BIO-BASED ECONOMY

General fermented animal feed from agricultural waste for cattle breeders

General fermented animal feed from agricultural waste for cattle breeders

Market

Final Products Fermented animal feed
Required Inputs Agricultural waste, molasses, and other additives 
Competing Products

Medium competition
Traditional fodder and processed animal feed 

Potential for Export Medium

Process

Complexity – Type of Process Simple – mechanical process
Technology Shredding, additives, anaerobic fermentation, packing and sealing 
Equipment and Material Horizontal silos, small vertical cylindrical silos, sealed plastic bags, plastic film wrapping, and plastic drums
Human Resources Technicians and biochemists             

Business Linkage

Forward Linkage Animal breeders
Local/Regional/Nationwide Local Market - Upper Egypt Region
Backward Linkage Farmers and sugar factories for molasses
Supporting Entities Waste contractors, testing facilities, and packaging material suppliers
Competitive Edge
High-quality and nutritional animal feed at lower price

Economic Features

Revenue Stream Sales of fermented animal feed
CAPEX Consists of the cost of machinery with an average of 1.1M EGP
Investment Size Small (between 500k-5M EGP)

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

Considerations

Key Challenge Farmers’ commitment to selling their agricultural waste, seasonality of agricultural waste, absence of designated recycling areas, and cash flow management
Advantages Simple technology with a positive impact on the waste management sector by utilizing agricultural waste
Potential Pathways to Growth Production, sales, and/or distribution of animal feed with higher nutritional value (e.g., using richer protein sources) and/or protein 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 for unskilled labor

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)
Agricultural waste
Impact 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