Markets
Angus Commodities ConsultantsCovering global commodity markets, in real time
Market Overview and Report
Focus on Cassava
Overview of Cassava
Cassava (Manihot esculenta), also known as manioc or yuca, is a tropical root crop primarily cultivated in regions of Africa, Asia, and Latin America. It is a highly versatile crop, capable of growing in poor soil conditions and resistant to drought. Cassava is a critical staple for more than 800 million people, with its primary uses in food, animal feed, and industrial applications such as starch and ethanol production.
The crop is particularly important in regions where food security is a concern due to its resilience and ability to provide calories to millions at low production costs.
1.1 Major Producers of Cassava
The world’s largest cassava producers are:
Nigeria: The top producer, contributing about 20% of global production.
Thailand: Leading in cassava processing, particularly for starch and ethanol.
Indonesia and Brazil: Other major players in both fresh cassava production and its processed products.
Africa accounts for over 60% of global cassava production, with key producers including Nigeria, Ghana, and the Democratic Republic of Congo. However, while Africa leads in production, much of its cassava is consumed domestically. In contrast, Thailand and Vietnam are dominant exporters, with Thailand being the global leader in cassava-derived products like starch and pellets.
1.2 Applications of Cassava
Food Consumption: Cassava is primarily consumed in developing countries in its raw, dried, or processed forms (such as gari, fufu, and tapioca).
Industrial Use: Cassava starch is widely used in the food industry, textiles, paper production, and even in the manufacturing of biofuels.
Animal Feed: Dried cassava chips and pellets are often utilised as animal feed.
Biofuel Production: Cassava’s high starch content makes it an important feedstock for ethanol production in countries like Thailand and China.
2. Market Dynamics of Cassava
2.1 Supply and Demand
Global demand for cassava has steadily risen, driven by:
Growing population and increased food consumption in developing countries.
Industrial demand, especially in the starch, paper, and biofuel sectors.
Animal feed demand in countries like China, which imports large volumes of cassava products for livestock.
On the supply side, production challenges, such as climate change, pests (e.g., cassava mealybug), and limited mechanization in key producing regions, have impacted yields and the consistency of supply. However, despite these issues, cassava’s resilient nature allows for relatively stable production in most regions.
2.2 Price Trends
The global cassava market has seen price fluctuations due to changes in both supply and demand. Factors contributing to recent price movements include:
Weather-related disruptions in major producing regions like Africa and Southeast Asia.
Strong demand from China for cassava starch and chips used in ethanol production.
Rising production costs, including labor, transportation, and input prices, have also affected cassava prices.
For example, cassava prices in Thailand, a major exporter, surged in the past few years due to increased demand from China for cassava starch. In Nigeria, prices have been impacted by domestic food demand and the costs associated with importing fertilizers and other inputs.
2.3 Global Trade
While Africa dominates in production, Thailand, Vietnam, and Cambodia are the main exporters of cassava products, including chips, pellets, and starch. China is the largest importer, accounting for over 60% of global cassava imports, particularly for use in biofuel and animal feed production.
Other significant importers include the EU and the United States, which use cassava starch in various industrial applications.
3. Regional Market Analysis
3.1 Africa
Africa’s cassava market is driven primarily by food security needs. The majority of cassava produced is consumed domestically, either fresh or processed into local staples. Export volumes remain limited, largely due to infrastructure constraints, processing limitations, and lack of access to international markets.
Nigeria remains the world’s largest producer, though it has struggled to maximize export potential. Recent government efforts in countries like Ghana and Tanzania aim to increase cassava processing for industrial use and improve export capabilities. However, challenges such as pest infestations, inconsistent rainfall, and poor agricultural policies have hindered further growth.
3.2 Asia
Asia’s cassava industry is much more export-oriented. Thailand leads the way, exporting significant quantities of cassava starch, pellets, and chips. The country has heavily mechanized its cassava industry and developed strong infrastructure for export, focusing on high-value starch for industrial uses.
Vietnam and Cambodia have also emerged as major players, supplying cassava chips and starch to China. China’s growing demand for cassava as a feedstock for ethanol production has continued to boost prices and expand trade in the region.
3.3 Latin America
Brazil is Latin America’s largest cassava producer, with the crop grown primarily for domestic consumption and use in the production of starch. While export levels remain lower compared to Asian producers, Brazil’s vast agricultural resources and improving processing capacities indicate potential for growth in cassava exports.
4. Key Challenges in the Cassava Market
Pest and Disease Outbreaks: Cassava crops are vulnerable to pests such as the cassava mealybug and diseases like **cassava mosaic virus**, particularly in Africa.
Climate Change: Increasing temperatures, inconsistent rainfall, and extreme weather events threaten cassava production, particularly in rain-fed systems across Africa and Southeast Asia.
Infrastructure and Processing: Poor infrastructure in many cassava-producing regions limits processing capabilities and market access, particularly in Africa, where significant quantities are wasted post-harvest.
Price Volatility: Prices can fluctuate due to changes in supply, production costs, and demand from key markets like China, impacting the financial stability of producers.
5. Market Outlook and Opportunities
The global cassava market is expected to grow due to rising demand in both food and industrial applications. Key trends include:
Growing industrial use of cassava starch in paper, textile, and biofuel industries.
Increased demand for gluten-free products, where cassava flour can serve as a substitute.
Government initiatives in Africa and Asia to boost cassava production, processing, and export potential.
Technological advancements in cassava cultivation and processing, such as improved pest-resistant varieties, mechanized harvesting, and efficient processing techniques, are likely to increase yields and reduce post-harvest losses. Furthermore, the expansion of cassava-based biofuel production in China and Southeast Asia is expected to drive further demand for cassava products, providing significant growth opportunities for producers in the coming decade.
Conclusion
The global cassava market is a vital segment of the agricultural commodities sector, particularly for developing nations where it plays a crucial role in food security and economic stability. With increasing demand from both the food and industrial sectors, the cassava industry is poised for further growth. However, addressing challenges related to infrastructure, pest management, and climate change will be crucial for maximizing the potential of cassava on the global stage.