Thai firms grappling with the US$60 million losses from China’s ban on sugar syrup have halted production, following unsuccessful negotiation to lift the restrictions.
In December, China suspended imports of syrup and premixed powder from Thailand, the world’s 2nd largest sugar exporter due to concerns of factory hygiene. In January, China requested for Thailand to inspect dozens of syrup and premixed powder factories before commencing talks to lift the ban.
Todsaporn Ruangpattananont, representative of Thai Sugar Product Association which represents 42 sugar mills that primarily supply to China said, “Of the 42 factories, 35 have temporarily stopped 100% of production because they only export to China. They are hopeless and if the issue is not resolved, they most likely will have to shut down their businesses.”
Thailand was China’s main supplier of liquid sugar in 2024, with shipments of more than 1.2 million metric tons.
Since the suspension, Thai factories have suffered US$60.35 million in losses, which included transport costs, fines at Chinese ports and reduced selling prices of returned shipments. One such manufacturer is Asia United Foods Industrial Co which had previously shipped over 5,000 tonnes of syrup and premixed powder worth Bt 100 million (US$3 million) every month to China over the past 3 years.
