Sugar millers see higher yields after delay to milling operations
THE Philippine Sugar Millers Association (PSMA) said that a delay in the sugar milling season could allow the cane to mature further, possibly raising yields.
“While the association does not have the authority to change the start date (of milling), it will encourage mills to consider the delay,” the PSMA said in a statement.
The Sugar Regulatory Administration (SRA) has ordered the two-week delay to offset the impact of El Niño on the cane crop, saying it was acting at the request of planters and millers.
Last year, the SRA said that the milling season for the 2024-2025 crop year would start on Sept. 15.
“PSMA acknowledges the potential benefits of delaying milling to allow for better cane maturity and possibly higher yields, particularly in light of El Niño,” it added.
SRA Administrator Pablo Luis S. Azcona has said that the peak of the cane harvest could be delayed after El Niño damage forced farmers to replant damaged crops.
The PSMA added that the domestic allocation of sugar for the upcoming season may be justified due to the impact of El Niño.
During the second quarter, cane production dropped 42.3% year on year to 1.63 million metric tons (MT), according to the Philippine Statistics Authority, making sugar the crop most affected by El Niño during the period.
“The full impact of this weather event on the next crop season is still being evaluated by the SRA, as it reviews its pre-milling estimates for Crop Year 2024-2025,” it added.
PAGASA (Philippine Atmospheric, Geophysical and Astronomical Services Administration), the government weather service, declared the end of El Niño in early June, but dry conditions are expected to persist.
“If it is later determined that the crop yield is better than initially projected, PSMA will coordinate efforts to implement programs aimed at accessing the available US market,” it said.
The Philippines is set to export 25,300 MT of raw sugar to the US to fill its quota after three years of staying out of that market to divert more sugar to domestic use.
For the 2024-2025 season, the Office of the US Trade Representative gave the Philippines a quota of 145,235 MT in raw value equivalent. — Adrian H. Halili