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current position > HOME > NEWS > Industry news > Cassava production and processing has good profitablity
Cassava production and processing has good profitablity

As we all know, Thailand is a big country in the production and export of cassava starch. Let's roughly calculate the production cost of Thai cassava starch. It is known from Wuming Cassava Starch Factory that about 3.8 tons of fresh cassava can produce one ton of cassava starch, and the cost of producing one ton of cassava starch is: 50*3.8+90+30=310 USD/ton. $50 is the price of cassava raw materials, $90 is the processing fee (including taxes) and other related expenses for producing 1 ton of cassava starch, and $30 is the profit margin of the manufacturer, which roughly measures the production of one ton of cassava starch by the Thai starch factory. The cost is $310 per ton, and the current price of Thai cassava starch is $410/tonne (FOB price), which shows that the profit margin of traders is very large. Thailand now exports better agricultural products and foods. cassava starch has become a pillar industry in Thailand. The export price of cassava starch directly affects its national income and tax revenue. Most of Thailand's cassava starch is exported to China.


Cassava production and processing has good profitablity. As a crop, cassava has advantages in production, such as high yield per unit area, drought tolerance and adaptation to poor land, and great flexibility in planting and harvesting. It is highly competitive as a source of starch extraction. Its roots contain more starch than almost any other food crop, and the starch extraction technology is simple to operate. The export price is always lower than the EU, US, potato, corn and wheat starch, therefore, cassava starch has a strong competitiveness in the international market.

As a program promoted by IFAD and FAO, the Global Cassava Development Strategy recognizes the importance of processing fresh cassava roots within a market-driven commodity chain to produce by-products such as starch. However, although global demand for cassava has increased over the past 25 years, only in Thailand, cassava has completed the conversion of staple foods to processing products and raw materials in industrial production. In Africa, which produces more than 100 million tons of cassava roots per year, there is almost no starch extraction industry except Nigeria and South Africa. “In most countries in tropical Africa, cassava root is a basic staple food, an important reserve for other crop failures and an increasingly economic crop for the urban market,” Root and tuber crops at FAO's crop and pastures. Although the starch imported by some countries can be produced locally by cassava, its government has not been able to adjust its policies to encourage the production of cassava starch. But in any case, the prospect of the cassava processing market in Africa is very good. SIDA Company has an office in Nigeria and also go to African countries to participate in exhibitions and visit customers. African countries consumption quantity for cassava products (mainly the starch, cassava flour and garri) is very large, and cassava starch is consume and growing is large in Africa and elsewhere.


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