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The Ministry of Commerce issued the 46th Announcement of 2016 on the 22nd, and decided to initiate an investigation on the safeguard measures for imported sugar from now on.
China's sugar industry is lagging behind in the level of mechanization
[China Agricultural Machinery Industry News] Recently, relevant data show that China's sugar imports soared 663% in the past five years, the Ministry of Commerce issued an announcement, will investigate the import of sugar protection measures. The analysis shows that the canteen industry in China is in a downturn, mainly because the mechanization level is backward, and the sugar production has been declining year after year. It is very weak in response to the impact of international sugar products.
China's sugar industry is lagging behind in the level of mechanization
Previously, the Guangxi Sugar Industry Association officially submitted the “Application for the Investigation of the Safeguard Measures for the Sugar Industry of the People's Republic of China†on behalf of the domestic sugar industry, requesting an investigation into the safeguard measures for imported sugar.
The application shows that the number of imported sugar entering the Chinese market increased sharply from 2011 to 2016, and the first quarter of 2016 increased by 663.15% compared with the first quarter of 2011. The growth rate from 2011 to 2015 is significantly higher than the growth of China's sugar demand; the market share in China in 2011, 2012, 2013, 2014, 2015 and 2016 was 21.23% and 26.69% respectively. 30.42%, 23.16%, 32.09% and 15.23%.
Guangxi Sugar Industry Association believes that the rapid increase in the number of sugar imports has impacted China's domestic industry. China's domestic industry's operating rate, sales volume, market share, sales revenue, pre-tax profit and other production and operation indicators have deteriorated, and China's domestic industry has been seriously damaged. And there is a causal relationship between the increase in the number of sugar imports and the serious damage to China's domestic industry.
It is understood that China has now become a major sugar importer in the world. According to the newly released data of the General Administration of Customs, China's sugar imports in August were 360,000 tons, an increase of 30.7% over the same period of the previous year. In contrast, the 2015/16 Chinese sugar planting area was 1,435 thousand hectares, a decrease of 144 thousand hectares from the previous year; the sugar production was 8.7 million tons, a decrease of 1.86 million tons from the previous year.
Experts say that the main reason for the low sugar production in China is the decline in sugar production. According to the survey, China's sugar cane planting area in 2015/16 was 1,301 thousand hectares, a decrease of 156 thousand hectares from the previous year. Affected by the sluggish price of sugar market, the sugar industry has suffered losses for three consecutive years. In addition, the production cost of artificial sugar sugar cane has increased rapidly in recent years, the comparative income of sugar crops has decreased, the sugarcane crop sugar income has declined, and the production enthusiasm has been contused, leading to sugar cane. The yield level fell to 60.75 tons per hectare, a decrease of 1.05 tons year-on-year.
Affected by various factors such as geography, climate and economic development level, the sugarcane per mu yield and mechanization rate of other sugar-producing countries are higher than that of China, and the cost is only about half of that in China, which leads to serious upside down of sugar prices in domestic and foreign markets. Zhang Rubin, deputy director of the Guangxi Sugar Industry Development Bureau, believes that although the country’s implementation of the policy of restricting sugar imports has achieved certain results, due to the excessive price gap between domestic and foreign markets, limited tariffs and smuggling are difficult to effectively block the influx of foreign sugar, and the government’s Relevant regulatory control policies have not been effectively implemented.
Some analysts said that once the investigation is true, they can submit a WTO application to increase protection for domestic sugar companies, such as raising tariffs. However, in the context of deepening the integration of domestic and foreign markets, the sugar industry also needs to accelerate supply-side reforms simultaneously, and achieve transformation and upgrading through management and technological innovation.
(Original title: Mechanized production is lagging behind in China's sugar industry)
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