September 12, 2008
Thailand''s tapioca exports to climb as more use it for feed
Thailand may export 4 million tonnes of tapioca next year, up 25 percent from this year, as buyers in China and Europe shift away from more expensive corn, a Thai exporters'' group said on Thursday (Sep 11 2008).
Chen Wongboonsin, head of the Thai Tapioca Trade Association, told Reuters in an interview that Thailand could sell all its tapioca crop next year, especially since China is likely to buy more tapioca to expand its ethanol and livestock industry.
China, the biggest buyer of Thai tapioca, is likely to buy 3 million tonnes next year.
Thailand is the world''s biggest exporter of tapioca, a starch made from cassava.
Thai tapioca prices reached a record high this year which subsequently caused a drop in demand as China, the largest buyer switched to alternative products such as corn.
Now with corn prices on the rise again, it is likely that tapiocawould find favour with ethanol producers again, Chen said.
Thai tapioca was fetching US$180 a tonne on Wednesday, down from more than $200 a tonne in May.
This compares with feed-grade corn prices, which were at US$230 per tonne, although down from US$300 per tonne earlier this year.
Thailand is expected to produce 28.5 million tonnes of cassava from the 2008/09 crop, up from 25.5 million tonnes in the previous year.