WEST GERMAN TAPIOCA USE SEEN DECLINING
West German use of tapioca is likely to
decline further despite favourable prices and import licences
for only 420,000 tonnes have been registered since the start of
the current agricultural year, compared with 640,000 tonnes
during August/April the previous year, trade sources said.
    The 12 European Community (EC) countries have licensed a
total of 4.22 mln tonnes, while at the same year-earlier period
the EC contracted for 3.17 mln tonnes, they said.
    The Netherlands is registering an increase in licences to
around 2.9 mln tonnes, up 400,000 tonnes from last year, they
said.
    Total EC tapioca imports during the current agricultural
year are expected to stagnate at last year's level of around
6.0 mln tonnes, the sources said.
    They reported a rise in consumption and in import licences
for France, Spain and Belgium but said the West German compound
feed industry was increasingly using grain in feed mixtures.
    Sellers quoted tapioca for nearby delivery at around 27
marks per 100 kilos against 37 marks in March and 34 marks in
April last year.
    Feed barley was quoted at about 42 marks per 100 kilos,
resulting in higher West German feed stuff prices, but demand
was seen as slack.
    The sources said the West German feed industry was trying
to help cut the grain surplus through increased use of grain in
feed mixtures.
    Other EC member countries are likely to take advantage of
the lower tapioca prices, they said.
 REUTER
