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- Commodity Fundamentals - 2004 Articles


Cassava

Cassava is a perennial woody shrub with an edible root. Cassava, which is also called manioc, mandioca, or yucca, grows in tropical and subtropical areas of the world. Cassava has been known since the 1500s and originates from Latin America. The cassava’s starchy roots are a major source of dietary energy for more than 500 million people. Cassava is the highest producer of carbohydrates among staple crops, and it ranks fourth in food crops in developing countries. The leaves of the cassava plant are also edible and are relatively rich in protein and vitamins A and B.

Cassava is drought-tolerant and needs less soil preparation and weeding than other crops. Because cassava can be stored in the ground for up to 3 years, it also serves as a reserve food when other crops fail. The cassava is propagated by cuttings of the woody stem, thereby resulting in a low multiplication rate compared to crops propagated by true seeds.

One problem with cassava is the poisonous cyanides, which need to be destroyed before consumption. The cyanide content differs with each variety of cassava, but higher cyanide is usually correlated to high yields. The cyanide content can be destroyed through heat and various processing methods such as grating, sun drying, and fermenting.

Cassava is the primary source of tapioca. Cassava is also eaten raw or boiled, and is processed into livestock feed, starch and glucose, flour, and pharmaceuticals. One species of cassava has been successfully grown for its rubber.

Prices – The prices of tapioca (hard pellets, FOB Rotterdam) rose in the first quarter of 2003 to per metric ton from in 2002 and the recent trough of in 2001. Still, tapioca prices are far below the 10-year average of per metric ton.

Supply – World production of cassava in 2000, the latest full reporting year for the series, rose by +2.2% to 172.737 million metric tons from 169.026 million in 1999. The world’s largest producers of cassava in 2000 were Nigeria (with 18.9% of world production), Brazil (13.3%), Thailand (10.7%), and Indonesia (9.5%).

Trade – World exports of tapioca in 2002 fell to 3.560 million metric tons from 5.140 million in 2001. Thailand accounted for 86% of world exports in 2002, followed by Vietnam with 9% of world exports and Indonesia with 4%. The world’s two main importers of tapioca in 2002 were China with 49% of world imports and the European Union with 44% of world imports.



*Articles from the Commodity Research Bureau (CRB) Commodity Yearbook. The single most comprehensive source of commodity and futures market information available, the Yearbook is the book of record of the Commodity Research Bureau, which is, in turn, the organization of record for the commodity industry itself. Its sources—reports from governments, private industries, and trade and industrial associations—are authoritative, and its historical scope is second to none. Additional information can be found at: http://www.crbtrader.com/pubs/yb.asp
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