Soft drink bottlers to study using more sugar instead of corn syrup
AGRICULTURE Secretary Emmanuel F. Piñol said that two major beverage processors, Pepsi Cola Products Philippines, Inc., and Coca-Cola FEMSA Philippines, Inc., have recognized the validity of Sugar Order No. 3 regulating imports of high-fructose corn syrup (HFCS) and have asked to access stocks of exportgrade cane sugar for their 2018 sweetener requirements.
The order authorizes Sugar Regulatory Administration (SRA) to regulate the importation of high fructose corn syrup and other fructose-based chemicals into the Philippines, which Mr. Piñol asserted “is valid and legal.”
“They also agreed to defuse the pressure on sugar… they promised to make advance purchases of sugar for 2018 this time,” said Mr. Piñol during a Thursday briefing in Quezon City.
He said that the beverage processors have a total of 300 container vans of HFCS held at ports which will be released as long as the arrival date of these shipments is not covered by the order.
“They’re supposed to write me this afternoon then I will communicate with Bureau of Customs to allow the release of their imports before the March 10 effectivity of Sugar Order No. 3,” SRA Administrator Anna Rosario V. Paner said in a brief phone interview yesterday.
Sugarcane farmers have raised concerns over HFCS shipped to the Philippines last year, pinpointing this as the main cause of weak sugar prices.
SRA estimates that around 373,000 tons of HFCS were imported into the Philippines last year.
This prompted the SRA to issue last month the contested Sugar Order No. 3.
“But that does not preclude the opportunity and the possibility of amending it to respond to the concerns of the (beverage processing) sector,” Mr. Piñol added.
He said that beverage processors are seeking to access sugar classified as “D” quedans or those allocated for export to the world market which is some P200 lower than domestic sugar which is classified in the “B” category.
“My instruction (to SRA is to) look into the request to access D sugar,” Mr. Piñol added.
Mr. Piñol said that Coca- Cola FEMSA reported to him that HFCS accounts for 90% of its sweetener requirement, with the remainder set aside for cane sugar. The firm is looking into hiking its sugar use to 20% or higher should they be granted access to “D” sugar.
“They agreed to increase even more utilization of sugar provided that (they be given) access to D sugar,” he added.
However, under current rules, “D” sugar is solely intended for export to the world market.
In addition, the company is asking for six months to adjust its processing and manufacturing equipment.
“[Through] the years since it was allowed in 2010 beverage companies have changed their machinery to process corn syrup into soft drinks; now they need to install new machines to convert sugar into syrup,” he added. —