Albany, NY -- (SBWIRE) -- 12/11/2014 -- During 2008/09-2012/13, the global raw sugar output presented a CAGR of 5.4% as the market experienced a shift from a short supply to oversupply. In 2013-2014, the output of raw sugar somewhat declined to 175.7 million tons. It is predicted that in 2014/15 the global raw sugar output will continue to fall, and that high inventory of global sugar will thus be very likely to reverse.

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As one of the world's important table sugar producers, China saw the sugar output of 13.318 million tons, up 1.9% from a year earlier, ranking the third place around the globe. Cane sugar is the major sugar variety in China, with its output accounting for over 90% of the total sugar output in the country. With larger planting area, Guangxi leads China in table sugar output, with its sugar output for 2013 occupying 64.3% of the national total.

Affected by the laws of sugarcane production, the sugarcane output in China will show a downward trend, which would probably last through 2016/17 season. On the other hand, restricted by the factors like natural environment and industry policies, China's sugar output will grow by a limited margin.

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Since 2012, despite a rising downstream demand, China's sugar manufacturers has suffered great losses, hurt by lower table sugar prices and rising costs of production. In H1 2014, up to 66.0% of Chinese sugar producers made losses. Although sugar factories, especially small and medium-sized enterprises, were facing business difficulties, yet industry integration is difficult.

The acceleration of sugar industry integration through mergers and aquisitions is in line with the government's expectation, but large sugar manufacturers are generally in a shortage of funds, and if they acquire small and medium-sized enterprises that have no technical and cost advantages, they would suffer losses. At present, some big sugar manufacturers like Nanning Sugar Industry are more inclined to take technological upgrading to improve sugar business while others such as Guangxi Guitang (Group) and Xinjiang Guannong Fruit & Antler Group would reverse the plight by cutting sugar business and expanding other industries.

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