Targeted market

A Urea-Molasses Multi-nutrient Block (UMMB) is a formulated feed supplement designed to provide essential nutrients to livestock, especially ruminants, and is commonly referred to as a multi-nutrient block. It is a solid block produced based on agricultural residue with Crude Protein (CP) content of 12%, 14%, 16%, and 18%. Its lickable format ensures consistent nutrient intake, improving roughage digestion, growth, and overall well-being. UMMB provides energy, non-protein nitrogen, and essential minerals, and can reduce up to 50% of concentrate feed consumption, as up to 30 percent of the total CP requirement can come from the multi-nutrient blocks.

The targeted market is the local Egyptian market, mainly the large-scale farms, aiming to improve animal health and enhance milk production for cows.

Project description

The project aims to produce UMMB by utilizing 15,800 tons per year of agricultural residue and agro-industrial waste, such as tomato cake, olive cake, second-grade dates, sugar beet pulp, molasses, and wheat bran, through mechanical and mixing processes technology.

The facility is recommended to be located close to the areas where collected targeted agricultural residue is available in the Delta in El-Behira, Sharqia, Dakahlia, Kafr El Sheikh, and Gharbia. However, they are also available in El-Minya, Assiut, and Beni Suef. Accordingly, the production location is recommended to be in one of the abovementioned Governorates for ease of accessibility and reduced transportation distances of the raw materials.

Competitive edge

Providing a supplement for ruminants with a high and uniform nutritional value that is less expensive compared to traditional animal feed.

About 65 – 80% of the input material is from agricultural residues and agro-industrial waste.

Minimize the open burning of agricultural waste by utilizing it to produce high-quality products.

Introduction of a new product in the Egyptian market that helps reduce the need for conventional protein supplements, making them cost-effective for smallholder farmers.

Market features

The Market Size was valued at USD 100 billion in 2023 and is expected to reach USD 147.75 billion by 2031, growing at a 5% CAGR from 2024 to 2031.

Total annual amount of the products

UMMB with 12% Protein: 1,457 to 1,822 ton/year

UMMB with 14% Protein: 1,457 to 1,822 ton/year

UMMB with 16% Protein: 4,097 to 5,122 ton/year

UMMB with 18% Protein: 5,153 to 6,442 ton/year

Selling price
(EGP/ton)

The following are the estimated selling prices:

UMMB with 12% Protein: 12,388

UMMB with 14% Protein: 13,268

UMMB with 16% Protein: 13,686

UMMB with 18% Protein: 14,469

Land area required

Building Area: 1885 m2

• Equipment and Industry Area: 283 m2

• Storage Area: 1685 m2

• Administrative Area: 100 m2

Setback Area: 851 m2

Investment

63 million EGP

IRR

49%

Simple payback

4.4 years

Required Input

Agricultural and agro-industrial residues = 15,800 ton per year

The required input includes yellow corn, wheat bran, soybean meal, tomato cake, olive cake, second-grade dates, sugar beet pulp, and molasses.

Additives are included in UMMBs to meet nutritional needs, providing essential calcium, salts, minerals, vitamins, and detoxifiers to help prevent bacterial and fungal infections. The additives quantities are as follows:

• Urea: (178 ton/year)

• Molasses: (2630 ton/year)

• Limestone: (266 ton/year)

• Mineral and vitamin mixture: (61 ton/year)

• Sodium chloride: (114 ton/year)

• Anti-toxic compounds: (15.2 ton/year)

Process/Technology

Mechanical and mixing processes

Equipment

Grinders, mixers, hydraulic press machines, and packaging machines.

Human Resources

Technicians, machine operators, engineers, managers, and drivers

Risks and Mitigation Measures

• Risk of seasonal variability of the waste: the waste streams might be unavailable due to unexpected seasonal variability or limited amounts of waste due to seasonal variability.
  Mitigation: this could be mitigated by stockpiling materials during high-yield periods.

• Risk of spoilage of stored agricultural or agro-industrial waste: the stored rice straws and wheat straws during the off-season could encounter spoilage.
  Mitigation: this could be mitigated through storing the waste in a ventilated room and keeping humidity controlled to maintain quality.

Environmental impact

Prevent open burning of agricultural residues and produce high-value-added products.

Reduce the methane emissions of lactating cows by 20-27% as a consequence of the improved feed digestibility.

Social impact

Provides direct and indirect job opportunities. Raising the standard of living for farmers by getting benefit of agricultural waste.

Location of Supply

The raw materials of the integrated animal feed are available in the Nile Delta Region, mainly in Sharqia, Behira, Dakahlia, Kafr El Sheikh, and Beni Suef (about 29 million tons per year). The production location is recommended to be in one of the mentioned governorates. For ease of accessibility in transportation.