Processed products to provide industry sugar hit
Processed products to provide industry sugar hit
One of Savannakhet province's two raw sugar factories is set to begin producing processed sugar next year in a move that could reduce the cost of sugar products in Laos.
Mitr Lao Sugar began producing raw sugar and pressed sugarcane residue for export in 2007 before trying its hand with processed sugar in the 2011-12 fiscal year.
Savannakhet provincial Industry and Handicraft Section Deputy Head, Mr Thittaphone Koudvongsy, said the company was waiting on a quality certification for its processed sugar and planned to begin exporting the product next year.
He said 10 to 20 percent of its processed sugar would be sold on the domestic market, while the rest would be exported to neighbouring countries.
Mitr Lao Sugar exported about 27,500 tonnes of unprocessed sugar in 2011-12, worth about US$23 million, and 12,370 tonnes of residue, worth US$2.8 million.
Last year the company lifted its output to 29,600 tonnes of unprocessed product, pulling in US$30 million, and dropped its residue production to 9,400 tonnes, worth US$1.3 million.
This fiscal year Mitr Lao Sugar aims to produce 42,600 tonnes of unprocessed product, worth US$33.1 million, 16,650 tonnes of residue, worth US$2.4 million, and 500 tonnes of its new processed sugar product, worth US$356,000.
Savannakhet Sugar – the province's other sugar factory – began production in the 2011-12 fiscal year but still needs to take several steps before it can move to producing processed sugar.
In its first year, the company exported 14,000 tonnes of unprocessed product to receive US$10 million, plus 8,720 tonnes of residue worth US$775,000
This fiscal year the company plans to produce 15,360 tonnes of unprocessed product, worth US$9 million, and 5,500 tonnes of residue, worth US$495,000.
According to the provincial Agriculture and Forestry Department, the two companies planned to plant about 18,500ha of sugarcane this year but had only reached 15,500ha, of which 3,300ha are run by contracted farmers.
Investment by the two companies has helped to contribute to the province's economic development, with local residents and farmers receiving an income from the factories.
Most of sugar products consumed in Laos are imported from neighbouring countries and officials hope the price of sugar in Laos would drop if local factories could produce processed sugar.
vientiane times
