1 Sawasdee Welcome toThailand 1 OCSB: Office of the Cane and Sugar Board

Thailand Government Policy &Initiiatives for Sugar Production in the Next 5 Years Dr. Prasert Tapaneeyangkul Secretary General Office of the Cane and Sugar Board 2 OCSB: Office of the Cane and Sugar Board

National Cane Development Plan Current situation and outlook Future plan 3 Thailand Sugar Industry OCSB: Office of the Cane and Sugar Board

R& D and Cane Derivatives develop Ment Soil & fertilizer Manage ment Logistics & transport manage ment and GIS Farm mechaniza tion and cultivation practices National Cane Development Plan Goal: Sustainable growth of the cane and sugar industry Ethanol and value creation Cost reduction, value creation, more income for growers (3 yrs : ) Target: 94 mln.tons/94 tons/hectare, 13 C.C.S. Restructure of the industry 4 Irrigation

National Cane Development Plan 2007/ /11 1 hectare = 6.25 rai 2007/082010/11 ActualTarget Actual 1. Production (mln. tons) Cane yield (tons/rai) (tons/hectare) Sugar contents(C.C.S) OCSB: Office of the Cane and Sugar Board

2010/11 Mills : 47 Capacity: 880,000 TCD Plantations:1.3 m.ha. in 49 provinces 6 OCSB: Office of the Cane and Sugar Board Region09/1010/11Increase North % Central % North East % East % Total % Current situation

Yr.Cane Prod.Sugar Prod.Sugar Yield 2008/ / /11 (Estimation) OCSB: Office of the Cane and Sugar Board 2010/11 underestimation Current situation Severe drought Rain fall (m.m) Unit: mln.tons

Yr.Cane Prod.Sugar Prod.Sugar Yield 2008/ / /11 Estimation Actual figures OCSB: Office of the Cane and Sugar Board 2010/11 Low estimation Thailand: 2010/11 Severe drought Rains and flood Unit: mln.tons

Cane(tons) Sugar(tons) 9 Record cane & sugar production OCSB: Office of the Cane and Sugar Board 2010/11: Record cane price Current situation

10 Areas under cassava, cane and rice Land switching Competition crops Weather conditions Crop yr.CassavaCaneRice 2001/ / / / / / / / / / Current situation Unit: rai (6.25 rais/ha.) Source Office of Agricultural economics, & OCSB OCSB: Office of the Cane and Sugar Board

/11: Record production Rain during harvest High contamination in cane Low sugar yield Left over cane Nov. Dec. Crushing days: 28 Nov Jun.11 Current situation

Burnt cane Labor shortage Becoming typical practice Environmental and human concerns OCSB: Office of the Cane and Sugar Board 2010/11: Record production: Current situation

/11: Record production Crushing over capacity Prolonged crushing High contamination Downtime loss Problems of logistics, storage and transportation Current situation TCD Days of crushing 46 mills capacity ready for 2010/11 crushing (Mills checkup by OCSB before start of crushing)

Export Markets 14 Current situation AEC Challenges AEC 2015 WTO Green living 2010 ASIA:93% ASEAN:57% of the total export Indonesia Japan Cambodia N. Korea Philippines Vietnam Pakistan Malaysia

15 OCSB: Office of the Cane and Sugar Board Thailand: 2011/12 Outlook Boosting factors Favorable weather Increased cane acreage Risk factors Flood & wet harvest Low sugar yield

2010/11 : benchmark for further growth & opportunities 16 Future Policy and Initiatives Goals: To be competitive in the world market Strengthening farmers capability & stability of cane prices Productivity/efficiency improvement at farm and factory Expansion/relocation of mills Diversification Toward green industry Growers& Millers

17 Restructure of the industry - Domestic sugar prices - Benefit sharing - Laws & regulations - Cane and Sugar Fund Growers access to resources - Soft loans for crop management and farm mechanization Revision of National Cane Development Plan R&D focus Cane variety improvement Future Policy and Initiatives

Thank you... 18