Canada Maize Market – Industry Analysis, Forecasts and Opportunity Assessment (2016-2023)

Report on Canada Maize Market – Industry Analysis, Forecasts and Opportunity Assessment (2016-2023)

 Introduction to Canada Maize Market

Maize (Corn) is one of the most versatile cash crops, having broader adaptability under varied climatic conditions. The origin is believed to lie in Tehuacan Valley in Mexico. Corn is put to a multitude of use like Feed & Residuals, High Fructose Corn Syrup, Sweeteners, Starch, Cereals, Beverage or Alcohols, Seed, Fuel (Ethanol) and industrial uses like Paper and Insulation. In 2017, Canada stood at 11th position with 14.1 million metric tons of corn production, while US with 370.96 million metric ton was the top producer. It is expected that corn production will be 14.8 million metric ton in 2018 for Canada.

 

Market Dynamics

Growing corn has no doubt been rewarding for farmers across the world. Increase in productivity over the last several years has helped farmers boost yield but with a corresponding drop in price. With the adaptation of technology and the new breed of seed being used across the world, corn yields have grown exponentially not just in Canada but across the world. This sustained increase in supply has driven down the corn future price. The price has sustained in the low range of $3.38 to $4. The scenario is unlikely to change unless there is a shift to other crops by farmers. The change in government policies towards the use/increase of ethanol as a fuel is likely to drive demand in the future.

 

Market Segmentation

Important components used for growing corn includes Seeds, Nitrogen, Phosphorus, Potash, Herbicides, Fungicides and Insecticides. Countries using advanced seed trait technology have higher seed cost and lower pesticide costs, and on the other hand, there exists an inverse relationship for countries that do not use this technology. Input cost of Nitrogen is significant, and countries often benefit that have a strong local supply. Ontario in Canada has nitrogen priced at C$1.49 per kg, roughly double that of China and Ukraine.

 

Geographic Analysis

The choice of a crop to be sown is guided by geographic region, latitude, and moisture; hence, there is a strong regional bias in the production of most crops. Canada lies in the North Temperate Zone with all its prairie farmland north of the 49th parallel of latitude. Productive farming, therefore, depends on crops that ripen early, if they are spring sown, or are winter hardy if they are winter annuals, biennials or perennial. Agriculture uses only 7% of Canada land mass and is concentrated chiefly on Canadian prairies and southerly reaches of Ontario and Quebec.

 

Grain corn produced in Canada is used both for feed (60%) and industrial use (40%). Soil texture and crop rotation is an important factor taken into consideration for the successful growth of corn. After the spring, appropriate tillage is to be used to increase dry down rates and reduce residue cover to ensure timely crop planting. Further, it also helps in improving seedbed uniformity, removal or incorporation of the insect population. Good crop rotation plays an important role and reduces the role of tillage.

 

The province of Ontario averages close to 60% of Canada’s total corn area, Western Canada at 13% (compared to 10 year average of 8%). Eastern Canada or the Maritimes has seen very little plantation due to spring storms and cool conditions and Manitoba struggling with low soil moisture levels.

The farm gate price for corn is projected to be US$3.80/bu in 2018-2019, an increase of 13% over 2017-2018 prices. This is due to lower crop production and a sharp decline of 23% in ending stocks.

 

The report contains a comprehensive analysis on:

  • Canada Maize Market Segments
  • Canada Maize Market Drivers, Restraints and Opportunities
  • Canada Maize Market Size & Forecast 2016 to 2022
  • Supply & Demand Value Chain
  • Canada Maize Market Current Trends
  • Competition & Major Companies
  • Technology and R&D Status
  • Porters Five Force Analysis
  • Strategic and Critical Success Factor Analysis of Key Players

This report is an elaborate aggregation of primary inputs from industry experts and participants across the supply chain. It provides in-depth market segmentation that is derived from extensive product mapping exercises, macroeconomic factors, and other qualitative and quantitative insights. The impact of all such factors is delivered across multiple market segments and geographies.

Report Highlights

  • Detailed Historical Overview (Market Origins, Product Launch Timeline, etc.)
  • Consumer and Pricing Analysis
  • Market dynamics of the industry
  • In-depth Market Segmentation
  • Historical and Projected Market Sizing in terms of volume and value
  • Recent market trends and Impact Factors
  • R&D Status and Technology Overview
  • Extensive Industry Structure Coverage

 

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