1. Capabilities and Trends in Thai Tapioca Production by Seree Denworalak President The Thai Tapioca Trade Association June 28, 2011 www.ttta-tapioca.org E-mail : ttta@loxinfo.co.th

2. Year 2006/072007/082008/092009/102010/11 Harvested Acreage (Hectares) 1,152,1991,183,5361,326,7431,168,4541,104,181 Total Production (MT) 26,411,23325,155,79730,088,02422,005,74021,060,903 Yield Per Hectares (MT) 22.922 21.225 22.678 18.833 19.074

3. Tapioca Roots 30.00 (100%) Tapioca Chips / Hard Pellets 12.60 (42%) Local 2.52 (20%) Export 10.08 (80%) Tapioca Starch 16.50 (55%) Local 5.78 (35%) Export 10.73 (65%) Ethanol 0.90 (3%) Remark :1) Thai Government’s stock- Tapioca Chips3.41 Million Tons - Tapioca Starch0.82 Million Tons 2) Convertion rate- Tapioca Roots : Tapioca Chips/Pellets=2.25 : 1 - Tapioca Roots : Tapioca Starch=4.10 : 1

4. Tapioca Roots 22.00 (100%) Tapioca Chips / Hard Pellets 8.85 (40%) Local 1.80 (20%) Export 7.05 (80%) Tapioca Starch 12.30 (56%) Local 4.92 (40%) Export 7.38 (60%) Ethanol 0.85 (4%) Remark :1) Thai Government’s stock- Tapioca Chips2.66 Million Tons - Tapioca Starch0.81 Million Tons 2) Convertion rate- Tapioca Roots : Tapioca Chips/Pellets=2.25 : 1 - Tapioca Roots : Tapioca Starch=4.10 : 1

5. Tapioca Roots 21.00 (100%) Tapioca Chips / Hard Pellets 6.00 (28%) Local 1.56 (26%) Export 4.44 (74%) Tapioca Starch 13.00 (62%) Local 4.94 (38%) Export 8.06 (62%) Ethanol 2.00 (10%) Remark :1) Thai Government’s stock- Tapioca Chips1.26 Million Tons 2) Convertion rate- Tapioca Roots : Tapioca Chips/Pellets=2.25 : 1 - Tapioca Roots : Tapioca Starch=4.10 : 1

6. The production of starch varied by small percentage in spite of the big change in total supply of roots in the past few years. The demand for starch did not change much despite the big increase in prices.

7. The production of starch is expected to grow at a pace of 5 - 15% per annum. Existing markets are expected to be retained. New demands will arise from the higher potato starch prices as a result of smaller potato crop in EU coupled with less export subsidies and the access into new markets created by free trade agreements with countries formerly restricting imports of tapioca starch, such as India.

8. Demands for tapioca chips from Chinese Ethanol Industries are expected to continue to rise as Chinese Government is likely to discourage the use of corn for the production of ethanol. Demands for tapioca chips by Thai ethanol industry will jump because of added production capacities. Thailand will likely export sizable quantity of ethanol in future. If Chinese Government encourages the import of ethanol, Thailand will export sizable quantity of ethanol to China at the expense of exports of chips.

9. As corn and wheat may become more expensive, the demand for tapioca from local as well as export markets for feed will always be there if ever Thailand has excess quantity of supply of tapioca and the prices are competitive. The expansion of markets created by AEC +3, AEC +6 will encourage investment of other processing industries. Lactic acid, Citric Acid, Amino Acid, Acetic Acid and Derivatives are among them. Some may grow at a faster pace and we may see exports of tapioca products in different items from present exports.

10. Higher wheat prices could encourage production of tapioca flour. If the expansion of production of tapioca in Thailand is successful and proper introduction of production process and usage is done, this may become a major tapioca product replacing some of the traditional products presently being produced.

11. The key to the expansion of tapioca market lies with the increase in production of tapioca roots. Proper action plans are needed to put the following potential into practice.  proper analysis of soil and apply the right fertilizers could increase the yield by 5 - 15%  Use of good stems for replanting could increase the yield by 10%

12.  where water is available, watering the plantation has proved to increase the yield by 25-30% or even more.  where water is unavailable, change of replanting season could lower the loss by droughts and pests.  leaving the plant in the ground for 14-16 months could increase the yield by 25-30% compared with harvesting after 10-12 months.

13. The trade has hoped that the Ministry of Agriculture will work hard to increase the production of tapioca and that the following production targets proposed by the trade will be achieved, 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 34.70 36.70 38.40 40.30 42.30 million tons