Analysis and Investment on China Sugar Industry （2017-2018）

BOABC presents a valuable analysis report on the sugar industry and investment based on more than two decades of continual accumulation of industrial data, constant following up the industrial changes and persistent in-depth studies. China’s sugar industry started to recover fully in 2016/17 campaign. Mainly, farmers were motivated to grow sugar crops, there was recovery growth of sugar crop farming area and sugar production grew slightly. Domestic sugar price rallied steadily and sugar producers reversed the deficit-generating trend and started to make profit. There was full implementation of guarantee measures on sugar import and there was effective control over large import. The national sugar reserve was released in an orderly way to supplement the domestic supply and to ease the warehousing pressure. Although the sugar industry started to recover in 2016/2017, yet there are still lots of challenges from the perspective of the future development of the industry. (1) Sugar production cost sustains at a high level, competition ability at the international market is weak. Sugar crops farming in China, especially canes, is of poor farm scale and mechanized level, the yield is low but labor cost is on the rise, hence farming costs remains at a high level. In order to guarantee the interest of growers and to stabilize the farming area, the price for sugar crops has been raised again and again, and the current cane sugar cost is about 5,700-6,300 yuan/ton. However the cost after processing imported raw sugar is only 3,600 yuan/ton, hence Chinese made sugar is not competitive at international market. (2) Little room for further growth of sugar production, demand falls slightly. From the perspective of production, alongside the restructuring of crop farming nationwide, traditional cane farming is converging towards the key regions, whereas farming areas in other regions are shrinking. There is limited space for growth of sugar production in China. In terms of consumption, although the per capita sugar consumption quantity of Chinese residents is much lower than the world average, yet the demand slips slightly thanks to sweeteners and people’s conscience on health. (3) Huge gap between domestic and foreign sugar price, smuggling seriously hurts domestic market. International sugar supply turned from insufficiency to oversupply in 2016/17, the international raw sugar price tumbled from 22 to 13 US cents/pound. The shortfall of sugar supply was 2.4 million tons in 2016/17, but auctions of both the national and local reserve saw pass ins. The price kept on dwindling in the end of the campaign. This means there is still smuggling due to the huge price gap. So, will the international and domestic sugar market do the following things in 2017/18? (1) What shall be the sugar supply and demand situation at the international market and what shall be the price trend? (2) How shall be China’s policy on the sugar industry? (3) Will there still be growth of farming area of sugar crops in the new campaign? (4) How shall sugar import change given the existence of the guarantee measures. (5) Will the Government continue to release the national reserve? (6) How shall sugar consumption change in China while the growth of the food industry slows? (7) How shall starch sugar and other sweeteners replace sugar? (8) How shall the competition pattern of the domestic sugar industry evolve? (9) What is the status of investment in China’s sugar industry, investment potential and risk? Centering on the above issues, from the current situation of the industrial policy, farming of sugar crops, production, consumption, trade and overall operation of China’s sugar industry and by combining systematic analyzing and combing the international sugar supply and demand situation. This report concludes and anticipates the trend and investment opportunities China’s sugar industry and provides reference for decision-making for those insiders that pay attention to China’s sugar industry.

Part I  International Sugar Industry
1 Global Sugar Industry Enters into Cycle of Growing Production
1.1 Status of Global Sugar Industry in 2016/17
1.2 Global Sugar Supply and Demand in 2016/17
1.2.1 Variation of Global Sugar Production
1.2.2 Variation of Global Sugar Consumption
1.3 Change of Global Sugar Trade in 2016/17
1.4 Trend of Global Sugar Price in 2016/17
1.4.1 Spot Cargo
1.4.2 Futures
2 Sugar Supply and Demand in Key Countries and Regions
2.1 Brazil
2.2 India
2.3 USA
2.4 European Union
2.5 Thailand
2.6 Australia
3 Outlook of Global Sugar Industry in 2017/18
 
Part II  Domestic Sugar Industry
4 Policy on Sugar Industry in 2016/17
4.1 Most Stringent Control over Sugar Import
4.1.1 Continuation of Sugar Import Quota Policy
4.1.2 Continuation of Self-discipline on Sugar Import
4.1.3 Guarantee Measures on Sugar Import Enforced in End of May
4.2 Rotation of Release between Local and Central Sugar Reserve
4.2.1 Release of Guangxi Local Reserve
4.2.2 Release of Central Reserve 
4.3 Both and Guangxi and Yunnan Continue Guiding Price for Sugarcane
4.4 Government Paces up Strategic Restructuring among Sugar Enterprises
4.5 Multiple Measures to Promote Sugar Industrial Growth
4.5.1 Construction of Dual-high Farms
4.5.2 Establishment of Special Fund for Sugar Industrial Development
4.5.3 Cane Insurance Policy
5 Farming of Sugar Crops in 2016/17
5.1 Canes
5.1.1 Recovery Growth of Cane Farming Area
5.1.2 Cane Farming Shifts towards Superior Regions 5
5.1.3 Landscape and Species Still Restrain Mechanization of Cane Farming
5.1.4 Comparison between Cane Farming Benefit and Competing Crops
5.2 Beets
5.2.1 Rapid Growth of Beet Farming Area
5.2.2 Inner Mongolia, Highlight of Growth
5.2.3 Mechanized Beet Farming Status
5.2.4 Comparison between Beef Farming Benefit and Competing Crops
5.3 Challenges and Difficulties Facing Sugar Crop Farming
6 Sugar Production in 2016/17
6.1 China in Cycle of Growing Sugar Production
6.2 Layout and Size of Sugar Crushing Plants
6.3 Operation of Sugar Plants
6.3.1 Turnover from Core Sector
6.3.2 Cost and Profit of Core Sector
6.4 Challenges and Difficulties of Sugar Industry
7 Sugar Trade and Refinery Processing in 2016/17
7.1 Sugar Import Effectively Restrained by Multiple Measures
7.1.1 Sugar Import Quantity and Changing Trend
7.1.2 Origins of Sugar Import and Changing Trend
7.1.3 Key Importing Companies
7.2 Poor Utilization Rate of Capacity due to Restraint of Raw Sugar Supply
7.2.1 Raw Sugar Processing Capacity and Layout
7.2.2 Margin of Raw Sugar Processing Companies
7.3 Sugar Export
7.4 Issues and Problems of Sugar Trade
8 Sugar Consumption and Sweeteners in 2016/17
8.1 Sugar Price and Sweeteners Restrain Consumption Slightly
8.1.1 Gross Consumption of Sugar
8.1.2 Per Capita Sugar Consumption Lower than World Average
8.2 Slowing Growth of Production of Food with Sugar Content
8.3 Steady Growth of Consumption
8.4 High Sugar Price Spurs Growth of Sweeteners
8.4.1 Starch Sugar, A Significant Substitute due to Cost Advantage
8.4.2 Saccharin Production and Consumption
8.4.3 Rapid Growth of Other Sweeteners
9 Sugar Market in 2016/2017 and Forecast on 2017/2018
9.1 Sugar Supply and Demand Equilibrium and Outlook
9.1.1 Insufficient Domestic Production A Normality
9.1.2 Import under Control, Readjustment with Central Reserve
9.1.3 Smuggling and Substitution Affect Supply and Demand Balance
9.2 Trend of Sugar Price and Prediction
9.2.1 Trend of Domestic Sugar Price (Spot Goods and Futures)
9.2.2 Factors Affecting Sugar Price Trend and Future Direction
 
Part III  Key Companies and Industrial Investment
10 Listed Companies
10.1 Bright Food Group
10.1.1 Corporate Profile
10.1.2 Key Competition Elements
10.1.3 Investment Update
10.1.4 Operational Status
10.2 COFCO Sugar
10.3 Nanning Sugar
10.4 Guangxi Guitang (Group)
10.5 Huazi Industry
10.6 Jiangmen Sugarcane Chemical Factory Group
10.7 Inner Mongolia Biohymn New Agricultural Technology Co., Ltd.
10.8 Guan Nong Share
11 Investment of Sugar Industry
11.1 Current Status of Investment of Sugar Industry
Including: investing enterprises, investment models, investment fields and investment sum
11.2 Investment Opportunities of Sugar Industry
Including: industrial chain, opportunities of market segments and key regions
11.3 Investment Risks of Sugar Industry
 
List of Figures and Tables
Table, China’s Sugarcane Planting Area in 2007/08-2017/18 Grinding Season
Table, China’s Sugarcane Output in 2007/08-2017/18 Grinding Season
Table, China’s Sugar Beet Planting Area in 2007/08-2017/18 Grinding Season
Table, China’s Sugar Beet Output in 2007/08-2017/18 Grinding Season
Table, China’s Sugarcane Planting Area by Province in 2007/08-2017/18 Grinding Season
Table, China’s Sugarcane Per Unit Yield by Province in 2007/08-2017/18 Grinding Season
Table, China’s Sugarcane Output by Province in 2007/08-2017/18 Grinding Season
Table, China’s Sugar Beet Planting Area by Province in 2007/08-2017/18 Grinding Season
Table, China’s Sugar Beet Per Unit Yield by Province in 2007/08-2017/18 Grinding Season Table, China’s Sugar Beet Output by Province in 2007/08-2017/18 Grinding Season
Table, Sugarcane Purchasing Price in Main Sugarcane Producing Provinces in 2007/08-2017/18 Grinding Season
Table, Sugar Beet Purchasing Price in Main Sugar Beet Producing Provinces in 2007/08-2017/18 Grinding Season
Table, China’s Sugar Output in 2007/08-2017/18 Grinding Season
Table, China’s Cane Sugar Output by Province in 2007/08-2017/18 Grinding Season
Table, China’s Beet Sugar Output by Province in 2007/08-2017/18 Grinding Season
Table, Quantity of China’s Sugar Mills by Province
Table, Sugar Materials Daily Grinding Capacity of All Provinces
Table, Sugar Production Cost
Table, Cane Sugar Output Ratio of Main Sugarcane Producing Provinces in 2007/08-2017/18 Grinding Season
Table, Beet Sugar Output Ratio of Main Sugar Beet Producing Provinces in 2007/08-2017/18 Grinding Season
Table, China’s Sugar Consumption in 2007/08-2017/18 Grinding Season
Table, China’s Sugar Consumption Per Capita in 2007/08-2017/18 Grinding Season
Table, Output of Carbonated Beverages in 2008-2017
Table, Output of Fruit Juice and Juice Beverages in 2008-2017
Table, Output of Dairy Products in 2008-2017
Table, Output of Canned Food in 2008-2017
Table, Output of Candies in 2008-2017
Table, Output of Frozen Food Staple in 2008-2017
Table, Output of Frozen Beverages in 2008-2017
Table, Sugar Consumption of China’s Food Industry in 2008-2017
Table, Sugar Consumption of Chinese Residents by Provinces in 2008-2017
Table, China’s Sugar Imports in 2008-2017
Table, China’s White Granulated Sugar Imports by Country in 2008-2017
Table, China’s Raw Sugar Imports by Country in 2008-2017
Table, China’s Granulated Sugar Imports by Enterprise in 2008-2017
Table, China’s Raw Sugar Imports by Enterprise in 2008-2017
Table, China’s Sugar Imports by Port
Table, China’s Granulated Sugar Imports by Port
Table, China’s Sugar Exports and Trend in 2008-2017
Table, China’s Raw Sugar Exports by Country in 2008-2017
Table, China’s Granulated Sugar Exports by Country in 2008-2017
Table, China’ Starch Sugar Production and Consumption in 2008-2017
Table, China’s Top 20 Starch Sugar Enterprises by Production Capacity
Table, China’s Saccharin Output and Consumption in 2008-2017
Table, China’s Other Main Substitute Production in 2008-2017
Table, Wholesale Price of White Granulated Sugar in Nanning i2008-2017
Table, The Wholesale Price of White Granulated Sugar of China’s Major Selling Areas in 2008-2017
Table, China’s Imported White sugar CIF by Month in 2008-2017
Table, China’s Imported Raw Sugar CIF by Month in 2008-2017
Table, Futures Prices of New York No. 11 Raw Sugar in Recent Months in 2008-2017
Table, National Sugar Supply-Demand Balance
 
Figure, China’s Sugarcane Planting Area in 2007/08-2017/18 Grinding Season
Figure, China’s Sugarcane Output in 2007/08-2017/18 Grinding Season
Figure, China’s Sugar Beet Planting Area in 2007/08-2017/18 Grinding Season
Figure, China’s Sugar Beet Output in 2007/08-2017/18 Grinding Season
Figure, China’s Sugar Output in 2007/08-2017/18 Grinding Season
Figure, China’s Sugar Consumption in 2007/08-2017/18 Grinding Season
Figure, China’s Sugar Consumption Per Capita in 2007/08-2017/18 Grinding Season
Figure, Proportion of China’s Industrial Sugar Consumption
Figure, China’s Sugar Imports in 2008-2017
Figure, China’s White Granulated Sugar Imports in 2008-2017
Figure, China’s White Granulated Sugar Import Proportions by Country
Figure, China’s Sugar Exports and Trend in 2008-2017
Figure, China’s Granulated Sugar Exports in 2008-2017
Figure, China’ Starch Sugar Production and Consumption in 2008-2017
Figure, China’s Saccharin Output and Domestic Selling Forecast in 2008-2017
Figure, Wholesale Price of White Granulated Sugar in Nanning in 2008-2017
Figure, The Wholesale Price of White Granulated Sugar of China’s Major Selling Areas in 2008-2017
Figure, China’s Imported White sugar CIF by Month in 2008-2017
Figure, China’s Imported Raw Sugar CIF by Month in 2008-2017
Figure, Futures Prices of New York No. 11 Raw Sugar in Recent Months in 2008-2017
Figure, Comparison of Domestic Sugar Price and Imported Sugar Price