Industry News

Sugar production projected to rise by seven percent

Philippine sugar output in marketing year (MY) 2018-2019 was estimated to increase by at least seven percent from 2.10 million (M) tons from the previous year to 2.23M tons, according to the Global Agricultural Information Network (GAIN) report. Projections from the GAIN report, which was prepared by the US Department of Agriculture-Foreign Agricultural Service in Manila, were derived from the expected recovery of sugarcane output in the country. The report stated that the total sugarcane milled in MY 2017-2018, which runs from December 2017 to November 2018, would grow marginally from 23.9M tons from the previous MY to 24M tons.

However, the report noted that “industry sources believe that raw sugar output may be even lower than what is officially projected by the Sugar Regulatory Administration (SRA), due to continued farm labor shortages and possible unfavorable weather conditions contributing to the low sugar content of cane produced.” Forecasts from the GAIN report, and estimates and directions from the SRA related to the market conditions of sugar were as follows:

Period Particulars Amount Cause/Objective Source
MY 2017-2018 Projected local demand for sugar 2.25M tons (flat) Demand of industrial users for sugar remains strong given import restrictions and increased taxes on sugar substitutes GAIN report
MY 2017-2018 Expected imports of sugar 300,000 tons (from 200,000 tons) To augment local supply GAIN report
Crop Year (CY) 2018-2019 Allocation of expected sugar output 2.1M tons (95 percent); 111,250 tons (5 percent) 95 percent of the expected sugar output is intended for the domestic market with the remaining five percent to be exported to the United States Sugar Order (SO) 1, issued last August, SRA
CY 2018-2019 Expected total area planted 423,448 hectares Expected to produce roughly 24.7M tons of sugarcane SRA
CY 2018-2019 Sugar output (started: September 1) estimate 2.2M tons (nearly six percent growth) The forecasted total sugar output in the current CY would grow from CY 2017-2018’s output of 2.1M tons, after “unfavorable weather conditions” struck sugar-producing provinces last CY. The increase in rainfall has driven down the country’s sugar output; wet canes have lower sugar content SO 1, SRA

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