VMC reports record raw sugar output
Victoria’s Milling Company, Inc. reported its highest production since it started, milling 3.4 million tons of sugar cane for crop year 2014 to 2015 which it attributed to improved efficiency, favorable weather conditions that resulted in better farm productivity, and support from sugar planters and planters’ associations.
In its annual report released January 4, 2016, VMC said it produced the equivalent of 7.02 million 50-kilogram bags of sugar. VMC, located in Victorias City in Negros Occidental, was incorporated in May 1919 to engage in raw and refined sugar manufacturing. Weak sugar prices and high operating costs prompted the company to seek a suspension of debt payments in 1997 and a debt restructuring agreement was executed with creditors in 2002.
VMC said it increased its market share this year to 23.73 percent from 26.92 percent. Its major revenue sources are sales of raw sugar mill share, tolling fees from its refinery operations, and sales of by-products such as molasses.
VMC’s sugar products are bought mainly by sugar traders. The company conducts a weekly sugar and molasses bidding in Bacolod City under a single price auction for both mill’s and planters’ shares wherein the highest bid price becomes the prevailing price for sugar sold during the day.
For crop year 2014 to 2015, VMC sold more than two million 50-kilogram bags of raw sugar, also known as brown sugar, at an average of P1,476.48 per bag for P2.9 billion. (Eileen A. Mencias)