For compound feed mills, one huge area of expense that is often overlooked is energy costs.

This has been the case for a long time, but it is only now with energy costs skyrocketing that many in the industry are waking up…

Keep reading to find out more, and how you can stay ahead of the game.

Energy costs in feed manufacturing

Energy costs are one of the most important factors causing pressure on feed costs, falling behind only raw material in terms of importance. Energy consumption as a whole is increasingly higher on the agenda for industries across the globe as we seek to combat climate change.

Many industry leaders in various sectors are now focusing on goals like reducing carbon emissions, reducing carbon footprint, and achieving sustainable production. This has put the importance of energy saving on the map.

For new facilities, this is not a new idea. Many new establishments are created with maximum energy savings already in mind – but this is not to say that older factories cannot seek significant energy savings through various measures.

Why is it important?

Energy is one of the most critical input resources for manufacturing industries as whole, often outweighing the cost of other resources like raw material, labour, depreciation, and maintenance. Energy costs are highly volatile (as seen recently) and can have a massive effect on feed cost.

The aim for most animal feed production is to mix various raw materials and components to provide balanced nutrition to animals used for food, with the best conversion performance possible. Although this all cannot be changed, some touches of the process can be.

It is worth noting at this point that ‘Energy’ is not just from electrical sources – but steam and compressed air too.

Where does my energy go?

Below is a pie-chart with approximate energy consumption for a standard feed manufacturer.

How much energy can be saved in a feed manufacturing plant?

For each country production will vary massively. Energy saving measures and their success are entirely different depending on specific conditions such as energy prices and regulations. Most importantly, each individual feed mill should be considered as exactly that – an individual.

Energy efficiency solutions proposed for one mill could be entirely unsuitable for another, this is crucial. Some can be optimised with steam adjustments only, some need high precision control systems, some need entire overhauls.

With just a small touch it is easy to reduce energy by 5% and with a well-planned plant investment, it is reasonable to expect a 20% reduction.

Where has the highest energy consumption in a feed plant?

For most, approximately 40% of electricity can be consumed by the pelleting line, with grinding line coming in second. Around 80-90% of steam is consumed at the pelleting line – which inflates usage. By implementing separate dosing and sifting lines, it is possible to reduce grinding energy by 10%.

Can long established feed manufacturing plants reduce energy usage without huge capital investment?

Although again, it depends on the life period of the plant – budget can be recovered without huge spending. It is much more difficult to ascertain exactly where, when, and how to implement effective strategies – especially when attempting to balance the potential benefits with loss of production and outlay.

More importantly, if it’s not your job – it can be difficult to find the time to work on the finite details of the plan…

The ready-made solution for Feed Manufacturers  

Flexible contracts are a relatively new contract type that helps to pass on the benefits of the wholesale energy market to consumers. The price that consumers will pay for their energy is strongly dependent on the movements in wholesale market, meaning that there are opportunities presented during periods of volatility.    

As you can imagine, flexible energy contracts are exactly that – flexible.    

The predictable portion of customer energy use can be thought of as the bulk of their demand, with most businesses able to provide very accurate estimations of this through smart meters, sub-meters, and even energy audits. The peak is essentially the spike in demand outside of this predictable consumption – this then forms the tradeable volume that can be traded within flexible contracts.    

You purchase too much energy, and your baseload and peak volumes exceed your profile? Well, just sell the excess back to the supplier.   

You don’t purchase enough energy to cover baseload and peak volumes? Well, just top up with a little extra.   

For those manufacturers with tight profit margins, it’s a game changer.   

The long-term solution – Why Feed Manufacturing and Energy Brokerage go Hand-in-Hand   

One thing that is universal with all sectors of manufacturing is the long hours and demanding nature of the job.   

After a long shift the last thing you want to do is to return home and think about energy.  

Dealing with suppliers, complex calculations, paperwork, long phone calls, complex jargon, and even more paperwork…   

We don’t blame you.   

Wouldn’t it be nice to have someone on your side to alleviate the load when it comes to energy?    

That’s when partnering with an energy procurement specialist comes in handy. Acting as a knowledgeable consultant for everything energy, they’ll keep you on the best possible energy contract available to you. Saving you money and time to spend on whatever else you’d rather be doing.   

Energy Solutions by Us, for You         

At a time of great uncertainty in global energy markets, it is easy to feel lost in it all.       

Keeping up to date with developing situations and the associated ramifications is a tricky and time-consuming job. It is also one that is not likely a priority for you and your business.      

So, what do you do?       

You partner with energy procurement experts to take the load off your desk.     

Energy Solutions have been trusted brokers for countless businesses for over twenty years, which means we know how to navigate the energy markets during a time of uncertainty.   

Website: https://www.energybrokers.co.uk/   

Email: nick@energybrokers.co.uk   

Call Us: 0131 610 1688   

WhatsApp: 07757 400 788  