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PRAWN FEED

CONTENTS

SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATION SECTION II PRODUCT APPLICATIONS SECTION III INDIAN MANUFACTURERS SECTION IV IMPORT/EXPORT LEVEL SECTION V PRICE DETAILS SECTION VI INDIAN DEMAND SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS SECTION VIII RAW MATERIAL REQUIREMENTS, UTILITY

AND AVAILABILITY SECTION IX GLOBAL SCENARIO SECTION X DISCUSSIONS ON ECONOMIC CAPACITY,

PROJECT COST AND PROFITABILITY PROJECTIONS

SECTION XI SWOT ANALYSIS SECTION XII FACTORS INFLUENCING THE POSITION FOR

A NEW INDUSTRY AND RECOMMENDATIONS

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SECTION - I

PRODUCT CHARACTERISTICS AND SPECIFICATION

Prawn (shrimps) are produced from the sea, estuaries, brackish water lakes and fresh water areas, both by fishing as well as by farming. Prawn farming is nothing but culture of prawn in an enclosed waterbody. There are several varieties of shrimps and only four of them are considered to be viable for farming at present in India. They are white shrimps (P.indicus) tiger shrimps (P. monodon), banana shirmps P.merguiensis) and giant fresh water prawn (macrobrachimum spp). They breed and spawn in the sea. Each female releases more than 10,000 eggs, the young ones hatch out and pass through the early stages of their life history. The young ones have a natural tendency to migrate towards the coastal estuaries/lagoons for growth and live there for a fewmonths. Once they reach adolescent stage, they migrate back to the sea for breeding and pairing. The passing phase of shrimps in the estauries is taken full advanage for culture opeartions in the briackish water areas of the coast.

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SECTION - II

PRODUCT APPLICATIONS The main objective in the preparation of prawn feed is to mix and formulate several selected ingredients proportionately, according to the specifications in order to obtain the required amount of protein and various other nutrients. The feed ingredients include not only conventional materials but also unconventional products such as the wastes obtained from food processing plants.

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SECTION III

INDIAN MANUFACTURERS

Nutritionally balanced high quality compounded prawn feed is another basic requirement for prawn farming; but it is yet to be adequately manufactured in India. Some private companies have are producing feeds which are being tested in the field and its results are under evaluation. A few private entrepreneurs are trying to develop nutritionally balanced good quality feed for semi-intensive type of farming. However, they are yet to succeed to produce quality commercial feed comparable to those available in the world market for semi-intensive farming. As the progressive farmers are not satisfied with the quality of feed available in the country,Government of India, at the instance of MPEDA, has allowed import of feed with duty concession by farmers and without duty by exporters (against advance licensing). In the meanwhile, several entrepreneurs are trying to establish feed mills by borrowing technology from outside. There are number of fish feed manufacturers in India both in organised and unorganised sector. The important producers include the following. 1. The Tata Oil Mills Co. Ltd.,Madras. 2. Him feed (P) Ltd., New Delhi. 3. Mysore Snack Foods Ltd.,Bangalore 4. Laxmi Feeds & Exports Pvt. Ltd.,Bangalore 5. Laxmi Agro Products, Vijayawada. 6. Ms Laxmi Fertiliser, Calcutta. 7. Provimi Products (P) Ltd.,Gobichettipalayam. 8. Higashi Maru Feeds (India) Ltd.,Cochin 9. Thapar Waterbase, Nellore. There are also reported to be number of fish feed producers in the country in the unorganised sector,who largely operate without much of quality control and quality consistency. Feed Problem Manufacture of good quality prawn feed with high nutritional value is getting delayed in India. Indian companies such as M/s.Tomco, Madras, M/s.Mysore Feed, Bangalore, M/s.Him Feeds, Delhi,M/s.DJ.Hatcheries, Bangalore and others are all trying hard. Lack of proper cost effective feed formula with suitable premixes, mobilisation of proper raw material in large quantity for large scale feed production in the country and very high import duty for premixes are found to be the major bottlenecks.

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Progressive farmers have to import feed from Taiwan/Thailand,which is found to be expensive. Without proper feed, the country is reported to be losing annually 30,000 tonnes of prawns worth of Rs.300 crores in the existing farm area of 66,000 ha. Imported feed from Taiwan and Singapore has given excellent results (8 tonnes/crop/ha). Different grades of feed should be produced to suit different classes of farmers from extensive to semi-intensive levels.Since the feed controls the overall cost of production,the production cost of shrimp should be brought down to less than 4 US$ per kg. so as to make the culture operation economically viable even during glut in the overseas market. Many units not only produce prawn feed but also fish, pig, chicken and Cattle feed. Unlike conventional feed plant that can only process fish meal, new plants can replace the fish meal partly with raw fish and a few cheaper and indigenous raw material. Most of the large units have acquired technology from abroad. The quality of the Indian feed production leaves scope for further improvement, particularly in the unorganised sector.

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SECTION IV

IMPORT/EXPORT LEVEL

4.1. Present Import level Feeds for Fish (Prawn ETC) 1910 tonnes per annum Countrywise Feeds for Fish (Prawn ETC) Period April 2001 to March 2002 Country Qunatity in Kgs

Bangladesh 789899 China P RP 20000 Indonesia 2600 Iran 2154 Japan 306400 Kenya 8000 Korea DP RP 2250 Saudi Arab 285000 Seychelles 39600 Sri Lanka 188510 U Arab Emts 90000 USA 172233 4.2. Present export level : Nil

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SECTION V

PRICE DETAILS

Basic price : Rs.12 per Kg Taxes and duties : Extra as applicable

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SECTION - VI

INDIAN DEMAND

The demand for Shrimp feed depends upon the production of fish and planned expansion for the industry. Indian Fisheries resources Resource Area

Ponds and tanks 2.36 million ha. Oxbow lakes and derelict water bodies 1.3 million ha. Reservoirs 2.05 million ha. Rivers 45000 km Canals 126334 km Estuaries 2.7 million ha Brackishwater 1.42 million ha Fish production in India Production in lakh tonnes Year Marin

Inland

1950-51 5 4.5 1960-61 9 2 1970-71 12 7 1980-81 17 8 1990-91 22.5 16 1991-92 23 17.5 1992-93 26 17.5 1993-94 27 20 1994-95 27 22 1995-96 27 25 1996-97 30 23.5 1997-98 29 24 1998-99 27 26 1999-2000 27 27 Demand for Prawn Feed Extent of shrimp farming in India Around 50000 hectares

Estimated Indian requirement of fish meal and prawn feed

Around 22,000 tonnes per annum.

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SECTION - VII

BROAD OUTLINE OF MANUFACTURING PROCESS

Feed ingredients Fish meal and Shrimp meal should be prepared by boiling them followed by complete removal of the scales and the skeletal structures. This is minced properly and the other ingredients added. Soyabean meal is available as powder. (Dried whole soyabeans also can be used). The whole mixture is made into a homogeneous thick paste and allowed to dry. A pellatiser is ideal for large scale production. It is important to have the smell of fish meal or shrimp meal in the final product to make the feed more palatable by the animals. The selection of ingredients is governed by three main factors namely quality, price and availability. Soyabean waste or powder appears to be one of the important protein source. Animal protein is very important in Shrimp diet. The principal sources of animal protein include shrimp meal, shrimp head meal, squid and cuttle fish waste mussel meat, claim mat and fish meal. Source of technology * Central Marine Fisheries Research Institute (Indian Council of Agricultural Research) Post Box No.1603 Tatapuram P.O., Ernakulam Cochin-682 014

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Major plant and machinery and suppliers Name of the equipment

Name of the company

Mixer ACE Pack Machines 23, V.N. Industrial Estate Bharathi Colony,Near Athiparasakthi Temple Peelamedu, Coimbatore-641 004 Drycon Systems F-14, IInd Main Road, Anna Nagar East Chennai-600 102

Dryer The Anup Engineering Ltd., Behind 66 KV Electric Sub Station Odhav Road, Ahmedabad-382 415 ATRE Thermal Products Pvt. Ltd., Pushpa Heights, 1st Floor, Bibwewadi Corner, Pune-411 037

Pulveriser ACE Pack Machines 23, V.N. Industrial Estate Bharathi Colony,Near Athiparasakthi Temple Peelamedu, Coimbatore-641 004 Frigmaires Engineers PO Box 16353, 8, Janata Industrial Estate Senapati Bapat Marg Opp Phoenix Mill, Lower Parel (W) Mumbai-400 013

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SECTION VIII

RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY

Basis: 300 tonnes per annum of feed formulation Utility Installed power 100 H.P. Feed formulation The main objective of feed formulation is to supply shrimp crops with nutritive feeds which yields optimum production. Formulation of feed is mainly based on the Protein and energy levels required in the diet. Vitamin enriched feeds are known to yield much better results. FAO Grow out feed formula for Penacus monodon

Ingredients In the diet Crude protein

FCR

Shrimp head meal 20 Fish meal 30 Soyabean meal 10 Groundnut cake 15 40% 1.54 Copra cake meal 10 Corn meal 12.5 Wheat flour 7.0 Basfin 0.5 Formula for start mash for Penacus monodon

Ingredients In the diet Crude protein

FCR

Shrimp head meal 30 Fish meal 40 Soyabean meal 10 Rice bran 10 40% 1.40 Corn meal 5 Corn oil 4 Vitamin mixture 1

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Composition of Vitamin Mixture Vitamins Mg./kg. of dry diet Thiamic HCl 120.0 Riboflavin 40.0 Pyridoxine HCl 120.0 Nicotinic acid 150.0 Ca-Pantothenate 100.0 Folic acid 5.0 Biotin 1.0 Cyanocoblamine 0.02 Inosital 4000 Choline chloride 1200 Na-Ascorbate 5000 Vitamin A 5000 (W) Vitamin D 1000 (W) Tucophenol 200 Feed Formulation for Culture Fish (Trash) Fish meal 1 kg. Rice Bran 1/2 kg. Groundnut oil cake 100 gms Soya bean meal 100 gms Shrimp meal 1/2 kg. Vitamin 5 mg capsule Stephac 10 gms Abtibiotic For culture prawns: Fish meal 1 kg. Rice bran 1/4 kg. Soya bean meal 1/4 kg. Shrimp meal 1/2 kg. Vitamin 5 mg capsule Stephac 10 gms. Source of raw material availability Raw material are generally available in the commodity market and no problems are anticipated in the availability of raw material.

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SECTION IX

GLOBAL SCENARIO Aquaculture production in selected countries (in metric tonnes) Categories China Thailand Japan USA

Freshwater fishes

7865367 167358 16750 217271

Marine fishes 101110 1249 248527 Crustaceans (shrimps, prawns, crabs, etc.)

123241 277913 1540 24422

Molluscs (oysters, clams, mussels etc.)

2522755 68571 424302 124503

Aquatic plants (seaweeds etc.)

4765026 639228

Other 4282 106169 34851 Total 15377499 519373 1436516 401047 Value per Kg in Rs.

34 126 132 60

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SECTION X

DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS

Economic capacity : 3000 tonnes per annum Project cost : Rs.130 lakhs Assessment of project cost 1. Land S.No. Description Cost

Rs.in lakhs

1.1 Cost of land of one acre at Rs.5.5 lakh per acre 5.5 1.2 Cost of levelling, laying internal roads/fencing and

compound wall 0.55

Subtotal 6.05 2. Building S.No. Description Cost

Rs.in lakhs

2.1 Factory building of area 320 sq.m. at Rs.3200/sq.m. 10.24 2.2 Non-factory building of area 70 sq.m.at Rs.4500/sq.m. 3.15 Subtotal 13.39 3. Cost of Plant & Machinery S.No. Description Cost

Rs.in lakhs

3.1 Cost of basic plant and machinery 32 3.2 Instrumentation and control 2.4 3.3 Pipelines and valves 3.2 3.4 Structurals for erection 1.6 Subtotal 39.2 3.5 Octroi, excise duty, sales tax, etc.at 12%� 4.7 3.6 Packaging and insurance charges (2%) 0.78 3.7 Transportation charges (2%) 0.78 3.8 Machinery stores and spares (2%) 0.78 3.9 Foundation charges (2%) 0.78 3.10 Installation charges (2%) 0.78

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Total cost of plant and Machinery 47.82 4. Technical know-how fees Rs.2 lakhs 5. Miscellaneous fixed assets S.No. Description Cost

Rs.in lakhs

5.1. Electrification 3.5 5.2. Steam boiler and auxillaries 2.5 5.3. Water storage tank, borewell etc. 0.8 5.4. Fuel storage tank 1.5 5.5. Laboratory equipment 1.5 5.6. Office machinery & equipment 0.8 5.7. Material handling equipment, packaging machinery,

weigh balance, etc. 0.8

5.8. Diesel generator 4.4 5.9. Effluent treatment 2 Total 17.8 6. Preliminary & Pre-operative expenses: S.No. Description Cost

Rs.in lakhs

6.1. Preliminary expenses 0.8 6.2. Pre-operative expenses:- 6.2.1 Establishment 0.8 6.2.2 Rent rates and taxes 1.5 6.2.3 Travelling expenses 0.8 6.2.4 Interest and commitment charges on borrowings 4 6.2.5 Insurance during construction period 3 6.2.6 Other preoperative expenses and deposits - 6.2.7 Interest on deferred payment - Total 10.9 7. Provision for contingency Rs.5.89 lakhs 8. Working capital margin Rs.26.56 lakhs 9. Total project cost Rs.130 lakhs 10. Means of finance (Rs. in lakhs) Promoter's contribution 52 Term loan from financing institutions 78 Total project cost 130

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11. Financial statements Cost of production A Variable cost

Rs. in lakhs

Raw material and utilities 195 Spares and maintenance 2.87 Selling expenses 18 Total variable cost (A)

215.87

B Fixed cost

Salaries and wages 9 Interest on term loan and working capital loan 28.43 Depreciation 6.77 Administrative expenses 10.8 Total fixed cost (B)

55

C. Total cost of production (A+B)

270.87

D. Selling price per kg. (in Rupees)

12

E. Annual sales turnover

360

F. Net profit before tax (E-C)

89.13

G. Breakeven point in %

38%

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SECTION XI

SWOT ANALYSIS

Strength

Increasing demand

Weakness Need for quality improvement amongst Indian producers

Opportunity Research & Development and scope for introduction of more grades

Threat Imports

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SECTION XII

FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND RECOMMENDATION

Fisheries is a thrust area for growth in India and government provides considerable support and encouragement for the industry. The Indian fishery industry is making steady progress and has penetrated the export market with reasonable successful The large production of Prawn feed is an essential factor for the growth of the fishery industry Additional capacity have to be created for Prawn feed in the country, with good quality standards and grades of product.