PH’s sugar output to go down while demand increases
US Department of Agriculture (USDA) said that for the market year (MY) 2017 to 2018 Philippine’s raw sugar production is expected to drop to 2.3 million metric tons (MT) from 2.5 million MT in the previous year due to unfavorable weather conditions and lower sugar content and tonnage of cane produced.
This, while industry contacts anticipate demand for sugar to rise due to a rapidly developing food processing industry and a growing population.
“Post projects sugar consumption for MY 2017/18 to increase slightly from the previous year as beverage manufacturers purchase additional local sugar due to tighter regulations on the importation of high-fructose corn syrup [HFCS] and new excise taxes,” USDA said.
Meanwhile, the country’s raw sugar exports in MY 2016/17 were revised upwards 100,000 MT to 300,000 MT on updated data and a bumper crop, but are expected to decline in MY 2017/18 to 220,00 MT due to a reduction in sugar earmarked for the world market by the Sugar Regulatory Administration (SRA).
As of now, the island of Negros continues to account for 55 percent of domestic sugar production; followed by Mindanao, 21 percent; Luzon, 14 percent; Panay, 7 percent; and Eastern Visayas, 3 percent.
Roughly 90 percent of total Philippine production comes primarily from four major sugar planter federations and three major miller associations. There are about 27 sugar mills and 12 sugar refiners in the country.