innovation and changes of the southeast asian sugar industry · innovation and changes of the...

Innovation and Changes of the Southeast Asian Sugar Industry

Dr. Pipat Weerathaworn

Committee of Thailand Society of Sugarcane Technologists (TSSCT)National Research Council of Thailand (NRCT)

The Agrifuture Conference and Exhibition 2019 ASIAThe True Digital Park, Bangkok Thailand

2 - 3 December 2019

Content of the Presentation

• Global Sugar Production and Consumption

• 10 Largest Sugar Exporters and Importers

• The Challenges in SEA Sugar Industry

(Innovation & Changes & Sustainability)

• Conclusion

Dr. Pipat WEERATHAWORN

World sugar production, supply, and distribution

World 2014/15 2015/16 2016/17 2017/18 2018/19

Beginning Stocks 44,818 48,771 44,094 41,978 49,524

Total Sugar Production 177,582 164,888 173,980 191,813 188,251

Total Imports 50,248 54,720 54,170 53,702 52,517

Total Supply 272,648 268,379 272,244 287,493 290,292

Total Exports 55,013 53,955 58,719 63,083 62,802

Total Use 168,864 170,330 171,547 174,886 178,335

Ending Stocks 48,771 44,094 41,978 49,524 49,155

(1,000 metric tons, raw value)Source: USDA, Foreign Agricultural Service; Production, Supply, and Distribution database. Updated: 6/19/2018.Dr. Pipat WEERATHAWORN

10 LARGEST SUGAR PRODUCERS(in mln metric tonnes, tel quel)

1 India 33.302 Brazil 29.293 EU-28 18.184 Thailand 15.445 China 10.716 USA 7.837 Pakistan 6.288 Russian Fed. 6.189 Mexico 5.92

10 Australia 4.64

https://www.isosugar.org/sugarsector/sugar as of Nov.20, 2019Dr. Pipat WEERATHAWORN

SEA sugar production, supply, and distribution

Total Southeast Asia 2014/15 2015/16 2016/17 2017/18 2018/19

Beginning Stocks 8,465 8,230 8,574 9,655 11,235

Total Sugar Production 17,238 15,973 16,963 20,570 21,060

Total Imports 6,445 7,819 8,635 8,222 8,080

Total Supply 32,148 32,022 34,172 38,447 40,375

Total Exports 8,748 7,654 7,633 10,055 11,548

Total Use 15,170 15,794 16,884 17,157 17,392

Ending Stocks 8,230 8,574 9,655 11,235 11,435

(1,000 metric tons, raw value)Source: USDA, Foreign Agricultural Service; Production, Supply, and Distribution database. Updated: 6/19/2018.Dr. Pipat WEERATHAWORN






• Conclusion


10 LARGEST NET-EXPORTERS (in mln metric tonnes, tel quel)

1 Brazil 21.262 Thailand 11.043 Australia 3.094 Guatemala 1.635 EU-28 1.616 Mexico 1.587 Pakistan 1.158 India 0.889 Colombia 0.64

10 Ukraine 0.58


Cane & Sugar Growth

• Between 2001 and 2018, world sugarconsumption increased from 123.454 mlntonnes to 172.441 mln tonnes, theequivalent to an average annual growth of2.01%.


10 LARGEST NET-IMPORTERS (in mln metric tonnes, tel quel)

https://www.isosugar.org/sugarsector/sugar as of Nov.20, 2019* http://www.worldstopexports.com/sugar-exports-country/ as of Nov. 21, 2019

1 Indonesia 5.23

2 China 5.06

3 USA 2.37

4 Malaysia 1.95

5 Bangladesh 1.9

6 Algeria 1.77

7 Korea, Rep. of 1.61

8 Saudi Arabia 1.31

9 Egypt, Arab R. 1.29

10 Canada 1.23

$1.0-1.8 billion*

$0.5-0.7 billion *


Cane & Sugar Growth

The drivers influence sugar demand are

• population and economic growth in Asia

• increased capita incomes

Challengeshttps://www.isosugar.org/sugarsector/sugar as of Nov.20, 2019







• Conclusion


The Challenges in SEA Sugar



Modified by Dr. Pipat WEERATHAWORN



Major Challenges

• Low cane/sugar yield

• High production cost

• Labor shortage leading to mechanization

InnovationDr. Pipat WEERATHAWORN

Land preparation and Planting


Technology and Mechanization


Harvesting and Transportation


Trash incorp.

Supplement. irr

Increased yield 21 T/ha Net profit 900 US$/ha

Increased yield 16 T/ha Net profit 700 US$/ha

Key success Profits


Cane & Sugar Growth

• However, the second half of the current decadehas seen a considerable deceleration in worldsugar consumption growth to less than 0.84%per annum (average for 2016-2018), while nogrowth has been for 2018.


Cane & Sugar Growth

The drivers influence on demand are

• health concern debate.

• the price of sugar VS alternative sweeteners

Changes

Self Sufficiency & Sustainability


World Sugar Price 2015 -2019

~50%

https://th.investing.com/commodities/us-sugar-no11 as of Aug 27, 2019Dr. Pipat WEERATHAWORN

Bio-products from Cane and Sugar

Bioenergy Bio-Plastics

Bio-Chemicals

Food additives Animal feeding Bio-medicals


Self Sufficiency & Sustainability

• Sugar diversification

• Zero-waste

• Creation - high value products

Create value chain in Bio-economy


Biochemicals

Biopharma Biocosmetics

Biofuels

Ethanol FAME

Biochemicals

Fatty Acid

Fatty Alcohol Animal FEED

Lysine

Bioplastics

PBS PLA Succinic Acid Lactic AcidBDO

Future Potential

Choline Chloride

FOOD

Sweetener

Cooking Oil

Food additives

Ethanol

Surfactant

Commercial Stage

High Potential

Raw Materials

Sugarcane

Cassava

Palm Oil

Process

Potential Bio-based Products for Thailand

Produce from cassava/cane Produce from palm oil

Potential Bio-based Products







• Conclusion


Conclusion in Agriculture & Agro Industry

• Improve productivity & cost through R&D/innovation

– Focus both on cane and sugar processing

– Manage supply chain (+Logistic)

• Produce and Utilize more than primary products (Value addition)

• Initiate collaboration in Asian Sugar industries and other potential partners

Reduce cost


Innovation & Changes & Sustainability


Remarks in SEA Sugar Industry

• Many small farmers

• High Investment cost

Challenges

• Accessibility

• Affordability

• Profitability

Pipat WEERATHAWORN

E-mail: [email protected]: +66 (0) 81 - 819 8654


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