Sugarcane is one of the main crops in the Eastern and Southeastern regions of the province, providing raw materials for An Khe Sugar Factory and Thanh Thanh Cong Gia Lai One Member Co., Ltd. However, in 2018, the market price of sugar fell, the purchase price of raw sugarcane from factories also decreased, causing sugarcane growers to suffer heavy losses, forcing them to switch to other crops.
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On June 15, 2021, the Ministry of Industry and Trade issued Decision No. 1578/QD-BCT on the application of official anti-dumping and anti-subsidy measures on a number of sugarcane products originating from the Kingdom of Thailand. Since then, sugar prices on the market have increased again and gradually stabilized, leading to an increase in raw sugarcane prices, helping sugarcane growers make a profit. In particular, in the 2022-2023 crushing season, sugar factories in the province purchased sugarcane at a price of nearly 1.1 million VND/ton of 10-sugar cane, not to mention transportation support, helping sugarcane growers achieve a profit of 35-50 million VND/ha.
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Mr. Dao Duy Phuoc (Ia Ake commune, Phu Thien district) said: “My family has rented land in Chu A Thai commune to grow about 80 hectares of sugarcane for many years. In previous years, although sugarcane prices were low, I still cooperated with Thanh Thanh Cong Gia Lai One Member Co., Ltd. to maintain the raw material area. In the past 2 years, the sugarcane price purchased by the Company has been stable, helping people have a good profit. Recently, I destroyed 30 hectares of old sugarcane to plant new ones to meet the Company's raw material needs in the 2023-2024 pressing season."
At this time, sugar factories in the province have finished the 2022-2023 pressing season and are focusing on investing in developing raw material areas to prepare for the 2023-2024 pressing season.
In the sugarcane raw material area in the East of the province, An Khe Sugar Factory is investing about 28,500 hectares of raw sugarcane to meet the pressing capacity of the Factory from 18,000 tons/day, preparing to increase to 20,000 tons/day. According to Mr. Tran Quang Kien - Factory Director: Each crop, the Factory supports about 350-400 billion VND without interest for land preparation, buying seeds, fertilizers... to help people boldly invest in developing the raw material area. In addition, the Factory buys at the lowest insurance price of not less than 900 thousand VND/ton of sugarcane and buys at market price when the price of raw sugarcane increases. These policies help ensure income for sugarcane growers, thereby making people feel secure in developing the raw material area.
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Mr. Huynh Van Hon - Vice Chairman of Dak Po District People's Committee - informed: In recent years, An Khe Sugar Factory has had many investment cooperation policies, supporting sugarcane growers in the district, helping people feel secure in developing the raw material area of more than 6,000 hectares. Hopefully in the coming years, sugarcane prices will continue to remain stable so that people can have a high income.
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In the Southeast region of the province, Thanh Thanh Cong Gia Lai One Member Co., Ltd. also focuses on investing in seeds, fertilizers, production mechanization, and installation of water-saving irrigation systems. In particular, the company applies 4.0 technology in managing sugarcane fields of each household, helping people feel secure in production and not worry about product output. Thanks to that, sugarcane productivity reaches an average of 80 tons/ha. To date, 4,000 sugarcane growing households have signed direct investment contracts without going through agents or traders with an area of 13,500 hectares, an increase of 2,000 hectares compared to the previous crushing season.
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However, according to the Director of An Khe Sugar Factory, the unit is facing difficulties because the raw material area that was previously planned has now expired. Therefore, the Factory proposed that the province demarcate the boundaries of the sugarcane raw material area for the factories to avoid the situation of competing to buy and disrupting the raw material area as well as ensuring the pressing time of the factories from 5 to 6 months. In addition, ensuring the development of biomass electricity, contributing to stabilizing sugarcane prices.
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Talking to reporters, Mr. Doan Ngoc Co - Deputy Director of the Department of Agriculture and Rural Development - said: In order for the province's sugarcane raw material area to develop sustainably, the Department will coordinate with local authorities to focus on reorganizing sugarcane production. Specifically, choosing soil suitable for sugarcane to develop; linking production with the processing value chain; promoting testing of new sugarcane varieties with high yield and resistance to harmful pests and diseases to put into production; applying mechanization and advanced irrigation technology, producing according to standards to improve sugarcane productivity and output.
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