Jan 9, 2010

Cassava News 81

By MARK WHITEHOUSE, SCOTT KILMAN and ALEX FRANGOS

CASSAVANEWS to follow up The Wall Street Journal. Another commodity that has shot up this year is cassava. In China, the tuberous root -- also known as tapioca -- is used in the growing production of industrial alcohols and ethanol. Cassava is also used to feed ducks and pigs and make tapioca balls for bubble teas. A bug infestation has dampened the harvest in Thailand, a key producer. Cassava prices are up about 59% over the past year, according to the United Nations.

From corn to crude, prices for a wide range of commodities are on the rise across the globe, a trend that underscores -- but could also hinder -- a gathering economic recovery.

In recent months, global food prices have been growing at a rate that rivals some of the wildest months of 2008, when food riots erupted across the developing world. Higher prices could be a positive sign that companies are gearing up for a rebound in consumer spending, or the harbinger of a return to the upward spiral that plagued consumers before the recession took hold.

The surge in commodities "is a reflection of extremely strong demand in the emerging world, and growing hopes of stronger demand in the developed world," said Jim O'Neill, head of global economic research at Goldman Sachs in London. It is "encouraging so long as it isn't too persistent."

But Hugh Grant, chairman and chief executive of St. Louis crop-biotechnology company Monsanto Co., said the recession merely "masked" the 2008 food crisis.

The price of a bushel of corn -- a ubiquitous ingredient in the U.S. diet -- rose 24% since Sept. 1. In Thailand, the price of a metric ton of rice, a staple across the region, stood at $618 in December, up 11% from September, but well below a peak of about $1,000 in April 2008. An index of global food prices compiled by the United Nations jumped 6.9% in November alone from the month before.

Other commodities are surging, too. The price of a barrel of oil this week broke out of the $60 to $80 range it had maintained for the latter half of 2009, trading at $81.37 on the IntercontinentalExchange Friday, up about 20% from Sept. 1. In London, the price of gold stood at $1,137 up about 18%.

To be sure, prices of most commodities, with the exception of gold, are well off 2008 peaks. The UN's food-price index is 21% lower than its June 2008 high. The price of oil peaked at just more than $146 a barrel in July 2008.

Also, the fundamentals of the global grain markets are a lot different now than during the 2008 food crisis, when prices of crops such as corn, soybeans and rice more than doubled. That surge was largely the result of the world having consumed more grain than it had produced for much of the decade, which drained reserves to unusually low levels.

But rising commodity prices, in part, illustrate concerns that central bankers' easy-money policies, aimed at rescuing the economy, will fuel inflation. "Inflation expectations are creeping up," said Spyros Andreopoulos, global economist at Morgan Stanley in London.

Both actual price rises and fears of future inflation threaten to put central bankers around the world in a tough spot. On one hand, many want to keep interest rates low longer to support the recovery. But the need to keep prices in check could force them to hit the brakes sooner.

Food prices are a big concern in developing countries such as China and India, where food makes up a larger portion of consumer purchases. On Thursday, China's central bank raised a key interest rate in a shift toward a policy of managing inflation. Economists say the Reserve Bank of India could raise interest rates as early as this month.

In the U.S., with unemployment at 10% and companies operating below capacity, economists doubt the commodity boom could spark a traditional inflationary spiral, in which rising prices and wages reinforce one another. And while officials at the Federal Reserve have expressed concern about rising prices, for the most part they believe high unemployment will be a counterweight.

Still, as higher commodity prices work their way through the production chain, they could damp any recovery by forcing consumers to spend more on essentials such as food and gasoline. They are also a concern for a range of industries, such as airlines and food processors, where rising input prices could eat into profit.

"Everybody is nervous," said Ronald Lucchesi, president of the frozen-products division of Gonnella Baking Co., a closely held Chicago firm that was battered by soaring wheat costs in 2008.

Greg Carlson, a hog farmer with 400 sows near Stratford, Iowa, said he was losing money on every pig he produces as meat prices fail to keep pace with the cost of feed. "There are a lot of companies that are right on the edge -- and we're one of them," he said.

Economists say the U.S. livestock industry faces a brutal shakeout if it isn't able to pass along its higher feeding costs. "The consumer has to get used to paying higher prices," said Robert "Bo" Manly, executive vice president and chief financial officer of meat giant Smithfield Foods Inc.

The surge in commodity prices is having an impact around the world, particularly in the developing nations that account for an increasing share of global growth. India is perhaps the most exposed, due to its poor rainy season and resultant subpar rice crop. Rapid rises in the cost of rice, tea, sugar and milk have pushed food prices up 17% in the year ended November, contributing to overall consumer-price inflation of about 5%.

Another commodity that has shot up this year is cassava. In China, the tuberous root -- also known as tapioca -- is used in the growing production of industrial alcohols and ethanol. Cassava is also used to feed ducks and pigs and make tapioca balls for bubble teas. A bug infestation has dampened the harvest in Thailand, a key producer. Cassava prices are up about 59% over the past year, according to the United Nations.

—Lauren Etter contributed to this article.
Write to Mark Whitehouse at mark.whitehouse@wsj.com, Scott Kilman at scott.kilman@wsj.com and Alex Frangos at alex.frangos@wsj.com

Dec 18, 2009

Cassava News 80

New centres raise cassava’s outlook in Sierra Leone

Cassavanews to follow up afrol News, 17 December - Cassava’s profile as a food security and poverty-reducing crop has received a boost with the commissioning of five new processing centres in Sierra Leone. This follows support from the Common Fund for Commodities, International Institute of Tropical Agriculture and Sierra Leone Agricultural Research Institute and other partners.

The processing centres, which are located in five different communities including Waterloo, Bo District, Njala Agricultural Research Centre (NARC), Makeni City/Teko, and Hamdalai in Sierra Leone, are part of a $1.6 million Common Fund for Commodities (CFC) funded project involving Nigeria, Sierra Leone and Benin Republic. The project is seeking value addition to cassava and to consequently boost production and generate wealth.

“It will also improve livelihood, incomes of farmers and stakeholders in the cassava enterprise,” said Prof Lateef Sanni, Project Coordinator, for the Common Fund for Commodities Funded project. “More importantly, this will create market and drive the production of cassava.”

Since 1990, cassava production in Sierra Leone has been on the upbeat climbing from 178,200 metric tons in 1990 to 1,236,852 mt in 2007.

Dr Alfred Dixon, Director General, Sierra Leone Agricultural Research Institute said the utilisation of cassava and creation of products such as gari - a Nigerian-introduced staple - has actually created demand for the crop. Consequently, cassava is now second to rice as a staple with people eating both the leaves and tubers of the crop.

The establishment of the processing centres has also spurred interest in cassava production in local communities. Dorris Kargbo, a farmer and beneficiary of the cassava centre in Hamdalai Village said, in her community alone, about 40 farmer-groups have been formed for cassava production.

Each of the groups comprises about 30 farmers each. The groups will ensure the steady supply of cassava tubers to the processing centre which will process the tubers into gari, foofoo, cassava cake and cassava doughnut among others. “This will create jobs to our people, generate wealth and reduce poverty. It is our own strategy of contributing to poverty reduction in Sierra Leone,” Ms Kargbo said.

Traditionally, cassava tubers in Sierra Leone are harvested, boiled and eaten. The limited utilisation of cassava often times results to glut during periods of bumper harvest.

Ms Kargbo, while expressing gratitude to the funders of the project said the processing centres have created a market that will mop up cassava in the future. “This will reduce postharvest losses and make cassava production profitable,” she added.

By staff writer

© afrol News

Dec 11, 2009

Cassava News 79


Food prices up again

CASSAVANEWS to follow up FAO. ROME, Italy, Dec 9 - Global food prices are on the ascent again with the United Nations Food and Agriculture Organisation (FAO) Food Price Index – a food basket composed of cereals, oilseeds, dairy, meat and sugar – registering four straight monthly rises.

However market conditions are different from those that triggered the food price crisis that started two years ago, FAO said in its December Food Outlook report published on Wednesday.

The index averaged 168 points in November, the highest since September 2008. That was still 21 percent below its peak in June 2008. Prior to the price spike of 2007/08, the index never exceeded 120 points and, for most of the time, was below 100 points.

“At the onset of the price surge in 2007, FAO identified a number of possible causes contributing to the price rise: low levels of world cereal stocks; crop failures in major exporting countries; rapidly growing demand for agricultural commodities for biofuels and rising oil prices,” the FAO report said.

“As the price strengthening accelerated, several other factors emerged to reinforce the upheaval; most importantly, government export restrictions, a weakening United States dollar and a growing appetite by speculators and index funds for wider commodity portfolio investments on the back of enormous global excess liquidity. What made the 2007/08 price spike exceptional was the concurrence of so many factors culminating in an unprecedented price rally and the fuelling of volatility.”

Cereal stocks healthy
Today, world cereal stocks are at more comfortable levels, although some markets are facing tight conditions. In general supplies held by exporters are more adequate to respond to rising demand than they were during the price surge period. For example, the wheat stocks-to-use ratio in major exporting countries has risen from 12 percent to 20 percent this season. Biofuels are still a leading driver but the sector has slowed in terms of year-on-year growth.

Macro-economic factors, such as exchange rates, volatile oil prices and low interest rates are also causing investors to put their cash in commodity markets. “Although supply and demand fundamentals will continue to shape commodity markets, the now entrenched susceptibility of the global food system to external non-food economy events requires continuous vigilance,” FAO said.

Production rising

“A healthy stock situation and good production prospects reduce the risk of a major price surge over the next six months, but FAO will be keeping a very close eye on developments,” said Hafez Ghanem, FAO Assistant Director-General for Social and Economic Development.

Although the preliminary outlook for cereals points to a decline in world output compared to 2008, mostly on account of lower price expectations which depressed plantings, production in 2009 is still expected to be about four percent higher than in 2007.

Global cassava production is expected to reach new highs in 2009, largely due to initiatives to sustain food security and demand from the ethanol sector where cassava has emerged as a key feedstock. However prices of internationally traded cassava are still less than they were two years ago but should remain firm in 2010.

In the oil seeds market, a weakening in prices for meals and cakes is possible later in the season because of expected large South America crop but the market is expected to be tighter in oils and fats. World sugar prices are likely to remain firm but at lower levels than the current highs.

Meat down, dairy and fish up

According to the FAO meat price index, world meat prices were an average 8 percent lower in the first ten months of 2009 than the same period last year. Lower global imports are expected to depress world trade in all various meat categories in 2009 but a modest recovery is expected in 2010.

Dairy prices are on the rise again, gaining by 80 percent since reaching a low in February 2009, with traded milk powders the fastest rising product. Future prices will depend on whether the European Union offloads its large stocks of butter and skimmed milk onto the international market.

2009 was a challenging year for fish and fishery products because of the global downturn that hit demand. There have been moderate price increases for several months now.

Read more: http://www.capitalfm.co.ke/business/Kenyabusiness/Food-prices-up-again-3502.html#ixzz0ZKJYJR1L
Under Creative Commons License: Attribution Non-Commercial No Derivatives

Dec 6, 2009

Cassava News 78

CASSAVANEWS to follow up Bharatbook.com added a new report on "Future of starches in China" which gives Competitiveness of Chinese starch and fermentation products in domestic and export markets, and impact of raw material supply on starch industry.

Future of starches in China

China’s output of starch, including native and modified starch, is the second largest in the world. Major varieties of native starch include corn starch, potato starch, cassava starch and wheat starch, while that of modified starch include corn modified starch, potato modified starch and cassava modified starch. China’s starch output has kept growing rapidly with CAGR of about 17.00% since 2001, which reached 17.10 million tonnes in 2008. It is predicted that China’s starch output will increase stably to 25.47 million tonnes in 2020. What is the position of Chinese starch industry in the world? Why do Chinese starch industry develop so fast? Which products will witness promising prospect in the future? ( http://www.bharatbook.com/detail.asp?id=127263&rt=Future-of-starches-in-China.html )

China is the second largest native starch consumption country in the world, with total consumption value of USD6.10 billion in 2008, of which USD700.00 million was contributed by modified starch consumption. With various characteristics and functions, modified starch is widely applied in industries such as papermaking, food processing and textile in China. As for price, China’s starch price is mainly influenced by raw material price, supply & demand situation and technology innovation. How are such factors affecting China’s starch industry? You will find answers in the report. Raw material cost constitutes the major proportion in starch manufacturing cost. In China, production cost of cassava starch is lower than that of corn starch, with USD333.16/t and respectively. However, native cassava starch only accounts for 3.13% share in domestic native starch market. In the USD340.34/t for corn starch, the cost of corn was USD308.01/t, accounting for 90.56% of the total cost, what cause this situation?

In recent two years, Chinese starch supply has surpassed domestic demand. As for international trade, export of native starch is increasing, while import is decreasing. But the situation is different for modified starches. Which kinds of native starch and modified starch have sufficient supply and which kinds are in demand? Starch production technology mainly includes dry method and wet method, and wet method is widely adopted in recent years. However, it causes serious pollution like large volume of waste water. Has any technology innovation achieved in recent years?

What’s covered in this report

- An overview for current market of corn starch, cassava starch, potato starch and wheat starch, as well as starch derivatives in China, with focus on statistics of capacity, output, import & export, supply & demand, major manufactures, future trend, etc.
- Outlook for starch raw material supply & demand
- Balance in starch industry, from raw materials to end use markets/products
- Competitiveness of Chinese starch and fermentation products in domestic and export markets, and impact of raw material supply on starch industry
- Foreign investment in China’s starch industry
- Future development trend of China’s starch industry

To know more and to buy a copy of your report feel free to visit : http://www.bharatbook.com/detail.asp?id=127263&rt=Future-of-starches-in-China.html
Or

Contact us at :

Bharat Book Bureau
Tel: +91 22 27578668
Fax: +91 22 27579131
Email: info@bharatbook.com
Website:
Blog: http://bharatbookresearch.blogspot.com
Follow us on twitter: http://twitter.com/3bbharatbook

Nov 22, 2009

Cassava News 77

Danforth Center gets $2.5M for cassava research

CASSAVANEWS. The Donald Danforth Plant Science Center was recently awarded a five-year, $2.5 million grant from the U.S. Agency for International Development to develop a virus-resistant cassava.


Yearly harvests of the starchy shrub in East Africa have been hurt by infections spread by whiteflies and by cuttings, how cassava is commonly propagated by farmers.

The crop is the primary source of calories for more than 250 million people living in sub-Saharan Africa because it can grow in low-nutrient soils and withstand droughts that kill other plants.

Each year, cassava farmers lose at least 30 percent of their crop to cassava mosaic disease alone, and the cassava brown streak disease can be responsible for a complete loss of the harvest. In the Lake Victoria area, more than 7 million people are at risk of famine because of plant disease threats, according to the Danforth Center.

Danforth researchers have teamed up with partners in Kenya and Uganda on a project called Virus Resistant Cassava for Africa, or VIRCA.

The Donald Danforth Plant Science Center is a nonprofit research institute in Creve Coeur that focuses on human health and agricultural production.

Source: Bizjournals.com to follow St. Louis Business Journal

Aug 16, 2009

Cassava: the number one industrial crop

Jamaica Gleaner
Published: Sunday | August 16, 2009

Errol G. Lindo, Contributor

IN READING your article on cassava I am forced to provide a few pointers on the direction in which the country should go. I will state here categorically that cassava must be the number one crop for agro industry in the areas of energy, industry, human and livestock consumption.

Cassava

Cassava could become our number one industrial crop because there are established industrial products, and as reports indicate, we are developing a number of additional products. Because of the productive potential of cassava we should not have a problem of producing beyond the sample stage. Cassava leaves are high in protein and are used as a green vegetable in some cultures. Experiments on the use of fresh cut cassava leaves and/or pellet for animal feed should be expanded. Ethanol production for transportation must come from cassava.

Wheat

This cereal can be grown in Jamaica. Research work done in the 1970s and 1980s has shown it to be viable. The crop was not given its rightful place because bread made from the locally grown varieties does not rise as much as with the imported grain.

Please let us be real here, this flour will make good dumpling and roti, and in view of the fact that imported wheat is been stretched by use of other ingredients, locally grown wheat can compete.

The lands required to be successful are sugar cane lands. Let us make the difficult decisions. If Israel can grow wheat in the desert using pressurised irrigation, then we should explore the possibility of using soaker hose technology in our production systems.

Soybean

Research has shown that this crop can be grown in Jamaica. The reason why it is not being grown is because the oil content of suitable varieties is lower than imported seeds. In view of the fact that soy milk and other soy products have over the years become increasingly important in our diet, soybean needs to be revisited so as to meet our demands.

Rice

Many attempts have been made with this crop which has seen success and failure. The country of Japan for a very long time would not allow the importation of cheaper rice so as to protect their local industry and protect the nation as a whole from starvation if its number one food staple is not available.

Jamaica, in its attempt to produce rice, has limited itself to production on marginal flood plane lands. It is high time that sugar cane lands be utilised in rice production. The present effort as reported is excellent in moving yields from five ton/hectare to seven ton/hectare. Ratooning is a brilliant idea. A rotation of rice (main crop and two ratoons) and a cool season planting of soybean should be explored.

Corn/Sorghum

These crops need to be moved from marginal lands and subsistence production to high-quality lands and pressurised irrigation.

Yam

For export produce, smaller tubers would lend themselves to longer shelf life because of less cutting. Producing smaller tubers may involve a combination of smaller head pieces, spacing and the use of irrigation to deliver split application of nutrients. Uniformity in tuber size and shape may also be managed by use of the European method of producing radish in a confined space.

Vegetables

Pressurised irrigation, namely, drip and or micro-sprinklers, are a must even in the hills. Varietal selection of callaloo (amaranths sp) from the different regions of the world, such as Nepal, must be carried out to determine which are most, suitable for planting at different times of the year. Non-traditional vegetable species, such as collard, kale, turnip greens, etc., are to be explored.

Fruits

Mangoes for export should be for the exotic market in mind. Therefore, grow orchards of Julie, Bombay, East Indian, and may be some common for the diaspora. Mango nectar and powder should become part of the value-added objective. Consider fruiting twice per year, which may involve stressing the trees to get the second crop. Use of container farming with brackish water is a possible area of expansion. Information on this technology, if not already residing in the country, can be had from the Volcani Center in Israel.

Pineapples

There is nothing like a good sugar loaf. Produce, produce, produce.

Pear/Peaches/American apple


If we have to have them, then produce your own. Again, get information from Volcani Center in Israel. Nitrogen gas in a cooling system may be use to provide required chilling temperatures.

Livestock

Apart from the problem of foot-and-mouth disease and two-legged rats, the major impediment to production is sufficient high-quality feed. Some of the crops outlined above, such as cassava, corn, sorghum and soybean, must be produced over and above that which is required for human and industrial use. There should never be competition between the different sectors and uses.

Spanish needle is a high-protein forage native to the country. Research should be implemented regarding pressurised irrigation, cutting regiment, split fertiliser application (liquid fertiliser) and varietal selection.

Fisheries

It is imperative that a fish preserving industry, namely, canning and salted dried, be developed. Fish strains such as salmon, crappie, brim, and carp should be investigated. I know some may be saying these are temperate species, to which my reply is, we are blowing off tons of nitrogen at the dry ice factory at Ferry. This nitrogen should be used as a cooling agent for the waters in which these new species would be grown in.

Fertiliser

As mentioned before, we are blowing off tons of nitrogen gas because there is no market for it. Put our chemist and engineers to work on producing ammoniac nitrogen, nitrogen oxides, and urea from this wasted product for use in fertilisers.

These are a few thoughts that I believe will put Jamaica on a firm footing to recovery. Many are not original but are worth repeating. Nor are these thoughts exhaustive, as there are much that can be said regarding ackee, breadfruit, fruit juices, developing farm machinery with low to zero soil compaction, and settlement of young farmersin Guyana to produce some of the inputs for our new valued agri-industry.

Errol G. Lindo is a former agriculturalist with the Ministry of Agriculture. Email: eglban@hotmail.com

Jul 21, 2009

Cassava to be used for food security in Africa

Pokuase, July, 20, GNA - Cassava, a common staple food in Africa, has been identified as the foodstuff to provide food security for Africa, given the agricultural assets and opportunities prevailing on the continent.

This could be achieved by expanding and sustaining on-farm productivity and the profitability of cassava through a USAID funded project, dubbed, "Unleashing the Power of Cassava in response to the food price crisis (UPoCA).

Speaking to the Ghana News agency at the close of a five-day training of trainers programme, Mrs Angela Osei-Safoh, National Project Coordinator, said the country should not be a 'victim' of the food crisis but rather a provider of solutions to it.

The training, which is part of the Project being implemented in seven sub-Saharan African countries, is aimed at maximizing the use of cassava to address food price crises.

Thirty-one Post Harvest Officers, Agric extension Officers, Women in Agricultural Development, District Development Officers, processors and staff of Food Research Institute of the Council for Scientific and Industrial Research from 13 implementing districts in Ashanti and Central regions participated in the training.

Participants were taken through cassava planning, harvesting, processing and packaging.

The two-year project is being implemented in Ghana, Nigeria, DR Congo, Malawi, Mozambique, Sierra Leone and Tanzania with technical support from the International Institute of Tropical Agriculture (IITA).

Mrs Osei-Sarfoh explained that cassava was chosen because in Africa, it provided a basic daily source of dietary energy. The roots are processed into a wide variety of products such as starch, chips, gari and high quality flour among other consumables, or consumed freshly boiled or raw.

In most cassava-growing countries in Africa, the leaves are also consumed as a green vegetable, which provides protein and vitamins A and B.

"It is envisioned that through the project's interventions and activities, diverse stakeholder groups would take up the technologies for improved cassava production, crop management, product development and trade", she said.

She said the project sought to further increase cassava production in farmers' fields of 12 tonnes per hectare by 30 per cent and reach out to 75,500 beneficiaries across the country with more being women.

This, she said, could be achieved through the distribution of elite varieties and related inputs, dissemination of appropriate integrated crop management techniques to ensure at least 30 per cent increase in root yields and the promotion of entrepreneurship in cassava planting material supply.

Some of the benefits she outlined included rapid mass propagation of improved varieties, mop up seasonal surpluses and added value to the crop, promotion of farm gate processing to increase the shelf life of cassava and building the capacity of farmers in improved cassava production and farm gate processing techniques.

The National Project Coordinator noted that the project would help ensure adequate supply of cassava products at economically-affordable prices to participating districts by making readily available improved cassava varieties, production processes and farm gate processing.

She stressed that through the training and experimental learning, participating communities would increase their knowledge and skills whilst producer groups, and agro-processors especially women and youth be empowered to increase their livelihoods.

Mrs Busie Maziya-Dixon, Crop Utilization Specialists of IITA said as cassava was a carbohydrate, it could be fortified with soyabean, or cowpea to give the desired accompanying protein to serve the nutritional needs of the people.

She said the whole project could also create employment and encourage rural people to stay in the countryside instead of leaving for the cities in search of greener pastures.

"Feasibility studies show that under various economic conditions, profits could be made from producing livestock feed from cassava, as well as starch and ethanol made from cassava chips", she added.

Mr Brobbey Mensah, Ashanti Regional Development Officer of the Project sharing his experience with the GNA said cassava apart from gari and fufu, had over 40 benefits including its medicinal values that needed to be exploited.

He commended IITA for the initiative and urged Ghanaians not to waste cassava but turn it into good use.

GNA

Cassava - Google News