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Projected cassava prices In the EC following the CAP Agenda 2000 Reform

For Basic price data see Table 7 of the Statistical Appendix

Assuming the EC barley price falls to EURO 100 per tonne in 2005:

PB 2005= 100 EURO = 111 US$/tonne (assuming exchange rate remains at 1.11 US$/EURO)

Assuming price of soybean meal by 2005 remains at the 1996–98 average level of US$ 238 per tonne and barley is a perfect substitute for a compound made of 80 percent of cassava and 20 percent of soybean meal, the price of cassava pellets entering the EC at the preferential 6 percent duty should fall to some US$ 75 per tonne, to remain competitive.

PB2005= 0.80 * [PC2005* (1+0.06) ] + 0.20 * PSBM2005

Pricing structure for cassava pellets in Thailand45

Cassava PelletsUS$/tonneBaht%
Price EC74.83 073100.0
Price CIF59.6 79.7
Price FOB Wholesale53.7 71.8
Factory price52.7 70.4
Farm price37.2 49.7

45Source: Thailand Tapioca Trade Association, Market Review, various Issues.

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