newzealand maize
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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.
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!!
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