CCM: Guangxi officially initiate 2nd business start-up programme for local sugar industry 03-30-2016

In early March, 2016, Guangxi officially launched the 2nd business start-up project for the local sugar industry. It is expected that, after 5-year development, the industry will achieve transformation and upgrading, involving sugarcane planting, sugar making process, enterprise scale and sustainable development.


 

Source: Bing


From 29 Feb. to 1 March, 2016, the Guangxi Sugar Industry Development Meeting, also the High Quality, High Yield and High Sugar Content Sugarcane Base Construction Meeting was held in Wuxuan County, Guangxi Zhuang Autonomous Region. This signalled that the 2nd business start-up programme for the local sugar industry has been officially initiated. Accordingly, the status quo of the local sugar industry was analysed and the detailed implementation proposals were made for each government department involved during the meeting.


Specifically, attention is paid to:

  • Sugarcane planting: to construct in total 333,333 ha (5 million mu) high-output and high-sugar-content sugarcane planting base (dual-high sugarcane planting base), to ensure 90 t/ha (6 t/mu) yield on average, and 14%+ sugar content
  • Two-step method promotion: to particularly promote this method (sugarcane – raw sugar – refined sugar) in advantaged areas, such as Nanning, Congzuo, Laibin, Liuzhou, Baise and Hechi cities
  • Sugar company reorganisation: to specially support top 8 sugar makers in the region and other sugar makers that make full-year sales of >USD1.53 billion (RMB10 billion) from domestic and overseas businesses, to reorganise local sugar companies and expand their own production scales
  • Sugar industry cyclic economy: to explore high value-added products including furfural, xylose, xylitol and L(+)-arabinose


*Regarding the goals set in Guangxi’s sugar industry in the 2nd business start-up, please see Guangxi government issues proposal for 2nd business start-up in sugar industry in Sweeteners China News 1601.

 

Guangxi Zhuang Autonomous Region to Promote the Sugar Industry to Start 2nd Business Start-up, 2015-2020

Development planning

Stage 1 (2015)

To hold press conference to give publicity to the overall goals, policies and measures for the 2nd business start-up programme

Stage 2 (2016-2018)

To make staged achievements:

1. Construction of 70%+ of the dual-high sugarcane planting base

2. Practical progress in enterprise reorganisation – concentration ratio of top 8 sugar makers to hit 85%+

3. Enterprises adapted to the dual-high sugarcane planting base to finish 80%+ of technological reconstruction

4. Wide application of sugar industry big data service platform in agricultural, industrial and commercial fields

5. Establishment and operation of a futures company

6. Reform in sugar industry management system by the end of 2016

7. Investigation and draft for the Guangxi Zhuang Autonomous Region Sugar Industry Management Regulations by 2017 and in H1 2018, implementation of the regulation

8. Improvement of temporary storage mechanism

9. Establishment and operation of the government sugar industry investment and guiding fund   

Stage 3 (2018-2020)

To achieve *goals basically

Note: *Goals set in Guangxi’s sugar industry in the 2nd business start-up, please see Guangxi government issues proposal for 2nd business start-up in sugar industry in Sweeteners China News 1601.
Source: The People’s Government of Guangxi Zhuang Autonomous Region


 


The 2nd business start-up in Guangxi’s sugar industry is of great significance to the industry transformation and upgrading. Now the setbacks in the local sugar industry are high production costs, low sugar making process, small production scale and short industry chain. Targeted at these problems, development planning has been made.


- High production costs. This is mainly caused by raw material. During 2011-2015 (12th Five-year Plan), the purchase price of sugarcane in Guangxi was up to USD76/t (RMB500/t). On the contrary, Brazil, as the largest sugar producer country, purchased sugarcane at around USD38/t (RMB250/t), half of Guangxi’s. This is mainly because Guangxi shows small yield of sugarcane and low sugar content.

  • Guangxi: 60 t/ha; about 12%
  • Brazil: 150 t/ha; about 17%


- Low sugar making process. Now the two-step method (sugarcane – raw sugar – refined sugar) is playing a dominant role in the world’s sugar industry. However, Guangxi adopts one-step method (sugarcane – sugar) mainly. Accordingly, refined sugar can be kept for 3-5 years, with no changes in colour and no deterioration in quality, whilst the sugar produced in Guangxi (based on the method of sulphurous acid), containing vulcanised substances, can be kept only 1 and even 0.5 year, and then will turn yellow and even go bad.


- Small scale and short supply chain. In Guangxi, there are 30 sugar companies in total. The top 8 sugar makers (based on daily extracting capacity) are combined to boast about 485,000 t/d extracting capacity, only around 70% of the regional figure. In addition, the number of sugar makers with <5,000 t/d exceeds 45, over 40% of the total. Meanwhile, the supply chain is centred in sugar making, along with paper making based on bagasse and alcohol production based on molasses, however very rare in utilising filter mud.



About CCM:

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 Tag: sugar




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