Sugarcane in Nghe An achieved a record high yield and selling price

Three sugar processing factories in Nghe An province have reported high purchasing prices of sugarcane (VND 1.1 million/ton and above) for two years in a row. Local sugarcane farmers are encouraged to further develop raw material cane.

By the end of April, farmers have finished harvesting the sugarcane crop to supply sugar processing factories in Nghe An. They rushed to replant sugarcane in order to avoid the dry season and the southwest wind which can drain the soil and halt the plant's growth.

Never-before-seen high sugarcane yield and selling price

Thanks to Nghe An's planning for raw cane production areas in three sugar processing factories from 2013 to 2020, the province achieved the following targets: 28,400 hectares of sugarcane production area; an average yield of 70.5 tons per hectare; an output of 1,880,000 tons; factories' daily pressing capacity of 15,500 tons.

Most notably, Nghe An planted 24,019 hectares of raw sugarcane in 2016, yielding an average of 56 tons per hectare. However, local sugarcane yield slowly dropped in the following years because the purchasing price fluctuated between VND 780 and 800/kg. Because the price was too low, farmers made little profit and planted only 19,825 hectares of sugarcane for the 2019-2020 crop; the yield dropped to 53 tons per hectare. This figure fell to nearly 18,500 hectares in the 2020-2021 crop year, and the average yield reached 61 tons per hectare.

The area of ​​sugarcane decreased markedly in the 2020-2021 crop year. However, the yield increased and the price climbed to roughly VND 950/kg. The area of ​​sugarcane increased to 20,200 hectares in the 2022 - 2023 crop year. The estimated yield of the crop is 68 tons per hectare, making it the most productive sugarcane crop ever recorded.

Additionally, the newly harvested sugarcane crop is protected from most pests and diseases. Sugar factories offer prices ranging from VND 1,100 to 1,200/kg for this batch of sugarcane.

Mr. Pham Van Luc from Nghia Thai commune, Tan Ky district said that he has rented land from other households to grow 5 hectares of raw sugarcane for three years so far. His sugarcane yield consistently reached 70 tons per hectare. Song Con Sugar Processing Factory offers VND 1,100 for one kilogram of sugarcane this year. He makes a profit of VND 150 million per 5 hectares after deducting costs.

After harvesting the previous crop, Mr. Luc rented another 8 hectares of land to plant sugarcane. He had to labor arduously to plant, nurture and harvest sugarcane in the past. Modern machinery has since assisted in tilling, planting, nurturing, harvesting and transporting. Farmers are saved a great deal of work by signing contracts with sugar processing factories.

Mr. Nguyen Thanh Binh from Giai Xuan commune, Tan Ky district said: "We only have 2 hectares of land for sugarcane; but with sound investment in intensive farming, the recent sugarcane crop has yielded an average of 80 tons per hectare. We sold all of our harvested sugarcane to the sugar processing factory. After deducting costs for seeds, micro-organic fertilizer and mechanized services for tillage, planting, and harvesting, the profit is a little over VND 30 million/hectare. For the next crop, I will expand the sugarcane growing area by one additional hectare. If the factory continues to buy sugarcane at the current price, many families in the area will have a sizeable income."

Similarly, Mr. Hoang Minh Hieu in Minh Hop commune, Quy Hop district said that the high price, excellent output, and stable income have greatly motivated sugarcane farmers of Nghe An province. Mr. Hieu harvested an average of 140 tons per hectare during the last sugarcane crop. This was the highest yield in Quy Hop district, netting him a profit of nearly VND 100 million per hectare.

Mr. Hieu explained why he thinks his sugarcane achieved such a high yield: "Our sugarcane is cultivated on soil that was previously used for orange farming. Secondly, we use the high-yield sugarcane variety provided by the factory. Thirdly, sugarcane needs proper care, adequate fertilization, especially organic fertilizer. Finally, we water regularly so our sugarcane has higher quality than those who do not".

Increasing sugarcane area

It is likely that the 2023 - 2024 sugarcane crop year will see a considerably higher increase in terms of area and productivity because sugar businesses and farmers share benefits and responsibilities. At the moment, sugar businesses have established several mechanisms and policies to support farmers such as:

Firstly, sugar businesses in Nghe An encourage farmers to apply mechanization in every stage of sugarcane production: from tilling to planting, nurturing, pest control, harvesting and transportation. Sugar companies accommodate these mechanizations through service contracts with preferential prices.

Secondly, sugar companies are willing to lend money to farmers to purchase machines for sugarcane production as well as provide advance money to purchase fertilizers, sugarcane seeds, etc. without interest. In addition, sugar companies assign technical staff to each village to train techniques in planting, nurturing and intensively cultivating sugarcane for high yield.

Thirdly, some sugar companies also have their specific policies and mechanisms such as:

Nghe An Sugar Company supports up to VND 2 million per hectare for farmers planting sugarcane on newly reclaimed land, land converted from inefficient crops to sugarcane; 4 million VND per hectare support for farmers breeding new sugarcane; 1.5 million VND per hectare support for families who grow new sugarcane varieties from the breeding field. Additionally, each sugarcane transportation truck with a commercial cane sugar (CCS) level exceeding the five-day average by 0.5 CCS, will be rewarded with VND 60,000 per 1 CCS higher.

Song Lam Sugar Company supports up to VND 2 million per hectare for the intensive sugarcane cultivation model. The company also provides full support for sugarcane seed transportation for registered households. Furthermore, the company offers purchasing price warranty on raw sugarcane materials for the following crop to encourage farmers.

Mr. Quan Vi Giang, Vice Chairman of Quy Hop District People's Committee said: "Fertilizer prices are slowly dropping whereas the price of raw sugar cane are increasing. As a result, farmers will increase sugarcane growing capacity, with each year higher than the last. Before 2021, the most sugarcane planted a year was 4,800 hectares. However, the area has increased to over 5,200 hectares in the last two years. Namely, Minh Hop commune planted nearly 1,000 hectares of sugarcane.

Mr. Nguyen Tien Duc, Director of Nghe An Provincial Sub-Department of Crop Production and Plant Protection said: "The province planted nearly 18,500 hectares of raw sugarcane in 2021. This figure rose to 20,200 hectares in 2022 with the possibility of increasing further in 2023 because both the yield and price are high".

Avoid expanding growing area spontaneously

There have been multiple cases of over-production in Nghe An province. Namely, there are vegetable, tuber and fruit over-production in Quynh Luu, Dien Chau; onion over-production in Nghi Loc; ginger over-production in Ky Son and many other examples. However, sugarcane lacks support policies when over-production occurs. Consequently, local leaders, cooperatives and farmers must avoid expanding sugarcane growing areas spontaneously.

The best method to achieve high yield and quality is to focus on intensive farming instead of expanding the area. This approach brings high economic efficiency as well as saves land for other crops. The average yield of sugarcane in Nghe An is low at under 70 tons per hectare. On the other hand, Mr. Hoang Minh Hieu's family in Minh Hop commune, Quy Hop district harvested 140 tons of sugarcane per hectare, which is the highest yield in Nghe An province. This achievement demonstrates the great potential in increasing sugarcane productivity. The main issue lies in the lack of investment in intensive farming.

If processing factories indeed have a large demand for sugar, it may be possible to expand the growing area, but only if agreements have been made between farmers and factories. The cooperation model between Song Lam Sugar Company and farmers in Anh Son district is a notable example.