Industry Strategic Science and Technology Plans (ISPs) Platform

Sugarcane Industry Profile

Sugarcane is one of the top five largest crop by value following rice, banana, corn, and coconut.Ā 

The sugarcane industry contributes around PHP 76 billion annually to the Philippine economy. Currently, sugarcane is cultivated in 398,478 hectares, with Negros island accounting for 57 percent; followed by Mindanao with 21 percent; Luzon, 11 percent; Panay, 8 percent; and Eastern Visayas, 3 percent (SRA, 2022).

The Philippines has about 88,000 sugarcane farmers.Ā  Of these, 84 percent have landholdings less than five hectares.Ā  There are 27 operating millers of raw sugarcane with a combined crushing capacity of 200,00 metric tons of cane per day and 12 refineries with a combined capacity of 144,500 bags of refined sugar per day operating at 70% milling capacity. Close to 700,000 Filipinos are directly employed in sugarcane production and it has around 5-6 million more dependents (SRA 2022).

Molasses, which is a byproduct of sugar processing, is the primary feedstock for Philippine bioethanol. The country has currently 13 operating bioethanol distilleries with a combined capacity of 425.5 million liters. On the other hand, bagasse and sugarcane trash are the raw materials of the Biomass power plants of 12 sugar mills and 2 distilleries with a total installed capacity of 366 MW.

Problems in the Industry

Some of the key constraints identified include:Ā 

  • Decline in sugarcane area, particularly in areas outside Negros island that pull down the national average
  • Climate variability: too much drought or too much rain adversely affect production
  • Low cane yield per hectare [56-60 tons cane per hectare (TC/ha)] compared to other sugar producing countries
  • Factors that limit productivity such as (1) soil acidity, (2) low soil organic matter content, (3) soil erosion, (4) limited access to new high yielding varieties, (5) high cost of farm and mill production inputs, (6) inappropriate farm mechanization provision, (7) low mill efficiency

Sugarcane Policies

Data Source: Philippine Statistics Authority. 1990-2022.

Notes:

  • Volume (metric tons)
  • Volume of production of sugarcane in metric tons (MT)
  • Yield of sugarcane production in metric tons (MT)
  • Utilization of sugarcane per capita in thousand metric tons
  • Value of Production at Current Prices in Million PhP
  • Value of Production at Constant 2018 Prices in Million PhP
Ā 
  • Gross Value Added at Current Prices in Million PhP
  • Gross Value Added at Current Prices in Million PhP
  • Gross Supply of sugarcane in metric tons
  • Farmgate price of Sugarcane Centrifugal, sugar in Pesos per kilogram
  • Farmgate price of Sugarcane Musovado, sugar in Pesos per kilogram

ISP for Sugarcane

The PCAARRD Industry Strategic Plan (ISP) on sugarcane aims to enhance global competitiveness by significantly improving key aspects of sugarcane farming. Its objectives include increasing farm productivity from 60 tons of cane per hectare (TC/ha) to 100 TC/ha, reducing chemical fertilizer inputs by 15-25%, and decreasing labor costs by an impressive 70-95%.

Strategic R&D

Strategic R&D is DOST-PCAARRDā€™s banner program comprising all R&D activities that are intended to
generate outputs geared towards maximum economic and social benefits

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Technologies

Products, equipment, and protocols or process innovations developed to improve productivity, efficiency,
quality, and profitability in the agriculture and aquatic industries, and to achieve sustainable
utilization and management of natural resources

Technology Transfer Initiatives

Technology transfer initiatives ensure that the outputs of R&D and innovations are transformed
into viable and applicable technologies that help intended users

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Policy Research & Advocacy

Analysis of policy concerns and advocacy of science-informed policies ensures that the AANR policy environment is conducive for S&T development
and investments
Sugarcane B

Competitiveness of Philippine Sugarcane Industry under the ASEAN Economic Community

Sugarcane production in the Philippines was competitive under export trade and import substitution scenarios. Exporting sugarcane is an excellent opportunity for the country to earn foreign exchange since the Philippines can compete globally. To sustain the countryā€™s competitiveness in sugarcane, yield (80 mt/ha) must not decline by 10 percent, or domestic cost must not increase by 15 percent.

Reference:

LapiƱa, G. F. and Andal, E. T. (2017). ASEAN Economic Community: Opportunities and Challenges for the Crops Sector. Los BaƱos, Laguna, Philippines: Philippine Council for Agriculture, Aquatic and Natural Resources

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