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

1. Biofortified Maize and
Relevance of Innovative Maize-
Poultry Value Chains
Prakash Sadashivappa, Modinsab Attar* and Vijesh V Krishna
CIMMYT – India & *UAS, Bangalore

2. Structure of the presentation
Introduction : Maize in Indian agriculture
Background: Maize poultry linkage
Research objectives
Data & Study area
Results
Conclusion

3. 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” FAOSTAT, 2011
in last decade.
• Most preferred cereal.

4. 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.

5. Maize consumption pattern
20
18
16
Total Non-feed Feed
14
12
10
8
6
4
2
0
1969-71 1979-81 1989-91 1994-96 1999-2000 2002-03 2007-08
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

6. 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.

7. Feed compsition of poultry
Feed is the single largest cost item in 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.

8. Role of amino acids in poultry feed
• 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
Ideal nutrient level range in poultry
Normal % change over
QPM feed for
maize normal maize
Broilers Layers
Protein (%) 8.00 - 8.00 – 19.50 – 22.50 15.00 – 18.00
11.00 11.00
Lysine 0.26 0.42 30 1.14 – 1.40 0.45 – 0.70
(% or unit/kg)
Tryptophan 0.04 0.09 41 0.18 – 0.22 0.12 – 0.17
(% or unit/kg)
Methionine 0.18 0.19 4 0.50 – 0.58 0.20 – 0.30
(% or unit/kg)
Sources: FAO, 1992; Gupta et al, 2009; Hellin and Erenstein, 2009;
Prasanna et al, 2001; Vivek et al., 2008; Panda et al, 2009.

9. 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).

10. 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.

11. 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 ?

12. 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.

13. Study area and sampling
Ownership Output Number of firms
(% in sample)
Owned Broiler 75
(41)
Source of map: Neelam Chowdhury,
Layer 72 CIMMYT/AWhere
(39)
Integrated Broiler 38
(21)
Total 185
(100)

14. Results:
Feed sources of poultry firms
Broiler
11%
89%
Layers
Only feed-mixing
4% 4%
Only ready-made
feed
Ready-made feed
92%
& feed-mixing

15. Sources of limiting amino acids
i. Lysine
Broiler firms (n =75 ) Layer firms (n = 72)
Sources quantity obtained % firms quantity obtained
% firms
(kg/'000 birds) (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

16. Sources of limiting amino acids
ii. Tryptophan
Broiler firms (n =75 ) Layer firms (n = 72)
Sources quantity obtained % firms quantity obtained
% firms
(kg/'000 birds) (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

17. Sources of limiting amino acids
iii. Methionine
broiler firms (n =75 ) layer firms (n = 72)
Sources quantity obtained % firms quantity obtained
% firms
(kg/'000 birds) (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

18. 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.

19. Amino acid consumption by poultry firms
(Rs./bird) Total feed cost of firms % Total revenue of firms % difference in
using amino acid difference using amino acid revenue
below above in feed below above
recommen recommen cost recommen recommen
dation dation dation dation
Lysine
(i) Broiler 58.44 116.56 99.45*** 95.09 95.09 0.005
(ii) Layer 543.63 694.31 27.72*** 713.49 731.81 2.57
Tryptophan
(i)Broiler 52.85 103.25 95.36*** 93.93 95.62 1.79
(ii) Layer 411.62 688.31 67.22*** 724.50 726.75 0.31
Methionine
(i) Broiler 57.21 121.23 183*** 95.53 94.77 -0.79
(ii) Layer 629.81 714.04 13.37 721.68 741.41 2.73

20. Feed cost share of poultry firms
below the recommended above the recommended
dosage dosage
Maize Soy Mineral Maize Soy Mineral
Mixture 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

21. Potential of high methionine maize
1.00
0.90 Probability of Yes
0.80 Probability of Can't say
0.70
Probability of adoption
0.60
0.50
0.40
0.30
0.20
0.10
0.00
0 10 20 30 40 50 60 70 80 90 100
Price

22. 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.

23. Maize poultry value chains
The grain output of biofortified maize being credence in nature can only be
channelized in two ways.
Maize farmer Producer
Intermediary Feed company Labeling &
Certification Market
Monitoring &
implementation
cost
Poultry farmer
Consumer
Scenario 1 Scenario 2

24. 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.

25. THANK YOU

26. Maize-poultry growth predictions
Poultry population in India (million no.)
Maize demand by poultry sector (million tonnes)
1000 14
900
12
800
700 10
600 8
500
400 6
300 4
200
2
100
0 0
1965 1975 1985 1995 2005 2015
Poultry poulation in India (million no.)
Maize demand (million tonnes)
Maize demand predicted (million tonnes)
Expon. (Poultry poulation in India (million no.))

27. Factors influencing application of essential amino acids for broiler firms
Variables Total amino acid Methionine Lysine Tryptophan
Maize price †
-1.00* -0.35 -1.24** -0.76
(Rs./kg)
Soy price†
-0.56 0.54 -1.13 0.06
(Rs./kg)
Mineral mixture
0.05 -0.07 0.10 0.14
price† (Rs./kg)
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.

28. Factors influencing application of essential amino acids for layer 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

29. Multinomial logit analysis of factors influencing the adoption of QPM
Coefficient (standard error)
Variables
Yes over no Can’t say over no Yes over can’t say
Maize price (Rs./kg) -0.07 -0.20 0.13
(0.46) (0.48) (0.32)
Bid amount (Rs./kg) -0.06 *** -0.04 ** -0.02 **
(0.01) (0.01) * (0.01)
Knowledge about amino acids 1.71 ** 1.23 0.49
(0.84) (0.82) (0.51)
Town distance -0.01 -0.05 0.03
(0.05) (0.05) (0.04)
Poultry education & training 1.25 2.00 -0.75
(1.10) (1.06) (0.62)
Agricultural land holding -1.87 ** -2.25 ** 0.37
(0.90) (0.87) (0.55)
Duration -0.04 ** -0.03 ** -0.004
(0.01) (0.01) (0.01)
Capacity utilization 0.004 0.001 0.003
(0.01) (0.01) (0.01)
Bangalore 3.32 ** 1.16 2.16 **
(1.37) (1.34) (0.78) *
Davanagere 1.75 0.75 1.00
(1.11) (1.06) (0.70)
East Godavari 1.86 * 0.44 1.43
(1.12) (1.07) (0.79)
Intercept 4.40 6.54 -2.14
(4.75) (4.93) (3.38)

30. Maize Poultry Value Chains
Seed Production Units
Private Seed Companies
Seed Distributors
Government farmers Village input Taluk input District input
service centre dealer dealer dealer
32% Rs. 75 22% Rs. 79 5% Rs. 114 41% Rs. 116
Maize Farmers
1% Rs. 900 71% Rs. 877 8% Rs. 858 20% Rs. 860
Regulated Market Village trader Taluk trader District trader
64% Rs. 1000 6% Rs. 943 21% Rs. 1057
Poultry Farmers Neighbouring
9%
State
Rs. 1118