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INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2014
PLANTATION REVIEW
SUGAR: OUTSIDE INDONESIA
In Brazil, IndoAgri has a
50% stake in CMAA, which
is principally engaged in the
cultivation and processing
of sugar cane for the
production and marketing
of sugar and ethanol as well
as co-generation of electric
power from sugar cane
bagasse. CMAA operates
a modern sugar mill in
Vale do Tijuco, Brazil, with
a total crushing capacity
of 3.8 million
tonnes per year.
Additionally, RHI has three sugar mills, one
in Batangas and two in Negros Occidental.
It also has an ethanol plant in Negros
Occidental with a production capacity of
43,500 M
3
per annum.
The Filipino sugar industry is Southeast
Asia’s third largest with 25 million tonnes
of sugar cane production in 2014,
after Thailand’s 108 million tonnes and
Indonesia’s 35 million tonnes. Around
80
-
85% of this production is used
domestically, while the balance is exported
primarily to the US, which allocates a sugar
quota to the Philippines, and to Japan.
2014 REVIEW
In 2014, international sugar prices
came under pressure due to the global
economic slowdown and the sizeable
global sugar production surplus built up
over the last two years. Sugar prices on
the Coffee, Sugar and Cocoa Exchange
(CSCE No. 11) averaged USD 16.3 cents
per pound in 2014, down from USD 17.5
cents per pound in 2013.
Brazil is a strong contributor to the
global sugar and ethanol industry, given
its favourable climate, optimal use of
technology, high productivity level, and
availability of suitable land for expansion.
Its advantage as the lowest
-
cost sugar
producer in the world has led to a steady
increase in production and export volumes
over the past 10 to 15 years, making it
the world’s largest sugar producer and
exporter with close to 21% of worldwide
production. Brazil has 40% to 50% share
of the global sugar export market.
In the Philippines, IndoAgri has a 30%
investment in FPNRL, which in turn,
has a 34% interest in RHI, the nation’s
largest integrated sugar business. RHI’s
processing capacity of 6.2 million tonnes
per annum or 38,500 TCD makes it the
biggest sugar miller, supplying nearly 20%
of the country’s total sugar production.
It is also the third largest sugar refiner in
the Philippines, with a capacity of 18,000
Lkg/day at its Batangas refinery (one Lkg
is equivalent to a 50kg bag of sugar).
Vale do
Tijuco
