Sugarcane overview on Philippine economy an export crop

A Research Paper for

AECO 111

By

Immanuel T. Lalo

UV 2L

College of Agriculture and Food Sciences

2014-32417
 Vol. of Production
25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

0
1990 1995 2000 2005

Price Area Planted/Harvested

40 500,000

30 400,000
300,000
20
200,000
10 100,000
0 0
1990 1995 2000 2005 2010 2015 1990 1995 2000 2005 2010 2015

The general trend for these time series devoted to data on volume of production, area
planted/harvested, and price per unit of sugarcane are increasing through time and is expected to
do so in the future (PSA). In 2005, the Philippines became and still is the 9th largest sugar
producer in the world; and for that milestone, the Philippine sugar products became well known
and highly sought for by other countries that due to its increasing demand, price doubled,
benefitting the country. A reason for the high amount of supply and focus of the Philippines to
the sugar industry is that it has export quotas to meet for the U.S. and also, the byproducts of the
sugarcane are also used as a renewable source of energy (WorldAtlas, 2016).
 Regional data on volume, area, and yield

Negros Region
Mindanao Region
Luzon Region
Panay Region
Visayan Regions

http://www.sra.gov.ph

Historically, as to why Negros Region has the most contribution on the sugar industry,
the Spaniards has been using he sugar industry in the Philippines as a means for increasing the
revenues through trading especially in Galleon trade and with the United States. Since the
Negros region was once virgin land, which is cheap to acquire, the government have been using
the lands of Negros as the main production area for the sugar industry; constructed 47, now 25,
sugar mills in the province. From then on, the sugar industry became highly cared for as it was
one of the highest contributors to the gross national income of the country. Negros has also
become the land of opportunity for the sugar industry because the climatic conditions of the
province suits well to the requirements of sugarcane crops; a long, warm growing season with a
high intensity of light, a regular and moderate rainfall cycle, and an averaged well-drained loamy
soil due to the island-province surrounded by a lot of water sources (NETAFIM).
 On export production of sugarcane from the Philippines

Date Value of exports Major destinations

1995 88,802,683
2000 91,830,203
2005 110,858,194
2010 105,058,593 Japan, US, China, Singapore,
2011 448,242,448 HK
2012 209,839,388
2013 345,828,782
2014 184,695,562
psa.gov.ph

The highest importers of the countrys goods are Japan (20.9%) and US (15.3%). Japan is
most high mainly due to the fact that japan doesnt have much arable land for sugar production
so they resort in importing from the Philippines quality goods. US is the second importer of the
countrys products due to history and contractual quotas to meet. China on the side note, uses
most of its available lands for industrial purposes and although its country is large, not much
portion of it has the ability to cultivate sugarcane crops. Singapore and Hong Kong on the other
hand, has very small land area that most of its resources come from outside resources.

Value of exports trend started to increase during the 1990s after the war, where much of
Philippines plantations and sugar mills have been destroyed, were started to be reconstructed
along with the revival of the sugar industry of the country. The value of export of sugarcane
reached its peak value of export during year 2011 where, with the governments decree, much of
Philippines lands opted to produce sugarcane to export around the world, naming US, Japan,
and China as main importers of the processed sugar products from the country; however, during
2011, as much of the demand lessened and contracts fulfilled as supply have been ample with
which affected the trend to come to be decreasing after reaching its peak value export.

While much of Philippines agricultural lands are being converted and sugarcane industry
are getting less popular among the farmers due to its labor costs and decreasing demand, the
value of export of sugarcane is expected to rise again due to demand of the growing global
population after a time with which the Philippine government and farmers are expected to
comply and provide the needed support and supply.

REFERENCES:

PSA (2015). Crop economy. Taken from http://countrystat.psa.gov.ph/ on Feb 8, 2017

WorldAtlas (March 4, 2016). Top Sugarcane Producing Countries. Taken from

http://www.worldatlas.com/articles/top-sugarcane-producing-countries.html on Feb 8,
2017

SRA (March, 2016). OVERVIEW OF THE SUGARCANE INDUSTRY. Taken from

http://www.sra.gov.ph/wp-content/uploads/2016/03/OVERVIEW-OF-THE-
SUGARCANE-INDUSTRY_21March2016.pdf on Feb 8, 2017

NETAFIM. Requirements of a sugarcane. Taken from http://www.sugarcanecrops.com on

Feb 8,2017

Psa (2015). Foreign trade statistics. Taken from https://psa.gov.ph/content/foreign-trade-

statistics-philippines-2015 on Feb 8, 2017