SUGARCANE VIABILITY SUGARCANE VIABILITY –– A CASE STUDYA CASE STUDY

Sugar Industry Research InstituteSugar Industry Research InstituteExtension DepartmentExtension Department

Paulette Wright, Weston Fray & Andrew SimpsonPaulette Wright, Weston Fray & Andrew Simpson

OBJECTIVESOBJECTIVESOBJECTIVESOBJECTIVES1.1. To establish a highly productive plot of To establish a highly productive plot of

Sugar cane with high JRCS and to Sugar cane with high JRCS and to g gg gassess the viability of cane production in assess the viability of cane production in the Frome area. the Frome area.

OBJECTIVESOBJECTIVESOBJECTIVESOBJECTIVES2.2. To achieve cane yield above 80tc/ha for To achieve cane yield above 80tc/ha for

at least 5 years thereat least 5 years there--by extending the by extending the yy y gy gratoon life of the crop to at least 7 years. ratoon life of the crop to at least 7 years.

Productivity Productivity (Tc/ha)(Tc/ha)yy ( / )( / )

19961996--20012001yearyear Frome Frome

EstateEstateFrome Frome

FarmersFarmersNational National AverageAverageEstateEstate FarmersFarmers AverageAverage

20012001 7575 7070 6464

20002000 5555 6060 575720002000 5555 6060 5757

19991999 6565 6161 6262

19981998 7373 6969 6464

19971997 7070 6464 6363

METHODOLOGYMETHODOLOGYMETHODOLOGYMETHODOLOGY

Grower selectionGrower selectionGrower selectionGrower selectionField selection (2.8 Ha)Field selection (2.8 Ha)Nutrient determinationNutrient determinationNutrient determinationNutrient determinationVariety selectionVariety selection

METHODOLOGYMETHODOLOGYMETHODOLOGYMETHODOLOGYLand Preparation Land Preparation ––soil ameliorant soil ameliorant ploughed in -290 tonnesp g

PlantingPlanting May 16 2002May 16 2002PlantingPlanting-- May 16, 2002May 16, 2002

FertilizingFertilizing--11stst-- May 16, 2002 May 16, 2002 22ndnd-- July 18, 2002July 18, 2002y ,y ,

Land Preparation Land Preparation PPl h h i i fi l h d f iPPlough, harrow, ripping, final harrow and furrowing

Weed Control Weed Control Igran 4 l/ha, Actril D’S 1 l/haIgran 4 l/ha, Actril D’S 1 l/ha

ChallengesChallengesChallenges Challenges Green cane harvesting attemptedGreen cane harvesting attemptedFlood October 2002Flood October 2002Flood, October 2002Flood, October 2002Illicit fire February 2004Illicit fire February 2004H i I S t b 2004H i I S t b 2004Hurricane Ivan September 2004Hurricane Ivan September 2004Drought 2005Drought 2005

Green cane harvesting attemptedGreen cane harvesting attempted

Burnt cane harvestingBurnt cane harvesting

Ha estingHa estingHarvestingHarvesting

Result

60

70

40

50

60

30

40

tc/h

a

10

20

02002 - 2003 2003 - 2004 2004 - 2005

Year

Co e SamplingCo e SamplingCore SamplingCore Sampling

PRODUCTION FOR THREE YEARSPRODUCTION FOR THREE YEARS2003 2003 -- 20052005

Year Tonnes reaped

TC/Ha JRCS R/F Av Price

2002-03 174.92 62.50 10.042 1.1341 $1346.76

2003-04 183.4 65.50 11.0983 1.0409 $2112.72

2004-05 151.28 54.03 12.2650 1.1282 $2397.40

Income and E pendit eIncome and E pendit eIncome and ExpenditureIncome and ExpenditureYear 1Year 1 Year 2 Year 2 Year 3Year 3

Cash flowCash flowProject capitalProject capital 229,947229,947Project capitalProject capital 229,947229,947Cane sales:Cane sales:

First paymentFirst payment 124 522124 522 183 919183 919 199 523199 523First paymentFirst payment 124,522124,522 183,919183,919 199,523199,523Second paymentSecond payment 111,020111,020 126,669126,669 122,779122,779Third paymentThird payment 35 03035 030 54 23154 231 40 37740 377Third paymentThird payment 35,03035,030 54,23154,231 40,37740,377Fourth paymentFourth payment 0.000.00 22,650022,6500 0.000.00Total cash inflowTotal cash inflow 500 518500 518 387 469387 469 362 679362 679Total cash inflowTotal cash inflow 500,518500,518 387,469387,469 362,679362,679

P oject Cash O tfloP oject Cash O tfloProject Cash OutflowProject Cash Outflow

ActivitiesActivities Year 1Year 1 Year 2Year 2 Year 3Year 3

Land Preparation &Land Preparation & 226 580226 580Land Preparation & Land Preparation & PlantingPlanting

226,580226,580

CultivationCultivation 54 61154 611 62 40662 406Cultivation Cultivation 54,61154,611 62,40662,406

HarvestingHarvesting 65,06765,067 76,48476,484 86,73886,738

Operators Operators RemunerationRemuneration

34,97834,978 55,02055,020 75,64075,640

SubSub--TotalTotal 326,625326,625 186,114186,114 224,784224,784

Loan Repa mentLoan Repa mentLoan RepaymentLoan Repayment

Year 1Year 1 Year 2Year 2 year3year3

PrincipalPrincipal 76,64976,649 76,64976,649 76,64876,648

Cost of Cost of moneymoney

29,89329,893 19,92919,929 9,9649,964yy

SubSub--TotalTotal 106,542106,542 96,57896,578 86,61386,613

Analysis of Project EarningsAnalysis of Project Earningsy j gy j gYear 1Year 1 Year 2Year 2 Year 3Year 3

Operators fee of Operators fee of field cost (%)field cost (%)

1111 3030 3434field cost (%)field cost (%)

Operators fee of Operators fee of total cost (%)total cost (%)

88 1919 2424total cost (%)total cost (%)

Annual ROI (%)Annual ROI (%) 1313 3232 1313overall ROI (%)overall ROI (%) 1818overall ROI (%)overall ROI (%) 1818

Net Ea ningsNet Ea ningsNet EarningsNet Earnings

Year 1Year 1 Year 2Year 2 Year 3Year 3

Total Total IncomeIncome

500,519500,519 387,467387,467 362,679362,679

Total Total ExpenditureExpenditure

443,667443,667 293,192293,192 321,897321,897pp

Net Cash Net Cash ReturnsReturns

56,85256,852 94,27594,275 40,78240,782ReturnsReturns

S mma & Concl sionsS mma & Concl sionsSummary & ConclusionsSummary & Conclusions

Timely application of inputs is crucialTimely application of inputs is crucialYields should exceed 65 tc/haYields should exceed 65 tc/haYields should exceed 65 tc/haYields should exceed 65 tc/haHigh JRCSHigh JRCS-- target > 11target > 11It i ibl t i bl i thIt i ibl t i bl i thIt is possible to grow cane viably in the It is possible to grow cane viably in the Frome area.Frome area.

FARMER’S PRODUCTION FARMER’S PRODUCTION 19991999--20022002

YEAR TOTAL HECTARE

HECTARE REAPED

TONNES REAPED

TC/ HA

1998-1999

50 45 2037 45

2000-01 50 38 2480 65

2002 50 50 1520 30

Nutrient determinationNutrient determinationTo determine correct grade and rate of fertilizerTo determine correct grade and rate of fertilizergg

NUTRIENTS RATINGSNUTRIENTS RATINGSNUTRIENTS RATINGSNUTRIENTS RATINGSpHpH Highly Highly

AcidicAcidicCaCa LowLow

PP ModeratelyModerately MgMg LowLowPP Moderately Moderately AcidicAcidic

MgMg LowLow

KK LowLow NaNa LowLowKK LowLow NaNa LowLow

Varieties planted Varieties planted (BJ82156 &BJ7465)(BJ82156 &BJ7465)

Split applicationSplit applicationAt planting 375 kg/ha of 14At planting 375 kg/ha of 14--2828--1414

Ei ht k l t 250 k f 17Ei ht k l t 250 k f 17 00 1717Eight weeks later 250 kg of 17Eight weeks later 250 kg of 17--00--1717