Transcript Document

Presenters:
Jose Rojo G. Alisla
Rosemarie S. Gumera
Sugar Regulatory
Administration
Department of Agriculture
Philippines
Crop Year 2011-2012
Area Planted
420,000 Hectares
No. Farmers
62,000
No. of Operating Sugar Mills
29
-Total Milling Capacity
No. of Operating Sugar Refineries
-Total Refining Capacity
No. of Bioethanol Distilleries
-Total Annual Rated Capacity
185,000 Tons Cane / Day
14
8,000 MT/Day
4
133 million liters
MAP OF PHILIPPINE SUGAR MILLS & BIOETHANOL DISTILLERIES
Legend
CAGAYAN
Bioethanol Distilleries
Sugar mills
Mills with annexed refinery
Major sugar ports
Bioethanol production areas
Bioethanol target areas
CAGAYAN / ISABELA
11,000 HECTARES
Pampanga Bioenergy
TARLAC
N
LUZON
7,000 HECTARES
(7 mills + 4 refineries + 1 distillery)
PAMPANGA
Cavite Biofuels
E
W
Green Future Innovations
7,000 HECTARES
MANILA
CAVITE
BATANGAS
Batangas Sugar
S
MASBATE
PANAY
Canlaon Alcogreen
SAMAR
CAPIZ
Lopez
ILOILO
VISAYAS
(18 mills + 7 refineries
+ 3 distilleries)
Sa
5,000 HECTARES
NEGROS
BOHOL
SAN CARLOS
PALAWAN
5,000 HECTARES
MINDANAO
(4 mills + 3 refineries)
Tolong
NEGROS
ORIENTAL
AGUSAN
DEL NORTE
MISAMIS
OCCIDENTAL
ZAMBOANGA
DEL NORTE
ZAMBOANGA
DEL SUR
MISAMIS
ORIENTAL
LANAO
DEL NORTE
SURIGAO
DEL NORTE
BUKIDNON
NORTH COTABATO
Davao
SOUTH
DAVAO DEL SUR
COTABATO
SURIGAO
DEL SUR
Distribution of Philippine Cane Areas, CY 2011-2012
Luzon
Mindanao
Panay
Eastern Visayas
17,000 has.
Negros
Total Cane Area – 420,000 hectares
24%
12 %
80,000
15 %
15 %
16 %
18 %
100,000
60,000
40,000
20,000
100.01
& above
50.01 100.00
-
25.01 50.00
No. of Farms
Cane Area, Hectares
10.01 25.00
5.01 10.00
Cane Area,…
No. of Farms
0.01 5.00
0
Philippine Sugarcane Areas for the Past 10 Crop Years
Area, Hectares
420,000
410,000
400,000
390,000
420,000
398,872
395,381
392,567
388,003
385,662
391,552
377,182
380,000
370,000
360,000
350,000
Crop Years
391,451
383,745
Philippine Cane & Sugar Production for the Past 10 Crop Years
Million MT
Crop Years
Philippine Farm Productivity for the Past 10 Crop Years
Philippine Sugar Production & Trade for the Past 10 Crop Years
HISTORICAL PHILIPPINE RAW SUGAR COMPOSITE PRICES
Crop Year
Pesos
Per 50-kilo bag
Peso-US $
Exchange Rate
2011-2012*
1,404
43.15
2010-2011
1,864
43.46
2009-2010
1,664
46.21
2008-2009
945
47.93
2007-2008
1,057
43.10
2006-2007
844
48.17
2005-2006
978
53.01
2004-2005
664
55.50
2003-2004
710
55.68
2002-2003
843
53.46
* As of April 2012
USCents/lb
29.58
38.99
32.74
17.92
22.29
15.93
16.77
10.88
11.59
14.34
Bioethanol Production, Liters
Year
TOTAL
Production
(Million Liters)
Mandated
Bioethanol
Blend
Mandated
Volume
(Million Liters)
2008
0.368
Voluntary
None
2009
23.11
5%
208
2010
9.89
5%
219
2011
4.14
10 %
461
2012*
12.00
(estimates as of
May 2012)
10 %
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.
Power Situation in the Philippines
2010 Power Generation by Plant Type, GWh
7,803
288
GWh
Coal
28,043
Geothermal
Oil-based
Hydroelectric
21,678
9,929
Gross Power = 67,743 GWh
Wind / Biomass /
Solar
GWh
55,266
50,867
Total Electricity Sales in the Philippines,
2009 vs. 2010
60,000
50,000
30,000
18,576
1,596
20,000
1,523
17,084
16,261
14,756
18,833
17,504
40,000
10,000
0
2009
2010
2010 Installed and Dependable Capacity, Philippines
MW
Dependable Capacity, MW
8000
1
20
1
39
33 20
3,400
1,350
1,966
638
775
2,861
646
650
1000
3,193
2000
4,867
3000
1,204
4000
1,768
5000
2,756
2,488
6000
3,021
4,245
7000
Installed Capacity, MW
0
Gross Installed Capacity – 19,553 MW
Gross Dependable Capacity – 16,389 MW
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
Sugar Tariff Schedules and Implications
AFTA – CEPT Tariff
Implications:
Schedule:
• Entry of imported sugar would threaten
the livelihood of the 62,000 farmers
2011
- 38 %
2012
- 28 %
2013
- 18 %
2014
- 10 %
2015
-
5 %
and 600,000 workers of the
Philippine sugarcane industry
• Entry of imported sugar will push
downwards the millsite price of locallyproduced sugar
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
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
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
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
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 4.415 yen per kilo and 1,000 MT of muscovado sugar
with an in-quota rate of 17.65 yen per kilo.
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
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
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
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
Website : www.sra.gov.ph
Email :
[email protected]
[email protected]
Tel. No. :
(632) 929-3633
(632) 455-2135