Droughts hit China's domestic sugar production

Recent droughts have dramatically reduced the domestic sugar harvest in China, according to new market estimates.

The adverse weather conditions meant that China produced 10.738 million tons of sugar in 2009/10 crop year, a decrease of 1.692 million tons against the previous crop year, down 13.9% year-on-year, a new Research and Markets report has warned.

The study, entitled, China Sugar Manufacturing Industry Report, 2010, notes that China is one of the major producers and consumers of sugar, and that the sugar output and consumption of China ranked 3rd and 2nd respectively worldwide in 2010. Sugar cane and sugar beet are the principal raw materials of sugar manufacturing in China; hereinto, sugar cane occupies approximately 90%.

In regard to sugar output, affected by the output reduction of sugar cane resulted from the drought in 2009, China produced 10.738 million tons of sugar in 2009/10 crop year, a decrease of 1.692 million tons against the previous crop year, down 13.9% year-on-year.

The rising living standards of Chinese residents and the rapid progress of sugar consumption industries like food industry and beverage industry has helped the sugar consumption in China to maintain around 14 million tons recent years. In 2009/10 crop year, the actual consumption of sugar in China arrived at 13.79 million tons.

Yet owing to the fact that the output failed to meet the demand, China imported 1.766 million tons of sugar in 2010, up 65.8% annually, according to the report.

source: procurementleaders