Sugar production during 2017/18 campaign recorded 10.31 million tons in China, 1.02 million tons or 11.00% more than in 2016/17. Although it had entered into the cycle of production growth, yet it was still 3 million tons behind the 13.32 million tons production in the record campaign of 2013/2014. 2018/19 shall still be in the growing cycle, but the growth rate should not be big, production shall be around 10.60 million tons. Driving force for the growth shall be from the considerable enlargement of production capacity of beet sugar in Inner Mongolia. Beet sugar is recovering its status in China’s sugar industry, and the sugar supply pattern in China is going through changes silently. Import: the total sugar import in 2017/18 campaign hit 2.43 million tons, 6.16% higher over the 2.29 million tons in 2016/17, import was brought under effective control thanks to multiple control measures. Sugar import guarantee measures came to its anniversary on 22nd May, 2018, after that the tariff on import outside the quota dropped from 95% to 90%. Meanwhile the Ministry of Commerce abolished the list of guarantee measures non-applicable countries, i.e, from August 2018 till the end of implementation of the guarantee measures, higher tariff on import outside the quota shall be applied to all countries, therefore again there shall be changes to the origins of import, changes were seen already during the first year of the implementation of the guarantee measures.

Research Background

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.
 
Sugar production during 2017/18 campaign recorded 10.31 million tons in China, 1.02 million tons or 11.00% more than in 2016/17. Although it had entered into the cycle of production growth, yet it was still 3 million tons behind the 13.32 million tons production in the record campaign of 2013/2014. 2018/19 shall still be in the growing cycle, but the growth rate should not be big, production shall be around 10.60 million tons. Driving force for the growth shall be from the considerable enlargement of production capacity of beet sugar in Inner Mongolia. Beet sugar is recovering its status in China’s sugar industry, and the sugar supply pattern in China is going through changes silently.
 
Import: the total sugar import in 2017/18 campaign hit 2.43 million tons, 6.16% higher over the 2.29 million tons in 2016/17, import was brought under effective control thanks to multiple control measures. Sugar import guarantee measures came to its anniversary on 22nd May, 2018, after that the tariff on import outside the quota dropped from 95% to 90%. Meanwhile the Ministry of Commerce abolished the list of guarantee measures non-applicable countries, i.e, from August 2018 till the end of implementation of the guarantee measures, higher tariff on import outside the quota shall be applied to all countries, therefore again there shall be changes to the origins of import, changes were seen already during the first year of the implementation of the guarantee measures.
 
Entering into 2017/18, domestic sugar price sustained the downward trend due to the drop of international price, unpreventable smuggling, sluggish consumption and sugar substitutes. The average price in Guangxi fell from 6,600 yuan/ton in the beginning of the campaign to 5,100 yuan/ton by the end of the campaign, again lower than the production cost. The whole industry may see a deficit once more. From the perspective of the current profit margin of domestic companies and the domestic market, the goal of revitalizing the domestic sugar market and to improve domestic sugar competitiveness has not been materialized. Will the Government continue to strengthen policy support to the sugar industry?
 
To address the above issues, this Report shall summarize and comb China’s sugar industry in 2017/18 campaign with emphasis on discussing the following aspects:
 
(1) What shall be the sugar supply and demand situation at the international market and what shall be the price trend? How does it affect the sugar market in China?
(2) How shall be China’s policy on the sugar industry? When direct subsidy to sugar crops and trade policies come into being and will there be changes?
(3) What is the development direction of sugar crops farming in the new campaign? How is the growth potential of beet sugar?
(4) How shall sugar import change under upgraded guarantee measures? Will the pattern of import origins change at this time? Will smuggling continue to impact domestic supply while there is strict combat against it.
(5) After many years, will the Government once again collect for its reserve when sugar price is sluggish?
(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 is the progress of the consolidation and restructuring of domestic sugar industry? How shall be the competition pattern in the future?
(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 of China’s sugar industry, try to be as objective and accurate, and provides reference for decision-making for those insiders that pay attention to China’s sugar industry.

Content
Part I International Sugar Industry
1 Global Sugar Industry Enters into Cycle of Growing Production
1.1 Status of Global Sugar Industry in 2017/18
1.2 Global Sugar Supply and Demand in 2017/18
1.2.1 Variation of Global Sugar Production
1.2.2 Variation of Global Sugar Consumption
1.3 Change of Global Sugar Trade in 2017/18
1.4 Trend of Global Sugar Price in 2017/18
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
1 Policy on Sugar Industry in 2017/18
1.1 Most Stringent Control over Sugar Import
1.1.1 Continuation of Sugar Import Quota Policy
1.1.2 Continuation of administration of sugar import license
1.1.3 Continuation of Self-discipline on Sugar Import
1.1.4 Escalation of Trade Safeguard Measures on Imported Sugar
1.2 Neither local nor the Central reserve has been released recently
1.3 Guangxi fixes cane collection price for next campaign already
1.4 Government Paces up Strategic Restructuring among Sugar Enterprises
1.5 Multiple Measures to Promote Sugar Industrial Growth
1.5.1 Construction of Dual-high Farms
1.5.2 Establishment of Special Fund for Sugar Industrial Development
1.5.3 Cane Insurance Policy
1.5.4 Active promotion of mechanization of cane farming
1.5.5 Direct subsidy on canes about to emerge
2 Farming of Sugar Crops in 2017/18
2.1 Canes
2.1.1 Recovery Growth of Cane Farming Area
2.1.2 Cane Farming Shifts towards Superior Regions
2.1.3 Mechanized Cane Farming Status
2.1.4 Comparison between Cane Farming Benefit and Competing Crops
2.2 Beets
2.2.1 Rapid Growth of Beet Farming Area
2.2.2 Inner Mongolia, Highlight of Growth
2.2.3 Mechanized Beet Farming Status
2.2.4 Comparison between Beef Farming Benefit and Competing Crops
2.3 Challenges and Difficulties Facing Sugar Crop Farming
3 Sugar Production in 2017/18
3.1 Sugar production in China has entered into the cycle of growth, beet sugar becomes a highlight of growth
3.1.1 Cane sugar production in Guangxi, Yunnan and Guangdong grows in stability
3.1.2 Beet sugar production in Inner Mongolia leads the country
3.2 Layout and Size of Sugar Crushing Plants
3.3 Operation of Sugar Plants
3.3.1 Turnover from Core Sector
3.3.2 Cost and Profit of Core Sector
3.4 Challenges and Difficulties of Sugar Industry
4 Sugar Trade and Refinery Processing in 2017/18
4.1 Minor growth of sugar import, export keeps steady
4.1.1 Minor growth of sugar import quantity
4.1.2 Diversification of sugar import origins
4.1.3 Sugar export keeps steady
4.2 Poor Utilization Rate of Capacity due to Restraint of Raw Sugar Supply
4.2.1 Raw Sugar Processing Capacity and Layout
4.2.2 Margin of Raw Sugar Processing Companies
4.3 Issues and Problems of Sugar Trade
5 Sugar Consumption and Sweeteners in 2017/18
5.1 Sugar Consumption of China
5.1.1 Gross Consumption of Sugar
5.1.2 Per Capita Sugar Consumption Lower than World Average
5.2 Slowing Growth of Production of Food with Sugar Content
5.3 Steady Growth of Household Consumption
6 Sugar Substitutes in China in 2017/18
6.1 Starch Sugar
6.1.1 Production of Starch Sugar
6.1.2 HFCS, main alternative of sugar
6.1.3 High concentration level of enterprises in starch sugar industry
6.1.4 Consumption of starch sugar and outlook
6.2 Other substitutes
6.2.1 Corn Sugar
6.2.2 Saccharin
6.2.3 Other Sweeteners
7 Analysis of Sugar Market in 2017/2018 and Forcast on 2018/2019
7.1 Sugar Supply and Demand Equilibrium and Outlook
7.1.1 Insufficient Domestic Production A Normality
7.1.2 Import under Control, Readjustment with Central Reserve
7.1.3 Smuggling and Substitution Affect Supply and Demand Balance
7.2 Trend of Sugar Price and Prediction
7.2.1 Trend of Domestic Sugar Price (Spot Goods and Futures)
7.2.2 Factors Affecting Sugar Price Trend and Future Direction
Part III Key Companies Operation Analysis in 2018
1 COFCO Sugar
1.1 Corporate Profile
1.2 Key Competition Elements
1.3 Investment Update
1.4 Operational Status
2 Nanning Sugar
3 Yuegui Co
4 Huazi Industry
5 Jiangmen Sugarcane Chemical Factory Group
6 Inner Mongolia Biohymn New Agricultural Technology Co., Ltd.
7 Guan Nong Share
Part IV Sugar Industrial Investment in 2018
1 Summary of Key Investment in China’s Sugar Industry in 2018
2 Features of Investments in 2018
2.1 Composition of investors
2.2 Regional distribution of investment
2.3 Investment way and main capital sources
2.4 Analysis of industrial investment links
2.5 Analysis of investment scale
3 Analysis of investment oppertunities and risks of China’s Sugar industry
3.1 Choices of Investments Models (Including investment potential, superior regions, investment mode selection, investment links, excellent assets in the industry, etc.)
3.2 Possible Investment Risks
 
 
 
Table contents
Table, China’s Sugarcane Planting Area in 2008/09-2018/19 Grinding Season
Table, China’s Sugarcane Output in 2008/09-2018/19 Grinding Season
Table, China’s Sugar Beet Planting Area in 2008/09-2018/19 Grinding Season
Table, China’s Sugar Beet Output in 2008/09-2018/19 Grinding Season
Table, China’s Sugarcane Planting Area by Province in 2008/09-2018/19 Grinding Season
Table, China’s Sugarcane Per Unit Yield by Province in 2008/09-2018/19 Grinding Season
Table, China’s Sugarcane Output by Province in 2008/09-2018/19 Grinding Season
Table, China’s Sugar Beet Planting Area by Province in 2008/09-2018/19 Grinding Season
Table, China’s Sugar Beet Per Unit Yield by Province in 2008/09-2018/19 Grinding Season
Table, China’s Sugar Beet Output by Province in 2008/09-2018/19 Grinding Season
Table, Sugarcane Purchasing Price in Main Sugarcane Producing Provinces in 2008/09-2018/19 Grinding Season
Table, Sugar Beet Purchasing Price in Main Sugar Beet Producing Provinces in 2008/09-2018/19 Grinding Season
Table, China’s Sugar Output in 2008/09-2018/19 Grinding Season
Table, China’s Cane Sugar Output by Province in 2008/09-2018/19 Grinding Season
Table, China’s Beet Sugar Output by Province in 2008/09-2018/19 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 2008/09-2018/19 Grinding Season
Table, Beet Sugar Output Ratio of Main Sugar Beet Producing Provinces in 2008/09-2018/19 Grinding Season
Table, China’s Sugar Consumption in 2008/09-2018/19 Grinding Season
Table, China’s Sugar Consumption Per Capita in 2008/09-2018/19 Grinding Season
Table, Output of Carbonated Beverages in 2009-2018
Table, Output of Fruit Juice and Juice Beverages in 2009-2018
Table, Output of Dairy Products in 2009-2018
Table, Output of Canned Food in 2009-2018
Table, Output of Candies in 2009-2018
Table, Output of Frozen Food Staple in 2009-2018
Table, Output of Frozen Beverages in 2009-2018
Table, Sugar Consumption of China’s Food Industry in 2009-2018
Table, Sugar Consumption of Chinese Residents by Provinces in 2009-2018
Table, China’s Sugar Imports in 2009-2018
Table, China’s White Granulated Sugar Imports by Country in 2009-2018
Table, China’s Raw Sugar Imports by Country in 2009-2018
Table, China’s Sugar Exports and Trend in 2009-2018
Table, China’s Raw Sugar Exports by Country in 2009-2018
Table, China’s Granulated Sugar Exports by Country in 2009-2018
Table, China’ Starch Sugar Production and Consumption in 2009-2018
Table, China’s Top 20 Starch Sugar Enterprises by Production Capacity
Table, China’s Saccharin Output and Consumption in 2009-2018
Table, China’s Other Main Substitute Production in 2009-2018
Table, Wholesale Price of White Granulated Sugar in Nanning i2009-2018
Table, The Wholesale Price of White Granulated Sugar of China’s Major Selling Areas in 2009-2018
Table, China’s Imported White sugar CIF by Month in 2009-2018
Table, China’s Imported Raw Sugar CIF by Month in 2009-2018
Table, Futures Prices of New York No. 11 Raw Sugar in Recent Months in 2009-2018
Table, National Sugar Supply-Demand Balance
 
 
Figure contents
Figure, China’s Sugarcane Planting Area in 2008/09-2018/19 Grinding Season
Figure, China’s Sugarcane Output in 2008/09-2018/19 Grinding Season
Figure, China’s Sugar Beet Planting Area in 2008/09-2018/19 Grinding Season
Figure, China’s Sugar Beet Output in 2008/09-2018/19 Grinding Season
Figure, China’s Sugar Output in 2008/09-2018/19 Grinding Season
Figure, China’s Sugar Consumption in 2008/09-2018/19 Grinding Season
Figure, China’s Sugar Consumption Per Capita in 2008/09-2018/19 Grinding Season
Figure, Proportion of China’s Industrial Sugar Consumption
Figure, China’s Sugar Imports in 2009-2018
Figure, China’s White Granulated Sugar Imports in 2009-2018
Figure, China’s White Granulated Sugar Import Proportions by Country
Figure, China’s Sugar Exports and Trend in 2009-2018
Figure, China’s Granulated Sugar Exports in 2009-2018
Figure, China’ Starch Sugar Production and Consumption in 2009-2018
Figure, China’s Saccharin Output and Domestic Selling Forecast in 2009-2018
Figure, Wholesale Price of White Granulated Sugar in Nanning in 2009-2018
Figure, The Wholesale Price of White Granulated Sugar of China’s Major Selling Areas in 2009-2018
Figure, China’s Imported White sugar CIF by Month in 2009-2018
Figure, China’s Imported Raw Sugar CIF by Month in 2009-2018
Figure, Futures Prices of New York No. 11 Raw Sugar in Recent Months in 2009-2018
Figure, Comparison of Domestic Sugar Price and Imported Sugar Price