Sugar output looking flat for 2014-15

Sugar output looking flat for 2014-15

Despite rising cane production, Thailand, the world second-biggest sugar exporter, can expect flat growth in 2014-15 sugar production due to lower yields, says the Thai Sugar Millers Corporation (TSMC).

Chairman Sirivuth Siamphakdee said the 2014-15 crushing season, which started last November and is about to end, would see an estimated 106 million tonnes of sugar cane crushed and processed into raw and white sugar.

Sugar-cane production this season has surpassed the usual 100 million tonnes, but sugar production is unlikely to grow in line with rising cane production because of lower yields, Mr Sirivuth said.

The TSMC expects Thailand to produce 11.3 million tonnes of sugar this year, on a par with last year's production.

Mr Sirivuth blamed lower yields of commercial cane sugar (CCS) for this year's flat growth.

CCS is a measure of sugar content in sugar cane. The more CCS, the greater the sweetness and the more sugar recovered.

The CCS level of the current crop stands at 12.23, slightly below the 12.56 reading from the 2013-14 crop.

"Since several parts of Thailand were hit by severe dry weather that destroyed sugar content in the cane, we have to bear higher production costs as we make less sugar with more sugar cane," Mr Sirivuth said.

The government has set aside 2.4 million tonnes of sugar for domestic consumption, with the rest for export.

Thailand's 2014 sugar exports reached a record 7.3 million tonnes, up from 6.6 million in 2013. Only Brazil exports more.

Facing poor sugar yields, the TSMC plans a workshop to help boost the next crop and increase competitiveness in the global market.

The workshop will feature Australian experts and analysts offering pointers on how to grow more sugar cane with higher sugar yields.

Australia, whose sugar industry is mostly mechanised and well managed, gets greater sugar production from a smaller crop relative to Thailand.

"Thai sugar millers have been improving their crushing capacity for many years, but this workshop will help to enhance our knowledge and technique to increase production substantially," Mr Sirivuth said.

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