Background
In the 2008/09 press season, the sugar market is in a big reversal. The main reason is the main producing areas have a substantial decrease in sugar production. The state purchasing and storage, production fell, the government macroeconomic regulation and control and so on have brought greater volatility to sugar prices.

In the new press season beginning from Oct. 2008, there are several events that influence market trends:

The Yield
Under the impact of last year�fs frozen disaster and sugarcane farmers�f declining input in sugarcane, sugar cane production has dropped significantly. Beet sugar production in the north and cane sugar production in the south appear to increasingly decline, particularly the main producing area Guangxi�fs sugar production fell by 1.8 million tons, which created a foundation for sugar market recovery.

Consumption
Sugar consumption in 2008/09 press season is almost the same as the last season, about 13 million tons. Through analysis, this is mainly due to the impact of the economic crisis and sharp price rise in post-phase led to the use of other alternatives, replacing part of the sugar share.

Imports and Exports
The impact of international sugar shortage in the new press season made international sugar price sharply increase and China�fs imported sugar prices continued to rise. The import volume of the post-phase gradually declined. The full-year import volume had greater year-on-year increases.

Policy Orientation
The government launched early this year the acquisition policy of 800,000 tons of sugar purchasing and storage, making a slight reduction of sugar supply. How the government will deal with purchasing and storage of sugar and how to control the sugar market in the new press season is also the focus of our attention.
 

In this report, we will strive to explore objectively the sugar supply and demand, government regulation and control and sugar price trend in the new season, systematically summarize the macro-control, production, sale, import and export situation of China�fs sugar market in 2009/10 press season, focusing on exploring and discussing all aspects that impacted the sugar market in the new season and striving to objectively and accurately provide reference for China�fs sugar industry participants and representatives to make investment decision.

Background I
Chapter 1 Policy Environment of Sugar Manufacturing Industry 1
1.1 Government Supporting Policy to Sugar Manufacturing Industry 1
1.2 Development Plan of Sugar Manufacturing Industry 1
1.3 Policy on Entry into Sugar Manufacturing Industry 2
1.4 Policy on Sugar Procurement for Reserve 2
1.5 Procurement of Sugar Crops and Pricing Policy 2
1.6 Environmental Protection Policy of Sugar Manufacturing Industry 3
1.7 Policy on Sugar Import and Export 4
1.8 Policy on Sugar Substitutes 4
Chapter 2 Production of Sugar Crops and Trend 6
2.1 Sugarcane Production 6
2.1.1 Sugarcane Acreage 6
2.1.2 Regional Layout of Sugarcane Planting 6
2.1.3 Sugarcane Output 6
2.2 Sugar Beet Production 7
2.2.1 Sugar Beet Acreage 7
2.2.2 Regional Layout of Sugar Beet Planting 8
2.2.3 Sugar Beet Output 8
2.3 Sugarcane Production by Province 9
2.3.1 Sugarcane Acreage by Province 9
2.3.2 Sugarcane Yield by Province 9
2.3.3 Sugarcane Output by Province 10
2.3.4 Sugarcane Varieties Planted by Different Provinces 10
2.3.5 Area of Arable Land of Main Sugarcane Producing Provinces 13
2.4 Sugar Beet Production by Province 13
2.4.1 Sugar Beet Acreage by Province 13
2.4.2 Sugar Beet Yield by Province 14
2.4.3 Sugar Beet Output by Province 14
2.4.4 Sugar Beet Varieties Planted by Different Provinces 14
2.4.5 Area of Arable Land of Main Sugar Beet Producing Provinces 15
2.4.6 Sugarcane Procurement Price in Main Producing Provinces 16
2.4.7 Sugar Beet Procurement Price of Main Producing Provinces 16
Chapter 3 Sugar Production and Relevant Technical and Economic Indices 17
3.1 Sugar Production 17
3.1.1 Gross Sugar Production and Trend from 99/00-09/10 17
3.1.2 Sugar Production by Province from 99/00-09/10 17
3.2 Layout and Capacity of Sugar Crushing Plants 18
3.2.1 Quantity of Sugar Crushing Plants by Province 18
3.2.2 Daily Capacity of Sugar Crushing Plants by Province 19
3.3 Other Technical and Economic Indices of Sugar Crushing Plants 19
3.3.1 Production Cost of Sugar by Province 19
3.3.2 Mixed Sugar Yield by Province 21
3.4 Status of Sugar Refinery Plants 22
3.4.1 Layout of Refinery Plants 22
3.4.2 Capacity of Refinery Plants and Sugar Output in Late Years 22
Chapter 4 Sugar Consumption and Prospect 24
4.1 Gross Sugar Consumption and Trend 24
4.1.1 Gross Consumption and Forecast 24
4.1.2 Per Capita Sugar Consumption 25
4.2 Sugar Consumption by Food Processing Industry from 2000-2009 25
4.2.1 Monthly Aggregate Output of Carbonated Drinks and Sugar Consumption from 2006-2009 25
4.2.2 Monthly Aggregate Output of Fruit Juices/drinks and Sugar Consumption from 2006-2009 26
4.2.3 Monthly Aggregate Output of Dairy Products and Sugar Consumption from 2006-2009 27
4.2.4 Monthly Aggregate Output of Canned Food and Sugar Consumption from 2006-2009 27
4.2.5 Monthly Aggregate Output of Biscuits and Sugar Consumption from 2006-2009 28
4.2.6 Monthly Aggregate Output of Confectionary and Sugar Consumption from 2006-2009 28
4.2.7 Monthly Aggregate Output of Pastry and Sugar Consumption from 2006-2009 29
4.2.8 Monthly Aggregate Output of Fast-frozen Staple Food and Sugar Consumption from 2006-2009 29
4.2.9 Monthly Aggregate Output of Frozen Beverage and Sugar Consumption from 2006-2009 30
4.2.10 Sugar Consumption by Main Processing Companies in 2008 30
4.2.11 Sugar Consumption by Food Processing Industry 33
4.3 Sugar Consumption by Residents 34
4.3.1 Consumption by Residents of Different Provinces from 2000-2009 34
4.3.2 Forecast on Sugar Consumption by Residents 35
Chapter 5 Sugar Trade 36
5.1 Import 36
5.1.1 Sugar Import Volume and Trend from 2000-2009 36
5.1.2 Import of Granulated Sugar by Origin from 2000-2009 36
5.1.3 Raw Sugar Import by Origin from 2000-2009 38
5.2 Sugar Import by Company from 2002-2009 39
5.2.1 Import of Granulated Sugar by Company from 2002-2009 39
5.2.2 Raw Sugar Import by Company from 2002-2009 42
5.3 Sugar Import by Port from 2001-2008 43
5.3.1 Proportion of Sugar Import by Port in Total from 2001-2008 43
5.4 Export 44
5.4.1 Sugar Export and Trend from 2000-2009 44
5.4.2 Raw Sugar Export by Destination from 2000-2009 45
5.4.3 Export of Granulated Sugar by Destination from 2000-2009 46
5.4.4 Net Import of Sugar and Trend from 2000-2009 47
Chapter 6 Production, Consumption and Trend of Sugar Substitutes in China 49
6.1 Output and Trend of Starch Sugar from 1998-2010 49
6.1.1 Output of Starch Sugar and Sugar Equivalent from 1998-2010 49
6.1.2 Starch Sugar Consumption and Outlook from 1998-2010 50
6.2 Production and Consumption of Saccharin from 1998-2010 51
6.2.1 Saccharin Production from 1998-2010 51
6.3 Other Sugar Substitutes 52
6.3.1 Output of Other Sugar Substitutes and Forecast from 2000-2010 52
Chapter 7 Sugar Price 54
7.1 Domestic Price 54
7.1.1 Monthly Wholesale Price of White Granulated Sugar in Main Producing Regions from 1998-2009 54
7.1.2 Monthly Wholesale Price of White Granulated Sugar in Main Consuming Regions from 1998-2009 56
7.1.3 Monthly CIF Price of Imported Granulated Sugar from 2006-2009 58
7.1.4 Monthly CIF Price of Imported Raw Sugar from 2006-2009 59
7.2 International Price 59
7.2.1 Futures Price of New York 11 Raw Sugar from 2000-2009 59
7.2.2 Comparison of Domestic Sugar Price with Importation Price 62
7.3 Balance Table of Sugar Supply and Demand in 09/10 62
Chapter 8 Competitiveness of the Industry 64
8.1 Producers 64
8.1.1 Profit Margin and Outlook 64
8.1.2 Production Cost and Profit 65
8.1.3 Production Capacity 65
8.1.4 Risk Resistance Ability 66
8.1.5 Competitiveness of Enterprises of Different Scales 66
8.1.6 Competitiveness of Enterprises of Different Techniques 67
8.2 Processing Companies 68
8.2.1 Import Profit Margin and Outlook 68
8.2.2 Risk Resistance Ability 68
8.2.3 Companies Processing Imported Sugar and Their Production 69
Chapter 9 Capacity of Top 15 Sugar Producers and Production of Their Companies 70
9.1 Yangpu Nanhua Sugar Group 70
9.1.1 Companies Subordinated to Yangpu Nanhua Sugar Group 70
9.1.2 Capacity and Sugar Output of Yangpu Nanhua Sugar Group 70
9.2 Nanning Sugar Co., Ltd. 71
9.2.1 Companies Subordinated to Nanning Sugar Co., Ltd. 71
9.2.2 Capacity and Sugar Output of Nanning Sugar Co., Ltd. 71
9.3 Guangxi East Asia Sugar Group 71
9.3.1 Companies Subordinated to Guangxi East Asia Sugar Group 71
9.3.2 Capacity and Sugar Output of Guangxi Nanning East Asia Sugar Group 72
9.4 Guangxi Farm Reclamation Group 72
9.4.1 Companies Subordinated to Guangxi Farm Reclamation Group 72
9.4.2 Capacity and Sugar Output of Guangxi Farm Reclamation Group 72
9.5 Guangxi Fengtang Biochemical Co., Ltd. 73
9.5.1 Guangxi Fengtang Biochemical Co., Ltd. 73
9.5.2 Capacity and Sugar Output of Guangxi Fengtang Biochemical Co., Ltd. 73
9.6 Botian Sugar Co., Ltd. 73
9.6.1 Companies Subordinated to Botian Sugar Co., Ltd. 73
9.6.2 Capacity and Sugar Output of Botian Sugar Co., Ltd. 73
9.7 Guangxi Yongxin Huatang Group 74
9.7.1 Companies Subordinated to Guangxi Yongxin Huatang Group 74
9.7.2 Capacity and Sugar Output of Guangxi Yongxin Huatang Group 74
9.8 Guangxi Dongtang Group 74
9.8.1 Companies Subordinated to Guangxi Dongtang Group 74
9.8.2 Capacity and Sugar Output of Guangxi Dongtang Group 74
9.9 Yingbo Sugar 75
9.9.1 Companies Subordinated to Yingbo Sugar 75
9.9.2 Capacity and Sugar Output of Yingbo Sugar 75
9.10 COFCO Xinjiang Tunhe Co., Ltd. 75
9.10.1 Companies Subordinated to COFCO Xinjiang Tunhe Co., Ltd. 75
9.10.2 Capacity and Sugar Output of COFCO Xinjiang Tunhe Co., Ltd. 75
9.11 Yunnan Yingmao Sugar Co., Ltd. 76
9.11.1 Companies Subordinated to Yunnan Yingbao Sugar Co., Ltd. 76
9.11.2 Capacity and Sugar Output of