Thai sugar producer KSL faces 15% output drop, eyes low-GI product growth

Thailand’s third-largest sugar producer, Khon Kaen Sugar Industry (KSL), anticipates a decline of 10 to 15% in sugar cane output, down to 5 million tonnes, for its factories in the 2023 to 2024 crop year due to drought. In comparison, the 2022 to 2023 crop year yielded 6.4 million tonnes of sugar cane. Despite the reduction in sugar cane production, KSL remains optimistic about the industry’s future.

Chalush Chinthammit, KSL’s president, highlighted that “sugar prices in the global market remain high at around 22 cents a pound, which will be good for the sugar industry.” The company predicts that Thai sugar cane production in the 2023 to 2024 crop year will total 80 million tonnes, falling short of the previous target of 100 to 105 million tonnes.

KSL expects its revenue to increase by 20% this year, up from 16.6 billion baht in the previous year, driven by the sales of a new low-glycaemic index (GI) sugar product under Kane’s brand. Developed in partnership with Singapore-based Nutrition Innovation Co, the low-GI sugar is suitable for customers seeking to control their blood sugar levels. GI is a rating system that measures how quickly food containing carbohydrates and sugar affects blood sugar levels when consumed.

KSL aims to produce 148 tonnes of the new sugar product in 2023, with plans to raise capacity to 2,000 tonnes in the following year. “There is not a lot of cane left for making low-GI sugar after the cane-crushing period ended,” Chinthammit noted. The company operates five sugar manufacturing plants across Khon Kaen, Loei, Sa Kaeo, and Chon Buri, with its Loei factory set to be the first to produce low-GI sugar, reports Bangkok Post.

KSL holds the third spot in sugar sales in Thailand, trailing market leader Mitrphol Group and Thai Rung Ruang Group. Matthew Godfrey, CEO of Nutrition Innovation, mentioned that several other sugar companies in Australia, India, Africa, and Brazil have also developed low-GI sugar products. “We see an opportunity in Thailand to develop innovative sugar products and decided to expand our business here,” he said.