S7.3 Maize Value Chains in Nepal


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Presentacion de 11th Asian Maize Conference which took place in Beijing, China from November 7 – 11, 2011.

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S7.3 Maize Value Chains in Nepal

  1. 1. Maize Value Chains in NepalD.B.Gurung*, D.B.KC**., G.O.Ferrara**., N.Gadal**., S.Pokhrel***., K.B.Koirala**., B.B.Hamal***., Y.R.Pandey* and R. R. Puri*** Nepal Agricultural Research Council***Department of Agriculture, DoA**CIMMYT, South Asia Regional Office 1
  2. 2. Background• Maize second important food crop in Nepal• Staple food for hill people (>14 million people &) 44 districts food deficit )• Very important for food security• Contributes 2.5% in GDP, 7.5% in AGDP and 26% to the total edible food production• Average per capita consumption is 45.5 kg/calorie/year (it is more in hills-- vital for survival)
  3. 3. Area, Production and Productivity of Maize in Nepal 2010 Ecological Belts Area Share on Total (Districts) (876,000 ha) Prodn (1855000 mt) Mountain (16) 20% 9.8% Hill (39) 70% 70.1% Terai (20) 10% 20.1% Total (75) 100% 100.0%Total production 1.85 million tAverage productivity 2.12 t ha-1 3
  4. 4. Area under maize, by Maize area by OPVs growing season (2010) and Hybrid (2010) Hybrid Winter 5% 12%Spring 14% OPVs Summer 95% 74% Hybrids • Winter and spring in Terai • Summer in valley and Hills
  5. 5. Area (%) of local and improved maize varieties in eco-zones of Nepal, 2010. 120 99 100 86 87 80 60 Improved Local 40 20 14 13 1 0 Mountain Hills Terai 5
  6. 6. Varietal Options for Different Environments (No) 23252015 8 710 6 2 5 0 High Hill Mid Hill Terai Denotified Total
  7. 7. Utilization of Maize • Grits, Chapati, Dhindo similar to Ugali, boiled, roasted and soup. • Popped maize is very popular for snacks, mostly in hills and rural areas.Grits of both white and yellow types • OPVs are more common for making grits • Flour recovery is more in OPVs (45% White and 40% Yellow)Ecological Production Yield Food Feed Indust Poultry Industri Belts (mmt) (t/ha) rial feed al(Districts) Uses 13% 1%Mountain 0.18 96% 4% - 2.0 (16) Hill (39) 1.30 95% 5% - 2.2Terai (20) 0.38 10% 80% 10% Human 2.3 food 86% 7
  8. 8. Value added maize productsCornflakes Popped corn 8
  9. 9. Common Maize Value Chains in Nepal• Maize seed value chain• Maize food value chain• Maize feed value chain• Maize industrial value chain 9
  10. 10. Maize Value Chain Actors Hills Terai• Limited numbers of value chain Many actors are involved in actors in grain marketing Terai (input supply,• Rural traders collect maize from production, processing and large and small holder farmers marketing etc.) and supply to the local traders• Value addition by traders is less than 20%• Actors mainly perform drying of grains and bulk packaging in sacks 10
  11. 11. Total maize demand and its share in value chain in Nepal, 2010 Feed Industry 0.44 mmt 0.05 mmt (19.77%) (2.33%) Food Seed 1.69 mmt 0.03 mmt (76.74%) Total Quantity: 2.21 mmt (1.16%) (Production-1.86 mmt; Import-0.35 mmt) 11
  12. 12. Maize Seed Value ChainConsumer/Gro 12920 t 1088 t 190.4 t 82 t 2040 t 680 t Supportwer Rs. 55/kg Rs. 52/kg Pvt. Labs,Trading, Agrovet Seed Company Private Rs.and 190.4 t 82 t sectors, 48/kgProcessing Rs. MoAC, Rs. 49/kg FIS, Pvt. 47/kg Rs. Rs. Sectors 47/kg 47/kg Agrovets Seed Company Cooperatives 1360 t 2040 t 680 t Rs. 40/Kg Rs. Rs. Rs. SQCC, 40/kg 40/kg 40/kg RSTL, INGOs, Producer/P NGOs, rocessing/ Public Sector Individual/Private Sector Agrovets, Quality 3.6% 17,000 t 96.4% Fis, Pvt Sector Control NGOs, INGOs,Input NARCSupply Technology Source Seed DOA (BS/FS) Pvt. Sector, Seed, Fertilizer, Importer (Fertilizer, Agrovets Pesticides, Chemicals)
  13. 13. Maize Food Value ChainConsumers 1386 tt 280 tt 24 tt Enabling Environment Rs 18-20/Kg Retailers Rs 15-16/Kg 279.8 tt Rs 15-16/Kg Fis, Trading Rs 14/Kg Private Wholesalers sectors. 304.2 tt Rs 14/Kg Agrovets, Fis, Pvt Producer/P Sector, rocessing , Private Sector 1690 tt Individual Farmer packaging (70%) (30%) NGOs, INGOs, NARCInput Technology Seed DOASupply Pvt. Sector, Seed, Fertilizer, Importer (Fertilizer, Agrovets Pesticides, Chemicals)
  14. 14. Maize Feed Value Chain Consumer 15% 85% Enabling Environment Rs. 33/KgMarketing, Rs 32/Kg FIs, Pvt.Processing, Dealers (100%) Rs. 32/Kg Retailers Sectors,Packaging Nepal Rs.30 /KgProcessing Electricity 132 tt 308 tt Authority Rs. 17-19/Kg Rs.21 /Kg Fis, PrivateMarketing Wholesalers sectors. 308 tt Rs 17-19 /Kg Agrovets,Production Fis, Pvt Private Sector 440 tt Individual Farmer Sector, NGOs,Seed & INGOs,Technology Technology Improved Seed , NARCInput Agrovets DOASupply Seed, Fertilizer, Importer (Fertilizer, Pvt. Sector,Materials Agrovets Pesticides, Chemicals)
  15. 15. Maize Industry Value Chain Consumer 10% 90% Enabling EnvironmentMarketing, Rs 168/Kg Rs. 168/Kg Fis, Pvt.Processing, Dealers (100%) Rs. 148/Kg Retailers Sectors,Packaging Nepal Rs.135 /KgProcessing Electricity 15 tt 35 tt Authority Rs. 17-19/Kg Rs.21 /Kg Fis, PrivateMarketing Wholesalers sectors. 35 tt Rs 17-19 /Kg Agrovets,Production Fis, Pvt Private Sector 50 tt Individual Farmer Sector, NGOs,Seed & INGOs,Technology Technology Improved Seed , NARCInput Agrovets DOASupply Seed, Fertilizer, Importer (Fertilizer, Pvt. Sector,Materials Agrovets Pesticides, Chemicals)
  16. 16. Constraints in Maize Value Chains Functions Constraints1. Input supply level Unorganized traders, Govt policies not sufficiently conducive, quality is always questionable and curtailing2. Producer level Unavailability of required quantities of production inputs, increasing high cost of inputs and less aware about quality of inputs and technologies Lack of supportive policies ( subsidy and crop insurance)3. Processing level Poor infrastructures and costly, Private sectors not very interested to invest in agriculture, lack of supportive polices ( exemption of taxes for machineries)4. Service provider level Less funding in agriculture (3.15% of the total budget), Services are more supply demand and weak linkages and coordination among service providers5. Consumer level Poor marketing information , knowledge gap, weak implementation consumer protection Act. No contract law in the country for seed production, processing and marketing. Not adequate education and awareness about consumption of good and services 16
  17. 17. Way Forward Functions Suggestions/Recommendations1. Input supply • Quality products • Timely delivery services • Quality control mechanism • Friendly policies for market actors2. Producer level • Subsidy on inputs • Provision of crop insurance • Soft loan and Credits • Capacity building • Contract system for assured marketing • Responsive extension services • Timely and efficient delivery services • Mechanization and subsidy on farm equipments and tools • Market information on time • Promotion of hybrid maize varieties in Terai during winter and summer in the hills to increase maize production and to substitute the import 17
  18. 18. Way Forward………Functions Suggestions/Recommendations3. Processing • Support in developing infrastructures both at community level and private sectors • Credits and exemption of taxes on equipment and machineries • Decentralized quality control system and establish equipped labs4. Consumer level • Effective implementation of consumer protection ACT. • Formulation and implementation of Contract law • Conduct awareness and promotional activities of goods • Good product price through efficient and effective value chain system • Access to market information system through media and communicationThere should be functional linkages and sharing of information among the valuechain actors is crucial for effective marketing system of maize and maize products.In addition Enabling environment is essential to facilitate the value chain system. 18
  19. 19. Thank you