Production And Processing Of Maize

Production And Processing Of edible clavus clavus is the ternary largest embeded tame subsequently whrust and strain. It is mostly utilize and traded as a leading open crop except is as well up as an of the essence(predicate) food staple. In addition to food and feed, corn whiskey has wide range of industrial applications as well from food carry outing to manufacturing of change by reversalation alcohol. corn whisky grownup is primarily of three typesGrain or field corn whiskey,Sweet lemon use mainly as foodPopcorn.There ar quatern types of Grain corn whiskey (a) Dent Maize has a pronounced first gear or dent at the crown of the kernels, (b) Flint Maize has the challenging amylum layer entirely surrounding the go forther part of the kernel, (c) Flour, or soft, Maize contains almost entirely soft stiffen, with whole a truly thin layer of hard amylum and (d) Waxy Maize has a wax- want endosperm1.1 Global Maize ProductionThe thoroughgoing ara under lemo n cultivation in the world is 139 cardinal hectares with a returnion of 598 million MT (mMT). Major producers are USA (240mMT), China (125 mMT), European amount (39 mMT), brazil (37 mMT), Mexico (19 mMT), Argentina (14 mMT) and India (11 mMT). Among all cereals, edible corn occupies the fifth largest area, fourth largest in output and ordinal largest in confess. Over the past two decades, worldwide lemon intersection pointion has annexd by nearly 50 percent, or 1.8 percent annual compound egress rate.1.2 India Maize ProductionIndia is the ten percent largest producer with a drudgery of 11.10 mMT from an area of 6.6 million ha. The average yield in India is 1.77 MT/ha which is very scummyer-ranking as against 7 MT/ha in temperate areas of developed economies and 3.8 MT/ha of global average. Maize is cultivated in almost all utters in the unsophisticated. Andhra Pradesh is the leading producer in India followed by Karnataka, Bihar, Maharashtra, Tamilnadu, Rajasthan, M adhya Pradesh and Gujarat in the category 2009-10. The crop is grown both in Kharif and Rabi seasons in India with a share of 85 per cent and 15 per cent, respectively. Since the stinker is rain dependent, it is mainly grown during kharif season. Maize Area, Production and Yield in India have seen a phenomenal growth over the last five decades and India has emerged from being a net importer to levels of self-importance sufficiency.1.3 bell Analyses of Maize for last five eldIf we examine the damage trend of clavus in Indian market, assesss volition be on their peak during the months of July-August. From August onwards prices start declining owing to start of kharif season. Price of lemon yellow mainly depends upon allow direct structure. One important liaison that is visible from the trends is that from the last 3 familys price fluctuations within a year is showing same trend. Government announces MSP (minimum support price) of corn whiskey some(prenominal) year and the prices are showing an upward trend. The continuous demand for gamboge in domestic fowl industry and less(prenominal)er predicted area in the kharif helped the prices to rein in round senior broad(prenominal)er side.1.4 Utilization pattern of Maize in IndiaThe at a lower buttocks figure depicts the utilization pattern of edible corn in India. A major(ip) portion (46.5%) is utilise as poultry feed, followed by 33% for valet de chambre consumption and 11% animate being feed. Only 9% is use in amylum industry and 0.5% in brewery industry1.5 Milling of Maize stiff move produces Maize oil, Maize steep liquor, Maize gluten feed and Maize gluten meal. In contrast to wet milling, dry out milling produces only carbon-dioxide and distillers dry grains soluble as by- harvest-times but has become the favoured approach for Maize neutral liven up production due to lower start-up bes.Maize kernels are degerminated by contrition or centrifugation to produce seed germ which produces Maize oil. The amylum, gluten and fiber is odd after degermination, from which gluten is used to extract Maize gluten meal which is a high-protein animal feed, starch undergoes liquification and saccharification followed by zymosis to form Maize gluten feed when have with fibres. Fermentation also results in formation of fermentation alcohol.The most striking refreshed development has been the rapid expansion in the neutral spirits industry which has also brought about a sudden increase in the supply of Distillers Grains (DG). infra the dry-milling process, when clavus is fermented to alcohol, around one-third of the Dry Matter (DM) is recovered in co-products which, in turn, are further processed into a variety of feed ingredient products. The conversion from DM to DG involves starch fermentation which finally produces two feed co-products Maize Condensed Distillers Solubles (CDS) and Maize Distillers Dried Grains with Solubles (DDGS), which are adequate in es sential nutrients such as protein, fat, minerals.Aside from Distillers Grains, which result from the dry milling process, there are several nearly early(a) maize co-products used in feed rations, mostly derived from the more traditional wet milling process. One ton of maize through wet milling produces 29 kg of Maize oil, 241 kg of 21% protein gluten feed, and 46 kg of 60% gluten meal. In addition to it, either one among starch (571 kg) or draw (589 kg) or neutral spirits (402 kg) back be produced.The most common ones areMaize Gluten Meal Dried high protein (almost 60 percent) feed initiation. It is a residue from maize after the removal of the larger part of the starch and germ, the separation of the bran by the process employed in the wet-milling manufacture of maize starch or syrup. It is usually used by the poultry industry, recruit animal feed in fish and fondle food. It is also used in cattle feed.Maize Gluten Feed Is that part of the commercial shelled maize that re mains after the extraction of the larger portion of the starch, gluten, and germ by the processes employed in the wet milling manufacture of maize starch or syrup. It is used in complete feeds for dairy and beef cattle, poultry, swine and pet foods.Maize Seed Cake With over 17 percent protein, it is considered prototype feed for breeding chickens, ducks, geese, pigs, fish, and early(a) livestock.Maize Germ Meal typically contains more than 20 percent protein and 9.5 percent fiber. It has an amino vitriolic fit that makes it valuable in poultry and swine rations. It is also used as a carrier of perspicuous feed nutrients.Liquid Feed Syrup It is a highly concentrated feed syrup high in protein and energy. This product is typically added to enhance an animal feed ration.2. OUR BUSINESS MODELMaize has multiple uses both for domestic as well as industrial purposes. The usage pattern as seen earlier in the report varies for gay direct consumption to industrial chemical production ma inly in the form of neutral spirits/alcohol. Since maize is a multi-seasonal crop i.e. it is harvested in both the season of rabi and kharif so we have the liberty of designing a line which has the capacity to consume maize throughout the year. When we worked out the financials for the main industries found on maize , we found out that out of ethanol, starch and poultry feed pipelinees the most profitable are poultry-feed from maize and ethanol from maize stover. So we would we making ethanol from stover and poultry feed from the maize, in this right smart we would be utilizing whole of the maize be textile and providing the farmers with a such(prenominal) better returns that what they are getting at present.Product address incurred(Rs. Per tonne) Revenues(Rs. Per tonne) Profit(Rs. Per tonne)Maize(whole) 9000 10500 1050 bird feed 9400 12000 2600Starch 10000 12000 2000In the initial phase we purpose to use the maize stover (the left out part of the plant after the grains ar e removed) for the production of force out grade ethanol which is procured by the authorities oil marketing companies under a contractual basis at pre-determined prices set by them. The maize grains are stored in silos which could be interchange post-harvest season when the prices goes up by 20-30% ever year, which is evident from the price strain cycle shown above (fig 3). Presently we are development maize stover as raw material but straw of other crops worry wheat, rice and millets having cellulose content pile also be used as startle signal material in ethanol production. If we ever face shortage of maize stover in our plants capacity utilization then we can procure other raw materials from the same farmers.The location which we are planning to setup our plant is in the Dhaod district of Gujarat. This area has the highest maize production in the state along with the bordering areas of Madhya Pradesh. This is geographically near to the industrial areas of Vadodra and Ahm edabad, which are large consumers of starch and bio- provide ethanol (As large oil refineries operate near Vadodra so we would non be having any problem in selling the ethanol in markets. And starch based industries are located in and around Ahmedabad which consumes starch in large quantities).The procurement of maize along with Stover would lead to an increase in the working expectant exigency but that would be outset by the increased revenues from the sale of that maize. Also the cheering matter that would be left out as an affluent during the fermentation process would be useful as feedstock material. The carbon dioxide produced exit be sold as industrial carbonic acid gas which will make the whole process of ethanol processing a clean development process, with zero carbon emission. As depicted in the table 1 below, total salute/ l of ethanol is lowest from maize stover for equal amount of raw material consumed.Input Procurement (Rs/ton) Enzyme live (Rs/ton) grain alcohol Yield (Litre/ton) Total equal (Rs/Litre)Sugarcane 640 Negligible 72 9Maize 8500 Negligible 450 11Maize Stover 2000 700 300 73. ETHANOL FROM MAIZE STOVER3.1 Customer take to be propositionOur main node is government that would be procuring ethanol from our plant. The customer pass judgment that we are creating is the availability of ethanol throughout the year for successfully implementing the E5, E10 and gradually E20 grade ethanol. The ample amount of availability would help in reducing the dependency on imported fuel that we are down right now. Also mixing of ethanol into diesel reduces emission from vehicles as it has higher(prenominal) per cent age of oxygen in it. There is a huge deficit of around 650m litres of ethanol for blending in diesel. The bio-fuel indemnity of India, states that by 2017 the country should fully implement the E20 standards for EBP. E20 means blending 20% ethanol in the diesel, but at present ethanol is not sufficient for even meeting the E5 stan dards. As the production of fuel ethanol comes under the category of bio-fuel as defined by the ministry of non-renewal energy, government of India, so we would be eligible for a 25% rebate on capital investment.3.2 Demand and Supply of fermentation alcohol When will the oil run out? Various estimates put this anywhere from 20 years from now to less than a century in the future. The shortfall in energy strength eventually be made up by developments in nuclear fission, fuel cells and renewable energy sources, but what can substitute for throttle and diesel in the internal combustion engine powered vehicles that will continue to be built worldwide till then? accordingly the bio-organic chemists have begun to crystallize, unlocking the vast chemical larder and workshop of natural microbes and plants to comprise the technologies required for industrial- master production of bio-ethanol . Maize accumulates starch that can, after hydrolysis to glucose, serve as the substrate for eth anol fermentation. Maize starch is a more expensive carbon substrate for bio-ethanol production, but if maize stover is used as starting material for ethanol production then it is economically more viable. The product has a potential rival in the form of bio-hydrogen which could provide the only workable solution to meeting global energy supplies and mitigating carbon-dioxide accumulation but it is still in a nascent stage.Globally, ethanol has been used as an automotive fuel since the early 1900. However, the usage of ethanol as fuel gained momentum only after the 1970s with the launch of the Pro-alcohol programme in Brazil. Until 1975, the year of the launch of the Pro-alcohol programme in Brazil, the ethanol market was preponderantly beverages and industrial. Thereafter, the fuel ethanol market grew substantially and it accounted for 80 % of the world ethanol production in 2010.The global ethanol industry with 19,227 mn gallons of production during CY09 has grown substantially ov er the years due to the focus on bio-fuels. During the period of 1975-2009, the global production of ethanol grew at a intensify Annual Growth Rate (CAGR) of 11.86%. The rising crude oil prices, conjugated with the increasing quest for energy security and reducing green post gas emissions have fuelled the global ethanol industry. The United States of America and Brazil are the two major ethanol producers across the globe. These two countries unneurotic accounted for almost 89% of the total global ethanol production in 2009.The fermentation pathway using sugary or sugar-yielding material and yeast has been in practice in India since long for the production of alcohol or Ethanol. Most of the Ethanol produced (almost 95%) is through the fermentation route. Grains like rice, corn or maize, barley-malt, rye, wheat, sorghum etc., starchy bulbs and vegetables like cassava (tapioca) and potatoes are commonly used for producing ethanol under the fermentation route in India. In India, eth anol is mostly produced from molasses obtained during the process of crushing sugarcane.3.3 Classification of ethanolEthanol can be categorise on the basis of uses, production route and on the basis of composition1. On the basis of the uses, it can be classified as beverage ethanol, industrial ethanol and ethanol fuela. Beverage Ethanol ethanol used in alcoholic spirits such as vodka and shochu.b. Industrial Ethanol ethanol used as a feedstock for alcohol-based chemicals such as paints and inks.c. Ethanol fuel ethanol used as an automotive fuel (can be used for blending with petrol).2. On the basis of the production route ethanol can be classified as fermented ethanol and synthetic ethanol.3. On the basis of the composition, ethanol can be classified as hydrous and anhydrous. (Hydrous ethanol contains about 5% of the water content whereas anhydrous ethanol contains 0.5% of the water content)Year natural gas demand MtEthanol blending requirement (in metric tons) diesel motor demand Mt Biodiesel blending requirement (in metric tons)5 % 10% 20 % 5% 10% 20%2006-2007 10.07 0.50 1.01 2.01 52.32 2.62 5.23 10.462011-2012 12.85 0.64 1.29 2.57 66.91 3.35 6.69 13.382016-2017 16.40 0.82 1.64 3.28 83.58 4.18 8.36 16.723.4 Process descriptionThe maize stovers are generally harvested during the month of September October in kharif season maize and in March- April for Rabi season maize. The maize stovers can be unploughed in the open after the harvest as the requirement is round the year in the manufacturing plant. But the use of concrete slabs over which the stovers are kept will be a good option to minimize the spoilage. sometimes the polythene sheets can be used to prevent spoilage from rainfall. The requirement of the stovers is 1000 MT/day.1. Washing of the stovers The first process in the factory is the washing of the stovers to remove the dust, soil etc. The water is sprayed on the caboodle of stovers in high blackmail and thus the soil and other square(a) partic les are removed.2. Pre give-and-take Hydrolysate conditioning After washing of the stovers they are sent for pretreatment. By this process most of the hemicellulose parts of the stovers are converted into soluble sugars like xylose, mannose, arabinose, and galactose using dilute sulfuric acid at high temperature. After reaction there is formation of aldehydes which is over limed by adding lime, the pH raise to 10 and thus gypsum is formed which is filtered out and the hydrolyzate is mixed with the solid before sent to saccharification and co-fermentation.3. Presteamer at low pressure Before send to the reactor the pretreated stovers are passed through the steam at low pressure to remove the non-condensable that can take up space in the reactor. The low pressure steam is passed by the valve for 20 minutes and then the stover is audacious cooled and sent to the reactor.4. Reactor In the reactor first the stovers are sozzled and then the acid is added to the reactor. Before adding t he acid to the reactor the concentrated acid is diluted.5. Saccharification and co-fermentation These are two different processesi. Saccharification In this process the cellulose is converted to glucose with cellulose enzyme. It is a collection of enzymes and comprises of endoglucanase, exoglucanase and beta-glucosidase. Trichoderma reesei is the bacterium which is used for the commercial production of enzyme cellulase. The whole process takes 24 hrs.ii. Co-fermentation The formed glucose and other sugar is fermented to form ethanol. The bacteria used in this step are Z. mobilis which acts as a biocatalyst and will ferment glucose and xylose in ethanol. This whole process takes 36hrs.6. Distillation, dehydration, evaporation and solid liquid separation Distillation is accomplished in two columns the first, called the beer column, removes the dissolved CO2 and most of the water, and the second concentrates the ethanol. Fermentation vents (containing mostly CO2, but also some ethanol) as well as the beer column vent are rub in a water scrub brush, recovering nearly all of the ethanol. The scrubber effluent is feed to the first distillation column along with the fermentation beer. The leftover liquid and the slurry are sent to the waste water treatment plant from where the water is recycled for further use.3.5 Financials of ethanol productionWe have a total installed capacity of 90000 tonnes per annum, of which the capacity utilization in the initial years would go up from 50% to 90% in the subsequent years. The determined cost is 50crores which is 39% of the total investment required. newfangled material cost is 43% in the first year of the total investment. Warehousing cost and other variable costs including that of salaries and transportation, etc. amounts to 3% and 8% of the total cost respectively. The profit after tax in the first year of operations totals to around 24crore. The break-even point is achieved in the second year of operationsYear % 2011 20 12 2013 2014 2015Installed Capacity (ton/year) 90000 90000 90000 90000 90000Capacity utilisation 50% 60% 70% 80% 90%Ethanol production(ton/year) 45000 54000 63000 72000 81000Price(Rs/ton) 24000 24000 24000 24000 24000Revenue( Rs in Crore) 108 129.6 151.2 172.8 194.4( Rs in Crore)Fixed Cost 39 50Raw Material 43 55.5 66.6 77.7 88.8 99.9Warehousing 3 3.6 3.6 3.6 3.6 3.6Transportation 1 1.7 2.0 2.4 2.7 3.0Direct Labor 2 2.1 2.1 2.1 2.1 2.1Admin Costs 1 0.7 0.7 0.7 0.7 0.7Energy Costs 2 2.3 2.7 3.2 3.6 4.1Waste Disposal 1 1.1 1.1 1.1 1.1 1.1 separate V.C 8 11.5 12.2 13.0 13.8 14.6Total Cost 128.4 91.1 103.8 116.4 129.1Benefit Cost -20.4 38.5 47.4 56.4 65.34. MAIZE stiffen PROCESSINGMaize is generally processed to manufacture Maize starch by wet milling method the world over. The by-products of starch manufacture, like Maize oil, Maize steep liquor, gluten etc. are the important value added products.The average processing capacity of the units in India is 200 MT of maize / day. There ar e plants with as high crushing capacity as 400 MT/day. However, there is no plant in the country with crushing capacity of less than 100 MT/ day. The selection of engine room is very important as regards to the viability of the unit is concerned.Critical Factors in saddle horse up a maize processing plant include Raw Material, Land, Water, Steam, Technology and an Effluent treatment plant. A plant of 100 MT of wet milling maize crushing capacity per day is considered as a minimum viable unit. A unit of this capacity will produce the following products. The plant will function in 3 shifts per day and 8 hour per shift. Keeping in view, the nature of exertion the capacity utilization of 50%, 70% and 90%, during first, second and third year onwards can be achieved easily. The expulsion cost for tantrum up of a 100 MT wet milling of maize per day has been assessed at Rs. 14.32crores (Refer to Annexure 4 for details.)5. POULTRY FEED FACTORYThe poultry feed plant of the capacity of 30 000 tons/year. The total capital investment is about Rs.60lacs. In the first year the expected revenues are around 18crores, this is at the annual capacity utilization of 50%. The PAT is 2.63crore and the NPV of the project comes out to be 18.93crore at the discount rate of 15% per annum. (Refer to annexure 3 for details).6. ECONOMIES OF SCALE, SCOPE AND INTEGRATIONEconomies of Scale Producing Ethanol from Corn at low levels is not financially viable. We need to increase the production levels for a sustainable and a profitable business. Therefore the Economies of Scale have to be high but they are still comparatively less than other Manufacturing industries. It relies to a great extent on the cost of corn and other energy inputs. broad(prenominal) Economies of scale helps us in reducing transportation as well as Marketing costs.Economies of Scope Maize oil, Gluten Feed, Gluten meal, Starch and Ethanol can be produced through wet milling method. Ethanol is produced from corn stover . Starch can be used for producing various other products. Producing Ethanol from Corn at low levels is not financially viable. We need to increase the production levels for a sustainable and a profitable business. Therefore the Economies of Scale have to be high but they are still comparatively less than other Manufacturing industries. It relies heavily on the cost of corn and other energy inputs. High Economies of scale helps us in reducing transportation as well as Marketing costs.Economies of Integration Forward integration involves processing of maize stover to produce ethanol. Wet milling of maize is done to produce starch. Maize can also be used to produce poultry feed.7. RISKS abstruseSupply array RisksPrice Impact on Input Cost At this point, ethanol plants are dependent on a uninterrupted supply of maize for their survival in fuel production. This gives the supplier the ultimate industry power until we achieve alternative feasible sources. The elasticity of demand is in elastic in most cases, or at least until the price of corn rises to the point where ethanol plants would be very unprofitable in production. The price is given for the input and we don t have very much(prenominal) choice in refusing because ethanol plants need to run at as close as possible to capacity in order to be most efficient. In this scenario, ethanol will be passed off at a higher price, but also the ethanol plants will eat some of the cost in order to stay competitive.Demand Side RisksGovernment Policy Right now Government offers incentives to blenders who buy from Ethanol plants in case there is any change in policy there could be a abate in the demand of ethanol from blenders. Government currently does not allow companies to import ethanol from alien market to meet their domestic requirements, in case there is any change in this policy there could be a decrease in demand of ethanol from various ethanol plants in our country. opposition With increase in competition, th e supply demand gap currently in the market will decrease, which will lead to less demand of ethanol from various plants. Competition exists in the form of ethanol produced from Jatropha and other plants.8. PORTER S 5 FORCE ANALYSIS OF THE INDUSTRY9. cherish ADDITIONValue can be added to the product by form, place and time. In our case we are producing ethanol from maize stovers. The different value additions in our project are-1. By formWe are processing maize Stover, which has very less economic value to the farmer and converting it into ethanol. The value is added by processing cheap maize Stover to ethanol, which has high price and demand. Thus by processing, the form is changed leading to value addition in the produce. We would be using the maize grains for production of poultry feed which is found out to be a viable option.2. By placeWe are adding value to the Maize stover by taking it from the farms to the factory gate. The stover in farms does not fetch much value but once it reach to processing unit, it can be converted into ethanol, which is more valuable. We are also procuring maize grains from the farmers and selling it in the market, where, we can fetch comparatively more value.3. By timeWe are procuring maize grains during the harvesting season when prices are normally low. The grains will be then stored for the period of four months and afterwards sold at higher prices. Thus storing the maize for some time will provide us comparatively more value.10. SOCIAL IMPACT1. By procuring Maize Stover from the farmers, which is other has a low economical value to them, we are providing with the additional source of income to the farmers. The additional benefit to the farmers is expected to be around Rs.2000-2500 per acre .2. The ethanol produced by us finds its use as the additive in petrol. The addition of ethanol will reduce the emission of green house gases proportionately, thus our product is eco-friendly.11. SCOPE OF CO-OPERATIVEThe back bone of ou r business model is the continuous supply of maize throughout the year. In order to attain maximum utilization capacity of the plant we need a high and undisruptive supply. The location where the plant would be set is surrounded by villages indulged in rain fed agriculture practices, and they are our raw material suppliers. These types of practices are risky for our business model, so in order to abate the risk Cooperative could be formed. This will help the farmers to reap benefits of the cooperatives. Cooperative will also crack un-interruptive maize (also Stover of other plants) supply to our plant. This cooperative model would not be maize specific. Backward integration will be done if the results would be as per expectation in the starting years.