A simulation analysis of Thai Manioc starch in the Japanese market using a static input-output model: The effects of substitution and cost reduction
2007
Uebayashi, A.(Japan. Ministry of Agriculture, Forestry and Fisheries, Tokyo. Policy Research Inst.)
In the United States, the European Union and Japan, the sugar and starch sectors receive high price support through domestic and border measures, which effectively open up the possibility of an alternative sweetener industry such as that to produce HFCS (High Fructose Corn Syrup). Starch is used in various other non-sweetener industries as raw material; therefore the removal of protective measures would generate broader influence on various industries. Manioc starch of Thailand is considered the most competitive in the global starch market. This article attempts to estimate the effects of the removal of tariffs for the Japanese import market of starch, and to focus on the substitution effect between sugar and HFCS and the cost reduction effect of sweeteners in processed food products using an input-output static model. The effects of the reduction of the cost of starch in non-sweetener industries (i.e., paper manufacturing) that use starch is also estimated. This analysis revealed that the elimination of border restrictive measures for starch would increase the import of Thailand manioc starch into Japan by 180 thousand tons and would increase the income of Thailand farmers by 5.4 billion Yen.
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