Thailand’s tapioca exports face tough times as China switches to coal
Thai tapioca exporters are calling on the government to provide more support, as the 127-billion-baht industry faces tough times ahead due to its largest customer, China, switching from tapioca chips to coal as the raw material to produce ethanol.
China has started testing its ethanol manufacturing facility in Shaanxi province, Chumphol Kajohnchalearmsak, president of the Thai Tapioca Starch Association, said on Friday.
Once the factory is fully operational, it would produce 500,000 tonnes of ethanol per year by using coal, which is cheaper than tapioca chips by 3-4 yuan (15-20 baht) per tonne, he added.
“This factory will be the world’s largest producer of ethanol from coal, and will further reduce the demand for imported tapioca, as well as similar agricultural products such as corn and sugarcane from Thailand,” he said.
Chumphol said that last year Thailand exported tapioca products worth 127 billion baht, with China accounting for 63% of the total exports.
He added that due to the high production cost in Thailand, the price of exported tapioca chips have now risen to US$238 per tonne, forcing several buyers to postpone placing their orders.
“Furthermore, in the first half of this year the demand from China has dropped by about 50% year on year due to the fluctuations in the value of the baht and the high output of GMO (genetically modified organism) corns in China, which could substitute tapioca chips in ethanol production,” he said.
Chumphol called on the government to provide support measures to either bring the cost down or increase tapioca output to boost competitiveness in the export markets.
“We need tangible support in eradicating the cassava mosaic disease, which drastically affects the total output per rai, as well as financial support for purchasing high-quality stem cuttings that can withstand diseases,” he added.
