Song Con Sugar Company: Ready for the new crushing season

Overcoming difficulties for a successful coercion operation.

We visited Nghia Dong commune (Tan Ky district) in early November, where the vast, verdant sugarcane fields were preparing for harvest. The locals were clearing away the dry leaves – the final step in the production cycle – to reap the rewards of a year of hard work cultivating a sweet sugarcane crop...

This year, Nghia Dong commune has nearly 190 hectares of sugarcane, of which 17 hectares are on land leased from local people by the company.

Mr. Nguyen Huu Long, head of Hamlet 10, Nghia Dong commune, said: “Most of the alluvial and riverside land in the hamlet is used for sugarcane cultivation. Thanks to technical guidance and the application of synchronized mechanization in sugarcane cultivation, production costs have decreased, and the yield and output are expected to increase compared to the previous manual production. If the price of sugarcane remains stable like in the previous crushing season, farmers are expected to earn 100-110 million VND/ha, with an estimated profit of 40-50 million VND/ha.”

Sugarcane farmers in Nghia Dong commune prune dry leaves from their sugarcane plants before harvesting. Photo: Thanh Phuc

Although this year's weather has been quite unfavorable, with a prolonged drought causing 150 hectares of sugarcane to wither and die, significantly affecting farmers and causing losses for the company, the introduction of the K3 sugarcane variety over the past two years has proven its superior advantages: less susceptible to pests and diseases, drought-tolerant, tall and robust plants, high sugar content, and high yield and production, making sugarcane farmers very happy.

Mr. Nguyen Sy Hai, an agricultural officer at Song Con Sugar Company, said: “The company contracted to bring one sugarcane harvesting machine to the Tan Ky raw material area for a pilot project. With a machine capacity of 200-250 tons/day, the productivity is hundreds of times greater than that of ordinary laborers, and the rental price is only about 170,000 VND/ton, cheaper than hiring workers.”

To prepare for a successful crushing season, the company has now completed the maintenance and repair of machinery and production lines to ensure a capacity of 3,300 tons/day. With this capacity, the enterprise will utilize all the sugarcane raw materials from farmers, reduce the problem of raw material stagnation during the peak season, and improve the quality of the finished sugar product.

Farmers in Tan Ky district harvest sugarcane for the factory. Photo: Xuan Hoang.

Currently, the expected purchase price for sugarcane at the field is 800,000 VND/ton for clean sugarcane, the same price as at the beginning of last year's season. In addition, the company also applies a bonus system for sugarcane with high sugar content. This is a measure to encourage farmers to invest in and care for their sugarcane crops to improve quality.

On the other hand, the company has prepared transportation means; announced purchase prices, and signed contracts to purchase raw sugarcane directly from households. At the same time, it has coordinated with local authorities in the sugarcane growing areas to repair and upgrade internal field roads to facilitate the easy and convenient transportation of sugarcane.

In the 2018-2019 crop year, Song Con Sugar Company's sugarcane growing area was 7,000 hectares, concentrated in Tan Ky, Thanh Chuong, Yen Thanh, Do Luong, and Anh Son districts, with 9,400 farming households. Sugarcane yield in the 2018-2019 crop year was estimated at 54 tons/ha (down from the previous crop year); sugarcane production was estimated at 350,000 tons; and sugar production was estimated at approximately 5,000 tons.

Many policies prioritize raw material sourcing areas.

Starting in 2018, the family of Ms. Ngo Thi Tan, from Hamlet 10, Nghia Dong Commune, leased 3 hectares of land from local households to grow sugarcane. Over the past two years, the 3 hectares of sugarcane have brought the family an average income of approximately 150 million VND per year.

Ms. Tan happily shared: “Compared to cassava and corn, sugarcane is far more efficient. Firstly, sugarcane requires little care, making it suitable for the current rural labor situation. Secondly, the initial investment costs are advanced or financed by the company, and only repaid after harvest. Thirdly, the company guarantees the purchase of the sugarcane product. Therefore, we farmers feel very secure and confident, and we boldly rent land to grow sugarcane and expand our acreage.”

Agricultural officers of Song Con Sugar Company discuss sugarcane harvesting schedules with local farmers. Photo: Thanh Phuc

According to Mr. Nguyen Thanh Binh, a resident of Nghia Dong, his family consists of two elderly people, with their children having established careers far away. They own 5 sao (approximately 0.5 hectares) of land and have switched from growing corn to growing sugarcane. “Before, we worried about harvesting, hiring laborers, and providing meals… but now we have machinery, so we don’t have to worry about anything anymore. Now we just focus on planting and caring for the crop according to proper procedures and techniques to ensure high yields and sugar content for a higher selling price.”

The new SJC 2 variety was introduced by the company for planting in the autumn-winter season of 2019-2020. Photo: TP - XH

To support farmers in expanding sugarcane raw material areas, the company provides support of 4.5 million VND/hectare for planting new SJC 2 sugarcane varieties; and 3 million VND/hectare for planting completed between September 15th and December 15th, 2019. Loans of 23 million VND per hectare are provided for purchasing seeds, covering land preparation, fertilizer, pesticides, and sugarcane care costs; and 3 million VND per hectare for caring for ratooned sugarcane. Additionally, 10 tons of treated sugarcane sludge are provided per hectare of new planting.

Currently, the company is seeking to lease land to expand its sugarcane cultivation area according to the planned raw material area of ​​10,000 hectares, prioritizing areas of at least 2 hectares per plot that meet the requirements for plowing, planting, caring for, and harvesting sugarcane using machinery.