Thai exports of tapioca products are expected to continue growing this year, boosted by global demand as importers seek alternatives for maize, which has become costly because of the ongoing Russia-Ukraine war.
According to Commerce Minister Jurin Laksanawisit, the ministry expects outbound shipments of all types of tapioca products to top 11 million tonnes this year, compared with 10.4 million tonnes in 2021, with an export value of 130 billion baht (about US$4.2 billion), up 6% from a year earlier.
In 2021, Thailand shipped 123 billion baht worth of tapioca products, up 48% year-on-year, while the 10.4 million tonnes were a 45% uptick from 2020. Nearly 70% of the exports went to China, with other destinations comprising Japan, Indonesia and South Korea.
Thailand's domestic production still lags domestic demand, with the production of fresh cassava roots totalling 35 million tonnes, compared with demand for 42 million tonnes.
According to Mr Jurin, the current price of fresh cassava root averages 3 baht per kilogramme for 25% of flour percentage, which is higher than the 2.50 baht per kg guaranteed by the state-sponsored farmers' income guarantee scheme.
He directed ministry officials to work with related public and private agencies, as well as farmers, to expand the export markets and seek new buyers both for tapioca chips and flour.
"We expanded exports to markets such as Turkey, New Zealand, India, Saudi Arabia and the Philippines," said Mr Jurin. "Potential buyers from the Philippines are coming to Thailand to negotiate the purchase of about 3-4 million tonnes of Thai tapioca products."
He said the ministry is also expediting the promotion and upgrades of bioplastic product development made from tapioca. The ministry recently signed a memorandum of understanding with 11 agencies to promote and develop tapioca-based bioplastic products.
The ministry aims to boost shipments of tapioca-based bioplastic products to at least 1 billion baht by 2024.
Pitak Udomwichaiwat, director-general of the Foreign Trade Department, said the ongoing war has led to higher demand from foreign buyers as nations increase grain reserves for consumption, while animal feed and energy firms pivot to cassava products.