In Ethiopia the availability and cost of feed is one of the major limitations to poultry production because of the fact that there is shortage of cereal grains, protein sources, vitamins and mineral supplements required to formulate balanced poultry rations. The major cost of production of egg and meat in commercial poultry production is feed. Feed cost can be 55-75% of the total production expenses depending on the geographical location, season and country. The ever-rising prices of feed ingredient remained to be the greatest single item determining the profit margins in poultry farming, especially in developing countries. The most appropriate strategy for these countries is to develop diets which allow locally available new ingredients to be used. Such an approach would reduce feed costs as well as the dependency on imported and conventional feed materials.