Rising global price trend
The rising trend in global sugar prices has directly benefited the Kingdom's sugar producers, which are seeing many big advance orders.
Khonburi Sugar already has orders placed for 85 per cent of its output. It forecasts its production to reach 2.8 million tonnes and its revenue to grow 10-15 per cent next year, as it has improved processing efficiency.
Issara Twiltermsup, a director of the company, said yesterday that the sugar price was predicted to continue rising in line with the production drop in Brazil, the world’s biggest producer and exporter.
Brazil has also reported no new investment in sugar processing or plantations.
Global warming has reduced sugar-cane harvests. The decline in supply is forecast to push up the world’s sugar price to 22-35 US cents per pound through 2014.
Recently, Khonburi Sugar conducted a roadshow to Singapore to meet with 14 fund managers. They showed interest in the company’s business model and direction and the effect of the global economic slowdown on the business.
Despite projected oversupply next year, global inventories have hit their lowest level in 10 years because of high production in India, the European Union and Thailand. As a result, sugar will maintain its high price for years, Issara said.
