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In the Philippines, a Korean company spends P756 million on a cassava-based initiative.

MANILA, Philippines — Daesang Philippines, Inc. is investing PHP756.24 million in a project that will assist local cassava growers, according to the Board of Investments (BOI).

Daesang is constructing a tapioca starch production facility in Tagoloan, Misamis Oriental, that is expected to open in January 2023. It will employ 492 people.

Annually, the facility will produce 33,000 tons of tapioca starch and 4,446 tons of tapioca residue.

“Daesang’s project will expand the Philippines’ cassava starch production capacity by 9%, from 370,000 to 403,000 metric tons,” according to the BOI.

Tapioca is a root extract made from cassava. The food and beverage sector uses tapioca starch and modified starch as raw ingredients. Polylactic acid, which is extensively used for biodegradable plastic films, bottles, and medical devices, is another growing substance for various industrial applications.

Animal feeds are made from tapioca leftovers, a by-product of cassava starch production.

Daesang chose Northern Mindanao, the country’s second-largest cassava-producing region because the production factory will require 500 tons of fresh cassava each day.

This provides a chance for local cassava producers to meet Daesang’s needs.

The new project, according to Trade Secretary and BOI Chairman Ramon Lopez, is “making steps in modernizing our country’s agriculture industry.”

Daesang’s investment in the Philippines, according to Lopez, is a result of stronger economic connections between Manila and Seoul, which are negotiating a bilateral free trade agreement (FTA).

“This is a ground-breaking initiative since it shows the enhanced economic connection between the Philippines and South Korea at a time when the free trade agreement is nearing completion.” As a result, we at the Board of Investments invite more Korean companies to invest in the Philippines,” he added.

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