Indian Dairy Industry- a Key Future Demand Driver for Corn

1. India Maize Summit 2015
Riding the Demand Wave and Outlook
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2. Index
About Pioneer
Maize as crop in Macroeconomic scenario
Likely Demand and supply projections- 2050
Current challenges faced
Current issues to be addressed towards supporting the demand projections

3. About DuPont Pioneer
Founded in 1926
– largest U.S. producer of hybrid seeds
and operates in nearly 70 countries
– Global Revenue - $7.3 billion (2012)
– The Fastest growing Seed Company in
India with turnover more than 800
crores.
– Employees 13,500 worldwide
– Major Crops : Corn, Rice, Millet,
Mustard and Sunflower
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DuPont Pioneer Vision
To be the world’s most innovative plant genetics business,
delivering industry-leadingproducts and unmatched service and
support.
• DuPont Pioneer network in India
• Around 500 employees in more than 40
locations
• Corporate Office – Hyderabad
• Seed Processing Plant – Medchal, Hyderabad
• Multi Crop Research Center – Warangal,
Hyderabad
• 5 Zonal & 26 Regional offices
• 15 Production locations - More than 45000
acres employing more than 22000 people

4. WHO WE ARE
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Bringing crop genetics, advanced seed technology and traditional farming practices
together uniquely
Committed to our
CORE VALUES
More than
Researchers
Guided by our
Philosophy
2009 A&N R&D investment
~$750M
100+ Research sites in 24
countries on 6 continents
3,000
Respect for People
Highest Ethical Behavior
Environmental Stewardship
Safety and Health
Giving helpful management
suggestions to our customers to
assist them in making the greatest
possible profit from our products
Advertising and selling our
products vigorously, but without
misrepresentation
Dealing honestly and fairly with
our employees, customers, seed
growers, sales force, business
associates and shareholders
Striving to produce the best
products on the market
LONG LOOK

5. SIGNIFICANCE OF THE INDUSTRY
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6. Maize in Macroeconomic Scenario
All-India annual growth rates of area, production and yield of major crops
During 10th Plan (2002-03 to 2006-07) During 11 Plan (2007-08 to 2011-12)
Key Highlights : -
• Maize - 3rd most important cereal
• Acreages grown from 6.6 M Ha to 8.6 M ha (2002 – 2013)
• Peaked in 2013 at 9.4 M Ha
• Productivity increased gradually (1.6 to 2.6 Mt/Ha)
Maize - Only food crop for which area and production have consistently increased

7. Maize- New applications Driving Demand
Growth Drivers
Starch industry Food industry Paper Industry Textile industry
Pharmaceutical
Industry
Feed industry
Corn - New & emerging trends – Oil / Starch – New Application / Ethanol

8. Corn Usage in Many Industries – ON Growth Path
Growth driver - Food Industry , Paper, Textiles and Pharmaceuticals
Starch Industry
Glucose & Sorbitol Glucose Production form Corn on Positive Trend
Consistent Growth in Last 5 years. Current Starch
Production-1.56 M MT
Projected Production–
3 M MT by 2020
Processed Food Market
Size- 1.5 Billion USD
Projected Size- 7 Billion
USD
Corn Starch/Corn Flour-Avidly used in Bakery, Beverages & confectionary
Food Industry
Consistent Growth in the Processed
Foods in the Last 5 years.
Paper Industry
Starch increases paper strength & also used as paper coating agent
Ever growing paper demand Current – 12.5 MMT Projected to 20
MMT by 2030
Derived form Germ is claimed to better than extra virgin Olive Oil
Corn Oil
Consistent Growth in the Starch
Industry in the Last 5 years.
Current Production-
Limited
Projected
Production– Big
upside
New opportunity Big Scope of demand
New application ( Bags, Car Parts, etc.) will help in increasing the
demand for grains
Corn Starch- Fibre
New Application segment

9. 4.3
7.5 6.8
9.3
12.0
18.1 17.2 17.5
19.5 20.0
1960 1970 1980 1990 2000 2010 2011 2012 2013 2014
Maize-Domestic Consumption ( MMt)
Changing Food Consumption Pattern in Urban & Rural India
Source: Planning Commission Steering committee for Agriculture
Key Driver : - Urbanisation, Changing Food Consumption Pattern
• Processed Food ( Use of Corn Processed & Packed Foods)
• India - 3rd largest egg producer & 5th largest poultry meat producer
• Rising demand for Poultry, Milk and Fish ( Use of Corn as Feed)
0.0 0.2 0.6
2.3
5.2
9.0 8.8 8.9
10.5 11.0
1960 1970 1980 1990 2000 2010 2011 2012 2013 2014
Maize-Feed Consumption (MMt)

10. CHALLENGES TO THE INDUSTRY
DEMAND
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11. Rise in the Productivity due to SCH
Adoption of SCH (Single Cross Hybrids) led to substantial increase in
productivity. But the yield still lower than the world average

12. Maize Growing Districts and Productivity Mapping
• 524 districts out of total 640 grow Corn but Only 168 districts had >10,000 ha under maize.
• 340 districts had maize yield less than 2 Mt/Ha in TE 2009-10.
• Only 76 districts which harvested maize grain more than 3 Mt/Ha
~65% district has low yield levels because:
• Lower Hybridisation
• Lower crop management
• Environmental conditions

13. WHY THESE CHALLENGES NEEDS TO BE
ADDRESSED
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14. Demand to double in developing world by 2050
• Population growth
• Livestock revolution: Meat & Dairy
• Use of maize for biofuel
Imports for developing country will increase 24% by 2050 – equalling 30 B $
World Market export prices for maize are expected to almost double over the next
20 years
http://www.oxfam.org/sites/www.oxfam.org/files/rr-exploring-food-price-scenarios-010611-en.pdf
Demand for Maize
Asia South Asia

15. POSSIBLE SOLUTIONS TO ADDRESS
THESE CHALLENGES
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16. Technologies: Key for Improving the Productivity Gap
2.6
10.0
6.0
50-75%
15%
20%
India
Avg. Yield
( Mt/Ha)
SCH Insect
&Disease
Protection
Weed Control Drought
Tolerance
??
China
USAClosing the Gap Ideas
Developed
Countries MT/Ha)
Developed
Countries MT/Ha)
Increasing
hybridization
Rabi & Spring Maize
could help meet
demand
requirements
Improved cultivation
practices, better
inputs &
Mechanization
Focus on post harvest
management
practices

17. Potential for Increasing acreages & Challenges
Potential for Crop Diversification
Andhra Pradesh- Rabi Rice
Punjab Kharif Rice
Targeting Non Traditional Areas
Expanding area under SCH in East, North East
states, J & K , HP
High productivity of SCH Maize during Rabi
season (9-10t/ha) Potential for further
enhancement of Maize
Quality seed promotion through Govt.
channel is a strong link for increasing the
maize production
Labour increasing challenge
Activity % cultivation cost
Sowing 6 to 7% (~1000 Rs/Acre)
Harvesting 18 to 20% (~3000 Rs/Acre)
?
Solution
Mechanization
Cost optimization

18. Indian Dairy Industry- a Key Future Demand Driver for Corn
• Largest milk producer in the world
• 132 Million tonnes (2012 -13) - NDDB
• 127 Million Milch Population - NDDB
• Demand for milk -200 million tonnes
(2021-22) vs 175 million tonnes.
• 80% of India’s dairy industry is unorganized
CurrentScenarioFodderMarketDynamics
• Annual domestic demand for compound
feed in India > 25% CAGR = 70 M Mt.
• The gap between demand and supply of
fodder is approximately 60%.
• 80% of fodder depends on Crop residue
with low energy, protein and digestibility.
Demand&Supply
Gap
MilkProduction
Year
Total Fodder
Acres
Fodder Cereal
Crop area
Maize area
as fodder
2010 8.3 4.40 0.9
2015 8.3 4.40 1.1
2020 8.3 4.40 1.4
2025 8.3 4.40 1.8
2030 8.3 4.40 2.2
*Assumption: Area in Million Ha
Fodder acres – Constant (Pressure on land for food)
50% of the fodder cereal will be replaced by fodder maize by 2030
Per year increase in Maize fodder acreage is taken as 5%

19. Riding the Demand Wave
Scenario-2Scenario-1 Scenario-3
•Business As Usual
(As per current levels)
Acreage growth ~1%
Hybridization @ 75%
Hybrid yield 5 Mt/Ha in 2025
•Likely Production -
28 M MT by 2030
•Likely Production -
37 M MT by 2030
•Likely Production -
45 M MT by 2030
Acreage growth ~0%
Hybridization @ 90%
Hybrid yield 5 Mt/Ha in 2025

20. Thank You
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