Page 111 - STRATEGY Magazine (G)

Refining
the
SUGAR
Industry
Guatemala’s sugar industry has consistently increased produc- tion over the last 25 years. The industry’s growth and efficiency is tied to advanced agricultural practices that include smart irri- gation, genetically strong crops, and integrated pest management.
Sugar is currently the highest source
of foreign exchange for Guatemala’s agricultural industry, outranking the production of bananas and coffee. Sugar planting and refining are expanding in Guatemala, and industry leaders are implementing agricultural practices to increase efficiency of crop yields. Sugar- cane planting areas are expanding at an annual rate of 3 percent, representing 10 percent of the country’s total agri- cultural area. Since 1990, Guatemala’s sugar industry has continued to grow in both the amount produced per hectare and in the amount exported. Today, the main importers of Guatemalan sugar are the United States and South Korea, with each country importing 13 percent of
the nation’s sugar. Other top purchasers include Syria, Chile, and Tunisia.
Among Latin American and Caribbean nations, Guatemala is the third-largest in sugar exports and fifth-largest in sugar exported worldwide. The nation’s refined and raw sugar serves companies in various industries including leading soft drink manufacturers, bakeries, juice makers, dairy product producers, and pharmaceutical entities.
PRODUCTION AND PRODUCTIVITY
Domestic sugar consumption hovers around 27 percent, which leaves 73 percent of the country’s sugar available for export. Since 1990, Guatemala has achieved a 5 to 6 percent annual increase in productivity. Guatemala yielded 6.6 metric tons of sugar per hectare in 1990 compared to 10.8 metric tons per hectare
SUGARCANE FIELD
in 2014. This number is projected to increase to 12.0 metric tons per hectare by 2020 if the industry can continue to streamline its agricultural practices.
Boosting production boils down to four factors, which have been implemented by many sugar mills after extensive research and development (R&D). The first factor entails planting crops with
improved genetics—especially those that have been adapted to survive locally. Moving from an imported crop base to cultivating locally developed sugarcane has certainly increased the vitality of crops. A second factor to consider in pro- ducing high crop yields is pest control, specifically, integrated pest management (IPM). Since diseases and pests become
SPECIAL REPORT
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