In this report, we will strive to explore objectively the sugar supply and demand, government regulation and control and sugar price trend in the new season, systematically summarize the macro-control, production, sale, import and export situation of China’s sugar market in 2009/10 press season, focusing on exploring and discussing all aspects that impacted the sugar market in the new season and striving to objectively and accurately provide reference for China’s sugar industry participants and representatives to make investment decision. Background
In the 2008/09 press season, the sugar market is in a big reversal. The main reason is the main producing areas have a substantial decrease in sugar production. The state purchasing and storage, production fell, the government macroeconomic regulation and control and so on have brought greater volatility to sugar prices.
In the new press season beginning from Oct. 2008, there are several events that influence market trends:
The Yield
Under the impact of last year’s frozen disaster and sugarcane farmers’ declining input in sugarcane, sugar cane production has dropped significantly. Beet sugar production in the north and cane sugar production in the south appear to increasingly decline, particularly the main producing area Guangxi’s sugar production fell by 1.8 million tons, which created a foundation for sugar market recovery.
Consumption
Sugar consumption in 2008/09 press season is almost the same as the last season, about 13 million tons. Through analysis, this is mainly due to the impact of the economic crisis and sharp price rise in post-phase led to the use of other alternatives, replacing part of the sugar share.
Imports and Exports
The impact of international sugar shortage in the new press season made international sugar price sharply increase and China’s imported sugar prices continued to rise. The import volume of the post-phase gradually declined. The full-year import volume had greater year-on-year increases.
Policy Orientation
The government launched early this year the acquisition policy of 800,000 tons of sugar purchasing and storage, making a slight reduction of sugar supply. How the government will deal with purchasing and storage of sugar and how to control the sugar market in the new press season is also the focus of our attention.
In this report, we will strive to explore objectively the sugar supply and demand, government regulation and control and sugar price trend in the new season, systematically summarize the macro-control, production, sale, import and export situation of China’s sugar market in 2009/10 press season, focusing on exploring and discussing all aspects that impacted the sugar market in the new season and striving to objectively and accurately provide reference for China’s sugar industry participants and representatives to make investment decision.
Food Ingredient Industry in China
Table of Contents
Background I
Chapter 1 Policy Environment of Sugar Manufacturing Industry 1
1.1 Government Supporting Policy to Sugar Manufacturing Industry 1
1.2 Development Plan of Sugar Manufacturing Industry 1
1.3 Policy on Entry into Sugar Manufacturing Industry 2
1.4 Policy on Sugar Procurement for Reserve 2
1.5 Procurement of Sugar Crops and Pricing Policy 2
1.6 Environmental Protection Policy of Sugar Manufacturing Industry 3
1.7 Policy on Sugar Import and Export 4
1.8 Policy on Sugar Substitutes 4
Chapter 2 Production of Sugar Crops and Trend 6
2.1 Sugarcane Production 6
2.1.1 Sugarcane Acreage 6
2.1.2 Regional Layout of Sugarcane Planting 6
2.1.3 Sugarcane Output 6
2.2 Sugar Beet Production 7
2.2.1 Sugar Beet Acreage 7
2.2.2 Regional Layout of Sugar Beet Planting 8
2.2.3 Sugar Beet Output 8
2.3 Sugarcane Production by Province 9
2.3.1 Sugarcane Acreage by Province 9
2.3.2 Sugarcane Yield by Province 9
2.3.3 Sugarcane Output by Province 10
2.3.4 Sugarcane Varieties Planted by Different Provinces 10
2.3.5 Area of Arable Land of Main Sugarcane Producing Provinces 13
2.4 Sugar Beet Production by Province 13
2.4.1 Sugar Beet Acreage by Province 13
2.4.2 Sugar Beet Yield by Province 14
2.4.3 Sugar Beet Output by Province 14
2.4.4 Sugar Beet Varieties Planted by Different Provinces 14
2.4.5 Area of Arable Land of Main Sugar Beet Producing Provinces 15
2.4.6 Sugarcane Procurement Price in Main Producing Provinces 16
2.4.7 Sugar Beet Procurement Price of Main Producing Provinces 16
Chapter 3 Sugar Production and Relevant Technical and Economic Indices 17
3.1 Sugar Production 17
3.1.1 Gross Sugar Production and Trend from 99/00-09/10 17
3.1.2 Sugar Production by Province from 99/00-09/10 17
3.2 Layout and Capacity of Sugar Crushing Plants 18
3.2.1 Quantity of Sugar Crushing Plants by Province 18
3.2.2 Daily Capacity of Sugar Crushing Plants by Province 19
3.3 Other Technical and Economic Indices of Sugar Crushing Plants 19
3.3.1 Production Cost of Sugar by Province 19
3.3.2 Mixed Sugar Yield by Province 21
3.4 Status of Sugar Refinery Plants 22
3.4.1 Layout of Refinery Plants 22
3.4.2 Capacity of Refinery Plants and Sugar Output in Late Years 22
Chapter 4 Sugar Consumption and Prospect 24
4.1 Gross Sugar Consumption and Trend 24
4.1.1 Gross Consumption and Forecast 24
4.1.2 Per Capita Sugar Consumption 25
4.2 Sugar Consumption by Food Processing Industry from 2000-2009 25
4.2.1 Monthly Aggregate Output of Carbonated Drinks and Sugar Consumption from 2006-2009 25
4.2.2 Monthly Aggregate Output of Fruit Juices/drinks and Sugar Consumption from 2006-2009 26
4.2.3 Monthly Aggregate Output of Dairy Products and Sugar Consumption from 2006-2009 27
4.2.4 Monthly Aggregate Output of Canned Food and Sugar Consumption from 2006-2009 27
4.2.5 Monthly Aggregate Output of Biscuits and Sugar Consumption from 2006-2009 28
4.2.6 Monthly Aggregate Output of Confectionary and Sugar Consumption from 2006-2009 28
4.2.7 Monthly Aggregate Output of Pastry and Sugar Consumption from 2006-2009 29
4.2.8 Monthly Aggregate Output of Fast-frozen Staple Food and Sugar Consumption from 2006-2009 29
4.2.9 Monthly Aggregate Output of Frozen Beverage and Sugar Consumption from 2006-2009 30
4.2.10 Sugar Consumption by Main Processing Companies in 2008 30
4.2.11 Sugar Consumption by Food Processing Industry 33
4.3 Sugar Consumption by Residents 34
4.3.1 Consumption by Residents of Different Provinces from 2000-2009 34
4.3.2 Forecast on Sugar Consumption by Residents 35
Chapter 5 Sugar Trade 36
5.1 Import 36
5.1.1 Sugar Import Volume and Trend from 2000-2009 36
5.1.2 Import of Granulated Sugar by Origin from 2000-2009 36
5.1.3 Raw Sugar Import by Origin from 2000-2009 38
5.2 Sugar Import by Company from 2002-2009 39
5.2.1 Import of Granulated Sugar by Company from 2002-2009 39
5.2.2 Raw Sugar Import by Company from 2002-2009 42
5.3 Sugar Import by Port from 2001-2008 43
5.3.1 Proportion of Sugar Import by Port in Total from 2001-2008 43
5.4 Export 44
5.4.1 Sugar Export and Trend from 2000-2009 44
5.4.2 Raw Sugar Export by Destination from 2000-2009 45
5.4.3 Export of Granulated Sugar by Destination from 2000-2009 46
5.4.4 Net Import of Sugar and Trend from 2000-2009 47
Chapter 6 Production, Consumption and Trend of Sugar Substitutes in China 49
6.1 Output and Trend of Starch Sugar from 1998-2010 49
6.1.1 Output of Starch Sugar and Sugar Equivalent from 1998-2010 49
6.1.2 Starch Sugar Consumption and Outlook from 1998-2010 50
6.2 Production and Consumption of Saccharin from 1998-2010 51
6.2.1 Saccharin Production from 1998-2010 51
6.3 Other Sugar Substitutes 52
6.3.1 Output of Other Sugar Substitutes and Forecast from 2000-2010 52
Chapter 7 Sugar Price 54
7.1 Domestic Price 54
7.1.1 Monthly Wholesale Price of White Granulated Sugar in Main Producing Regions from 1998-2009 54
7.1.2 Monthly Wholesale Price of White Granulated Sugar in Main Consuming Regions from 1998-2009 56
7.1.3 Monthly CIF Price of Imported Granulated Sugar from 2006-2009 58
7.1.4 Monthly CIF Price of Imported Raw Sugar from 2006-2009 59
7.2 International Price 59
7.2.1 Futures Price of New York 11 Raw Sugar from 2000-2009 59
7.2.2 Comparison of Domestic Sugar Price with Importation Price 62
7.3 Balance Table of Sugar Supply and Demand in 09/10 62
Chapter 8 Competitiveness of the Industry 64
8.1 Producers 64
8.1.1 Profit Margin and Outlook 64
8.1.2 Production Cost and Profit 65
8.1.3 Production Capacity 65
8.1.4 Risk Resistance Ability 66
8.1.5 Competitiveness of Enterprises of Different Scales 66
8.1.6 Competitiveness of Enterprises of Different Techniques 67
8.2 Processing Companies 68
8.2.1 Import Profit Margin and Outlook 68
8.2.2 Risk Resistance Ability 68
8.2.3 Companies Processing Imported Sugar and Their Production 69
Chapter 9 Capacity of Top 15 Sugar Producers and Production of Their Companies 70
9.1 Yangpu Nanhua Sugar Group 70
9.1.1 Companies Subordinated to Yangpu Nanhua Sugar Group 70
9.1.2 Capacity and Sugar Output of Yangpu Nanhua Sugar Group 70
9.2 Nanning Sugar Co., Ltd. 71
9.2.1 Companies Subordinated to Nanning Sugar Co., Ltd. 71
9.2.2 Capacity and Sugar Output of Nanning Sugar Co., Ltd. 71
9.3 Guangxi East Asia Sugar Group 71
9.3.1 Companies Subordinated to Guangxi East Asia Sugar Group 71
9.3.2 Capacity and Sugar Output of Guangxi Nanning East Asia Sugar Group 72
9.4 Guangxi Farm Reclamation Group 72
9.4.1 Companies Subordinated to Guangxi Farm Reclamation Group 72
9.4.2 Capacity and Sugar Output of Guangxi Farm Reclamation Group 72
9.5 Guangxi Fengtang Biochemical Co., Ltd. 73
9.5.1 Guangxi Fengtang Biochemical Co., Ltd. 73
9.5.2 Capacity and Sugar Output of Guangxi Fengtang Biochemical Co., Ltd. 73
9.6 Botian Sugar Co., Ltd. 73
9.6.1 Companies Subordinated to Botian Sugar Co., Ltd. 73
9.6.2 Capacity and Sugar Output of Botian Sugar Co., Ltd. 73
9.7 Guangxi Yongxin Huatang Group 74
9.7.1 Companies Subordinated to Guangxi Yongxin Huatang Group 74
9.7.2 Capacity and Sugar Output of Guangxi Yongxin Huatang Group 74
9.8 Guangxi Dongtang Group 74
9.8.1 Companies Subordinated to Guangxi Dongtang Group 74
9.8.2 Capacity and Sugar Output of Guangxi Dongtang Group 74
9.9 Yingbo Sugar 75
9.9.1 Companies Subordinated to Yingbo Sugar 75
9.9.2 Capacity and Sugar Output of Yingbo Sugar 75
9.10 COFCO Xinjiang Tunhe Co., Ltd. 75
9.10.1 Companies Subordinated to COFCO Xinjiang Tunhe Co., Ltd. 75
9.10.2 Capacity and Sugar Output of COFCO Xinjiang Tunhe Co., Ltd. 75
9.11 Yunnan Yingmao Sugar Co., Ltd. 76
9.11.1 Companies Subordinated to Yunnan Yingbao Sugar Co., Ltd. 76
9.11.2 Capacity and Sugar Output of Yunnan Yingmao Sugar Co., Ltd. 76
9.12 Monopoly Is Taking Shape of Sugar Manufacturing Industry 76
Figures & Tables
Chart2.1, Sugarcane Acreage from 1999-2009 6
Chart2.2, Sugarcane Output from 1999-2009 7
Chart2.3, Sugar Beet Acreage from 1999-2009 8
Chart2.4, Sugar Beet Output from 1999-2009 9
Chart3.1, Sugar Production from 99/00-09/10 17
Chart4.1, Sugar Consumption in 1997/98-2009/10 24
Chart4.2,Per Capita Sugar Consumption in 97/98-08/09 25
Figure 4.3, Proportion of Sugar Consumption of Processing Industries in 2009 34
Chart5.1, Sugar Import from 2000-2009 36
Chart5.2, Import of White Granulated Sugar by Origin from 2000-2009 37
Figure 5.3, Import of White Granulated Sugar by Origin in 2009 37
Figure 5.4, Raw Sugar Import from 1999-2009 38
Figure 5.5, Proportion of Raw Sugar Import by Origin in 2009 39
Chart5.6, Sugar Export from 2000-2009 45
Figure 5.7, Raw Sugar Export from 2000-2009 46
Figure 5.8, Proportion of Raw Sugar Export by Destination in 2009 46
Figure 5.9, Export of Granulated Sugar from 2000-2009 47
Figure 5.10, Proportion of Export of Granulated Sugar by Destination in 2009 47
Chart6.1, Production and Consumption of Starch Sugar from 1998-2010 50
Figure 6.2, Production and Sales to Domestic Market of Saccharin from 1998-2010 51
Chart7.1,Wholesale Price of White Granulated Sugar in Nanning from 1998-2009 55
Chart7.2, Wholesale Price of White Granulated Sugar in Main Consuming Regions from 1998-2009 58
Chart7.3, Monthly CIF Price of Imported Granulated Sugar from 2006-2009 58
Chart7.4, Monthly CIF Price of Imported Raw Sugar from 2006-2009 59
Chart7.5, Futures Price of New York 11 Raw Sugar from 2000-2009 61
Chart7.6, Comparison of Domestic Sugar Price with Importation Price 62
Table 2.1, Sugarcane Acreage from 1999-2009 6
Table 2.2, Sugarcane Output from 1999-2009 7
Table 2.3, Sugar Beet Acreage from 1999-2009 7
Table 2.4, Sugar Beet Output from 1999-2009 8
Table 2.5, Sugarcane Acreage by Province from 1999-2009 9
Table 2.6, Sugarcane Yield by Province from 1999-2009 10
Table 2.7, Sugarcane Output by Province from 1999-2009 10
Table 2.8, Main Sugarcane Varieties in Yunnan 10
Table 2.9, Main Sugarcane Varieties in Guangxi 11
Table 2.10, Main Sugarcane Varieties in Guangdong 11
Table 2.11, Area of Arable Land of Main Sugarcane Producing Provinces from 2004-2009 13
Table 2.12, Sugar Beet Acreage by Province from 1999-2009 13
Table 2.13, Sugar Beet Yield by Province from 1999-2009 14
Table 2.14, Sugar Beet Output by Province from 1999-2009 14
Table 2.15, Main Sugar Beet Varieties in Xinjiang 14
Table 2.16, Main Sugar Beet Varieties in Inner Mongolia 15
Table 2.17, Main Sugar Beet Varieties in Heilongjiang 15
Table 2.18, Area of Arable Land of Sugar Beet Producing Provinces from 2004-2009 16
Table 2.19, Sugarcane Procurement Price of Main Producing Provinces from 99/00-09/10 16
Table 2.20, Sugar Beet Procurement Price of Main Producing Provinces from 99/00-09/10 16
Table 3.1, Sugar Production from 99/00-09/10 17
Table 3.2, Cane Sugar Production by Province from 99/00 -09/10 18
Table 3.3, Beet Sugar Production by Province from 99/00-09/10 18
Table 3.4, Quantity of Sugar Plants by Province 19
Table 3.5, Daily Crushing Capacity of Different Provinces in 08/09 19
Table 3.6, Production Cost of Sugar in Guangxi from 2003-2009 19
Table 3.7, Sugar Production Cost in Guangdong from 2003-2009 20
Table 3.8, Sugar Production Cost of Yunnan from 2003-2009 20
Table 3.9, Sugar Production Cost of Xinjiang from 2003-2009 21
Table 3.10, Sugar Production Cost of Heilongjiang from 2003-2009 21
Table 3.11, Sugar Production Cost of Inner Mongolia from 2003-2009 21
Table 3.12, Cane Sugar Yield of Producing Provinces from 97/98-08/09 22
Table 3.13, Beet Sugar Yield of Producing Provinces from 97/98-08/09 22
Table 3.14, Production of Refinery Plants 22
Table 4.1, Sugar Consumption in 1997/98-2009/10 24
Table 4.2, Per Capita Sugar Consumption in 97/98-08/09 25
Table 4.3, Monthly Aggregate Output of Carbonated Drinks 26
Table 4.4, Monthly Aggregate Output of Fruit Juices/drinks from 2006-2009 26
Table 4.5, Monthly Aggregate Output of Dairy Products from 2006-2009 27
Table 4.6, Monthly Aggregate Output of Canned Food from 2006-2009 27
Table 4.7, Monthly Aggregate Output of Biscuits from 2006-2009 28
Table 4.8, Monthly Aggregate Output of Confectionary from 2006-2009 28
Table 4.9, Monthly Aggregate Output of Pastry from 2006-2009 29
Table 4.10, Monthly Aggregate Output of Fast-frozen Staple Food from 2006-2009 29
Table 4.11, Monthly Aggregate Output of Frozen Beverage from 2006-2009 30
Table 4.12, Sugar Consumption by Main Processing Companies in 2008 (beverage companies) 30
Table4.13,Sugar Consumption by Main Processing Companies in 2008 (Dairy companies) 31
Table4.14,2008 Sugar Consumption by Main Processing Companies in 2008 (candy companies) 32
Table 4.15, Sugar Consumption by Food Processing Industry from 2000-2009 34
Table 4.16, Sugar Consumption by Residents of Different Provinces from 2000-2009 35
Table 5.1, Sugar Import from 2000-2009 36
Table 5.2, Import of White Granulated Sugar by Origin from 2000-2009 37
Table 5.3, Raw Sugar Import by Origin from 2000-2009 38
Table 5.4, Import of Granulated Sugar by Company from 2002-2009 39
Table 5.5, Raw Sugar Import by Company from 2002-2009 42
Table 5.6, Proportion of Sugar Import by Port from 2001-2008 44
Table 5.7, Sugar Export from 2000-2009 44
Table 5.8, Raw Sugar Export by Destination from 2000-2009 45
Table 5.9, Export of Granulated Sugar by Destination from 2000-2009 46
Table 6.1, Production and Consumption of Starch Sugar from 1998-2010 49
Table 6.2, Top 20 Companies in Production Capacity of Starch Sugar 50
Table 6.3, Production and Consumption of Saccharin from 1998-2010 51
Table 6.4, Production of Other Major Substitutes from 1998-2010 52
Table 7.1, Wholesale Price of White Granulated Sugar in Nanning from 1998-2009 54
Table 7.2, Wholesale Price of White Granulated Sugar in Main Consuming Regions from 1998-2009 56
Table7.3, Monthly CIF Price of Imported Granulated Sugar from 2006-2009 58
Table7.4, Monthly CIF Price of Imported Raw Sugar from 2006-2009 59
Table7.5, Futures Price of New York 11 Raw Sugar from 2000-2009 60
Table 7.6, National Sugar Supply and Demand 63
Table 8.1, Production Techniques Used by Sugar Plants in 2008/09 67
Table 8.2, Production of Sugar Refinery Plants in Late Years 69
Table9.1 Companies Subordinated to Yangpu Nanhua Sugar Group 70
Table9.2, Sugar Crop Growing Areas and Sugar Output of Yangpu Nanhua Sugar Group,06/07-08/09 71
Table9.3, Companies Subordinated to Nanning Sugar Co., Ltd. 71
Table9.4,Sugarcane Growing Areas and Sugar Output of Nanning Sugar Co., Ltd,.,06/07-08/09 71
Table9.5,Companies Subordinated to Guangxi East Asia Sugar Group 71
Table9.6,Sugarcane Growing Areas and Sugar Output of Guangxi Nanning East Asia Sugar Group,06/07-08/09 72
Table9.7, Companies Subordinated to Guangxi Farm Reclamation Group 72
Table9.8, Sugarcane Growing Areas and Sugar Output of Guangxi Farm Reclamation Group,06/07-08/09 72
Table9.9, Guangxi Fengtang Biochemical Co., Ltd. 73
Table9.10, Sugarcane Growing Areas and Sugar Output of Guangxi Fengtang Biochemical Co., Ltd.,06/07-08/09 73
Table9.11 ,Companies Subordinated to Botian Sugar Co., Ltd 73
Table9.12, Beet Growing Areas and Sugar Output of Botian Sugar Co., Ltd.,07/08-08/09 74
Table9.13 ,Companies Subordinated to Guangxi Yongxin Huatang Group 74
Table9.14,Sugarcane Growing Areas and Sugar Output of Guangxi Yongxin Huatang Group,06/07-08/09 74
Table9.15 ,Companies Subordinated to Guangxi Dongtang Group 74
Table9.16,Sugarcane Growing Areas and Sugar Output of Guangxi Dongtang Group,06/07-08/09 75
Table9.17,Companies Subordinated to Yingbo Sugar 75
Table9.18,Sugarcane Growing Areas and Sugar Output of Yingbo Sugar,06/07-08/09 75
Table9.19, Companies Subordinated to COFCO Xinjiang Tunhe Co., Ltd 75
Table9.20, Beet Growing Areas and Sugar Output of COFCO Xinjiang Tunhe Co., Ltd.,06/07-08/09 76
Table9.21, Companies Subordinated to Yunnan Yingbao Sugar Co., Ltd 76
Table9.22,Sugarcane Growing Areas and Sugar Output of Yunnan Yingmao Sugar Co., Ltd.,06/07-08/09 76
Table 9.23, Sugar Output of Top 15 Sugar Producers in China 77
