Brazil: In the midst of the pandemic, cassava starch and derivatives industry diversifies production and increases supply

Published 2021년 5월 6일

Tridge summary

The cassava starch sector in Brazil successfully diversified its production in 2020 in response to the pandemic, introducing more types of starches, tapioca, and mixtures for cheese breads, among others. Despite operating at near-full industrial capacity, the sector saw a 22.7% increase in the gross value of native starch production, reaching R $ 1.2 billion, though inflation reduced some of this gain. Consumption of these products was predominantly in the wholesale and pasta industry, as well as cookies and bread making. For 2021, the sector anticipates an 11.9% increase in production, driven by an expected economic recovery, and a growth in exports. However, the sector faces challenges, especially in the supply of cassava roots, as other agricultural commodities compete for farming resources.

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Original content

In the midst of the covid-19 pandemic, the cassava starch sector sought to diversify production, in order to keep the liquidity of this market warm. This is what is shown by the annual survey carried out by Cepea (Center for Advanced Studies in Applied Economics), of Esalq / USP, in partnership with Abam (Brazilian Association of Cassava Starch Producers). According to the survey, in addition to the native starch, in 2020, the sector increased the production of modified starches, starch, tapioca, mixtures for cheese breads, among others. Cepea data show that the production of native starch had a 60.7% share in the sector, followed by starch (sour and sweet), with a share of 17.3%; of modified, 13.2%; tapioca, 6.7%; and mixtures for cheese bread, 2.1%. Considering the production of all these items, the sector used industrial capacity close to half - even so, the largest since 2015. Cepea indicates that the production of native cassava starch grew by 7.5% in 2020, totaling 538.8 ...

Source: NoticiasAgricolas