Intensive investment - A solution to ensure profitable sugarcane farming.

(Baonghean) - While sugarcane may not bring quick riches, it has been a sustainable poverty alleviation crop for hundreds of thousands of households in the province since the three sugar factories began operating. However, the low price of raw sugarcane is bringing farmers back to the worry of how to produce profitably.

For over ten years, since the Tate&Lyte Nghe An Sugar Factory began operations, sugarcane has become the main crop for hundreds of thousands of households in Phu Quy and surrounding areas, helping many farmers escape poverty. Not only on the hillsides, but also in their home gardens, people in Nghia Hoi commune (Nghia Dan district) have planted sugarcane. This year, the factory's purchase price for sugarcane is 10 prices lower than last year, causing losses for sugarcane farmers. Ms. Nguyen Chau Minh - Hamlet 2, Nghia Hoi commune (Nghia Dan district) said: “The price of sugarcane this year is too low compared to market prices. Meanwhile, labor costs, plowing, fertilizer, and other expenses are high, and the company is buying at such a low price that there's hardly any profit left. If the price remains low next year, we will switch to planting short-term crops.”

Prices for fertilizers and labor have increased compared to previous years, but the price sugarcane that factories pay farmers is lower than in previous years. In the 2012-2013 crop year, the price of sugarcane was 900,000 VND/ton, while in the 2013-2014 crop year it was only 800,000 VND/ton. Investigations reveal that this year, world sugar prices have decreased compared to previous years. In particular, the domestic sugar market is facing many difficulties due to the influx of imported sugar through unofficial channels. Therefore, sugar factories in the province are struggling to sell their products. For example, the Song Lam Sugar Factory, which had a factory price of 15,000 VND/kg at the beginning of last year's crushing season, is now down to 13,000 VND/kg. Furthermore, the factory currently has over 1,500 tons of sugar in storage.

Mr. Le Thanh An, Deputy Director of Song Lam Sugar Factory, said, "The reason sugarcane prices are low this year is because domestic and international sugar prices have fallen compared to last year, coupled with difficulties in consumption. To maintain the raw material area, the company is trying to process all the sugarcane for farmers, with prices negotiated based on sugarcane quality and sugar content. To ensure the quality of sugarcane in the next crop, the company has also implemented several solutions such as encouraging farmers to switch to new varieties; and encouraging new planting by providing support for fertilizer, plowing costs, and seed costs."

Harvesting sugarcane in the raw material area of ​​Nghia Dan district.

Low sugar prices mean that factories are buying sugarcane from farmers at lower prices than last year, reflecting the impact of market forces on sugarcane. Therefore, to make a profit from sugarcane farming, farmers need to invest more in caring for their crops and treat it as a cash crop. Even in the same region, where factory prices remain the same, some farmers still make a profit despite low prices, and continue to rely on sugarcane as their main crop.

If a region is well-cared for, it will yield high-quality sugarcane, so it will not be significantly affected when sugarcane prices fall. In reality, even if farmers don't want to grow sugarcane, it's difficult to find a suitable alternative crop, especially since sugarcane cultivation in the entire province currently covers 26,000 hectares. "If we don't grow sugarcane, we'll go back to our old crops like corn and cassava," Mr. Nguyen Van Le (Hamlet 2, Hoa Son Commune, Anh Son District) confided when asked about alternative crops if sugarcane prices remain low. It can be said that if farmers abandon sugarcane, they will return to square one, struggling to find a suitable crop with a stable market.

It must be reiterated that sugarcane is a commercially viable crop with a stable market and has helped hundreds of farming households escape poverty. Therefore, abandoning sugarcane cultivation overnight is not advisable. Furthermore, sugarcane must be maintained as three sugar factories are still operating and require raw materials. The challenge for sugarcane is how to ensure farmers can profit from it. The solution lies in investing in intensive farming to increase sugarcane productivity, with the factories continuing to work together with farmers to overcome difficulties.

Regarding the agricultural sector, Mr. Tu Kim, Head of the Crop Production Technical Department of the Provincial Department of Agriculture and Rural Development, stated, "Sugarcane is one of the key crops, and to ensure the normal operation of the three sugar factories, we must maintain 30,000 hectares of sugarcane land. Therefore, we affirm that other crops should not be planted to replace sugarcane. We advise farmers to take care of their sugarcane, invest in intensive farming, use appropriate fertilizers, and effectively control pests and diseases to increase both yield and quality. This will enhance the value of sugarcane, bringing economic efficiency and encouraging people to be more committed to sugarcane as a raw material."

The 2013 sugarcane season showed that it's time for sugarcane farmers to recognize sugarcane as a commercial crop and to be closely linked to sugar factories. To prevent this crop from being heavily impacted by market fluctuations, the only way is to focus investment on improving care and increasing sugarcane yield. Sugar factories also need to share the difficulties with farmers so that both sides can continue to develop together. Businesses need to continue working hand in hand with farmers to solve difficulties, save costs in production, and provide loans to farmers to invest in sugarcane cultivation to increase productivity and value per unit area. When disease outbreaks occur, factories need to help farmers prevent and control diseases to protect the sugarcane crop…

Thuy Vinh(Provincial Radio Station)