Competitiveness of different sugarcane industries in an era of low sugar prices

A surplus in global production over consumption in 2017-18, initially projected at 10 mn t of sugar mainly from boosted production in India, Thailand, European Union and other countries, resulted in a 10-year low price of sugar in August 2018. Due to the low price environment seen in 2017-18, even the most efficient sugar producing countries such as Brazil had production cost higher than the world market price. It was opportune to study the competitiveness of different sugarcane industries in Southern, Eastern, Central and Western Africa in comparison with large producers such as Brazil, India, Thailand and Australia. Parameters measured included the general situation of each industry, the production of cane (area cultivated, yield, productivity, cane quality, harvest and control, performance of small producers, price of cane and research, development and extension), milling of cane (number of factories, sugar production, milling efficiency, price of sugar locally and internationally) and diversification (biofuel, electricity cogeneration and others). The technical performance indicators usually used by sugar analysts across the world were used to compare the technical efficiency of the industries concerned in relation to their regional and world competitors. National policies implemented in each country were analysed. Explicit lessons were drawn from the complexity and diversity of sugar policy applied to industries around the globe. Armed with these lessons, stakeholders should be able to develop a reformed policy tool box for the sugar industry that will allow it to achieve the required efficiency at all levels.


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Language: English

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