Maize Valuechain Report
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Maize (Zea mays L.) is the third most important food crop after rice and wheat and is known to have the highest genetic yield potential among the cereals. It is the most abundantly cultivated cereal grown in about 160 countries on nearly 192 million hectares. About 50 species of maize exist and the yellow, white, and red varieties are the most cultivated types.
In 2019, the demand for maize grew to about 3 billion metric tons chiefly because it is a staple food for families, used as raw material in industry and an important element in livestock food production.
The six major types of maize are sweet corn, popcorn, dent corn, flour corn, flint corn and pod corn.
Local Output/ Consumption
The Northern states particularly Kaduna, Borno, Niger, Taraba, Gombe, Kano are the major producers of maize while South-western states like Ogun, Oyo and Ondo also produce large volumes of maize.
In 2019, Nigeria harvested about 12.7 million tonnes of maize (GIEWS , 2020) making the country the second largest producer of maize in sub-Sahara Africa after South Africa and 12th globally.
The major export destination of maize are Ireland, China, Netherlands, Canada, Switzerland, and India. Over the years, cultivated/ harvested land area of maize in Nigeria has increased but there has not been a tremendous increase in yield.
According International Institute of Tropical Agriculture (IITA) and Institute of Agricultural Research and Training (IAR&T), Nigeria has a deficit of about 8 million metric tons causing the nation to lag in maize production. Thus, this deficit is an opportunity for Nigerians to venture into maize value chain.
Recently, to boost location production a ban was placed on the importation of Maize. However, due to shortage of maize locally, the Central bank of Nigeria granted approval to five companies to import maize into the country.
Over 60% of Nigeria’s maize production is used for forage and feed especially for poultry while about 10–15% is consumed directly by individuals in households. Maize is consumed either fermented, boiled, roasted or prepared as porridge; as maize flour for animal feeds, confectionary and food industry (corn flakes, corn oil, corn syrup and corn flour) served as a snack etc. in Nigeria.
Figure 1: Maize Processing in Nigeria. Source: Sahel Capital
Figure 2: Maize Yield per ha in Nigeria between 1960- 2019. Source: Knoema Enterprise Data Solutions
Global Production/ Consumption
In 2019, global production of maize was pegged at 1.1 billion Metric Tons (MT) with U.S (3.5 million MT), China (2.6 million MT) and Brazil (1.0 million MT) as the three major producing countries accounting for about 48% of the world’s corn area. In the same year, about 1.9 billion MT global demand deficit was recorded.
The export value of corn in 2019 was $ 34.9 billion at an average price of $341.46 per MT. U.S was the highest exporter of corn accounting for about 38% of the global export market, followed by Argentina (13%) and Brazil (12%). However, Bulgaria, Argentina, Poland, Canada are the fast- growing corn exporters. Global import value of maize was $36.7 billion in 2019 although year over year, global imports of corn fell by -2.2% from 2018–2019. The major importers of maize in 2019 are Japan, Mexico, South Korea, Vietnam and Iran.
A total of 44.69 billion bushels of maize was consumed globally in 2019 and United State was the largest consumer of Maize with a consumption volume of 12.3 billion bushels. This is followed by China with a consumption volume of 10.98 billion bushels in 2019. Increasing demand for animal feed (animal-based protein sources), industrial use and human feed is driving global demand for maize. Thus, the global maize market is project to grow at a CAGR 3.8% between 2020 and 2025.
Soil and Climate
Maize generally does well in a broad range of climatic conditions but requires deep, well drained and fertile soils ranging from clam loam to sandy loam. Soils with high water retention capacity and neutral PH are considered good for higher productivity and seeds that are insect, disease and pest free are best for cultivation and this should be purchased from reliable sources. Regardless of this, high yielding, fast-growing and disease resistant maize varieties are the best for cultivation. It is important to note that maize pollen viability is affected when the temperature is above 38 degrees Celsius while temperature below 10 degrees Celsius impedes the maize growth.
Maize is harvested after three to four months of cultivation and this is based on the variety and purpose of cultivation. Maize sold for grain are usually harvested when the grains are nearly dry or do not contain more than 20% moisture. Maize grown for fodder is usually harvested at the milk to early dough stage but for silage purpose is harvested at the late dough stage. All parts of the cereal crop is useful for both food and non-food products
Seasonality
Maize production season varies in Nigeria although, it is generally between March and April (early season) and early August (late season) in areas where rainfall is likely to be adequate.
In the South, it cultivated between March and August and a second season of cultivation in August — January which is usually rain fed. In the North, production season is May-October and second season between August — January which is usually irrigated.
Seed Rate and Plant Population
The minimum plant population for maize cultivation is 36,000 plants per ha and depending on the seed size, about 25kg/ha (that is a bushel) is required. Studies has shown that for open pollinated varieties, 25kg/ per/ ha should be planted; for Hybrids, 15kg / Ha and for popcorn 15kg/ Ha
Yield / Hectare
Maize yield is largely dependent on the crop variety, management and rainfall or irrigation. The average yield per ha is about 3.5 tons and on the average, about 50 to 56 bags of 100kg bags of maize can be harvested per acre although this is dependent on the variety, management and cultivation conditions. In maize farming, soil fertility and yield target are important criteria’s for fertilizer application. Manure should be the first consideration based on its excellent source of nutrients before organic and inorganic fertilizers are considered.
The average maize yield for Nigeria was 1.69 tons/ ha in 2019 although the Outgrowers team in the Business Incubation Platform of IITA has recently being able to achieve 6 tons/ha.
Pricing Trends
The global average price of maize in September 2020 is $3.6025 per bushel (i.e. N 1381.92 per kg). Currently sold at USD0.23 per kg. Locally, maize has been moving between 155,000 to 179,000 per tonne according to Afex Commodity Index.
Importance and Uses
Maize is an important cereal crop for more than 1.2 billion people in Sub-Saharan Africa and Latin America and as more than 300 million Africans depend on it as the main staple food crop. It is rich in carbohydrates, vitamins A, C, and E and essential vitamins. Some of the uses of Maize includes:
1. Forage and Feed: it is used as feeds for livestock’s like cattle, poultry, piggery etc.
2. Food: Maize and it derivatives serves as food and also used in the production of food. It is used for pap, popcorn, corn flakes, custards etc.
3. Industrial use: The cob when ground to powder is used as fillers for explosives in the manufacture of adhesives, glues, plastics, reyon, resin, vinegar and artificial leather. The chemical properties of the cob also makes it possible to be used in the production of fermentable sugars, charcoal gas, furfurol, hard boards, paper and pulp.
4. Used in producing ethanol; In the U.S most of the maize grown is processed into ethanol
5. Corn starch is used in producing fructose corn syrup.
6. Cornstarch is often used as an electrical conductor found in batteries.
7. Due to the absorbent nature of cornstarch is used as an ingredient in hygiene and cosmetic items, baby diapers,
8. Corn especially corn starch is used as a binder or tablet coating in several drugs and vitamins.
