Ethanol manufacturers fear decrease in cassava yield

The Thai Ethanol Manufacturers Association has expressed concern that next year’s decrease of cassava yields will push the crop’s price up, resulting in farmers’ exporting all their crops, which could impact newly opened factories. Chairman Sirivuth Siamphakdee said that the price of raw materials used to produce ethanol is expected to increase as a result. If the average price remains at 20 baht (US$0.60) per liter, the amount of raw materials required for processing will also decline, said Sirivuth. It is expected that molasses and cassava producers would retail products to the general market, rather than to ethanol manufacturers. (December 17, 2009)