Bridging technology and new trends of Vietnam's sugar industry | Entrepreneur | Finance

According to the Vietnam Sugarcane and Sugar Association (VSSA), the Vietnamese sugar industry completed the 2023/2024 sugarcane crushing season in June 2024. The crop ended with 11,204,789 tons of sugarcane being crushed, producing 1,107,777 tons of various types of sugar.

Compared to the 2022/2023 sugarcane crushing crop, the sugarcane crushing yield reached 117.9% and the sugar yield reached 118.4%. Compared to the 2020/2021 sugarcane crushing crop, in 4 consecutive crops, the sugarcane crushing yield increased by 166% and the sugar yield increased by 161%.

This shows that since Vietnam applied trade defense measures from 2021, the Vietnamese sugar industry has recorded a significant revival and growth, with the sugarcane purchase price continuously raised by the Vietnamese sugar industry for 5 consecutive crops (an increase of 152% compared to the 2019/20 crop), currently reaching 1.2 - 1.3 million VND/ton of sugarcane, which is equivalent to that of sugarcane producing countries in the region, leading to an increase in sugarcane planting area, sugarcane and sugar output increasing continuously over the last 4 production crops.

Regarding sugar productivity, with growth in 4 consecutive crops, for the first time the Vietnamese sugar industry reached the sugar productivity milestone of 6.79 tons of sugar/ha. Compared with the main sugar producing countries in the region including Thailand, Indonesia, and the Philippines, the above achievement has for the first time put the Vietnamese sugar industry in the number 1 position in sugar productivity in the region.

In the 2023/2024 crop year, the world raw sugar price peaked in November 2023 at 28 USD cents/lb and then steadily declined to the current 19 USD cents/lb (down 47%). The decline in the international sugar market has reduced the price of smuggled sugar, negatively affecting the domestic sugar market.

Under the pressure of imported HFCS corn syrup and smuggled sugar, the sugar market is always in a state of oversupply, sugar produced from sugarcane is difficult to consume, threatening the existence of the sugarcane - sugar chain.

The price movement of Vietnamese sugar compared to neighboring countries in the 2023/24 crop year also shows that Vietnamese sugar prices are always at the lowest level. Thus, in the 2023/24 crushing season, the Vietnamese sugar industry has achieved the dual goal of raising sugarcane purchase prices to levels equivalent to or higher than those of countries in the region while still keeping sugar prices at the lowest level.

The 2024/2025 crop year is expected to be a challenging year for the Vietnamese sugar industry as it has to deal with the La Nina phenomenon expected to begin to have an impact during the crop year, rising prices of agricultural materials, the situation of smuggled sugar and trade fraud of smuggled sugar, the situation of evasion of trade defense measures and a narrowing sugar market due to increased imports of HFCS corn syrup.

In the 2024/2025 processing season, it is expected that there will be 25 sugar factories in operation, equal to the number of factories operating in the 2023/2024 season, with a total designed capacity of 124,000 tons of sugarcane/day. According to the reports of the sugar factories expected to remain in operation, the production plan for the 2024/2025 season will have growth compared to the 2023/2024 season as follows: Harvested sugarcane area increases by 107%; Processed sugarcane output increases by 105%; Sugar output increases by 105%.

SugarEx Vietnam 2024 - SugarEx Vietnam 2024 Organizer: Fireworks Trade Media - Under Fireworks Trade Media Group. Time: September 25-26, 2024 (9:00 - 17:00). Venue: The ADORA Center, 431 Hoang Van Thu, Ward 4, Tan Binh District, Ho Chi Minh City

Please see details at website: www.sugarvietexpo.com.

Source: https://diaoc.nld.com.vn/cau-noi-cong-nghe-va-xu-huong-moi-cua-nganh-mia-duong-viet-nam-196240925202338481.htm