Cassava starch market in MERCOSUR

Earlier Report Observations

The cassava starch market in MERCOSUR saw a steady contraction from 2018 to 2021, with its volume falling from 73.4 thousand tons to 50.2 thousand tons. This period was characterized by a shrinking domestic market despite active international trade in the product.

A sharp reversal began in 2022, as the market volume expanded by over a third to 68.1 thousand tons. This recovery was ignited by government mandates in Brazil for renewable fuel blending, which created new industrial demand for cassava starch in bioethanol production. Furthermore, exceptionally good weather conditions during the agricultural season significantly boosted cassava yields and starch output.

Market growth accelerated further in 2023, with volume reaching 83.3 thousand tons. The supportive policy environment for biofuels continued to underpin demand, while starch processors expanded their capacity, reflected in a 12% year-on-year increase in cassava crushing. During this phase of rapid supply growth, export volumes fell sharply as the market adjusted to new domestic dynamics.

Production cassava starch in MERCOSUR

In kind, 2017-2020, t

Top producers of cassava starch, 2017-2020

World map of production of cassava starch, 2017-2020

MERCOSUR's cassava starch production has grown for the third year in a row. In 2020, the region produced 88 091 tonnes, showing minimal change from 2019. Looking at the period from 2017 to 2020, production rose by 3%, with an average annual growth rate of 1.0%.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, t

In value, 2017-2020, K $ US

MERCOSUR's cassava starch production value has fallen for the second consecutive year. In 2020, output was valued at 51 964 thousand US dollars, marking a slight decline of 1.0% compared to the previous year. From 2017 to 2020, production value dropped by 18.5%, with an average annual decrease of 6.6%. The highest value was recorded in 2018 at 65 109 thousand US dollars, while the largest decline occurred in 2019 with a 19.4% drop. In contrast, the biggest increase was seen in 2018 at 2.2%.

Annual dynamics of production in MERCOSUR in value, 2017-2020, K $ US

Exports cassava starch from MERCOSUR

Exports in kind, t

MERCOSUR's cassava starch exports have increased for the second year running. In 2020, exports reached 40 568 tonnes, representing a solid 13.0% rise from 2019. Between 2017 and 2020, exports grew by 54.4%, which translates to an annualized rate of 15.6%. The lowest export volume was in 2018 at 24 861 tonnes, with the largest decline that year at 5.4%. The most significant increase happened in 2019, surging by 44.5%.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, t

From 2017 to 2020, three key markets—Colombia, Bolivia, and the United States—collectively made up 52.3% of MERCOSUR's total cassava starch exports by volume.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from MERCOSUR in kind, 2017-2020

Exports in value, K $ US

Cassava starch exports from MERCOSUR have risen for the second consecutive year. In 2020, exports amounted to 23 931 thousand US dollars, up 11.5% from the previous year. Over the 2017-2020 period, exports increased by 22.3%, with an average annual growth rate of 6.9%. The lowest value was recorded in 2018 at 18 543 thousand US dollars, when the largest decline of 5.3% occurred. The biggest increase was in 2019, with a 15.8% jump.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, K $ US

Between 2017 and 2020, Colombia, Bolivia, and the United States were the top buyers of cassava starch from MERCOSUR in value terms, accounting for 19.0%, 16.3%, and 16.0% of exports, respectively. Together, they represented 51.3% of total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from MERCOSUR in value, 2017-2020

Imports cassava starch to MERCOSUR

Imports in kind, t

Foreign cassava starch supplies to MERCOSUR have declined for the third year in a row. In 2020, imports totaled 5 425 tonnes, showing a small decrease of 1.2% year-over-year. From 2017 to 2020, imports fell by 77.5%, with an average annual decline of 39.2%.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, t

Throughout 2017-2020, Thailand, Nicaragua, and Vietnam were the leading sources for cassava starch imports into MERCOSUR by volume, contributing 24.0%, 1.1%, and 0.8% of imports, respectively. Combined, they accounted for 25.9% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to MERCOSUR in kind, 2017-2020

Imports in value, K $ US

The value of cassava starch imports into MERCOSUR has dropped for the third consecutive year. In 2020, imports stood at 4 410 thousand US dollars, equivalent to a 4.5% contraction compared to 2019. Over the 2017-2020 period, import value decreased by 71.5%, with an average annual rate of decline of 34.2%.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, K $ US

From 2017 to 2020, Thailand, the United States, and Nicaragua were the main sources for cassava starch imports into MERCOSUR in value terms, accounting for 22.2%, 1.0%, and 0.9% of imports, respectively. Together, they made up 24.1% of total import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to MERCOSUR in value, 2017-2020