China Initiates Testing of Largest Ethanol Production Facility, Impacting Tapioca Exports in Thailand
China has commenced testing its ethanol manufacturing facility in Shaanxi province, as reported by Chumphol Kajohnchalearmsak, president of the Thai Tapioca Starch Association. Upon full operation, the facility is projected to produce 500,000 tonnes of ethanol annually, utilizing coal as a feedstock, which is 3-4 yuan (15-20 baht) cheaper per tonne than tapioca chips.
Chumphol noted that this factory will become the world's largest producer of ethanol derived from coal, thereby diminishing the demand for imported tapioca and other agricultural products, such as corn and sugarcane from Thailand. He highlighted that Thailand exported tapioca products valued at 127 billion baht last year, with China representing 63% of those exports.
However, he pointed out that the rising production costs in Thailand have escalated the price of exported tapioca chips to approximately $238 per tonne, leading some buyers to defer their orders. Additionally, in the first half of the current year, demand from China has decreased by around 50% year-on-year, attributed to fluctuations in the baht's value and an increase in the availability of genetically modified corn in China, which serves as an alternative feedstock for ethanol production.
Chumphol urged the Thai government to implement support measures to lower production costs or enhance tapioca yields to improve competitiveness in export markets. He emphasized the need for tangible assistance in combating cassava mosaic disease, which significantly impacts overall yields, and for financial support to acquire high-quality stem cuttings resilient to diseases.
Source: https://www.nationthailand.com/news/general/40039842