PALM KERNEL CAKE: INCREASED FEED OPPORTUNITIES ASSISTED BY ITS INHERENT PROPERTIES

Transcription

1 PALM KERNEL CAKE: INCREASED FEED OPPORTUNITIES ASSISTED BY ITS INHERENT PROPERTIES BY Dr Wan Zahari Mohamed Principal Fellow Faculty of Veterinary Medicine University Kelantan Lim Teck Chaii/Fatimah Zaharah Md Nan Malaysian Palm Oil Council 2 nd Floor, Wisma Sawit Lot 6, SS6, Jalan Perbandaran Kelana Jaya Selangor Darul Ehsan Malaysia

2 Outline Of Presentation PKC s attributes - Commercial & Nutritive Samples of PKC feed formulation used around the world and by different animals Prospect for higher PKC uptake

3 Global PKC Major Supplier PKC Exports - Breakdown By Country 4% 42% 54% Indonesia Malaysia Others Malaysia is one of the major global PKC exporter. Malaysia s PKC is produced along the lines of balancing the 3Ps.

4 Source Of PKC Mesocarp Basic Facts Kernel per fruit: 5-8% Mesocarp per Fruit: 85-92% Kernel Shell PKC is obtained from the kernel after the kernel oil is extracted.

5 Picture of PKC

6 PKC Price Trend PKC price trending higher. The major supporting factors for price rise : a) Expanding husbandary sector due to growing population and affluence of the world b) research on PKC application c) extensive promotion of its inherent properties Source : Oilworld

7 USD\MT PKC - Commercial attributes 1. Most attractively priced among major oilmeals in the market PKC Soymeal Sunflower meal Rapeseed meal 2. As PKC is obtained from a perennial crop, PKC appears to be environmentally greener compared to other major oilmeals which are derived from seasonal crops. 3. As a perennial crop, users of PKC are guaranteed availability of supply throughout the year.

8 PKC Nutrients obtained Per USD CP per USD (Kg/USD) ME per USD ( MJ/USD) TDN per USD (Kg/USD) PKC Soymeal Rapeseed meal Sunflower meal Source : Dr. Wan Zahari Mohamed & cif Rotterdam price end December, 2012 Price : PKC-USD212/MT, Soymeal USD565/MT, Rapeseed meal USD390/MT CP : Crude protein, ME Metabolizable energy, TDN Total digestable nutrient 1. For per USD spend on PKC, the energy value obtained is between 40%- 50% higher compared to soybean, rapeseed and sunflower meal. 2. PKC has between 1.7 to 2.2 times more total digestible nutrient (TDN) per USD compared to soymeal, rapeseed and sunflower meal. 3 With 1.7 to 2.2 times higher nutrient absorption rate per USD, technically, PKC should rank higher in terms of availability of crude protein to livestock although PKC s crude protein availability is between 15%-22% lower

9 Comparative composition of ingredient in different meals CP (%) ME (MJ/kg) CF (%) TDN (%) PKC Soymeal Rapeseed meal Sunflower meal Source : Dr. Wan Zahari Mohamed Note : CP Crude Protein, ME- Metabolizable energy, CF-Crude protein, TDN - Total Digestable Energy PK has high crude fibre content. The high fibre content, among others, is beneficial to ruminants as it promotes chewing and salivation which helps to stabilize rumen s PH. In poultry, among the main benefit is that it protects the mucous wall of the gastrointestinal tract. However, the proportion of PKC in feed blends suitable for different types of animal differs.

10 As the product is rich in protein and glucose-based compounds, PKC is generally classified as an energy and protein-based feed ingredients. PKC s nutritive profile High in protein at 16% and carbohydrates as other major components namely galacto-mannans, arabinoxylans, celluloytic and 4-O methyl glucuronoxylan, celluloytic are complex sugar-based compounds.

11 Mineral content of PKC Proportion Calcium % Phosphorus % Magnesium % Potassium % Sulphur % Copper ppm Zinc ppm Selenuim ppm Low in Ca:P ratio as ideal ratio for livestock is 2:1. More calcium (limestone) is normally added when PKC is use as main ingredients for feeds in livestock. As sheep is susceptible to copper toxicity, in preparation of feed ingredients for sheep, care has to be taken to avoid copper toxicity. Ca : P 0.36 : 1 Source : Dr. Wan Zahari Mohamed

12 PKC s palm kernel oil content Amino Acid Profile g/16g N Lysine 2.68 * Methionine 1.75 * Histidine 1.91 Leucine 6.07 Isoleucine 3.22 Phenylalanine 3.96 Threonine 2.75 Valine 5.05Amo Fresh PKC exported has on average 10% palm kernel oil. Occasionally, PKC is extracted for kernel oil. PKC amino acid content has a high by pass rate of 65-75%, implying high protein absorption Source : Dr. Wan Zahari Mohamed

13 Additional Nutritive of PKC High in beta carotene mg/kg High in vitamin E 0.35 mg/kg Natural antioxidant Source : Dr. Wan Zahari Mohamed

14 Other attributes of PKC Free from aflatoxin, toxic metal, heavy metals, pesticides and dioxins therefore it is safe for animal feeding. High dry matter content of 93% discourages growth of micro-organism and mould and this will optimize animal feeds intake and improve overall growth for animals. Source : Dr. Wan Zahari Mohamed

15 Some examples of global feed formulation using PKC

16 PKC Feed Ingredients For Beef cattle % PKC 80 Grass/hay 17.5 Limestone 1.5 *Premix 1 PKC can be fed up to 90% of total ration without any adverse effect. Daily LWG of Kedah Kelantan steers fed with 50% PKC and 50% POME ( Palm Oil Mill Effluent) was about 0.6 kg/day. Vitamins and minerals Source : American Palm Oil Council (APOC), 2006 Brahman crossbred steers fed with 70% PKC for a period of 120 days gained 0.8 kg per day Source : American Palm Oil Council (APOC), 2006

17 PKC Feed Ingredients for Australian Holstein Dairy Cows Control Diet 1 Diet 2 Diet 3 PKC (%) Milk Yield (kg) % increase in milk yield Source : Mengniu Dairy Group, China study The feeding trial was done by the Mengniu Dairy Group, China on 24 Australia-Holstein dairy cows. The results shows that at 18% inclusion level in their PKC formulation, milk yield is 41.3% higher than their control group

18 PKC Feed Ingredients For Swine Control Diet 1 Diet 2 PKC (%) Corn (%) Soymeal (%) LWG* (g)/day *LWG- Live Weight gain Source : Xiangda Company of Tangrenshen Group, China The above feeding trials on 144 pigs conducted by Xiangda Company of Tangrenshen Group, China shows that PKC use in swine diet resulted in increase growth performance at 5% inclusion level.

19 PKC Feed Ingredients For Sheep % PKC 50 Grass/Hay 30 Soymeal 9.0 Rice Bran 10.0 Sheep are very sensitive to copper and levels as low as 25 ppm in the diet can be toxic to them (Schoenian, 2009). Pre-mix* 1.0 Vitamin & Minerals Source : American Palm Oil Council (APOC ) 2006 Higher level of feeding can be practiced but precaution is needed to avoid copper toxicity. Source : American Palm Oil Council (APOC )

20 PKC Feed Ingredients For Grass Carp Control Diet 1 Diet 2 Diet 3 PKC (%) Wheat SBM (%) LWG (g)/ day Total Feed Cost (Yuan/kg) 2,262 2,236 2,194 2,130 Source : Wuxi Freshwater Fish Research Institute, China s study Above results shows that PKC inclusion at 5-10% reduced the feeding cost without affecting growth performance.

21 PKC Feed Ingredients For Broilers PKC level (%) Daily feed intake (g) Daily weight gain (g) Source: Yeong (1985) Effects of PKC on broiler growth done by a local scientist establishes that daily weight gain is highest at 10% PKC inclusion level.

22 Feeding trial done by a group of animal nutritionist from Ecoagricultural Chicken Feedlots in Tangrenshen Group, China shows that PKC inclusion at 6-10% improved feed to egg ratio. Further improvements are observed when Heimei enzyme was added at 10% PKC inclusion rate. PKC Feed Ingredients For Layer Chicken Control Diet 1 Diet 2 Diet 3 Diet 4 PKC (%) Corn (%) SBM (%) Heimei Enzyme (500 g/t) Total Feed 2,084 2,071 2,062 2,106 2,097 Cost (Yuan/kg) Feed:Egg ratio Source : Eco-agricultural Chicken Feedlots in Tangrenshen Group, China s

23 PKC Market Potential

24 '000 MT Annual growth of global oilmeals disappearance from is 3.5%. Major oilmeals used are soymeal, rapeseed meal, corngluten feed and PKC which accounts for 61%, 12.0%, 5.2% and 2.3% of the global consumption respectively in Major consuming countries of oilmeals are EU-27, China and USA. These 3 countries accounted for 22%, 21% and 15% of global oil meal consumption in Global Oilmeal consumption Global Oil Meals Consumption

25 Mn MT ' 000 MT Potential for PKC in EU EU-27 Oilmeals consumption EU-27 growth in total oilmeals consumption is slow averaging 1.2% from From 2008 onwards, there were virtually no growth. Market do not have high growth potential for oilmeal consumptiondue to the region s stable population and lifestyle, EU-27 PKC import Vis-a-vis Compound feed Prooduction 50 0 PKC import Compound feed production However, there is potential for higher PKC usage as imports to EU-27 in 2011 only registered 2.2 Mn MT which is only 1.5% of the region s compound feed production of Mn MT.

26 Mn MT '000 MT Potential for PKC in USA USA oilmeal consumption ('000 MT) PKC usage vis-a-vis Compound feed production PKC usage Compound feed production Similar to EU-27 market, USA growth in total oilmeals consumption is slow averaging 1.7% from Slow growth is seen post With stable population and lifestyle, market do not have high growth potential for total oilmeal consumption. However, there is potential for higher PKC usage as imports is negligible while its compound feed formulation for 2011 is million MT.

27 Mn MT PKC Feed Potential For China China's Oil Meal Consumption ('000 MT) PKC usage vis-a-vis Compound feed production China s oil meals consumption grew at an average annual rate of 8.6% between to register 65.2 million MT in Supporting China s oilmeals consumption are growing country s prosperity due to continuous GDP growth and changing lifestyle brought about by rapid urbanization rate averaging 2.3% a year on a population base of 1.37 billion people PKC usage Compound feed production Prospect for higher PKC usage is bright as the country consumes only 245,000 MT in 2011 which is only 0.2% of the country s compound feed production of 120 million MT

28 Other Potential Markets for PKC New Zealand has registered phenomenon growth in PKC usage. New Zealand s preference for PKC has increased following severe droughts in 2005 and 2007, which led farmers to believe that the grassland is not a reliable source of animal feed. The country s import of PKC from Malaysia rose from 32,506 MT in 2003 to 702,880 MT in The subcontinent, mainly India and Pakistan, could also be potential areas for PKC feed usage in view of the large cattle industries of the two countries. Both India and Pakistan are producing large amounts of meat and milk products from their livestock industry.

29 Other Potential Markets for PKC India has also topped the list of beef and veal exporters in 2012 and due to strong export demands, India s beef production is expected to increase to 14% in Pakistan s production of beef is also significant, but it is mainly for domestic consumption. At present, the consumption of PKC by India is not very significant as the country is also producing large amount of soymeal. On the other hand, Pakistan s import of PKC is on the rising trend, with imports shooting up from just 19,871 MT to 72,510 MT in 2011.

30 Other Potential Markets for PKC South Korea imports of PKC in the last 3 years are also registered significant volume of more than 400,000 tonnes. Middle East, mainly Saudi Arabia and Turkey also imported some volume of PKC into the country.

31 Conclusion Samples of global feed formulation provided in this write-up shows that it is use as feed blends for fresh water fish, beef cattle, dairy cattle, sheep, swine, broiler and layer chicken. PKC offers feed producers a competitive priced feed ingredient as it is the most competitive oilmeal traded in the market. As PKC is obtained from a perennial crop, the product is produce everyday. Thus, PKC can sustainably meet compound feed producers daily requirement. With PKC appearing to be greener as it is derive from a perennial crop compared to other major oilmeals which is derived from crops which are seasonal in nature, PKC is a good choice ingredient among green animal feed product marketers.

32 Conclusion PKC is generally classified as an energy and protein-based feed ingredient. The other valuable qualities of PKC is that it has a betacarotene content of mg/kg, 0.35 mg/kg of vitamin E, free from aflatoxin, toxic metal, heavy metals, pesticides and dioxins. Fresh PKC has on average 10% palm kernel oil. PKC is occasionally extracted by users to yield kernel oil to increase its product value. PKC s total amino acid content has a high by pass rate of 65-75% implying high protein absorption. Generally, prospect for PKC globally is bright as there should be much bigger market for the product alongside growing global feed meals requirement to meet growing population and affluence of the world.

33 Conclusion ( Continue) The commercial reasoning that tied up growing affluence with rising feed demand is that consumption of meat will rise with rising income as vegetable-based food is relatively more dull and bland. As for individual countries, they may have different market potential. For example, in EU and USA, there is low potential for growth in oilmeals usage due to stable lifestyle and population. Despite stable outlook for oilmeals demand, prospect for higher PKC usage is good as PKC usage is low. In USA, imports of PKC is negligible while its compound feed production is Mn MT while EU-27 imported 2.2 million MT while its compound feed production totalled Mn MT.

34 Conclusion ( Continue) The EU is currently the biggest PKC importer, but the volume is not significant in view of the total compound feed utilisation by the livestock industry in the region. The strength of PKC, which has proven to improve milk production in dairy cattle, could be the main reason why New Zealand is importing a substantial amount of PKC for its livestock industry. While Pakistan s import of PKC is rising, there is still room for much improvement, in view of the sizeable dairy industry of the country.

35 Thank You