Cane Points » Crop Year 2016-2017 in Review (Part 1)

Part 2

SRA has issued Sugar Order No. 1, allocating Crop Year 2017-2018 sugar production at 10% for A (US Quota) sugar, 80% for B (Domestic Market) sugar, and 10% for D (World Market) sugar.

The allocation reflects a slight variance from the recommendation of the Sugar Alliance of the Philippines, which proposed 12% for A, 80% for B, and 8% for D.

Even before the close of the previous milling season, Enrique D. Rojas, president of the National Federation of Sugarcane Planters, batted for an increased allocation for A and a reduced allocation for D.

Perhaps Rojas was anticipating another increase in the US quota, like what happened in CY 2016-2017 when the US added 63,830 metric tons last July 31 to the Philippines' regular annual quota of 136,188 mt. Shipment of the total quota to the US has been extended from September 30 to October 31.

"Since the sugar order is already out, we will abide by it," Rojas said. "However, if circumstances and developments warrant in the later part of the milling season, we will recommend whatever adjustments might be necessary to amend the allocations. Our bottom line here is to give our sugar farmers a fair price for their sugar," he added.

Before plodding on to the current milling campaign, let's take a look at how the sugar industry fared last crop year. Figures used here are from the SRA presentation during the NFSP Annual Meeting at Casino Espa?ol, Cebu last August 15. Dates of reckoning are Week Ending July 30, 2017 for CY 2016-17 and Week Ending July 31, 2016 for CY 2015-16.

CY 2016-17 logged almost 28 million mt ton canes milled, higher by almost 20% from CY 2015-16's 23.35 million. The spike in cane deliveries off-setted the drop in yield, from 1.94 LKg/TC in CY 2015-16 to only 1.79 LKg/TC for CY 2016-17.

Luzon's tonnage slightly increased, from 2.86 million mt to 3 million mt, while its yield had little change, from 1.69 LKg/TC to 1.68 LKg/TC.

Mindanao cane deliveries significantly increased, from 3.9 million mt to 5.26 million mt, but Mindanao mills also recorded a substantial drop in yield, from 2.14 to 1.81 Lkg/TC.

Negros registered a 19% increase in cane deliveries, from 14 million mt to 16.7 million mt, but Negros mills also suffered a drop in LKg/TC, from 1.95 to 1.84.

The three mills in Panay increased their cane tonnage, from 1.85 million mt to 2.3 million mt, but it also posted a drop in yield, from 1.82 LKg/TC to 1.62 LKg/TC.

Bogo-Medellin in Cebu and Hisumco in Leyte also registered a slight increase in tonnage, from 673,240 mt to 700,926 mt, but it also experienced a drop in yield, from 1.76 LKg/TC to 1.57 LKg/TC.

Raw sugar production increased by about 12% to 2.5 million mt. from 2.24 million mt in CY 2015-16.

Luzon increased its production, from 239,726 mt to 253,468 mt. The four mills in Mindanao posted a 14% hike in raw sugar production, from 418,509 mt to 477,493 mt.

Negros logged a significant increase, from 1.35 million mt to 1.53 million mt. Of the 12 mills in the sugar bowl of the Philippines, only Vicmico and OPTION in Sagay posted a drop in raw sugar production.

Panay increased its production from 166,340 mt to 186,276 mt. Only the East Visayas mills recorded a drop in raw sugar production, from 58,732 mt to 54,970 mt.

Raw sugar withdrawals increased by 3.5%, from 2.05 million mt to 2.12 million mt as of July 30, 2017.

Luzon raw withdrawals increased from 220,973 mt to 230,136 mt, while Mindanao withdrawals dropped from 372,557 mt to only 332,140 mt.

Raw sugar withdrawals from Negros mills increased by almost 8%, from 1.25 million mt to 1.35 million mt. Biscom, First Farmers, La Carlota, Sonedco, Tolong and Vicmico posted increased withdrawals, while the withdrawals from the other six mills (Bais, Hawaiian, Lopez, Ursumco, Sagay and OPTION) decreased.

Withdrawals in Panay increased, from 150,269 mt to 160,634 mt. Eastern Visayas raw sugar withdrawals dropped from 52,646 mt to 50,606 mt.

(To be continued on Wednesday, September 6)

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