Maize up, all other grains down
Corn prices in India went up slightly to Rs.7500 per MT, an increase of 2.9% over last week. The prices are about 20% higher than last year during the same time. The monsoon has gone is for a low and might affect the grain production in India if reports from the Meteorological Department are to be believed. The latest numbers indicate that the overall land coverage for coarse cereals is much higher in 2007 (17.277 million acres) as against 2006 (15.423 million acres), the major increase being in Bajra (Pearl Millet) 7.028 million acres, in 2007 as against 5.486 million acres in 2006. Area under maize is marginally up to 6.455 million acres as against 6.042 million acres in 2006.
Area under crops like Pulses (8.495 from 7.489), Oilseeds (13.742 from 12.913), cotton (7.373 from 6.612 and Sugarcane 5.116 from 4.832) have also shown an increase. The big question though will be if the increased land overage will mean a higher crop as this will mostly depend on the monsoon. Overall coverage currently in less by 4% over last year.
International Grain Council now forecasts 2007-08 world corn production at 752 million tons, up 2 million from the June projection, but still up sharply from last year’s 697-million-ton crop. The U.S. corn crop forecast was raised this month by 5 million tons to 320 million tons and China’s output was increased by 2 million to 145 million. The forecast for Production in the European Union was cut by 5.2 million tons to 50.8 million tons, with the largest reduction in Hungary and Romania.
Pearl Millet (Bajra) prices were at Rs.6500 per MT at the market yard, down by approximately 6.5% over last week. The prices are about 1.7% higher than last year, but the prices are 12.5% lower than maize.
Sorghum (Jowar) prices settled at Rs.9000 per MT this week, lower by 2.4% over last week. The prices are about 25% higher than last year, and also higher by 21.7% against corn.
Barley prices have been stable this week at Rs.7300 per MT, but the prices are 6.5% higher than last year. The demand for malt is on the rise as new beer plants come on line.
Last week the prices of corn on CBOT were ranging from $125 – 130 per MT, translated to FOB values of $144 per MT (US Gulf). The prices this week on CBOT were stable at $126 – 132 per MT, translating to US Gulf FOB values of $147 – 149 per MT for Aug to October 2007 delivery.
Zoning in times of bird flu
Bird flu has hit India again, this time in the remotest corner of the country in North east near Imphal, the capital of Manipur. The state shares its border with Bangladesh and Mynamar which had reported Avian Influenza in March and May 2007.
As per GOI, the effected birds have been culled and another 150,000 birds in the vicinity will be culled and farmers compensated.
But with this said, there is all likely-hood that the trade will be affected. India is a major exporter of eggs to Middle east, the trade which was closed for some time and opened only few months ago. Currently about 8 – 10 containers of eggs are exported every day from Namakkal, a small layer town in Tamil Nadu.
There has been a proposal to create disease free zones for poultry, on a similar pattern as has been done for Cattle and Buffalo. 54 districts in India currently FMD Free (Foot and Mouth Disease Free) and the Buffalo Meat sourced from these districts is exported to South East Asia and Middle East countries.
If disease free, high bio-secure zones (with high population of layers and broilers) can be created under similar lines (as FMD free), the industry will certainly be benefit and the trade will not be affected.
USGC addresses shelf life issues of Chicken
The US Grains Council, sponsored the visit of Dr. T C Chen, a Poultry Expert (Scientist Emeritus) from Mississippi State University to India for a week to meet with the poultry processing industry and discuss ways and means to increase the shelf life of chilled chicken. In his travels with the US Grains Council Representative, Mr. Amit Sachdev, Dr. Chen made several observations regarding the process of slaughter and retail chains and also made recommendations.
One of the several observations made included the use of chlorine in chilled water (for chilling the chicken) was lower and needed to be increased to 50 ppm and the need for the temperature of chicken to be brought to 4 deg C or lower, when it exits the chiller. At the retail counters, it was found that the temp was about 4 – 5 Deg C, where as a lower temp of 0 – 1 Deg C was most desirable.
The retail formats though are good, but need to make changes in the system, where in the product is more visible to the consumer and the temperature is maintained.
It is important that the microbial load is kept low and the cold chain maintained, which will enhance the shelf life of the product.
As the retail trade and formats grow the industry will need to make its move to invest in creating infrastructure for processing and also cold chain. At the same time it will be important to create awareness at all the levels (transport, storage, retail and at consumers end) on how the chilled chicken needs to be handled.
Another important aspect was the labelling of the product (chicken) with the best to use date rather than the date of packing and expiry. GOI labelling laws are similar for food and non food categories and A date of Packing, provides a negative aspect (consumer sees a date that is already past), where in the Best to use date provides a positive aspect ( date that is yet to come.
Poultry processing in India is still in infancy. 2006-07 estimates indicate a 1700 million broiler placement of which 5% are processed. In 2007 the estimated number is over 1900 million broiler placement.
In 1960, USA produced 1795 million birds all of chicken were processed of which 83% was sold as whole chicken (processed), 15% as cut up/parts and 2% was further processed. In 2006, the estimated number is 9100 million all of which is processed and only 9% sold as whole chicken, while 44% is sold as cut up/parts and 47% is further processed.
Corn prices in India went up slightly to Rs.7500 per MT, an increase of 2.9% over last week. The prices are about 20% higher than last year during the same time. The monsoon has gone is for a low and might affect the grain production in India if reports from the Meteorological Department are to be believed. The latest numbers indicate that the overall land coverage for coarse cereals is much higher in 2007 (17.277 million acres) as against 2006 (15.423 million acres), the major increase being in Bajra (Pearl Millet) 7.028 million acres, in 2007 as against 5.486 million acres in 2006. Area under maize is marginally up to 6.455 million acres as against 6.042 million acres in 2006.
Area under crops like Pulses (8.495 from 7.489), Oilseeds (13.742 from 12.913), cotton (7.373 from 6.612 and Sugarcane 5.116 from 4.832) have also shown an increase. The big question though will be if the increased land overage will mean a higher crop as this will mostly depend on the monsoon. Overall coverage currently in less by 4% over last year.
International Grain Council now forecasts 2007-08 world corn production at 752 million tons, up 2 million from the June projection, but still up sharply from last year’s 697-million-ton crop. The U.S. corn crop forecast was raised this month by 5 million tons to 320 million tons and China’s output was increased by 2 million to 145 million. The forecast for Production in the European Union was cut by 5.2 million tons to 50.8 million tons, with the largest reduction in Hungary and Romania.
Pearl Millet (Bajra) prices were at Rs.6500 per MT at the market yard, down by approximately 6.5% over last week. The prices are about 1.7% higher than last year, but the prices are 12.5% lower than maize.
Sorghum (Jowar) prices settled at Rs.9000 per MT this week, lower by 2.4% over last week. The prices are about 25% higher than last year, and also higher by 21.7% against corn.
Barley prices have been stable this week at Rs.7300 per MT, but the prices are 6.5% higher than last year. The demand for malt is on the rise as new beer plants come on line.
Last week the prices of corn on CBOT were ranging from $125 – 130 per MT, translated to FOB values of $144 per MT (US Gulf). The prices this week on CBOT were stable at $126 – 132 per MT, translating to US Gulf FOB values of $147 – 149 per MT for Aug to October 2007 delivery.
Zoning in times of bird flu
Bird flu has hit India again, this time in the remotest corner of the country in North east near Imphal, the capital of Manipur. The state shares its border with Bangladesh and Mynamar which had reported Avian Influenza in March and May 2007.
As per GOI, the effected birds have been culled and another 150,000 birds in the vicinity will be culled and farmers compensated.
But with this said, there is all likely-hood that the trade will be affected. India is a major exporter of eggs to Middle east, the trade which was closed for some time and opened only few months ago. Currently about 8 – 10 containers of eggs are exported every day from Namakkal, a small layer town in Tamil Nadu.
There has been a proposal to create disease free zones for poultry, on a similar pattern as has been done for Cattle and Buffalo. 54 districts in India currently FMD Free (Foot and Mouth Disease Free) and the Buffalo Meat sourced from these districts is exported to South East Asia and Middle East countries.
If disease free, high bio-secure zones (with high population of layers and broilers) can be created under similar lines (as FMD free), the industry will certainly be benefit and the trade will not be affected.
USGC addresses shelf life issues of Chicken
The US Grains Council, sponsored the visit of Dr. T C Chen, a Poultry Expert (Scientist Emeritus) from Mississippi State University to India for a week to meet with the poultry processing industry and discuss ways and means to increase the shelf life of chilled chicken. In his travels with the US Grains Council Representative, Mr. Amit Sachdev, Dr. Chen made several observations regarding the process of slaughter and retail chains and also made recommendations.
One of the several observations made included the use of chlorine in chilled water (for chilling the chicken) was lower and needed to be increased to 50 ppm and the need for the temperature of chicken to be brought to 4 deg C or lower, when it exits the chiller. At the retail counters, it was found that the temp was about 4 – 5 Deg C, where as a lower temp of 0 – 1 Deg C was most desirable.
The retail formats though are good, but need to make changes in the system, where in the product is more visible to the consumer and the temperature is maintained.
It is important that the microbial load is kept low and the cold chain maintained, which will enhance the shelf life of the product.
As the retail trade and formats grow the industry will need to make its move to invest in creating infrastructure for processing and also cold chain. At the same time it will be important to create awareness at all the levels (transport, storage, retail and at consumers end) on how the chilled chicken needs to be handled.
Another important aspect was the labelling of the product (chicken) with the best to use date rather than the date of packing and expiry. GOI labelling laws are similar for food and non food categories and A date of Packing, provides a negative aspect (consumer sees a date that is already past), where in the Best to use date provides a positive aspect ( date that is yet to come.
Poultry processing in India is still in infancy. 2006-07 estimates indicate a 1700 million broiler placement of which 5% are processed. In 2007 the estimated number is over 1900 million broiler placement.
In 1960, USA produced 1795 million birds all of chicken were processed of which 83% was sold as whole chicken (processed), 15% as cut up/parts and 2% was further processed. In 2006, the estimated number is 9100 million all of which is processed and only 9% sold as whole chicken, while 44% is sold as cut up/parts and 47% is further processed.
Amit Sachdev
India Representative
U S Grains Council
