Sino-Thai talks on tapioca
The Foreign Trade Department has persuaded China's leading importer of farm products to negotiate with Thai exporters the purchase 100,000 tonnes of tapioca starch this year.
Department director-general Apiradi Tantraporn yesterday said CGOG International Economic and Trading, a subsidiary of China National Cereals, Oils and Foodstuffs, would send a team to the Kingdom to discuss forming a trading partnership with a local exporter. The company will tour tapioca plants in Kanchanaburi, Ayutthaya and Chon Buri from tomorrow to February 8. "Tapioca exports face a bright future, since tapioca is in high demand in the world market for ethanol production," Apiradi said. The EU, South Korea and Malaysia are also planning to speak with Thai tapioca exporters, she said. However, a source with a tapioca-exporting company said the strengthening of the baht would cut into exporters' income this year, because farm commodities carried a very tight profit margin. Tapioca exports this year are expected to drop 3 per cent to $1.09 billion, said the source. Tapioca exports last year rose 27 per cent to Bt42.94 billion. Exports of tapioca chips grew to 3.82 million tonnes and were valued at Bt15.77 billion, while tapioca pellets increased to 390,000 tonnes and were worth Bt1.38 billion. Exports of tapioca starch climbed 27.6 per cent to 2.6 million tonnes, generating Bt24.7 billion. The major market for Thai tapioca chips is China. The EU is a good customer for tapioca pellets, while Indonesia, Taiwan, China and Japan are major importers of tapioca starch. Petchanet Pratruangkrai The Nation
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