The cassava flour demand in the plywood industry in Ecuador : Case study

A few years ago the union of cassava producing and processing associations (UAPPY) in the province Manabí in Ecuador depended for its sales almost entirely on the shrimp feed industry. In order to be able to serve more markets, it started to process more cassava products, among which sifted whole cassava flour, which could be sold to the plywood industry. Sifted whole cassava flour currently substitutes to a certain extent wheat flour in the resin with which sheets of wood are glued together. The main purpose of this study is to estimate the cassava flour demand in the plywood industry in Ecuador. Therefore we first estimated the final demand, plywood, and next derived the cassava flour demand. A second purpose of this study is to determine whether the estimated cassava flour demand is sustainable, meaning large enough to stimulate the union of cassava producing and processing associations to keep on providing sifted whole cassava flour to the plywood industry. For this purpose we estimated cassava flour processing and transportation costs to the plywood companies and used them, together with estimated cassava flour prices, in a break-even analysis. The estimated total plywood demand and derived of this the cassava flour demand grows from 1992 to 1996 with 17.7 percent. This means for the union of cassava producing and processing associations in Portoviejo that, if its market share in the plywood industry stays the same, it will sell almost 290 ton cassava flour in 1996. The estimated annual cassava flour amounts sold by the union to the plywood industry are in the next 5 years larger than the estimated annual break-even amounts. Concluded is therefore that the estimated cassava flour amounts sold by the union in the next 5 years to the plywood industry are large enough to stimulate them to keep on providing cassava flour to this industry.

Bibliographic Details

Main Author:	Brouwer, Roy 9935
Format:	Texto biblioteca
Language:	eng
Published:	Wageningen, NL Marketing Department of the Agricultural University Wageningen 1992
Subjects:	Manihot esculenta, Flours, Tapioca, Wood industry, Development projects, Demand, Prices, Costs, Income, Ecuador, Harinas, Industria maderera, Proyectos de desarrollo, Demanda, Precios, Costos, Renta, Cassava, Yuca, CIAT MENCION, Agroindustria, Agro-industry, Books, DIGITAL2015,
Online Access:	http://ciat-library.ciat.cgiar.org/Articulos_Ciat/2015/HD_9235_C3_B7.pdf http://ciat-library.ciat.cgiar.org/Articulos_Ciat/Digital/HD_9235_C3_B7_The_cassava_flour_demand_in_the_plywood_industry_in_Ecuador.pdf
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