Cassava availability in Brazil should be lower than expected

Published 2023년 1월 9일

Tridge summary

Adverse conditions, including high costs and lower profitability, have resulted in a decrease in cassava planting in Brazil, with the area planted expected to decrease by 0.3% according to the Brazilian Institute of Geography and Statistics. Adverse weather in the second half of 2022 has also harmed crop development, potentially reducing productivity. This is expected to limit the production of starch and derivatives in 2023, as the limited supply of raw materials is not expected to lead to significant drops in cassava root sales prices.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The availability of cassava in Brazil should be below the expectations of market agents. The high costs and lower profitability of the crop compared to other competing activities in the area limited the advance of planting. According to data from the Cepea newsletter, to make matters worse, in the second half of 2022, the adverse weather harmed the development of crops, which could reduce productivity. According to estimates by the Brazilian Institute of Geography and Statistics (IBGE), the area planted with cassava in Brazil should decrease by 0.3% and production should total 18.4 million tons, with a small increase of 0.9% compared to the previous year . With a limited supply of raw material, there seems to be little room for significant drops in cassava root sales prices. The ...

Source: Agrolink