Solving the problem of improving sugarcane production efficiency

(Baonghean) - With 3 sugar factories currently in operation: Tate & Lyle Sugar Factory, Song Lam Sugar Factory, Song Con Sugar Factory, Nghe An has become one of the largest sugar cane production centers in the country. The sugar cane production industry has had a positive impact on sugar cane growers, on the socio-economic development of the province, especially in localities where factories are located.

HEvery year, the province's sugarcane growing area fluctuates from 26,000 ha - 32,000 ha. In the 2013 - 2014 crop year, Nghe An province planted 28,000 ha of raw sugarcane, with an average yield of 55 tons/ha. The total design capacity of the three factories is currently 12,000 tons of sugarcane per day. With the area and sugarcane yield, it basically meets the processing needs of the factories. For sugar factories nationwide, having a stable raw material area for processing is a dream. In Nghe An, to achieve that, the sugar industry has received great attention from Party committees at all levels, authorities, professional agencies, efforts from sugarcane processing companies, and the response of sugarcane growers.

However, the sugar production industry in the country in general and Nghe An sugar production in particular are still facing many difficulties. Sugarcane productivity is low, farmers have almost no profit. According to the assessment, after deducting costs, people only make a profit of 13,400,000 VND/ha. The selling price of products is low, sometimes selling lower than the production cost. The amount of sugar in stock is high, the quality of products is lower than other countries, and sugar consumption in the domestic market is facing many difficulties. Looking at countries with developed sugar production industries such as China, Thailand and even Laos, sugarcane production compared to domestic production still has many differences.

In the above countries, sugarcane growing areas are planned in good land areas, with proactive irrigation water, low material and fertilizer prices, so production costs are lower than in the country. Meanwhile, sugarcane productivity reaches 100 - 120 tons/ha, 2.5 times higher than in Vietnam. Regarding the processing stage, the governments of these countries have had programs to develop the sugarcane processing industry in the direction of investing in new, synchronous equipment and modern technology, so processing efficiency is high and sugar quality is guaranteed. In fact, in the period of 1998 - 2002, many domestic sugar processing enterprises imported old, outdated equipment lines from India and China. With almost absolute advantages in all stages from raw materials, equipment, production technology, business network, etc., sugar production in other countries is more efficient than domestic production and it is inevitable that Vietnamese sugar products will be competed with right at home.

Currently, the Government is imposing sugar import quotas and has policies to support the domestic sugar industry, so domestic sugar enterprises are gaining a foothold. With deeper and wider integration into the world market, equal competition between domestic and foreign enterprises is inevitable. At that time, difficulties for domestic enterprises will increase many times over. The general trend is that enterprises that do not innovate will fall behind or even be eliminated. The problem is how to improve the competitiveness of the domestic sugar industry, so that sugarcane farmers and sugar producers can both make a profit, ensuring effective social investment. To solve that problem, it is necessary to have the right investment strategy in the stages of raw materials, processing and product consumption.

For raw material production

Sugarcane harvest in Tan Ky. Photo: Cong Sang

In agricultural land planning, priority is often given to alluvial land, good land, and proactive irrigation for rice and color cultivation to ensure food security. Hilly land, semi-mountainous land, and land without proactive irrigation are planned for industrial crops, including sugarcane. Concentrating on rice production has made Vietnam the world's leading rice exporter, but people's income is low, and many people abandon their fields. The current mindset is to maximize people's income per unit area. Therefore, it is necessary to review the existing agricultural land area, rearrange suitable crops, and with sugarcane, it is necessary to adjust the planning in the direction of "lowering the mountain for sugarcane". Arrange areas that are less effective in growing rice and color to plant sugarcane based on comparing profit values. Sugarcane productivity only needs to reach 80 - 90 tons/ha, then people's income will be higher than current rice cultivation. With hilly land and semi-mountainous land, sugarcane cultivation is not effective and can be converted to grow other more suitable crops.

For product processing

In the processing stage, it can be said that the province's sugar processing factories have a lot of experience. Song Con Sugar Factory and Song Lam Sugar Factory have a team of skilled workers and every year have many scientific initiatives to improve the production line which are highly appreciated by the Provincial Science Council. The problem of these two factories is that the equipment is old and not synchronized. Song Lam Sugar Factory was established in the 60s of the last century. Song Con Sugar Factory was newly installed from 2000 - 2001 but the equipment is not advanced, modern and not synchronized. Although the staff and technical workers of the two factories are highly appreciated, they are helpless. Tate & Lyle Sugar Factory was built in 1998, the equipment is synchronous and modern, among the most in the country. This factory automates almost all stages. The company also applies ISO and HACCP quality management programs, so the staff operates professionally and has high discipline.

To produce effectively and produce competitive products in the market, enterprises in the province need to have a plan to invest in changing technological equipment. With old production technologies that are not suitable for producing poor or uncompetitive products, they need to boldly eliminate and invest in replacement. Sugar processing enterprises in the province are small and medium-sized enterprises, so investing in replacing advanced equipment, synchronized with modern technology, is difficult. However, enterprises need to determine that in order to produce quality products, achieve production efficiency, and products that are competitive in the market, equipment and technology factors need to be focused on.

Product consumption

Each unit chooses a suitable way to consume products, usually units choose to sell to distributors. Distributors will set up their own dealer network to bring products to the market. Manufacturers will avoid warehouse costs, build product sales counters, maintain marketing staff, sell products... However, manufacturers should not think that once the product leaves the factory, their responsibility is over. For products to be consumed smoothly in the market and accepted by consumers, product quality is still an important factor. Product quality needs to be concerned, in addition to investing in technological innovation, it is possible to apply programs to improve product quality, ensure food safety such as ISO, HACCP... In fact, Tate & Lyle Sugar Factory's products are highly competitive in the market thanks to their quality, brand, and even 10-15% higher prices are still accepted by consumers. In addition, manufacturing enterprises also need to consider the possibility of diversifying products and recovering by-products in the production process to increase production efficiency.

In order for sugar enterprises nationwide in general and enterprises in the province in particular to stand firm and promote efficiency, it is necessary to have the attention and orientation of the Party Committee, specialized agencies, local authorities, support and sharing of the people and especially the initiative of sugar processing enterprises themselves as the decisive factor. Enterprises are an important link in linking the four parties, proactively proposing to the management agency in planning raw material areas, closely linking with the people to invest in developing raw materials and at the same time deciding on investing in equipment and technology innovation. Enterprises need to correctly assess the reality, determine the development direction of their units, the development trend of the sugar industry nationwide in the process of international integration to propose the right measures to create stable and sustainable development.

Thai Tuan