Quote from chief_editor on October 10, 2023, 9:01 am
Sugarcane farming by hand is becoming more prevalent as government regulations penalise burning. Photo: Wanpen Pajai
Thailand, a pivotal player in the global sugar market, has long been known for its sugar production prowess. Currently, as the world's fourth-largest sugar cane producer and second-largest sugar exporter after Brazil, Thailand remains crucial in shaping global sugar industry trends. However, global competition and fluctuating market dynamics necessitate an in-depth review of the nation's strategies to maintain its leadership position.
Global Sugar Landscape
While Brazil dominantly holds the crown as the top sugar producer, with a staggering 700 million tons annually, Thailand is not far behind in its competitiveness. Last year, Thailand produced 135 million tons, ranking third globally, surpassed only by India's production of over 300 million tons. What’s notable is Brazil's dual-purpose use of its sugar cane: half goes to sugar, and the other half is utilized for ethanol production. Consequently, even though Brazil grows an impressive amount of sugar cane, its net sugar production is considerably lower.
Thailand's export figures paint an optimistic picture. Out of the 14 million tons produced last year, a massive 11.5 million tons found its way to international markets, predominantly within Asia. This makes Thailand the region's top sugar exporter, even outperforming Australia, which exports 3 out of its 4 million tons produced.
The Crux of Competitive Pricing
Dr. Pipat Weerathaworn, an esteemed expert with deep insights into Thailand's sugar industry, underscores the significance of competitive pricing. Thailand's production cost sits between 0.13-0.15 US Dollar per pound, while the global market rate is a slightly lower 0.11 US Dollars. To retain an edge in the market, Dr. Pipat emphasizes enhancing production efficiency to reduce local costs below the global price.
Moreover, factors like sugar cane yield per hectare, sugar content, and extraction rates in sugar factories impact Thailand's cost structure. Compared to competitors like Brazil and Australia, Thailand's efficiency metrics in these areas offer room for improvement.
The Need for Knowledge Transfer and Technological Advancements
One major challenge is the gap between optimal and actual farming practices. While certain strains of sugar cane can yield 15-20 tons per hectare in experimental settings, real-world results are lower due to factors such as weather conditions, soil management, and perhaps most importantly, knowledge transfer to farmers.
There are areas in the harvesting process that offer immediate opportunities for gains. Simple changes, like cutting closer to the base of the sugar cane, can prevent wastage and boost sugar content, given that this section of the cane is the sweetest.
Additionally, adopting modern farming equipment and practices, such as mechanized harvesters and improved storage solutions, can further improve yield and quality. These changes, coupled with aggressive public awareness campaigns against detrimental practices like field burning, can usher in immediate benefits.
Towards a Bioeconomy: Diversifying Sugar's Potential
Dr. Pipat, echoing a vision shared by many industry experts, underscores the importance of diversifying the uses of sugar cane. Given that 70% of the revenue from sugar sales goes to the farmers, any decline in global sugar prices can have a drastic impact on their incomes.
The Bioeconomy campaign by the government is a step in this direction. By transforming sugar into value-added products such as bioplastics or biochemicals, the revenue per ton can significantly increase. Such diversification, while ensuring sustainable practices, can ensure the longevity and profitability of Thailand's sugar industry.
In Conclusion
While Thailand's sugar industry has enjoyed considerable success in the past, the evolving global landscape demands introspection and innovation. Through a blend of technological advancements, knowledge transfer, and product diversification, Thailand can fortify its position as a global sugar powerhouse.
Sugarcane farming by hand is becoming more prevalent as government regulations penalise burning. Photo: Wanpen Pajai
Thailand, a pivotal player in the global sugar market, has long been known for its sugar production prowess. Currently, as the world's fourth-largest sugar cane producer and second-largest sugar exporter after Brazil, Thailand remains crucial in shaping global sugar industry trends. However, global competition and fluctuating market dynamics necessitate an in-depth review of the nation's strategies to maintain its leadership position.
Global Sugar Landscape
While Brazil dominantly holds the crown as the top sugar producer, with a staggering 700 million tons annually, Thailand is not far behind in its competitiveness. Last year, Thailand produced 135 million tons, ranking third globally, surpassed only by India's production of over 300 million tons. What’s notable is Brazil's dual-purpose use of its sugar cane: half goes to sugar, and the other half is utilized for ethanol production. Consequently, even though Brazil grows an impressive amount of sugar cane, its net sugar production is considerably lower.
Thailand's export figures paint an optimistic picture. Out of the 14 million tons produced last year, a massive 11.5 million tons found its way to international markets, predominantly within Asia. This makes Thailand the region's top sugar exporter, even outperforming Australia, which exports 3 out of its 4 million tons produced.
The Crux of Competitive Pricing
Dr. Pipat Weerathaworn, an esteemed expert with deep insights into Thailand's sugar industry, underscores the significance of competitive pricing. Thailand's production cost sits between 0.13-0.15 US Dollar per pound, while the global market rate is a slightly lower 0.11 US Dollars. To retain an edge in the market, Dr. Pipat emphasizes enhancing production efficiency to reduce local costs below the global price.
Moreover, factors like sugar cane yield per hectare, sugar content, and extraction rates in sugar factories impact Thailand's cost structure. Compared to competitors like Brazil and Australia, Thailand's efficiency metrics in these areas offer room for improvement.
The Need for Knowledge Transfer and Technological Advancements
One major challenge is the gap between optimal and actual farming practices. While certain strains of sugar cane can yield 15-20 tons per hectare in experimental settings, real-world results are lower due to factors such as weather conditions, soil management, and perhaps most importantly, knowledge transfer to farmers.
There are areas in the harvesting process that offer immediate opportunities for gains. Simple changes, like cutting closer to the base of the sugar cane, can prevent wastage and boost sugar content, given that this section of the cane is the sweetest.
Additionally, adopting modern farming equipment and practices, such as mechanized harvesters and improved storage solutions, can further improve yield and quality. These changes, coupled with aggressive public awareness campaigns against detrimental practices like field burning, can usher in immediate benefits.
Towards a Bioeconomy: Diversifying Sugar's Potential
Dr. Pipat, echoing a vision shared by many industry experts, underscores the importance of diversifying the uses of sugar cane. Given that 70% of the revenue from sugar sales goes to the farmers, any decline in global sugar prices can have a drastic impact on their incomes.
The Bioeconomy campaign by the government is a step in this direction. By transforming sugar into value-added products such as bioplastics or biochemicals, the revenue per ton can significantly increase. Such diversification, while ensuring sustainable practices, can ensure the longevity and profitability of Thailand's sugar industry.
In Conclusion
While Thailand's sugar industry has enjoyed considerable success in the past, the evolving global landscape demands introspection and innovation. Through a blend of technological advancements, knowledge transfer, and product diversification, Thailand can fortify its position as a global sugar powerhouse.
