The India 's export ban of 100% broken rice has a significant impact on the international rice market, leading to the increasing demand for alternative products for animal feed production. Tapiotek JSC, which specializes in manufacturing modified tapioca starch - one of replacements for broken rice, is facing the opportunity to expand its market and increase export output. Specifically, to control domestic prices, India - the world's largest rice exporter has issued a ban on exporting 100% broken rice and imposed a 20% tax on some other types on September 9, 2022. These decisions were made in the content of a prolonged lack of rain in India's arable regions, which has reduced the acreage planted in the country to its lowest level in three years.
According to the US Department of Agriculture (USDA), while Senegal imports broken rice as an essential food source, China and Vietnam import cheap broken rice from India to replace corn, wheat and soybeans as raw materials. production of animal feeds and other processed foods in the context of a sharp increase in the prices of these commodities.
With India's ban on broken rice exports, demand for alternative products for animal feed production is gradually increasing. Modified tapioca starch stands out among those alternative products because of its ability to meet high demand at a reasonable price. Tapiotek Joint Stock Company - one of the subsidiaries of Nguyen Hoang Development JSC (a member of Bamboo Capital Group) is one of the few factories in Vietnam that can produce modified tapioca starch. Compared with natural starch, this is a product that is modified by physical and chemical methods to enhance or adjust specific properties. Besides, modified tapioca starch has multiple applicability in the production of food and animal feed.
Image: A part of Tapiotek's new producing line
After increasing its charter capital to VND160 billion by the end of 2021, Tapiotek has significantly improved its working capital, increased its competitiveness against other major competitors. Located in Chau Thanh district, Tay Ninh province, Tapiotek's factory has a great advantage in procuring raw materials from both local farms in the country and Cambodia, so the factory can operate throughout the year without being affected by the local seasonality of cultivation. Besides, the company also completed the increase of factory capacity from 2,000 to 3,500 tons of finished product/month in July 2022. Thereby putting Tapiotek's factory capacity in the group of 5 largetest modified tapioca starch factories in Vietnam.
Tapiotek JSC is ready to seize great opportunities to grow revenue, accelerate the expansion of its customers in both traditional markets of China, Vietnam and other new markets.