Sugar Prices Still High
April 17, 2012
Sugar Cane News
World sugar prices are still hovering at levels not seen in close to 100 years! With exception of a few spikes in price in the late '70's and early '80's, our current prices are the highest in history! Forecasts predict prices to remain high for several reasons...
1. Decreased Supply
Low prices over the last decade or so have driven marginal producers out of the business, while producers that have kept production running have done so only at reduced operating capacity. Many countries that produce sugar now operate at only 1/2 of their historical capacity. In some places the sugar cane industry has completely evaporated.
2. Increased Demand
As energy prices skyrocket, many people and countries are turning to alternative sources of fuel. One of these alternatives, ethanol, can be made with sugar products. Increasingly sugar production is being converted into energy production, and this trend is only to continue in the future.
3. Production Lead Time
As sugar cane takes 18 months for new plantings of sugar cane to come into production, there is a lag between the increased demand and increased supply. Now is the time to capitalize on your existing sugar cane plantings. Vitazyme, as part of your agricultural program can increase yields substantially so as to take full advantage of crops on the ground. Sugar beets grow on a much faster crop cycle, and we have seen excellent results with both increasing yield and sugar output from beets. So any sugar crop you grow can benefit from Vitazyme applicaitons
The Vitazyme Difference
Replicated tests done in Cuba by researchers at the Institute for the Investigation of Sugar Cane (INICA) in 2004 show that when Vitazyme is applied three times to ratoon cane, yields increase between 9.22 tons/ha and 25.19 tons/ha, with an average increase of 17.21 tons/ha.
In Ukraine and Russia we have multiple years of results that average over 20% increase in sugar yield from beets.
The average cane yield of 17.21 t/ha produces a net profit, after the additional costs of Vitazyme, applications made, and the harvesting & milling costs of the increased yield were included, of $481.13/ha US at a sugar price of $.15 US. At $.20 US sugar price, profit would be $689.58 on average. For applications on just 10,000 ha, Vitazyme would increase profits between $4.8 million US and $6.9 million US!