6 Philippine Sugarcane Areas for the Past 10 Crop Years
7 Philippine Cane & Sugar Production for the Past 10 Crop Years Million MTCrop Years
8 Philippine Farm Productivity for the Past 10 Crop Years
9 Philippine Sugar Production & Trade for the Past 10 Crop Years
10 HISTORICAL PHILIPPINE RAW SUGAR COMPOSITE PRICES Crop YearPesosPer 50-kilo bagPeso-US $ Exchange RateUSCents/lb*1,40443.1529.581,86443.4638.991,66446.2132.7494547.9317.921,05743.1022.2984448.1715.9397853.0116.7766455.5010.8871055.6811.5984353.4614.34* As of April 2012
11 Bioethanol Production, Liters YearTOTALProduction(Million Liters)Mandated Bioethanol BlendMandated Volume20080.368VoluntaryNone200923.115 %20820109.8921920114.1410 %4612012*12.00(estimates as of May 2012)486In 2012, around 486 million liters bioethanol is required under the 10% mandatedblend, however, only 4 distilleries are operational with a combined annual ratedcapacity of 133 million liters.
12 Power Situation in the Philippines 2010 Power Generation by Plant Type, GWhGross Power = 67,743 GWh
13 Total Electricity Sales in the Philippines, 2009 vs. 2010GWh
14 2010 Installed and Dependable Capacity, Philippines MW
15 CHALLENGES Sugar Tariff Schedules and Implications Maintaining Profitability in the Philippine Sugarcane IndustryPerformance of Philippine Sugar Mills and Deterrents to Mill ImprovementsImplementation of the Biofuels and Renewable Energy Laws
16 Implications: Sugar Tariff Schedules and Implications AFTA – CEPT Tariff Schedule:%%%%%Implications:Entry of imported sugar would threatenthe livelihood of the 62,000 farmersand 600,000 workers of thePhilippine sugarcane industryEntry of imported sugar will pushdownwards the millsite price of locally-produced sugar
17 Maintaining Profitability in the Philippine Sugarcane Industry Fragmented farms due to the ComprehensiveAgrarian Reform LawSmall farms have low farm productivitiesSmall farmers have no financial capability inprocuring the necessary farm inputsLacks infrastructure support from government
18 Performance of Philippine Sugar Mills and Deterrents to Mill Improvements Less efficient sugar mills, low capacitiesMajority of Philippine mills need to berehabilitated and upgradedLack of financial package from governmentfinancing institutions
19 Implementation of the Biofuels and Renewable Energy Laws Uncertainty in the buying price of bioethanol –how successful is the implementation of the priceindex of locally-produced bioethanolFeed-in-tariff rate for biomass is still pendingwith the Philippine Energy Regulatory Commission
20 OPPORTUNITIES Prospects for Cane Expansion Areas Access to Japan Sugar Market thru PJEPACreating Greater Value for SugarcaneBioethanol ProductionPower CogenerationIncreased Farm Mechanization Due to Labor Supply ShortageSustaining Domestic Requirement and Maintaining World and US Quota Exports
21 Prospects for Cane Expansion Areas Most Philippine sugar mills are underutilized due to the lack of cane supplyDevelopment of expansion areas for sugarcane to supply the feedstocksfor bioethanol fuelAccess to Japan Sugar Market thru PJEPAProposal of the Philippine gov’t under the Phil.-Japan Economic PartnershipAgreement (PJEPA) for a TRQ of 150,000 MT raw cane sugar with anin-quota rate of yen per kilo and 1,000 MT of muscovado sugarwith an in-quota rate of yen per kilo.
22 Creating Greater Value for Sugarcane Product diversification or development of alternative orhigh-value productsProduction of organic sugarTurning a community of small cane farmers into anagribusiness enterpriseBioethanol ProductionThirteen more distilleries with an annual capacity of30 million liters are required to meet the volume requirementof the 10 % mandate of bioethanol blend
23 Power CogenerationExisting power generating capacity of all the sugar mills in thePhilippines is 200 megawatts;Given the right investment environment, the boilers and powergenerators of such mills can be upgraded up to 600 megawattsmaking available 400 megawatts for power cogenerationThe Philippines is currently experiencing power shortages andthe power generated by the sugar mills could help solve thecountry’s problem on power deficit
24 Increased Farm Mechanization Due to Labor Supply Shortage Farm laborers in the Philippines became scarce and thenew generation are no longer inclined in farming butpreferred to work overseasThe shortage of farm labor triggered the shift to farmmechanization in the Philippines
25 Sustaining Domestic Requirement and Maintaining World and US Quota Exports The Philippines has to be a net exporter of sugar by 2015 inorder to be in the offensive move rather than be flooded withimported sugarMore opportunities for investment in millmodernization, infrastructure and farm and equipment areseen to flourish in the Philippines given the need to becompetitive in world sugar production
26 Thank You Website : www.sra.gov.ph Tel. No. : (632)(632)
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