Global Sugar Prices Expected to Surge

Diep Nguyen

11:26 18/06/2019

BizLIVE -

After having surplus in the previous season, the global suger market will turn to have deficit in the 2019-2020 season because many producing countries scale down production, thus the sugar prices are expected to surge.

Global Sugar Prices Expected to Surge
Sugar cane prices are expected to rise sharply in the 2019-2020 season, this prediction was given in the 4th Meeting of ASEAN Sugar Alliance in Ho Chi Minh City recently. 
Le Xuan Trung, general secretary of the Việt Nam Sugar and Sugarcane Association stressed that although the sugarcane companies and farmers have made great efforts to improve the competitiveness, however, when the trend of protectionism and subsidy surged, the sugar cane industry in Vietnam will have to face to a lot of difficulties. 
The business environment of sugarcane companies in Vietnam will be tougher especially when the ASEAN Trade in Goods Agreement (ATIGA) comes into effects from the beginning of 2020.
President of Thai Sugar Millers, Pramode Vidtayasuk, predicted that in the sugarcane season of 2019-2020, the total production of Thailand can come out at 119 million tons of sugar canes, an increase of 3 percent year-on-year. 
The sugar production is estimated at 13 million tons, lower than the 2018-2019 season because of climate changes. In total, the general production scale of Thailand will be 20 percent smaller. 
Thailand is going to have about 57 millers in the 2019-2020 season, higher than the number of 56 millers of the 2018-2019 season, thus the productivity will become higher as well. 
After having surplus in the previous season, the global suger market will turn to have deficit in the 2019-2020 season because many producing countries scale down production, thus the sugar prices are expected to surge. 
This will bring in good business chances for many companies including TTC Sugar, the company that holds quite big market share and has strong ambitions for expanding internationally.
Đặng Văn Thành, chairman of Thanh Thanh Cong Group (TTC), said that some factories in Vietnam and Laos are starting to produce organic sugar. TTC Sugar has the plan to move the material supply areas to Laos, Cambodia to pave the way for governing the South East Asian market and to avoid the shortage of supply in the Vietnamese market currently.
The ASEAN Sugar Alliance, established in 2016, is a platform for sugar industries in the region to exchange views and co-operate in areas of mutual interest, fostering the development of the industry and make it more competitive globally to meet the surging demand for sugar in the region. ASEAN Sugar Alliance represents for the sugarcane companies in ASEAN countries like Philippines, Indonesia, Malaysia, Myanmar, Laos, Cambodia and Vietnam. 

DIEP NGUYEN

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