We see quite a few projects go in the red and get shut down as a result of feed costs being a high percentage of recurring costs of such operations. Lack of local processing machinery is another reason, even though feed ingredients many be locally produced.
g+c- is involved in several projects where it is producing feed like corn, soybeans, cassava etc and is utlizing regional feed mills on a processing-toll fee basis to produce animal feed. We provide all the other ingredients, vitamins, nutrients etc to create balanced feed.
This is expected to result in more fish farms and poultry operations being launched. We are also working with partners to set up own farms in certain cases and work with local contract farmers in supplying them fingerlings and day-old chicks, pullets etc for their direct purchase and often outsourcing the grow out phase wherein the farmer is paid by weight, quality, incentive bonus etc.