Powering Profitability: How Feed Industry Companies are Addressing Energy Use for Long-Term Sustainability
Written by: Erica Burson | September 26, 2024
Energy, including fuel, electricity, heating, cooling and steam generation, is a significant cost for the feed industry. Several members of the American Feed Industry Association (AFIA) have been working to reduce energy costs by switching to more efficient equipment, developing more efficient processes and investing in renewable energy generation.
As part of our efforts to support sustainability in the animal food industry, the Institute for Feed Education and Research has identified energy use the consumption of energy during the production, processing and distribution of feed products — as a “material” issue. These examples shed light on how profitability and sustainability can go hand in hand.
More Efficient Equipment
Hallway Feeds, of Lexington, Ky., manufactures equine feed for thoroughbred racing and breeding along with Olympic and Western disciplines. Hallway has generated energy savings through replacing light fixtures, updating their heating, ventilating and air conditioning (HVAC) system and replacing their steam boiler with new, more efficient models. These investments in upgraded equipment have reduced operational costs and supported the company’s long-term financial sustainability.
More Efficient Processes
Alltech, Inc., headquartered near Lexington, Ky., with locations in over 120 countries, produces feed and nutritional supplements for livestock and pets. The company conducts energy audits to identify areas for efficiency improvements. Alltech has reduced fuel costs by working with a logistics partner and optimization software to minimize shipments, travel time, distance and total miles while maximizing trailer utilization and savings. 
APC, Inc., of Ankeny, Iowa, creates functional proteins sourced from animal blood that would otherwise become waste. The company saves energy through more efficient production, specifically capturing heat produced by dryers and reusing it in other processes.
Renewable Energy
Alltech has installed solar panels at several locations, strategically choosing facilities in areas with little rainfall to maximize electricity generated. APC also installed solar panels, which have reduced the company’s use of electricity and natural gas and annually generate 5,000,000 kilowatt hours of energy.
Hallway Feeds installed a solar array, which supports up to 85% of the company’s energy consumption. Solar energy has reduced operational costs by limiting electricity purchased from the grid. Due to increasing electricity prices, Hallway has found that its investment in solar power is yielding a return sooner than the nine years, which the company initially forecast.
Western Milling, of Goshen, Calif., with locations in the central valley of California, is a feed manufacturer and vertically integrated animal, people and plant nutrition company. The company achieved fuel savings by replacing a fleet of diesel trucks with increased capacity trucks that run on less expensive compressed natural gas (CNG). One source of CNG is biogas harvested from digesters on the dairy farms that receive Western Milling deliveries. Western Milling values the cost savings as well as supporting its dairy customers by purchasing their biogas.
Considerations
When considering whether to invest funds and staff time in energy savings, company leadership may ask their teams:
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Will this increase long-term profitability?
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Are there federal or state tax incentives?
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How can we incorporate employee ideas?
Investing in energy-saving equipment, processes and generation methods should increase a company’ s long-term profitability, which enhances sustainability. Energy efficient solutions may also increase sustainability as quantified by measuring greenhouse gas emissions reductions and community support.
For more information on AFIA member companies' energy savings and other sustainability efforts, check out IFEEDER’s material issues resources and the Animal Food Industry Sustainability Toolkit.