Under the current system ethanol production incurs more loss
cost than starch production because it is associated with several
conversion processes. Therefore, a number of technologies and
innovations are required to reduce loss and increase productivity in
ethanol production. Although innovation for productivity
improvement could have high investment cost, the loss cost that
can be reduced can make it more cost effective.
Ethanol production from cassava pulp can also play an important
role in helping meet the AEDP target and utilizing by-product
from starch processing, increasing its value and offsetting loss cost
from the starch production plant. This option can aid the reduction
of cassava feedstock amount required for producing ethanol for
AEDP target. Therefore, the yield improvement option can satisfy
feedstock requirement without the need for plantation land
expansion. MFCA allocates the cost to both negative product cost
(material loss cost) and positive product cost (product that can be
sold) in order to indicate the loss in economic value. Loss cost and
possible loss cost reduction recognized by applying MFCA can be
advantageous information for decision maker in government and
private sectors to justify the cost effectiveness of their subsidies.
Additionally, it allows them to consider and take into account to
invest in implementing the technologies to reduce loss and increase
productivity or recover by-products to meet the target. Thus,
more research funding and investment from the government in
these technologies should be encouraged and more detailed technology
assessment should be conducted.
Nevertheless, there are some limitations and cautions to
applying the MFCA method to materials that contain water and are
associated with a large amount of water for processing. Allocation
on wet mass basis may lead to misunderstanding of the results.
Therefore, if there is detailed data available, mass allocation on a
dry basis should be applied. However, if mass allocation on a wet
basis was used, precautionary principle should be kept in mind
when applying improved measures (e.g. improvement in water
issue) in order to avoid other main material loss (e.g. starch loss)
and avoid reduction of the yield and/or quality of the product.
Under the current system ethanol production incurs more losscost than starch production because it is associated with severalconversion processes. Therefore, a number of technologies andinnovations are required to reduce loss and increase productivity inethanol production. Although innovation for productivityimprovement could have high investment cost, the loss cost thatcan be reduced can make it more cost effective.Ethanol production from cassava pulp can also play an importantrole in helping meet the AEDP target and utilizing by-productfrom starch processing, increasing its value and offsetting loss costfrom the starch production plant. This option can aid the reductionof cassava feedstock amount required for producing ethanol forAEDP target. Therefore, the yield improvement option can satisfyfeedstock requirement without the need for plantation landexpansion. MFCA allocates the cost to both negative product cost(material loss cost) and positive product cost (product that can besold) in order to indicate the loss in economic value. Loss cost andpossible loss cost reduction recognized by applying MFCA can beadvantageous information for decision maker in government andprivate sectors to justify the cost effectiveness of their subsidies.Additionally, it allows them to consider and take into account toinvest in implementing the technologies to reduce loss and increaseproductivity or recover by-products to meet the target. Thus,more research funding and investment from the government inthese technologies should be encouraged and more detailed technologyassessment should be conducted.Nevertheless, there are some limitations and cautions toapplying the MFCA method to materials that contain water and areassociated with a large amount of water for processing. Allocationon wet mass basis may lead to misunderstanding of the results.Therefore, if there is detailed data available, mass allocation on adry basis should be applied. However, if mass allocation on a wetbasis was used, precautionary principle should be kept in mindwhen applying improved measures (e.g. improvement in waterissue) in order to avoid other main material loss (e.g. starch loss)and avoid reduction of the yield and/or quality of the product.
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