NEW ENTRANTS

Sugarcane is grown in 17 provinces in the country, distributed in eight regions from northern
Luzon (Isabela, Cagayan) to Mindanao (Bukidnon, Cotabato, Davao), and occupies a total land
area of 422,384 hectares. Twelve of the 28 operational sugar mills are located in Negros, Panay,
Leyte and Cebu, producing 56 percent of raw sugar. Tarlac and Batangas contribute 20 percent,
and Bukidnon, 24 percent.
Cultivating these areas are 62,000  farmers, giving an average  yield of 57 tons/ha. The
28 sugar mills operate at 66-percent capacity, giving an average recovery of 1.8 bags/ton cane
(one  bag=50 kilograms), which is low considering the sugar recovery of 2.4 bags in more
efficient mills. There are also 14 sugar refineries and four bioethanol distilleries producing 25
percent of the mandated ethanol market. Raw sugar production averages 2.2-2.4 million metric
tons per year. Close to 700,000 Filipinos are directly employed in sugar production, and about 5-
6 million more are indirectly employed, representing close to 7 percent of the country’s
population.
The Philippines has a low sugar yield at 5.1 tons sugar  per hectare. Columbia yields 2.38
times more sugar per hectare; Australia, 2.15 times; Brazil, 1.88 times; Guatemala, 1.74 times;
and Thailand, 22 percent more. With respect to sugar recovery per ton of milled cane, Brazil
recovers 58 percent more; Australia, 45 percent; China, 36.5 percent; and Thailand, 15 percent.
At present, the sugar industry is threatened by at least  four factors: first, the high costs of
production—inputs, labor, interest rates; second, the low yield and low market price of sugar,
which leads to low farm income; third, climate change, which has become more damaging in
recent years; and fourth, labor shortage due to the government’s infrastructure program, the
private construction boom and the 4Ps (cash transfer program), which, combined, have provided
more employment options.

Also, farm workers’ children who had studied as a result of the free public education
program find better employment opportunities. And low income from sugar as a result of low
yield and the high cost of production prevents planters from paying competitive wages.
To increase yields per hectare, farm mechanization from planting to harvesting is the dominant
need. But it is a complex shift as, (a) farm lots are small (5 ha is the minimum); (b) many farms
suffer poor drainage, while those in hilly/sloping areas easily suffer dry soil conditions and,
consequently, low yields; and (c) canes are planted in rows less than 1.5 meters apart, which is
too narrow.

For combine harvesters to be efficient, yields should be 80 tons per hectare and above, as
these machines are energy-intensive to operate and farms should be relandscaped. These
machines also have to be redesigned to suit local conditions.
The most recent threat is the proposed liberalization of sugar imports. Cheaply produced sugar
by more efficient and high sugar-yielding countries like Australia, Brazil and Thailand will flood
the domestic market, displacing workers. For every 3 tons of sugar produced, one worker is
directly employed and  about seven  are indirectly employed.
To meet competition, we have to improve the recovery rates of the mills; this requires
sufficient quantity and good-quality sugarcane to process. For instance, an upgraded sugar
factory spending P1 billion has to mill an additional 800,000 metric tons of cane to repay the
loan and make a reasonable profit. Higher recovery rates mean higher earnings for farmers, so
they will be able to repay  loans incurred to increase sugarcane yields. For every P1  invested to
upgrade the sugar mill, the farmers have to invest P2 to increase sugar cane yields.

It is estimated that by 2050, our population will be 182 million. Sugar consumption will be
about  4 million tons (1.8 times more than our current demand of 2.2 million tons). In the long
term, domestic sugar demand will pose the greatest challenge. We need to increase sugarcane
yields per hectare and sugar recovery in the sugar mills. Otherwise, the increased demand will be
filled by sugar imports, or by alternative sweeteners (high-fructose corn syrup, aspartame),
which have been reported to lead to health impairments (allergies and other serious illnesses like
cancer) and will certainly cause unemployment.
Teodoro C. Mendoza is currently a full professor (PhD in agronomy) at the Institute of Crop
Sciences, College of Agriculture and Food Sciences, University of the Philippines Los Baños. He
has been teaching and doing research on various aspects of sugar production for about four
decades now, published many papers and done technical advisory jobs here and abroad.

It is my honor to stand in front of you today to make a case for the sugarcane industry. For me, the
challenge at hand is personal because I am a true blooded sugarcane farmer. It is also a challenge of the
industry because I realized that as Administrator I play a very important part for this industry.

Last June, I was invited to speak at the Asia Pacific Sugar Conference on the topic: The  Philippines: A
Structural Exporter? That topic clearly suggests how the international community view our industry – a
question mark!. But on the positive note, that also suggests that there is a future for our industry.

Thus, I believe that this is a great opportunity for me to share with you some important  facts and insights
on the Philippine Sugarcane Industry, including our plans for the years ahead. After my presentation, I
hope that I would have aptly answered the title of my presentation.

The years ahead are critical, and offer great opportunities and challenges to the Philippine Sugarcane
Industry. Foremost is the fact that the tariff on imported sugar under the ATIGA is now 28%, starting
January 2012. This will continue to decline annually until January 2015, when it shall be no more than
5%. With cost of production a little higher than our neighbouring competitors, the possible entry of
cheaper imported sugar to service the needs of 96 million Filipinos is considered a threat by the country’s
sugar producers.

My presentation will cover four major topics: 1) basic information about the Philippine Sugarcane Industry;
2) the Industry Roadmap; 3) the Industry challenges; and 3) the Opportunities ahead.

The Philippines Sugarcane Industry contributes no less than P70 Billion to our economy annually. Out of
the total land area of about 30 million hectares, sugarcane is planted toabout 422,500 hectares in the
Philippines, with about 62,000 farmers. There are 29 operating raw mills with combined crushing capacity
of 185,000 metric ton cane per day.

There are 14 refineries with combined capacityw of 8,000 metric tons refined sugar perday, all operating
adjunct to the raw mill. In terms of ethanol, there are only 4 bioethanol distilleries, with total annual rated
capacity of 133 million liters.

Geographically, there are 7 sugar mills and 1 distillery in Luzon, 4 sugar mills in Mindanao, and the rest
are located in the Visayas region, which produces about 65% of the country’s sugar output. The biggest
sugarcane hectarage is in the Visayas, particularly in Negros island, followed by the fast-growing area of
Mindanao.

In terms of farm sizes, 75% of farms have sizes less than 5 hectares and another 11% have sizes of 5 to
10 hectares. Of the remaining farms, 11% have sizes 10 to 50 hectares and a mere 2% have sizes 50 to
100 hectares, while only 1% with a size of over 100 hectares.

In terms of total area covered, the small farms of 10 hectares and below cover about 36%, and the big
farms of 50 hectares and above cover about 34%, while the farms of sizes 10 to 50 hectares take up the
remaining 30%. Area planted to sugarcane for the past decade have practically maintained at about
390,000 hectares, with annual changes primarily due to local prices. But the recent years have seen an
increase when local prices breached the 1,000 peso per bag level, ($0.23/pound). In addition, the biofuels
law which mandated the blending of bioethanol have encouraged expansion as new fields are cultivated.

The apparent stable hectarage is reflected in the sugarcane harvested and sugar produced. Except in the
past 3 crop years, national production for the past decade have had no significant changes. Production
has been a cycle of up and down as the country pursued a strategy of maintaining sugar self-reliance and
discouraging exports, because of perceived low world market prices. Productivity in terms of tonne cane
harvested per hectare – averaging at about 60 tons per hectare – and sugar produced per hectare at an
average of less than 6 tons per hectare, also tell a similar story. But please note that the variation in
yearly production is also largely affected by weather, which have shifted from the pattern of past years.

Sugar produced in the Philippines in the last decade, at least until year 2010, has beenalmost entirely for
the domestic market and the US quota. In the last couple of years – buoyed by high production – the
Philippines began exporting sugar to the world with a volume of more than 300,000 metric tons and
another 300,000 metric tons last crop year. This brought the Philippines back into the global sugar trade
map. Over the last four years, the Philippines studied the factors that affect sugar prices. Maybe, the
threat of tariff-free trade with ASEAN has been the impetus that enabled the country to draw effective
strategies for global competitiveness. As a result, the last three crop years saw better composite prices
for Philippine sugar – much better in comparison to the prices of ten years prior.

From sugar, let’s now look at bioethanol and power cogeneration. In year 2006, the Philippines enacted
the Biofuels Law. This law mandated the blending of bioethanol into gasoline sold in the country. The
blending started as voluntary but is now mandatory at 10% bioethanol. For year 2012, this translates to
486 million liters of ethanol requirement. But with our 4 operational distilleries, we project to produce only
133 million liters, or a deficit of about 80%, which we source from imports.

Another area that we are closely studying is power generation. The Philippines generated about 68,000
GWh in the year 2010, with the largest coming from coal plants and only about 288 GWh from biomass
plants. We see this as an opportunity as we join the rest of the world for “greener” power sources. With
the feed-in-tariff for biomass pegged at P6.63 per Kilowatt-hour, we hope that most of the sugar mills, if
not all, will sell power as a new revenue stream for the industry.

 
So, where are we going? To answer this, we have drawn up a roadmap of development. The roadmap of
the Philippine sugarcane industry mirrors the development in other sugar producing countries. From
producing only sugar, the industry now looks at sugarcane as its main product. Sugarcane can produce
many other products, not only sugar. For the Philippines, we want to start the diversification towards the
logical products of ethanol and power.

We plan to increase area planted to sugarcane to about 465,000 hectares in the year  2015. This will
solidify our status as a net exporter of sugar. We shall be self-reliant and will continue to service our US
commitment, as well as becoming a stable supplier to other countries. This increased area is also
targeted to produce bioethanol, addressing about 57% of our local needs.

Simultaneous with our efforts to increase area, we plan to increase our productivity at manageable cost of
production. And hopefully, we would be successful in maintaining our cost at less than 20 cents per
pound. And as we bravely face the years ahead, we have identified four major challenges which I shall
separately discuss.

The first challenge for the Philippine sugarcane industry is the reduction in tariff of imported sugar which
was 38% last year, 28% this year, 18% next January, 10% in January 2014 and down to 5% in January
2015. The Philippine sugar market is driven by market forces. There are producers of varying sizes;
millers of varying market influence including millers who are also traders; and traders ranging from small
local operators to big multinational players. This reality brings to fore a certain degree of weakness to
compete in the fast changing atmosphere of world trade, where size matters.

The sizes of Philippine farm, as presented in the previous slides, show a large portion of small-sized
family-operated farms. This fragmentation of farm holdings is largely because of the agrarian reform
program adopted by the Philippine government. This has lead to decreased productivity which is inherent
in small sized farms. Small farmers usually do not have the financial capability to cultivate their farms to
the fullest potential. Coupled with previous lack of government support to infrastructure, the small farmer
will not be able to take advantage of economies of scale. Thus, the SRA, the DA, and the DAR has
implemented the block farming program whereby consolidation of small farms into an aggregate area of
30-50 hectares is pursued. The block farms will be operated as agribusiness ventures taking advantage
of efficient tractor operations, volume purchases and sales, technical assistance for better farming
practices, crop loans, and other services that will improve farmer income. Along this line, we are
encouraging businessmen to develop service companies that will provide farming services.

On the mill side, most sugar mills have begun gearing up to improve their efficiencies to be competitive in
the world. Overall recovery has been quite low with modest improvements over the past decade. All
financial assistance have been provided by private institutions., including BDO which have substantially
invested in our industry. Thus, the proposed Sugarcane Development Act must be enacted into laws to
provide comprehensive assistance to the industry. In addition, the Philippines is using a quedanning
system in milling sugarcane. This system gives the growers 70% of the sugar and molasses produced.
Translated to investments, the mill which will spend for mill improvement will recover investments at a
longer time because it can only get 30% from its output. This has deterred higher investments for mills,
most of whom are still profitable at their present state.
 

The last challenge is on the implementation of the Biofuels Law and the Renewable  Energy Law, because
of the obvious fact the bioethanol will come from sugarcane either from molasses or direct from cane
juice, and energy will come from bagasse and cane trash. The Biofuels Law mandates that all locally-
produced bioethanol will have to be bought by oil companies prior to using imported ethanol. While
already in place, we still have to be very vigilant to ensure that this emerging industry will grow to maturity
faster than it is now. The Philippines is committed to support – short of saying protect – the bioethanol
industry.

On the area of renewable energy generation, most of the sugar mills are prepared to  supply electricity to
the grid. Their corporate plans have included the improvement of boilers and purchase of turbo
generators. With the FIT already out, as I said at P6.63 per Kilowatt-hour, there is now greater incentive
for mills to pursue their diversification plans.

Having described the present situation of the Philippines Sugarcane Industry and the challenges it faces,
let us now look at some of the opportunities. And as I put on my hat as market officer of the industry, let
me say that we need your assistance. We need the funds to translate our opportunities into on-going
business concerns.

First, the expansion of sugarcane areas is needed to produce enough sugar and bioethanol. Most of the
existing sugar mills have underutilized milling capacities as our data shows only 68-80% utilization. This
needs investments, and improved technologies in growing sugarcane. At the same time, we must be
globally competitive in terms of productivity and cost. In concrete terms, we must increase our national
productivity to 70 tons cane per hectare and sugar recovery of 2.1 bags per ton cane or roughly 150 bags
per hectare. At the same time, we must manage our cost to about P70,000 to P80,000 per hectare or
about P850 per bag of raw sugar. At 5% tariff on imported sugar by year 2015, this competitiveness is
imperative to support a stable domestic market, which has for years been selling sugar higher than world
market prices. All our productivity improvement programs need funds and most of our farmers and millers
will surely look towards the direction of the banking community for help.

Second, for bioethanol production, the Philippines need to have 13 distilleries with annual capacity of 30
million liters to meet the mandated blend of 10%. For this, the purchase of locally-produced bioethanol is
guaranteed, and the investors are given incentives such as tax holidays and other benefits. In the Global
Ethanol Focus held this month in Bangkok, the Philippines is considered a model for implementing the
biofuel program because of its implementation of the blending mandate. This has made our country the
biggest importer of bioethanol in Asia, and pricing of bioethanol in this region is based on CFR Subic!
Thus, increasing our production capacity will be a viable business opportunity within the next decade and
beyond.

Third, existing power generation capacity of Philippine sugar mills is about 200 MW, which is used only
for crushing sugarcane and producing sugar. Given a favorable investment environment, we believe that
the FIT of P6.63 per Kilowatt-hour will bring improvements in the boiler and turbogenerators that can add
up to 400 MW capacity, which in turn can be sold to the electric grid.

Fourth, there is a natural pressure for farm mechanization. While the country has a high population
growth rate, there is a decline in the number of laborers joining the force in the sugarcane industry
especially in planting, cultivating, and harvesting. This is primarily due to the natural preference of the
younger generation to shy away from labor-intensive jobs. Thus, the sugarcane farms will just need to
mechanize. And we need all the technological help from companies and countries with this capacity.
We shall continue to take the stance that our domestic market will prefer our local sugar; that we are able
to service our US sugar quota; that we are open to bilateral sugar supply agreement with other countries;
that we can provide all the bioethanol needed for blending with our gasoline requirement; that we can
increase the profitability of our sugar mills and ethanol distilleries by selling power to the electric grid; and
that we can openly compete in the global trade of sugar.

I will close by telling you that in all occasions that we deliver this presentation we have always been asked
where shall we get the funds to finance our programs. And we always answer that it will come from the
private sector. To many foreigners, that will not work, because to them, the business model should be that
which is led by government. But we are Pinoy and as we see it, we can do this by partnership. With your
help, and with the prospects of enacting the Sugarcane Development Act, I am very sure that we can tap
the PPP (public private partnership) model to bring about the needed competitiveness!

BOI APPROVES PHP490M SUGAR PLANT IN NEGROS

ORIENTAL
The Philippine Board of Investments (BOI) recently approved the Php490 million sugar
mill plant of HDJ Bayawan Agri-venture Corp. (HBAC). The project qualified in the 2017
Investment Priorities Plan (IPP) under the manufacturing activities agro-processing
category.

The sugar mill plant is located in a five-hectare area in Barangay Bugay, Bayawan City,
Negros Oriental. It is scheduled to produce 427,050 50-kilogram bags (LKG) of raw
sugar annually and 7,665 metric tons per year (MTPY) of molasses (its by-product).
With 151 personnel, the plant has started operating commercially this month.

Trade Undersecretary for Industry Development and BOI Managing Head Ceferino
Rodolfo said the new plant, being first in many years will address the needs of
Department of Agrarian Reform (DAR) beneficiaries and other small sugarcane farmers
located within the 15 kilometer radius of the plant.

“The establishment of the new sugar mill plant will dramatically reduce the cost of
transporting sugarcane among farmers within the area by as much as Php600 per ton.
Farmers will now have greater flexibility on where to send their sugarcanes for milling,”
Undersecretary Rodolfo said.

Previously, the nearest existing sugar mill sites are in Sta. Catalina, Bai City and
Kabankalan City which are 50 kilometers away and the cost of transporting sugarcane
to these sites is around Php650 per ton.

Sugar is the generic name for sweet, soluble carbohydrates, many of which are used in
food. There are various types of sugar derived from different sources. Simple sugars
are called monosaccharides and include glucose (also known as dextrose), fructose,
and galactose. The most widely used sugar which is used in a wide variety of foods is
sucrose, commonly known as “table sugar” or “granulated sugar.”

To make molasses, sugar cane is harvested and stripped of leaves. Its juice is
extracted, usually by cutting, crushing, or mashing. The juice is then boiled to
concentrate it, promoting sugar crystallization. The result of this first boiling is called
syrup and has the highest sugar content.  Molasses is created from a second boiling
and sugar extraction and has a slightly bitter taste. Sugar by-products such as molasses
are commonly used to make rum and are also used to make ethanol for fuel.

National production of sugarcane for July-September 2017 increased by 63.5 percent to

783,370 MT compared to 479,000 MT in the same period last year, according to figures
from the Sugar Regulatory Administration and Philippine Statistics Authority. Western
Visayas which includes Negros Oriental and Occidental produced over half of the
national output with 54.4 percent.

Overall, the country’s sugar output has reached 2.5 million metric tons (MMT) as of
August 2017, surpassing the production target for the current crop year 2016-2017. It is
already the highest recorded figure in 40 years (since 1976-1977).

SRA also data showed that the total sugarcane areas reached 419,207 hectares, higher
than the 411,502 hectares in the previous crop year. The sugar industry has around
700,000 workers in 19 sugar-producing provinces in the country, according to the
Department of Labor and Employment.  (END)

https://www.dnb.com/business-directory/company-
information.sugar_and_confectionery_product_manufacturing.ph.html

LOCATION

SALES REVENUE ($M)

UNIVERSAL ROBINA CORPORATION
Quezon, Manila,
Philippines
FILINVEST DEVELOPMENT CORPORATION
Taguig, Manila,
Philippines
$1,256.91M
SAN MIGUEL CORP-AGRIBUSINESS DIVISION
Makati, Manila,
Philippines
ROXAS HOLDINGS, INC.
Taguig   City, Manila,
Philippines
$91.55M
CENTRAL AZUCARERA DON PEDRO, INC.
Taguig, Manila,
Philippines
COMMONWEALTH FOODS, INC.
Makati, Manila,
Philippines
BISCOM, INC.
Makati, Manila,
Philippines
COLUMBIA INTERNATIONAL FOOD PRODUCTS, INC.
Navotas, Manila,
Philippines
LINKAGE FOODS VENTURE CORPORATION
Pasig, Manila,
Philippines
GOLDEN LOAF INC
Quezon, Manila,
Philippines
HAWAIIAN-PHILIPPINE COMPANY
Makati, Manila,
Philippines
CENTRAL AZUCARERA DE TARLAC, INC.
Makati, Manila,
Philippines
$30.06M
MA-AO SUGAR CENTRAL CO INC
Quezon, Manila,
Philippines
JHAM FOODS INCORPORATED
Manila, Manila,
Philippines
HAWAIIAN-PHILIPPINE COMPANY
Makati, Manila,
Philippines
SAM LIM CORPORATION
Valenzuela, Manila,
Philippines
CENTRAL AZUCARERA DE SAN ANTONIO, INC.
Makati, Manila,
Philippines
DAVAO SUGAR CENTRAL COMPANY, INC.
Mandaluyong, Manila,
Philippines
CENTRAL AZUCARERA DE BAIS, INC.
Makati, Manila,
Philippines
STATELINE SNACK FOOD CORPORATION
Caloocan   City, Manila,
Philippines
ROXAS AND COMPANY, INC.
Makati, Manila,
Philippines
$10.35M
RUDY & LINDA FOOD PRODUCTS
Marikina, Manila,
Philippines
DELICATESSE FOOD CORPORATION
Taguig, Manila,
Philippines
THE CANDYMAKER INCORPORATED
Pasig, Manila,
Philippines
SUMMIT FOODS CORP
Pasig, Manila,
Philippines
TURNBERRY INGREDIENTS CORP.
San   Juan   City, Manila,
Philippines
ISLAND BISCUIT, INC
Caloocan   City, Manila,
Philippines
BATANGAS SUGAR CENTRAL, INC.
Makati, Manila,
Philippines
YAN YAN INTERNATIONAL PHILIPPINES, INC.
Caloocan   City, Manila,
Philippines
CHOCOLATE FIRE MANUFACTURING AUSTRALIA INC.
Mandaluyong, Manila,
Philippines
BACOLOD-MURCIA MILLING CO., INC.
Quezon, Manila,
Philippines
PALMAM-ORO CO. LTD.
Quezon, Manila,
Philippines
SUGAR KING FOOD INDUSTRIES INC.
Valenzuela, Manila,
Philippines
STELLARIFIC CONFECTIONS INC.
Quezon, Manila,
Philippines
PHILIPPINE GUM PASTE, INC.
Quezon   City, Manila,
Philippines
CHOCOLATE CONFECTIONS ENTERPRISE
Muntinlupa, Manila,
Philippines
RESTOSERVE MARKETING CORP
Marikina, Manila,
Philippines
MARANTCH MARKETING CORPORATION
Pasig, Manila,
Philippines
SEANLUC INC.
Valenzuela, Manila,
Philippines
CHEF TONY'S GLOBAL TRADE COMPANY
Quezon, Manila,
Philippines
T.P. FOOD PROCESSING CORPORATION
Taguig, Manila,
Philippines
UNITRADE INDUSTRIAL MANUFACTURING CORPORATION
Quezon, Manila,
Philippines
OFFSHORE TRADE HOUSE, INC
Paranaque, Manila,
Philippines
RACKEY CRYSTAL TOP CORPORATION
Valenzuela, Manila,
Philippines
DELMAX CORPORATION
Manila, Manila,
Philippines
NATION CONFECTIONERY, INC.
Valenzuela, Manila,
Philippines
KSK FOOD PRODUCTS
Valenzuela, Manila,
Philippines
FIRST FARMERS HOLDING CORPORATION
Makati, Manila,
Philippines
UNIVERSAL ROBINA CORPORATION
Pasig, Manila,
Philippines
UNIVERSAL ROBINA CORPORATION
Pasig, Manila,
Philippines
 
LOCATION
SALES REVENUE ($M)
UNIVERSAL ROBINA CORPORATION
Pasig, Manila,
Philippines
UNIVERSAL ROBINA CORPORATION
Quezon, Manila,
Philippines
PEMPEYO INTERNATIONAL FOODS INC.
Manila, Manila,
Philippines
PEMPEYO INTERNATIONAL FOODS INC.
Mandaluyong, Manila,
Philippines
PEMPEYO INTERNATIONAL FOODS INC.
Taguig, Manila,
Philippines
PEMPEYO INTERNATIONAL FOODS INC.
Quezon, Manila,
Philippines
PEMPEYO INTERNATIONAL FOODS INC.
Las   Pinas, Manila,
Philippines
PEMPEYO INTERNATIONAL FOODS INC.
Quezon, Manila,
Philippines
PEMPEYO INTERNATIONAL FOODS INC.
Las   Pinas, Manila,
Philippines
PEMPEYO INTERNATIONAL FOODS INC.
Quezon, Manila,
Philippines
PEMPEYO INTERNATIONAL FOODS INC.
Mandaluyong, Manila,
Philippines
FILIPINAS ORO DE CACAO, INC.
Makati, Manila,
Philippines

 
LOCATION
SALES REVENUE ($M)
KENNEMER FOODS INTERNATIONAL, INC.
Davao   City, Davao   Del   Sur,
Philippines
J AGRO TRADERS CORP.
Davao   City, Davao   Del   Sur,
Philippines
CHOCOLOCO INC.
Davao   City, Davao   Del   Sur,
Philippines
MALAGOS AGRI-VENTURES CORPORATION
Davao   City, Davao   Del   Sur,
Philippines
FILIPINAS ORO DE CACAO, INC.
Davao   City, Davao   Del   Sur,
Philippines

LOCATION
SALES REVENUE ($M)
BUSCO SUGAR MILLING COMPANY INC.
Quezon, Bukidnon,
Philippines
CRYSTAL SUGAR COMPANY, INC.
Maramag, Bukidnon,
Philippines

LOCATION
SALES REVENUE ($M)
VICTORIAS MILLING COMPANY, INC.
Victorias, Negros   Occidental,
Philippines
$141.51M
LOPEZ SUGAR CORPORATION
Sagay, Negros   Occidental,
Philippines
CENTRAL AZUCARERA DE LA CARLOTA, INC.
La   Carlota   City, Negros   Occidental,
Philippines
SAN CARLOS MILLING CO INC
San   Carlos, Negros   Occidental,
Philippines
HAWAIIAN-PHILIPPINE COMPANY
Silay   City, Negros   Occidental,
Philippines
FIRST FARMERS HOLDING CORPORATION
Talisay, Negros   Occidental,
Philippines
VICTORIAS FOODS CORPORATION
Victorias, Negros   Occidental,
Philippines
ALTERTRADE PHILIPPINES INC.
Bacolod, Negros   Occidental,
Philippines

LOCATION
SALES REVENUE ($M)
LTHFOOD INDUSTRIES INC.
Mandaue   City, Cebu,
Philippines
BOGO-MEDELLIN MILLING CO., INC.
Medellin, Cebu,
Philippines
$3.66M
EUBASEVILLA TECHNOLOGY INC.
Cebu   City, Cebu,
Philippines
SUGARDADDY SWEETS
Mandaue   City, Cebu,
Philippines
ARGAO GUILANG TABLEYA MANUFACTURING
Argao, Cebu,
Philippines

Sugar industry and the Philippine economy[edit]

Loading sugar cane in Bais, Negros.

Annual production of sugar contributes about 69.7 billion pesos to the national GDP with Value
Added Tax (VAT) on the sale of refined sugar reaching over 1.92 billion pesos yearly. Sugar is
primarily produced in Western Visayas, as well as in Central Luzon, and some parts of Mindanao. As
of Crop Year 2007-08, the province of Negros Occidental accounted for 54% of sugar produced and
accounted for 18 billion pesos of Negros' GDP.[18]
It is estimated that as of 2012, the industry provides direct employment to 700,000 sugarcane
workers spread across 19 sugar producing provinces. [19]
In 1998 alone, investments to sugar industry have amounted to 20 billion pesos, according to the
Board of Investments. These investments are private sector secured, sourced and funded, without
cost or security from government.
Sugar industry has a social component, benefiting sugarcane workers. Through the Social
Amelioration Fund (SAF), a lien is imposed on the volume of sugar produced. This fund is
shouldered by sugar planters and millers and collected by the Bureau of Rural Workers. The benefits
for the sugarcane workers under the lien include cash bonus, death benefit, maternity benefit,
educational grant and livelihood projects.
The sugar industry funds its own research, development and extension programs through
the Philippine Sugar Research Institute Foundation, Inc. (PHILSURIN) with aim to develop high
yielding cane varieties. The Philippine government, through SRA, provides the extension efforts in
partnerships with the Mill District Development Councils (MDDC). PHILSURIN assists this initiative
through the hiring of Mill District Coordinators and financial support to many programs of the MDDC.
[20]

The sugar industry is in alternative energy sources which

include biofuel through bioethanol production and co-generation activities.[

Sub-sectors[edit]
The sugar industry has two major sub-sectors: the farming sub-sector and the milling sub-sector.
Farming sub-sector[edit]

Sugar production in the Philippines

There are at least 11 regions/19 provinces that produce sugarcane in the nation. A range from
360,000 to 390,000 hectares are devoted to sugarcane production. The largest sugarcane areas are
found in the Negros Island Region, which accounts for 51% of sugarcane areas planted. This is
followed by Mindanao which accounts for 20%; Luzon by 17%; Panay by 07%; and Eastern
Visayas by 04%. It is estimated that as of 2012, the industry provides direct employment to 700,000
sugarcane workers spread across 19 sugar-producing provinces. [2

Milling sub-sector[edit]

Central Azucarera de Tarlac

As of Crop Year 2012-2013, 29 mills are operational divided as follows: 13 mills in Negros, 6 mills in
Luzon, 4 mills in Panay, 3 mills in Eastern Visayas and 3 mills in Mindanao. [3]
Trucks delivery of sugarcane

Negros (13 mills)

 Aidsisa
 URC Ursumco (Bais)
 CAB -Bais
 Biscom
 Dacongcogon
 First Farmers
 Hawaiian-Philippines
 La Carlota
 Lopez
 Ragasa F.C.
 Sagay
 URC Sonedco (Kabankalan)
 URC Tolong (Caranoche)
 Victorias
Luzon (6 mills)

 URC Carsumco (Piat, Cagayan)

 Sweet Crystals Integrated Sugar Mills (Pampanga)
 Central Azucarera de Tarlac (Tarlac)
 Balayan Sugar Central Incorporated (Balayan, Batangas)
 Central Azucarera Don Pedro (Nasugbu, Batangas)
 Peñafrancia Sugar Mill (Peñafrancia, Camarines Sur)
Panay (4 mills)

 URC Passi (Iloilo)

 Santos Lopez
 Monomer
 Capiz Sugar Central, Inc. (President Roxas, Capiz)
Eastern Visayas (3 mills)

 Bogo-Medellin
 Durano
 Kananga Sugar Mill (Ormoc, Leyte)
Mindanao (4 mills)

 Bukidnon Sugar Company

 Crystal (Maramag, Bukidnon)
 Davao Sugar Central Company (Hagonoy, Davao del Sur)
 Cotabato Sugar Central Company (Matalam, North Cotabato)