Economic importance of maize product and bye-products from processing
Maize is a major stable food crop for most sub-saharan Africans of which Nigeria is inclusive. It is valuable as human food, livestock feed and raw material for several industries. The oil present in corn (rich in embryo) is widely used for cooking and in manufacturing of soaps and cosmetics. Corn starch is well recognized for its uses in cosmetics and pharmaceutical industries as diluents. Corn grains are functional in making alcohol and stem fibres for manufacture of paper. Starch from maize is also heavily used to produce bioethanol, a form of renewable fuel used as an alternative to petrol (gasoline) to power cars, trucks and buses. Ethanol is also used as a solvent in manufacture of varnishes and perfumes; in the preparation of essences and flavorings; and in many medicines and drugs
Government policies and incentives that support investment:
- Growth Enhancement Support (GES) scheme
- Nigerian Incentive-based Risk Sharing system for Agricultural Lending (NIRSAL)
- Linkage with industrial end-users of maize produce
Market potentials for investments across the value chain:
- Research to develop high yielding, early maturing, stress and disease tolerant varieties
- Processing into animal feed
- Setting up of feed mills for processing
- Processing into Corn starch
- Processing into Ethanol
- Processing into baby food, cornflakes and other processed cereal products for human consumption
Existing business in the value chain that require partnership:
- Seed industry: Research Institutes, Registered Seed Companies, Agro-dealer
- Production: Maize farmers, farmer groups
- Processing: local miller, Poultry feed-millers, Industrial end-users e.g Nestle, Cadbury, Nigeria flour mills
- Service providers: mobile threshers, Spraying services provider
Challenges:
Ø Recommended fertilizer formulation for maize not yet very popular among most fertilizer companies in the country;
Ø Insufficient/inadequate application of recommended quantity of fertilizer per unit of land.
Estimated Production Cost Estimate per hectare of maize crop
- Seeds: 20kg x N250=N5,000.
- Fertilizer: 8bags x N5,500=N44,000
- Herbicides: (a) Paraquat-5ltrs x N800=N4,000
(b) Primextra-5ltrs x N800=N4,000
(c) Nicosulfuron-2ltrs x N1,500=3,000
- Land Preparation: N15,000-N25,000
- Harvesting/shelling/threshing (3tons/ha): 3 x N7,000=N21,000
Total= N106,000
Production Cost Estimate per hectare of maize crop = N106,000
Expected Revenue per hectare of maize crop
Average production per hectare = 3 tons
Price of 1 ton of maize = N60,000
Price of produce per hectare = N60,000 x 3 = N180,000
Expected revenue =Price of produce per hectare – Cost of production/hectare
N180,000 – N106,000 = N74,000
Expected Revenue per hectare of maize crop = N74,000
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