Sustainability Issues and Opportunities for Sugar and Integrated Industries in ASEAN Region

Abstract

The ASEAN nations play a significant role in the global sugar trade, collectively contributing approximately 10% of the world’s sugar production. These countries produce over 17 million tons of sugar annually, with imports and exports amounting to 9,108,624 tons and 7,421,737 tons, respectively, while domestic consumption stands at 15,836,900 tons. Thailand holds the position of the second-largest sugar exporter globally, commanding a 60% share of exports after Brazil. Indonesia ranks as the world’s third-largest sugar consumer and a significant importer. The Philippines, another sugarcane-producing country, focuses primarily on domestic consumption but aims to transition into a net sugar exporter. Southeast Asian countries represent 13% of global centrifugal raw sugar exports and 14% of global sugar imports, thereby exerting considerable influence on the global sugar trade. The annual import volume across ASEAN countries typically ranges from 5 to 6 MT, with cane sugar being the primary internationally traded sugar commodity from the region. Despite having favorable conditions, cane productivity, sugar production, and the overall status of the sugar industry in these nations face region-specific challenges. Sugarcane cultivation across ASEAN nations have been affected by climatic changes such as the El Niño phenomenon over the years. The governments of ASEAN Nations are taking initiatives to overcome this challenge. Recent economic developments, such as the establishment of the ASEAN Economic Community (AEC) and the ASEAN Free Trade Area (AFTA), alongside related reforms, have spurred these countries to adapt to emerging circumstances and enhance global competitiveness. This review highlights the current state of the sugar industry in the ASEAN countries, the challenges encountered by these nations in this sector, government initiatives to boost sugarcane production, and the way forward, particularly in light of new economic developments in the region.