Phl sugar output production to reach 2.4 MMT next year

The local production of sugar is seen to reach 2.4 million metric tons (MT) next year, still slightly lower than this year’s expected output, the United States Department of Agriculture (USDA) said.

According to a report of the USDA Foreign Agricultural Service, production may reach 2.38 million MT next year, five percent lower than the projected 2.5 million MT output this year.

The latest projection, however, is higher than the 2.3 million MT output released in May.

The projection remains consistent with Sugar Regulatory Administration’s sugar production estimate for the crop year ending 2018 of 2.38 million MT and withdrawals at 2.17 million MT.

The USDA attributed the increase in production to the favorable weather in the country.

The forecast of the USDA is based on the US marketing year which starts in December. Philippine crop year for sugar, meanwhile, starts in September.

Likewise, local consumption is expected to increase to 2.25 million MT from 2.2 million MT this year amid higher demand coming from the food and beverage industries.

The USDA said the Philippines would likely hike raw sugar exports to up to 250,000 MT from the agency’s initial forecast of 150,000 MT.

About 80 percent of sugar production has been allotted for the domestic market, while 10 percent has been classified for the US market and another 10 percent for the world market.

According to the USDA, global production next year is forecast to rise to a record 185 million MT from the 180 million MT this year.

This is attributed to the record production in Brazil, expected recoveries in output in India and Thailand due to favorable weather, the end of production quotas in the European Union, and area expansion in China.

The jump in production supports record exports and consumption at 62 million MT and 174 million MT, respectively.