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Introduction
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- Trade policy has been
important in the expansion of the cassava industry.
- Successful markets evolved
from policies that opened a niche for dried cassava in
Europe's feed industry.
- From near zero in 1960,
Thailand's exports of chips and pellets grew to over 8
million tons annually in 1992-94.
- Pellets, introduced in the
late 1960's, required less space during transportation,
greatly reducing transport costs.
- The increasing demand for
cassava pellets in Europe led to expansion of the cassava
growing area, pushing cassava farming further Northeast.
- Planting area and
production increased from 600,000 rais (96,000 hectares)
and 1.7 million tons in 1961 to 9.4 million rais (1.5
million hectares) and 20.5 million tons in 1990.
- Land area to cassava has
since gradually decreased to 6.5 million rai (1998).
- Since 1994, the portfolio
of cassava exports has diversified – due to policy
changes in Europe. In 1982 chips & pellets
represented 88% of the total utilization, this decreased
to 70% by 1992 and 50% by 1997. Starch accounted for
the remainder.
- Cassava is a major export
for Thailand; in 1997, it was worth 22 billion baht.
- Cassava production is not
consistent year-to-year and as a result planting area and
price fluctuate.
- The international price of
cassava is largely related to the supply of corn.
- Corn is also widely used in
Europe as a feed ingredient. Thus shortage of corn
increases demand for cassava and hence an increase in its
price.
- A mixture of tapioca
pellets or chips at 0.85 parts and soy meal at 0.15 parts
has an equivalent nutritive value of corn.
- Cassava pellets exported to
Europe are mostly used for the production of swine feeds.
- Cassava is not suitable for
the production of feeds requiring high protein content
such as those for shrimp and chicken.
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Production areas
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The northeastern region is
the major area producing cassava. About 60% of the
total planted area is in this region.
Major provinces: Nakhon
Ratchasima is the main producing area (accounting for 22% of
the total); followed by Chiyabhum; Chachoengsao; Prachin
Buri; and Udon Thani.
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Utilization
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- Most of the cassava
produced in Thailand is exported in the form of pellets or
starch (native & modified).
- Cassava is processed into:
- In Thailand, a small amount
of cassava root is used for human consumption, usually in
the form of traditional desserts.
- Cassava slices and pellets
are a common constituent in dairy feed (36% of the
formula). They must be mixed with a protein source
such as soybean cake (28%). This type of feed is suitable
for swine.
- Cassava root is the basic
raw material for cassava starch.
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Domestic demand
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- A small amount of cassava
is used for direct consumption.
- Domestically, cassava is
used in the form of starch by local consumers and local
factories.
- The starch is used for the
production of a wide range of products including, paper,
sweeteners, drinks, medicine tablets, foods and MSG.
- About 400,000 tons/year of
cassava pellets are used for swine and cattle feed
production. However, this depends on the prices of
corn, soy meal and cassava.
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International trade
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- Most cassava products in
the form of chips, pellets or starch are exported.
- The proportion of the three
has changed dramatically over the years, with starch
playing an increasingly more important role.
- In value terms for 1998 –
pellets (Bt 10.6 billion); starch and flour (Bt 5.2
billion); dextrin /other starch derived products (Bt 5.3
billion); chips (Bt 587.2 million) and other products (Bt
189.9 million).
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Trends/ recent news
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- Thailand is attempting to
lower its dependence on the animal feed industry by
promoting production of starch, particularly higher value
modified starches.
- A major concern of the
government, farmers and processors is the variability of
cassava root prices. In an attempt to stabilize these
prices a commodities market for cassava will be introduced
this year.
- Land area to cassava has
increased this year as farmers have shifted from wheat and
maize to production of cassava.
- Cassava output for 2000 is
forecast, by the industry, at 20.26 million tons, 23% more
than the 16.37 million recorded last year. However,
the increase will cause the price to fall to 0.75 baht per
kilo from 0.70-0.80 baht now. About 1.3 billion baht
will be spent to intervene in the production and marketing
of cassava to shore up the price of the root at 0.85 baht
per kilo.
- Nine million tons of
cassava will be converted to pellets and eight million
tons to starch this year.
- Current (average) cassava
production cost is Bt0.56 / kg.
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