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.

TYPESDepending 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 10°C.

GRADINGAs 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

USESMaize 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 Zealand’s 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 2009 2010 2011Poultry (growers) 349 343 366 387Poultry (layers) 127 122 128 141Pigs (growers) 142 144 149 155Pigs(breeders) 40 43 49 52Ruminant (incl. calf) 216 232 254 277Others 91 98 113 132

TOTAL 965 982 1059 1144

DOMESTIC PRODUCTIONNew Zealand’s 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.

INDIA’S PRODUCTIONGlobal trade of maize is about 90 million tonnes. India, Asia’s 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.

COMPETITORSDomesticBishnoi Trading CorporationJenirich Agro products Pvt. Ltd. Uniphos Agro Industries Ltd.Nutrich Foods Pvt. Ltd.Sharayu Impex Pvt. Ltd.

GlobalU.S.AChinaPakistanThailand

IMPORTERS & DISTRIBUTERSPioneer groupAgpac PlasticsBiolink New zealandIJ & PK Enterprises Ltd.Impex Probiz (NZ) Ltd.Link International (NZ) Ltd.Miami Trading Company10 Point marketing Ltd.

END USERS

STATUSMerchant exporterExport maize seeds i.e. sweet corn seeds to New

ZealandRegistration 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

PROPOSAL Indian yellow maize H.S. code: 11081200A1 qualityNaturally Dried Shelf life: 90 daysMinimum Order quantity: 25 tonsPrice: 342 $/MT. (Assmptn. 1$=Rs.50)Inco term: FOB JNPT Mumbai IndiaPayment:30% advance, 70% (after faxing the B/L within

48 hours) 1* 20 feet container

ORDER EXECUTION

PROCUREMENT

LOGISTICS

Details Amount Rs.

1.) PURCHASE COST 26,000 kg. * Rs.9 2,34,000

2.) LOGISTICS COST 70133

Inland Transportation Indore to JNPT CFS

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

40,000

Warehousing 1,500

Dock stuffing For 2 hours 1,500 Custom clearance FCL 1*20 ft. container 2,000

Agency 4,000 Terminal Handling Charges 14,000Loading and unloading 2,500 Bill of lading charges 1,200 Service tax 10.33% of agency 10.33% of 4,000 433Certification charges 3,000

ADMINISTRATIVE EXPENSESAdministrative Expenses

Quarterly Amount Rs

Rent 20000*3 months 60000

Electricity 1200*3 3600

Stationary 667*3 2000

Salaries 5000*3 15000

Postage & Telephone 1333*3 4000

Conveyance 1000*3 3000

Miscellaneous Expenses 1000

TOTAL 88600

PROFIT MARGINTOTAL 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. 17.10Profit percentage= 8.91%

CERTIFICATIONSAlong with I.E.C, invoice and R.C.M.CFollowing 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 INCENTIVESDuty Draw back1% on FOB valueAvail: within1 year from date of export

Vishesh Krishi Upat Yojana (V.K.U.Y)5% on FOB valueApply in new financial year

FUTURE BUSINESS PLANS

Setting up a plant Import of machinery from

china Multifunctional H-efficient

Corn HullerPurchase of land, building

and equipmentsProcurement of maize silage

directly from farmersProduction of sweet maize

corn from maize silageDrying of sweet corn Packaging of sweet maize

cornInternational marketing for

lead generationDirect export to the foreign

clients

Referenceshttp://researcharchive.lincoln.ac.nzwww.fao.orgwww.eximbankindia.comwww.livemint.comhttp://agricoop.nic.in

THANK YOU!!