This case study examines the performance of a Hongyang ring die pellet mill installed at a mid-sized beef feedlot in western Uruguay’s Soriano department, a region at the center of the country’s expanding grain-finishing sector. Over a 12-month operational period, the equipment delivered 8–10 metric tons per hour of finished cattle feed pellets with a Pellet Durability Index (PDI) consistently at or above 97%. The feedlot reported improved feed conversion ratios, reduced fines-related feed waste, and higher average daily gain among grain-finished steers destined for premium export markets.
Uruguay’s Evolving Feedlot Landscape
Uruguay has long been known for its pasture-based beef production. But the industry is changing. According to Uruguay’s Instituto Nacional de Carnes (INAC), the share of cattle finished on grain-based diets has risen from 9% of total slaughter in 2015 to 16.4% in 2024 through registered feedlots alone. Industry sources cited by the USDA Foreign Agricultural Service estimate that when smaller unregistered operations are included, grain-finished cattle may account for as much as 30% of the national total — approximately 350,000 to 400,000 head annually from roughly 100 registered feed yards, supplemented by another 300,000 to 350,000 head from smaller on-farm finishing operations.
This structural shift is driven by three forces.
Uruguay’s 2024/25 corn harvest reached record levels, ensuring abundant and competitively priced feed grains.
Global beef markets — particularly the USMCA region, the EU, and China — increasingly reward consistency in carcass quality, marbling, and weight.
The economic incentive: cost of gain at $2.00–$2.15/kg live weight, while finished steers sell at $2.70–$3.00/kg, providing robust margins.
However, feedlot profitability hinges on more than grain prices. Feed manufacturing efficiency and pellet quality directly influence animal performance, feed waste, and overall cost per kilogram gained. This is where equipment selection becomes critical.
The Operational Challenge
The feedlot in this case study — a family-owned operation finishing approximately 3,500 steers per cycle across two pens in Soriano — had been sourcing pelleted feed from a third-party mill. Three recurring problems prompted the decision to bring feed manufacturing in-house.
Delivered pellets frequently arrived with broken edges and excessive fines, sometimes exceeding 8% by weight. This created several downstream costs: fines separated during augering and feeding, leading to nutrient segregation; cattle sorted feed, leaving fine material uneaten; and automated feeding systems experienced clogging that required manual intervention.
During peak finishing seasons, the third-party mill prioritized larger customers, causing delivery delays. The feedlot was forced to maintain larger-than-optimal feed inventories, which increased storage costs and reduced feed freshness.
The feedlot wanted to experiment with locally sourced ingredients — including dried distillers grains, sorghum, and sunflower meal — but the third-party mill’s production schedule did not accommodate small-batch custom formulations.
In late 2024, the operation’s owners decided to procure an on-site pelleting line. Their requirements were straightforward: 8–10 metric tons per hour throughput for a standard beef finisher ration (primarily corn, soybean meal, and mineral premix), consistent pellet quality with minimal fines, and reliable after-sales support given their location far from major industrial centers.
Equipment Selection and Installation
After evaluating suppliers, the feedlot selected a Hongyang SZLH series ring die pellet mill configured for beef cattle feed production. The decision was influenced by several factors.
Hongyang’s technical team worked with the feedlot’s nutritionist to select an appropriate ring die compression ratio for their specific formulation, balancing throughput with pellet integrity for a corn-soybean-meal base.
The SZLH unit was fitted with a main motor sized for the target throughput range, with direct coupling to the die via a heavy-duty gearbox — eliminating belt-slip-related throughput fluctuations.
A single-layer conditioner with adjustable retention time was integrated upstream. Steam injection gelatinizes a portion of grain starch, improving pellet binding and contributing to rumen-degradable starch availability.
The installation was completed within four weeks of equipment delivery, with Hongyang providing remote commissioning guidance and on-site support during startup.
Performance Results: 12-Month Data
The feedlot began commercial production in early 2025. Production records from the first 12 months provide a clear picture of equipment performance.
The pellet mill consistently produced 8–10 metric tons per hour of beef finisher pellets, operating in a single 8-hour shift five days per week. Throughput at the upper end of this range was achieved with a 6 mm die, the standard diameter for feedlot cattle rations. The feedlot reported no unplanned downtime attributable to the pellet mill itself; scheduled maintenance was limited to roller and die inspection at manufacturer-recommended intervals.
Using the Holmen pellet tester method (100 g sample, 30-second test), the feedlot’s quality control lab measured PDI values of 97% or above across monthly spot checks. Fines content at the feeder face — measured by sieving a 500 g sample through a 2 mm screen — averaged below 2%. This is a meaningful improvement over the 8%+ fines the operation previously accepted from its third-party supplier.
While FCR is influenced by multiple variables — including animal genetics, health status, and environmental conditions — the feedlot’s nutritionist noted that FCR for grain-finished steers improved from a historical average of approximately 6.2:1 to 5.8:1 during the observation period. Lower fines meant less feed sorting and more consistent nutrient intake.
Steers on the pelleted ration gained an average of 1.45–1.55 kg per day during the finishing phase, placing the operation in the upper tier of Uruguayan feedlot performance benchmarks. The operation’s manager attributed this partly to reduced feed waste and partly to improved pellet intake consistency.
Specific mechanical energy consumption averaged 16–18 kWh per metric ton of finished pellets, within the expected range for a corn-soybean-meal beef finisher formulation processed through a ring die pellet mill of this capacity class.
Customer Perspective
In follow-up discussions, the feedlot manager highlighted three areas where the equipment met or exceeded expectations.
“We feed the same ration formulation every day, and the machine produces the same pellet quality every day. That may sound simple, but anyone who has run a feedlot knows that consistency is where value is made or lost.”
The pellet mill operated with one operator per shift, whose responsibilities included monitoring the control panel, loading raw materials, and performing basic visual quality checks. The machine’s steady-state operation required minimal adjustment once parameters were set.
The feedlot is evaluating the addition of a calf starter pellet line using the same ring die pellet mill platform. Because the SZLH series supports die changes for different pellet diameters and compression ratios, the manager sees a path to expanding the product range without acquiring a separate pelleting line.
Industry Implications
This case aligns with broader trends in Uruguay’s beef sector. As grain-finishing continues to grow — USDA projections suggest the trend will persist as long as corn remains affordable and export markets reward grain-fed quality — on-farm feed manufacturing is becoming a logical capital investment for mid-sized and large feedlots. The equipment requirements are clear: machines must be robust enough for daily commercial production, simple enough to operate with available labor, and supported by manufacturers who understand the specific nutritional and operational demands of ruminant feed.
Hongyang’s approach — matching die compression ratio to formulation, configuring motors and conditioners for cattle feed rather than applying a one-size-fits-all setup, and providing technical support during and after commissioning — reflects an understanding of these requirements.
Conclusion
The installation of a Hongyang ring die pellet mill at a Soriano-based beef feedlot demonstrates that reliable pelleting equipment, properly configured for a specific formulation and production goal, can contribute meaningfully to feed quality, animal performance, and operational economics. Over 12 months, the equipment delivered throughput stability, high pellet durability, and operator-friendly operation — outcomes that matter to feedlot managers balancing tight margins against premium market demands.
For a Uruguayan beef industry that is increasingly defined by grain-finishing and export quality standards, on-site feed manufacturing with dependable machinery is not a luxury. It is a competitive necessity.
Uruguay Instituto Nacional de Carnes (INAC) slaughter statistics 2015–2024; USDA Foreign Agricultural Service Livestock and Products Annual for Uruguay, 2025; industry feedlot cost-of-gain estimates as reported by USDA FAS.
Post time: Jun-16-2026
