Central Food Retail, operators of Central Food Hall, Tops Super, Tops Market and Tops Daily, has invested 90 million baht in introducing its three own brands – Cooking for Fun, My Choice and TOPS. With their complete range of 1,000 premium-quality products and innovative designs that reflect a full range of customer lifestyles, these brands are completely differentiated from other house brands.
The popularity of house-brand products has been growing every year as consumers has pay more attention to value, quality and diversity of products, said Ms Chiranun Poopat, Senior Vice President – Buying & Merchandising and Marketing of Central Food Retail.
“As Thailand’s leading retail company, we have combined our expertise in premium product selection and consumer insights to develop our own brands of unique quality products to extend our business opportunities.
“A budget of 90 million baht has been set aside to develop the products under the Cooking for Fun, My Choice and TOPS brands, and quality is at the heart of all of them. We’re opting only for premium quality products from original sources across the world, and we treat them with processes that meet international standards. Meticulous care is also provided for packaging design to make all details modern and stylish, and representative of the lifestyles of the consumers,” she said.
Mr Nick Reitmeier, Vice President of Buying – Perishable, Produce, International Food, Wine and Own Brand, said that the own-brand products from Central Food Retail provided new, distinct choices for buyers. The company would continually extend the product lines to cover all consumer’s needs from 1,000 items this year to 1,500 items in 2010. In the past 10 months, sales of these products have already totalled more than 400 million baht.
Prominent characteristics of CFR’s Own Brands are:
Cooking for Fun – Our Chef’s Choice enables you to enjoy special meals with premium-quality products that have been thoughtfully selected. A wide range of cooking ingredients -- perishable food produce, dried food, ready-to-cook items, seasonings, spices, kitchen utensils – is available. Customers can find best quality products such as pure olive oil, balsamic vinegar, pasta of all kinds, organic rice, jasmine rice, Natural Pork and jumbo-sized eggs. Cooking for Fun products are available at all branches of Central Food Hall and Tops Market.
My Choice – Make the Right Choice This level of best quality products provides new culinary experiences with many kinds of consumer items and ready-to-eat meals. These include penne pasta with tomato sauce, rice with sea bass Chu Chee Curry, pork tenderloin with garlic and pepper on rice, mixed salads, waffles, soft cookies, pure longan flower honey, instant coffee, juices, ready-to-drink green tea and fresh water. You can find My Choice products at all branches of Central Food Hall and Tops Market.
TOPS – Quality Makes Us Different Every item represents our best choice at every step of the processes, from ingredient selection and flavour to quality control and package design. Most customers’ needs will be met by TOPS’ range of items, whose value compares favourably with other leading proprietary brands. They include jasmine rice, soybean oil, large-sized eggs, imitation crabmeat, croutons, instant creamer, canned food, dried fruit, paper towels, dishwashing and cleaning products and a wide variety of housewares. TOPS products are available at all branches of Tops Market, Tops Super and Tops Daily.
Discover the exciting, innovative advantages of Own Brand products at all 117 branches of Central Food Hall, Tops Market, Tops Super and Tops Daily.
Friday, November 20, 2009
Sunday, November 8, 2009
Sugarcane price poised to hit B950
Sugarcane farmers will enjoy a record high cane price of nearly 1,000 baht a tonne this season, thanks to the global sugar deficit that has pushed up global sugar prices to a 28-year high.
"Cane farmers can expect to gain 950 baht a tonne during this 2009-10 harvesting season, a record high in local cane history," said Prasert Tapaneeyangkul, the secretary-general of the Office of the Cane and Sugar Board (OCSB).
The price is for cane with a commercial cane sugar (CCS) rating of 10,the total recoverable sugar percentage.
The government's record high price is calculated based on the export sugar quota, of which around 70% has been committed to sales contracts at a high 19.75 US cents per pound at the exchange rate at 35 baht per dollar.
"This is the highest price ever for the local cane industry. Farmers should be happy as it is a considerable increase from 830 baht per tonne they earned last year while the cost of production is relatively unchanged from the previous year. It is a wonderful year for the sugar industry," Mr Prasert said.
The early arrival of winter breezes should also enhance cane sweetness.Mr Prasert said that 70% of cane farmers may have output with a higher CCS of 12.28, for which they may earn up to 1,043 baht per tonne.
The OCSB expects the factories to start crushing this month. It hopes to see 71.44 million tonnes of cane crushed in this season, a 7.49% increase from 66.46 million tonnes last year. The rise in production is the result of good cane prices since last year which attract more growers.
Sugar production is expected to reach 7.61 million tonnes this year, a 6% increase from 7.18 million tonnes produced last year, with 5.5 million tonnes allocated for export sales.
The board also agreed to increase domestic sugar allocation to 2.1 million tonnes from 1.9 million last year.
"This is because we expect food processors for export, who usually purchase cheaper export sugar, to shift to domestic sugar as the export price may be more expensive than the local one,"Mr Prasert said.
At present, the domestic price is much cheaper than the export price.
"Cane farmers can expect to gain 950 baht a tonne during this 2009-10 harvesting season, a record high in local cane history," said Prasert Tapaneeyangkul, the secretary-general of the Office of the Cane and Sugar Board (OCSB).
The price is for cane with a commercial cane sugar (CCS) rating of 10,the total recoverable sugar percentage.
The government's record high price is calculated based on the export sugar quota, of which around 70% has been committed to sales contracts at a high 19.75 US cents per pound at the exchange rate at 35 baht per dollar.
"This is the highest price ever for the local cane industry. Farmers should be happy as it is a considerable increase from 830 baht per tonne they earned last year while the cost of production is relatively unchanged from the previous year. It is a wonderful year for the sugar industry," Mr Prasert said.
The early arrival of winter breezes should also enhance cane sweetness.Mr Prasert said that 70% of cane farmers may have output with a higher CCS of 12.28, for which they may earn up to 1,043 baht per tonne.
The OCSB expects the factories to start crushing this month. It hopes to see 71.44 million tonnes of cane crushed in this season, a 7.49% increase from 66.46 million tonnes last year. The rise in production is the result of good cane prices since last year which attract more growers.
Sugar production is expected to reach 7.61 million tonnes this year, a 6% increase from 7.18 million tonnes produced last year, with 5.5 million tonnes allocated for export sales.
The board also agreed to increase domestic sugar allocation to 2.1 million tonnes from 1.9 million last year.
"This is because we expect food processors for export, who usually purchase cheaper export sugar, to shift to domestic sugar as the export price may be more expensive than the local one,"Mr Prasert said.
At present, the domestic price is much cheaper than the export price.
Tuesday, October 20, 2009
INEFFICIENCY THREATENS THAI FARM PRODUCTS UNDER AFTA
Three major Thai farm goods - coffee beans, rice and palm oil - will lose their competitiveness under the Asean Economic Community if farmers and the government neglect to increase productivity and cut production costs, researchers warned yesterday.
A study by the University of the Thai Chamber of Commerce's International Trade Study Centre showed those three goods stood to lose a combined US$60 million (Bt2 billion) to other Asean countries after liberalisation once the Asea Free Trade Agreement (Afta) comes into effect next year.
Cenyre director Art Pisanwanich said present inefficiency in productivity, logistics and cost management would hurt the competitiveness of Thai farm products under Afta.
"Although overall exports of major farm goods will increase following trade liberalisation, the market share of Thai exports in other Asean countries will decrease, because Thailand is inefficient when it comes to productivity and cost management," said Aat.
Thai farmers must urgently develop their productivity, in order to ensure their competitiveness within Asean. They must also decrease costs for production and lofistics and diversify from commodities to high-value-added goods.
The government should draw up a strategy to strengthen agricultural practices - one that not only promotes higher prices via intervention schemes, but also development of productivity.
Aat said that local rice productivity was the lowest among Asean countries. For example, in this year's crop, the yield per rai for rice is 452 kilograms in Thailand, 579kh in Laos and Malaysia, 611kg in the Philippines, 787kg in Indonesia and 792kg in Vietnam.
Local coffee beans will be hardest hit by Vietnam. Thailand's Asean market share of the product will decline 0.1 per cent, or US$200,000 (Bt6.68 million), to Vietnam's benefit between next year and 2015.
Thailand's export market share in Asean for coffee beans is now 2.8 per cent, while Vietnam commands 61.1 per cent.
Rice, Thailand's major export crop, will also lose to Vietnam. About 0.5 per cent of the market share, worth $13 million, will pass to that country. For palm oil, 2.6 per cent of the market share, worth $46 million, will go to Malaysia.
At president, Thai rice exports crop, will also lose to Vietnam. About 0.5 per cent of the market share, worth $13 million, will pass to that country. For palm oil, 2.6 per cent of the market share, worth $46 million, will go to Malaysia.
At present, Thai rice exports have a 28.9-per-cent market share within Asean, while Vietnam enjoys 71.1 per cent. Thai palm oil has a 6.4-per-cent market share in Asean, while Malaysia commands 34.4 per cent.
Tapioca will be the only major Thai agricultural export to enjoy a higher market share within Asean, increasing 0.1 per cent, or $5,000.
Import tariffs on rice and palm oil, which are 5 per cent now, will be elimated next year. Thailand's tariff on coffee beans will be reduced from 30 per cent to 20 per cent next year and then 5 per cent in 2015, because the Kingdom classifies coffee beans as a sensitive product.
Chainant Ukosakul, vice chairman of the unversity's committee on trade rules and international trade, questioned whether Thailand was ready for free trade in Asean, saying the government had no sustainable or integrated plans for developing agriculture.
He urged the government to draw up plans to develop the various farm sectors and improve efficiency in custom procedures, in order to serve trade liberalisation under the AEC next year.
A study by the University of the Thai Chamber of Commerce's International Trade Study Centre showed those three goods stood to lose a combined US$60 million (Bt2 billion) to other Asean countries after liberalisation once the Asea Free Trade Agreement (Afta) comes into effect next year.
Cenyre director Art Pisanwanich said present inefficiency in productivity, logistics and cost management would hurt the competitiveness of Thai farm products under Afta.
"Although overall exports of major farm goods will increase following trade liberalisation, the market share of Thai exports in other Asean countries will decrease, because Thailand is inefficient when it comes to productivity and cost management," said Aat.
Thai farmers must urgently develop their productivity, in order to ensure their competitiveness within Asean. They must also decrease costs for production and lofistics and diversify from commodities to high-value-added goods.
The government should draw up a strategy to strengthen agricultural practices - one that not only promotes higher prices via intervention schemes, but also development of productivity.
Aat said that local rice productivity was the lowest among Asean countries. For example, in this year's crop, the yield per rai for rice is 452 kilograms in Thailand, 579kh in Laos and Malaysia, 611kg in the Philippines, 787kg in Indonesia and 792kg in Vietnam.
Local coffee beans will be hardest hit by Vietnam. Thailand's Asean market share of the product will decline 0.1 per cent, or US$200,000 (Bt6.68 million), to Vietnam's benefit between next year and 2015.
Thailand's export market share in Asean for coffee beans is now 2.8 per cent, while Vietnam commands 61.1 per cent.
Rice, Thailand's major export crop, will also lose to Vietnam. About 0.5 per cent of the market share, worth $13 million, will pass to that country. For palm oil, 2.6 per cent of the market share, worth $46 million, will go to Malaysia.
At president, Thai rice exports crop, will also lose to Vietnam. About 0.5 per cent of the market share, worth $13 million, will pass to that country. For palm oil, 2.6 per cent of the market share, worth $46 million, will go to Malaysia.
At present, Thai rice exports have a 28.9-per-cent market share within Asean, while Vietnam enjoys 71.1 per cent. Thai palm oil has a 6.4-per-cent market share in Asean, while Malaysia commands 34.4 per cent.
Tapioca will be the only major Thai agricultural export to enjoy a higher market share within Asean, increasing 0.1 per cent, or $5,000.
Import tariffs on rice and palm oil, which are 5 per cent now, will be elimated next year. Thailand's tariff on coffee beans will be reduced from 30 per cent to 20 per cent next year and then 5 per cent in 2015, because the Kingdom classifies coffee beans as a sensitive product.
Chainant Ukosakul, vice chairman of the unversity's committee on trade rules and international trade, questioned whether Thailand was ready for free trade in Asean, saying the government had no sustainable or integrated plans for developing agriculture.
He urged the government to draw up plans to develop the various farm sectors and improve efficiency in custom procedures, in order to serve trade liberalisation under the AEC next year.
Friday, October 2, 2009
B3bn loans sought for equipment
The Office of the Cane and Sugar Board is seeking cabinet approval for 3 billion baht of loans to help cane farmers buy mechanised cane-cutters to alleviate a labour shortage in the sector.
The use of cane-cutting trucks would help overcome a shortfall of workers that has persisted for years in the labourintensive cane-cutting industry, said Prasert Tapaneeyangkul, the secretarygeneral of the OCSB.
"The OCSB is seeking the cabinet's approval for Bank for Agriculture and Agricultural Co-operatives (BAAC) to grant cane farmers 3 billion baht in loans for three harvesting seasons, starting from the current season to purchase cane cutting trucks," he said.
The trucks, which cost 5-10 million baht each, can cut 200 to 500 tonnes of cane per day compared with one to two tonnes per manual worker. Up to 700,000 workers are needed to harvest the 6.2 million rai of cane plantations this season.
"Normally, cane cutting needs to be done within 100 days. Some farmers have opted to use fire tactics to speed up cane cutting but this often ends up burning the cane and reducing yields and the sweetness," said Mr Prasert.
"Using fire should not be the option.Machinery use will solve the labour shortage," he added.
To promote the use of technology,the OCSB will provide interest rate subsidies to encourage farmers to apply for the proposed loans. Subsidy rates could vary between 3.5% and 5.5% depending on BAAC decision, he said.
Meanwhile, the OCSB is preparing to issue a statement to counter US claims that the Thai sugar industry exploits child and illegal labour.
The office will call a meeting with cane farmers' associations and sugar millers to compile a report to counter the accusations."We export only 17,000 tonnes of sugar to the US. But as we are the world's third largest sugar exporter,we need to defend ourself against this allegation that needs to be corrected to maintain our reputation," he said.
Other industries such as garments and prawn farms have faced similar allegations. The Foreign Ministry and the Commerce Ministry's Foreign Trade Department are preparing to respond to the allegations, Mr Prasert said.
The use of cane-cutting trucks would help overcome a shortfall of workers that has persisted for years in the labourintensive cane-cutting industry, said Prasert Tapaneeyangkul, the secretarygeneral of the OCSB.
"The OCSB is seeking the cabinet's approval for Bank for Agriculture and Agricultural Co-operatives (BAAC) to grant cane farmers 3 billion baht in loans for three harvesting seasons, starting from the current season to purchase cane cutting trucks," he said.
The trucks, which cost 5-10 million baht each, can cut 200 to 500 tonnes of cane per day compared with one to two tonnes per manual worker. Up to 700,000 workers are needed to harvest the 6.2 million rai of cane plantations this season.
"Normally, cane cutting needs to be done within 100 days. Some farmers have opted to use fire tactics to speed up cane cutting but this often ends up burning the cane and reducing yields and the sweetness," said Mr Prasert.
"Using fire should not be the option.Machinery use will solve the labour shortage," he added.
To promote the use of technology,the OCSB will provide interest rate subsidies to encourage farmers to apply for the proposed loans. Subsidy rates could vary between 3.5% and 5.5% depending on BAAC decision, he said.
Meanwhile, the OCSB is preparing to issue a statement to counter US claims that the Thai sugar industry exploits child and illegal labour.
The office will call a meeting with cane farmers' associations and sugar millers to compile a report to counter the accusations."We export only 17,000 tonnes of sugar to the US. But as we are the world's third largest sugar exporter,we need to defend ourself against this allegation that needs to be corrected to maintain our reputation," he said.
Other industries such as garments and prawn farms have faced similar allegations. The Foreign Ministry and the Commerce Ministry's Foreign Trade Department are preparing to respond to the allegations, Mr Prasert said.
STRATEGY TO FOCUS ON CORE BUSINESSES
The Wattanavekin family plans to expand its key businesses-hotels and sugar mills.
Khunying Natthika Wattanavekin said the family has developed a new strategy for its hotel business, which is run by The Erawan Group, an equal joint venture between the Wattanavekin and Wongkusolkit families. The latter operates the Mitrphol Sugar Group of sugar-mill operators.
"We have delayed about four new hotel projects, mainly upcountry, including the I-Bis hotel in Hua Hin. We will focus on refurbishing our existing hotel properties, such as the Grand Hyatt [Erawan] in Bangkok and the Hyatt Regency in Hua Hin, to prepare for the recovery of the local tourism sector, which is expected next year," said Natthika, who is on the board of directors at the Grand Hyatt Erawan Hotel.
The Erawan Group operates 15 hotels run by international chains including Grand Hyatt, JW Mariott, Courtyard, Renaissance, I-Bis and Sixth Sense. The group recently opened a 300-room Holiday Inn in Pattaya.
"Three to four years ago, we launched our strategy, selling Amarin Plaza, a shopping complex at the Ratchprasong internation, back to the landlord so that we could concentrate on constructing and developing hotels, which is our field of expertise.
"After building them, we appoint international chains to run our hotel properties," said Natthika.
She said the group had set an investment budget of about Bt200 million to renovate the eight-year-old Hyatt Regency Hua Hin.
"So far this year we have renovate half of the 211 guestrooms and the lobby of our Hyatt Regency Hua Hin hotel. The renovations of the rest of the hotel's guestrooms and the Regency Club will be completed by the end of this year" said Natthika.
She said the group would also renovate the balcony area of the Grand Hyatt Erawan by the end of this year to include a restaurant serving international cuisine.
"We have also restructured The Erawan Group by promoting top executives to the board of directors," said Natthika.
Natthika said the Wattanavekin family had three major business groups, which include both joint ventures and owned firms: the hotel group, the sugar-mill business, and the Kiatnakin Group of banks and financial institutions.
"We run the businesses professionally, transparently and according to the ethical code and philosophy of my father, Kiat Wattanavekin, founder of the Kiatnakin Group," she said, adding that the family started in the liquor and construction businesses before diversifying into sugar milling and finance about 50 years ago.
Natthika is also chairman and CEO of Eastern Sugar Group, which operates a sugar will in Sa Kaew province.
The group recently upgraded the processing machines at the sugar mill to increase production capacity to 21,000 tonnes a day from 18,000 tonnes.
"We have received permission from the local authorities to increase our production capacity by another 12,000 tonnes a day.
"We will complete this additional expansion within the next three to five years," she said.
Natthika said the group recently expanded its sugar operation by producing ethanol from molasses. With an additional investment of more than Bt1 billion, the factory is now able to produce 150,000 litres of ethanol a day.
Applying the Alfa Lava and Delta T production system originated in the US, the factory is able to produce ethanol from both sugar molasses and tapioca chips.
Natthika, who is also chairman of the Thai Sugar and Bio-Energy Producers Association, said the government should draw up medium-and long-term plans to support and promote the productivity of local sugarcane farmers, especially in the areas of water resources, and research and development of news sugar-cane genes.
Khunying Natthika Wattanavekin said the family has developed a new strategy for its hotel business, which is run by The Erawan Group, an equal joint venture between the Wattanavekin and Wongkusolkit families. The latter operates the Mitrphol Sugar Group of sugar-mill operators.
"We have delayed about four new hotel projects, mainly upcountry, including the I-Bis hotel in Hua Hin. We will focus on refurbishing our existing hotel properties, such as the Grand Hyatt [Erawan] in Bangkok and the Hyatt Regency in Hua Hin, to prepare for the recovery of the local tourism sector, which is expected next year," said Natthika, who is on the board of directors at the Grand Hyatt Erawan Hotel.
The Erawan Group operates 15 hotels run by international chains including Grand Hyatt, JW Mariott, Courtyard, Renaissance, I-Bis and Sixth Sense. The group recently opened a 300-room Holiday Inn in Pattaya.
"Three to four years ago, we launched our strategy, selling Amarin Plaza, a shopping complex at the Ratchprasong internation, back to the landlord so that we could concentrate on constructing and developing hotels, which is our field of expertise.
"After building them, we appoint international chains to run our hotel properties," said Natthika.
She said the group had set an investment budget of about Bt200 million to renovate the eight-year-old Hyatt Regency Hua Hin.
"So far this year we have renovate half of the 211 guestrooms and the lobby of our Hyatt Regency Hua Hin hotel. The renovations of the rest of the hotel's guestrooms and the Regency Club will be completed by the end of this year" said Natthika.
She said the group would also renovate the balcony area of the Grand Hyatt Erawan by the end of this year to include a restaurant serving international cuisine.
"We have also restructured The Erawan Group by promoting top executives to the board of directors," said Natthika.
Natthika said the Wattanavekin family had three major business groups, which include both joint ventures and owned firms: the hotel group, the sugar-mill business, and the Kiatnakin Group of banks and financial institutions.
"We run the businesses professionally, transparently and according to the ethical code and philosophy of my father, Kiat Wattanavekin, founder of the Kiatnakin Group," she said, adding that the family started in the liquor and construction businesses before diversifying into sugar milling and finance about 50 years ago.
Natthika is also chairman and CEO of Eastern Sugar Group, which operates a sugar will in Sa Kaew province.
The group recently upgraded the processing machines at the sugar mill to increase production capacity to 21,000 tonnes a day from 18,000 tonnes.
"We have received permission from the local authorities to increase our production capacity by another 12,000 tonnes a day.
"We will complete this additional expansion within the next three to five years," she said.
Natthika said the group recently expanded its sugar operation by producing ethanol from molasses. With an additional investment of more than Bt1 billion, the factory is now able to produce 150,000 litres of ethanol a day.
Applying the Alfa Lava and Delta T production system originated in the US, the factory is able to produce ethanol from both sugar molasses and tapioca chips.
Natthika, who is also chairman of the Thai Sugar and Bio-Energy Producers Association, said the government should draw up medium-and long-term plans to support and promote the productivity of local sugarcane farmers, especially in the areas of water resources, and research and development of news sugar-cane genes.
Friday, September 25, 2009
GOVT URGED TO STABILISE ETHANOL COSTS
Ethanol manufacturers are calling for the government to increase ethanol reserves to stabilise production costs, which have risen in line with sugar prices and thus affected oil retailers.
"We've already proposed this solution to the government, but they don't seem very interested. They prefer we store ethanol ourselves instead of crops, but that requires an investment in tanks, which in turn risks evaporation and explosion," said Thai Ethanol Manufacturing Association chairman Sirivuthi Siamphakdee.
He said it was easier to store molasses, the main raw material in ethanol production.
Thailand's promotion of gasohol will not be successful unless the government solves fluctuations in the price of ethanol, Sirivuthi said. The Energy Ministry fixed the price at Bt20.21 a litre this month, but that will probably rise to Bt25 or Bt26 in the fourth quarter, due mainly to an increase in the price of molasses.
Oil retailers who mix 10-per-cent ethanol into gasohol products complain the high prices are preventing them from lowering their retail oil rates when global crude drops.
"Thailand's ethanol price changes too rapidly, because the government announces the reference price each month based on the average molasses price over the previous three months, which is not up to date with present conditions. Instead, it should set the price on a quarterly basis," he said.
He said molassas was now going for US$140 (Bt4,700) per tonne, but the Office of the Cane and Sugar Cane Board has announced a price of $110.
Molasses is expected to be more costly next year from reduced supply, and ethanol producers may not be able to handle the pressure of high costs and low selling price, he added.
So far, 45 ethanol plants have won production licences, but only 18 have started operations, with combined daily production capacity of 2.775 million litres. By the end of next year, five more plants are expected to operate, which will boost the country's ethanol supply to 5.695 million litres a day.
However, ethanol consumption is forecast to increase from 1.56 million litres a day now to 2.21 million litres next year, due to the government's promotion of alternative energy.
The price of molasses will move in line with sugar, which is expected to rise in the next couple of years because of higher imports by India and Indonesia, which have suffered drought, said Chalush Chinthammit, assistant vice president for business development and production at the KSL Group.
Next March and April, raw sugar could exceed 20 cents a pound, due to speculation by hedging funds, he said.
Thanks to higher prices in the 2009-10 harvest season, about 72 million tonnes of sugar cane is expected, up from 66.46 million tonnes in the previous season. The primary price of sugar cane will be Bt950 a tonne, but future increases will push sugar cane to about Bt1.1 billion per tonne.
"Oil retailers complain the high prices are preventing them from lowering their retail oil rates when global crude drops."
"We've already proposed this solution to the government, but they don't seem very interested. They prefer we store ethanol ourselves instead of crops, but that requires an investment in tanks, which in turn risks evaporation and explosion," said Thai Ethanol Manufacturing Association chairman Sirivuthi Siamphakdee.
He said it was easier to store molasses, the main raw material in ethanol production.
Thailand's promotion of gasohol will not be successful unless the government solves fluctuations in the price of ethanol, Sirivuthi said. The Energy Ministry fixed the price at Bt20.21 a litre this month, but that will probably rise to Bt25 or Bt26 in the fourth quarter, due mainly to an increase in the price of molasses.
Oil retailers who mix 10-per-cent ethanol into gasohol products complain the high prices are preventing them from lowering their retail oil rates when global crude drops.
"Thailand's ethanol price changes too rapidly, because the government announces the reference price each month based on the average molasses price over the previous three months, which is not up to date with present conditions. Instead, it should set the price on a quarterly basis," he said.
He said molassas was now going for US$140 (Bt4,700) per tonne, but the Office of the Cane and Sugar Cane Board has announced a price of $110.
Molasses is expected to be more costly next year from reduced supply, and ethanol producers may not be able to handle the pressure of high costs and low selling price, he added.
So far, 45 ethanol plants have won production licences, but only 18 have started operations, with combined daily production capacity of 2.775 million litres. By the end of next year, five more plants are expected to operate, which will boost the country's ethanol supply to 5.695 million litres a day.
However, ethanol consumption is forecast to increase from 1.56 million litres a day now to 2.21 million litres next year, due to the government's promotion of alternative energy.
The price of molasses will move in line with sugar, which is expected to rise in the next couple of years because of higher imports by India and Indonesia, which have suffered drought, said Chalush Chinthammit, assistant vice president for business development and production at the KSL Group.
Next March and April, raw sugar could exceed 20 cents a pound, due to speculation by hedging funds, he said.
Thanks to higher prices in the 2009-10 harvest season, about 72 million tonnes of sugar cane is expected, up from 66.46 million tonnes in the previous season. The primary price of sugar cane will be Bt950 a tonne, but future increases will push sugar cane to about Bt1.1 billion per tonne.
"Oil retailers complain the high prices are preventing them from lowering their retail oil rates when global crude drops."
El Nino brings sweet deals to cane growers
Local cane farmers and the sugar industry are expected to benefit from high global sugar demand and prices over the next 2-3 years, according Sirivuthi Siamphakdee, vice-chairman of the Thai Sugar Millers Corporation.
Climate change as a result of the El Nin~ o effect will likely continue to suppress global sugar production in the coming years.
Global sugar production is growing yearly but at a slower pace than demand, as the climate change have an impact on the yields of the world's large sugar producers.
"Since weather is an uncontrollable factor, finding solutions to this problem may take two or three years so sugar prices should be high for a while," Mr Sirivuthi said.
As well, production costs are likely to be steady or to increase because crude prices are projected to rise further in line with the recovering global economy.
In addition, Mr Sirivuthi said global sugar demand was not the sole dominant factor in determining its price.The product has in recent years become an appealing commodity for speculation.
"White refined sugar is trading in the global market at about $580 per tonne at present, with a trend to rise to $600 sometime soon. So the overall outlook of the industry's income from exports will still be bright over the next few years," he said.
At this rate, exported sugar remains relatively more expensive than domestic sugar and does not provide a persuasive margin for traders to smuggle the domestic output for sale to overseas consumers.
Chalush Chinthammit, assistant vice-president of KSL Group Plc, pointed out that local authorities should find measures to block illegal attempts to export local sugar only when the export price surges above $600 per tonne.
"Next month, related industry bodies will discuss domestic sugar allocation for the following harvesting year, which should be higher than this year's allotted quotas due to the yearly increase in domestic consumption," Mr Chalush said.
"So even if the export price is higher,ensuring sufficiency of domestic consumption is the first priority."
So far, millers and farmers have sold 72% of the export quota in the 2009-10 harvesting year at an average price of 18 cents per kilogramme.
The earlier-than-usual selling agreements are attributed mainly to the attractive price.
Thanks to these factors, local cane farmers can expect to receive more than 1,000 baht per tonne for their cane, compared to 830 baht in the 2008-09 harvesting season.
The crops with higher CCS or sweetness yield should fetch even more per tonne, an incentive for cane farmers to work harder to increase their yields and expand cultivation land.
Mr Sirivuthi, also president of the Thai Ethanol Manufacturers Association, also discussed the ethanol price outlook, saying that the price of molasses had risen lately due to seasonal tight supply, which should improve when the cane-crushing season starts in November.
He still insists the molasses price increase has nothing to do with expensive sugar prices.
"One way to solve this is for petrol operators to increase their ethanol stocks. The Energy Ministry has introduced this initiative, as well as regulations to stabilise the ethanol price,"said Mr Sirivuthi.
Climate change as a result of the El Nin~ o effect will likely continue to suppress global sugar production in the coming years.
Global sugar production is growing yearly but at a slower pace than demand, as the climate change have an impact on the yields of the world's large sugar producers.
"Since weather is an uncontrollable factor, finding solutions to this problem may take two or three years so sugar prices should be high for a while," Mr Sirivuthi said.
As well, production costs are likely to be steady or to increase because crude prices are projected to rise further in line with the recovering global economy.
In addition, Mr Sirivuthi said global sugar demand was not the sole dominant factor in determining its price.The product has in recent years become an appealing commodity for speculation.
"White refined sugar is trading in the global market at about $580 per tonne at present, with a trend to rise to $600 sometime soon. So the overall outlook of the industry's income from exports will still be bright over the next few years," he said.
At this rate, exported sugar remains relatively more expensive than domestic sugar and does not provide a persuasive margin for traders to smuggle the domestic output for sale to overseas consumers.
Chalush Chinthammit, assistant vice-president of KSL Group Plc, pointed out that local authorities should find measures to block illegal attempts to export local sugar only when the export price surges above $600 per tonne.
"Next month, related industry bodies will discuss domestic sugar allocation for the following harvesting year, which should be higher than this year's allotted quotas due to the yearly increase in domestic consumption," Mr Chalush said.
"So even if the export price is higher,ensuring sufficiency of domestic consumption is the first priority."
So far, millers and farmers have sold 72% of the export quota in the 2009-10 harvesting year at an average price of 18 cents per kilogramme.
The earlier-than-usual selling agreements are attributed mainly to the attractive price.
Thanks to these factors, local cane farmers can expect to receive more than 1,000 baht per tonne for their cane, compared to 830 baht in the 2008-09 harvesting season.
The crops with higher CCS or sweetness yield should fetch even more per tonne, an incentive for cane farmers to work harder to increase their yields and expand cultivation land.
Mr Sirivuthi, also president of the Thai Ethanol Manufacturers Association, also discussed the ethanol price outlook, saying that the price of molasses had risen lately due to seasonal tight supply, which should improve when the cane-crushing season starts in November.
He still insists the molasses price increase has nothing to do with expensive sugar prices.
"One way to solve this is for petrol operators to increase their ethanol stocks. The Energy Ministry has introduced this initiative, as well as regulations to stabilise the ethanol price,"said Mr Sirivuthi.
Wednesday, September 16, 2009
INDUSTRIES READY TO STAND IN DEFENCE AGAINST US CHARGES
Three Thai industries-shrimp, garment and sugar-may face difficulties in exports to the US next year due to accusations of hiring child and migrant labour.
Kessiri Siripakorn, minister (commercial) for the Office of Commercial Affairs in Washington DC, said the US Labour Department had issued an announcement against the industries.
"Thai industries will have 90 days, until the middle of December, to clarify about the accusations. If they may be subjected to trade barriers," said Kessiri.
She called for the government and related industries to discuss the matter and present clear evidence to defend their industries.
Kessiri warned that under the Barack Obama administration, all industries must be aware of new non-tariff barriers, particularly ones focusing on labour and environment.
Thai manufacturers would face greater difficulties in exporting if they do not promptly deal with rising non-tariff barriers, she said.
Poj Aramwattananont, president of Thai Frozen Foods Association, said the US government report was untrue and the association had already presented evidence to the US Embassy in Bangkok.
The association will also present evidence regarding the matter to Washington as the association has frequently worked in cooperation with Immigration Custom Enforcement for inspecting all factories and their suppliers to ensure they have not hired any child or migrant labour in the industry.
So far, more than 1,000 factories have been investigated. The industry employs more than a million people. We are confident no child or migrant labour was hired in our industry, Poj said.
To ensure that the shrimp and other industries will not face any obstacles resulting from the report, the association will soon meet the Foreign Ministry and related Thai government agencies to clarify the issue to the US government.
Wallop Vitanakorn, secretary general of the Thai Garment Manufacturers Association, said the US report must have been the result of a misunderstanding.
He said most garment exporters to the US must normally comply with high standards required by their importers, including labour issues.
Export of garments to the US must follow a "code of conduct" which specifies that no migrant labour of child labour must be hired in the industry. Moreover, under the agreement between Thai garment manufacturers and American buyers, it states that employers must have a fair contract with laborers, including restricting maximum period of work to 60 hours a week, and set a fair payment and days off, as per the law.
Wallop said American buyers also regularly send teams to inspect their factories every six months to ensure the producers had followed the code of conduct.
He said it was impossible for garment exporters to break this tight rule. The association will soon cooperate with the Thai government and collect information to defend against this accusation.
Under the Barack Obama administration, all industries must be aware of new no tariff barriers, particularly ones focusing on labour and environment.
Kessiri Siripakorn, minister (commercial) for the Office of Commercial Affairs in Washington DC, said the US Labour Department had issued an announcement against the industries.
"Thai industries will have 90 days, until the middle of December, to clarify about the accusations. If they may be subjected to trade barriers," said Kessiri.
She called for the government and related industries to discuss the matter and present clear evidence to defend their industries.
Kessiri warned that under the Barack Obama administration, all industries must be aware of new non-tariff barriers, particularly ones focusing on labour and environment.
Thai manufacturers would face greater difficulties in exporting if they do not promptly deal with rising non-tariff barriers, she said.
Poj Aramwattananont, president of Thai Frozen Foods Association, said the US government report was untrue and the association had already presented evidence to the US Embassy in Bangkok.
The association will also present evidence regarding the matter to Washington as the association has frequently worked in cooperation with Immigration Custom Enforcement for inspecting all factories and their suppliers to ensure they have not hired any child or migrant labour in the industry.
So far, more than 1,000 factories have been investigated. The industry employs more than a million people. We are confident no child or migrant labour was hired in our industry, Poj said.
To ensure that the shrimp and other industries will not face any obstacles resulting from the report, the association will soon meet the Foreign Ministry and related Thai government agencies to clarify the issue to the US government.
Wallop Vitanakorn, secretary general of the Thai Garment Manufacturers Association, said the US report must have been the result of a misunderstanding.
He said most garment exporters to the US must normally comply with high standards required by their importers, including labour issues.
Export of garments to the US must follow a "code of conduct" which specifies that no migrant labour of child labour must be hired in the industry. Moreover, under the agreement between Thai garment manufacturers and American buyers, it states that employers must have a fair contract with laborers, including restricting maximum period of work to 60 hours a week, and set a fair payment and days off, as per the law.
Wallop said American buyers also regularly send teams to inspect their factories every six months to ensure the producers had followed the code of conduct.
He said it was impossible for garment exporters to break this tight rule. The association will soon cooperate with the Thai government and collect information to defend against this accusation.
Under the Barack Obama administration, all industries must be aware of new no tariff barriers, particularly ones focusing on labour and environment.
Brisk sales to India
Sales of Thai white sugar to India, the world's largest sugar consumer, are expected to reach 200,000 tonnes by year-end, with around 75,000 tonnes already traded so far, dealers said yesterday.
India has allowed mills to import duty-free raw sugar until March and white sugar up to November to ensure domestic supply during the AugustOctober festive season, when demand rises for sweets.
"I personally think 200,000 tonnes of sugar from Thailand will reach India before the New Year," said Kun Chalermkiatkul, international marketing manager at Mitr Phol Sugar,the country's biggest miller.
India is filling the supply gap with imports after poor monsoon rains cut domestic output. It was estimated to have imported 215,000 tonnes of white sugar from various sources,with around 30% coming from Thailand, said Mr Kun.
Demand from India has been a big factor in the rise of global sugar prices to a 28-year high in recent weeks.
India has allowed mills to import duty-free raw sugar until March and white sugar up to November to ensure domestic supply during the AugustOctober festive season, when demand rises for sweets.
"I personally think 200,000 tonnes of sugar from Thailand will reach India before the New Year," said Kun Chalermkiatkul, international marketing manager at Mitr Phol Sugar,the country's biggest miller.
India is filling the supply gap with imports after poor monsoon rains cut domestic output. It was estimated to have imported 215,000 tonnes of white sugar from various sources,with around 30% coming from Thailand, said Mr Kun.
Demand from India has been a big factor in the rise of global sugar prices to a 28-year high in recent weeks.
Tuesday, September 15, 2009
Sugar body acts to avert speculation,hoarding
Authorities will act to prevent the possibility of a sugar shortage amid concern that speculation will increase and lead households to stockpile sugar.
There is potential for a shortage because of "fake demand" spurred by speculation at a time of high world prices for the commodity, according to Prasert Tapaneeyangkul, the secretary-general of the Office of the Cane and Sugar Board (OCSB).
Global sugar prices are currently at a 28-year high because of shortages resulting from adverse weather and poor cane harvests in some producing countries. But Mr Prasert says speculation by some traders is also driving consumers to hoard goods.
"If the panic escalates and leads to more stockpiling and shortages on store shelves, we will urge wholesalers to accelerate their shipments to retail stores as a primary solution to fill the shelves,"he said.
If stepped-up shipments fail to trim the shortage, the OCSB will act to make more sugar available for the domestic market.
Normally, sugar from mills is required to be delivered to wholesalers for storage within 15 days, but shippers can ask for extensions if they face trouble with transport or poor weather, Mr Prasert said.
If some wholesalers attempt to delay shipments to feed speculation, their requests would be refused, he said.
"If these measures still fail to improve the situation, we will ask sugar millers to start their crushing season faster," he said.
The cane crushing season normally starts in late November with the first lot of sugar produced in early December.
At present, nearly 500,000 tonnes of domestic sugar are yet to be disbursed from mills. Officials estimate that 401,500 tonnes of sugar are needed until the first lot of sugar from the 2009-10 harvest season is produced.
The OCSB is preparing to add the remaining one million tonnes of sugar from the export quota to the domestic quota ease a local shortage if necessary.
Mr Prasert said the OCSB's role was to monitor sugar production for domestic sufficiency, along with storage and distribution from mills to the market. Other aspects of market regulation are the job of the Internal Trade Department at the Commerce Ministry.
There is potential for a shortage because of "fake demand" spurred by speculation at a time of high world prices for the commodity, according to Prasert Tapaneeyangkul, the secretary-general of the Office of the Cane and Sugar Board (OCSB).
Global sugar prices are currently at a 28-year high because of shortages resulting from adverse weather and poor cane harvests in some producing countries. But Mr Prasert says speculation by some traders is also driving consumers to hoard goods.
"If the panic escalates and leads to more stockpiling and shortages on store shelves, we will urge wholesalers to accelerate their shipments to retail stores as a primary solution to fill the shelves,"he said.
If stepped-up shipments fail to trim the shortage, the OCSB will act to make more sugar available for the domestic market.
Normally, sugar from mills is required to be delivered to wholesalers for storage within 15 days, but shippers can ask for extensions if they face trouble with transport or poor weather, Mr Prasert said.
If some wholesalers attempt to delay shipments to feed speculation, their requests would be refused, he said.
"If these measures still fail to improve the situation, we will ask sugar millers to start their crushing season faster," he said.
The cane crushing season normally starts in late November with the first lot of sugar produced in early December.
At present, nearly 500,000 tonnes of domestic sugar are yet to be disbursed from mills. Officials estimate that 401,500 tonnes of sugar are needed until the first lot of sugar from the 2009-10 harvest season is produced.
The OCSB is preparing to add the remaining one million tonnes of sugar from the export quota to the domestic quota ease a local shortage if necessary.
Mr Prasert said the OCSB's role was to monitor sugar production for domestic sufficiency, along with storage and distribution from mills to the market. Other aspects of market regulation are the job of the Internal Trade Department at the Commerce Ministry.
Monday, September 14, 2009
Sugar miller expands capacity
Thai Roong Ruang Group, the country's second-biggest sugar miller, has expanded capacity because it expects its exports to rise 10% in 2010, helped by a revival in demand from India, said executive director Utai Asdatorn.
The company is forecasting exports of nearly 1 million tonnes in 2010, up from about 890,000 tonnes expected this year, he said.
"We have expanded our capacity as we see a bigger crop and strong demand,"he said."Soaring world sugar prices have encouraged millers to produce more sugar and that means farmers are growing more cane."
The New York raw sugar contract for October delivery, the global benchmark,settled at 20.99 US cents a pound on Wednesday after hitting a 28-year high last week at 24.85 cents.
In the current 2009-10 crop, Thailand,Asia's biggest sugar exporter is forecast to produce about 7.6 million tonnes from about 72-76 million tonnes of cane. The 2009-10 crushing season will start in November and end in April.
Thai Roong Ruang, which runs seven sugar mills, is one of five big Thai millers to have expanded capacity to meet rising global demand. After the expansion, it is likely to produce 1.4 million tonnes of sugar in 2009-10, up from 1.2 million tonnes in the previous crop.
Mr Utai said the company had contracted to sell around 50% of its 2009-10 production in advance through international trading houses.
"We sell mostly to our traditional customers in Asia and the Middle East. How-ever, we expect to sell more sugar to India next year," he said.
India, the world's biggest sugar consumer, has been largely absent from the Thai market for several years but tight domestic supply has forced it to import more, the main factor behind the rise in world prices in recent months.
It is expected to import around 4 million tonnes of sugar in the 2009-10 crop year due to a fall in domestic cane production caused by a poor monsoon.
Mr Utai said he expected Thai sugar production to rise gradually over the next few years as the world sugar deficit encouraged farmers to growmore cane.
The London-based International Sugar Organisation has forecast a global sugar deficit of 8.4 million tonnes in 2009-10.
The company is forecasting exports of nearly 1 million tonnes in 2010, up from about 890,000 tonnes expected this year, he said.
"We have expanded our capacity as we see a bigger crop and strong demand,"he said."Soaring world sugar prices have encouraged millers to produce more sugar and that means farmers are growing more cane."
The New York raw sugar contract for October delivery, the global benchmark,settled at 20.99 US cents a pound on Wednesday after hitting a 28-year high last week at 24.85 cents.
In the current 2009-10 crop, Thailand,Asia's biggest sugar exporter is forecast to produce about 7.6 million tonnes from about 72-76 million tonnes of cane. The 2009-10 crushing season will start in November and end in April.
Thai Roong Ruang, which runs seven sugar mills, is one of five big Thai millers to have expanded capacity to meet rising global demand. After the expansion, it is likely to produce 1.4 million tonnes of sugar in 2009-10, up from 1.2 million tonnes in the previous crop.
Mr Utai said the company had contracted to sell around 50% of its 2009-10 production in advance through international trading houses.
"We sell mostly to our traditional customers in Asia and the Middle East. How-ever, we expect to sell more sugar to India next year," he said.
India, the world's biggest sugar consumer, has been largely absent from the Thai market for several years but tight domestic supply has forced it to import more, the main factor behind the rise in world prices in recent months.
It is expected to import around 4 million tonnes of sugar in the 2009-10 crop year due to a fall in domestic cane production caused by a poor monsoon.
Mr Utai said he expected Thai sugar production to rise gradually over the next few years as the world sugar deficit encouraged farmers to growmore cane.
The London-based International Sugar Organisation has forecast a global sugar deficit of 8.4 million tonnes in 2009-10.
Friday, September 11, 2009
SUGAR PRICES TO BE PUT UNDER STRINGENT CONTROL
The Internal Trade Department is launching urgent measures to control the price of sugar nationwide and stop the hoarding of the commodity by people speculating on the price.
After meeting yesterday with sugar wholesalers and millers to tackle the nationwide sugar shortage, Yanyong Phuangrach, the department's director-general, said governing bodies at 62 provinces would be told to introduce price-control measures. The price-control measures have already been implemented in 14 provinces, including Bangkok.
The department plans to send a team of officials to inspect warehouses across the country and punish any traders found hoarding sugar.
Yanyong added that retailers and wholesalers have complained that sugar manufacturers were affecting their business. The press was not allowed to sit in on the meeting between the Internal Trade Department and sugar traders, because they feared influential producers would cause trouble.
"Traders said that some sugar producers cut their supply over the past month, while some retailers were forced to pay tea money to maintain their supply," Yanyong said.
As a result, sugar prices have jumped from Bt10 to Bt50 per 50-kilogram sack, he said.
The meeting also reported that rising sugar prices in the world market has also encouraged some sugar plants to export quota Gor (A) sugar, which is reserved specifically for domestic consumption, causing a significant shortage in the country.
The average price of sugar in the world market is quoted at between Bt32 and Bt35 per kg, while domestic retail price is quoted at Bt23.50/kg. Should manufacturers choose to export the sugar, they get to make Bt10 per kilogram.
The department, in cooperation with the Industry Ministry and other involved agencies, will try to efficiently manage the 5.7-million-kilogram stockpile of sugar.
Yanyong said the government would encourage producers to gradually release these stockpiles every week to ensure enough supply. It will also seek measures to stop manufacturers from exporting quota Gor (A) sugar.
Meanwhile, Prakit Pradipasen, chairman of the Thai Sugar Millers Corporation, said its 46 members had never asked for bribes from wholesalers or retailers.
He also insisted that no manufacturers had smuggled sugar out of the country because controls along the border were far too stringent.
To ease the domestic shortage, the corporation also agreed to delay the export of quota Kor (C) sugar, which is normally reserved for export. Millers will also make moves to inject more sugar into the market if necessary, he added.
After meeting yesterday with sugar wholesalers and millers to tackle the nationwide sugar shortage, Yanyong Phuangrach, the department's director-general, said governing bodies at 62 provinces would be told to introduce price-control measures. The price-control measures have already been implemented in 14 provinces, including Bangkok.
The department plans to send a team of officials to inspect warehouses across the country and punish any traders found hoarding sugar.
Yanyong added that retailers and wholesalers have complained that sugar manufacturers were affecting their business. The press was not allowed to sit in on the meeting between the Internal Trade Department and sugar traders, because they feared influential producers would cause trouble.
"Traders said that some sugar producers cut their supply over the past month, while some retailers were forced to pay tea money to maintain their supply," Yanyong said.
As a result, sugar prices have jumped from Bt10 to Bt50 per 50-kilogram sack, he said.
The meeting also reported that rising sugar prices in the world market has also encouraged some sugar plants to export quota Gor (A) sugar, which is reserved specifically for domestic consumption, causing a significant shortage in the country.
The average price of sugar in the world market is quoted at between Bt32 and Bt35 per kg, while domestic retail price is quoted at Bt23.50/kg. Should manufacturers choose to export the sugar, they get to make Bt10 per kilogram.
The department, in cooperation with the Industry Ministry and other involved agencies, will try to efficiently manage the 5.7-million-kilogram stockpile of sugar.
Yanyong said the government would encourage producers to gradually release these stockpiles every week to ensure enough supply. It will also seek measures to stop manufacturers from exporting quota Gor (A) sugar.
Meanwhile, Prakit Pradipasen, chairman of the Thai Sugar Millers Corporation, said its 46 members had never asked for bribes from wholesalers or retailers.
He also insisted that no manufacturers had smuggled sugar out of the country because controls along the border were far too stringent.
To ease the domestic shortage, the corporation also agreed to delay the export of quota Kor (C) sugar, which is normally reserved for export. Millers will also make moves to inject more sugar into the market if necessary, he added.
Thursday, September 3, 2009
Dept keeps close watch for malpractice as sugar prices spiral
With world sugar prices aiming for the moon, the Internal Trade Department has had to keep a close eye on domestic retail prices to prevent scalping, hoarding or smuggling.
Dircetor-general Yanyong Puangrach said yesterday that department aimed to ensure that there would be enough sugar for consumption in the country.
Global sugar prices how are skyrocketing. White sugar at the port of London was traded as high as the equivalent of Bt32 per kilogram with transport cost and Bt19 without transport cost.
Domestic sugar prices are now much lower. Pure white sugar sells for Bt23.60 per kilogram, grade 1 and 2 sugar for Bt22.60 and brown sugar for Bt22.10.
This price gap i attractive to smugglers, who can reap profits from selling cheap Thai sugar to cross-border markets.
This might also cause retailers to sell sugar over the maximum price set by the department, without seeking an allowance.
To deal with the problem of smuggling, the department would ask for approval from Commerce Minister Porntiva Nakasai to issue stricter rules for retail sugar prices.
In case sugar is found selling over its ceiling price or smuggled out, the department can ask the central committee on goods and services to have manufacturers declare their sugar stocks.
The authorities can also issue an announcement to manufactures, prohibiting them from moving their sugar.
Retailers selling over-priced sugar could face imprisonment for seven years and a fine of Bt140,000. If they refuse to sell to customers, they could be jailed for five years or fined Bt100,000, or both.
"Now, the domestic sugar supply is not considered in shortage," Yanyong said.
The sugar quota for domestic consumption in the first eight months was 19 million tonnes, while 13 million tonnes were consumed.
"It's believed that the four million tonnes of sugar remaining will be enough for the rest of this year, or four months," he added.
Dircetor-general Yanyong Puangrach said yesterday that department aimed to ensure that there would be enough sugar for consumption in the country.
Global sugar prices how are skyrocketing. White sugar at the port of London was traded as high as the equivalent of Bt32 per kilogram with transport cost and Bt19 without transport cost.
Domestic sugar prices are now much lower. Pure white sugar sells for Bt23.60 per kilogram, grade 1 and 2 sugar for Bt22.60 and brown sugar for Bt22.10.
This price gap i attractive to smugglers, who can reap profits from selling cheap Thai sugar to cross-border markets.
This might also cause retailers to sell sugar over the maximum price set by the department, without seeking an allowance.
To deal with the problem of smuggling, the department would ask for approval from Commerce Minister Porntiva Nakasai to issue stricter rules for retail sugar prices.
In case sugar is found selling over its ceiling price or smuggled out, the department can ask the central committee on goods and services to have manufacturers declare their sugar stocks.
The authorities can also issue an announcement to manufactures, prohibiting them from moving their sugar.
Retailers selling over-priced sugar could face imprisonment for seven years and a fine of Bt140,000. If they refuse to sell to customers, they could be jailed for five years or fined Bt100,000, or both.
"Now, the domestic sugar supply is not considered in shortage," Yanyong said.
The sugar quota for domestic consumption in the first eight months was 19 million tonnes, while 13 million tonnes were consumed.
"It's believed that the four million tonnes of sugar remaining will be enough for the rest of this year, or four months," he added.
Sweetener for industrial sugar users
Industrial sugar users will gain access to the cheaper domestic sugar quota if export prices surge above local ones,the Office of the Cane and Sugar Board (OCSB) has pledged.
Food and beverage manufacturers for the export market normally purchase sugar from the export quota, which his-torically has been priced lower than domestic sugar. However, world sugar prices have been surging this year because of a global supply shortfall.
The ex-factory price of white sugar is now at 20 baht per kilogramme, about two baht more than the export sugar price.
Prasert Tapaneeyangkul, the OCSB secretary-general, said industrial users now using the export quota could seek domestic sugar if export prices become more expensive.
This year, about 1.9 million tonnes of sugar are reserved for domestic con-sumption, with 63% for household usage and 37% for industrial users who serve the local market.
"We also have a surplus of about 590,000 tonnes left from last year's allocation for domestic sale that should be enough to accommodate food and beverage exporters' demand," Mr Prasert said.
Exporters have filed requests for 370,000 tonnes of export sugar this year.While 57% have already exercised their rights, the remaining 43% may or may not use their allocated quotas if export sugar becomes more expensive.
However, operators who shift to use the domestic quota will lose their right to seek export sugar next year.
"If exporters shift to use domestic sugar, the Cane and Sugar Fund, cane farmers and sugar millers could also enjoy better income," Mr Prasert said.
More usage of domestic sugar means a higher multiplier to value-added tax collection, which goes to pay down the debt of the fund, now at 20 billion baht.
The shift would also raise export sugar supply. With global prices at a 28-year high and likely to rise further, the higher revenue in the export market will also increase farmers' and millers' incomes.
Surat Thadachawasakul, the general manager of the Thailand Cane and Sugar Corporation (TCSC), which oversees sugar for export, said export prices were likely to keep rising.
"The latest reports indicate that the world sugar deficit may be wider than earlier forecast," he said.
"Brazil, the world's largest sugar producer, is expecting to deliver less than forecast to the world market while India,the world's largest sugar consumer, is expected to require more export sugar from a previously forecast shortage."
Food and beverage manufacturers for the export market normally purchase sugar from the export quota, which his-torically has been priced lower than domestic sugar. However, world sugar prices have been surging this year because of a global supply shortfall.
The ex-factory price of white sugar is now at 20 baht per kilogramme, about two baht more than the export sugar price.
Prasert Tapaneeyangkul, the OCSB secretary-general, said industrial users now using the export quota could seek domestic sugar if export prices become more expensive.
This year, about 1.9 million tonnes of sugar are reserved for domestic con-sumption, with 63% for household usage and 37% for industrial users who serve the local market.
"We also have a surplus of about 590,000 tonnes left from last year's allocation for domestic sale that should be enough to accommodate food and beverage exporters' demand," Mr Prasert said.
Exporters have filed requests for 370,000 tonnes of export sugar this year.While 57% have already exercised their rights, the remaining 43% may or may not use their allocated quotas if export sugar becomes more expensive.
However, operators who shift to use the domestic quota will lose their right to seek export sugar next year.
"If exporters shift to use domestic sugar, the Cane and Sugar Fund, cane farmers and sugar millers could also enjoy better income," Mr Prasert said.
More usage of domestic sugar means a higher multiplier to value-added tax collection, which goes to pay down the debt of the fund, now at 20 billion baht.
The shift would also raise export sugar supply. With global prices at a 28-year high and likely to rise further, the higher revenue in the export market will also increase farmers' and millers' incomes.
Surat Thadachawasakul, the general manager of the Thailand Cane and Sugar Corporation (TCSC), which oversees sugar for export, said export prices were likely to keep rising.
"The latest reports indicate that the world sugar deficit may be wider than earlier forecast," he said.
"Brazil, the world's largest sugar producer, is expecting to deliver less than forecast to the world market while India,the world's largest sugar consumer, is expected to require more export sugar from a previously forecast shortage."
Commissioner not shaken by salt plant row
The National Human Rights Commission is launching an investigation into one of its own commissioners accused of community rights violations involving a salt processing plant.
Angry villagers allege Prinya Sirisarakarn ran a salt plant in Nakhon Ratchasima province which was contributing to the degradation of their farmland.
Mr Prinya, however, insists he has done no wrong.
A network of 14 grass-roots groups in the northeastern provinces submitted a petition to the commission demanding its chair, Amara Pongsapich,look into Mr Prinya's qualifications.They say the plant at Non Thai district had a severe impact on hundreds of villagers and the environment.
The villagers claim the operation was one of eight salt processing plants in the area that contaminated water sources and soil, making the land unsuitable for growing crops.
An earlier NHRC investigated the case and found the eight plants' operations should be suspended. However,Mr Prinya continued to run his salt business, the complaint said. He was not yet a commissioner at that time.
The NHRC chair yesterday said she would invite Mr Prinya for questioning and collect information about efforts the plant was making to reduce its impact on the environment.
Ms Amara did not say when the inquiry would be completed.
"As far as I know, Mr Prinya has nothing to do with the salt mining activities," she said.
The conflict between the salt mining and salt boiling plant operators and farmers has raged for several years.The previous NHRC investigated the matter and came up with conflict resolution measures.
Ms Amara said her team would investigate whether all the parties had followed those measures.
Mr Prinya was not available for comment yesterday. However, he earlier told the villagers he no longer had a role in managing the salt processing plant and hadassigned someoneelse to take charge.
He said he was ready to be investigated and insisted he was qualified to sit on the human rights body.
Supakit Boon-anek, a representative of the villagers affected by salt mining and processing activities, said Mr Prinya was not suitable to be a human rights commissioner because he was involved in a business that affected human rights.
The allegations put more pressure on the seven-member NHRC, which took office on June 25. Civil groups and legal experts have criticised the nomination and selection of the NHRC members, saying it lacked public participation.
Angry villagers allege Prinya Sirisarakarn ran a salt plant in Nakhon Ratchasima province which was contributing to the degradation of their farmland.
Mr Prinya, however, insists he has done no wrong.
A network of 14 grass-roots groups in the northeastern provinces submitted a petition to the commission demanding its chair, Amara Pongsapich,look into Mr Prinya's qualifications.They say the plant at Non Thai district had a severe impact on hundreds of villagers and the environment.
The villagers claim the operation was one of eight salt processing plants in the area that contaminated water sources and soil, making the land unsuitable for growing crops.
An earlier NHRC investigated the case and found the eight plants' operations should be suspended. However,Mr Prinya continued to run his salt business, the complaint said. He was not yet a commissioner at that time.
The NHRC chair yesterday said she would invite Mr Prinya for questioning and collect information about efforts the plant was making to reduce its impact on the environment.
Ms Amara did not say when the inquiry would be completed.
"As far as I know, Mr Prinya has nothing to do with the salt mining activities," she said.
The conflict between the salt mining and salt boiling plant operators and farmers has raged for several years.The previous NHRC investigated the matter and came up with conflict resolution measures.
Ms Amara said her team would investigate whether all the parties had followed those measures.
Mr Prinya was not available for comment yesterday. However, he earlier told the villagers he no longer had a role in managing the salt processing plant and hadassigned someoneelse to take charge.
He said he was ready to be investigated and insisted he was qualified to sit on the human rights body.
Supakit Boon-anek, a representative of the villagers affected by salt mining and processing activities, said Mr Prinya was not suitable to be a human rights commissioner because he was involved in a business that affected human rights.
The allegations put more pressure on the seven-member NHRC, which took office on June 25. Civil groups and legal experts have criticised the nomination and selection of the NHRC members, saying it lacked public participation.
Monday, August 31, 2009
SUPPLY SLUMP SWEETENS POTENTIAL FOR THAI EXPORTS
The price of sugar has risen to its highest level in 28 years due mainly to severe drought in many countries particularly India, which has resulted in shortage of supply in the global market.
Thai Sugar Millers Corporation (TSMC) said yesterday that the primary price of sugar cane for the new crop will hit Bt1,150 per tonne, which is the highest since 1982.
Prakit Pradipasen, chairman of TSMC, said the price will remain at these levels with increasing demand in the world market.
He added that sugar price in the world market had increased by 20 cent per pound due to decline in sugar production in many countries following drought.
"Sugar-price trading in the futures market has skyrocketed 24.78 per cent per pound in March 2010. If the price keeps rising, the final price of sugar cane should be higher than the estimated primary price of sugar cane of Bt950 per tonne for the harvesting season 2009/10," said Prasert Tapaneeyangkul, secretary-general of the Office of Cane and Sugarcane Board (OCSB).
If the final price of sugar cane is higher than the primary price, sugar manufacturers will need to pay the additional amount to sugar-cane growers for that season.
The primary price of sugar cane in 2008/09 was Bt830 per tonne, while the final price was forecast to be around Bt860 per tonne, he said.
He is confident the price of sugar cane in 2009/10 will be higher than last season, which should be higher than Bt980 per tonne.
The main factor pushing up the global sugar price was India, which has shifted from being a sugar exporter to importer because of the drought situation, he said.
"India's sugar stocks have been decreasing, from 9.3 million tonnes last year to 7.5 million tonnes this year. It will further drop to 5 million tonnes in 2010," he said.
The Indian Sugar Mills Association has estimated that sugar output in India would reach 19 million tonnes next year from 14.7 million tonnes this year.
However, it is believed that sugar production would be only 16 million tonnes next year because of poor sugar cane species and the impact of climate change.
India currently consumes around 22 million tonnes of sugar each year, which has tended to increase following the economic recovery and its huge population.
Vibul Panitvong, executive chairman of Thai Sugar Millers Corporation, said the price of sugar cane could rise to Bt1,100 per tonne in the year 2009/2010 due to the skyrocketing price of sugar.
"The higher sugar price will hike the total value of Thailand's sugar exports from US$1.5 billion (Bt51 billion) this year to $2.5 billion in the coming year," he said.
Besides India, he said the world's largest sugar exporter, Brazil, would also not be able to make up the shortage in supply despite boosting its sugar-cane output.
"The higher output will go towards serving 30 new ethanol plants in Brazil. Presently, 57 per cent of total sugar cane output in Brazil is used to produce ethanol, and the rest 43 per cent is used to produce sugar," he said.
Brazil is expected to increase its sugar exports from 31 million tonnes this year to 33 million tonnes next year.
Due to lower sugar export from India and other countries, it will be a good opportunity for Thailand to boost its exports and for local sugar-cane growers who will be able to sell the sugar cane at a better price.
The output of sugar cane in 2009/10 is expected to be around 71.6 million tonnes, up from 66.46 million tonnes in 2008/09 as a result of high rainfall. Consequently, sugar production will increase from 7.19 million tonnes to 7.64 million tonnes. However, Thailand's main obstacle is to improve sugar-cane yield and the structure of benefit sharing.
Vibul said Thai sugar manufacturers have expanded their business to neighbouring countries such as Laos and Cambodia because of limited agricultural areas in Thailand and tariff incentives to export to European Union countries.
He said Thailand's subsidy system has created price distortions and reduced the overall industry competitiveness.
In 2007, the Cabinet put the development of the sugar-cane industry on the national agenda, to be completed in three years.
"It's shameful that though we proposed an annual budget of Bt1.1 billion for three consecutive years, the government has not approved it at all. Therefore, it is difficult for us to move forward with the projects in the national agenda," Prasert said.
There are five development plans in the national agenda: research and development of cane species, value-added creation of by-products from sugar cane, productivity improvement, alternative energy, and corporate social responsibility.
Thai Sugar Millers Corporation (TSMC) said yesterday that the primary price of sugar cane for the new crop will hit Bt1,150 per tonne, which is the highest since 1982.
Prakit Pradipasen, chairman of TSMC, said the price will remain at these levels with increasing demand in the world market.
He added that sugar price in the world market had increased by 20 cent per pound due to decline in sugar production in many countries following drought.
"Sugar-price trading in the futures market has skyrocketed 24.78 per cent per pound in March 2010. If the price keeps rising, the final price of sugar cane should be higher than the estimated primary price of sugar cane of Bt950 per tonne for the harvesting season 2009/10," said Prasert Tapaneeyangkul, secretary-general of the Office of Cane and Sugarcane Board (OCSB).
If the final price of sugar cane is higher than the primary price, sugar manufacturers will need to pay the additional amount to sugar-cane growers for that season.
The primary price of sugar cane in 2008/09 was Bt830 per tonne, while the final price was forecast to be around Bt860 per tonne, he said.
He is confident the price of sugar cane in 2009/10 will be higher than last season, which should be higher than Bt980 per tonne.
The main factor pushing up the global sugar price was India, which has shifted from being a sugar exporter to importer because of the drought situation, he said.
"India's sugar stocks have been decreasing, from 9.3 million tonnes last year to 7.5 million tonnes this year. It will further drop to 5 million tonnes in 2010," he said.
The Indian Sugar Mills Association has estimated that sugar output in India would reach 19 million tonnes next year from 14.7 million tonnes this year.
However, it is believed that sugar production would be only 16 million tonnes next year because of poor sugar cane species and the impact of climate change.
India currently consumes around 22 million tonnes of sugar each year, which has tended to increase following the economic recovery and its huge population.
Vibul Panitvong, executive chairman of Thai Sugar Millers Corporation, said the price of sugar cane could rise to Bt1,100 per tonne in the year 2009/2010 due to the skyrocketing price of sugar.
"The higher sugar price will hike the total value of Thailand's sugar exports from US$1.5 billion (Bt51 billion) this year to $2.5 billion in the coming year," he said.
Besides India, he said the world's largest sugar exporter, Brazil, would also not be able to make up the shortage in supply despite boosting its sugar-cane output.
"The higher output will go towards serving 30 new ethanol plants in Brazil. Presently, 57 per cent of total sugar cane output in Brazil is used to produce ethanol, and the rest 43 per cent is used to produce sugar," he said.
Brazil is expected to increase its sugar exports from 31 million tonnes this year to 33 million tonnes next year.
Due to lower sugar export from India and other countries, it will be a good opportunity for Thailand to boost its exports and for local sugar-cane growers who will be able to sell the sugar cane at a better price.
The output of sugar cane in 2009/10 is expected to be around 71.6 million tonnes, up from 66.46 million tonnes in 2008/09 as a result of high rainfall. Consequently, sugar production will increase from 7.19 million tonnes to 7.64 million tonnes. However, Thailand's main obstacle is to improve sugar-cane yield and the structure of benefit sharing.
Vibul said Thai sugar manufacturers have expanded their business to neighbouring countries such as Laos and Cambodia because of limited agricultural areas in Thailand and tariff incentives to export to European Union countries.
He said Thailand's subsidy system has created price distortions and reduced the overall industry competitiveness.
In 2007, the Cabinet put the development of the sugar-cane industry on the national agenda, to be completed in three years.
"It's shameful that though we proposed an annual budget of Bt1.1 billion for three consecutive years, the government has not approved it at all. Therefore, it is difficult for us to move forward with the projects in the national agenda," Prasert said.
There are five development plans in the national agenda: research and development of cane species, value-added creation of by-products from sugar cane, productivity improvement, alternative energy, and corporate social responsibility.
Thursday, August 27, 2009
BT10M EARMARKED TO BOOST ROD DEE MARKET SHARE
Thai Preserved Food Factory is investing Bt10 million on reinforcing its position as leader in the dehydrated soup market.
The company, manufacturer and distributor of instant and dried noodles under the brand of Wai-Wai and Quick Formula, said yesterday that it wanted to directly focus on its target group.
Managing director Benyapha Prinnarat said the company has been receiving good feedback after it launched dehydrated pork and chicken flavoured soup powder under the "Rod Dee" brand at the beginning of this year.
In response to a higher demand, she said, the firm has added two new flavours - spicy soup with lemon and spicy soup - to its list of dehydrated soup products in the second half of this year.
The company plans to penetrate the low-income market by setting up booths at open markets as well as making its products available at retail and wholesale stores nationwide.
Rod Dee currently holds 62 per cent of the dehydrated soup market, which is known to grow 30 per cent annually. Currently, the total dehydrated soup market accounts for Bt5 billion.
Benyapha said the company expects Rod Dee's market share to be boosted by 5 per cent this year, and by up to 10 per cent next year.
The company, manufacturer and distributor of instant and dried noodles under the brand of Wai-Wai and Quick Formula, said yesterday that it wanted to directly focus on its target group.
Managing director Benyapha Prinnarat said the company has been receiving good feedback after it launched dehydrated pork and chicken flavoured soup powder under the "Rod Dee" brand at the beginning of this year.
In response to a higher demand, she said, the firm has added two new flavours - spicy soup with lemon and spicy soup - to its list of dehydrated soup products in the second half of this year.
The company plans to penetrate the low-income market by setting up booths at open markets as well as making its products available at retail and wholesale stores nationwide.
Rod Dee currently holds 62 per cent of the dehydrated soup market, which is known to grow 30 per cent annually. Currently, the total dehydrated soup market accounts for Bt5 billion.
Benyapha said the company expects Rod Dee's market share to be boosted by 5 per cent this year, and by up to 10 per cent next year.
Sugar mills step in to cool prices
India, importing sugar for the first time in three years, said yesterday mills agreed to boost the availability to cool record prices.
"The mills are ready to find some solution where we will be able to improve availability in the open market and in the public distribution system," Farm Minister Sharad Pawar said told reporters after meeting producers in New Delhi.
Sugar has advanced 62% this year in Mumbai's Vashi, the largest wholesale market, on concern drought in the biggest cane-growing states will curb prospects for the Indian crop, the world's secondbiggest.
The monsoon, which brings threequarters of the nations annual rains,may be the driest in 15 years, the weather bureau said last week.
"Production may drop to 14.8 million tonnes in the year ending September,from 26.4 million tons," said Samir Somaiya, president of Indian Sugar Mills Association, repeating a previous forecast.
The nation consumes 22.5 million tonnes annually.
India has contracted to import 2.9 million tonnes of raw sugar so far this year, Pawar told the parliament last week.
Sugar reached a 28-year high of 23.33 cents a pound in New York on Aug 12 and was at 21.51 cents in after-hours trading at 4 p.m. Mumbai time yesterday.Prices in Vashi jumped 4.5% to 3,082 rupees for 100 kilograms after dropping 3.2% on Aug 14.
"Output in the year starting Oct 1 may be 18 million tonnes," Vinay Kumar,managing director of the National Federation of Co-operative Sugar Factories Ltd, said last week.
His forecast is higher than 16.5 million tonnes predicted by Maharashtra State Co-operative Sugar Factories Federation Ltd, and 15 million-to-16 million tonnes estimated by Bajaj Hindusthan Ltd.
To be sure, rains have returned in the northern and central Indian states the past few days, helping ease dry weather thats caused drought in as many as 209 of the country's 626 districts, the weather office said yesterday.
Uttar Pradesh, the biggest cane grower,Madhya Pradesh, the largest soybeans producer, and Bihar, a top grower of rice and corn, received good rain over the past few days, Ajit Tyagi, director general of the India Meteorological Department, said.
Sugar fell for a second day in London on speculation recent rain in India will improve prospects for the harvest in October. White, or refined, sugar for October delivery lost 1.6% to $544.2 a metric tonne by 11.22 a.m. on the Liffe exchange.
"The mills are ready to find some solution where we will be able to improve availability in the open market and in the public distribution system," Farm Minister Sharad Pawar said told reporters after meeting producers in New Delhi.
Sugar has advanced 62% this year in Mumbai's Vashi, the largest wholesale market, on concern drought in the biggest cane-growing states will curb prospects for the Indian crop, the world's secondbiggest.
The monsoon, which brings threequarters of the nations annual rains,may be the driest in 15 years, the weather bureau said last week.
"Production may drop to 14.8 million tonnes in the year ending September,from 26.4 million tons," said Samir Somaiya, president of Indian Sugar Mills Association, repeating a previous forecast.
The nation consumes 22.5 million tonnes annually.
India has contracted to import 2.9 million tonnes of raw sugar so far this year, Pawar told the parliament last week.
Sugar reached a 28-year high of 23.33 cents a pound in New York on Aug 12 and was at 21.51 cents in after-hours trading at 4 p.m. Mumbai time yesterday.Prices in Vashi jumped 4.5% to 3,082 rupees for 100 kilograms after dropping 3.2% on Aug 14.
"Output in the year starting Oct 1 may be 18 million tonnes," Vinay Kumar,managing director of the National Federation of Co-operative Sugar Factories Ltd, said last week.
His forecast is higher than 16.5 million tonnes predicted by Maharashtra State Co-operative Sugar Factories Federation Ltd, and 15 million-to-16 million tonnes estimated by Bajaj Hindusthan Ltd.
To be sure, rains have returned in the northern and central Indian states the past few days, helping ease dry weather thats caused drought in as many as 209 of the country's 626 districts, the weather office said yesterday.
Uttar Pradesh, the biggest cane grower,Madhya Pradesh, the largest soybeans producer, and Bihar, a top grower of rice and corn, received good rain over the past few days, Ajit Tyagi, director general of the India Meteorological Department, said.
Sugar fell for a second day in London on speculation recent rain in India will improve prospects for the harvest in October. White, or refined, sugar for October delivery lost 1.6% to $544.2 a metric tonne by 11.22 a.m. on the Liffe exchange.
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