Starches market in Madagascar

Earlier Report Observations

The starch market in Madagascar saw significant growth in 2019, with volume rising to 13 629 t, a 19% increase from the previous year. This expansion took place against a backdrop of national corn production, a primary input for starch, though yields were constrained at about one tonne per hectare. Small groups in the maize market maintained high prices, potentially affecting production costs.

Market volume declined to 11 891 t in 2020, a period marked by the launch of the Covid-Organics phytomedicine, reflecting the broader impact of the COVID-19 pandemic on agricultural and industrial activities. A slight further decrease to 11 729 t occurred in 2021. In 2022, increased national corn output to 266 700 t provided more raw material for starch processing, helping production recover to 10 157 t. Government pledges to double corn production by 2027 under the Food Sovereignty Pact, along with general agro-industrial development, supported this stabilization. The entry of heavy oil from Madagascar Oil SA offered potential energy cost reductions for manufacturers.

By 2023, market volume held steady at 11 519 t. During this year, the diversification of export markets for Malagasy organic products to the Middle East opened new avenues, while the vanilla crisis highlighted the volatility of agricultural commodities. Regulatory changes, such as the 2022 public procurement circular, continued to shape market conditions.

Production starches in Madagascar

In kind, 2017-2020, t

Top producers of starches, 2017-2020

World map of production of starches, 2017-2020

In 2019, Madagascar's starch production reached its peak at 11 801 tons, marking a significant increase of 16.6% from the previous year. However, production declined to 10 529 tons in 2020, representing a sharp drop of 10.8% compared to 2019. Over the period from 2017 to 2020, overall production grew by 3.1%, which translates to an average annual growth rate of 1.0%. The lowest production level was recorded in 2018 at 10 125 tons.

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

Exports starches from Madagascar

Exports in kind, t

Madagascar's starch exports showed notable fluctuations during this period. In 2019, exports hit their lowest point at just 0.3 tons, reflecting a dramatic decline of 96.7%. The following year, exports surged to 9 tons in 2020, representing an extraordinary increase of 2,916.9% compared to 2019. Overall, export volumes varied significantly, with a 30-fold difference between the low in 2019 and the high in 2020.

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

From 2017 to 2020, France dominated Madagascar's starch exports in volume terms, accounting for 94.3% of the total export flows.

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

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

Exports in value, K $ US

The value of Madagascar's starch exports experienced considerable volatility during these years. In 2019, export values reached their lowest point at 0.0 thousand US dollars, marking a substantial decline of 99.6%. By contrast, 2018 saw the peak value, with exports falling to their minimum in 2019—a staggering 227-fold difference between these two years. In 2020, export values recovered to 2 thousand US dollars, showing a sharp improvement of 3,972.4% from 2019.

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

During the 2017–2020 period, France effectively concentrated Madagascar's starch exports in value terms, capturing 95.0% of the total export flows.

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

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

Imports starches to Madagascar

Imports in kind, t

Madagascar's starch imports in volume terms increased over two years before declining. In 2019, imports peaked at 1 828 tons, reflecting a significant rise of 41.2%. However, by 2020, imports had dropped to 1 371 tons, which is 25.0% lower than in 2019. Over the entire 2017–2020 period, imports grew by 6%, with an average annual growth rate of 2.0%.

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

From 2017 to 2020, South Africa, Vietnam, and India formed the core group of markets for Madagascar's starch imports in volume terms. South Africa accounted for 38.7% of imports, Vietnam for 21.3%, and India for 18.8%. Together, these three countries represented 78.8% of the total import flows.

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

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

Imports in value, K $ US

Madagascar's starch imports in value terms rose for two consecutive years before decreasing. In 2019, import values reached their highest point at 1 020 thousand US dollars, showing a notable increase of 42.2%. However, in 2020, imports fell to an unspecified value, down by 27.9% compared to 2019. Over the 2017–2020 period, import values increased by 12.8%, equating to an average annual growth rate of 4.1%.

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

In the 2017–2020 period, South Africa, Vietnam, and India were the principal destinations for Madagascar's starch imports in value terms. South Africa held a 40.8% share, Vietnam accounted for 22.8%, and India made up 15.2%. Collectively, these three markets represented 78.8% of the total import flows.

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

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