KRITI SOYBEAN MEAL QUALITY – VS. REST

Special Reference to:

SOYA MEAL (Super HyPro Quality)

From:

KRITI SOYA DIVISION – KRITI GROUP

Fuelled by Growth, Driven by technology

www.kritiindia.com

IMPORTANCE OF QUALITY

ECONOMICS

High quality meal gives most nutrients for the money

PERFORMNACE

Supports better growth, better feed efficiency and

better production yields

MORE PROFIT

Better performance generally results in lower cost per

unit of production

BASIC QUALITY

Protein content Higher the better

Fibre content Lower the better

Ash content Lower the better

Moisture content Below 12% ideal

Interpretation of Basic Quality

Protein/Fibre Content:

High protein soybean meal (49.5-50%) protein is the

most economic source of nutrients

The hulls (low in protein/digestibility) are removed

from low protein soybean meal (44-45%)

Additional freight cost is needed for additional weight

on nutrient density basis

Interpretation of Basic Quality

Ash Content:

Ash content higher than 7% signifies higher content of

indigestible sand and silica.

Sand and silica should be within 0.7%

Moisture Content:

Moisture content higher than 12% might pose threat

for mold formation

ADVANCED QUALITY

Heat Processing

Dehulling

ADVANCED QUALITY

Optimum heat processing

Needed for maximum available amino acid

content

Insufficient heating/under processing can’t destroy anti-nutritional factors (trypsin inhibitors,

lectins, others)

Excessive heating / over processing causes

Maillard reaction, where free amino binds with

free carbonyl groups (carbohydrates)

ADVANCED QUALITY contd..

Indicators of optimum heat processing are:

Urease Index

KOH protein solubility index

PDI – Protein Dispersibility Index

ADVANCED QUALITY contd..

DEHULLING / SCREENING AND GRINDING

It ensures that valuable nutrients like amino acids and

energy are not diluted with undigestible fibre

Grinding and screening during processing does save money

at the feed mill

Amino Acid Profile Comparison Amino Acid Matrix Values

Nutrient Kriti Super Hypro US Argentine Standard Indian Brazil

ME (kcal/kg) 2550 2450 2350 2250 2450

Protein % 50 47.50 46.50 46.00 48.50

Lysine % 3.04 3.01 2.89 2.80 3.01

Methionine % 0.66 0.67 0.64 0.63 0.67

M+C % 1.4 1.41 1.35 1.33 1.41

Tryptophan % 0.67 0.68 0.65 0.62 0.68

Threonine % 1.92 1.86 1.79 1.76 1.86

Arginine % 3.7 3.60 3.46 3.50 3.60

Isoleucine % 2.25 2.24 2.15 2.10 2.24

Valine % 2.36 2.41 2.31 2.30 2.41

Fat% 1 1.40 2.00 1.00 1.40

Crude Fibre% 3.5 3.20 3.20 6.00 3.20

Ash% 6 6.00 6.40 7.00 6.00

Producing High Protein SBM

Non GMO Traceability

IMPORTANCE OF Energy -ME

A dehulled meal having less than

4.5% CF

and less than

7% Ash

would contain around

100 kcal/kg

more ME than non-dehulled meal

ECONOMICS OF

FEED FORMULATION

Purchasing decision

Standard Indian SBM

Kriti Super Hypro SBM

CP% 46 CP% 50

CF% 6 CF% 3.5

SS% 2 SS% 0.5

Dig Lys% 2.38 Dig Lys% 2.74

ME 2350 ME 2550

Value Addition from

CP% 23.25

CF% 6.60

SS% 4.01

Dig Lys% 0.41

ME 22.73

Value Matrix compared to Standard ISBM 57

Present CFR Value of Standard ISBM (USD/MT) 267

What Should be Kriti Price Compared to ISBM 325

Purchasing decision US High Protein SBM Kriti Super Hypro SBM

CP% 48 CP% 50

CF% 3.2 CF% 3.5

SS% 0.5 SS% 0.5

Dig Lys% 2.57 Dig Lys% 2.74

ME 2450 ME 2550

Value Addition from

CP% 14.08

CF% -.87

SS% 0.00

Dig Lys% 0.19

ME 11.72

Value Matrix as compared to Hypro SBM 25

Present CFR Value of Hypro SBM (USD/MT) 300

What Should be Kriti Price Compared to US Hypro SBM 325

To make a final purchase decision JUSTIFIED $

DIFFERENTIAL

46 $/MT with

US High Pro

AND

114 $/MT with

Standard ISBM

For

KRITI SUPER HYPRO

SBM

Crude Protein

50 %

Digestible Lysine

2.74%

ME Values

2550 Kcal/Kg

Sand Silica

< 0.50%

Crude Fibre

<3.50%

EVALUATION RETURN ON INVESTMENT

Protein content

Lysine / Methionine content

ME values

Ash content

Other quality parameters

CRITICALLY EVALUATE

Protein content

49.5 – 50 % CP for Kriti Super Hypro Soybean Meal Vs 47% CP of Standard Soybean Meal

Added Urea (46.7% N2) as adulterant will increase the % of NPN and thereby causes a lowering of CP% to 45 - 46% for the standard meal

PURCHASING DECISION for Kriti Super Hypro Soybean Meal

PURCHASING DECISION for Kriti Super Hypro Soybean Meal

Lysine content

3.02 to 3.05 in Hypro vs 2.79 t0 2.80 in standard meal

Methionine Content

0.68 in Hypro Vs 0.63-0.64 in standard 46-47% meal

PURCHASING DECISION for Kriti Super Hypro Soybean Meal

ME values

2450 Kcal/kg Vs 2500 kcal/kg

With adulteration, the ME level even reduces to 2300-2350 kcal/kg

PURCHASING DECISION for Kriti Super Hypro Soybean Meal

Ash content/ Sand Silica %

Super Hypro – Total Ash 6.5% Sand Silica - <0.7%

Standard meal – Total Ash >8% Sand silica - >1%

PURCHASING DECISION for Kriti Super Hypro Soybean Meal

Other quality parameters – Adulteration with Urea / DORB

Salmonella/ Bird Flue Virus Infections

PURCHASING DECISION

GLOBAL PURCHASING PATTERN

Soybean meal is typically purchased on the basis of its protein content and little else. Many purchasers simply calculate the price per percent protein to compare different sources of soybean meal. Although this is useful, it is not completely valid when comparing meals of different fiber and ash content or meals from different origins or crushing plants.

PURCHASING DECISION

In addition to protein differences, the value of a meal should be based on fiber and ash content. Dehulled meal typically contains around 4 percent less fiber and ash than non-dehulled meal. Less fiber and ash mean not only higher protein, but also higher energy, lysine, methionine and other amino acids. How much difference is there between non-dehulled and dehulled meal in terms of energy and amino acids? How much is it worth?

PURCHASING DECISION

This can be calculated based on the dilution by 4 percent fiber and ash in non-dehulled meal. Using the measured value of 2500 kcal/kg of energy (poultry ME) for dehulled soybean meal, non-dehulled meal should contain 96 percent (100 - 4 percent fiber and ash) of this energy or 2400 kcal/kg. The economic value of this 100 kcal/kg difference can then be computed by comparing it to the price of other energy sources, for example vegetable oil or animal fat.

PURCHASING DECISION

Lysine and methionine differences can also be computed. Amino acid assays of 937 samples of dehulled meal have determined the lysine content to be 3.04% and methionine to be 0.68%. Non-dehulled meal on average has a measured lysine content of 2.80% and methionine content of 0.63%. Moisture and other quality factors must also be taken into account.

Bulk Shipment Comparison

What others do:

Packing/shipping in used gunny Bags after manufacturing

Adulteration of leather dust -potential infection source

Surface contamination of exposed & Unpacked commodity

Exposure to wild birds, no control devices

What KRITI does: Packing/shipping in new PP Bags after manufacturing

No addition of Urea/Leather dust at any stage

Covered warehousing storage

Use of covers and nets in vessel hatches to screen material

Operations carried out under close supervision of accredited international inspection agencies from Factory till shipment

Container Shipment Comparison

What others do:

Stuffing in open area exposed to wild birds etc

Only load port quality checking

Exposure to wild birds, no control devices

What KRITI does:

Container inspection by 3rd party for “Fit for Stuffing” Stuffing operations carried out in covered warehouses

Rigorous checking by 3rd party inspection agencies at every stage in transit of material –manufacturing stage, stack sampling prior to dispatch, during dispatch from factory, while in transit to Mumbai CFS and at the time of container stuffing at CFS

No addition of Urea/Leather dust at any stage

Effective fumigation of containers

Flow of Cargo & Services

Analysis & QC during manufacturing by Factory Lab.

Mumbai CFS

Unloading Wagons,

stuffing of containers,

Weight & Quality

Finalization in Presence

of 3rd Party Agency.

Cargo dispatch from Factory To Dewas Railway Station.

Cargo weight & Quality

Analysis by 3rd party

Inspection Agency

At Dewas Station

PORT

Gate in of

Containers

Stack Sampling in warehouse –Quality Analysis, Weight

Checking by 3rd party Inspection agency for

Factory Dispatches

Shipment to Consignee

Stuffed, Sealed, Custom cleared, 3rd party inspected Cargo moves to port

Improvised Logistic Models

From

Factory to Dewas

From Dewas to Mumbai

Cargo Containerization at Mumbai CFS ICD/CFS to Port

Custom House Agents Freight Forwarders

Road Rake

BPTG/ DRT CFS/

CWC CFS FCL by Road

Interport/

Renuka/

LP

RB Int/ LP/

Spark/

Clarion

Road

Preeti Logistics CFS/

CWC CFS/

Allcargo/ Concor ICD FCL by Road

Renuka/

LP/

Clarion

RB Int/

LP/

Spark/

Clarion

Road CONCOR

ICD Pithampur/

ICD Mandideep FCL by Rail

Pegasus/

Vinayak Pegasus/ Vinayak

Future Logistic Model

New Model with proposed Barge movement –CFS to JNPT

Career 1 Career 2 Stuffing at ICD/CFS to Port CHA FF

Road Rake Private Port with

Railway Siding, CFS

FCL by Barge Old Lot + New

Road FCL by Barge Old Lot + New

•Trial shipment of 25x20’ to be done in next month. • Final Costing to be ready after Trial shipment. •Logistics issues being worked out now –Surveyors/CHA/FF etc.

•S

Other future models being worked on: Working on shipment of containerized cargo from New Ports of Pipava and Vizag.

Scope of Third Party Inspection Agencies

• Buyer Nominated Internationally Accredited agencies are used •Cargo is under constant supervision of 3rd Party agency from Factory to Port. •Contract details are made available to agencies for clarity of work scope Scope of work includes:

Stack sampling & Analysis of cargo prior to dispatch -on request Weight Inspection at the time of dispatch in trucks from factory. Wagon condition inspection & general loading supervision Wagon loading at Dewas Railway station. Weight finalization at the time of dispatch of rake from Dewas Quality analysis of the material dispatched in rakes Receiving rake at Mumbai & general inspection before opening doors Inspection of containers prior to stuffing as per the checklist Supervision of stuffing in containers Record of Bag tally Individual container weight record post stuffing Sampling from each container during stuffing, for final report for Consignee based on analysis & weight report

•d

Mumbai Office Established & Activated

Location at CBD Belapur Navi Mumbai –closer to JNPT

One Senior person, NK Ladheriwale has been shifted from Indore to Mumbai office on 10th September, 2008.

More field staff as per business volume Warehouse availability already worked out Faster documentation because of own presence in Mumbai

• CHAs being monitored rigorously for performance & made accountable.

• Periodic review meetings with surveyors & CHAs

•Reciprocal banking system to be explored

TO MAKE A FINAL PURCHASE DECISION

Please remember:

Kriti Super Hypro Soybean Meal

50% CP & 3.02% Lysine

2500 Kcal/kg ME

Sand/Silica < 0.7%

No Urea & Other adulterants (Melamine/Dorb etc)

Bird Flue Virus/Salmonella Free

Standard 47% CP Indian Soybean Meal

46-47% CP & 2.79% Lysine

2350-2450 Kcal/kg ME

Sand/Silica > 1.0%

Chances are high

Chances are very very high.

TO MAKE A FINAL PURCHASE DECISION

WIN-WIN NEGOTIATION

JUSTIFIED $ DIFFERENTIAL

50 $/MT

For

KRITI SUPER HYPRO SOYBEAN MEAL

THE DRUCKER FUNDAMENTALS

“The only way to

predict the future is to create it"

KRITI SUPER HYPRO SOYBEAN MEAL

MAXIMIZING THE POTENTIAL OF

SOYBEAN

From: KRITI SOYA DIVISION – KRITI GROUP Fuelled by Growth, Driven by technology www.kritiindia.com