Thailand's sugar
industry invests
Low supply and high prices likely in near future (Part I)
By Jon Fernquest
Sugar
prices will likely be increasing worldwide this year.This week in the Bangkok Post two articles looked at Thailand's investment in sugar both domestically and in Laos and Cambodia in anticipation of this future trend (Read articles #1 and #2).
The articles are being broken into smaller pieces to make reading easier.
Today's installment begins after the vocabulary.
domestically - within
the country
anticipate - expect some event to happen
do Y in anticipation of X - do Y because you expect X to happen
installment - one piece of something bigger that includes many pieces (example: an installment of an article, an installment payment)
anticipate - expect some event to happen
do Y in anticipation of X - do Y because you expect X to happen
installment - one piece of something bigger that includes many pieces (example: an installment of an article, an installment payment)
Economics
ASIA FOCUS
Sweet success ahead
8/02/2010Kamamol Pongthanee
Lower costs under Afta open up new potential for Thai sugar producers at a time when world prices are at 28-year highs and rivals including Brazil and Australia face poor harvests.
Thai sugar producers see more opportunities to expand in overseas markets thanks to tariff reductions under the Asean Free Trade Agreement (Afta) and a global shortage that has pushed sugar prices to record highs.
AFTA (ASEAN Free Trade Area)
- a
trade agreement by the countries in ASEAN to reduce and end tariffs
within ASEAN (SeeWikipedia)
Free Trade Agreement (FTA) - an agreement between a group of countries to eliminate many tariffs, quotas and preferences on goods passing between them (See Wikipedia)
open up - create
potential - possible ความเป็นไปได้
rivals - opponents; people you are fighting or competing against คู่อริ
harvests - การเก็บเกี่ยว
expand - to become larger ขายตัวออกไป
global - throughout the world ทั่วโลก
shortage - when there is not enough of something การขาดแคลน
record - the most ever achieved สถิติ
Free Trade Agreement (FTA) - an agreement between a group of countries to eliminate many tariffs, quotas and preferences on goods passing between them (See Wikipedia)
open up - create
potential - possible ความเป็นไปได้
rivals - opponents; people you are fighting or competing against คู่อริ
harvests - การเก็บเกี่ยว
expand - to become larger ขายตัวออกไป
global - throughout the world ทั่วโลก
shortage - when there is not enough of something การขาดแคลน
record - the most ever achieved สถิติ
According to the latest research by the United States Department of Agriculture (USDA), world sugar production for the 2009-10 crop year is estimated at 153.3 million tonnes, against consumption of 153.7 million tonnes.
The change in world production and trade patterns is highlighted by lower production in Brazil, which accounts for 23% of global output. Production in Asia, which accounts for 35% of global output, mainly in India and China, is also slipping.
research - การวิจัย
consumption - using, eating or drinking something การบริโภค
trade - the buying and selling of goods การค้าขาย
trade patterns - the general way that goods are bought and sold (built in one place and sold in another place, what times of year they are bought and sold) รูปแบบการค้า
highlighted - stressed; made something more noticeable ที่เน้นย้ำ
X accounts for Y% of Z - X is Y% of Z
output - the amount of something produced ปริมาณ(กระแสไฟฟ้า)ที่ผลิตขึ้น
production slipping - production decreasing
consumption - using, eating or drinking something การบริโภค
trade - the buying and selling of goods การค้าขาย
trade patterns - the general way that goods are bought and sold (built in one place and sold in another place, what times of year they are bought and sold) รูปแบบการค้า
highlighted - stressed; made something more noticeable ที่เน้นย้ำ
X accounts for Y% of Z - X is Y% of Z
output - the amount of something produced ปริมาณ(กระแสไฟฟ้า)ที่ผลิตขึ้น
production slipping - production decreasing
However, the USDA forecast that output in Thailand, one of the world's top producers, should rise by 200,000 tonnes to 7.7 million tonnes.
Prasert Tapaneeyangkul, secretary-general of the Office of the Cane and Sugar Board (OCSB), says the next two years will be golden years for sugar producers because Brazil and India have faced weather problems that will curb production and could lead to shortages in their domestic markets.
forecast
- a statement about what will happen in the future based on information
available now พยากรณ์
will - a determination to do something, despite any difficulties or opposition ความตั้งใจ
will - a legal document that explains what you want to be done with your money and property after you die พินัยกรรม
curb - to control or limit something that is harmful จำกัดขอบเขต, ระงับ, ควบคุม
domestic - relating to a person's own country ภายในประเทศ
will - a determination to do something, despite any difficulties or opposition ความตั้งใจ
will - a legal document that explains what you want to be done with your money and property after you die พินัยกรรม
curb - to control or limit something that is harmful จำกัดขอบเขต, ระงับ, ควบคุม
domestic - relating to a person's own country ภายในประเทศ
However, the UN Food and Agriculture Organisation (FAO) has indicated that Brazilian and Indian production should be sufficient to cover demand by the end of the marketing year.
India is now forecast to be the world's largest net sugar importer in 2009-10 with 6 million tonnes. Exports from Brazil for 2009-10 are forecast at 23.9 million tonnes while Thailand is expected to export 5.8 million tonnes.
Kasikorn Research Center says crop prices should continue to increase this year, especially for sugar, cassava, rubber and rice, because of the impact on global crops of weather conditions including El Nino, and insect infestations, while demand would continue to rise.
sufficient
- enough เพียงพอ
cover demand - to meet demand (enough to meet normal needs for the product, so the price does not rise greatly)
net sugar importer - imports more sugar into the country than exports out of the country
impact - an effect or influence ผลกระทบ
El Nino - a worldwide weather pattern that occus on average every five years that causes floods, droughts and other weather disturbances (See Wikipedia)
insect infestations - when large numbers of insects come and cause damage to crops
cover demand - to meet demand (enough to meet normal needs for the product, so the price does not rise greatly)
net sugar importer - imports more sugar into the country than exports out of the country
impact - an effect or influence ผลกระทบ
El Nino - a worldwide weather pattern that occus on average every five years that causes floods, droughts and other weather disturbances (See Wikipedia)
insect infestations - when large numbers of insects come and cause damage to crops
The big advantage for the Thai sugar industry, though, will be zero tariffs under Afta, which should allow producers to export more widely at lower cost, since their logistics costs will be cheaper than those of main rivals Australia and Brazil.
During the first 10 months of 2009, Thailand exported 1.59 million tonnes of sugar at a value of US$565.2 million to Asean, or around 36.5% of its total sugar exports. Indonesia is the country's main market in Asean followed by Cambodia, Vietnam and Singapore.
advantage
- a condition giving a greater chance of success ความได้เปรียบ
logistics - the practical arrangements that are necessary in order to organise something successfully, especially something involving a lot of people or equipment
logistics - the practical arrangements that are necessary in order to organise something successfully, especially something involving a lot of people or equipment
However, Thai agricultural product exporters should beware of new players, especially Burma, Cambodia and Laos. Production in these less-developed countries is rising with the development of irrigation systems and production technology by foreign investors, attracted by generous incentives for cultivation to product processing.
Among those investors are Thai companies looking to tap potential next door and control their costs.
beware
- to be very careful about something or someone ระวัง, ระมัดระวัง
less-developed countries
irrigation - the process of bringing water to land through a system of pipes, ditches, etc. in order to make crops grow ระบบชลประทาน
generous - giving a lot more than other people do
incentives - rewards for the right behaviour
cultivation - when farmers grow plants for future sale
product processing - making materials or crops ready for sale in a store (cleaning, cutting, grinding, packaging)
tap - use
less-developed countries
irrigation - the process of bringing water to land through a system of pipes, ditches, etc. in order to make crops grow ระบบชลประทาน
generous - giving a lot more than other people do
incentives - rewards for the right behaviour
cultivation - when farmers grow plants for future sale
product processing - making materials or crops ready for sale in a store (cleaning, cutting, grinding, packaging)
tap - use
(Source: Sweet success ahead, 8/02/2010, Kamamol Pongthanee, link)
