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MAIZ= Corn

AR= Argentine

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M A I Z A RM A I Z A R

Association of Argentine Association of Argentine Institutiones and Businesses related Institutiones and Businesses related

to the to the Corn Value Chain.Corn Value Chain.

•Increase profits of links

•Social & Economic Development

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A rgentinaA rgentina

Where we areWhere we are

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Argentine geography compared with US geography

1) Argentine has a very wide planting

windows because its Ag belt is thin &

long.

2) Because of the latitude & ocean influence, in the

main Arg Ag area does not snow which

means that is very efficient to feed livestock/cattle

during winter time

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Corn Value ChainCorn Value Chain

Research and

Development

FarmSupplies Farming

Industry And

Consumption

Trade And

Exports

Government

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Corn Value ChainCorn Value Chain

• New hybrids

1. 1. ResearchResearch

• New areas: N east, N west, South

• Corn types: semident, flint, HVC, popcorn, etc

• Biotech approval method since 1991: Example to other LA countries

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Interaction of genetics with farm practicesInteraction of genetics with farm practices

70/BD/SF 52/AD/CF

16,908

10,4278,757

12,093

0

2

4

6

8

10

12

14

16

18

1980 200038 %

62 %

93 %

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Corn Value ChainCorn Value Chain

•20 Seed Companies

2. 2. Seed & other suppliesSeed & other supplies

•Biotech Events approved:•Bt Corn: (Mon 810, Bt11, 176)•RR Corn: (NK603)•Glufosinate Tolerance:(T25)

•Biotech Events approved for farm testing:•Corn Dwarf Virus (Mal de Río IV)•Stack: RR+Bt Corn•High Lisine Corn.•Herculex

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Source: Jefferson Davis

3%6%

20%

40%

65%

80%

92%98% 98% 98% 98% 98% 98% 98% 98%

3%

14%

34%38%

44%

58%

68%

75% 75% 75% 75%

0,40%4%

10%

18%25%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

RR Soy Bt Corn RR Corn

Adoption Curves RR Soy, Bt & RR Corn

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Corn Value ChainCorn Value Chain3. 3. FarmingFarming

• Fast Yield Increase: 1970: 25 qq/ha. 2003: 65qq/ha

• Direct drilling massively adopted: 70 %

• Crop area is increasing

•Corn crops are closer than 250 miles from ports.

• High yield and per hectare profit: 130 qq/ha

•Combines with GPS• High tech growers: 50.000 farmers• Significant growth potential

• Next 3 years 30 Additional Million Tons• 10 Mhas suitable for area expansion

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CORN: CHARACTERISTIS & PLANTING ZONES

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4. Industrializa4. IndustrializatiotionnCorn Value ChainCorn Value Chain

•Total domestic trade 5.6 mill tons of corn

•Tot farm use 2.7 mill tons of corn

•GRAND TOTAL 8.3 MILL Tons

•Ethanol: Legislation soon to be approved

•Anual Average Growth: above 10%

•2010: Domestic Corn Consumption: 12 mill tons?

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Corn Value ChainCorn Value Chain5. 5. Exports and TradeExports and Trade

• Exports. 10 millon metric Tons

• 2nd. World Exporter

•Private, efficient terminals by the river Parana & sea.•Barge & train domestic transportation: Improving.•Truck: Weakest link– Average age: above 15 years.•Semident: appreciated due to its quality. •Threats:

• Growing requirements in the EU and Japan regarding:• mycotoxins, •pesticide residues •approach to biotechnology.•Subsidies.

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* FERTILE SOILS & NO LIMING NEEDED

Key Success Factors :

* EASY TO WORK : THE ENTIRE AGRICULTURAL AREA IS FLAT

* CHEAP TRANSPORTATION: AGRICULTURAL AREA CROSSED BY A RIVER THAT FLOWS INTO THE OCEAN.

* APPROPIATE WEATHER : TEMPLATE TEMPS. RAIN SEASON DURING THE NATURAL PLANTS CYCLE.

* ADEQUATE LAND DISTRIBUTION PERMITS AN EASY TECHNOLOGICAL ADOPTION.

* CONCENTRATED AG AREA : THE AG. AREA IS A 500 KM BY 1200 KM AREA.

* FREE AG MARKET ENVIRONEMENT: NO GOV. INTERVENTION IN LAND DISTRIBUTION NOR IN WHAT FARMERS PLANT

Argentine Corn Value Chain CompetitivenessArgentine Corn Value Chain Competitiveness

* EFFICIENT NATURAL DRAINAGE

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M A I Z A RM A I Z A Riis:s:

More Hectares Planted

Higher Yield per Acre

Higher Margins

MAIZARMAIZAR = Better businesses

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Thanks for your kind attention,

Johnny Avellaneda,

President

MAIZAR- Argentine Corn Association

Phone: 005411 5031 2676

Email: info@maizar.org.ar