1. The Philippine Sugarcane “Challenges & Opportunities”
Industry
“Challenges & Opportunities”
Bioethanol
Cane Farms
Sugar Mill
Sugar Regulatory Administration
Department of Agriculture
Philippines
Presenters:
Jose Rojo G. Alisla
Rosemarie S. Gumera
Sugar Asia Conference
Bangkok, Thailand
May 16-17, 2012

2. Profile of the Philippine Sugarcane Industry
Crop Year
Area Planted
420,000 Hectares
No. Farmers
62,000
No. of Operating Sugar Mills
-Total Milling Capacity 29
185,000 Tons Cane / Day
No. of Operating Sugar Refineries
-Total Refining Capacity 14
8,000 MT/Day
No. of Bioethanol Distilleries
-Total Annual Rated Capacity 4
133 million liters

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

4. Distribution of Philippine Cane Areas, CY 2011-2012
17,000 has.
Total Cane Area – 420,000 hectares

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

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. HISTORICAL PHILIPPINE RAW SUGAR COMPOSITE PRICES
Crop Year
Pesos
Per 50-kilo bag
Peso-US $ Exchange Rate
USCents/lb *
1,404
43.15
29.58
1,864
43.46
38.99
1,664
46.21
32.74
945
47.93
17.92
1,057
43.10
22.29
844
48.17
15.93
978
53.01
16.77
664
55.50
10.88
710
55.68
11.59
843
53.46
14.34
* As of April 2012

11. Bioethanol Production, Liters
Year
TOTAL
Production
(Million Liters)
Mandated Bioethanol Blend
Mandated Volume
2008
0.368
Voluntary
None
2009
23.11
5 %
208
2010
9.89
219
2011
4.14
10 %
461
2012*
12.00
(estimates as of May 2012)
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. Power Situation in the Philippines
2010 Power Generation by Plant Type, GWh
Gross Power = 67,743 GWh

13. Total Electricity Sales in the Philippines,
2009 vs. 2010
GWh

14. 2010 Installed and Dependable Capacity, PhilippinesMW

15. CHALLENGES 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. Implications: 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. OPPORTUNITIES 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 gov’t 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
country’s 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. Thank You Website : www.sra.gov.ph
Tel. No. : (632)
(632)