Chicken and Swine

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Philippine sugarcane output has been volatile over the past few years, with a sizable drop in 2010 due to El Niño. Approximately 90% of the sugar produced in the Philippines is sold for domestic consumption with most of the remainder exported to the US. Philippine sugar exports dropped in 2010 when domestic production faltered, before recovering sharply in 2011. Import quantities, on the other hand, have been fairly low except in 2010. The following year, imports returned to trend as domestic production recovered and world prices increased. Sugar imports of ASEAN countries have risen considerably since 2004. However, the Philippines exports very little of the commodity to these countries. Indonesia and Malaysia, the two largest importers in ASEAN, obtain most of their sugar from Thailand and Brazil. Brazil is the largest sugar exporter in the world with 37.6% export value share in 2012, followed by Thailand with 11.7%. One of the problems of the Philippine sugar export industry is yield inefficiency. While the Philippines’ yield reached 61 tonnes/ha in 2012, this figure is still low compared to the top two exporters to ASEAN, Thailand and Brazil, who both had yields of 74 tonnes/ha in the same year (FAOSTAT, 2014). A factor contributing to low productivity is lack of coordination: cane farms and sugar mills are not always coordinated in terms of capacity or geographic location. According to FAO (2013), the significant production growth in Brazil was due to the massive investment in technology that occurred in the 1990s, both at the farm level (in terms of the adoption of high performing sugarcane clones) and at the factory level (with the conversion of sugarcane into ethanol). Innovation is crucial to improve productivity in the s... ... middle of paper ... ...s in the Philippines and the rest of the ASEAN may potentially increase the flow of sugar trade within the region. The simulation results indicate that sugar imports in the Philippines increase by an average of 40 percent with lower ASEAN sugar tariffs. This higher import sugar volume however has minimal impact on sugar production. The local production of sugar declines marginally by an average of 0.6 percent. The composition of sugar imports in the Philippines changes as sugar tariffs are reduced. Philippine sugar imports from the ASEAN increase by an average of 136 percent while imports from the rest of the world contract by an average of 0.6 percent. Philippine sugar exports increase by an average of 0.7 percent. Its sugar exports to the ASEAN increase by average of 4 percent while exports to the rest of the decline by an average of 0.8 percent. (Cororaton, 2013)

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