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Presenters: Jose Rojo G. Alisla Rosemarie S. Gumera Presenters: Jose Rojo G. Alisla Rosemarie S. Gumera Sugar Regulatory Administration Department of Agriculture.

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Presentation on theme: "Presenters: Jose Rojo G. Alisla Rosemarie S. Gumera Presenters: Jose Rojo G. Alisla Rosemarie S. Gumera Sugar Regulatory Administration Department of Agriculture."— Presentation transcript:

1 Presenters: Jose Rojo G. Alisla Rosemarie S. Gumera Presenters: Jose Rojo G. Alisla Rosemarie S. Gumera Sugar Regulatory Administration Department of Agriculture Philippines

2 Crop Year Area Planted 420,000 Hectares No. Farmers 62,000 No. of Operating Sugar Mills -Total Milling Capacity ,000 Tons Cane / Day No. of Operating Sugar Refineries -Total Refining Capacity 14 8,000 MT/Day No. of Bioethanol Distilleries -Total Annual Rated Capacity million liters

3 VISAYAS (18 mills + 7 refineries + 3 distilleries) MAP OF PHILIPPINE SUGAR MILLS & BIOETHANOL DISTILLERIES LUZON (7 mills + 4 refineries + 1 distillery) NEGROS MINDANAO (4 mills + 3 refineries) TARLAC Batangas Sugar CAMARINES SUR PAMPANGA CAGAYAN ILOILO CAPIZ LEYTE CEBU BUKIDNON DAVAO DEL SUR Davao NORTH COTABATO NEGROS OCCIDENTAL NEGROS ORIENTAL Lopez Sa Tolong AGUSAN DEL NORTE BOHOL LANAO DEL NORTE MASBATE MISAMIS OCCIDENTAL MISAMIS ORIENTAL SAMAR SURIGAO DEL NORTE SURIGAO DEL SUR ZAMBOANGA DEL NORTE ZAMBOANGA DEL SUR SOUTH COTABATO PALAWAN Legend MANILA Sugar mills Mills with annexed refinery Major sugar ports SAN CARLOS 5,000 HECTARES Green Future Innovations CAGAYAN / ISABELA 11,000 HECTARES Bioethanol production areas Pampanga Bioenergy 7,000 HECTARES PANAY BATANGAS Bioethanol target areas Canlaon Alcogreen 5,000 HECTARES Bioethanol Distilleries CAVITE Cavite Biofuels 7,000 HECTARES N S E W

4 17,000 has. Total Cane Area – 420,000 hectares

5 Farm Sizes, Hectares 24% 12 % 15 % 16 % 18 %

6 Philippine Sugarcane Areas for the Past 10 Crop Years

7 Philippine Cane & Sugar Production for the Past 10 Crop Years Million MT Crop Years

8 Philippine Farm Productivity for the Past 10 Crop Years

9 Philippine Sugar Production & Trade for the Past 10 Crop Years

10 Crop YearPesos Per 50-kilo bag Peso-US $ Exchange Rate USCents/lb *1, , , , HISTORICAL PHILIPPINE RAW SUGAR COMPOSITE PRICES * As of April 2012

11 Bioethanol Production, Liters Year TOTAL Production (Million Liters) Mandated Bioethanol Blend Mandated Volume (Million Liters) VoluntaryNone % % % *12.00 (estimates as of May 2012) 10 %486 In 2012, around 486 million liters bioethanol is required under the 10% mandated blend, however, only 4 distilleries are operational with a combined annual rated capacity of 133 million liters.

12 2010 Power Generation by Plant Type, GWh Gross Power = 67,743 GWh

13 GWh

14 2010 Installed and Dependable Capacity, Philippines MW

15 Sugar Tariff Schedules and Implications Maintaining Profitability in the Philippine Sugarcane Industry Performance of Philippine Sugar Mills and Deterrents to Mill Improvements Implementation of the Biofuels and Renewable Energy Laws Sugar Tariff Schedules and Implications Maintaining Profitability in the Philippine Sugarcane Industry Performance of Philippine Sugar Mills and Deterrents to Mill Improvements Implementation of the Biofuels and Renewable Energy Laws

16 Sugar Tariff Schedules and Implications AFTA – CEPT Tariff Schedule: % % % % % Implications: Entry of imported sugar would threaten the livelihood of the 62,000 farmers and 600,000 workers of the Philippine sugarcane industry Entry of imported sugar will push downwards the millsite price of locally- produced sugar

17 Maintaining Profitability in the Philippine Sugarcane Industry Fragmented farms due to the Comprehensive Agrarian Reform Law Small farms have low farm productivities Small farmers have no financial capability in procuring the necessary farm inputs Lacks infrastructure support from government

18 Performance of Philippine Sugar Mills and Deterrents to Mill Improvements Less efficient sugar mills, low capacities Majority of Philippine mills need to be rehabilitated and upgraded Lack of financial package from government financing institutions

19 Implementation of the Biofuels and Renewable Energy Laws Uncertainty in the buying price of bioethanol – how successful is the implementation of the price index of locally-produced bioethanol Feed-in-tariff rate for biomass is still pending with the Philippine Energy Regulatory Commission

20 Prospects for Cane Expansion Areas Access to Japan Sugar Market thru PJEPA Creating Greater Value for Sugarcane Bioethanol Production Power Cogeneration Increased Farm Mechanization Due to Labor Supply Shortage Sustaining 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 supply Development of expansion areas for sugarcane to supply the feedstocks for bioethanol fuel Access to Japan Sugar Market thru PJEPA Proposal of the Philippine govt under the Phil.-Japan Economic Partnership Agreement (PJEPA) for a TRQ of 150,000 MT raw cane sugar with an in-quota rate of yen per kilo and 1,000 MT of muscovado sugar with an in-quota rate of yen per kilo.

22 Creating Greater Value for Sugarcane Product diversification or development of alternative or high-value products Production of organic sugar Turning a community of small cane farmers into an agribusiness enterprise Bioethanol Production Thirteen more distilleries with an annual capacity of 30 million liters are required to meet the volume requirement of the 10 % mandate of bioethanol blend

23 Power Cogeneration Existing power generating capacity of all the sugar mills in the Philippines is 200 megawatts; Given the right investment environment, the boilers and power generators of such mills can be upgraded up to 600 megawatts making available 400 megawatts for power cogeneration The Philippines is currently experiencing power shortages and the power generated by the sugar mills could help solve the countrys problem on power deficit

24 Increased Farm Mechanization Due to Labor Supply Shortage Farm laborers in the Philippines became scarce and the new generation are no longer inclined in farming but preferred to work overseas The shortage of farm labor triggered the shift to farm mechanization 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 in order to be in the offensive move rather than be flooded with imported sugar More opportunities for investment in mill modernization, infrastructure and farm and equipment are seen to flourish in the Philippines given the need to be competitive in world sugar production

26 Website : Tel. No. : (632) (632)


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