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Livestock Feed Makers Face Maize Competition From Ethanol Producers

Livestock Feed Makers Face Maize Competition From Ethanol Producers
Livestock feed makers see rising competition for maize from ethanol producers · thehindubusinessline.com

Livestock feed companies in India use a lot of maize to feed animals and poultry.

They are worried that ethanol producers will also buy more maize.

Feed makers say they cannot easily replace maize, while ethanol can also be made from grains such as rice.

They want the government to secure enough maize for animal feed first.

Maize farming area has fallen compared with last year.

Weak and late rains linked to El Niño may also reduce crop yields.

A satellite survey suggests the country could face an 11-12% maize shortage.

Higher maize prices make poultry farming more expensive because feed is a large part of production costs.

This could eventually affect the prices of eggs and chicken meat.

Key facts

Maize acreage
91.59 lakh hectares as of September 11, down 2.64% from 94.08 lakh hectares a year earlier.
Reported acreage declines
Karnataka fell 21% to 13.38 lakh hectares; Maharashtra fell 11% to 12.98 lakh hectares; Madhya Pradesh fell 2% to 26.4 lakh hectares.
Potential deficit
The feed industry’s satellite survey indicated a possible overall maize deficit of 11-12%.
Production outlook
CLFMA chairman Divya Kumar Gulati said production could return to 38-39 million tonnes, compared with about 45 million tonnes last year.
USDA estimate
The United States Department of Agriculture’s New Delhi office reduced its India corn estimate by 10% to 50 million tonnes from 55 million tonnes.
Maize price
Prices were reported at approximately Rs 2,700-2,800 per quintal ahead of new-crop arrivals.
Poultry feed dependence
Maize represents about 50-60% of poultry-feed formulations, while feed accounts for roughly 60-70% of poultry production costs.

Quotes

Divya Kumar Gulati

Chairman of CLFMA of India

“We have been making continuous representation to the government to secure supplies. We will continue to make representation that first you need to protect our sector and whatever balance you give to ethanol, we have no problem.”
thehindubusinessline.com
“The government has to balance and first take care of this sector, because we have no alternatives to maize. However, for ethanol, there are other grains available.”
thehindubusinessline.com

Sources

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