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
|Price EC||74.8||3 073||100.0|
|Price FOB Wholesale||53.7||71.8|
45Source: Thailand Tapioca Trade Association, Market Review, various Issues.