China responds to Thailand's request to purchase 440000 tons of cassava, with a total price exceeding 5.3 billion Thai baht!

According to Thai media reports, in order to further expand Thailand's cassava export market, the Thai Ministry of Foreign Trade organized a delegation including the government and private sector to conduct roadshows and promotions in Shanghai and Chengdu, China from January 5th to 9th. During this period, companies from both countries signed a memorandum of understanding on cassava trade cooperation, with a procurement volume of 440000 tons and a total value of approximately 5.31495 billion Thai baht!

It is reported that in addition to signing a memorandum of understanding on cooperation, successful business negotiations between industries between China and Thailand have also been achieved. A total of 51 Chinese companies participated in this event, covering multiple traditional and emerging potential industries such as alcohol, feed, glue, and papermaking. Among them, as one of the largest feed production enterprises in China with a registered capital of up to 34 trillion RMB, New Hope Group also participated in the roadshow promotion event held in Chengdu.

Previously, there were reports that cassava prices had collapsed, and Thailand urgently sought help from China! The Minister of Commerce of Thailand, Pichai, revealed about the falling price of cassava that he has urged relevant departments and institutions to urgently coordinate with China to help purchase Thai cassava products, which is expected to create a market demand of more than 1 million tons for Thai cassava industry entrepreneurs before the Chinese Spring Festival, and hopes that the Association of Animal Feed Manufacturers of Thailand will increase the number of purchases, and order the Ministry of Commerce to open up new markets for cassava and products in advance.

But data shows that in the first seven months of this year, China has spent 1.08 billion US dollars to purchase 2.05 million tons of cassava starch from Southeast Asian countries. The amount and value of cassava starch imported by China from Southeast Asian countries have increased by 21.8% and 33.7% respectively year-on-year! Thailand, Vietnam, Laos, Cambodia, and Indonesia are the main suppliers, and Southeast Asian countries are playing an increasingly important role in the Chinese cassava starch import market.

China is the largest market for Thai cassava products exports, with Thailand's total cassava products exported to the Chinese market accounting for 48% of Thailand's exports to the world. The Minister of Foreign Trade of the Ministry of Commerce of Thailand, Alada, stated that the two countries have reached a trade transaction worth approximately 5.3 billion Thai baht, which will to some extent increase the confidence of Thai farmers and exporters, and be conducive to improving their production enthusiasm and income level. The Thai Ministry of Foreign Trade will continue to follow up on the negotiation results of this event and further expand the Chinese cassava import market.