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Table of Contents
Sugar: World Markets and Trade
Thailand’s sugar production and exports in 1998/99 are forecast to fall for the third straight year, to 4.2 and 2.6 million tons raw value. Sugar production has fallen by 32 percent from the record 1995/96 output, while exports have fallen from 4.5 million tons to 2.6 million tons. The Thai industry had expected another 6-million ton production year in 1997/98, with increased plantings, adoption of new planting technology, and strengthening prices. However, several local and global factors impacted the sugar industry. Thai millers and producers have struggled to overcome the adverse conditions of the past two years. The Asian financial crisis and low world sugar prices have helped to create a liquidity crisis within the industry that has affected the ability of mills and banks to pre-finance growers. The lack of financial support is beginning to affect the ability of growers to replant cane and has prompted some cane growers to substitute other crops that will provide faster returns on their investment and better prices. In addition to the financial difficulties that have been present in the Thai sugar sector, dry conditions for the past two years have led to a 30-percent reduction in sugar cane yields.
Approved by the World Agricultural Outlook Board/USDA
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