sugar & hfs production costs - constant...
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Sugar & HFS Production CostsGlobal Benchmarking
2017 BROCHURE
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The service in brief
LMC’s Production Costs service provides unique estimates of the costs of producing sugar and HFS around the world.
All estimates have been developed using the same methodology, so that countries’ costs can be directly compared with each other. We provide costs for:
Crops sugarcane and sugarbeet
Products raw cane sugar, white beet sugar, HFS 42 & 55 from maize/corn or wheat
Industries 61 for cane, 35 for beet, 18 for HFS 42 & 55 For 10 major sugar industries, costs also estimated for each growing area (industries and growing areas are listed on pages 6 and 7)
Years 1979/80 through to forecasts for the current crop year (2016/17) 2017/18 forecasts added during the course of the year
Since 1980, sweetener producers and users, banks and investors, government agencies and international organisations have subscribed. (See our Client List at the end of the brochure.)
What you get – in detail
Production costs are divided between field and factory operations, which in turn are divided into their principal components:
– labour – capital – fuel/chemicals (including different process fuels) – administration – cash vs. non-cash costs
Cost estimates are updated every three months, so subscribers benefit from new crop results as they become available.
LMC’s cost database – selecting components of costs (example: cane sugar in Argentina)
Sugar & HFS Production Costs LMC’s global benchmarking service
Benchmarking costs is essential for
evaluating investments & market
opportunities.
This is easy to do with LMC’s cost database.
(Random numbers are displayed.)
LMC PRODUCTION COSTS SERVICE – IN BRIEF
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Field costs take account of the various types of technologies and equipment that each industry uses to cultivate sugar crops. For 8 cane and 7 beet industries (page 6), costs are divided by field activity – land preparation, cultivation, and harvesting/loading/haulage.
Factory costs for leading sugar industries are estimated on the basis of the beet/cane price paid to farmers, as well as the break-even cost of producing the crop, and are shown both including and excluding a return on capital. For 5 industries (most notably Brazil), costs take account of production of ethanol from cane in integrated factories.
The database also presents credits from the sale of by-products – molasses and beet pulp from sugar production and maize/corn or wheat by-products from HFS production.
Free-on-board (fobbing) costs are analysed for 11 cane industries (page 6) for the current crop year, 2016/17, so that these industries’ costs can be contrasted directly with world market quotations for raw and white sugar.
Sensitivity analysis of the impact on cost competitiveness of key production and economic variables – yields, factory recovery rates, wage rates, real interest rates, and, as relevant, currency fluctuations.
LMC cane sugar production costs vs. exchange rates – Centre/South Brazil
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2000/01 2004/05 2008/09 2012/13 2016/17
Inflation-adjusted exchange rateProd
uctio
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st (U
S ce
nts/
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Fobbin g costsEx-factory costsExchange rate (inflation-adjusted)
LMC beet sugar production costs (adjusted for inflation) – USA
1979/80 1985/86 1991/92 1997/98 2003/04 2009/10 2015/16
Cost
s in
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5 U
S$/t
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Real n ation al production costWorld average for beet sugar
LMC HFS 55 production costs (adjusted for inflation) – South Korea
1979/80 1985/86 1991/92 1997/98 2003/04 2009/10 2015/16
Cost
s in
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5 U
S$/t
onne
, ex-
fact
ory
Real n ation al production costWorld average for H FS 55
SCREEN SHOTS OF LMC PRODUCTION COSTS IN EXCEL
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LMC’s Cost Database
The whole range of cost analysis is available online in Excel files in pivot table format so that users can easily search for and display the results of greatest interest. The screen shots below indicate the scope of data provided and how easy it is to use. They are for illustration only and display random data, not actual results.
Selecting a country – for cane sugar costs (all cost components), in nominal terms
Selecting years – for beet sugar costs (all components), in nominal terms, in Belgium
Screen shots: LMC’s production cost information and the ways it can be viewed and organised
SCREEN SHOTS OF LMC PRODUCTION COSTS IN EXCEL
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Selecting countries – for HFS 55 costs (all cost components), in nominal terms
Analysis of cane field costs, by activity, for the leading countries
The screen shots are for illustration only and display random data, not actual results.
SCREEN SHOTS OF LMC PRODUCTION COSTS IN EXCEL
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Selecting producing area within a country – Thailand (cane)
The screen shots are for illustration only and display random data, not actual results.
SCREEN SHOTS OF LMC PRODUCTION COSTS IN EXCEL
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Sugar – cane and beet
LMC provides cost estimates for 61 cane (C) and 35 beet (B) countries, including several countries that produce both, and separates field costs by activity for 8 cane and 7 beet industries. Fobbing costs are analysed for 11 cane industries, indicated below by “”.
Global region Countries covered within each global region
Africa Burundi (C) Cameroon (C) Congo (C) Congo DR (C) Côte d’Ivoire (C) Egypt (B & C) Ethiopia (C) Kenya (C)
Madagascar (C) Malawi (C) Mauritius (C) Morocco (B & C) Mozambique (C) Réunion (C) Senegal (C)
South Africa (C) (a) Sudan (C) Swaziland (C) Tanzania (C) Uganda (C) Zambia (C) Zimbabwe (C)
Asia Bangladesh (C) China (B & C) (a) India (C) (a) Indonesia (C) Iran (B & C)
Japan (B & C) Pakistan (C) Philippines (C) Sri Lanka (C)
Syria (B) Taiwan (C) Thailand (C) (a) Vietnam (C)
Oceania Australia (C) (a) Fiji (C) Papua New Guinea (C)
Central & Eastern Europe *
Belarus (B) Croatia (B) Czech Republic (B) Hungary (B) Lithuania (B)
Moldova (B) Poland (B) Romania (B) Russia (B) (a)
Serbia (B) Slovakia (B) Turkey (B) Ukraine (B)
Western Europe * Austria (B) Belgium (B) (a) Denmark (B) Finland (B) France (B) (a)
Germany (B) (a) Greece (B) Italy (B) Netherlands (B) (a)
Spain (B) Sweden (B) Switzerland (B) UK (B) (a)
North America Canada (B) Mexico (C) (a) USA (B & C) (a)
Central America Belize (C) Costa Rica (C) El Salvador (C)
Guatemala (C) Honduras (C)
Nicaragua (C) Panama (C)
Caribbean Barbados (C) Cuba (C)
Dominican Republic (C) Guadeloupe (C)
Jamaica (C)
South America Argentina (C) Bolivia (C) Brazil Centre/South (C) (a) Brazil North/Northeast (C)
Chile (B) Colombia (C) Ecuador (C) Guyana (C)
Paraguay (C) Peru (C) Venezuela (C)
(B): Beet sugar production costs provided. *: Beet costs also provided for the EU-28 as a whole. (C): Cane sugar production costs provided. (a): Field costs divided by activity (8 cane and 7 beet industries). Fobbing costs provided (11 cane industries). Note: Historical costs are provided for industries that have ceased production (beet: Bulgaria, Ireland, Latvia, Portugal, Tunisia, Uruguay; cane: Puerto Rico, St Kitts, Trinidad).
Geographies: The global regions, countries & areas within countries for LMC’s sugar & HFS costs
GEOGRAPHICAL COVERAGE
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Areas within countries producing beet or cane sugar
For beet and cane industries with large, geographically diverse growing areas, separate cost estimates are provided for each distinct producing area within the country:
Australia (C) Herbert River/Burdekin, Central Queensland, North Queensland, South Queensland
Brazil (C) Centre/South: Goiás, Mato Grosso, Mato Grosso do Sul, Minas Gerais, Paraná, São Paulo North/Northeast
China (B & C) Beet: Heilongjiang, Xinjiang Cane: Guangxi, Yunnan
India (C) Maharashtra, Tamil Nadu, Uttar Pradesh
Indonesia (C) Private and State-owned
Mexico (C) Central, Gulf, Northeast, Northwest, Pacific, South
Russia (B) Central, South, Volga/Siberia
South Africa (C) Midlands, North Coast, Northern Irrigated, South Coast, Zululand
Thailand (C) Central Plains, North, Northeast
USA (B & C) Beet: Central Great Plains, Great Lakes, North Great Plains, Northwest, Red River Valley, Southwest Cane: Florida, Hawaii, Louisiana, Texas
HFS 42 and 55
The service also provides estimates of the costs of producing HFS 42 and HFS 55 in 18 countries, taking into account the price of the raw material. Most production is from maize (corn), but for several countries, wheat is the principal raw material.
Global region Countries covered within each global region
Africa Egypt
Asia China Japan
South Korea Taiwan
Central & Eastern Europe
Bulgaria Hungary
Poland (wheat) Slovakia
Turkey
Western Europe Belgium (wheat) Germany (wheat)
Italy Spain
North America Canada Mexico USA
South America Argentina
Note: Historical costs are provided for industries that have ceased production (Finland, France, Greece, the Netherlands, the UK).
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Sugar & HFS Production Costs: Global Benchmarking – what you get & when
Subscribers receive the service in two types of deliverable with different frequencies.
1. Report – PDF and paper copy – annual
We publish an annual report in the first quarter of each year – the 2017 Report in Q1 2017 – which comprises:
Main results for the recent and current period Profiles of key sugar and HFS producing industries Explanation of LMC’s methodology
2. LMC Cost Database –Excel pivot tables online – quarterly
Costs are presented in Excel pivot table format. They are updated each quarter and made available to subscribers online.
Annual costs are provided for 1979/80 through to forecasts for the current crop year, 2016/17.
The first cost estimates for the next crop year, 2017/18, will be provided for:
Major southern hemisphere industries: Argentina, Australia, Brazil, Colombia and South Africa – in the Q2 update
All other industries – in the Q4 update
Subscriptions start with the most recent quarterly set of results.
Fees
1-year subscription – 2017 Annual Report and 4 quarterly sets of results (Excel)– US$31,500
3-year subscription – 3 consecutive Annual Reports, 2017-2019, and 12 quarterly sets of results (Excel)– special discounted fee of US$21,500 per year, payable in annual instalments
Fees are payable in US dollars ($), sterling (£), euro (€), or Singapore dollars (SGD) at the prevailing exchange rate at the time of payment.
Confidentiality
LMC offers the service, Sugar & HFS Production Costs: Global Benchmarking, for subscription under the following conditions: that the content of any electronic file (Excel, PDF, Word, etc.), report or related materials provided shall remain confidential within the subscribing organisation, and shall not be disclosed, in whole or in part, in any manner, to any third party, without the prior written consent of LMC International Ltd.
Deliverables, Timing & Fees
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LMC International
LMC is an independent economic and business consultancy that has provided research, reports and analysis to the sugar and sweeteners industry since 1980. Over the last 35 years, LMC has attracted clients from almost all of the companies, institutions and organisations of significance in the worldwide industry. (Please see the end of this brochure for a representative list of LMC’s clients in the sector.)
We bring a global perspective to our work in the sector. As well as covering the biggest sugar industries – Brazil, India, China, EU, Russia, USA, Guatemala, Australia and Thailand – we monitor smaller markets, including Vietnam, Mauritius, Myanmar and many others.
LMC’s estimates of sugar and HFS production costs form the foundation for much of LMC’s analysis of the sector. Other LMC studies and services on the sugar and sweetener sector available for purchase are outlined below. In addition, LMC carries out many confidential consultancy assignments tailored to the specific needs of individual clients.
Please contact us, or see www.lmc.co.uk for details.
LMC International is headquartered in Oxford and has offices in New York, Kuala Lumpur and Singapore, as well as a close collaboration with Canaplan in São Paulo.
Sugar Production Costs – Forecasts: How technical performance and macroeconomics drive costs
This new service focuses on 5 key benchmark sugar industries – Australia, Brazil, Thailand, India and France. It analyses the connection between technical performance, input prices, exchange rates and production costs and presents production cost forecasts to 2025 for each of the 5 industries. The central feature of the service is a unique interactive forecasting model designed to allow you to change assumptions (up to 8 variables) and generate new results to answer: what is the outlook for longer-term cost competitiveness?
About LMC International
LMC International
ABOUT LMC
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Technical Performance in Sugar Production
This study focuses on technical performance in sugar production in both field and factory to complement our analysis of costs.
LMC’s report provides data to benchmark technical performance in sugar production in 13 cane and 5 beet countries, examining all stages in the field, to the factory and then to the factory door. We develop benchmarks in field and factory performance such as yields, sucrose content and sucrose recovery. These results identify industries’ strengths and weaknesses.
Global Sugar: Strategic View (annual)
LMC annual report examines the short, medium and long-term outlook for the global sugar sector, providing strategic analysis of supply, demand and prices.
The Report evaluates the outlook for the sugar sector. It addresses critical questions: what level of world sugar prices is needed to stimulate new investment, and what is the future for prices? It analyses the market/price drivers, including demand growth and supply deficits, how key markets such as Brazil, Asia, and Africa, will evolve, the EU’s potential as a major sugar exporter following policy reform in 2017/18, and the impact of alternative crop prices on farmers’ planting decisions.
Benchmarking Costs of Starches, Syrups & Ethanol (annual)
LMC’s global database benchmarks costs for 11 starch-derived products, in 18 countries, from 5 raw materials and several processing methods and plant scales, with forecasts to 2030.
Products: starches (native & modified), syrups & ethanol Raw materials: corn, wheat, sugar, molasses, cassava (tapioca)
World benchmark prices and regional carbohydrate values Price forecasts for each raw material Processing costs for each raw material, with forecasts Ex-factory costs for each end product, with forecasts
World Sugar Price View (monthly)
LMC’s service provides sugar price forecasts updated each month, with key points of analysis of the global sugar market, distilled into clear PowerPoint slides for rapid processing.
World Sugar Price View provides:
Price forecasts – world price (raws and whites) – by quarter for the next 3 years
Key market developments over the last month Market outlook & points to watch
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LMC has an exceptionally wide client base around the world. Among those for whom LMC has undertaken research projects or who have subscribed to LMC’s reports and services are:
AB Sugar plc ................................................................................................................................................................... UK Açúcar Guarani SA ................................................................................................................................................... Brazil Al Khaleej Sugar Co .................................................................................................................. United Arab Emirates Archer Daniels Midland Co ..................................................................................................................................... USA Asociación de Azucareros de Guatemala ............................................................................................. Guatemala Asociación de Cultivadores de Caña de Azúcar de Colombia ......................................................... Colombia Barry Callebaut ............................................................................................................................................ Switzerland Bayer CropScience AG ....................................................................................................................................Germany Beta San Miguel, SA de CV ................................................................................................................................ Mexico Bright Food Group ................................................................................................................................................. China Bunge Ltd ..................................................................................................................................................................... USA Cámara Nacional de las Industrias Azucarera y Alcoholera................................................................... Mexico Cargill, Inc. .................................................................................................................................................................... USA The Coca-Cola Co....................................................................................................................................................... USA Comité Européen des Fabricants de Sucre ............................................................................................... Belgium Copersucar ................................................................................................................................................................. Brazil Dow AgroSciences LLC ............................................................................................................................................ USA DuPont .......................................................................................................................................................................... USA European Commission ..................................................................................................................................... Belgium Evonik Degussa GmbH ...................................................................................................................................Germany Ferrero SpA .................................................................................................................................................................. Italy Indofood Agri Resources Ltd ..................................................................................................................... Singapore Ingredion Inc .............................................................................................................................................................. USA International Finance Corp. .................................................................................................................................... USA Itochu Corp ............................................................................................................................................................... Japan Ledesma SAAI .................................................................................................................................................. Argentina Malayan Sugar Manufacturing – MSM ....................................................................................................... Malaysia Mitr Phol Sugar Corp Ltd .................................................................................................................................Thailand Mitsubishi Corp ....................................................................................................................................................... Japan Mitsui & Co Ltd ........................................................................................................................................................ Japan Monsanto Co ............................................................................................................................................................... USA Nordzucker AG ..................................................................................................................................................Germany Olam International Ltd ................................................................................................................................. Singapore Pepsi-Cola Co .............................................................................................................................................................. USA Pfeifer & Langen ................................................................................................................................................Germany The Procter & Gamble Co ........................................................................................................................................ USA Prodimex-Holding LLC ......................................................................................................................................... Russia Rabobank International ........................................................................................................................... Netherlands Raizen .......................................................................................................................................................................... Brazil The Savola Co .............................................................................................................................................. Saudi Arabia Shree Renuka Sugars Ltd ....................................................................................................................................... India Sucrogen Australia Pty Ltd ............................................................................................................................ Australia Südzucker AG .....................................................................................................................................................Germany Suiker Unie ................................................................................................................................................... Netherlands Tate & Lyle plc ................................................................................................................................................................ UK Tereos ....................................................................................................................................................................... France Thai Cane & Sugar Corp Ltd ...........................................................................................................................Thailand The Tongaat-Hulett Group Ltd .............................................................................................................. South Africa Tsb Sugar Ltd .............................................................................................................................................. South Africa Unilever NV .................................................................................................................................................. Netherlands United States Sugar Corp ........................................................................................................................................ USA US Department of Agriculture .............................................................................................................................. USA Wilmar International Ltd ............................................................................................................................. Singapore
…among many others
Text LMC Client List
LMC International
Oxford4th Floor, Clarendon House52 Cornmarket StreetOxford OX1 3HJUKT +44 1865 791737F +44 1865 [email protected] New York1841 BroadwayNew York, NY 10023USAT +1 (212) 586-2427F +1 (212) [email protected] Singapore16 Collyer Quay #21-00Singapore 049318T +65 6818 [email protected] Kuala LumpurB-03-19, Empire SohoEmpire SubangJalan SS16/1, SS1647500 Subang JayaSelangor Darul EhsanMalaysiaT +603 5611 [email protected]