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The Mexican Sugarcane Industry: Overview, Constraints, Current Status and Long-Term Trends

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Sugarcane (Saccharum species hybrid) as a source and epicenter of the renewable energy, bio-fuels and bio-materials, as well as a food crop, is becoming more widely recognized as a source of rural livelihoods. Sugarcane production in Mexico has more than 490 years of history; however, Mexican sugar industry is recognized as uncompetitive in nature, mainly due to stagnating low sugarcane and sucrose yield and highly fiber in stalks per hectare and variability in the production process. Average yields of sugarcane (TCH) range from 60 to 70 metric tons/ha and sucrose yields (TSH) 8,000 kg/ha last decade. The sugarcane agriculture yield decline has been defined as “the loss of productive capacity of sugarcane growing soils under long term monoculture” and takes place in a highly distinctive landscape on both the Pacific and Gulf of Mexico coasts and in high mountain river valleys in central Mexico. The sugar mills are characterized by a dichotomy because vary greatly in size, age and technology with a preponderance of medium and small mills, old, obsolete and inefficient technologies, which increases the cost of sugar production in Mexico compared to countries with advanced technology and supporting system. Therefore, Mexico is considered as a medium-to-low cost producer of sugar. These factors have adversely affected sugarcane growers and sugar industry, and constantly eroding their sustainability and profitability. The sugar has assumed the status of “political goods” like petroleum. The Mexican sugar industry is facing numerous challenges, like high crushing capacities and environmental impact, high demand from domestic market but low sugarcane productivity and capacity to supply sugar cane from fields. The diversification without strategies of sugarcane growers and sugar factories for improving profitability and competitiveness for creating the grounds for a green and sustainable biorefinery industry and to develop a modern agro-industry to fill a national need in food and biofuels also needs immediate attention. In this review, performance, present and future relevant aspects of the sugar industry are presented and discussed.
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REVIEW ARTICLE
The Mexican Sugarcane Industry: Overview, Constraints,
Current Status and Long-Term Trends
N. Aguilar-Rivera D. A. Rodrı
´guez L.
V. Enrı
´quez R. A. Castillo M. A. Herrera S.
Received: 26 January 2012 / Accepted: 28 April 2012 / Published online: 3 July 2012
ÓSociety for Sugar Research & Promotion 2012
Abstract Sugarcane (Saccharum species hybrid) as a
source and epicenter of the renewable energy, bio-fuels and
bio-materials, as well as a food crop, is becoming more
widely recognized as a source of rural livelihoods. Sugar-
cane production in Mexico has more than 490 years of
history; however, Mexican sugar industry is recognized as
uncompetitive in nature, mainly due to stagnating low sug-
arcane and sucrose yield and highly fiber in stalks per
hectare and variability in the production process. Average
yields of sugarcane (TCH) range from 60 to 70 metric tons/
ha and sucrose yields (TSH) 8,000 kg/ha last decade. The
sugarcane agriculture yield decline has been defined as ‘‘the
loss of productive capacity of sugarcane growing soils under
long term monoculture’’ and takes place in a highly dis-
tinctive landscape on both the Pacific and Gulf of Mexico
coasts and in high mountain river valleys in central Mexico.
The sugar mills are characterized by a dichotomy because
vary greatly in size, age and technology with a preponder-
ance of medium and small mills, old, obsolete and inefficient
technologies, which increases the cost of sugar production in
Mexico compared to countries with advanced technology
and supporting system. Therefore, Mexico is considered as a
medium-to-low cost producer of sugar. These factors have
adversely affected sugarcane growers and sugar industry,
and constantly eroding their sustainability and profitability.
The sugar has assumed the status of ‘‘political goods’’ like
petroleum. The Mexican sugar industry is facing numerous
challenges, like high crushing capacities and environmental
impact, high demand from domestic market but low sugar-
cane productivity and capacity to supply sugar cane from
fields. The diversification without strategies of sugarcane
growers and sugar factories for improving profitability and
competitiveness for creating the grounds for a green and
sustainable biorefinery industry and to develop a modern
agro-industry to fill a national need in food and biofuels also
needs immediate attention. In this review, performance,
present and future relevant aspects of the sugar industry are
presented and discussed.
Keywords Sugar industry development
Sugarcane productivity Constraints
Competitiveness improvement Mexico
The Mexican Sugar Industry: Structure
and Background
Sugar (sucrose) is produced on an industrial scale in over
133 countries worldwide with a tropical climate. In most
years, over 70 % of world sugar production is consumed
domestically which allowed the development of a large
export market. Sugarcane and sugarbeet are two main
sources of white crystal sugar in the world. Out of world’s
total white crystal sugar production, about 79.8 % comes
from sugarcane and 20.2 % from sugarbeet. More than 100
countries in the world cultivate sugarcane (Saccharum
species hybrids). It production is predicted to increase
13.4 % in 2020 worldwide. Mexico is the world’s seventh
largest producer of sugar (3 % worldwide) and is fifth
amongst sugar cane producing nations with a long tradition
of high per capita sugar consumption and the inherent
weaknesses of a developing economy. The sugar industry
forms an integral part of the rural economy and provides
N. Aguilar-Rivera (&)D. A. Rodrı
´guez L. V. Enrı
´quez R.
A. Castillo M. A. Herrera S.
Facultad de Ciencias Biolo
´gicas y Agropecuarias,
Universidad Veracruzana, km 1 carretera Pen
˜uela-Amatlan,
94945 Co
´rdoba, Veracruz, Mexico
e-mail: naguilar@uv.mx
123
Sugar Tech (July-September 2012) 14(3):207–222
DOI 10.1007/s12355-012-0151-3
high incomes for its farmers or canegrowers (can
˜eros).
Most of the sugar produced in Mexico is consumed
domestically which indicate the economic importance of
sugar in the national diet.
However, Mexico’s production is predicted to increase
by 5.8 million metric tons in 2020 (10.6 %) to export 586
thousand metric tons mainly to the United States under
NAFTA (the North American Free Trade Agreement),
Canada, Puerto Rico and others (Fig. 1). The sugar con-
sumption is predicted to increase to 5.2 million metric tons
in 2020 (4.7 %) as more sugar is used in processed prod-
ucts under the assumption that Mexico does not convert to
HFCS in their soft drink (carbonated drinks) industry.
Ending stocks are predicted to increase by 19.1 %. If
Mexico replaces the sugar that is used in soft drinks with
HFCS, the excess sugar will likely be exported to the
United States under NAFTA (Koo and Taylor 2011).
At 2012, Mexico’s population of about 110 million uses
about 5.0 million (metric) tons of sugar per year (47 kg/per
capita consumption in raw form), and this indicates the
medium standard of living and income, which was above
world average per capita consumption (21 kg) with the
largest demand coming from the soft drink beverages
industry (consumption in Mexico has grown to 150 L per
capita since 1980’s on the basis of the current trends and is
expected to increase), food processing industry, chemical
industry, cosmetic and pharmaceutical industry. The sugar
supply and utilization data from 2006 to 2010 were 5,462
production, 394 net exports and 1,253 ending stocks (in
million metric tons). Under the North American Free Trade
Agreement (NAFTA), Mexico currently is allowed to
export excess sugar to the United States and Canada. Thus
the viability of the industry don’t depends largely on the
conditions and prices prevailing in the world market for
sugar.
The Mexican sugar industry is largest agricultural
industry after corn (0.5 % of national GDP and 2.5 % of
manufacturing gross). Despite sugar’s importance and the
support provided to the industry each year (8 % of the
country’s agricultural subsidies), the Mexican sugar industry
has stagnated, and sugarcane producers facing low incomes.
Some analysts have identified market liberalization
Fig. 1 Mexican sugar exportation (INEGI 2011)
208 Sugar Tech (July-September 2012) 14(3):207–222
123
strategies in Mexico pursued as a cause of the crisis in the
sugar industry (Scaife 2010).
However, the industry as a whole provide significant full
and part time employment for more than 400,000 jobs,
including cane cutters, seasonal field workers, cane trans-
port, factory workers and administrative, technical and
management personnel. Consequently, over 2.2 million
people depend on the Mexican sugar industry for a direct
job and indirectly employing more than 12 million people
in 227 municipalities most of them are the rural
communities.
In this context, the first sugarcane plants (Castilla’s
variety) were brought to Mexico from Cuba Island in the
early 16th century (1521) by Spanish settlers (Hernan
Cortes). The first sugar mill was established in 1536 in San
Andres Tuxtla Veracruz. Many major plantations were set
out as they were in the Caribbean and Brazil. Mexico’s
indigenous population provided a resident labor force,
augmented by the introduction of some slaves from Africa.
The cultivation of sugarcane was encouraged and devel-
oped on a significant scale to making sugar and export to
Europe because it proved to be the only crop suitable to
local climatic, soil and topographic conditions, and it could
therefore be grown on a commercial basis as a sugar
manufacturing factory and also providing much-needed
calories to its population.
Mexican sugar industry has always been considered of
public interest (socio-economic-political imperatives).
Thus, the early sugar industry in Mexico was closely linked
to its colonial history and the regime changes mostly
controlled by foreign business concerns, but the develop-
ment of sugar, as an organized and modernized industry in
the country, was started at the beginning of the twentieth
century with the land reform at the end of the Mexican
Revolution created communal tracts of land called Ejidos
for Mexico’s peasantry, as a strategic for the Mexican
government for sugar as commodity, and resulted in
increased productivity in sugarcane crop fields, so it was
necessary to bring more expansion and growing land under
sugarcane cultivation, thus the sugar legislation started in
the beginning of 1940’s with Decretos can
˜eros; this
decrees governing the conditions of production and the
establishment of the price of cane, and revised periodically
because its contribution to the Mexican economy in terms
of labor and local consumption and significantly to the
socioeconomic development of rural population due the
main occupation of the majority of the labour force is
sugarcane farming. They were modified in 1944, 1971,
1974, 1980 and 1991. In 1949, an Agricultural Research
Institute named Instituto para el Mejoramiento de la Pro-
duccio
´n de Azu
´car (IMPA) was established with Research
Stations to address sugarcane agriculture and related
problems as agronomy, entomology, and agricultural
engineering but mainly focused on the improved breeding
for sugarcane Mex varieties. It was closed at 1990 and the
activities of sugarcane research were transferred to the
Universities and Sugar groups without economic support
and investments.
The post-World War II political economy was charac-
terized by oligopoly capitalism and heavy state support for
Factoryyield(%)
Sugarcaneyield(TCH)
Sugar yield (TSH)
Fig. 2 Productivity of
sugarcane countries producers
(FAOSTAT 2011)
Sugar Tech (July-September 2012) 14(3):207–222 209
123
Tamaulipas
San Luis Potosí
Sinaloa
Nayarit
Veracruz
Jalisco
Colima
Michoacán
Morelos
Puebla
Oaxaca
Chiapas
Quintana Roo
Tabasco
Campeche
Fig. 3 Mexican sugarcane
states producers
Fig. 4 Sugar mills and regional geographical distribution (Aguilar-Rivera et al. 2011)
210 Sugar Tech (July-September 2012) 14(3):207–222
123
SucroseYield(t/ha)
SugarcaneYield (t/ha)
Sug ar Mill Yie ld (%)
Tala
Benito Juárez
San Rafael Pucte
San Pedro
FEESA Sugar Mills
Private Sugar Mills
NationalAverage
Higth
Productivity
Low
Productivity
Fig. 5 The Mexican sugarcane
industry productivity by sugar
mills (Aguilar-Rivera et al.
2011)
Fig. 6 Supply capacities from sugarcane growing areas Region 1
Sugar Tech (July-September 2012) 14(3):207–222 211
123
Mexico’s sugar industry. State control of the industry cli-
maxed in the 1970s when the government nationalized,
builds and closed sugar mills
1
and unionized mill workers
and can
˜eros gained social benefits such as higher wages
and cane which maintained stringent production and mar-
keting controls. These benefits discontinued since 1975
onwards with reductions in levels of credits available for
cane production, the removal of subsidized inputs, higher
rates, and perennially low prices meant deteriorating con-
ditions of production throughout the 1990s and 2000s. The
1982 and 1994 debt crisis and the subsequent structural
adjustment, facilitated the dissolution of traditional insti-
tutions for managing the agricultural economy and
researching which promoted a competitive transition in the
global market.
However, there has always been a close relationship
between its overall development and the land policies,
mostly through government support and control of payment
by mill owner for cane, without the creation of a ‘home-
grown’ technology or technological advances to increase
sustainable productivity and the efficient utilization of
sugarcane (lack the technical capacity), to ensure a fair
living standard for the agricultural society. This way, the
support failed and unsuccessful economic and social chan-
ges took place in Mexico for sugar industry, in the transition
from a developing country to a developed country
(1970–2000) and it led to disinterest of private sugar mills as
was discussed earlier (Aguilar-Rivera et al. 2011; Enrı
´quez
2009; Scaife 2010; Chollett 2009; Powell 2007; Singelmann
2003,1996,1995,1981; Castillo Giro
´n and Aguirre 2005;
Rappo 2002; Mestries 2000; Borell 1991).
Sugarcane is grown under a wide array of agro-climatic
conditions extending from the tropics to sub tropics because
of Mexican geographical location; sugarcane production is
affordable in comparison to USA and European sugar beet.
However, sugarcane crop production in Mexico is a complex
Fig. 7 Supply capacities from sugarcane growing areas Region 2
1
In 1950, there were 96 sugar mills in Me
´xico in 16 states sugar cane
producers (Sinaloa, Nayarit, Colima, Jalisco, Michoaca
´n, Guerrero,
Morelos, Puebla, Oaxaca, Chiapas, Campeche, Yucata
´n, Tabasco, San
Luis Potosı
´, Tamaulipas and Veracruz) located in 14 regions (Sinaloa,
Nayarit, Jalisco, Colima, Michoaca
´n, Balsas, Tehuaca
´n, Papaloapan-
Istmo, Soconusco, Yucata
´n, Tabasco, Veracruz-Central, Veracruz-
Costa and Huastecas) with a production of 1,122,943.6 t. sugar. In
1960 there were only 75 sugar mills. 64 in 1970, 67 in 1980, 64 in
1990, 61 in 2000 and 57 in 2012 located since 2005 in 6 new regions
(Northwest, Pacific, Center, Northeast, Gulf of Mexico and
Southeast).
212 Sugar Tech (July-September 2012) 14(3):207–222
123
process consisting of inter-dependent sub-processes like
planting, varieties selection, irrigation, fertilization, cultural
operation, crop protection, harvesting, etc., and requires
decision support at various stages for maximum production.
Actually, the crop experiences various types of biotic
and abiotic stress, and it’s highly vulnerable to diseases,
pest, weeds, water loss, storms and other unpredictable
natural events as ENSO. Sugarcane has traditionally been
cultivated over a average 7-year cycle on 13 % plantilla
(year-old cane), 15 % soca (2 year old), and 72 % resoca
(more than 2-year-old cane) or higher number of rations in
the fields of total acreage, which affect the profitably and
determine the impact of cane growing practices on the
environment, consequently the productivity in the pro-
ducers regions is relatively low compared to others coun-
tries (Fig. 2).
Sugar Industry Structure
The national interest in sugarcane has increased signifi-
cantly in recent years due to its economic impact on
sustainable energy production but Mexico’s productivity in
sugarcane fields is consistently low, with yields falling
(cane tonnage) in recent years with regions that are
unsuitable for sugarcane. This is because of underdevel-
oped agricultural methods and rely on rain-fed agriculture
which is extremely unpredictable and there are insufficient
available cane for supply as per the mills’ capacities; this
also resulted in immature cane being crushed in some
mills, which is reflected in the poor mixed juice purities
and cane RVs (FIRA 2009). Thus, the sugarcane produc-
tion in Mexico is linked to factors like climatic conditions,
soil conditions, water resources, human factors, economic
conditions etc. which impacts on natural factors, the solu-
tion depends on many factors as different farming practices
(Aguilar-Rivera et al. 2010).
Sugarcane fields cover up 770,000 hectares supplying
raw material to 57 sugar mills, located in 15 states and 6
regions (Figs. 3,4). Sugarcane represents 3 % of total
Mexican crop area (3.3 %). The principal states of sugar
cane production are: Veracruz (1.6 million metric tons)
with 270,000 hectares, Jalisco (0.5 million) in 63,000 ha
and San Luis Potosı
´(0.45 million) in 74,300 ha. Veracruz
Fig. 8 Supply capacities from sugarcane growing areas Region 3
Sugar Tech (July-September 2012) 14(3):207–222 213
123
is the leading state by far in terms of area of sugarcane
fields (36.7 %) followed by Jalisco (11.4 %), San Luis
Potosı
´(10.3 %) others producers are: Oaxaca (5.6 %);
Chiapas (5.5 %); Tamaulipas (4.6 %); Nayarit (4.3 %);
Puebla (3.7 %); Morelos (3.6 %); Quintana Roo (3.4 %);
Tabasco (3.1 %); Sinaloa (2.7 %); Colima (2.3 %); Mich-
oaca
´n (2.1 %) and Campeche (0.9 %).
Some Mexican sugar mills have increased efficiency
since the 1990 s; however sugarcane crop fields are not
sufficient to maintain mills capacities (Figs. 5,6,7,8,9,
10,11).
It is interesting to note that sugar mills belonged to
private sector in 13 private business groups with 76 % of
national production, and the government (FEESA) or
public administration accounts for the remaining 24 %
(Tables 1,2), being the largest individual group, thus with
economic power over national sugar prices (Acosta 2011).
According to Aguilar-Rivera et al. (2010) the last sugar
mill (Plan de San Luis) was built in 1984 and several mills
have an average age of 77 years and facing financial crisis
which reduce strategy amplitudes. The most competitive
sugar mills are: Pujiltic (La Fe), Atencingo, Melchor
Ocampo, A. Lo
´pez M. and Tamazula. San Cristobal,
Atencingo, Tres Valles, El Potrero and Tala are the largest
sugar mills, which are having raw sugar industry and
refinery. The rest are raw sugar or refined producers with
low level of product diversification using byproducts as
filter mud, bagasse and molasses and productive flexibility,
without enhancing infrastructure facilities to further reduce
costs. There is a debate about the future of at least five of
these units due their relatively low scale economy and high
production costs (Enrı
´quez 2009).
Sugarcane Crop Fields
At sugarcane crop fields, the most important sugarcane
varieties are CP 72 2086, Mex 69 290, Mex 79 431, Mex
68P23, RD 7511, SP 70 1284 and Z Mex 5532 (Table 3);
insect pests in Mexico are the sugarcane borers Diatraea
saccharalis (Barrenador) (4.8 %), rata can
˜era (Sigmodon
hispidus) (2.9 %), Gusano cogollero (Spodoptera
Fig. 9 Supply capacities from sugarcane growing areas Region 4
214 Sugar Tech (July-September 2012) 14(3):207–222
123
frugiperda) (1.0 %) and Aeneolamia contigua Walker
(Mosca Pinta) (10.1 % total sugar field) that had showed a
continued increase throughout the industry, with a known
impact on yield an quality (Fig. 12).
Mexico and the sugar sector offer a great potential for
employment and income generation; however, at harvests
season from late November to June (zafra) 2010/2011 yields
were forecast to average 65.570 (metric) tons per hectare and
7,702 kg sucrose/ha, yields that low haven’t been seen since
1970s, despite the steady increase in area harvested (Fig. 13)
that would be about 15 % lower than the prior years, due to
vulnerability to climate change, ENSO, unusually cool and
damp harvest conditions especially in Veracruz (largest
sugarcane producer state). This way, 62 % of the cane
growers produce under rainfed conditions; only 38 % are
irrigating their sugar cane fields as well as intensive culti-
vation, thus, small farms produced sugarcane more slowly,
and with poor quality which impact on the efficiency on
sugar mills. Despite high overall output, Mexico’s sugar
industry suffers low productivity and crop diversification
due to stagnating sugarcane yields and low sucrose content
in stalks (Scaife 2010).
There are 165,000 cane growers averaging nearly 4 ha
or less in area per canegrower (small-scale farmers) con-
tributed 61 % of total sugarcane production in about
133,763 farms with barriers in sugarcane planting, culti-
vation, and harvest in a Land Tenure structure Ejidal or
communal (74.5 %) and private (24.5 %) who supply cane
to the sugar mills and trapiches for panela or jaggery, only
a small percentage are larger than 10 ha. Sugarcane pro-
duction value at 2010/2011 harvest season (zafra) was
$2,152 million USD and cane prices have shown a con-
siderable increase since the beginning of the past decade
from $32.325 to $53.874 USD/t. cane; thereby in terms of
averages was nearly 66.7 % higher than in 2001, as a result
of a continuation of government policies that intervene in
sugar chain fuelled by growth in sugar consumption, rising
incomes and populations trying to motivate productivity
despite the adverse effects of cost of transportation fuel,
fertilizer, agricultural labor and seed cane.
Fig. 10 Supply capacities from sugarcane growing areas Region 5
Sugar Tech (July-September 2012) 14(3):207–222 215
123
The educational level of farmers and workforce is low
and not adequate (71 % have only basic education 6 years).
The 98.9 % of canegrowers are men with an average age of
40 years. The seasonality of sugarcane production has a big
impact on its ability to create high quality jobs, because the
work associated with sugarcane production and harvesting
manually is highly seasonal, jobs tend to be temporary;
this, in turn leads to high turnover, difficulty in training and
consequently low wages, besides the new climatic condi-
tions and agronomic characteristics of the crop (old vari-
eties) limit the harvesting season (zafra) to 6 months out of
the year. As a result, while at the beginning of the 2000s
the sugar producers received, on average, 4 % more sugar
from one harvested hectare than 2011 therefore, currently
this advantage has been reduced.
Sugarcane growers are well organized, with the largest
number of private land owners affiliated with the Union
Nacional de Productores de Can
˜a (CNC), i.e., the National
Union of Cane Producers. The ejidatarios or communal
land cane growers are largely represented by the Union
Nacional de Can
˜eros (CNPR) (National Union of Sugar-
cane Growers). Sugarcane workers are belonged to two
unions: Sindicato de Trabajadores de la Industria Azuca-
rera y Similares de la Republica Mexicana (STIASRM)
(Association of Industry Sugar Workers of Mexico) and the
Confederacion Regional Obrero Mexicana (CROM) (the
Regional Confederation of Mexican Workers). The salaried
employees in the milling industry are represented by the
Camara Nacional de las Industrias Azucarera (National
Chamber of the Sugar and Alcohol Industry) (Buzanell
2011).
The regulatory framework for the Mexican sugar
industry (public policies), in terms of rigidities and ineffi-
ciencies, without a enhanced capability for identification of
developments, trends, risks and opportunities in the inter-
national market through better integration for the entire
Research, Development, & Extension (RD&E) effort,
leadership and creativity/innovation for the sugar industry
is established primarily by the Ley de Desarrollo Sustent-
able de la Can
˜a de Azu
´car (2005) and El Programa
Fig. 11 Supply capacities from sugarcane growing areas Region 6
216 Sugar Tech (July-September 2012) 14(3):207–222
123
Nacional de la Agroindustria de la Can
˜a de Azu
´car
(PRONAC 2007/2012). The legislation seeks to provide a
framework for the supply of sugarcane by farmers, in terms
of the quantity and price, to a mill and the vesting and
marketing of raw sugar on behalf of all farmers and millers
without a competitive environment. The legal issues linked
Table 1 Mexican sugar mills
Sugar group Sugar mills Sugar group Sugar mills
AGAZUCAR Los Mochis
Puga
Grupo
Motzorongo
Central
Motzorongo
El Refugio
SAGARPA-FEESA Atencingo
El Modelo
Emiliano
Zapata
Plan de San
Luis
San
Miguelito
Jose
´Marı
´a
Morelos
La Joya
Casasano
El Potrero
La
Providencia
San Cristo
´bal
San Pedro
Grupo Porres Santa Clara
Huixtla
Grupo PIASA Adolfo Lo
´pez
Mateos
Tres Valles
Grupo Sa
´enz Aaro
´nSa
´enz
Garza
El Mante
Tamazula
Ingenios
Santos
Alianza
Popular
Plan de Ayala
Bellavista
Pedernales
Cuatotolapam
San Gabriel
Grupo Azucarero
Me
´xico
Tala
Benito Jua
´rez
La
´zaro
Ca
´rdenas
Eldorado
Zucarmex Pujiltic
Mahuixtla
´n
El Higo
Melchor
Ocampo
Grupo Garcı
´a
Gonza
´lez
Calı
´pam
El Carmen
Nuevo San
Francisco
Independientes Ingenio El
Molino
Azsuremex
Ingenio La
Concepcio
´n
Ingenio La
Primavera
Ingenio San
Jose
´de Abajo
Independencia
Grupo La Margarita Central
Progreso
Zapoapita
La Margarita
Servicios
Azucareros del
Tro
´pico
La Gloria Domino Foods
Me
´xico
San Nicola
´s
Beta San Miguel Constancia
San Francisco Ameca
San Miguel Naranjo
San Rafael Pucte
Queseria
Santa Rosalı
´a de la Chontalpa
Table 2 State sugar mills (CNPR 2011)
States Sugar mill
Campeche La Joya
Chiapas Pujiltic
Huixtla
Colima Queserı
´a
Jalisco Bellavista
Jose
´Marı
´a Morelos, Melchor Ocampo,
San Francisco Ameca, Jose
´Marı
´a
Martı
´nez Tala, Tamazula
Michoaca
´n Pedernales
La
´zaro Ca
´rdenas
Santa Clara
Morelos Casasano La Abeja
Emiliano Zapata
Nayarit El Molino
Puga
Oaxaca Adolfo Lo
´pez Mateos
El Refugio
La Margarita
Puebla Atencingo
Calı
´pam
San Luis Potosı
´Alianza Popular
Plan de Ayala
Plan de San Luis
San Miguel del Naranjo
Quintana Roo San Rafael de Pucte
´
Sinaloa El Dorado, Los Mochis,
La Primavera
Tabasco Azsuremex Tenosique
Santa Rosalı
´a
Benito Jua
´rez
Tamaulipas Aaro
´nSa
´enz Garza
El Mante Xico
Veracruz Independencia
Cuatotolapam
El Modelo
El Potrero
La Providencia
San Cristo
´bal
San Gabriel
San Miguelito
San Pedro
Zapoapita
Central Motzorongo
Central Progreso
Constancia
El Carmen
El Higo
La Concepcio
´n
La Gloria
Mahuixtla
´n
Nuevo San Francisco
San Jose
´de Abajo
San Nicola
´s
Tres Valles
Total 57 Sugar mills
Sugar Tech (July-September 2012) 14(3):207–222 217
123
to the sugarcane cultivation as a monoculture, transport
processes and sugar process (extremely harmful to the
environment) as soil quality, water contamination by
pesticides herbicides and irrigation, fertiliser management,
impact of sugar mills on air pollution and the impact of
cane burning on air pollution are not considered. Coupled
to this, is the fact that there is not a formal institute for
RD&E in sugarcane since 1990; the research is carried out
marginally by some universities and sugar groups.
Challenges and Directions
Mexican sugar industry as an economically, environmen-
tally, and socially sustainable industry, with considerable
capacity to expand sugar cane area on a large scale, along
with the projected growth in ethanol production, it has the
potential to produce high-quality sugarcane (cane to sugar
ratios) in at least some regions (Jalisco, Morelos, Puebla
and Chiapas) using appropriate technology and handling as
irrigation and high mechanization application (Brunini
et al. 2010). It is concerning, though, that not all regions
produce at internationally competitive levels (low level of
productivity and profitability) while other regions continue
to produce sugarcane when the quality of the cane is so
poor (Campeche, Tabasco, San Luis Potosi).
At present, variations in sugarcane production are the
function of two factors, sugarcane crop area and produc-
tivity. The growth in area and productivity (quantity and
Table 3 Sugarcane varieties in Mexico (Flores 2008)
Varieties Area (ha) Varieties Area (ha)
Mex 69-290 183,154.35 CP 72-2086 218,782.52
Mex 79-431 59,044.84 RD 75-11 23,896.55
Mex 68-P-23 35,015.36 SP 70-1284 12,946.16
Mex 57-473 26,988.02 Co 997 11,672.62
ZMex 55-32 10,659.41 My 5514 10,166.84
Mex 69-749 8,753.29 NCo 310 6,107.51
Mex 68-1345 8,341.74 L 6014 5,227.96
Mex 73-1240 6,256.57 CP 74-2005 4,793.50
ITV 92-1424 4,928.44 CP 44101 4,841.26
Mex 80-1410 3,527.53 Q 96 3,103.17
ITV 92-373 3,142.54 CP 70-1527 2,582.08
Mex 9662 1,195.28 CP 72-1210 2,349.88
Mex 80-1407 1,127.38 SP 74-5203 1,215.40
Mex 80-1415 1,055.46 Q 68 602.5
Mex 80-1428 1,096.49 RB 73-9735 602.5
Mixtures 3,717.53 Mixtures 2,200.96
Others 19,317.02 Others 4,820.94
Total 378,529.27 Total 315,913.16
Domestic 55.00 % Foreign 45.00 %
Fig. 12 Impact on sugarcane productivity by producer state (SIAP 2010)
218 Sugar Tech (July-September 2012) 14(3):207–222
123
quality) during the last five decades has not been uniform
or steady. It has been observed that there is considerable
year to year fluctuation because varied substantially
declining yields and supplies during the last 10 years,
depending upon their agro-climatic conditions, nature of
crop (plant or ratoon), variety grown, fertilizers, input use
as diesel fuel, days of sunlight, rainfall received and extent
of irrigation available and production cost (Tables 4,5).
This phenomenon has been highlighted by Aguilar-Rivera
et al. (2011,2010) when focusing on the fact that industry
structure characteristics are partially endogenously.
The forecast production is made up of over 3.4 million
tons of standard or raw sugar (43 sugar mills), over 1.7
million tons of refined sugar produced at integrated mills
(14 sugar mills), and a smaller volume of traditional
Fig. 13 Historical sugarcane
area growth and yield
(1937–2011)
Table 4 Productivity of Mexican sugar industry last decade (2000–2011)
Zafra Total harvest
area (ha)
Average cane
yield (ton/ha)
Sucrose yield
(t/ha)
Total sugarcane
production (t)
Total sugar
production (t)
Total ethanol
production (L)
2001/02 609,157 70.431 7,999 42,903,622 4,872,388 46,744,002
2002/03 600,792 73.150 8,202 43,948,244 4,927,574 39,244,028
2003/04 608,715 74.676 8,254 45,456,250 5,024,078 34,558,142
2004/05 657,145 77.445 8,821 50,892,642 5,796,439 59,326,646
2005/06 658,776 71.785 8,018 47,290,412 5,282,088 50,068,096
2006/07 675,416 72.586 7,868 49,025,604 5,314,081 38,865,959
2007/08 683,008 70.725 8,083 48,305,474 5,520,687 19,427,526
2008/09 663,057 64.122 7,484 42,516,838 4,962,495 14,504,473
2009/10 647,937 66.936 7,448 43,370,288 4,825,539 11,826,693
2010/11 673,050 65.570 7,702 44,131,570 5,183,500 19,342,517
Table 5 Sugarcane production cost (FIRA 2009)
Activity/production regime Rainfed Irrigation
$USD/ha % Cost $USD/ha % Cost
Crop management 133.56 10.6 141.41 7.66
Fertilization 324.30 25.8 466.67 25.28
Irrigation 0 0 113.63 6.16
Pest and weeds control 208.30 16.6 200.00 10.83
Harvest 425.93 33.9 718.74 38.93
Others 164.81 13.1 205.78 11.15
Total 1256.89 100 1846.22 100
Sugarcane yield 57 t/ha 85.5 t/ha
Sugarcane production cost $22.3 USD/t.
sugarcane
$21.6 USD/t.
sugarcane
Sugar Tech (July-September 2012) 14(3):207–222 219
123
muscovado (2 sugar mills). The soft-drink industry absorbs
one-third of the 55 % of sugar destined for industrial use in
Mexico and 45 % is destined to domestic consumption.
The industry uses bagasse, the fibrous waste material
remaining after the juice has been extracted from the sugar
cane, to provide process heat for the boilers and energy. In
addition, 1.6 Mt of molasses were produced, of which 0.05
Mt (3.6 %) were used to produce ethanol (currently there
are only four integrated distilleries to sugar mills) with an
output of 19.3 ML. The establishment of additional dis-
tilleries has increased competition in this segment of the
sugarcane and molasses market over recent years. While
most of the remaining molasses was exported, mainly to
the USA, it could alternatively be used as an ethanol
feedstock that might yield up to 400 ML of biofuel (Garcı
´a
et al. 2011). The Mexican sugar industry had low pro-
ductivity during the last decade (Table 6), and a large
number of sugar mills have diversified poverty into
byproduct based industries and did not invest and set up
distilleries, organic chemical plants, pulp and paper and
cogeneration plants resulted in loss of revenue.
Mexico’s geographical location permits theoretically a
good production of sugarcane, there is also the potential for
opportunity. However, Mexico’s sugarcane industry is a
contradiction and faces numerous serious challenges,
including: vulnerable plants, poor drainage of soils in some
areas, winter frosts in some mountain areas, especially in
the more north growing regions, limited and unreliable
rainfall especially in periods of drought, are a major
problem, mainly in Veracruz and San Luis Potosi where
irrigation systems are inadequate; level of production
inputs (fertilizers, pesticides, etc.), burning the cane fields
prior to harvest as a common practice (90 % of the har-
vested sugarcane); transport costs which contribute to the
high price of sugarcane in Mexico, small size of production
units which limits investment and improvements and low
efficiency of older sugar mills.
At present when Mexican Government is emphasizing
to stabilize the sugarcane productivity by improving its
environmental performance; it is essential to raise the sugar
yield per hectare for enhancing total production of cane and
sugar and to respond effectively to the current global
environment, developing a range of skills in the areas of
technology, marketing, management, human resources, and
finance in order to raise productivity. It should must be
known that how far productivity varies from state to state,
Table 6 Productivity indicators from Mexican sugar industry (CNPR
2011)
Indicator/zafra 1999/2000 2010/2011 Diference
Area under sugarcane
cultivation (ha)
611,297 673,050 ?10.10
Number of sugar mills
installed
59 54 -8.47
Average duration of crushing
(Days)
167 145 -13.17
Average cane yield (t/ha) 68.872 65.570 -4.79
Sugar yield (t/ha) 7,682 7,702 ?0.26
Sucrose % cane 13.531 14.100 ?4.21
Fiber % cane 13.410 13.350 -0.45
Brix % clarified juice 16.220 16.803 ?3.59
Bagasse % cane 29.640 29.093 -1.85
Sugarcane production (t) 42,101,037 42,903,622 ?1.91
Sucrose loss (%) 2.41 2.32 -3.73
Lost in bagasse (%) 0.727 0.687 -5.50
Lost in filter cake (%) 0.138 0.135 -2.17
Lost in final molasses (%) 1.173 1.237 ?5.46
Undetermined losses (%) 0.249 0.329 ?32.13
Extraction (sucrose based) 96.266 96.654 ?0.40
Sucrose recovery rate (%) 82.180 83.067 ?1.08
Imbibition % cane 25.55 25.75 ?0.78
Sugar mill Yield (%) 11.36 11.75 ?3.43
Total time loss (%) 26.32 15.05 -42.82
Cane mechanically harvested
(%)
8.601 17.464 ?103.05
Cane mechanically loaded
(%)
81.838 80.875 -1.18
Sugarcane price ($/t) 22 56 ?154.55
Production of coproducts and by-products
Sugar (t) 4,696,032 5,183,500 ?10.38
Raw sugar (t) 2,861,781 3,429,727 ?19.85
Refined Sugar (t) 1,822,892 1,708,422 -6.28
Muscovado Sugar (t) 11,359 45,351 ?299.25
Ethanol (L) 67,050,234 19,342,517 -71.15
Ethanol per ton of molases 262.762 231.255 -11.99
Molasses (858Brix Total) 1,630,087 1,664,417 ?2.11
Filter Mud (Filter Cake) (t) 1,844,114 2,001,655 ?8.54
Bagasse (t) 12,478,668 12,839,017 ?2.89
Bagasse for derivatives (t) 479,846 39,328 -91.80
Cogeneration (KWH) 682,786,359 7
45,307,133
?9.16
Steam generation (energy) (t) 27,552,833 24,146,457 -12.36
Steam (consumption per ton
of cane)
0.654 0.547 -16.36
Petroleum (consumption per
ton of cane)
14.830 2.320 -84.36
Petroleum consumed in sugar
mill (L)
710,221,953 116,999,807 -83.53
External electricity (KWH) 38,758,930 46,573,441 ?20.16
Table 6 continued
Indicator/zafra 1999/2000 2010/2011 Diference
Electricity consumption per
ton of cane
17.138 17.944 ?4.70
220 Sugar Tech (July-September 2012) 14(3):207–222
123
and factors responsible for such variations because of the
natural conditions exploring the precision farming and
satellite-based remote sensing and GIS in sugarcane pro-
duction on planning; implementation; and management to
refine farming system operations through the gathering of
data on variable field characteristics and sugarcane yield in
a multidisciplinary approach from the conceptual paradigm
of international competitiveness.
Conclusions
Mexico’s sugarcane yields are beginning a long-term
decline threatening Mexico’s position as a top producer of
cane sugar in an economy dominated by market forces, the
critical features, variability and vulnerability that charac-
terizes the Mexican sugarcane production needs to increase
the share of the contribution of industry in the GDP. Sugar
industry is one of the key industries which can contribute to
it and help in provide jobs for the growing unemployed
people as well as it can be an important step toward the
rural development transiting from manual to mechanical
harvesting. Farms range in size from \4 ha to hundreds or
even thousands of ha by agroecological zoning. This will
greatly curtail the high rates of migration from rural to
urban areas and USA and their associated problems.
Mexico’s land tenure system has a profound effect on its
sugarcane production sector. The industry has production
units that average about four hectares in size. This struc-
tural condition inhibits the investment of modern technol-
ogies and hinders improvements in efficiency and cost
savings through economies of scale.
Technology management process in sugarcane produc-
tion and sugar processing, as the most important ways to
reach a high quality level in Industry, and production cost
controlling is the key of technological processes adminis-
tration, in resolving many problems related to production
and productivity.
In view of the geographic position of the industry and the
climatic conditions, development of productive sugarcane
varieties is a key focus. A Sugarcane Research Institute and a
Sugarcane breeding and varietal improvement program with
new advances in Biotechnology are necessary to improve
sugar crops varieties reducing cost of sugar production,
improvement in biological nitrogen fixation, efficient and
specialized cane husbandry practices for growing in less
favorable soils under drought conditions, healthy seed-cane
production, green manuring, efficient planting and green
harvesting methods. The transfer of advanced agricultural
technologies to the farmer through extension programs and a
national bio-energy strategy that will increase leading to
better living conditions, but also to become a bigger pro-
ducer of ethanol and sugar is also required.
It is necessary for sugar industry and business estab-
lishments to mobilize more specific resources to explore
new approaches to use cane and sugar as raw material to
produce sugar based value-added products to improve
industry profitability in cleaner production. Diversification
of products (transition from sugarcane mill to sugarcane
biorefinery agro-industrial value) which utilizes the entire
crop for a variety of environmentally favorable outcomes
chemicals from bagasse and molasses, and intercropping
with high value plants for sugar mills and biorefineries;
diversity is the key factor in today’s highly integrated sugar
milling operations and the mills produce a range of other
products such as energy, food, animal feed, manures, bio-
fuels, ethyl alcohol and its derivatives.
Process of consolidation, diversification, transition,
expansion, economic challenges, greater competitiveness
and deregulation in Mexican sugar industry and the food
industry, based in sugar, require new forms of proactive co-
ordination between canegrowers, farmer representations
(CNC and CNPR), government, industry, stakeholders and
their clients through the interaction of various determinants
through combinations of competencies and resources with
the principle of ‘‘co-responsibility, most efficient, quality
conscious, good knowledge of international business,
highly mechanized, economies of scale and diversification
in the food-energy sector, degree of integration (vertical,
lateral, and horizontal). R&D innovation and specialized
human resources, to increase the efficiency and profitability
of the supply chain adopting agricultural practices that
minimize off-farm impacts and ensure the sustainable and
efficient use of soil and water resources; formulating pol-
icies and capabilities that will attract foreign direct
investments, while simultaneously attacking the exporta-
tion to USA, for a more fair competition in the world
market of sugar also needs immediate attention. Mexican
sugarcane industry will take a new turn towards increasing
the ability and desire to compete, self sustainable and be
more successful in coming years.
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Sustainable Land Management (SLM) is one of the transformative pillars for agricultural development and environment conservation for food, forage, fuel and fibre security. It aims at the tripartite benefits of high yields, environment protection and income security. The success of SLM is a function of adopting appropriate nutrients and water management practices. Several land management practices have been practiced by smallholder farming systems in great lakes region in Africa. However, there is still limited understanding of the level of acceptability of the various technologies in mitigating soil water shortage and nutrient depletion. This paper evaluates the SLM concept with focus on assessing sustainability in the use of various soil water and nutrient management technologies and practices. Nutrient management measures assessed included a range of common inputs and practices in tropical farming systems. Soil water conservation technologies assessed included the physical, biological and agronomic measures. Analysis conducted suggest that few land users can afford to adopt most of the technologies that define a full package for realization of the pillars of SLM. The integrated use of technologies is an appropriate approach to respond to alarming challenge of land degradation. The inclusion of social-cultural and economic factors in the use of these soil, water and nutrient technologies is fundamental for increasing the adoption rate in communities. Policies should target integrated technologies that are community and/or people centered in SLM if the goal of enhanced agricultural productivity, environment conservation and income is to be realized in the great lakes region of Africa.
... Approximately 0.5% of Mexico's Gross Domestic Product (GDP) corresponds to this activity, 400,000 families with permanent and temporary jobs depend on it, and indirectly 2.5 million Mexicans depend directly on the sugar agribusiness . However, the crop is no longer competitive, mainly due to the stagnation of the low sugarcane yield (between 60 and 70 ton/ha) and that of sucrose, the high fiber content in stems and the lack of advanced technology in all production processes (Aguilar-Rivera et al. 2012). These factors have negatively affected the sugar industry and farms, and have constantly eroded its sustainability and profitability, and it has also been seen as an unsustainable crop, due to the use of agrochemicals to control pests and diseases, which contaminate the soil and waters, and the burning of cultivated fields as a general practice (Aguilar-Rivera et al. 2019). ...
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Fire is a disturbance factor in the gallery forests and palm swamps of the Orinoco region of Colombia, due to the recurrent burnings of the surrounding savannas. Since fire is used as a cost-effective land-management tool, savannas are usually burned once a year in the dry season. This chapter evaluates how fire frequencies impact the regeneration of M. flexuosa, by comparing seedling and sapling density in palm swamps with different time since last burn in the department of Vichada, Orinoco region of Colombia. It attempts to give recommendations for fire management in the savannas of the region.
... Sugarcane is an important commercial crop and a source of renewable energy biofuels and biomaterials, which is critical to livelihood in rural communities [1,2]. Guangxi province is the primary sugarcane-and sugar-producing area in China as it plants around 1.04 million ha of sugarcane yearly [3]. ...
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Conventional tillage (CT) is the main agricultural practice for rainfed sugarcane production in China. However, subsoil compaction formed by long-term CT is harmful to soil properties and crop yield. Deep vertical rotary tillage (DVRT) is a novel tillage practice, which can alleviate subsoil compaction and create a more favorable soil environment for crop growth. This study aims to compare the effects of DVRT and CT practices on soil properties and sugarcane characteristics. The results showed that DVRT reduced soil bulk density and increased soil porosity to some extent in the 0–40 cm soil profile. Soil water storage of DVRT was relatively higher compared with CT due to the combined effects of soil water holding capacity and vegetation water consumption. There was significantly higher final aboveground biomass, underground biomass, and plant height from DVRT compared to CT (p < 0.05), but there were no differences in final root length between tillage practices. Compared with CT, DVRT with one and two growth-years significantly increased aboveground biomass by 68.90% and 50.14%, respectively. Generally, the soil properties and sugarcane characteristics were not significantly different between DVRT with different growth years. DVRT is recommended as a tillage practice for sustainable agriculture in rainfed regions.
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La investigación en la producción agropecuaria no es tan solo una necesidad, en nuestros días se busca que el conocimiento generado este enfocado en producir mayor cantidad de alimentos y que estos sean producidos en condiciones inocuas y sustentables para un constante crecimiento demográfico. Esta obra trata de difundir la investigación que se realiza principalmente en la cuenca del Papaloapan y otras regiones tropicales y no tropicales del país, en varias áreas del quehacer productivo primario. Las temáticas expuestas presentan varias vertientes en el trabajo de investigadores y técnicos que abordan temas desde técnicas sofisticas en laboratorio hasta estudios llevados en campo y agricultura protegida. Las cuales pueden tomarse como referencia para futuras investigaciones y algunos tópicos puedan ser empleados desde cualquier punto de vista por productores regionales, investigadores y estudiantes del área agropecuaria.
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Mexico is the sixth-largest producer of sucrose worldwide. Therefore, evaluating the environmental impacts of Mexican sugar and proposing impact mitigation strategies is of high importance since this would support better environmental performance and foster competition within the sector. However, the technological variability that occurs between farms and sugar mills, together with the different types of sugar that are produced, makes it difficult to identify a single agro-industrial production system for sugar production, that represents the entire sector. Environmental improvement strategies identified for one system are specific and have a low level of applicability to others. Therefore, the aim of this study is to develop a life cycle assessment study of nine representative sugar production systems in Mexico, considering 1 ton of sugar as a functional unit while also considering the types of sugar and technological level. The nine sugar life cycle systems analyzed were classified as follows: standard conventional (SC), standard semimechanized (SSM), standard mechanized (SM), refined conventional (RC), refined semimechanized (RSM), refined mechanized (RM), muscovado conventional (MC), muscovado semimechanized (MSM) and muscovado mechanized (MM). The results showed that conventional systems demonstrated a better environmental performance for all the impact categories analyzed, primarily because they have a lower energy requirement in cultivation and irrigation, require less fertilizers and applied pesticides, and in the industrial stage, require less chemicals for clarification. Regarding the types of sugar, Muscovado presented the lowest environmental impacts in all the categories analyzed, since it only requires one crystallization and centrifugation process, followed by drying, which is associated with lower requirements for electricity, heat, and steams. The results would suggest that the strategic avenues for further improving the environmental profile of sugarcane production and processing could include a) continued pursuit of high yields, which is an important determinant of the environmental impacts of agricultural products, b) precision application of fertilizers to reduce the potential for losses to the environment and c) maximizing the utilization of coproducts to increase environmental credits.
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Changes in atmospheric CO2, ocean temperature, and regional vegetation conditions in Mesoamerica indicate that significant trends in temperature and rainfall may have occurred in the Sierra Madre de Chiapas, Mexico. This is an important region for flora and fauna which could be affected by climate trends. We aimed to determine if and where (27-year) climate trends had occurred in the Sierra Madre and lower elevation regions between 1990-2016, if these trends were part of longer term 1960-2016 (57-year) changes, and how changes in large-scale and regional/local conditions may be influencing these trends. In the Sierra Madre, overall minimum daily temperatures increased, maximum temperatures decreased, and most significant mean temperature trends were cooler during the 27-year period. Both the start and end of the wet season trended earlier in the year, and wet season rainfall increased significantly. Trends were not significant during the 57-year period in the Sierra Madre; however, in the adjacent Pacific coast region, significant warmer temperature trends continued during this period. Within regions, there was large variation in temperature and rainfall changes and some local trends were opposite to the regional averages. Large-scale processes of warming sea surface temperatures in the east coast of Mexico, a change from the positive to negative phase of the Pacific Decadal Oscillation, and increases in atmospheric CO2 may be influencing these trends. At the regional scale, increases in dense vegetation and evapotranspiration since 1990 may have created characteristics favoring a positive feedback of higher ocean-based moisture and vegetation-based precipitation cycling.
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The Mexican sugar industry has a long history. It is an industry which combines the agricultural activities of growing, harvesting and transporting sugarcane with the industrial factory production of raw and refined sugar and many specialty and downstream products. To compete in a global economy, it is important to establish performance criteria/benchmarks for the purpose of achieving lowestcost sugar production in terms of technical competitiveness, productivity and efficiency according to three aspects (sucrose yields, sugarcane per hectare and factory). This article discusses some economic and technical competitiveness indicators for the performance assessment of the Mexican sugarcane industry, using various tools (benchmarking and Porter's diamond methodologies) for analyzing performance parameters. The results suggest that there are numerous technical and economic factors that limit growth, since the Mexican industry has remained highly non-competitive and needs to improve and innovate in reducing costs, particularly regarding sugarcane farming business performance (raw material, harvest and transport costs), and the development of planning strategies to improve profitability. The other major area identified is sugar process diversification based on by-products (waste, chaff, molasses, filter mud and stillage). This is highly relevant to the sugar industry as a source of renewable energy and raw materials.
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The purpose of this work was to estimate GHG emissions and energy balances for the future expansion of sugarcane ethanol fuel production in Mexico with one current and four possible future modalities. We used the life cycle methodology that is recommended by the European Renewable Energy Directive (RED), which distinguished the following five system phases: direct Land Use Change (LUC); crop production; biomass transport to industry; industrial processing; and ethanol transport to admixture plants. Key variables affecting total GHG emissions and fossil energy used in ethanol production were LUC emissions, crop fertilization rates, the proportion of sugarcane areas that are burned to facilitate harvest, fossil fuels used in the industrial phase, and the method for allocation of emissions to co-products. The lower emissions and higher energy ratios that were observed in the present Brazilian case were mainly due to the lesser amount of fertilizers applied, also were due to the shorter distance of sugarcane transport, and to the smaller proportion of sugarcane areas that were burned to facilitate manual harvest. The resulting modality with the lowest emissions of equivalent carbon dioxide (CO2e) was ethanol produced from direct juice and generating surplus electricity with 36.8 kgCO2e/GJethanol. This was achieved using bagasse as the only fuel source to satisfy industrial phase needs for electricity and steam. Mexican emissions were higher than those calculated for Brazil (27.5 kgCO2e/GJethanol) among all modalities. The Mexican modality with the highest ratio of renewable/fossil energy was also ethanol from sugarcane juice generating surplus electricity with 4.8 GJethanol/GJfossil.
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The Mexican sugar industry operates under strict government controls. The sugar parastatal, AZUCAR, and other state agencies govern virturally all aspects of pricing and, until recently, AZUCAR controlled virtually all aspects of marketing. The purpose of this study is to make transparent the main economic effects of existing sugar policies. Three broad measures are used to estimate the resource misallocation effects of intervention: the nominal rate of protection, the effective rate of assistance and the net subsidy equivalent. Theoretical arguments are also used to demonstrate other potential inefficiencies in resource use. To estimate the effects of efficiency-improving policies, an economic model of Mexican production, demand, stock demand and cane-pricing arrangements is constructed. This model is linked to a model of the world sugar market to evaluate the trade and other economic opportunities which should arise from policy reforms.
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This report evaluates the U.S. and world sugar markets for 1998-2008 by using the World Sugar Policy Simulation Model. This analysis is based on assumptions about general economic conditions, agricultural policies, population growth, weather conditions, and technological changes. Both the U.S. and world sugar economies are predicted to be strong for the next ten years. World demand for sugar is expected to grow faster than world supply, gradually increasing sugar prices. World trade volumes of sugar are expected to expand.
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This report evaluates the U.S. and world sugar markets for 1999-2009 by using the Global Sugar Policy Simulation Model. This analysis is based on assumptions about general economic conditions, agricultural policies, population growth, weather conditions, and technological changes. Both the U.S. and world sugar economies are predicted to be strong for the next ten years after the current over supply is reduced. World demand for sugar is expected to grow faster than world supply, resulting in gradually increasing Caribbean sugar prices from 6.55 cents/lb in 1999 to 12.3 cents/lb in 2009. The U.S. wholesale price of sugar is projected to increase from 20.69 cents/lb in 2000 to 28.84 cents/lb in 2009 if the United States maintains its sugar programs. World trade volumes of sugar are expected to expand slightly.
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The development of the sugar industry in postrevolutionary Mexico is analyzed within the broader social context of the political dilemmas faced by governments in peripheral capitalist societies. For the Mexican government, the problem has been its inability to simultaneously promote accumulation of capital by the sugar refineries, meet cane growers' demands for higher crop prices, offer sweeteners to domestic consumers at politically acceptable prices, and subsidize costs of raw materials in secondary industries. The sugar industry of postrevolutionary Mexico has been subject to cyclical shifts in government policies that initially promoted capitalization but soon balanced this drive with redistributive policies within a contradictory set of social class relations and political forces. Capital flight and declining productivity contributed to the industry's eventual collapse in the 1970s. During this period, state takeovers and control reached their peak but also forced the government to carry the full economic burden of its decisions. -from Author
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Este trabajo examina la ruptura del pacto político posrevolucionario, sus implicaciones para el nuevo papel asignado a los gremios cañeros y los obstáculos que enfrenta esta transformación. Las confrontaciones y alianzas políticas representan factores clave para determinar la dirección final de la transformación estructural, con datos que sugieren que el nuevo régimen utiliza con facilidad algunas de las viejas prácticas políticas para institucionalizar el nuevo paradigma económico. /// This article examines the dissolution of the post-revolutionary political pact, its implications for the new role assigned to the sugar-cane plantation workers' u nions and the obstacles facing this transformation. Political confrontations and alliances constitute key factors in determining the final direction of the structural transformation, with data that suggest that the new regime is adept at using old political practices to institutionalize the new economic paradigm.
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In recent years, economic crisis in the sugar industry and the closure of an important sugar mill in Michoacán, Mexico, have fostered the entry of transnational agribusinesses that contract with local growers for blackberry production. Land concentration is under way as wealthy growers rent ejido (agrarian-reform) land to grow berries and small-scale growers shift to less capitalized berry production or migrate out of the region. An analysis of the impact of this transition, part of the globalization of the agro-food system, on campesinos, workers, and their communities reveals that a general improvement in the economy has been accompanied by increased inequality, concentration of land ownership, and out-migration, a division of labor by gender that is detrimental to women, and damage to human health and the environment due to increased use of pesticides.
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This paper includes the methodology used to construct a financial cash flow and perform a valuation using the discounted cash flow analysis for a hypothetical Mexican sugar mill. The objective is to incorporate to the valuation model the most significant variables that are relevant to the sugar production process as well as the operational and financial factors of a common sugar mill which are driven by the current legislation in terms of sugarcane pricing and labor costs. It also includes some macroeconomic variables that determine price for sugar, long term costs and the discount rates. With the financial model determined, we use Monte Carlo simulation in order to obtain a probabilistic distribution for the value of the sugar mill and finally we perform a sensitivity analysis to obtain the main variables that affect the resulting enterprise value. The model is constructed on data available for three sugar mills, but the cost structure will not change among other sugar mills, due to regulation and local market conditions; however, the model could be used for any mill by substituting the variables for each case.
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Under the new agrarian policies and economic rules of Article 27, implemented in January 1992, the customary patters of political patronage and loyalty in the countryside no longer operate as before. Campesions now are challenged to think and act like entrepreneurs who assume investment risks in order to successfully participate in competitive markets. But most possess neither the economic resources nor worldviews to be the “campesino entrepreneurs†sought by the government or by the leaders of the Confederación Nacional Campesina (CNC) and the Confederación Nacional de Productores Rurales (CNPR), the two campesino confederations affiliated to the ruling PRI. This contradiction between campesino worldviews and neoliberal economic reforms defines the unprecedented challenge to the traditional legitimacy held by both organizations. Sugarcane growers represent a distinct social group, and the essays in this volume will examine the particular implications of the current transformation for the social and political options of Mexico’s sugarcane growers.