s7.5 biofortified maize and relevance of innovative maize-poultry value chains
DESCRIPTION
Presentacion de 11th Asian Maize Conference which took place in Beijing, China from November 7 – 11, 2011.TRANSCRIPT
Biofortified Maize and
Relevance of Innovative Maize-
Poultry Value Chains
Prakash Sadashivappa, Modinsab Attar* and Vijesh V Krishna
CIMMYT – India & *UAS, Bangalore
Structure of the presentation
Introduction : Maize in Indian agriculture
Background: Maize poultry linkage
Research objectives
Data & Study area
Results
Conclusion
Maize in India
• Sixth largest producer
of maize in the world.
• Third major food grain
next to wheat and rice.
• Contribution of 8% to
national food basket,
Rs.100 billion to
agricultural GDP.
• “Mini maize revolution”
in last decade.
• Most preferred cereal.
FAOSTAT, 2011
Maize market growth in India
• Rapid economic growth.
• Large population with growing middle-class
population - 45% of population under age 25,
representing demand center for meat and eggs.
• Changing life styles, changing consumption
patterns, specialty maize products.
• Govt’s “egg-a-day” policy for school children.
• 15% annual inflation for food driving food and
feed commodity prices above the world market.
Maize consumption pattern
0
2
4
6
8
10
12
14
16
18
20
1969-71 1979-81 1989-91 1994-96 1999-2000 2002-03 2007-08
Total Non-feed Feed
Growth rate of maize in India (percent per annum)
Total Non-feed Feed
1970-80 0.2 -0.5 14.3
1980-90 3.2 1.5 13.4
1990-1995 2.7 -0.1 8.8
1995-2000 4.2 -0.6 14
Source: Directorate of Economics and Statistics., 2010; Narayanan et al., 2008
Poultry sector in India • Transformation from age-
old backyard farming into
a dynamic industry (15 %
growth)
• Third largest egg
producer, fifth largest
broiler producer in the
world.
• Rs. 350 billion to GNP.
• 50% of total meat
production.
• Huge potential for egg
and broiler industry.
Feed compsition of poultry
• Energy : 60-65% – cereals (mainly maize)
– cereal by-products, animal fats and vegetable oils
• Protein: 30-35% – soybean meal
– animal protein sources: fishmeal, meat and bone meal
– crystalline amino acids: methionine, lysine, threonine
• Mineral supplements: 3%
– calcium supplements, phosphorus supplements, trace minerals,
sodium sources
• Miscellaneous: (2%) vitamin supplements & premixes, non-
nutritive feed additives: enzymes, antibiotics.
Feed is the single largest cost item in poultry.
Role of amino acids in poultry feed
Normal
maize QPM
% change over
normal maize
Ideal nutrient level range in poultry
feed for
Broilers Layers
Protein (%) 8.00 -
11.00
8.00 –
11.00
19.50 – 22.50 15.00 – 18.00
Lysine
(% or unit/kg)
0.26 0.42 30 1.14 – 1.40 0.45 – 0.70
Tryptophan
(% or unit/kg)
0.04 0.09 41 0.18 – 0.22 0.12 – 0.17
Methionine
(% or unit/kg)
0.18 0.19 4 0.50 – 0.58 0.20 – 0.30
• The dietary requirement for proteins actually reflects the
requirement of amino acids contained in the protein.
• Optimum growth, feed conversion, egg size, etc.
• Essential and non-essential amino acids
Sources: FAO, 1992; Gupta et al, 2009; Hellin and Erenstein, 2009;
Prasanna et al, 2001; Vivek et al., 2008; Panda et al, 2009.
QPM impact on animal feed • Improved growth in pigs and poultry with QPM (Asche et al.,
1985; Lauderdale, 2000; Sullivan et al., 1989)
• In Brazil and El Salvador, soybean meal usage reduced by about
50% (Lopez-Pereira, 1992).
• In Ghana, the QPM is being used both in human nutrition as
well as animal feed.
• In USA, 2.8 percent of cost of production for broilers and 2.6
percent was the cost reduction for layers (Lopez-Pereira, 1993).
• In Kenya found a 5 percent cost reduction (Nyanamba et al.,
2003; De Groote et al., 2010)
• In China, the effect of replacing normal maize with QPM was
prominent for pigs as better weight gained than for poultry
animals at various growth stages (Sofi et al., 2009).
Need for high methionine maize
• First limiting amino acid in maize-soy based poultry
diet.
• Increased body and breast meat weight of broiler
chicks with increasing dietary methionine content in
feed (Mack, et al., 2010; Panda et al., 2010).
• High levels of egg output or feather growth is found to
be associated with high levels of methionine (FAO,
2011).
• Positive influence of methionine on the poultry bird
immune system (Rubin et al., 2007).
• High cost of synthetic methionine.
Study objectives
1. What is the role of biofortified high
methionine maize in the Indian
poultry industry ?
2. What are the innovative institutional
innovations required to channelize
the biofortified maize in India ?
Data & study area
• Interview based survey of poultry
growers.
• Consultation with maize scientists, feed
industry consultants, animal nutrition
and poultry specialists, agricultural
economists.
• Maize farmers survey.
Study area and sampling
Ownership Output Number of firms
(% in sample)
Owned Broiler 75
(41)
Layer 72
(39)
Integrated Broiler 38
(21)
Total 185
(100)
Source of map: Neelam Chowdhury,
CIMMYT/AWhere
Results:
Feed sources of poultry firms
11%
89%
Broiler
92%
4% 4%
Layers Only feed-mixing
Only ready-madefeed
Ready-made feed& feed-mixing
Sources of limiting amino acids
Sources
Broiler firms (n =75 ) Layer firms (n = 72)
% firms quantity obtained
(kg/'000 birds)
% firms
quantity obtained
(kg/'000 birds)
Mineral mixture 81 9 3 0.02
Synthetic source 1 0.10 49 13
Maize 88 8 94 56
Soy 63 27 93 279
Fish 1 1 46 54
Sunflower 1 0.02 64 24
Sorghum 0 21 4.18
Total lysine 88 46 94 426
Recommendation 50 340
i. Lysine
Sources of limiting amino acids
Sources
Broiler firms (n =75 ) Layer firms (n = 72)
% firms quantity obtained
(kg/'000 birds)
% firms
quantity obtained
(kg/'000 birds)
Mineral mixture 84 2 0
Synthetic source 0 0 1 0.01
Maize 88 12 94 9
Soy 63 6 93 61
Fish 1 0.11 46 8
Sunflower 1 0.01 64 8
Sorghum 0 21 6.75
Total tryptophan 88 20 94 86
Recommendation 20 60
ii. Tryptophan
Sources of limiting amino acids
Sources
broiler firms (n =75 ) layer firms (n = 72)
% firms quantity obtained
(kg/'000 birds)
% firms
quantity obtained
(kg/'000 birds)
Mineral mixture 84 5 6 0.11
Synthetic source 1 0.19 78 30
Maize 88 6 94 38
Soy 63 6 93 56
Fish 1 0.29 46 21
Sunflower 1 0.01 64 16
Sorghum 0 21 3.19
Total methionine 88 17 94 162
Recommendation 20 170
iii. Methionine
Factors influencing application of
amino acids
• Multivariate regression analysis – single
regression model with more than one
outcome variable.
• Broiler – maize price significant negative
influence.
• Layers – soy price, de-oiled rice bran, liver
powder, toxin binder, agricultural ownership
influence significantly.
• Regional differences.
Amino acid consumption by poultry firms
(Rs./bird)
Total feed cost of firms
using amino acid
%
difference
in feed
cost
below
recommen
dation
above
recommen
dation
Lysine
(i) Broiler 58.44 116.56 99.45***
(ii) Layer 543.63
694.31 27.72***
Tryptophan
(i)Broiler 52.85 103.25 95.36***
(ii) Layer 411.62 688.31 67.22***
Methionine
(i) Broiler 57.21 121.23 183***
(ii) Layer 629.81 714.04 13.37
Total revenue of firms
using amino acid
% difference in
revenue
below
recommen
dation
above
recommen
dation
95.09 95.09 0.005
713.49 731.81 2.57
93.93 95.62 1.79
724.50 726.75 0.31
95.53 94.77 -0.79
721.68 741.41 2.73
Feed cost share of poultry firms
below the recommended
dosage
above the recommended
dosage
Maize Soy Mineral
Mixture
Maize Soy Mineral
Mixture
Lysine
Broiler 44.74** 17.56*** 36.44*** 37.14 37.37 21.18
Layer 38.31 17.15*** 2.78* 34.25 29.78 0.04
Tryptophan
Broiler 43.92 9.98*** 44.29*** 39.59 35.42 21.78
Layer 47.35** 15.20*** 5.42*** 33.53 27.82 0.12
Methionine
Broiler 41.42 20.90** 35.17** 40.59 32.26 24.18
Layer 36.11 24.45* 1.12 33.19 31.20 0
Potential of high methionine maize
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
0 10 20 30 40 50 60 70 80 90 100
Pro
bab
ilit
y o
f ad
op
tio
n
Price
Probability of Yes
Probability of Can't say
Maize poultry value chains
• Contract farming – vertical integration.
• Local trader playing a major role.
• Feed industry have a positive response
towards contract farming with maize
farmers.
Maize poultry value chains
Maize farmer
Poultry farmer
Intermediary Feed company Labeling &
Certification
Scenario 1 Scenario 2
Producer
Market
Consumer
Monitoring & implementation
cost
The grain output of biofortified maize being credence in nature can only be
channelized in two ways.
Conclusions • Significant inter-firm
variation with respect to use
of essential amino-acids.
• Farmers tend to overuse the
amino acids.
• Farmers demand for
biofortified maize is high.
• Scope for improvement in
the methionine levels in
poultry diet.
• Direct contract farming with
poultry firms would generate
maximum profits.
THANK YOU
Maize-poultry growth predictions
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1965 1975 1985 1995 2005 2015
Maiz
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secto
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Po
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op
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Poultry poulation in India (million no.)
Maize demand (million tonnes)
Maize demand predicted (million tonnes)
Expon. (Poultry poulation in India (million no.))
Variables Total amino acid Methionine Lysine Tryptophan
Maize price †
(Rs./kg) -1.00* -0.35 -1.24** -0.76
Soy price†
(Rs./kg) -0.56 0.54 -1.13 0.06
Mineral mixture
price† (Rs./kg) 0.05 -0.07 0.10 0.14
Capacity utilization 0.001 0.002 0.002 0.001
Town distance 0.01 0.0001 0.01 0.004
Duration 0.17*** 0.19*** 0.18*** 0.15***
Bangalore rural 0.58*** 0.52** 0.64*** 0.61***
Davanagere 0.52** 0.49* 0.54** 0.64***
East Godavari -0.03 0.16 0.02 0.09
Intercept -0.30 -6.31 1.02 -4.29
R-square 0.64 0.43 0.65 0.68
Note: Dependent variable: Log of amino acid; † indicates log of respective variables.
***, ** stands for significance, at 1 % and 5 % respectively.
Factors influencing application of essential amino acids for broiler firms
Variables Total amino acids Methionine Lysine Tryptophan
Coefficients of the multivariate regression analysis (standard error)
Maize price† (Rs./kg) 0.16 0.19 0.11 0.28
Soy price† (Rs./kg) -0.60* -0.53** -0. 62* -0.72*
Sunflower price† (Rs./kg) -1.03 -0.73 -1.19 -1.32
Groundnut price† (Rs./kg) -0.58 -0.49 -0.60 -0.80
De-oiled rice bran† (Rs./kg) -1.46** -1.55*** -1.41* -1.50*
Fish price† (Rs./kg) -0.62 -0.70 -0.65 -0.47
Synthetic lysine price† (Rs./kg) 0.15 0.15 0.15 0.12
Synthetic methionine price† (Rs./kg) -0.02 -0.01 -0.03 -0.01
Phytase enzyme price† (Rs./kg) 0.02 0.02 0.01 0.06
Liver powder price† (Rs./kg) -0.42* -0.45* - 0.40 -0.38
Toxin binder price† (Rs./kg) -0.64*** -0.55*** -0.66*** -0.75***
Trace minerals price† (Rs./kg) 0.24 0.16 0.28 0.24
Agricultural land ownership -0.26** -0.28*** -0.26 -0.26*
Duration 0.02 0.02 0.02 0.02
Bangalore rural -0.51 -0.48 -0.53** -0.38
Davanagere -0.61*** -0.53*** -0.64*** -0.62***
East Godavari -0.86*** -0.86*** -0.86*** -0.86***
Intercept 12.11 9.99** 12.13* 11.47*
R-square 0.57 0.62 0.52 0.51
Factors influencing application of essential amino acids for layer firms
Variables Coefficient (standard error)
Yes over no Can’t say over no Yes over can’t say
Maize price (Rs./kg) -0.07
(0.46)
-0.20
(0.48)
0.13
(0.32)
Bid amount (Rs./kg) -0.06
(0.01)
*** -0.04
(0.01)
**
*
-0.02
(0.01)
**
Knowledge about amino acids 1.71
(0.84)
** 1.23
(0.82)
0.49
(0.51)
Town distance -0.01
(0.05)
-0.05
(0.05)
0.03
(0.04)
Poultry education & training 1.25
(1.10)
2.00
(1.06)
-0.75
(0.62)
Agricultural land holding -1.87
(0.90)
** -2.25
(0.87)
** 0.37
(0.55)
Duration -0.04
(0.01)
** -0.03
(0.01)
** -0.004
(0.01)
Capacity utilization 0.004
(0.01)
0.001
(0.01)
0.003
(0.01)
Bangalore 3.32
(1.37)
** 1.16
(1.34)
2.16
(0.78)
**
*
Davanagere 1.75
(1.11)
0.75
(1.06)
1.00
(0.70)
East Godavari 1.86
(1.12)
* 0.44
(1.07)
1.43
(0.79)
Intercept 4.40
(4.75)
6.54
(4.93)
-2.14
(3.38)
Pseudo R-square 0.22
Multinomial logit analysis of factors influencing the adoption of QPM
Maize Poultry Value Chains
32% Rs. 75 22% Rs. 79 5% Rs. 114 41% Rs. 116
1% Rs. 900 71% Rs. 877 8% Rs. 858 20% Rs. 860
64% Rs. 1000 6% Rs. 943 21% Rs. 1057
9%
Rs. 1118
Seed Production Units
Private Seed Companies
Regulated Market Village trader Taluk trader District trader
Neighbouring State
Poultry Farmers
Maize Farmers
Seed Distributors
Government farmers service centre
Village input dealer
Taluk input dealer
District input dealer