Gold and Silver Poultry, Piggery. Farm. Hydrated lime is used as a disinfectant for the treatment of manure and other digestive tract contents (PT 3). The function of hydrated lime is to kill viruses, bacteria and parasites present in the media to which it is applied. Lime (calcium oxide, quicklime) is one of the least expensive disinfectants and is reasonably good for use around livestock. Powdered lime may be scattered about yards or lots or swept over concrete floors for general disinfection. Ponds Hydrated lime, or calcium hydroxide, is also used in commercial fish production ponds. While it will increase total hardness (the calcium component), and temporarily increase the total alkalinity (the hydroxide component), its primary effect is to raise the pH of mud and water quickly and dramatically.