Philippines: Sugar Semi-annual
Though a minor player in the international sugar market due to its high production costs, the Philippines is the 8th largest sugarcane producer and the third largest U.S. sugar tariff rate quota (TRQ) recipient. Due to adverse weather conditions, Market Year (MY) 2014/15 (December/November) raw sugar production is expected to decline to 2.32 million metric tons (MMT), down nine percent over MY 2013/14 levels. Total raw sugar exports for MY 2014/15 are forecast to reach only 80,000 MT due to low supplies, almost all of which will go to the United States under the U.S. TRQ system. Since the beginning of MY 2013/14, domestic sugar prices have risen noticeably due to tight supplies and growing demand from consumers and local food processors. The average Philippine millsite price for domestically sold raw sugar is nearly double the price of local sugar destined for the world market.
