- 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 23rd 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%).
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