Cassava Starch Market Is Bullish, Cassava Processing Opportunities And Pressure Coexist

In March 2008, the price of domestic tapioca starch rose sharply. The price per ton increased by about 500 yuan compared with that in February. The price of domestic tapioca starch was 3200-3500 yuan/ton. The increase of tapioca starch price brought great pressure on the power unit. There are also opportunities and pressures for the tapioca starch industry.

The opportunity is not only the domestic market, but also the strong demand for tapioca starch in the international market, the price has risen sharply, and the related products have risen, the tapioca starch has been reduced, so that the rising trend is not inhibited, and the benefit of the tapioca starch processing enterprise is greatly increased.

The pressures that exist are mainly in the following aspects. First, rising raw material prices and rising energy prices have led to a significant increase in processing costs. This has caused cassava starch processing enterprises to face enormous cost pressures. Second, fierce competition in raw materials, many cassava starch processing enterprises are underemployed. Since the cassava was reduced in production in early 2008 due to the rare frost damage, and the fierce competition of fuel ethanol, the price of raw materials rose, the purchase price of cassava was 450-480 yuan/ton, which is also the main factor for the price increase of cassava starch.