Research collaboration between MARDI and JICA was established for the development of livestock feeds from oil palm by-products. The feeds are targeted mainly for ruminant animals and other species such as horses, deer and ostriches. Large scale utilization of OPF as animal feed involves various commercial production segments which include raw materials handling and processing (both at the farm and the mill), plant capacity and feasibility; economical processing methods for the production of marketable products and various others. The major operations in the production of OPF pellets and cubes is shown in Figure 1. The success and economics of production of OPF based feed depends on efficiencies in field collection and transportation of OPF, pre-drying and drying systems, and manufacturing into pellet and cube forms. Major cost components in the production of OPF pellets and OPF cubes are in collection, drying and packaging.