Current Price For Sugar Cane?

[TallCoolOne]

I have about 50 rai in central Isaan planted with nice, healthy sugar cane which is just about ready for harvest (also have sweet potatoes and rubber, but that's another story). As I'm not running the farm directly, I have to depend on my farm manager's 'honesty' on how much money the harvest brings in. It would help if I had a general idea how much income I can expect to receive per rai in terms of tonnage per rai, and price per ton. My farm manager says the price for sugar cane is likely to be down this year, but that goes against what I've heard, as all over the world the price for sugar cane is rising due to increased demand for ethanol.

Anybody else out there growing sugar cane and care to share? Thanks in advance.

[bannork]

I have about 50 rai in central Isaan planted with nice, healthy sugar cane which is just about ready for harvest (also have sweet potatoes and rubber, but that's another story). As I'm not running the farm directly, I have to depend on my farm manager's 'honesty' on how much money the harvest brings in. It would help if I had a general idea how much income I can expect to receive per rai in terms of tonnage per rai, and price per ton. My farm manager says the price for sugar cane is likely to be down this year, but that goes against what I've heard, as all over the world the price for sugar cane is rising due to increased demand for ethanol.

Anybody else out there growing sugar cane and care to share? Thanks in advance.

We have 50 rai of sugar cane also but I'm not sure of the current price offered by the government as ours has only just been planted; but that price shouldn't be hard to find out, your co-op should know or I can tell you in a few days.

But there are other factors to take into consideration.

Are you selling through a quota of someone with a contract with a sugarmill? If so he will want a cut for the convenience.

If you are selling freelance, there may be problems of waiting at the mill, the transporter may demand money for wasted time or for distance.

Read some of the old farming posts regarding sugar cane and you'll see possible extra expenses incurred.

Take this with a pinch of salt but when we went to the co-op in Bandung 2 months ago for fertiliser I asked the secretary what revenue we could expect from 50 rai of sugar cane. She said over 300,000 baht, ie 6,000 baht per rai before expenses.

Edited January 7, 2008 by bannork

[Nickthegreek]

tallcoolone,

I can only add what my father in law received in january when he harvested his 80 rai..

At that time he was paid just over 600 baht per tonne and then some time after the company that he sold it too did their stuff he recieved a top up which brought him up to around 800 baht per rai..

He tells me that this year will be around 1000 baht per tonne..

I am currently growing rice on 50 rai,which I will change to cane in December assuming I can find out the costs I am lookin for so maybe you can help me.?

As I understand it my father in law gets everything from the processing company in advance and then they give him the difference in cash at harvest..

How much did the cane cost for 50 rai??

I will be ineterested to learn if you pay for all your things up front is the price better?

Nick

Sorry having read more of your post..

Based on my father in laws land..

He gets between 15-20 tonnes per rai..

Edited August 13, 2008 by Nickthegreek

[farmerjo]

Last season cost me 8 ton per rai to average 14 ton so approximately you will make 5000 baht a rai.

Be ware as the price goes up so do the contractors.Cutting,loading,transport etc so that will put away the increased price.

Also variety of sugar will determine yeild as well as what year in rotation (2nd & 3rd sugar yeild more than 1st & 4th year)

To grow sugar you have to look long term to set up a rotation so you have 1st year sugar to plant every year otherwise come the end of the cycle you will be hit with massive start up costs again.

If you intend to sell to a major factory,go and visit there r&d site they will guide you with planting contractors chemical and fert usage,water requirements etc.

Just be wary of the offering of money to help you start up. For the sake of 500 baht a rai they will lock you in to a delivery quota contract where as you might be able to privately sell your first year sugar as seed at much higher profit

[Maizefarmer]

Last season cost me 8 ton per rai to average 14 ton so approximately you will make 5000 baht a rai.

Be ware as the price goes up so do the contractors.Cutting,loading,transport etc so that will put away the increased price.

Also variety of sugar will determine yeild as well as what year in rotation (2nd & 3rd sugar yeild more than 1st & 4th year)

To grow sugar you have to look long term to set up a rotation so you have 1st year sugar to plant every year otherwise come the end of the cycle you will be hit with massive start up costs again.

If you intend to sell to a major factory,go and visit there r&d site they will guide you with planting contractors chemical and fert usage,water requirements etc.

Just be wary of the offering of money to help you start up. For the sake of 500 baht a rai they will lock you in to a delivery quota contract where as you might be able to privately sell your first year sugar as seed at much higher profit

Very good comments ..... get on top of the "transport" side of things - transporting cut cane is the link in the cane growing/cultivatuion chain that makes and breaks Thai farmers every season.

[Nickthegreek]

Last season cost me 8 ton per rai to average 14 ton so approximately you will make 5000 baht a rai.

Be ware as the price goes up so do the contractors.Cutting,loading,transport etc so that will put away the increased price.

Also variety of sugar will determine yeild as well as what year in rotation (2nd & 3rd sugar yeild more than 1st & 4th year)

To grow sugar you have to look long term to set up a rotation so you have 1st year sugar to plant every year otherwise come the end of the cycle you will be hit with massive start up costs again.

If you intend to sell to a major factory,go and visit there r&d site they will guide you with planting contractors chemical and fert usage,water requirements etc.

Just be wary of the offering of money to help you start up. For the sake of 500 baht a rai they will lock you in to a delivery quota contract where as you might be able to privately sell your first year sugar as seed at much higher profit

Hi Farmerjo,

When you state that it cost you 8 tonnes per rai to harvest,can I assume that you pay a team to walk on cut,load and take it to the factory ?? and that you do not have a truck and a machine to load the truck ??

I am currently trying to decide if my best route with 50 rai of fantastic rice land,should be moved over to sugar.

The local factory will loan us the money to purchse the seed,I dont really understand your statement on the 500 baht per rai.I have the money to buy outright so this is not an issue,but I was thinking keep my money in the bank and use thai money!

I understand that I can make more as a seed crop,so would I be right in thinking that seed cane is about 2000 baht per rai? and the factory buy for much less.

Nick

[farmerjo]

Hi nick,

The 8 ton is all up costs,however im in rotation using my own setts to plant.

A quick run down before you jump in(figures at home so just a guide)

Buying setts-the rule of thumb is 2 rai will plant 10 rai so you would need purchase 10 rai of sugar to cut,preferably 1st year,depending on variety for how much.Sugar to be 8-10 months old and carefully cut not damage the nodes.

So planting costs= variety 12000 per rai

Contractor to work land and plant= 2300 per rai

Irrigation after planting=?

Chemical(depending on type)

Fertilizer(100kg)

Irrigation during season

Harvest costs=

cutting

loading

transport

food & beverage for workers

Also tractor will need to take out rice banks at an hourly rate

Its not easy to give costs as every situation is different,you will have to research that but from my experience dont expect to make any money in your first year.This is not being negative but your buget should be worked over 5 years to average out the initial sett purchase and planting.Also allow a little for firebreaks so the neighbour dosent burn you out.

The 500 a rai is what my mill offered me to help get started in return for a three year quota(dont meet quota and you lose price)

The other consideration is lenght of time for harvest.Say with 50 rai in you would probably be allowed to deliver 12-15 ton per day thats about 2 months of looking after 7 extended family members.

Hope i have helped

[Nickthegreek]

Hi famerjo,

Thanks for the update,it would really help to know though,

Do you have your own tractor ?

Do you have a machine to load a truck?

Do you have your own truck..?

Do you do you own preparation,ploughing etc?

Or are you paying a team to walk onto you land and take care of everthing when it comes to harvest?

This will really help with my planning as I am not doing all of the work,but I will do the tractor side of things..

Nick

[farmerjo]

Hi nick,

Contractor plants,cuts,loads and transports.

I have small tractor to do the irrigation,spraying and fertilizing.

Also transport with small tractor and 4 ton trailer to supplement.

Rice fields will require deep ripping initially as well otherwise you will run into water logging problems,even thou sugar needs a lot of water (3mm per day) to much when young can harm its growth.

Using contractors otherwise to warrant a planter,trash extractor,cane harvester,loader and truck you would need a farm the size of the maizefarmers.

[Nickthegreek]

Hi farmerjo,

Thanks,I will be in the same position as you,so it clears the costs I will face.

My father in law has a 16 tonne truck,so maybe their is money to be saved their and we are looking at a number of options reagrding loading it ourselves,so maybe that will cut costs.

Its hard to know which route to go down as this year we grew rice,well still are and the price is good, but based on the sugar cane costs,it may be better to stick with rice.I do know however that there is less work after year one involved with sugar.

Thanks again for your advice,its helped a lot.

Nick

Edited September 22, 2008 by Nickthegreek

[joker7]

Hey lads,

I noticed this topic is a few years old now.

Just trying to get a handle on sugar cane etc, I have 72 Rai to plant.

Looking at your figures below from 2008, how accurate are they now ?

1000 baht per tonne ?

Harvest 15-20 tonne per Rai, this would still be the same.

Ive been quoted sugar cane seed at 15,000 baht for 1 Rai. So I will need about 15 Rai of seed.

Do I actually need to water during the dry season or can I leave the crop, our farm runs parrallel to a river, do you have to apply for a permit to extract water from the river ?

Any info would be useful.

[Extenso]

Hey lads,

I noticed this topic is a few years old now.

Just trying to get a handle on sugar cane etc, I have 72 Rai to plant.

Looking at your figures below from 2008, how accurate are they now ?

1000 baht per tonne ?

Harvest 15-20 tonne per Rai, this would still be the same.

Ive been quoted sugar cane seed at 15,000 baht for 1 Rai. So I will need about 15 Rai of seed.

Do I actually need to water during the dry season or can I leave the crop, our farm runs parrallel to a river, do you have to apply for a permit to extract water from the river ?

Any info would be useful.

The selling price are a lot affected between dollar and thb. The thb is strong and it makes the sugar cane falling. At the moment is the selling price 1200 pr tons. It will raise up to about 1500 pr tons. You also have to remember it depends on the time. If fabric open in start december will the price be good in 1 month. After this month will the price be 950 thb and again raise about April.

If you are seeding now in November do you not have to water during the dry season. It is important you are very fast now or you will loose you investment. You can also wait seeding until end of February and go for harvest in April instead of December.

Follow those steps to increase your investment:

When you harvest do you bound 12-13 sugarcanes. 40-50 of those bounds will be one tons. It means if you in average in 1 meter has about 3 sugarcanes will your return be about 22-30. I do have a rai with more than 35 tons pr rai. If you search will you find out that average in Thailand is only 10 tons pr rai. A part of the reason is of course the weather but I will say it is even more important how you are seeding and taken care of the fields.

• Timing in seeding. 2 periods. End October and end February. October is great because still lots of water and easy to get over the critical stage. As long the sugar canes are more than 1 meter are they difficult to kill. February do you need to add water manually and hope for the rain season dont start to late. 2 different periods because harvest in 2 totally different periods. About December and April. Sugar fabric is open during all month but the price is only good in 2 month
• Use a tractor and machine for seeding. You will get a lot more seeds of each meter. You have to wade 3 to 4 times to remove most weeds
• Manure of fields 3 times. Important to find the best manure if the 3 different periods.
• 1 time to remove weeds. Timing here is also important

If you follow the 4 steps will you get in average a lot better than 15 tons pr rai. Remember in other countries with a lot more experience than thais is the average 30 tons pr rai.

Anders

[Fishfarmer]

Hi Anders

Very interesting to see your numbers. Do you have many rai of sugarcane or is this a small experiment with a few a rai?

It would be interesting to know more about your experiences in growing sugarcanes. For example what costs you have.... I am trying to learn a little more for myself when i´m not busy with fishfarming. We have about 100 rai of sugarcanes in Wang-Nam-Khiao and right now we have to trust the experiences of thaipeople helping as take care. We hardly get 10 tons per rai now. The wife is happy with that but I´m not!

Roger