Sugar production at 2.23 million MT

LATEST report from the Sugar Regulatory Administration (SRA) furnished by SRA chief Gina Martin indicates that total raw sugar production has reached 2,235,055.39 metric tons as of June 17.

The 2.23 MMT output represents 99.69% to the projected production of 2.242 MMT for Crop Year 2011-2012 which ends August 31.

To date, only two Sagay mills are still operating, with Lopez set to stop milling this Sunday, July 8, and OPTION MPC scheduled to finish its campaign by the end of this month.

SRA said sugar yield in terms of LKg/TC improved by 4.12% compared with the same period last crop year but, in terms of tonnage, the current crop is down by 8.17% compared tonnage with the same period last year.

Balances for raw and refined sugars are within the comfortable levels, enough to bring us to the next crop year, SRA assures consumers.

Despite assurance of sufficient stock balances, SRA has noted that retail prices spiked a bit. This is not due to limited stocks but more of a market reaction to the end of the crushing season, according to SRA.

For the 2012-2013 season, sugar production is expected to increase, but not by double figure percentages.

In the global scene, Switzerland-based broker and researcher Kingsman SA projects a global surplus of 9.3 MMT for the coming crop year which starts October. This is a bit lower that the 10.2 MMT surplus for the current season, according to Kingsman’s estimates.

However, Brazilian producer Sopersucar SA believes that the possibility of an El Niño, which brings rain to Brazil’s sugarcane growing areas but inflicts dry weather in India, might erode the global surplus.

“If the forecasts for El Niño are confirmed, we will have a rainy year here and that may have some impact in the availability of Brazilian product,” said Copersucar chairman Luis Roberto Pogetti, as reported in Bloomberg last week.

“El Niño also brings drought to India and the two impacts will help reduce the surplus the world is expecting,” Pogetti added.

Brazil is the world’s largest sugar producer and exporter. While India is the second largest producer, it cannot export as much of the sweetener as Brazil because Indian demand for sugar sometimes eats up all of its production. Thailand is the second-biggest exporter next to Brazil.

As we always say, pa-weather-weather man lang ni.

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CHILDREN OF THE CANES III: Bacolod City will play host next week to a national convention which will once again bring focus on child labor in sugarcane farms.

The industry has always pointed out that it is against the hiring of children for any kind of work in the sugar farms. However, this practice still exists, mainly among children of agrarian reform beneficiaries who help their parents in the farm so as to save on labor cost.

If government and the private sector can work hand-in-hand to ensure that the ARBs get the appropriate technical, financial and infrastructure support for their farming ventures and that their children get the education which is their birthright, then we can solve the problems of farm productivity and child labor in one stroke.

Next week’s summit is spearheaded by the Laura Vicuña Foundation (LVF) in partnership with DILG, sugar industry stakeholders and other civil society groups.

DILG Sec. Jesse Robredo has already confirmed his attendance, said LVF Executive Director St. Maria Victoria P. Sta. Ana, FMA.

LVF is a non-stock, non-profit NGO which has been active in its advocacy for the welfare of street children, abused and exploited young girls, and kids trapped in child labor. Thus, addressing child labor in sugarcane areas is right up its alley.

Dubbed as “Children of the Canes III: A National Conference for th Protection and Development of Children in the Sugar Industry”, the event will be held at L ‘Fisher Hotel on July 12 to 13.

Its main objective is to intensify grassroots participation in building a culture of social protection for children in the sugar industry.

For more details about the event, you may contact the LVF staff at (0915) 220-8932 or email lauravicuna@yahoo.com.

(For reactions and suggestions, email bbacaoco@yahoo.com.)