Large Thai feed producers are increasing their use of tapioca chips by 15%, with the trend expected to continue for 2-3 months, according to the Department of Internal Trade (DIT).
Wittayakorn Maneenetr, director-general of the DIT, said the department has been working with the Thai Chamber of Commerce, the Board of Trade of Thailand, the Northeastern Tapioca Manufacturers Association and the Thai Feed Mill Association to encourage the livestock sector and feed manufacturers to use tapioca chips in animal feed formulations.
The initiative aims to purchase 1 million tonnes of tapioca chips, equivalent to 2.5 million tonnes of fresh cassava, he said.
Mr Wittayakorn said large feed producers already increased their use of tapioca chips in feed production by 15% since December 2024, with an additional 15% uptick expected over the next 2-3 months.
He said the current cassava price allows feed producers to adjust their feed formulations and increase the use of this ingredient.
"Large producers already modified their formulas, and we will discuss this issue further with other players in the sector," said Mr Wittayakorn.
He said using domestic raw materials benefits producers by providing more stable pricing and supply while supporting farmers by absorbing agricultural products.
There are more than 40 clean tapioca chip producers nationwide that can supply their products to meet user demand.
The average price of fresh cassava roots with 25% starch content is 2.28 baht per kilogramme nationwide, with prices ranging from 2.10 to 2.45 baht per kg in some areas.
This price level is similar to before the Russia-Ukraine war in 2021, with an average of 2.41 baht per kg.
In regions where farmers face lower prices, the department plans to collaborate with the Public Warehouse Organization to bring in buyers from other regions to enhance distribution channels and foster competition, said Mr Wittayakorn.
In 2024, cassava product exports totalled US$3.13 billion, a 15.6% dip year-on-year.
The decline was mainly due to the decreased exports of tapioca chips, according to the Trade Policy and Strategy Office.
The key exports markets include China, which accounted for 51.4% of total export value, followed by Japan, Indonesia, Taiwan and Malaysia.