This is the Best Time to Invest in Sugarcane Production — The best time to invest in sugarcane production is now. According to Leon Arceo, the executive director of the Philippine Sugar Research Institute (Philsurin), if you have accessible land and the money, you better invest in sugarcane production, especially if there is an accessible sugar mill where you can take your harvest for milling.
Sugar is in short supply worldwide and the price has increased tremendously. For instance, one pound of sugar used to sell for 8 US cents in Europe for several years. Now the price is 28 US cents. In the US, the price is 33 cents per pound. Since sugarcane is a one-year crop, the shortage will not be easily solved. At least in the next two years, high prices are expected to stay.
The big shortage in the world market is due to the shortfall in production in India and Brazil. In India alone, the production decreased by 7 million metric tons last crop season.
Brazil had much lower output because of too much rain that rendered the canes too watery. Also ethanol production could have reduced sugar production.
Fortunately, there is no sugar shortage in the Philippines. If the local prices are going up, it is because the local producers are basing their price on the prices obtaining in the world market.
Historically, he said, the domestic consumption is about 2 million metric tons. The local production in the crop year 2008-2009 was 2.19 million metric tons. On the other hand, the 2009-2010 crop is expected to be higher by less than 10 percent.
At present, the local stocks are enough to meet the local requirements as well as the US quota of 142,000 metric tons.
According to Arceo, there is a possibility that the US will increase its quota from the Philippines because its own sugar production has suffered due to frost in Florida where they are planting sugar beet for sugar production.
Source: Manila Bulletin