Logo of Phnom Penh Post newspaper Phnom Penh Post - Cassava up on peaking demand, low supply

Cassava up on peaking demand, low supply

Cassava up on peaking demand, low supply

CASSAVA prices have soared in recent months on reduced output and increased demand from Thailand after the removal of a ban on cassava imports from Cambodia in May, industry insiders say.

A tonne of dry-chip cassava is fetching between US$160 and $170 a tonne this month, up 17 percent from $145 in December last year and 51 percent from a May low of $112 per tonne, according to Kim Jung Ho, administration director at MH Bio-Energy Cambodia. The firm buys around 15,000 tonnes per month to produce ethanol, bio-plastics and food products.

Higher prices were due to a combination of reduced supply and increased demand, said Yang Saing Koma, president of the Cambodian Center for Study and Development in Agriculture (CEDAC). “Some farmers abandoned this crop because of a serious drop in prices beginning in November last year – it discouraged farmers to grow it,” he said.

Farmers grew cassava on an estimated 100,000 hectares last year, but the figure declined in 2009, he said, adding that no precise stats were available.

Kim estimated that the area under cassava cultivation was down around 10 percent compared with last year.

Som Yen, director at cassava broker Malai Trading Company in Banteay Meanchey province, said the end of the Thai ban on Cambodian cassava imports was the key reason for higher prices.

“Under the trade ban farmers had few buyers for their cassava, so it was quite cheap at the time. This year, it’s a good market for the crop because it is possible to export to Thailand,” he said.

MOST VIEWED

  • ‘Education’ a priority traffic-law penalty

    A top National Police official on June 21 neither rejected nor confirmed the authenticity of a leaked audio message, which has gone viral on social media, on a waiver of fines for a number of road traffic-related offences. General Him Yan, deputy National Police chief in

  • Siem Reap’s $18M zoo said to educate public, help wildlife

    Angkor Wildlife and Aquarium Co Ltd has invested $18 million in a zoo in Siem Reap province, which will be opened in October to educate and promote animal conservation as well as attract national and international tourists. Currently, the Angkor Wildlife and Aquarium is building the

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “

  • Chinese firms unveil preliminary results on metro, monorail for capital

    Minister of Public Works and Transport Sun Chanthol and representatives from China Road and Bridge Corp (CRBC) and its parent company, the state-owned China Communications Construction Co Ltd (CCCC), met on June 24 for talks on results of the firms’ preliminary study on a potential metro

  • Nestle’s debut may spur dairy market

    Leading confectionery manufacturer Nestle plans to invest in Cambodia by setting up an operation in the near future, a move majorly hailed by local dairy farmers as a means of boosting the fresh milk market in the Kingdom. During a visit by a delegation led

  • ACLEDA, WU to enable global money transfers

    Cambodia's largest commercial bank by total assets ACLEDA Bank Plc and global money transfer firm Western Union (WU) have partnered to offer customers cross-border money transfers to 200 countries via “ACLEDA mobile” app. In Channy, president and group managing director of ACLEDA, said the June 22 agreement