CIAT cassava program in Asia

Adding value to cassava for diverse
markets and uses: CIATs cassava
program in Asia
Hanoi, 2nd November 2018
CIAT Show and Tell

Cassava Program’s mission and objectives
Mission: Create a sustainable cassava production system
through agricultural innovations that will increase cassava
production without increasing environmental pressures.
1. Ensuring efficient and sustainable
production of adequate volumes of cassava
for new value chains/markets (i.e. High
pVA, waxy and small-granule)
2. Alleviating poverty and increasing wealth
through agricultural innovations
3. Achieving better health and nutrition (i.e.,
low-GI starch) for consumers and
producers and
4. Most effectively using and conserving the
natural resource base upon which all of
this depends.
Objectives:

Cassava Program in Asia 1. Aggressively introduce 700+ LAC germplasm
for screening CWB and CMD
2. Map cassava varieties to production areas
in Cambodia, Laos and Myanmar
3. Lead breeding efforts to develop high starch
productive varieties with CMD and CWB
resistance
4. Establish a Pest and Disease surveillance
system for rapid response to potential
outbreaks (i.e. PestDisPlace)
5. Develop a robust and sustainable cassava
seed system to secure access to cost
effective clean planting materials
6. Effective plant nutrition scheme
7. Understanding cassava value chains and
markets

CIATs transdisciplinary cassava team in Asia

Working in a broad range of agroecological zones

Working across different value chains: food, small-scale
processing, large scale industrial processing

The regional value chain for cassava products involves large amounts of
cross border trade

Including large volumes of planting material moving around the region
FANTASTIC IN THE ABSENCE OF PEST AND DISEASE

The program consists of two interlinked projects
• Developing cassava production and marketing systems to enhance
smallholder livelihoods in Cambodia, Lao PDR and
Myanmar ASEM/2014/053
• Developing value-chain linkages to enhance the adoption of profitable
and sustainable cassava production systems in Vietnam and
Indonesia AGB/2012/078

Framework for analysing incentives for private-
sector investment in dissemination of technologies
• Incentives for private-sector involvement and degree of involvement
depend on three interrelated characteristics:
• Inherent characteristics of the technology
• Characteristics of the production system and farming community
• Characteristics of the value chain, including ability of agribusiness actors to
capture the benefits of any investment in technology dissemination
• Different strategies for engagement with the private sector must be
developed for each combination of technology type, value-chain actor,
and production system

(1) Technology characteristics
• ‘Learnability’ of the technology
• observability
• technological complexity
• ease of trialling
• Relative advantage of the technology
• investment costs
• profitability
• ease and convenience
• risk
• reversibility

(2) Production system and community
characteristics
• Agronomic characteristics
• Socio-economic characteristics
• Political characteristics

(3) Value-chain characteristics
• Chain characteristics
• linkages between actors
• external support actors
• information transmission
• level of competition
• Actor characteristics
• ability to capture benefits
• profit orientation
• risk orientation
• enterprise scale
• management horizon

Objectives of ASEM/2014/053 and AGB/2012/078
• Objective 1 – Assess opportunities and constraints for smallholder
production and marketing of cassava within different value chains
• Objective 2 – Increase the adoption of improved cassava production
and processing technologies by strengthening linkages between
primary value-chain actors (farmers, traders, processors) and with
support actors (researchers, government agencies, industry bodies)
• Objective 3 – Develop policy recommendations and facilitate learning
alliances for the development of a sustainable cassava industry and
improvement in rural livelihoods

On the demand side – the market outlook for cassava in Asia needs to be
considered in the context of substitutes in different applications
1. Cassava for direct consumption or sale into short
value chains as fresh roots for food. Competition
with other food such as rice based on price and
consumer preferences.
2. Global markets where cassava chips compete
with other forms of carbohydrate for processing
animal feed or ethanol such as maize, sorghum,
wheat, molasses – oil, gas.
3. Markets where cassava starch competes largely
on price with substitutes such as maize and
potato starch, sugarcane.
4. Markets where the functional properties of the
starch are desired. Consumer preferences, clean
label segment, gluten free etc.

And on the supply side – the relative competitiveness against other land use
in the context of different trends and shocks
• Own price and relative prices to other
commodities that can be produced in
agroecological zones
• Changes in costs of production
• Changing labour costs and ease of mechanization
• Long term climate trends
• Changes in land suitability and land
degradation
• Floods and droughts
• IMPACT OF PEST AND DISEASE

Value of cassava trade and relative importance of cassava
starch in global trade
Source: Comtrade
Global trade largely is Southeast Asia exporting to East Asia and Southeast Asia
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Valueofexports(BillionUSD)
Cassava starch Cassava (fresh&dried)
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Valueofexports(BillionUSD)
Other
Potato starch
Wheat starch
Corn starch
Cassava starch

6
8
10
12
14
16
18
20
22
150
200
250
300
350
400
450
500
550
600
650
DomesticPrice(Baht/kg)
ExportPrice(FOBUS/MT)
Export Price (FOB US/MT) Domestic price (Baht/kg)
Thai starch price 2006 - 2018
Cassava Mealybug
Maize policy reform
Reduction in planted area
Flooding in Thailand
Maize price in China
DISEASE ?

Sweeteners
44%
Monosodiu
m Gultamate
(MSG)
18%
Whole Salers
13%
Modified
Starch
10%
Paper
7%
Tapioca
Pearls
4%
Textile
1%
Other
3%
Domestic utilisation of starch in Thailand (14.5% Root Equivalents)
Source: TTTA
Sweetener
30%
MSG
17%
Wholesaler
15%
Modified
Starch
10%
Paper
6%
Sago
4%
Textiles
1%
Ethanol
15% Other
2%
2017 – 1.66 Million MT Starch2015 – 1.495 Million MT Starch

0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
2009 2010 2011 2012 2013 2014 2015 2016 2017
Valueofcassavaexports(billionusd)
Value of cassava exports (2009-2017)
Total (USD) China
A billion dollar export crop for Vietnam for the past 6 years
• A billion dollar USD export earner
for Vietnam for starch and chips
• Domestic utilisation in
• MSG,
• Paper and cardboard
• Animal feed (chips and starch)
• Noodles
• Sweeteners and syrups
• Traditional food

Smallholders cassava farmers part of a larger global carbohydrate market
-300
-200
-100
0
100
200
300
400
500
600
Jun-08
Sep-08
Dec-08
Mar-09
Jun-09
Sep-09
Dec-09
Mar-10
Jun-10
Sep-10
Dec-10
Mar-11
Jun-11
Sep-11
Dec-11
Mar-12
Jun-12
Sep-12
Dec-12
Mar-13
Jun-13
Sep-13
Dec-13
Mar-14
Jun-14
Sep-14
Dec-14
Mar-15
Jun-15
Sep-15
Dec-15
Mar-16
Jun-16
Sep-16
Dec-16
Mar-17
Jun-17
Sep-17
Dec-17
Mar-18
USDPERMT
Difference US Gulf Maize CNF China + VAT
Chinese Futures (DCE) US Gulf Maize (FOB)
Large stockpile remains:
Rabobank still forecasts a
230m MT of stocks
Reduction
in price
support
Removal
of scheme

Cumulative monthly exports from Thailand (Value)
Dried chips Starch0.5% value
27% volume
25% value
15% volume
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Thaichipexportvalue(MillionUSD)
2008 2009 2010 2011 2012 2013
2014 2015 2016 2017 2018
0
200
400
600
800
1,000
1,200
1,400
ThaiStarchexportvalue(MillionUSD)
2008 2009 2010 2011 2012 2013
2014 2015 2016 2017 2018

Cumulative monthly exports from Vietnam (Value)
Dried chips Starch
-
100
200
300
400
500
600
700
800
900
1,000
Valueofchipexports(millionUSD)
2010 2011 2012 2015
2016 2017 2018
-
100
200
300
400
500
600
700
800
900
1,000
Valueofstarchexpots(MillionUSD)
2010 2011 2012 2013 2014
2015 2016 2017 2018
31% value
47% volume
13% value
24% volume

Thailand
2017 = 281.7 million USD
Vietnam
2017 = 282.2 million USD
Cumulative monthly value of imports from Cambodia
(fresh or dried)
0
50
100
150
200
250
300
ThaiImportValuefromCambodia(MillionUSD)
2010 2011 2012 2013 2014
2015 2016 2017 2018
0
50
100
150
200
250
300
VietnamimportsfromCambodia(MillionUSD)
2010 2011 2012 2013 2014
2015 2016 2017 2018
30% value
37% volume
50% value

Comparison between Thai and Indonesian prices
-80
-60
-40
-20
0
20
40
60
80
100
200
250
300
350
400
450
500
550
600
650
Oct-09
Apr-10
Oct-10
Apr-11
Oct-11
Apr-12
Oct-12
Apr-13
Oct-13
Apr-14
Oct-14
Apr-15
Oct-15
Apr-16
Oct-16
Apr-17
Oct-17
Apr-18
Difference(Thai-Domestic@Factorygate)
StarchPrice(USD/t)
Difference Thai Starch (FOB Bangkok)
Indonesia Starch (East Java) Thai + Freight
-40
-30
-20
-10
0
10
20
30
40
20
40
60
80
100
120
140
Oct-09
Apr-10
Oct-10
Apr-11
Oct-11
Apr-12
Oct-12
Apr-13
Oct-13
Apr-14
Oct-14
Apr-15
Oct-15
Apr-16
Oct-16
Apr-17
Oct-17
Apr-18
Difference(Thai-Lampung)
Rootprice(USD/t)
Difference Lampung Roots ($US/MT) Thai Roots ($US/MT)
Fresh roots
Starch

Cumulative monthly exports from Thailand and Vietnam to Indonesia
(million USD)
Thailand Vietnam
0
50
100
150
200
250
300
ThailandcassavastarchexportstoIndonesia
(MillionUSD)
2010 2011 2012 2013 2014
2015 2016 2017 2018
0
5
10
15
20
25
30
35
VietnamcassavastarchexportstoIndonesia
(MillionUSD)
2012 2013 2014 2015 2016 2017 2018

Difference in Thai cassava and US maize starch
• Cassava starch has again become
a relatively more expensive
native starch for modification
and deep processing
• Eg. Manufacture of sweeteners
• Short term options for
Indonesian deep processors to
remain competitive
• Use alternative feed stock (maize)
• Import processed products (glucose etc.).
2012 2018
-200
-100
0
100
200
300
400
500
600
700
Oct-09
Mar-10
Aug-10
Jan-11
Jun-11
Nov-11
Apr-12
Sep-12
Feb-13
Jul-13
Dec-13
May-14
Oct-14
Mar-15
Aug-15
Jan-16
Jun-16
Nov-16
Apr-17
Sep-17
Feb-18
Jul-18
USD/MT
Difference
Tapioca starch (Super High-Grade) FOB Bangkok
Corn starch, Midwest

Biofuel prices and root equivalent price
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8 Oct-09
Mar-10
Aug-10
Jan-11
Jun-11
Nov-11
Apr-12
Sep-12
Feb-13
Jul-13
Dec-13
May-14
Oct-14
Mar-15
Aug-15
Jan-16
Jun-16
Nov-16
Apr-17
Sep-17
Feb-18
Jul-18
USD/Litre
Root cost in Ethanol (Thai) CBOT Ethanol (USD/litre)

30
Some key features
• Originally linked to failed Lao-Indo China Factory
(Vientiane)
• New factories (one chip and one starch) begin using
contract farming
• Chip factory provides capital to farmers to buy tractors
• Starch factory linked to sister company in Nghe An
Province in Vietnam
• Stop contract models due to market volatility
• Issues with access to working capital in value chain
• Some farmers stop selling fresh roots to dry chip factory
largely due to delays in payment
• Begin making their own dry chips

31
- Complex, well developed value
chain for starch and chips
- Many intermediate layers
between farmers and final
processors
- Price differential between
producers and processors
indicates well-functioning value
chain

32
Value Chain Actor Buying Price Selling Price
Farmer VND1000/kg
Collector VND1000/kg VND1100/kg
Small Trader VND1100/kg VND1200/kg (sale to large trader)
VND1400-1550/kg (sale to processor)
Large Trader VND1200/kg VND1400-1550/kg
Starch Factory VND1400-1550/kg
Chip Processor VND1400-1550/kg
Prices of fresh cassava root for different value chain actors in Son La (2015)
Value Chain Actor Buying Price Selling Price
Farmer/household chip processor VND3200-3300/kg
Collector VND3200-3300/kg VND3400/kg
Small/Large Trader VND3400/kg VND3600-3700/kg
Chip Processor/Trader VND3600-3700/kg VND4000/kg
Prices of dry cassava chips for different value chain actors in Son La (2015)

Information on:
1. Information about the village
2. Different activities of farmers in the village
3. Timeline of key events related to cassava production and marketing in
the village
4. Seasonal calendar (gender roles)
5. Cassava enterprise budget – cost and returns
6. Discussion of marketing – validate the value chain map
7. Ranking of different activities
8. Main constraints to cassava production and marketing
9. Potential interventions and ranking
33

• Competition for
labour and other
resources between
rice production and
other activities
34
• Introduction of the
commercial cassava
and changing
production systems
• Marketing problems
and changes
• Arrival of pest and
disease

Grown by upland farmers to support livelihood security
(Eastern Cambodia)
0
2
4
6
8
10
12
14
16
18
Chitr_borie Siem_bouk Snuol Total
Riel/Year
Millions
Cassava Income Non-Cassava Cropping Income
Total Livestock Income Off-farm Income
6m Riel = $1500 USD
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q1 Q2 Q3 Q4 Total
Income Quartiles
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q1 Q2 Q3 Q4 Total
Income Quartiles
Gross total income % share of total income % share of cash income

(Lao PDR)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q1 Q2 Q3 Q4 Total
Income Quartiles
Total Cassava Income Non-Cassava Cropping Income
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q1 Q2 Q3 Q4 Total
Income Quartiles
0
10
20
30
40
50
60
KIP/Year
Millions
20m Kip = $2350 USD
Gross total income % share of total income % share of cash income

(DakLak Province - Vietnam)
0
20
40
60
80
100
120
140
160
180
Cukty Dang kang Ea sar Ea so Total
VND/Year
Millions
Coffee
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q1 Q2 Q3 Q4
Cassava Coffee Other crops Livestock Off-farm Income
Sugarcane
40m Kip = $1745 USD
Gross total income % share of cash income
Marginal land &
Limited resources

0
20
40
60
80
100
120
140
160
Freshroot(USD/t)
Jan-17 Apr-18
Farm gate = $28
Large price uncertainly - Fresh root prices at collection points & factory
25% SC
30% SC
30% SC

Participatory budgeting and scenario analysis in Lao PDR
Price (THB/kg)
Yield (t/ha) 0.9 1.6 2
15 - 15,650 - 5,150 850
20 - 11,150 2,850 10,850
25 - 6,650 10,850 20,850
35 2,350 26,850 40,850
Price (THB/kg)
Yield (t/ha) 0.9 1.6 2
15 78.3 195.0 261.7
20 128.3 283.9 372.8
25 178.3 372.8 483.9
35 278.3 550.6 706.1
Shadow wage rate = 220
~$650USD/ha returns to
household owned resources

Meetings with industry and other stakeholders to plan activities

Demonstration site in industry fields

Demonstration trials in farmers fields

New varieties in Eastern Indonesia

Consumer preference in Eastern Indonesia

Website: http://cassavavaluechains.net/

Join the conversation at : https://www.facebook.com/groups/1462662477369426/
ACIAR Cassava Value Chain and Livelihood Program

Adding another level of production risk from emerging
pest and disease will significant impacts rural
livelihoods, industry and national economies

KU50 Rayong11
Cassava witches broom in variety evaluations

Cassava witches broom disease impact on starch yield

Cassava witches broom in fertiliser demonstrations

0
5
10
15
20
25
30Freshweightyield(t/ha)
Both KU50 Rayong 11
0
1
2
3
4
5
6
7
8
9
Starchyield(t/ha)
Both KU50 Rayong 11
Cassava witches broom disease impact on MRR to fertiliser

Large impact of disease the farm and processing economics
Typically 1000t roots = 250t starch
With disease
1000t roots = 140t starch
Processor in Cambodia

KU50
Rayong 11
SC8
HuayBong60
KM98-1
Rayong 5
50m apart

Fertility management trials: Potassium (K) trial

New methods technologies for evaluation

Evaluation of new clones with partners: over 200 new clones in TayNinh

Infer cassava materials likely to increase virus presence
KU50

4. Cassava seed systems in Southeast Asia
Cassava seed exchange networks – both opportunity and threat:
+ Allow farmers to recover from stake loss (drought, etc.)
+ Enhance dissemination of new varieties
+ Specialized production of high quality seed -> higher yields
+ High investment and renewal rates suggest business potential
- Spread of seed borne pests & diseases
- National pest & disease issues rapidly become regional
Informal/farmer system:
- >95% seed supply
- Frequent international movement
- No phytosanitary control
Formal seed system:
- <5% seed supply
- High quality, potential certification
- High cost
Stakes for sale in Southern Vietnam; CMD
symptoms visible on sprouting stakes
Photo: Sok Sophearith
Photos: Cu Thi Le Thuy
5
4
3
2
2
94
1
1
17
1
6
1
Incidents of international stake movement
detected in one season of surveys in
Cambodia. Yellow-Thailand, Red-Vietnam,
Blue-Laos

Tracking of disease: technically easy – politically difficult

New ACIAR project
Objective 1: Assess the opportunities and challenges for the development
of sustainable solutions to cassava disease management in mainland
Southeast Asia
Objective 2: Develop commercially viable cassava varieties resistant to
Cassava Mosaic Disease (CMD) and Cassava Witches Broom Disease
(CWBD)
Objective 3: Develop and deploy diagnostic protocol, tools and
information platforms fit for purpose in monitoring, surveillance, and
certification applications.
Objective 4: Develop an economically sustainable cassava seed system for
the rapid dissemination of new varieties and clean planting material to
farmers

CIAT cassava program in Asia

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