Reviving sugarcane industry in Tuyen Quang

Retaining sugar cane growers

By mid-March 2022, Son Duong had completed the 2021-2022 sugarcane press crop, marking the recovery of the sugarcane industry in Tuyen Quang, even though the press crop was not a success.

Mr. Nguyen Hong Minh, director of Song Duong company, stated that following the conclusion of the 2021-2022 press harvest, the total material sugar cane is projected to be 100,000 tons and the sugar inventory is zero.  

White sugar prices have decreased from VND 17,000-18,000 per kg at the start of the season to VND 16,500-16,600 per kg today. At this price, the company may continue to purchase raw material cane at the level agreed upon with farmers and gradually recover production and commercial operations, as well as the raw material area.

With the recovery of material sugarcane, Son Duong company expects to earn VND 950 per kg of sugarcane in the 2022-2023 crop year. It pledges to acquire material sugar cane for VND 1,000 per kg and VND 1,130 per kg with cane seed tops from raw cane, and for VND 1,350 per kg with sugarcane seeds collected from summer sugarcane orchards that are 6 to 8 months old.

The company also conducted investment norm for the new sugarcane cultivation area, VND 35 million for the replant area and VND 20 million to the sugarcane with roots; supporting converting of annual cultivation land to sugarcane cultivation at VND 3 million per ha; converting from perennial crops to sugarcane crop at VND 5 million ha. For commune-level sugarcane planting steering committee will be supported VND 500 per ton; the village sugarcane planting steering committee will receive a support of VND 1 thousand per ton...

As farmers demonstrate an eagerness to return to sugarcane farming, the Son Duong company's sugarcane press crop in 2022-2023 is predicted to be more optimistic. The firm anticipates planting 250-300 hectares of new material sugarcane in 2022, bringing the total area to around 2,200 ha.

Mr. Minh stated that recovering material sugarcane land is also challenging, as numerous sections of sugarcane farming have been switched to fruit and forest tree cultivation over the years. Farmers are still hesitant to return to or expand their sugarcane material area due to prior years' poor purchase prices.

According to the Company's estimations, if the white sugar price hits VND 16,000 per kg, the Company will remain profitable after subtracting expenditures. However, if prices continue to fall, the sugar business will continue to struggle.

Another issue confronting the sugarcane industry in Tuyen Quang is that several honey firehouses purchased sugarcane at a more favorable price for the 2021-2022 press crop, resulting in a material dispute with the company despite the latter signing contracts and investing in seeds and fertilizers for farmers. Local government assistance is needed to maintain the company's commitment and material region.

Expanding large sugarcane fields

By 2023-2024, Son Duong Company aimed to expand the material area to 4,800 ha, generating an average of 72 tons per year, and to 6,000 ha by 2024-2025, yielding an average of 80 tons per hectare.

To accomplish this aim, the business has implemented preferential policies to attract sugarcane producers, enhanced the quality of varieties to increase productivity and output, and implemented both the large-field model and automation.

Currently, the whole plowing program in Tuyen Quang province's sugarcane fields is automated. As a result, the Company owns and operates 11 earthmoving equipment to assist farmers in the raw material sector. Where the Company is unable to provide tillage machinery, they would provide individuals with VND 5 million per hectare to invest in tillage.

The enterprise will deploy five large field models across the province in the press harvest of 2022-2023, including 3 ha in Phu Luong commune and Son Duong district, 4 ha in Phuc Ung, and Son Duong...

At the moment, the locations engaging in the model have finished the process of signing agreements with farmers to jointly deploy the large field model under the motto of the same varieties and farming practices. Until present, the model in Phu Luong commune, Phuc Ung commune, and Son Duong district has been approved and registered for the construction of vast fields. The remaining three models are being adopted with overwhelming farmer support.

Mr. Hau Quang Huy, Chairman of the Phu Luong Commune People's Committee in Son Duong District, stated that the commune's raw sugarcane area is 95 hectares, an increase of around 10 to 15 hectares over the previous crop. Additionally, this year marks the first time the commune has deployed a model of a large sugarcane field covering 3 hectares, which the public generally agrees should be planted with the sugarcane variety Roc22. Both the government and the public expect Son Duong Company to adhere to its commitments regarding the price and timing of raw cane purchases. As a result, the area's sugarcane material area will be steady and expanding.

The Tuyen Quang sugar sector also places a premium on seed structure modification and the use of scientific and technological breakthroughs in manufacturing. Only KK3 and LK9211 sugarcane types are planted in newly planted sugarcane lands in the crop year 2022-2023.

Additionally, Son Duong Sugar Joint Stock Company inked a deal with Tan Trao University to produce sugarcane tissue culture. The Company anticipates planting between 5 and 10 hectares of tissue cultured sugarcane in the crop year 2022-2023. The notable benefit of this variety is its ability to rapidly multiply high-quality sugarcane varieties such as KK3 to generate pure, disease-free, healthy, and vigorous seedlings.

Traditional varieties with high yields and sugar reserves will also be reintroduced, such as Roc22 and MI, since they are the only ones that are suitable for growing and producing high yields and sugar levels on a large number of fields in Tuyen Quang province.