Maize

Group 12
Aayush Agarwal
Anshuman Jajodia
Goutham Babu Kamepalli
Prasun Banerjee
Ravi Teja B
Blash Commodity
Analysis Challenge
Contents
Introduction
Value Chain Analysis
Production in India
Indian acreage and yields
Global production
Global acreage
Export data
Competitor analysis







Uses
Human
Food
Alternative
medicine
Chemicals
Bio fuel Ornamental
Fodder
Commodity

Production method
Because it is cold-intolerant, in the
temperate zones maize must be planted
in the spring
Its root system is generally shallow, so
the plant is dependent on soil moisture
Many of the maize varieties grown in
the United States and Canada are
hybrids
Often the varieties have been
genetically modified to tolerate
glyphosate or to provide protection
against natural pests
For storing grain in bins, the moisture of
the grain must be sufficiently low to
avoid spoiling.

The word maize is derived from the Spanish form of the Indigeous Taino word for the plant,
maize
The maize plant is often 2.5 m in height, though some natural strains can grow 12 m. The stem
has the appearance of a bamboo cane consisting of nodes. A leaf grows from each node,
which is generally 9 cm in width and 120 cm in length

Introduction
Value Chain Analysis
Inputs Production
Collection/
Storage
Processing/
Manufactu
ring
Retail
Equipment
Seeds
Crop
Protection
Fertilizers
Lenders
Farm
Management
Companies
Growers
Independent
Agricultural
Retailers
Internal
Elevators
River
Elevators
Export
Terminals
Agri-Trading
Companies
Feed
Ethanol
Production
Food
Ingredients
Processed
Food and
Beverages
Food Retail
Restaurants
Ethanol
Blenders/Ga
soline Retail
Production in India
0
5
10
15
20
25
14
15 15
19
20
17
22 22 22
23
M
n
M
T

Yearly Maize production in India
Maize production in India has grown at a CAGR of 5.5 per cent over the last ten years from
14 MnMT in 2004-05 to 23 MnMT in 2013-14
Source : USDA
Acreage and Yield details
7.5
7.6
7.8
8.3
8.2
8.3
8.6
8.8
8.7
9.4
1.9 1.9 1.9 2.3 2.4
2
2.5
2.5 2.6
2.5
0
2
4
6
8
10
Acreage and Yield
Land used(Mn Hectare) Yeild(MT/Hectare)
The area under maize cultivation in the period has increased at a CAGR of 2.5 per cent
from 7.5 Mn hectare in 2004-05 to 9.4 Mn hectare in 2013-14
Productivity of maize (yield) has increased at a CAGR of 2.9 per cent from 1.9
MT/hectare in 2004-05 to 2.5 MT/hectare in 2013-14. Introduction of Single cross
hybrid (SCH) seeds coupled with adequate rainfall in 2007-08 contributed to 20 per
cent increase in yield.
Source :
USDA
717
700
716
795 800
825
834
886
863
967
0
200
400
600
800
1000
1200
Global maize production (Million Tonnes)
Global maize production (Million Tonnes)
Global maize production grew at a CAGR of 3.4% over the last 10
years

Global maize yields
grew at CAGR of 1.2%
over the last 10 years
4.9
4.8 4.8
5 5
5.2
5.1
5.2
4.9
5.5
4.4
4.6
4.8
5
5.2
5.4
5.6
Average Global Maize
Yield per hectare
Source : USDA
Global Maize Production
USA
37%
China
22%
Brazil
7%
EU
7%
Ukraine
3%
Argentina
3%
India
2%
Mexico
2%
Others
17%
Maize production by country
145 145
150
160 159 159
164
171
176 177
0
20
40
60
80
100
120
140
160
180
200
Global Acreage Details of
Maize Cultivation (in Million
Hectares)
Multi-faceted uses such as animal feed, ethanol production have been growth drivers
in the demand of maize. To serve this demand there has been an increase in supply-
side production and efficiency, resulting in an increased supply of maize
Source : USDA
Global Acreage details
India has witnessed a jump in maize exports from 2007-08. The increase in
export volumes is a result of increased production, higher realization and
demand for maize from international markets.
Export volume declined during the period 2009-2011 due to drought
conditions leading to low production.
Export Data
0.4
0.5
1.2
4.5
2.6
1.9
3.5
4.6
4.7
3
0
1
2
3
4
5
M
n
M
T

India Maize Exports
Exports
Source : USDA
Export Data
33%
27%
20%
8%
3%
2%
7%
India key maize export destination
Indonesia
Vietnam
Malaysia
Taiwan
Nepal
Bangladesh
52%
15%
11%
8%
6%
5%
3%
Global key maize importers
Others
Japan
European Union
South Korea
Mexico
Egypt
Source : USDA
Source : USDA
Top 3 Export
Destinations
India Brazil Argentina Thailand
Indonesia $ 427688 $ 344197 $ 131118 $ 5046
Vietnam $ 273962 $ 245758 $ 0 $ 65450
Malaysia $ 209420 $ 287264 $ 433912 $ 17999
Top 3 Export
Destinations
India Brazil Argentina Thailand
Indonesia 0 0 0 0
Vietnam 0 0 0 0
Malaysia 0 0 0 0
TOP EXPORT DESTINATIONS OF INDIA- Indonesia, Vietnam and Malaysia
Top Competitors with amount exported
Tariff Details
Competitor Analysis
Source : ITC
Source : ITC
Trade barriers of top importing
countries

S
o
u
t
h

K
o
r
e
a

8% global
import
No active
Trade
barriers
M
e
x
i
c
o

6% of
global
import
No active
trade
barrier
J
a
p
a
n

15% of
global
import
3 import
trade
barriers in
force(
presented
in further
slides)
Source: Market Access Map of ITC
Potential export Destination
Currently India does not export to Japan.
Japan being one of the major importing country of maize(15%
of share in global imports) is much closer to India compared to
USA, Brazil and Argentina
It would prove beneficial to India to increase export to Japan as
India would have a cost advantage due to lower shipping costs
Declining exports from USA and price parity offered by Indian
maize providers provides India an opportunity to increase export to
Japan
Source: India maize summit 14
Trade Barriers of Japan
T
r
a
d
e

B
a
r
r
i
e
r
s


Revised maximum residue limits for cumyluron pesticide
Prohibition of imports of the products constituting such as
prescribed in the Unfair Competition act
Prohibition of imports of the products constituting such act
of infringement of patent right, design right, trademark
right, neighboring right, plant breeders right and layout
design exploitation right
Source: Market Access Map of ITC
Recommendation
Farmers should be educated on handling post-harvest
cleaning, grading and switching to standardized packaging of
produce to meet export market requirement

Focus on post harvest management practices like bulk
handling and silos to reduce wastage

Rabi Maize could help meet demand requirements
consistently throughout the year

Better Farm to Agribusiness Linkages to enable efficient
procurement of produce
Source: India maize summit 14