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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1000

1965 1975 1985 1995 2005 2015

Maiz

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Po

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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