Challenges Of Philippine Sugar Production In The Philippines

Casals, Queen Ara Mariah P. Miss Ma. Ella C. Oplas
11532483 Short paper 3
Sugar Production in the Philippines Over the years, the Philippines experienced challenges in the sugarcane industry due to dwindling farms and El Nino phenomena. But before this happened, the Philippines was one of the countries who thrive in importing sugar, which predates back to Spanish colonization. The Sugar Regulatory Administration was created on May 28, 1986 by Executive Order No. 18 to promote the growth and development of the sugar industry and improve the working conditions of laborers in the country. As of 2016-2017, the total annual production of raw sugar is 2,238,872 LKG per hectare, and for refined sugar is 19,146,629 in a 50kg bag. The

Another reason for higher production cost is there are only 14 refineries and 1 distillery in the Philippines. Consequently, there is a need to charge consumers a higher price than the production cost. If firms or farmers would charge a price lower than the cost of production, they will eventually go out of business. Higher cost of production means higher domestic price for sugar. This burdens citizens of the country, especially to the low-income families. It also indicates that entry in the international market will be hard for the Philippines because the price of exporting sugar would be higher compared to a country like Thailand who has a lower cost of production due to its efficient technology. Bioethanol, which is the alternative gas for running the sugar mills, is not enough that is why the government must import bioethanol gas from Brazil, which contributes to higher production cost. The winners in this situation are countries that have the ability to enter the sugar world market and trade with states. Meanwhile, the loser is the Philippines alone because it does not have enough money to allocate funds for the improvement of sugar production, thus making the cost of production