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MAIZE

Maize is a cereal grain plant, also

commonly known as corn.


Maize requires warmer temperatures

than common pastures species in New Zealand.


In many developing countries,

maize is the primary source of carbohydrates in human diets.


In developed countries, maize is

generally grown for its use as a high energy live stock feed.
Most large contractors are also

traders of maize.

TYPES
Depending on their colour and taste, maize grown around the

world is generally categorized into two broad groups: yellow and white.
Yellow maize constitutes the bulk of total world maize production

and international trade. It is grown in most northern hemisphere countries where it is traditionally used for animal feed.
White maize, which requires more favourable climatic conditions

for growing, is produced in only a handful of countries, the United States, Mexico and in southern Africa. White maize is generally considered a food crop.
Market prices are usually higher for white maize compared to the

yellow type .

CONDITIONS

Maize, given optimal conditions has very

high growth rates.


Maize is very sensitive to frosts and as a

result is planted in the spring when the risk of frosts has subsided.
It requires 4 to 6 months to produce a

silage crop.
Temperature and radiation are key factors

that determine the potential production of maize.


The base temperature is the minimum soil

temperature a plant requires


Maize should not be planted in the spring

until the soil temperature is above 10C.

GRADING
As with other cereals, for commercial and marketing

purposes, maize is also assigned different types of grades and classes depending on a set of physical descriptions or qualities
such as the minimum test-weight, feeding values, and

maximum limits of damaged kernels and foreign material


Maize classes are determined on the basis of colour

(divided into yellow, white and mixed) and are graded from 1 to 5

USES
Maize is grown for a number of different end markets. At the producer level the

production is split into two categories; 1.)maize grain and 2.)maize silage.
Maize grain crops are produced solely for their grain content

Maize grain is a common ingredient in compound feed manufacture and is used

in poultry, pork and ruminant (cow and buffalo) feed as it is high in energy.
However, over the past few years, maize has become one of the main ingredient

of a fast expanding ethanol industry. Ethanol is used for preparing alcohol as well as motor fuels.
the demand for food, feed and other industrial uses of maize is also projected to

increase.

LIVESTOCK FEED

Maize is an important grain in the

compound feed industry in New Zealand. It is a key source of feed for poultry, pork and ruminant producers.
There has been an increase in the total

feed used by New Zealands livestock industries in the last three years, owing to a growing ruminant feed sector.
In 2011, the livestock feed sector

consumed 58% of maize grain, most of which enters the poultry and ruminant sectors.
Food and industrial processors

consumed the remaining 42%.

TOTAL FEED USAGE (Tonnes/Year)


2008 Poultry (growers) Poultry (layers) Pigs (growers) Pigs(breeders) 349 127 142 40 2009 343 122 144 43 2010 366 128 149 49 2011 387 141 155 52

Ruminant (incl. calf)


Others TOTAL

216
91 965

232
98 982

254
113 1059

277
132 1144

DOMESTIC PRODUCTION
New Zealands maize grain consumption for the 2010/11

season ranged between 2,50,000 and 3,00,000 tonnes.


Grain yields were typically reduced as a result of the drier

than usual conditions in 2010.


The national feed assessment report suggests total

consumption of maize grain are expected to rise by 20% in 2012


Total sweet corn imports are about 1,85,000 tonnes.

INDIAS PRODUCTION
Global trade of maize is about 90 million tonnes. India, Asias second-largest grower of corn after China, generally sells

around two to three million tonnes of corn a year


India has already exported over 2.5 million tonnes till Sept.2011 and

has record production this crop year of 20.2 million tonnes.


The present rally in corn prices globally has benefited Indian exporters.

Indian domestic prices have always been lower than international prices and for stock coming from the United States to the southeast Asian market, there is a big freight component.
Shipping costs from India to Asian buyers like Indonesia and Malaysia

are typically around $30 per tonne whereas from the United States, the cost can be double.

COMPETITORS

Domestic Bishnoi Trading Corporation Jenirich Agro products Pvt. Ltd. Uniphos Agro Industries Ltd. Nutrich Foods Pvt. Ltd. Sharayu Impex Pvt. Ltd. Global U.S.A China Pakistan Thailand

IMPORTERS & DISTRIBUTERS


Pioneer group
Agpac Plastics Biolink New zealand IJ & PK Enterprises Ltd. Impex Probiz (NZ) Ltd. Link International (NZ) Ltd. Miami Trading Company 10 Point marketing Ltd.

END USERS
Food and industry MAIZE GRAIN Dry processing Wet processing Poultry feed Livestock feed Pig feed Ruminant and calf feed

STATUS
Merchant exporter Export maize seeds i.e. sweet corn seeds to New

Zealand Registration cum membership Certificate from Agricultural Process Export Development Authority (APEDA) Member of Indian Trade Promotion Organization I.T.P.O. We do not have a plant of our own as we are just commencing our business and operate from rented office for commercial and marketing purposes.

MARKETING
LEAD GENERATION
R.C.M.C./ I.T.P.O. Newspaper in New Zealand

Our own Website

Indiamart.com Exportersindia.com

PROPOSAL
Indian yellow maize H.S. code: 11081200

A1 quality
Naturally Dried Shelf life: 90 days

Minimum Order quantity: 25 tons


Price: 342 $/MT. (Assmptn. 1$=Rs.50) Inco term: FOB JNPT Mumbai India Payment:30% advance, 70% (after faxing the B/L within

48 hours) 1* 20 feet container

ORDER EXECUTION
1. Lead generation 7. Applying for incentives

2. proposal

6. Follow up and receipt of payment

3. Order confirmation with contract

5.Procurement and export of goods

4.Export process after receipt of 30% advance

PROCUREMENT
FARMER

SWEET CORN MANUFACTURER

MERCHANT EXPORTER

LOGISTICS
4.Receipt of B/L From freight forwarder
1. Indore to JNPT via Truck

3. Vessel loading

2. Custom clearance and stuffing at J.N.P.T

Details

Amount Rs.

1.) PURCHASE COST


2.) LOGISTICS COST Inland Transportation Indore to JNPT CFS Warehousing Dock stuffing Custom clearance

26,000 kg. * Rs.9

2,34,000
70133

20,000*2 (2 trucks each of 13 tons)

40,000

1,500 For 2 hours FCL 1*20 ft. container 1,500 2,000

Agency
Terminal Handling Charges Loading and unloading Bill of lading charges Service tax 10.33% of agency Certification charges 10.33% of 4,000

4,000
14,000 2,500 1,200 433 3,000

ADMINISTRATIVE EXPENSES
Administrative Expenses Rent Electricity Stationary Salaries Postage & Telephone Conveyance Miscellaneous Expenses TOTAL 20000*3 months 1200*3 667*3 5000*3 1333*3 1000*3 Quarterly Amount Rs 60000 3600 2000 15000 4000 3000 1000 88600

PROFIT MARGIN
TOTAL COST: =Purchase cost+ Logistics cost+ Administrative cost = Rs.2,34,000+Rs.70,133+Rs.88,600 =Rs. 3,92,733

Cost per unit:


Rs.3,92,733/25,000 kg. =Rs. 15.70 Selling price Rs. 17.10 Profit percentage= 8.91%

CERTIFICATIONS
Along with I.E.C, invoice and R.C.M.C Following certificates are required for export of maize: Non-preferential Certificate of origin

Quality certificate from MCCIA food lab by forwarding

sample
Certificate of quantity/weight Phyto sanitary certificate

EXPORT INCENTIVES
Duty Draw back 1% on FOB value Avail: within1 year from date of export

Vishesh Krishi Upat Yojana (V.K.U.Y)


5% on FOB value Apply in new financial year

FUTURE BUSINESS PLANS

Setting up a plant Import of machinery from china Multifunctional H-efficient

Corn Huller Purchase of land, building and equipments Procurement of maize silage directly from farmers Production of sweet maize corn from maize silage Drying of sweet corn Packaging of sweet maize corn International marketing for lead generation Direct export to the foreign clients

References
http://researcharchive.lincoln.ac.nz
www.fao.org www.eximbankindia.com www.livemint.com http://agricoop.nic.in

THANK YOU!!