The increase in population and rapid growth in world economies will lead to an enormous increase in demand for animal products, a large part of which will be from developing countries. Future hopes of feeding the millions and safeguarding their food security will depend on the enhanced and efficient utilization of alternative feed resources that cannot be used as food for humans. In addition, a large area of land in the world is degraded, barren or marginal and the amount is increasing every year. This also calls for identification and introduction of new and lesser known plants capable of growing in poor soils, which can play a vital role in the control of soil erosion in addition to providing food and feed. Application of agro-industrial by-products in bioprocesses may serve a dual role in providing alternative substrates, and help to reduce environmental pollution that their disposal may otherwise cause. Bioconversion of fibrous materials by solid-state fermentation (SSF) has received increasing interest in producing animal feeds due to its lower energy requirement, low effluent generation, and direct applicability of the fermented products for feeding and partly because of environmental concerns regarding the disposal of solid wastes. Sugarcane bagasse is a fibrous residue of sugarcane stalks left over after the crushing and extraction of the juice. Bagasse with its low ash (2.4%) content offers numerous advantages in comparison to other crop residues such as rice straw and wheat straw which have 17.5 and 11.0% ash contents respectively, for usage in bioconversion processes using microbial cultures. In addition, bagasse can be considered as a rich solar energy reservoir due to its high yields (about 80 t/ha in comparison to about 1, 2 and 20 t/ha for wheat, other grasses and trees, respectively) and annual regeneration capacity. One potential use of the bagasse is as a feedstuff for domestic ruminants. Sugarcane bagasse is a fibrous residue of sugarcane stalks left over after the crushing and extraction of the juice. Bagasse with its low ash (2.4%) content offers numerous advantages in comparison to other crop residues such as rice straw and wheat straw which have 17.5 and 11.0% ash contents respectively, for usage in bioconversion processes using microbial cultures. In addition, bagasse can be considered as a rich solar energy reservoir due to its high yields (about 80 t/ha in comparison to about 1, 2 and 20 t/ha for wheat, other grasses and trees, respectively) and annual regeneration capacity. Although some commercial uses for the surplus bagasse have been developed, its accumulation causes a serious waste problem for the sugar industry. Several researchers reported that the use of a direct fed microbial such as A. oryzae increased DM digestibility of high concentrate diets through enhanced fiber digestion as well as DM intake of TMR or silage and milk production. More recently, it has been suggested that the A. awamori not only induces a degradation of shochu distillery by-product with wheat bran and the conversion of the mixture into animal feed, but also improves fiber digestibility to some degree when adding 5 to 20% of the fermented feed to formula feed for beef cattle Kagoshima, Japan. Market Survey The demand for food of animal origin is increasing in India due to economic growth, population growth and urbanisation, which in turn means greater use of cereals and oilseeds for animal feed. This is a trend in most developing countries. India is going through a livestock revolution. In the past two decades the increase in demand were coped mainly by expanding livestock population. However, declining land areas per agricultural population forces India to intensify livestock production. Today, we are faced with an extraordinary set of challenges of increasing food production of animal origin with all the other limitations like land, water, weather etc and the question is how would we meet these demands. We also have another challenge that the food we produce has to be highly cost efficient to make it more sustainable. There animal husbandry is divided into three major industries: India has one of the largest populations of cattle in the world and ranks number one in milk production. The country produces about 80 million tons of milk per annum with an annual per capita consumption of 240 g/day. The dairy industry is spread across the whole country and it is growing at an annual growth rate of 5%. Milk is from cows or buffaloes and the buffalo breeds produce milk with a fat content of 7 to 8% compared to cow's milk, which has a fat content of 4%. Most of the feed comes from grazing although a small portion of concentrate feed containing various feed additives for enhancing milk production is being given to cattle. Most of the feed manufacturers in India make both poultry as well as cattle feed. The demand for usage of cattle feed will grow if the feed is economically viable. The challenge is to make a nutritionally competent feed using low-grade fibrous crop residues, which are mainly by products from other industries along with feed additives. Cattle feeding practices are very traditional. Farmers choose their own ingredients and prepare their own formulations. The productivity of cattle is very low because of poor genetic makeup and so there is a limitation of using high quality feed. About 10% of the cattle herd is of the cross bred varieties but this is slowly increasing and more and more crossbred population of either Jersey or Holstein-Friesian are coming into existence. In the coming years pure bred varieties also could increase. In the past several decades, marked changes in livestock production have paralleled shifts in farm animal feed formulation. Bolstered by spikes in feed prices and increasing demand from downstream farm supplies wholesalers, the Farm Animal Food Production industry's revenue has increased at an annualized rate of 3.7% to $31.7 billion during the past five years. Global population growth and expansion of developing economies have further boosted demand for meat, requiring greater supply of feeds to match growing production. Despite a decline in per capita meat consumption in the United States, demand for farm animal feed was maintained by downstream industries, such as dairy farms. Consequently, industry revenue is expected to rise another 1.5% during 2012.... Purchase to read more Asia is expected to hold nearly 29% of the animal feed additives market by 2016.