margin (R bird-1)                    R 7.54               R 7.59                  p=0.88


                                                           Experiment 2
     Total Gross income (R bird-1)*                 R 27.23              R 27.21                   p=0.74
     Total variable costs (R bird-1)                R 20.50              R 21.34                   p<0.04
     Total Gross margin (R bird-1)                    R 6.73              R 5.86                   p<0.03

*Total gross income=Sale of live broiler at R26.00 each and poultry manure for R0.74kg -1




17
CONCLUSIONS

 The research and development work that was done in this project
  provided a procedure for the on-farm processing of soya beans and
  maize grain into broiler feed for use under smallholder circumstances.
 Biologically, broilers fed on the on-farm diet did not perform as well as
  broilers fed on a three-phase commercial diet. To reach the target live
  weight of 2300 g, broilers fed on the on-farm diet took about 1 week
  longer than those on the commercial diet and they also had to take in
  about 8 to 10% more feed.
 Economically, use of the on-farm diet had little or no negative effect on
  the gross margin of broiler production because the on-farm diet was
  cheaper per unit mass than the commercial diet.

 The main benefit of using the on-farm diet is the added value to the local
  economy.


18
 CONCLUSION continued…..
 Using commercial feed, the contribution of broiler production arises
  primarily from the retail mark-up(s), which amount to about 20% of the
  monetary value of a broiler. Using on-farm feed, this contribution is raised
  to about 70%.
 Relative to the commercial diet, use of the on-farm diet is expected to
  become increasingly advantageous with degree of remoteness, because of
  the rising cost of transporting purchased feed.




19
Acknowledgement

 Water Research Commission

 National Research Fund

 SANPAD

 TUT

 Dzindi farmers

 Dzindi research team



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