Is the reduction in sugarcane production good or bad for sugar companies?

Reduced sugarcane production is bad for sugar companies.

For sugar companies, the new crushing season may face problems such as shortage of raw materials. The reduction of raw materials will inevitably lead to price increases, and the sugar production costs of sugar mills will increase.

But currently, in addition to cane sugar, there is also starch sugar. The advantage of starch sugar is that it is easy to absorb and decompose, and is more beneficial to human health than white sugar, so it is an obvious substitute for white sugar. "With the improvement of living standards, people pay more attention to healthy diet and choose better products, and the demand for sugar may gradually decrease.

Secondly, labor costs will gradually increase. Compared with Brazil and other places, In terms of mechanized operations, due to terrain and other reasons, sugarcane harvesting is still dominated by manual labor in Guangxi. The change in rural population structure is an important reason for the "advancement of sugarcane and the retreat of sugarcane": young and middle-aged people in rural areas generally go out to work, and there is a serious shortage of labor in Guangxi's rural areas. Eucalyptus cultivation is not as time-consuming as sugar cane, and the labor shortage has caused the cost of cutting sugar cane to rise year by year. It is reported that each ton of sugar cane currently costs about 130-150 yuan to cut, and sugar factories in Guangxi now generally employ Vietnamese cutters. Labor costs can be relatively controlled, while in other production areas, labor costs have become a huge burden for sugar factories.