Remarkable Success of Thailand Cassava Industry: An Inspiring Model for Nigeria and the Developing Countries
Thailand is the world's top exporter of cassava by-products, such as cassava starch, chips, pellets, and ethanol. In 2021, Thailand exported cassava products worth about 3.8 billion U.S. dollars, accounting for more than 60% of the global market share.
This remarkable success is due to several factors, including:
Abundant cassava resources: Thailand has a favorable climate and soil conditions for growing cassava, which is a drought-resistant and high-yielding crop. In 2020, Thailand produced an estimated 33 million tons of cassava, which is more than any other country in the world.
Well-developed cassava processing industry: Thailand has a well-developed cassava processing industry that can produce a wide range of value-added cassava products, such as starch, flour, chips, pellets, and ethanol. These products are exported to over 100 countries around the world.
Competitive production costs: The production costs of cassava products in Thailand are relatively low compared to other countries. This is due to several factors, including the availability of cheap labor, the government's support for the cassava industry, and the country's proximity to major export markets.
Strong government support: The Thai government has been a strong supporter of the cassava industry for many years. The government has provided financial assistance to cassava farmers and processors, and it has also promoted the export of cassava products.
Growing demand for cassava products: The global demand for cassava products is growing, as these products are used in a variety of industries, including food, beverage, and industrial applications. This growing demand is expected to further boost Thailand's exports of cassava value-added products in the coming years.
In addition to the factors listed above, Thailand's success in exporting cassava value-added products is also due to the country's skilled workforce, its commitment to quality control, and its good reputation as a reliable supplier.
Thailand's success can be an example for other cassava producing countries, especially Nigeria, which is the world's largest producer of cassava but has a low level of value addition and export. Nigeria has a huge potential to increase its income and employment from cassava by-products, as it has abundant natural resources, a large domestic market, and a favorable location for regional trade.
However, Nigeria and the developing countries face some challenges that hinder the development of their cassava industries, such as:
Low productivity and quality of cassava roots: Cassava yields in developing countries are often low due to pests, diseases, droughts, and poor agronomic practices. This results in high post-harvest losses and waste.
Inadequate infrastructure and facilities: Developing countries often lack the infrastructure and facilities needed to support cassava production and processing, such as roads, storage facilities, and processing plants. This leads to high transportation costs and inefficiencies in the cassava value chain.
Limited access to finance and technology: Small-scale farmers and processors in developing countries often lack access to the finance and technology they need to improve their productivity and quality. This limits their ability to compete in the global market.
Weak linkages and coordination: The cassava value chain in developing countries is often fragmented, with weak linkages between farmers, processors, and traders. This leads to inefficiencies and conflicts.
While strong government support is very important, I think that other actors in the cassava industry can also play an important role in initiating disruptive innovations in the whole cassava value chain. These actors include Agricultural Research organizations, Agtech startups, Farmers cooperatives, small farmers associations and Agribusiness firms. By working together, they can help to solve the challenges facing the cassava value chain, such as low productivity, poor quality, low value-added cassava by-products and limited market access.
Firstly, they should participate in research and development of improved cassava varieties, processing technologies, and product innovations. Participating in research and development will help them to increase productivity, improve the quality of cassava products and create high value-added cassava by-products. For example, they could develop new varieties of cassava that are resistant to pests, diseases, and climate change, or new products such as cassava flour, starch, ethanol, or biodegradable plastics.
Secondly, they should engage in public-private partnerships and collaboration with other stakeholders, such as government agencies, researchers, traders, and consumers. Engaging in public-private partnerships and collaboration will help them to share information and resources, and to build trust and cooperation between different actors in the value chain. For example, they could form a cassava innovation platform that brings together different stakeholders to identify problems and solutions in the cassava value chain.
Thirdly, they should access finance and technology for cassava production and processing. Accessing finance and technology will help farmers and processors to invest in new technologies and practices, and to improve their productivity and profitability. For example, they could apply for loans or grants from financial institutions or donors or use digital platforms or mobile apps to access information or services related to cassava.
Finally, they should improve the efficiency and competitiveness of the cassava value chain by developing infrastructure and facilities for cassava processing and storage; enhancing market access and demand for cassava by-products; adopting digital solutions to optimize the value chain; improving logistics and export capacity; supporting technology transfer among cassava actors.
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By working together, all actors in the cassava industry can help to make the cassava value chain more efficient, profitable, and sustainable. This will benefit farmers, local communities, processors, consumers, and the environment. It will also contribute to the increase of the national export revenue of Nigeria and other developing countries.
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