• The Philippines won’t export its full quota to the US this year.
• This is because producers can earn more by selling sugar domestically.
• This is because the country won’t make enough sugar to meet domestic consumption yet again.

Not Enough Sugar…Again

• The Philippines has been slow to export sugar to the US this season.
• And now, the SRA has confirmed the Philippines will not ship its full 142k tonne quota.
• As it stands, we think it’ll export 100k tonnes of sugar to the US.

• We think there are two reasons for this.

Import Quotas Are Yet to Be Announced

• Historically, the Philippines has started exporting once its various import quotas have been confirmed.
• Last year, this confirmation arrived in February, but producers are still waiting this year.

Wet Weather Has Disrupted Production

• Wet weather has reduced cane and sugar yields in key production zones.

• We think it’ll produce 2.1m tonnes of sugar, putting it in deficit for the seventh season running.

• By the 23^rd May, the Philippines had crushed 24.3m tonnes of cane, up 9% year-on-year.
• Despite the yearly increase, the wet weather means sugar yields are down 8% year-on-year (at 8.5%).

Other Opinions You Might Be Interested In…

• The Philippines Acts Against Sugar Shortfall

Explainers You Might Be Interested In…

• Czapp Explains: The Philippines’ Sugar Industry
• Czapp Explains: US Sugar Pricing and Quotas