Download - 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