Written by Li Min / Translated by Huang Xiaoshan

“The Second-Phase Pioneering Work” of China’s City of Sugar

Written by Li Min / Translated by Huang Xiaoshan

Sugarcane not only can be processed into brown sugar plum by Guangxi Golden Delicious Food Co., Ltd. and sold in all kinds of supermarkets, but also can be manufactured into sugarcane vinegar by Haoqingchun Vinegar Industry Co., Ltd. with backlog on filling orders. All these reveal the vision of “Second-Phase Pioneering Work” of China’s sugar industry as well as multiple industrial chains of sugarcane recycling economy. Today,such industrial chain has begun to merge in China (Guangxi) Sugar Industrial Park. In 2017, to maintain the stable development of national sugar industry and to promote the“Second-Phase Pioneering Work”of Guangxi sugar industry with industrial upgrading, Guangxi proposed to build China (Guangxi)Sugar Industrial Park in Chongzuo City in accordance with the mode of “One Park and Three Areas”like China-Thailand (Chongzuo)Industrial Park, China-ASEAN Nanning Airport Fusui Economic Zone and Sugar Recycling Economic Industry Park in Jiangzhou District.

A piece of sugarcane reflecting the great sugar industry

Outside the plant, Wu Jinlong, the person in charge of Guangxi Golden Delicious Food Co., Ltd. said: “With remarkable advantages of resources and region in Chongzuo as well as the supports provided by government,we choose to build our factory here.Now we plan to increase the number of the production lines to produce more diversified products.” China Sugar Expo China (Guangxi) Sugar Industrial Park Promotion Conference was held during November 1-2, 2017.A delegation composed of more than 100 guests and media representatives took this opportunity to go deep into China (Guangxi) Sugar Industrial Park. The delegation had visited the Golden Delicious Food Co., Ltd.in China-ASEAN Nanning Airport Fusui Economic Zone, COFCO Chongzuo Sugar Industry Co., Ltd.in China-Thailand (Chongzuo)Industrial Park, Haoqingchun Vinegar Co., Ltd. and Jinwutong International Fruit Processing Base as well as the Sugar Recycling Economic Industrial Park in Jiangzhou District.Through field visit, the delegation had a better understanding of sugar industrial advantages and industrial characteristics in Chongzuo.

Yeast produced by Guangxi Chongzuo Xianggui Sugar Co., Ltd.

Located in Sugar Recycling Economic Industrial Park in Jiangzhou District, Datang feed project is the biggest sucrose microbial fertilizer and straw feed project in Guangxi, with the annual output of 300,000 tons. According to the project leader, we can know that the biological straw feed can greatly improve the absorption and utilization rate of feed by herbivores, while the animal excrement is the most direct and high-quality natural organic biological fertilizer raw material,it will realize the industrialization of recycling economy in Chongzuo breeding and production industry if the project puts into production. After investigation, the general manager Wang Yubo from Guangzhou Guanghai Logistics Co., Ltd. had strong interest in this project, he said: “Our company is looking for a project in silage processing, and the processing of sugarcane tail leaves in Chongzuo may be a choice.” Not only the industrial investors, but also the fi nancial investors are attracted by the sugar industrial development prospect in Chongzuo.

One of the delegation members Wei Shaoyong, the vice president of Zhujiang Xijiang Industry Investment Fund Management Co.,Ltd., expressed great interest in investing the new production line of Haoqingchun Vinegar Co., Ltd. It is known that producing sugarcane vinegar takes the cane juice as raw material, ferments and formulates with raw juice. With the increasing demand of market, the manufacturer is planning to increase more production lines. He said: “Now many companies are confronted financial problems,which will cause poor production. We will cooperate in the form of equity or bond with them on the basis of comprehensive evaluation to provide fi nancing for the development.”

Through the China (Guangxi) Sugar Industrial Park Promotion Conference held on November 2, more and more companies had a deeper understanding of the development and investment attraction of Chongzuo sugar industry. Mr.Sun Daguang,mayor of Chongzuo City, introduced the China (Guangxi) Sugar Industrial Park in the promotion conference, “It is the first special industrial park for sugar industry. With the framework has been fully developed and good foundations and conditions have been processed, the industrial park will become an important engine for transformation and upgrading of sugar industry in Chongzuo.” He also gave a referral about 19 projects related to cane and sugar, containing confectionery, snack food processing,light manufacturing, sightseeing tourism and so on in each project.All these reveal the determination of Chongzuo sugar industry on the“Second-Phase Pioneering Work”.

The “Second-Phase Pioneering Work” of sugar industry in progress

Guangxi is the biggest sugar producing province in China, whose sugar yield is more than 60% of the total yield. However, price dropping of sugar in the last few years affected the initiatives of sugarcane farmers and enterprises in Chongzuo. Under this background, Guangxi fired an opening shot in sugar industry by introducingOverall Plan for Promoting “Second-Phase Pioneering Work” of Guangxi Sugar Industry.

“To promote the “Second-Phase Pioneering Work” of Chongzuo sugar industry, there are three key issues to transform the sugar industry. Firstly,to focus on “The First Plant”, promote the construction of 2.01 million mu“Double-High Base”, ensuring that the sugarcane plantation is above 4 million mu and the raw sugarcane as received up to 20 million tons;secondly, to improve the mergers and acquisitions of sugar industries to refine and strengthen the sugar enterprises; and thirdly, to extend sugar industry chain, increase added value and improve competitiveness,”said Mr. Liu Youming, Secretary of the Municipal Party Committee of Chongzuo, Guangxi, China.

China (Guangxi) Sugar Industrial Park is an important platform for extending sugar industrial chain in Chongzuo even in Guangxi. With a total investment of RMB 2.748 billion yuan and 1473 mu area, the number one project in China (Guangxi) Sugar Industrial Park, Sugar Recycling Economy Comprehensive Utilization Project of Chongzuo Guangxi East Asia Sugar Co., Ltd. has officially launched in September 2017.This project not only boosts the“Second-Phase Pioneering Work” in Chongzuo, but also takes important part in Sino-Thai Economic and Trade Cooperation.

While in other key aspects, Chongzuo has carried out steadily and given initial results. Up to June 2017,Chongzuo sugar industry has showed the characteristics of increased sugar yield, timely payment of sugarcane,rising price of sugar and improved pro fi t. In 2016-2017 crushing season,raw sugarcane yield as received of the whole Chongzuo City has reached 14.8357 million tons, 1.8257 million tons of mixed sugar yield, ranking first in China for 14 crushing seasons.

Chongzuo also makes a breakthrough in strategic reorganization. Based on market leading principle, Chongzuo actively encourages and guides the superior sugar enterprises such as COFCO Sugar Industry to participate in merger and acquisitions. Zuojiang Yongkai Sugar Company has auctioned successfully on June 21,2016 and reformed into COFCO Chongzuo Jiangzhou Sugar Co., Ltd.

Wei Shaoyong told the reporter that the scientific reorganization of enterprise is not only beneficial to the large-scale and specialized development of Chongzuo sugar industry, but also conducive to accurate implementation of government support policy and fund.By adopting these effective measures for the “Second-Phase Pioneering Work”, we believe that Chongzuo sugar industry will have a brilliant future.