Upload
jeanette-patindol
View
298
Download
0
Embed Size (px)
DESCRIPTION
Presentation file by the Sugar Regulatory Administration; for use by Agribusiness Research class 2014-2015
Citation preview
Diversifying the Sugarcane Industry
March 11, 2014
Part I: The PHL Sugarcane Industry
Vision and Roadmap
VISAYAS(18 mills + 7
refineries+ 3 distilleries)
MAP OF PHILIPPINE SUGAR MILLS & BIOETHANOL DISTILLERIESMAP OF PHILIPPINE SUGAR MILLS & BIOETHANOL DISTILLERIES
LUZON
(7 mills + 4 refineries + 1 distillery)
NEGROS
MINDANAO(4 mills + 3 refineries)
TARLAC
Batangas Sugar
CAMARINES SUR
PAMPANGA
CAGAYAN
ILOILO
CAPIZ
LE
YT
E
CE
BU
BUKIDNON
DAVAO DEL SUR
Davao
NORTH COTABATON
EG
RO
S
OC
CID
EN
TA
L
NEGROS ORIENTAL
LopezSa
Tolong
AGUSANDEL NORTE
BOHOL
LANAO DEL NORTE
MASBATE
MISAMISOCCIDENTAL
MISAMISORIENTAL
SAMAR
SURIGAODEL NORTE
SURIGAODEL SUR
ZAMBOANGADEL NORTE
ZAMBOANGADEL SUR
SOUTHCOTABATO
PALAWAN
Legend
MANILA
Sugar millsMills with annexed refineryMajor sugar ports
SAN CARLOS
5,000 HECTARES
Green Future Innovations
CAGAYAN / ISABELA
11,000 HECTARES
Bioethanol production areasPampanga Bioenergy
7,000 HECTARES
PANAY
BATANGAS
Bioethanol target areas
Canlaon Alcogreen
5,000 HECTARES
Bioethanol Distilleries
CAVITE
Cavite Biofuels
7,000 HECTARES
N
S
EW
Present ProfilePhilippine Sugarcane Industry
contributes P76B to the economy
Present ProfilePhilippine Sugarcane Industry
contributes P76B to the economy
Sugarcane Farms
62,000 farmers 62,000 farmers and increasingand increasing
90% of farms are 90% of farms are 10 hectares & 10 hectares &
belowbelow
422,384 hectares 422,384 hectares of sugarcane of sugarcane plantations plantations
Productivity:Productivity:58 TC/Ha58 TC/Ha
1.99 LKg/TC1.99 LKg/TC
Sugarcane Farms
62,000 farmers 62,000 farmers and increasingand increasing
90% of farms are 90% of farms are 10 hectares & 10 hectares &
belowbelow
422,384 hectares 422,384 hectares of sugarcane of sugarcane plantations plantations
Productivity:Productivity:58 TC/Ha58 TC/Ha
1.99 LKg/TC1.99 LKg/TC
Power Generation
- all mills are self-sufficient on
power - 2 mills and 2 distilleries are
supplying to the grid
- 5 mills are preparing to
supplying to the grid
Bio-ethanol Producers
4 Bioethanol 4 Bioethanol DistilleriesDistilleries
35% Production 35% Production capacity of capacity of
mandated marketmandated market
Sugar Mills
28 Sugar Raw 28 Sugar Raw Mills Mills
- 202,500 MT/day- 202,500 MT/day14 Sugar 14 Sugar
RefineriesRefineries- 8,000 MT/Day- 8,000 MT/Day
70% capacity 70% capacity utilization of millsutilization of mills
Highly-Efficient
Mills
10 Bioethanol Distilleries
Sugar Mills Generating 500 MW
power
Specialty Sugar, Bio Water, Bio Plastics,
etc.
Expansion of Sugarcane Areas and
Increase in Number of Large Farms (Block Farming)
Sugarcane Eco-zones
Farm Support Industri
es
Mill Support Industri
es
Fully Integrated Sugarcane IndustryY2027
Foundation for
Development
Support Activities
Goals
Vision
Vision
Fully Integrated Sugarcane Industry
Sugar, Ethanol, Power & Others (Bio-water, Bio-plastic, etc)
Vision
Fully Integrated Sugarcane Industry
Sugar, Ethanol, Power & Others (Bio-water, Bio-plastic, etc)
Highly Productive Sugarcane
Farms
- 75 tons per hectare (national average)
- 2.1 bags per ton cane sugar
recovery
Highly Productive Sugarcane
Farms
- 75 tons per hectare (national average)
- 2.1 bags per ton cane sugar
recovery
Sugar Mills and
Distilleries Supplying
Power To the Electric Grid
- 200 MW sold to the grid
Highly Efficient Bio-
ethanol Distilleries
- producing 100% of volume
required of PHL
mandatory blend
-
Highly Efficient
Sugar Mills
- 80% milling capacity
utilization
- 85% sugar recovery
Production of other
sugarcane-based
products
- bio-water- bio-plastic
- muscovado
sugar- specialty
sugars- others
Production of other
sugarcane-based
products
- bio-water- bio-plastic
- muscovado
sugar- specialty
sugars- others
A Multi-Product Sugarcane Industry Towards Inclusive Growth
Raw Sugar
• Bio-Power (electricity)
• Bio-water
• Bio-fertilizer
• Bio-plastic
• Battery
Refined Sugar
Molasses
Traditional Products from SUGARCANE
Future Products from SugarcaneFuture Products from Sugarcane
Future Products from Sugarcane
Increase Economic Contribution to P100 Billion
Sugar Self-sufficiency: Local Demand of 2.3 million MT meet
Annual exports of 150,000 mt sustainedBio-ethanol self-sufficiency:
Save dollars for 400 million liters gasoline annuallyUse of Green Renewable Fuel
Power Co-generation: 200 MW electric power delivered to the grid
Renewable fuel using bagasseLand Productivity Improvement:
40,000 to 100,000 hectares land more productiveEmployment of about 50,000 to 100,000 in rural
areasNew Products:New Industries and New Services Established
The ASEAN Economic Integration
in 2015:
Implications and PHL Preparations
PART II
NY #11: World Market Price ($US cents per pound) NY #11: World Market Price ($US cents per pound)
US$0.14 US$0.15 US$0.16 US$0.17 US$0.18
Dollar: Dollar: Peso Peso
Exchange Exchange RateRate
₱40.00 ₱896.80 ₱943.00 ₱989.20 ₱1,035.40 ₱1,081.60
₱41.00 ₱912.97 ₱960.33 ₱1,007.68 ₱1,055.04 ₱1,102.39
₱42.00 ₱929.14 ₱977.65 ₱1,026.16 ₱1,074.67 ₱1,123.18
₱43.00 ₱945.31 ₱994.98 ₱1,044.64 ₱1,094.31 ₱1,143.97
₱44.00 ₱961.48 ₱1,012.30 ₱1,063.12 ₱1,113.94 ₱1,164.76
₱45.00 ₱977.65 ₱1,029.63 ₱1,081.60 ₱1,133.58 ₱1,185.55
Tariff Rate: 5% Shipment & Other Costs: P250.00 per bag
Sensitivity Analysis of Imported Raw Sugar Price at 5% Tariff
Cost of Production per Hectare
₱60,000 ₱70,000 ₱80,000 ₱90,000 ₱100,000
Sugarcane Sugarcane Production Production per Hectare per Hectare (tons/Ha.)(tons/Ha.)
40 ₱1,111 ₱1,296 ₱1,481 ₱1,667 ₱1,852
50 ₱889 ₱1,037 ₱1,185 ₱1,333 ₱1,481
60 ₱741 ₱864 ₱988 ₱1,111 ₱1,235
70 ₱635 ₱741 ₱847 ₱952 ₱1,058
80 ₱556 ₱648 ₱741 ₱833 ₱926
90 ₱494 ₱576 ₱658 ₱741 ₱823
Sharing: 67.5% Planter share Sugar Recovery: 2.0 LKg/TC
Sensitivity Analysis on Cost of Production Per 50-kg Bag Raw Sugar
Industry Competitiveness Strategy
• Increase Farm Productivity
• Reduce Cost of Production
• Increase Mill Efficiency
• Diversify Product Stream to Increase Income of Producers
Preparations for the ASEAN Integration in 2015
1. Productivity Improvement
- Technology Adoption
- Block Farming
2. Industry Diversification
- Now Sugarcane Industry - not just a sugar industry
- Diversified products of Sugar, Ethanol and Power
3. Responsive Regulatory Framework
- Enactment of rules and its proper and transparent implementation
4. Development of Infrastructure Support
- Improvement of Farm-to-mill roads, irrigation, mechanization
5. Active Market Research
6. Enactment of the Sugarcane Development Act
Development Imperatives
• Active Government Support
• Productive Public-Private Partnership
• Strong Research and Development (R&D)
• Innovative Technology Transfer System
• Responsive Support Industries for the Farms, Mills and Distilleries
• Responsive Financial and technical assistance packages
IDENTIFYING THE SUGARCANE FARM: MAPPING PER BARANGAY
BLOCK FARM Agribusiness Unit
DAR- organizational
devt - land tenure improvement
DA- Other crops
-InfrastructureSRA
- Technical Assistance
- Technology Transfer
DTI- Marketing
- InvestmentsDOLE
- skills Devt, Agriprenuership,
productivity improvement
DOE- ethanol & power
MDDC:Conduit of Initiatives
& Coordination
INCREASING NUMBER OF LARGE FARMS: BLOCK FARMING
Service Provider
Farm Management & Technical Consultancy
Equipment Services
Finance and Financial Services
Support Services
Planters Association/Sugar Mills/
Ethanol Distilleries/
Industrial Users
Enterprise Dev't.
MarketingInvestment
FARM SUPPORT INDUSTRIES: MUST BE PRIVATE BUSINESSES
SUGARCANE FARM
SUGARCANE FARM
Farm Manageme
nt & Technical
Consultancy
Tractor Services
Finance and
Financial Services
Supply of Fertilizer &
Other Inputs
Equipment Manufacturi
ng
Product Diversification
Harvesting and
Hauling Services
MILL SUPPORT INDUSTRIES: MUST BE PRIVATE BUSINESSES
SUGAR MILL / DISTILLERY
SUGAR MILL / DISTILLERY
Foundry and
Machine Shop
Engineering & Design
Construction
Repair and Maintenanc
e
Product Diversification
Equipment Design and
Manufacturing
SUGARCANE ECO-ZONES: RURAL DEV'T HUBS
SUGAR MILL / DISTILLERY
SUGAR MILL / DISTILLERY
Sugar-based Food
Manufacturing
Foundry and Machine
Shop
Block Farms
Equipment Manufacturin
g
Equipment Manufacturin
g
Consultancy & Advisory
Fertilizer & Input
Manufacturing
Bio-water, Bio-plastic &
other by- products
Bio-water, Bio-plastic &
other by- products
MILL DISTRICT DEVELOPMENT COUNCIL (MDDC)
MDDC:Managing the Dev't of the Mill District
MDDC:Managing the Dev't of the Mill District
Farm-to-Mill Road
HYV Planting
Irrigation
Farm Database
Crop Estimate
Equipment Services
How the Sugarcane Act Can Help
• Task concerned government agencies to support the industry
• Provide development funds for improvement of the farms and mills
• Line budget funds for farm-to-mill roads and irrigation systems
• Incentives to Block Farms
• Mandate the creation of Sugarcane Eco-zones
• Framework for development of other sugarcane-based products
Website : www.sra.gov.ph
Email : [email protected] [email protected]
Tel. No. : (632) 929-3633 (632) 455-2135