Maize: commodity analysis

8/11/2019 Maize: commodity analysis

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MaizeGroup 12

Aayush Agarwal

Anshuman Jajodia

Goutham Babu Kamepalli

Prasun Banerjee

Ravi Teja B

Blash Commodity

Analysis Challenge


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Contents

Introduction

Value Chain Analysis

Production in India Indian acreage and yields

Global production

Global acreage Export data

Competitor analysis


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Uses

HumanFood

Alternativemedicine

Chemicals

Bio fuelOrnamental

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


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Value Chain Analysis

Inputs ProductionCollection/

Storage

Processing/Manufactu

ringRetail

Equipment

Seeds

Crop

Protection

Fertilizers

Lenders

Farm

ManagementCompanies

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


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Production in India

0

5

10

15

20

25

14 15 15

19 20

17

22 22 2223

MnMT

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


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Acreage and Yield details

7.5 7.6 7.88.3 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

02

4

6

8

10Acreage 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


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717 700 716

795 800825 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 10years

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 MaizeYield per hectare

Source : USDA

Global Maize Production


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USA

37%

China

22%

Brazil

7%

EU

7%

Ukraine

3%

Argentina

3%

India

2%

Mexico

2%

Others

17%

Maize production by country

145 145150

160 159 159164

171176 177

0

20

40

60

80

100

120

140

160

180

200

Global Acreage Details of

Maize Cultivation (in MillionHectares)

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


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India has witnessed a jump in maize exports from 2007-08. The increase inexport 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

23

4

5

MnM

T

India Maize Exports

Exports

Source : USDA


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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

OthersJapan

European Union

South Korea

Mexico

EgyptSource : USDA

Source : USDA


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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


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Trade barriers of top importing

countries

SouthKo

rea 8% global

import No active

Tradebarriers

Me

xico 6% of

globalimport

No activetradebarrier

Ja

pan 15% of

globalimport

3 importtradebarriers in

force(presentedin furtherslides)

Source: Market Access Map of ITC


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Potential export Destination

Currently India does not export to Japan.

Japanbeing one of the major importing country of maize(15%of share in global imports) is much closer to India compared toUSA, Brazil and Argentina

It would prove beneficial to India to increase export to Japan asIndia would have a cost advantage due to lower shipping costs

Declining exports from USA and price parity offered by Indianmaize providers provides India an opportunity to increase export toJapan

Source: India maize summit 14


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Trade Barriers of Japan

TradeBar

riers

Revised maximum residue limits for cumyluron pesticide

Prohibition of imports of the products constituting such asprescribed in the Unfair Competition act

Prohibition of imports of the products constituting such actof infringement of patent right, design right, trademarkright, neighboring right, plant breeders right and layout

design exploitation right

Source: Market Access Map of ITC


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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 bulkhandling 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

Maize: commodity analysis

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