Byproduct
Processing
Alternative Energy
(Biomass, methane, ethanol, biodiesel)
Innovative
Agriculture Projects
Business
Development
and planning
KENTUCKY ENRICHMENT, INC.
of the Problem / Opportunity
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Every poultry meat and egg production facility is faced with the reality of waste disposal in the form of manure and bedding (litter) and dead birds (mortalities)
The broiler houses found in Western Kentucky generally have from 25,000 to 50,000 birds in them for abut 7 weeks growing a bird from day old to 7 pounds. These houses contain approximately 150 to 200 tons of litter after one year of production.
Most of the litter removed from poultry houses in Kentucky, as elsewhere, is land applied on a nearby farm. The fertilizer value of the litter is generally recognized, however, it is not economical to transport the litter fertilizer great distances and it is difficult to handle in its fresh state. Odors and pathogens from fresh litter are well documented in the literature of agriculture and in the local press. N and P overload in the soils and the likelihood of runoff contaminating waterways with excess nutrients and various disease carrying organisms makes this most economical alternative also very undesirable in the long term.
Composting of animal waste has been tried on a small scale with some success. However, for farmers, proper composting methods require a level of attention and expertise not easily transferred to disparate farmers, and the resulting compost is often unbalanced for use as a fertilizer, requiring amendments and poses a hazard to the immediate fields and water sources when undertaken on a large scale. There is also the risk of releases of methane and other toxic gasses into the atmosphere.
The Kentucky poultry industry is relatively new to Kentucky but it has grown quickly. Since poultry offer an alternative to tobacco and allows small farms to provide a livelihood, it should be encouraged in a responsible plan to promote family farming in Kentucky. Thus, it is a key element of the agricultural economy in Kentucky. However, there are two critical problems that face this industry in our state: the ability to reduce production costs and ensure competitiveness, and the disposal problem of the waste, which pose significant environmental risks to the water, air and land.
There are approximately 1000 poultry houses in Daviess, McLean and Ohio counties of Kentucky. With each house producing up to 200 tons of litter per year the disposal options quicky become overwhelmed.
Kentucky Enrichment, Inc. has a solution. By adapting older technology, the company plans to recycle poultry litter into a sterile, high protein animal feed. The method will avoid the potential environmental hazards inherent in current disposal technologies. Furthermore, it will add value to what now is considered a waste disposal problem to the growers. This method is already approved by the FDA as an alternative method to traditional rendering.
Kentucky Enrichment, Inc is based in Owensboro, Kentucky. The company proposes to establish a litter processing facility in Ohio or McLean County, Kentucky. The location is centrally located with respect to existing poultry production in the area. The production facility will house enough equipment to process the litter from 30 poultry houses per year. This site will generate approximately 6,000 tons of finished feed ingredient per year.
Additional capacity can be added in a modular design since the addition of equipment does not necessary result in all other cost factors increasing.
The Kentucky Enrichment, Inc facility will address the problems of waste disposal in an innovative and environmentally conscious manner. The facility will help solve the litter disposal problem, and also provide livestock producers with a valuable feed ingredient suitable for use in cattle, hog and fish diets. The facility’s planned location in Western Kentucky will provide a demonstration of a responsible and economical resolution to the waste problem in that area. Additionally, Kentucky Enrichment’s facility will encourage present grower expansion without degradation of our farm environment.
The end feed ingredient will benefit the agricultural industry in the state. It can be combined with soybean meal to be marketed to the livestock industry on a local and statewide basis. This new processing method will enable the producer to lower disposal costs thus lowering production costs. At the same time the new process will generate a quality feed ingredient. In addition, the process eliminates a number of potential and real environmental hazards by preserving air quality and eliminating the chances of contaminating local water supplies.
To best understand our proposition it is necessary to understand the proposed method of processing the litter.
Using standard single screw dry extruding devices, litter can be economically converted back into a usable feed source. Extruder technology was developed in the 1960’s for the conversion of soybeans into a digestible feedstuff. Since that time, the extruder has been found useful in many other diverse applications one of which is the conversion of "waste" products into value added products. Extensive testing of the end product has proven the feed is pathogen free and has a long shelf life. Research documented later in the proposal shows that the technology is efficient, safe and produces a digestible feed with good nutrient qualities. The extruded material can then be sold as animal feed ingredient to be blended into complete livestock diets.
The initial step involves grinding the litter, then mixed with a fat ingredient such as waste restaurant grease, whole soybeans, poultry mortalities or partially dried hog manure and then fed into the extruder. The high-pressure environment of the extruder raises the temperature of the mixture sufficiently to kill microorganisms and destroys cellular structures, thus making a sterile product. Additionally, the availability and digestibility of the nutrients are enhanced. The mixture exits the extruder at approximately 20% moisture. A thermal drying process reduces the moisture level to 10% or less to allow warehouse storage of the extruded materials.
The proposed extrusion process involves the use of dry extrusion as a method of converting poultry litter, along with daily mortality on broiler or layer operations, into useable animal feed supplements. In summary, the process involves:
The extrusion process has been shown in numerous university studies to completely eliminate pathogens in the finished product providing the extruder is operated at specific time, temperature and pressure parameters. The extruded materials are proven to be highly digestible. The process has FDA approval.
Numerous references exist to describe the extrusion process and studies that have been conducted on poultry wastes (whole birds, feathers and offal, hatchery waste and litter). Several references to utilizing the extrusion process for converting poultry waste into animal feed are listed below:
Kentucky Enrichment, Inc is a Kentucky based corporation. It proposes to establish a spent hen processing facility (11,000 sq. ft.) in western Kentucky.
The overall project calls for a capital requirement of about $350,000.
The Kentucky Enrichment plan is carefully researched, designed, and has lined up a proven management team. Under the leadership of Mr. Cornelius Van Milligen, the team has a documented record of building a company from start-up to profitability.
Kentucky Enrichment, Inc will meet the challenges offered by the poultry growing facilities in western Kentucky. Kentucky is new in broiler production, but the long term effects of thousands of tons of litter applied to local soils is well known. The company is committed to bringing value the residents and agricultural industry.
Kentucky Enrichment, Inc is a company committed to enabling the poultry producers of this state to continue to grow. It will help solve the growing litter disposal problem as well as offer quality, price-competitive feed to the market.
Kentucky Enrichment’s solution will also reduce the potential burden on the environment inherent in large-scale animal production facilities.
The company’s officers are committed to ongoing research into methods of recycling waste and the development of clean technology for industrial farm wastes. We believe our methods will eventually be adapted to deal with a range of animal waste problems and contribute to EPA goals of sustainable development in the agricultural industry.
This method of recycling litter is a new and innovative technology in this industry. Because of cost/benefit ratios, prior methods of disposal essentially revolved around some version of land application. Dry extrusion rending has the advantage of obtaining some greater use from the litter.
Our plan will allow us to remove the environmental risk to the poultry farm, and will provide livestock producers with a lower-cost feed alternative. Because of the restrictions on land application and composting, our technology will not only keep poultry operations in Kentucky, but will allow for the expansion or addition of poultry farming operations, with no additional environmental impacts sustained as a result of the increases in farm waste.
The proposed type of disposal method is unique to the industry. The combination of lack of disposal alternatives and environmental regulations are stumbling blocks to the industry. Also, these stumbling blocks inhibit the State’s objective of job creation. Our methods can solve these problems and give Kentucky producers an unparalleled competitive edge with regard to other disposal means used in other areas of the country as well as increasing employment.
Additionally, Kentucky Enrichment anticipates this technology may be adapted to other animal waste problems in the future. We are committed to ongoing research into clean technology solutions to production waste.
Kentucky Enrichment, Inc has developed the following strategies to gain and maintain a competitive edge in the marketplace:
To ensure a steady supply of litter into the facility, the company suggests involving the growers by way of ownership in an agricultural cooperative. A portion of the cooperative will be owned by growers therefore giving them a financial interest in the project and including them in the value adding process.
Kentucky Enrichment, Inc does not have to "create" a demand/market but rather has the opportunity to solve critical industry problems while generating a profit. The unfortunate drought experienced in some parts of the Midwest and South reduce the supply of forage crops for late summer and winter feeding of cattle. Last winter’s winter forage was largely fed by late fall due to the shortage of hay locally in Kentucky. It appears that again this year the forage shortage will force cattle farmers to decide between reducing their herds or buying expensive out of state hay. The extruded litter produced by this demonstration site will provide a opportunity for farmers to become adjusted to the feed qualities and economy of this new feed ingredient.
The production facilities will initially house enough equipment to process the litter from 30 poultry houses hens per year. This will generate approximately 6,000 tons of finished ingredient per year.
Since this facility is essentially modular in its equipment needs, an expansion after the demonstration phase can be economically accomplished by adding the required units depending upon the production desired.
Kentucky Enrichment, Inc understands the critical role that price and sales play in the ultimate success of the company. Management is carefully developed a pricing structure and market analysis that will exploit the potential of animal byproduct derived feed. Previously conducted market research by the company indicates acceptance and demand for the product. The company-staffing plan includes Mr. Dave Traver to market the product to the major local growers in the area. Mr. Traver has a highly successful sales background. His experience provides the company with an experienced sales person who knows the key customer needs and understands the marketplace and forces that drive the market.
The following people are involved in Kentucky Enrichment, Inc:
Brief Description and roll of key personnel:
Mr. Cornelius Van Milligen, President
Mr. Van Milligen is thoroughly experienced in handling varied waste and environmental problems in several industries. He has been through the start-up process of other successful ventures and knows the efforts required to launch a new company. He has the vision beyond the present to identify new additions to current business in order to keep the enterprises viable for the long term.
Mr. David Van Milligen, Vice President in Charge of Operations
Mr. Van Milligen has extensive experience in day to day and month to month operations of a company. His past experience has made him knowledgeable in plant equipment selection, operation and maintenance. He understands the commitment to the producer customer and the buyer customer to operate a facility in a manner that consistently meets their demands.
Mr. David Traver, Director of Sales and Marketing
Mr. Traver has many years of sales and marketing experience in the area of livestock nutrition. He has many established feed manufacturer and ingredient broker contacts. He also has 11 years of experience with the application, operation and maintenance of extrusion equipment. His intimate knowledge of the application of this innovative process technology is key to the success of the operation.
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| Building | $50,000 |
| Land | $10,000 |
| Equipment and installation | $250,000 |
| Working capital | $40,000 |
| Total | $350,000 |