Shrinking acreage, sugarcane juice price hits record high

Growing sugarcane for refreshment is bringing high income to people in some localities in Nghe An. Photo: Thanh Phuc

Mr. Tran Van Vinh's family in Dong Xuan hamlet, communeJiang Shan Dong(Do Luong) grows 10 sao of sugarcane on fertile land. For many years, sugarcane has been the main crop, bringing the main income for his family.

Mr. Vinh said: “Each sao of sugarcane, after deducting expenses, still makes a profit of 12-15 million/sao. However, because last year the price of sugarcane was low and it was difficult to sell, this year we do not dare to expand the area. My family still grows a lot, but many households have reduced it by half.”

For example, Mr. Nguyen Van Binh's household in Nguyen Tao hamlet only planted 3 sao of sugarcane this year (last year they planted 5 sao), Mr. Nguyen Ba Dung's household in Dong Xuan hamlet planted 6 sao, 3 sao less than previous years.

Last year, the price of sugarcane juice dropped sharply and it was difficult to sell, so people reduced their production area. Photo: Thanh Phuc

Mr. Le Thanh Son - ChairmanFarmers' AssociationGiang Son Dong commune (Do Luong) said: “Sugarcane juice (F34 sugarcane variety, super sweet sugarcane) is a traditional crop of Giang Son Dong commune. Sugarcane is drought-resistant and has high economic efficiency. For many years, sugarcane has been invested in and cared for to increase productivity per unit area; building concrete piles, making trellises to prevent sugarcane from falling. Productivity increased, and economic efficiency was clearly seen. However, in 2021, due to the Covid-19 epidemic, the price of sugarcane dropped sharply (only 20-25 million VND/ton) and it was difficult to sell, so people sharply reduced the area. In the 2022 sugarcane crop, the whole commune only planted 1.8 hectares of sugarcane, a decrease of 75% compared to the previous year.”

Due to the sharp decrease in acreage, this year, sugarcane prices increased to a record high of 7-7.5 million VND/ton (3 times higher than last year), but people do not have enough sugarcane to supply the market.

Sugarcane prices sold at the field are currently ranging from 7 to 7.5 million VND/ton, 3 times higher than previous years. Photo: Thanh Phuc

“The price of sugarcane has never increased as much as this year, 3-4 times higher. With this price, sugarcane growers make a lot of profit. However, unfortunately, due to concerns about the epidemic, people have reduced their acreage. Now traders are calling to place orders, the purchase price is up to 8 million VND/sao but there is still nothing to sell,” said Mr. Tran Van Vinh.

Not only households in Giang Son Dong commune, localities with a tradition of growing this type of sugarcane have also sharply reduced the area of ​​sugarcane for juice. Specifically, in Hoa Son, Tuong Son, Cam Son communes... (Anh Son) the area has decreased by 30-50% compared to previous years; Dien Lien, Dien Dong (Dien Chau) also reduced about 40% of the area of ​​sugarcane for juice; Tan Ky - a locality with sugarcane as the main crop also sharply reduced the area of ​​this type of sugarcane for refreshment...

Sugarcane prices hit a record high, but farmers do not produce enough to supply the market. Photo: Thanh Phuc

The reason is that last year, the sugarcane crop failed, the purchase price was low while the price of fertilizer materials increased, so people switched to other crops.

InVinh city, the price of sugarcane juice is sold wholesale at 9-9.5 million VND/ton (double compared to previous years).

Ms. Nguyen Huong - owner of a sugarcane dealer on Nguyen Canh Chan Street (Vinh City) said: "This year, the price of sugarcane for refreshment has increased dramatically. Sugarcane purchased at the field is already high, transportation costs have increased, so the price of sugarcane arriving in Vinh is already 8-8.5 million VND/ton. The price of imported sugarcane is high, so the selling price must be higher. The purchase in the province is not enough, so we have to import sugarcane mainly from Hoa Binh."

As sugarcane prices increase, so too does the price of sugarcane juice. Photo: Thanh Phuc

Sugarcane prices have been “escalating”, so beverage businesses are facing many difficulties. Previously, a glass of sugarcane juice cost 7,000 VND, but now it has increased to 10,000 VND; 1 liter of sugarcane juice has increased by 5,000 - 7,000 VND.