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AB Sugar China has a long history of transforming the efficiency and sustainability of the sugar industry in China. First established in the Chinese cane sugar sector in 1995, it moved into beet in the north with the acquisition of businesses in 2007. Since then it has invested heavily in the industry, leading the way in agricultural developments including mechanisation, so improving rural prosperity. AB Sugar China is now working with growers to further advance crop quality.
Traditionally, Chinese growers have been paid per tonne of beet, with no adjustment for the sugar content in the beet. Reflecting experience outside China, the business has now moved to Pay by Sugar (PBS), where growers are paid a headline price per tonne of beet with an adjustment for the actual sugar content.
To support growers in managing this significant shift, AB Sugar is helping them to develop best agronomy practices so they can increase their yield and sugar content thereby earning higher margins. In turn, AB Sugar China gains from ensuring a more sustainable beet supply, improved beet quality and greater operational efficiency at its two factories.
By the 2021/22 campaign, AB Sugar China aims to contract all of its 1,130 big growers by PBS. Already, during 2020/21, 77% of growers were contracted in this way – far higher than the business’s original 50% goal.
The move to PBS involves further significant investment from AB Sugar, including the installation of beet sampling and testing equipment at both factories, mobilising ‘beet academies’ to train growers how to increase yields and providing additional R&D capability.