BIO-BASED ECONOMY

Animal feed from sugarcane bagasse for cattle breeders

Animal feed from sugarcane bagasse for cattle breeders

Market

Final Products

Animal feed

Required Inputs

Agri waste e.g., Sugarcane straw and possible additives

Competing Products

Low competition
Traditional fodder and processed animal feed

Potential for Export

Medium

Process

Complexity – Type of Process

Medium – mechanical process

Technology

Shredding, additives, packaging and sealing (anaerobic fermentation)

Equipment and Material

Horizontal silo, small vertical cylindrical silos, plastic bags, plastic film wrapping and plastic drums

Human Resources

Manual labor, mechanical engineers and biochemists

Business Linkage

Forward Linkage

Cattle breeders

Local/Regional/Nationwide

Local market- nationwide

Backward Linkage

Farmers

Supporting Entities

Waste contractors, additives and packaging material suppliers

Competitive Edge

Provides high-nutrient animal feed at lower cost and with tailored specifications compared to importing

Economic Features

Revenue Stream

Sales of animal feed

CAPEX

Consists of the cost of machinery which would cost around 1.1 M EGP

Note: This CAPEX represents the indicative investment size, however, this investment opportunity can start from a micro-scale investment and grow in scale.

Investment Size

Small (between 500k-5M EGP)

Considerations

Key Challenge

Farmers’ commitment to sell their agricultural waste and seasonality of agricultural waste, cash flow management, transportation cost, absence of designated recycling areas on industrial zones

Advantages

Animal feed with high nutritional value and lower cost

Potential Pathways to Growth

Production of animal feed with higher nutritional value (e.g., using richer protein sources), production of feedstock for animal feed factories

General Impact

Environmental

Eco-friendly use of agricultural waste

Social

Lower cost of animal feed for small breeders and creates job opportunities

Impact on Sub-market(s), Cluster(s) and Value Chain(s)

Relevant sub-market

Compost and animal feed

Lies within the following
value chain/cluster(s)

Sugarcane and agricultural waste

Impact

Promotes value-addition to sugarcane waste and enhances the quality of animal feed products

* Source of the information: The above figures were updated by Chemonics Egypt for UNIDO in 2023

Studies

Subscribe to our newsletter to be the first updated about market studies and opportunities