KRITI SOYBEAN MEAL QUALITY VS. REST

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1 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

2 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

3 BASIC QUALITY Protein content Higher the better Fibre content Lower the better Ash content Lower the better Moisture content Below 12% ideal

4 Interpretation of Basic Quality Protein/Fibre Content: High protein soybean meal ( %) 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

5 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

6 ADVANCED QUALITY Heat Processing Dehulling

7 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)

8 ADVANCED QUALITY contd.. Indicators of optimum heat processing are: Urease Index KOH protein solubility index PDI Protein Dispersibility Index

9 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

10 Amino Acid Profile Comparison Amino Acid Matrix Values Kriti Super Hypro US Argentine Standard Indian Brazil Protein % Lysine % Methionine % Tryptophan % Threonine % Isoleucine % Valine % Nutrient ME (kcal/kg) M+C % Arginine % Fat% Crude Fibre% Ash%

11 Producing High Protein SBM

12 Non GMO Traceability

13 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

14 ECONOMICS OF FEED FORMULATION

15 Purchasing decision Standard Indian SBM CP% CF% SS% Dig Lys% ME Value Addition from CP% CF% SS% Dig Lys% ME Value Matrix compared to Standard ISBM Present CFR Value of Standard ISBM (USD/MT) What Should be Kriti Price Compared to ISBM Kriti Super Hypro SBM CP% 50 CF% 3.5 SS% 0.5 Dig Lys% 2.74 ME

16 Purchasing decision US High Protein SBM CP% 48 CF% 3.2 SS% 0.5 Dig Lys% 2.57 ME 2450 Kriti Super Hypro SBM CP% 50 CF% 3.5 SS% 0.5 Dig Lys% 2.74 ME 2550 Value Addition from CP% CF% SS% Dig Lys% ME Value Matrix as compared to Hypro SBM Present CFR Value of Hypro SBM (USD/MT) What Should be Kriti Price Compared to US Hypro SBM

17 To make a final purchase decision JUSTIFIED $ DIFFERENTIAL 46 $/MT with US High Pro AND 114 $/MT with Standard ISBM Crude Protein 50 % Crude Fibre Digestible Lysine <3.50% 2.74% For KRITI SUPER HYPRO SBM Sand Silica < 0.50% ME Values 2550 Kcal/Kg

18 EVALUATION RETURN ON INVESTMENT

19 CRITICALLY EVALUATE Protein content Lysine / Methionine content ME values Ash content Other quality parameters

20 PURCHASING DECISION for Kriti Super Hypro Soybean Meal Protein content % 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

21 PURCHASING DECISION for Kriti Super Hypro Soybean Meal Lysine content 3.02 to 3.05 in Hypro vs 2.79 t in standard meal Methionine Content 0.68 in Hypro Vs in standard 46-47% meal

22 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 kcal/kg

23 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%

24 PURCHASING DECISION for Kriti Super Hypro Soybean Meal Other quality parameters Adulteration with Urea / DORB Salmonella/ Bird Flue Virus Infections

25 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.

26 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?

27 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.

28 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.

29 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

30 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

31 Flow of Cargo & Services Analysis & QC during manufacturing by Factory Lab. Cargo dispatch from Factory To Dewas Railway Station. Cargo weight & Quality Analysis by 3rd party Inspection Agency At Dewas Station Stack Sampling in warehouse Quality Analysis, Weight Checking by 3rd party Inspection agency for Factory Dispatches Mumbai CFS PORT Gate in of Containers Stuffed, Sealed, Custom cleared, 3rd party inspected Cargo moves to port Shipment to Consignee Unloading Wagons, stuffing of containers, Weight & Quality Finalization in Presence of 3rd Party Agency.

32 Improvised Logistic Models From Factory to Dewas From Dewas to Mumbai Cargo Containerization at Mumbai CFS ICD/CFS to Port BPTG/ DRT CFS/ Road Rake CWC CFS FCL by Road Custom House Agents Freight Forwarders Interport/ RB Int/ LP/ Renuka/ Spark/ LP Clarion RB Int/ Road Preeti Logistics CFS/ Renuka/ LP/ CWC CFS/ LP/ Spark/ Clarion Clarion Allcargo/ Concor ICD FCL by Road ICD Pithampur/ Road CONCOR ICD Mandideep Pegasus/ FCL by Rail Vinayak Pegasus/ Vinayak

33 Future Logistic Model New Model with proposed Barge movement CFS to JNPT Career 1 Career 2 Road Rake Road Stuffing at ICD/CFS to Port CHA FF Private Port with FCL by Barge Old Lot + New Railway Siding, CFS 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.

34 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

35 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, 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

36 TO MAKE A FINAL PURCHASE DECISION Please remember:

37 TO MAKE A FINAL PURCHASE DECISION 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 Kcal/kg ME Sand/Silica > 1.0% Chances are high Chances are very very high.

38 WIN-WIN NEGOTIATION JUSTIFIED $ DIFFERENTIAL THE DRUCKER FUNDAMENTALS 50 $/MT For KRITI SUPER HYPRO SOYBEAN MEAL The only way to predict the future is to create it"

39 KRITI SUPER HYPRO SOYBEAN MEAL MAXIMIZING THE POTENTIAL OF SOYBEAN From: KRITI SOYA DIVISION KRITI GROUP Fuelled by Growth, Driven by technology

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