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Annual-Report-2011.Pdf Department of Agriculture SUGAR REGULATORY ADMINISTRATION 2011 Annual Report Table of Contents EXECUTIVE SUMMARY HIGHLIGHTS OF ACCOMPLISHMENT Agricultural Industrial Extension Regulatory Planning and Policies Internal Audit Legal Administrative and Finance GAD ANNEXES The Philippine Sugarcane Industry Executive Summary Crop Year 2010-2011: Industry Performance FARM SECTOR Area Harvested, in hectares Region 2010-2011 2009-2010 16% Luzon 61,660 63,292 23% Luzon Negros 198,944 197,126 Negros Panay 26,307 26,245 East Visayas 17,392 17,502 4% Panay Mindanao 91,189 81,497 7% East Visayas Total 395,492 385,662 50% Mindanao For Crop Year 2010-2011 area harvested increased by 2.5% and in effect increased cane yield by 38.68%. The increase was realized due to favorable weather condition, improved field practices, decrease in price of fertilizers, and the high price of sugar that motivated the sugar farmers to plant more. Cane Yield by Region, Comparative 16,000,000 Region 2010-2011 2009-2010 14,000,000 12,000,000 Luzon 3,457,679 2,974,312 10,000,000 Negros 14,838,378 10,871,671 Panay 1,702,624 1,108,550 8,000,000 East Visayas 992,847 743,901 6,000,000 CY 2010-2011 Mindanao 5,672,953 3,528,594 4,000,000 2009-2010 Total 26,664,481 19,227,028 2,000,000 0 Mills and Refineries Performance Production Cane milled increased by 39% resulting to a 24% increase in raw sugar manufactured. Delivery of burnt canes to the factories are on a down trend. From 14% in CY 2009-2010, burnt cane delivery went down further by 9%. The industry did not perform well in terms of productivity as indicated by a decline in Lkg/TC by 13%. Performance Twenty nine (29) sugar mills operated this year. Mill performance this crop year is bit lower compared to last year due to faster milling rate a d poor performance of the boiling house which gave a corresponding low over all recovery. For this crop year, fourteen (14) sugar refineries operated and produced 16,476,533 LKg of refined sugar. Victorias remained the top producer of refined sugar with a volume of 4,382,592 LKg with a rated capacity of 25,000 LKg bag/day. Breakdown of raw and refined sugar production by mill/refinery is shown in the annexes of this report. Time Efficiency This year’s milling operation is more or less longer by 50 days per mill. Last year’s milling rate was faster at 277 TCH, but is still way below the rated of 335 TCH. Total time efficiency increased by 3% due to minimal stoppages. As usual, delays due to cane topped all the stoppages. Total time efficiency is better, considering that this was a longer season. The mills seemingly were not able to capitalize on better quality deliveries brought about by less burnt cane, but reeled on the drastic decrease of pol in cane. COMPARATIVE HIGHLIGHTS OF OPERATIONS CY 2009-2010 and CY 2010-2011 CY 2010-2011 * CY 2009-2010 Gross Cane, Tonnes 26.64 M 19.24 M Burnt % Cane 8.81 13.81 Raw Sugar Manufactured, Tonnes 2.37 M 1.97 M LKg/TC 1.78 2.05 TC/TS 11.24 9.53 No. of Operating Mills 29 29 Tonnes Cane per Hour 7,519.191 7,672.327 Average TCH 259.282 264.563 % Pol Extraction 91.19 93.97 % Boiling House Recovery 84.11 87.91 % Overall Recovery 76.70 82.60 % Capacity Utilization 42.75 58.43 % Mechanical Time Efficiency 89.11 89.85 Average Milling Days 203.91 153.30 % Total Time Efficiency 64.25 62.35 */ Data are rough estimates since documentation is still on-going. Refinery Performance Production Improved quality raw sugar processed this season did not hit a million ton producing almost same quality of refined sugar as last year. This figure is the lowest output by the refineries for the last 14 years. The production ratio refined: raw was the lowest ever at 37%. Performance The number of operating sugar refineries decreased, one reason why there was a decrease in the raw material processed. Boiling house delivered the same work at 92% actual recovery. Time Efficiency The 2011 refining season is shorter by an average of 11 days per plant compared to 2010. Time efficiency increased by almost 3% due to lesser stoppages and downtimes by the sugar refineries. Sugar Refinery COMPARATIVE HIGHLIGHTS OF OPERATIONS Fiscal Year 2011 FY 2010 FY 2011 Tonnes Raw Input 1.039 M 0.899 M Tonnes Raw Sugar Processed 1.027 M 0.886 M % Pol 97.51 97.62 % Moisture 0.596 0.555 Refined Sugar Produced Lkg Bags 19,091,042 16,374,017 % Pol 99.89 99.91 % Moisture 0.031 0.032 Color, ICU 44 47 No. of Refineries 12 11 Total Refining Hours 48,254.59 41,536.66 Actual Refining Hours 37,003.35 32,691.31 % Actual Recovery 92.34 92.37 % Capacity Utilization 75.02 73.40 % Time Efficiency 76.68 78.70 SUPPLY & DEMAND Production Raw sugar production for Crop Year 2010-2011 ended with a total of 2,399,116 MT, a 21.73% increase over the previous crop year’s production of 1,970,784 MT. Contrary to the upward trend of raw sugar, refined sugar production dropped by 16.31%, from 19,684,065 in the previous crop year to 16,476,533 LKg this crop year. PRODUCTION Crop Year Raw (MT) Refined (LKg) 2010-11 2,399,116 16,476,533 2009-10 1,970,784 19,684,065 2008-09 2,100,048 18,977,539 2007-08 2,455,027 21,843,627 2006-07 2,233,453 21,645,089 2005-06 2,138,075 20,036,314 2004-05 2,150,746 21,127,485 2003-04 2,338,574 24,258,195 2002-03 2,161,525 23,251,535 2001-02 1,898,501 20,938,696 Withdrawals Domestic demand for raw sugar for the crop year totaled 1,716,505 MT, lower by 11.68% from last crop year’s figure of 1,943,443 MT. Same as raw sugar, withdrawal of refined sugar experienced a decline of 24.19% from Crop Year 2009-2010. Crop Year Demand (MT) Total Domestic Exports 2010-11 1,716,505 248,307 1,964,812 2009-10 1,943,443 192,077 2,135,520 2008-09 1,886,466 219,132 2,105,598 2007-08 2,078,468 145,982 2,224,450 2006-07 1,958,643 237,037 2,195,680 2005-06 1,909,846 213,317 2,123,163 2004-05 1,950,585 300,955 2,251,540 2003-04 2,068,109 190,600 2,258,709 2002-03 2,059,388 137,353 2,196,741 1201-02 1,942,993 75,401 2,018,394 Monthly Raw Sugar Production vs. Withdrawals CY 2010-2011 CY 2009-2010 Month Production Withdrawals Production Withdrawals (MT) (MT) (MT) (MT) September 10,102 35,608 47,627 80,328 October 75,628 69,881 135,047 121,813 November 161,286 86,266 293,786 194,540 December 313,964 124,984 328,058 178,355 January 416,603 167,546 469,058 263,482 February 396,608 205,651 358,913 180,819 March 350,813 210,924 210,339 205,329 April 308,292 202,628 90,917 210,948 May 245,817 178,174 23,858 222,822 June 78,659 178397 1,715 123,106 July 36,437 144,750 0 86,414 August 4,907 111696 0 75,487 Adjustment 11,467 Total 2,399,116 1,716,505 1,970,784 1,943,443 Raw Sugar Production vs Withdrawals for Crop Year 2010-2011 500,000 400,000 300,000 Production (MT) 200,000 Withdrawals (MT) 100,000 0 Jul Jan Jun Oct Apr Feb Dec Aug Nov Mar May Sept Monthly Refined Sugar Production vs. Withdrawals CY 2010-2011 CY 2009-2010 Month Production Withdrawals Production Withdrawals LKg LKg LKg LKg September 0 911,148 462,294 1,472,983 October 109,704 1,012,403 861,129 1,751,891 November 841,789 805,945 1,959,723 2,260,883 December 1,601,292 1,074,847 2,400,176 1,915,026 January 2,708,125 1,090,875 3,580,121 2,341,382 February 2,820,381 1,113,452 3,148,385 1,610,296 March 2,440,056 1,333,760 2,648,689 1,496,720 April 1,976,195 1,118,949 2,280,490 1,473,545 May 2,065,540 1,531,500 1,169,187 1,899,505 June 836,568 1,495,942 733,746 1,348,613 July 851,987 2,015,467 422,538 1,180,181 August 224,896 1,762,242 17,587 1,014,470 Total 16,476,533 15,266,530 19,684,065 20,137,438 Refined Sugar Production vs Withdrawals for Crop Year 2010-2011 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 Production LKg 500,000 Withdrawals LKg - Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug EXPORTS US From the initial allocation of 142,160 MTRV, the Philippines was granted by US an additional quota of 36,277 MTRV for the Year 2011, From January to December 2011, the total quantity of sugar exported was 299,493.20 MT generating a total collection of P 10.762 M from export clearance fees.
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