Optimizing the Procurement and Processing of Sugarcane in Pakistan: Approaches for Improved Efficiency and Production.
Sugarcane is a globally significant crop, providing nearly 85% of the sugar consumed worldwide. Its cultivation is one of the most important activities worldwide due to its alimentary, environmental, social, and economic implications and potential productive diversification with coproducts and byproducts. Previous trends have shown a tremendous increase in the area of sugarcane production throughout the world (Corcoran et al., 2020).
Pakistan holds an important position in the world of cane production. It ranks in the top fifth position, but concerning cane yield (69.55 t/ha), it ranks much below the principal cane-growing countries (Iqbal et al., 2014). Compared with other countries, it appears that Pakistan took a late start in meeting yield gaps. The sugar industry has developed a daily cane-crushing capacity of 567,920 tons for a 125-day crushing duration (Muhammad et al., 2019). The Pakistan sugar industry reached a recovery level of 10.47% during 2018–2019. Considering further propagation of quality cane varieties, it is not far from achieving an average sugar recovery of 11.0%. This means that with better inputs and management practices, average cane yields in Pakistan can be increased to 75 tons per hectare. In the present scenario, if the interest of millers prevails with somewhat more investment in cane yield maximization campaigns, 70 tons per hectare should be the national goal for Pakistan, and this would need extraordinary efforts (Afghan et al., 2023).
Sugarcane Procurement & Processing
The procurement function is responsible for managing the company's purchasing activity. Effective sugarcane procurement management is pivotal for optimizing supply chains and enhancing profitability in the sugar industry. Sugarcane procurement is a critical component of the sugar industry, encompassing the systematic acquisition of sugarcane from farmers, efficient loading and transportation to mills, and training laborers involved in these processes. Implementing best procurement practices enhances operational efficiency and ensures sustainability and profitability within the industry. The procurement process begins with identifying potential farmers and establishing contracts for sugarcane supply. This involves organizing credit facilities, developing infrastructure, managing harvesting schedules, overseeing labor, and coordinating logistics for transportation. A well-structured procurement program is typically led by a professional operations team and monitored by agricultural officers and field assistants. (Mukopi et al., 2015) (Pookhang et al., 2012).
Harvesting Schedules
Harvest scheduling has become one of the most important tasks in the sugar cane industry. An efficient harvest schedule could increase the sugar yield, which improves the profitability of the entire supply chain. As with other agricultural products, the complexity of the harvest scheduling problem can be attributed to the biological characteristics of sugar cane, which are uncertain and variable, and production variations, such as a grower's skill and the number of farms involved in the scheduling plan. The harvest season in Pakistan usually starts at the end of November or the beginning of December and ends in early- to mid-March. The schedule can be altered among the growers based on various criteria, such as the sugar cane ripening time, the financial needs of the members, or the availability of laborers (Thuankaewsing et al., 2015).
Importance of Labor Training
Training workers in harvesting and loading sugarcane is crucial for ensuring both efficiency and safety. Adequate training helps employees operate equipment properly, follow safety guidelines, and complete their tasks effectively, minimizing the likelihood of accidents and enhancing productivity.
Loading of Sugarcane onto Trolleys
Loading sugarcane onto trolleys or other transport vehicles is a labor-intensive task requiring skill and precision. Manual loading can lead to higher costs, increased stress, and worker safety concerns. To address these challenges, some regions have developed mechanical aids, such as sugarcane lifters, to facilitate loading. These devices aim to reduce labor costs and enhance safety during loading operations.
Transportation and Associated Costs
The procurement process includes the transportation of harvested sugarcane to mills. The costs associated with cutting, loading, and transporting sugarcane can constitute a substantial portion of the total production expenses. For example, in certain regions, labor costs for cutting and loading are estimated at about 13-14% of the total cost, and they can be even higher depending on various factors.
Challenges in the Procurement System
The sugarcane procurement system faces several challenges, including labor shortages, high costs, and logistical issues. In some cases, the procurement process is complicated by the involvement of multiple intermediaries, leading to inefficiencies. Studies have highlighted the need for a more streamlined procurement system to address these challenges and improve overall efficiency.
Conclusion
A well-organized sugarcane procurement process, coupled with effective labor training and efficient loading and transportation methods, is essential for the success of the sugar industry. By addressing the challenges in the procurement system and investing in labor training and mechanization, the industry can enhance productivity, reduce costs, and ensure the safety and well-being of its workforce and environmental sustainability, ensuring the industry's long-term viability.
References
- Afghan, S., Khan, M.E., Arshad, W.R., Malik, K.B. and Nikpay, A., 2023. Economic importance and yield potential of sugarcane in Pakistan. In Sugarcane-its products and sustainability. IntechOpen.
- Corcoran SG, Hashemi M, Sadeghpour A, Jahanzad E, Keshavarz RA, Liu X, et al. Understanding intercropping to improve agricultural resiliency and environmental sustainability. In: Sparks DL, editor. Advances in Agronomy. Vol. 162. Academic Press; 2020. pp. 199-256
- Iqbal MA, Iqbal A. Sugarcane production, economics and industry in Pakistan. American-Eurasian Journal of Agricultural & Environmental Sciences. 2014;14(12):1470-1477
- Muhammad IT, Mohammad IJ, Iftekhar N, Naeem A, Abid M. A face for enhancing cane & sugar yield in Pakistan. Global Scientific Journal. 2019;7(3):670-686
- Mukopi, C.M. and Iravo, A.M., 2015. An analysis of the effects of inventory management on the performance of the procurement function of sugar manufacturing companies in the Western Kenya Sugar Belt. International Journal of Scientific and Research Publications, 5(5), pp.1-14.
- Pookhang, B., Kao-ian, S. and Potchanasin, C., 2012. Analysis of a sugarcane procurement business system in Suphan Buri Province.
- Thuankaewsing, S., Khamjan, S., Piewthongngam, K. and Pathumnakul, S., 2015. Harvest scheduling algorithm to equalize supplier benefits: A case study from the Thai sugar cane industry. Computers and Electronics in Agriculture, 110, pp.42-55.
Further reading
Price Risk Management in Sugar Cane Industry: Opportunities and Challenges
Sustainable Use of Bagasse: Harnessing the Potential of Sugarcane Waste
Information, Uses, Health Benefits, and Nutritional Value of Sugarcane
Maximizing Sugarcane Yields and Sustainability with Intercropping
How to Cultivate Sugarcane in Your Backyard
Regenerative Sugarcane: Sustainable Farming with Organomineral Fertilizers and CBIOs