CA2320EN.pdf

Cassava also features prominently in diets in latin

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Cassava also features prominently in diets in Latin America and the Caribbean, especially in Brazil, where the blending of cassava flour with wheat flour is mandatory. Likewise, in South Asia (India) and Southeast Asia (Indonesia and the Philippines), cassava is widely consumed as food. However, since feed markets for cassava are also well established in these regions, it is difficult to assess precise changes in utilization for direct human consumption. The extent of demand for cassava as a raw material in the energy sector, particularly in East and Southeast Asia, is uncertain. Generally, rising gasoline prices in Southeast Asia has placed ethanol at a competitive advantage, in spite of mandatory blending. In Thailand for example, where cassava is a common energy feedstock, E85 (85 percent fuel ethanol and 15 percent gasoline) competed very favourably with regular gasoline in 2018. However, production shortages of the raw material may suggest that other feedstocks, especially those derived from sugar cane, could be utilized more than cassava. On the other hand, lack of international demand for cassava could imply that the feedstock is diverted onto the Thai domestic market, thus negating any potential shortfall. In China, the Implementation Plan Regarding the Expansion of Ethanol Production and Promotion for Transportation Fuel, launched in September 2017, targets nationwide use of E10 (10 percent fuel ethanol and 90 percent gasoline) in transport fuel by 2020 (utilizing 10 million metric tons of ethanol), citing the “imperative to reduce excessive maize stocks and reduce air pollution”. While the Plan also outlined an acceleration in the construction of cassava-based fuel ethanol facilities, it is unlikely that cassava-ethanol utilization will increase in 2018, given that China typically sources much of its cassava for ethanol production from the regional market, and inflows are expected to be substantially down during this year. Based on analysis in countries that have established markets for cassava feedstuffs, the global use of cassava as an animal feed in the form of chips and pellets could see a small rise in 2018, particularly in the larger producing countries of Latin America that are not expected to undergo a contraction in production. The lack of import demand for cassava chips and pellets in China points to a contraction in cassava feed use, suggesting that Thailand and Viet Nam could divert international supplies hitherto destined for China, to their own feed sectors.
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FEATURE ARTICLES
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Feature articles 25 FOOD OUTLOOK NOVEMBER 2018 DEPRESSED INTERNATIONAL COFFEE PRICES: INSIGHTS INTO THE NATURE OF THE PRICE DECLINE Contributed by: El Mamoun Amrouk [email protected] INTRODUCTION Coffee is the most widely traded tropical product, with an estimated 25 million smallholder producers globally accounting for 80 percent of world production.
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