Animal Feed Mill
Optimize your diet formulation considering its impact on the mill process
COSTS & REVENUES
While the main focus in the animal feed industry is on the nutritional impact on the animal growth (mainly FCR - Feed Conversion Rate), it appears that the grinding and press processes have a non-negligible impact on the performances at the farm.
The decisions about the grist size and the steam usage are more and more sensible to the main three challenges in the business: the cost and the productivity at the mill and the performances at the farm.
Grist size hugely impacts the production rate and consequently the energy consumption. The trade-off with the performances have to be optimized in a model integrating the mill with the farm.
Steam is required for biosecurity but its consumption has been more and more increased for productivity purpose. Its impact on the growth performances makes it a real trade-off to be optimized.
The manufacturing cost, including grinding, mixing and press depends on the type of ingredient in a specific diet.
The hardness of an ingredient will hugely impacts the grinding time. The abrasiveness of an ingredient will causes higher wages to the facilities (blades, dies, etc.).
A right pricing per product, depending on the ingredients in the diet, is fundamental to insure the profitability of the business.
The variable manufacturing cost follows the variable consumption of electricity and steam, as well as the maintenance cost that can be attributed to the usage of a specific ingredient.
The fixed cost is fairly distributed among the production, taking into account the overall mill occupation time per product (considering both the volume of production and the production rate).
Because of the impact of every ingredient on the production rate (e.g. hardness impacting the grinding rate, oil content impacting the press rate), each diet will occupy the mill differently.
As in many industries, the mill capacity is defined by the bottleneck of the mill that may vary according to the order book.
A feasibile production level satisfies the capacity constraint at every step of the process, that are all impacted by the usage of certain ingredients or process factors that can be optimized.