MOLASSES the product of hundred uses Presentation by Ekaterina Denisova
Objectives Overview of the product and its market Analysis of trade flows Outline of seaborne transportation Review of current problems Suggestions for the future of the product
What Is Molasses? thick syrup produced in refining raw sugar and ranging from light to dark brown in colour 80% of the worlds molasses comes from sugar cane 20% comes from sugar beets a by-product of refining process out of any volume of raw sugar: From beet sugar 5% becomes molasses From cane sugar 0.7%
Understanding Molasses quality of molasses depends on: maturity of raw sugar amount of sugar extracted method of extraction three major types of molasses: unsulphured, sulphured and blackstrap.
Uses of Molasses food and drinks manufacture, fuels, rubber, printing, chemical and construction industries, traditional agricultural uses Most popular: Alcohol Animal Feed Yeast – fermentation processes
Molasses World Production (thousand tons) Constructed by author based on UFC report
Top Sugar Producers 2002/03 (thousand tons)
Molasses Producers 2003 Constructed by author based on UFC report
Dynamics of World Trade Molasses Exports (thousand tons) Source: UFC Report on Molasses World Trade
Molasses Exporters 2002 Constructed by author based on FAO statistics Others: Colombia, Australia, India, Philippines, Brazil, Netherlands, Dominican Republic, Sudan, El Salvador, Ukraine, Belgium, France
Molasses Importers 2002 Constructed by author based on FAO statistics Others: Canada, Japan, Vietnam, Germany, Indonesia, Italy, Denmark, Turkey, Austria, Norway, New Zealand, Sweden
Problems Produced hot: 52C Cooling down and mixing If not done affects further processes Fresh molasses problematic to use Stored for at least a month (especially if later used in distillery) Again mixing and cooling Sanitation during storage to avoid microbial contamination
Problems – cont. Handling and distribution challenges: High viscosity Resistance to flow Therefore difficult to pump Temperature affects its viscosity For every 5 C drop molasses doubles in viscosity Molasses is generally underutilised
Shipment of Molasses Tankers – stainless steel High freight rates Does not influence market: follows vegetable oil, palm oil, etc. Combined carriers went to dry cargo Older ships phasing out quicker (2007)
Near Future Increase in domestic alcohol and ethanol consumption (e.g. Pakistan): Less molasses exported Higher price Low prices in domestic alcohol industry (e.g. Brazil): More molasses exported
Future Abolishment of sugar subsidies in EU and US: Sugar volumes down Molasses volumes up Less molasses imported Might not be, as beet molasses produced and cane imported
Conclusion Traditional product – problematic New uses Follows sugar Does not influence freight rates Uncertain future – EU and US
The End Thank you for listening