Sugarcanes and Challenges

In the 1980s, the region of Lam Son-Thanh Hoa was quiet and wild. Several local state farms thought of sugar cane intensive growing. However, the sugar cane cultivation and sugar production was still based on manual technology. Sugar factories tried to seek better ways to make refined sugar.

 

Despite great efforts, what is economic efficiency and how to help local farmers to escape from poverty? Even, people thought of moving the most modern sugar factory in Vietnam to the southern region. It is a thought of economic development for linking farmers, workers and the intellectual circle that helped to deal with the problem.

On a visit to a sugar cane farm in Lam Son, Vice Chairman of Lam Son Sugar Association Le Thanh Hai said "Sugar cane is sweet, but growers even have to experience bitter taste". The feeling came when farmers did not gain high economic value from sugar cane. The development of cassava have ever taken the place of sugar cane, pushing its prices to between just VND3,000 and VND 4,000/kg.

 

The truth of sugar cane growing is not purely outstanding achievements mentioned by newspapers with the model of millions of VND. The success is gained through overcoming numerous challenges such as severe weather condition and market fluctuations. For instance, droughts and floods can reduce sugar reserves, affecting price drop of raw sugar cane. It is a great loss for a firm which spends up to from VND20 and VND30/ha of sugar cane. In the inter-crop of 2008 – 2009, prolonged droughts restrict sugar productivity.

 

MA Dang The Giang, Deputy Director of Lam Son Sugar Cane Joint Stock Corporation (Lasuco) said "The thing that we has keen on the most is local people’s strong attachment to sugar cane along with the suitable climate and soil condition". Without the attachment and great devotions of Chairman of Lam Son Sugar Association Le Van Tam, who actively came to sugar cane growing areas, the company could not keep from 14,000 to 15,000 ha of sugar cane.

 

A 30-year period full of ups and downs, Tam still shows his great attention to sugar cane. The sugar company has brought a fresh atmosphere to Lam Son. That is a modern economic thought and high-value sugar cane varieties have changed the locality. The chairman and his colleagues have deeply understood local people’s expectations. They have always tried to assist in fertilizer and purchase and especially sympathy. The cadres came to sugar cane farms and fields along with farmers to encourage them.

 

The Association and Lasuco are really a closed friend of the region where sugar cane is the only hope for poverty reduction. Vietnam has 37 sugar cane plants located in 37 different material areas, but none of them have experienced as may as challenges to gain success as the Lam Son base.

 

On October 26, 1995, Late Prime Minister Vo Van Ket signed a decision to set up the Lam Son Sugar Cane Association which is responsible for regulating and protecting farmers’ benefits, attaching benefits and rights of factories with growers. It also contributes capital to form risk provision funds. Other sugar cane factories and growers should follow this way for further development.

 

Farmers in Lam Son have turning hilly areas and fields into sugar cane farms. Thanks to advanced technology application, sugar cane here contains bigger sugar reserves. The company and farmers have closed cooperated with each other.

 

A local farmer said he only needs 10ha of sugar cane as it can bring an output of 1,000 tonnes. Sugar cane prices are estimated at 850,000/tonne this year and forecast at VND1 million/tonne next year. The area will give him a net profit of about VND400 million.

 

But, it is just a dream as only a small number of farmers have such the area. Most of them often do not feel safe to transfer their land to the company. Therefore, it will be a difficulty for Lam Son to become a modernised sugar cane intensive growing area.

Potential of Lam Son region are waiting for explorations. Construction of Lam Son Industrial Park is underway and the Lam Son Sugar Cane Joint Stock Corporation is the driving force to help local farmers to set up new firms. Over 10,000 households with nearly 30,000 labourers in 112 communes and four farmers are pinning their hope on Lam Son Sugar Cane Joint Stock Corporation.