UA&P: Sugar industry can reduce import dependence
MANILA, Philippines — The Philippine sugar industry still has room to improve productivity and reduce its dependence on imports despite persistent production challenges, according to a report from the University of Asia and the Pacific (UA&P).
In a briefer, the UA&P-CFA said the sugar industry continues to face structural challenges hampering its productivity and competitiveness amid its long history.
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The briefer noted that local farms currently average only 55 to 60 tons per hectare, falling short of the target of 75 tons per hectare, due to limited access to high-yielding varieties, the prevalence of diseases, and traditional farm practices.
The industry grapples with a lack of investments in mechanization, irrigation, and modern farm practices since many sugar farms are small and fragmented, along with rising fertilizer, fuel, labor, and transportation costs.
“Many mills operate inefficiently due to aging equipment, underutilized facilities, and inadequate farm-to-market roads,” the UA&P-CFA said.
The UA&P-CFA said that although sugarcane milled rose by 5 percent to 22.46 million metric tons (MT), sugar recovery dropped by 9 percent to 1.63 50-kilogram bags of sugar per ton cane (LKg/TC).
The briefer noted that from 2021 to 2024, sugarcane production fell by 28.9 percent to 18.7 million metric tons (MT) and, in value, declined by 29.5 percent to P30.3 billion.
But in 2025, the industry recorded a 40.5 percent production growth, and production value reached P42.8 billion.
Beyond production constraints, the sector also faces growing competition from imported high-fructose corn syrup (HFCS), an alternative to locally produced sugar in industrial food and beverage manufacturing.
The US Department of Agriculture–Foreign Agricultural Service in Manila estimates that raw sugar production will decline to 1.7 million metric tons (MT) in the 2026-2027 marketing year.
The report said the red-striped soft scale insect infestation, El Niño, and elevated production costs may affect domestic output.
Meanwhile, population growth and demand from households and food and beverage manufacturers will likely push domestic sugar consumption to 2.3 million MT during the period.
“However, growing health consciousness trends and the increasing use of alternative sweeteners may influence future demand for conventional sugar,” the briefer said.
The UA&P-CFA said the country will continue to rely on imports, although domestic output accounts for about 80 percent of the local supply to meet sweetener demand.
“Improving sugarcane yields, sugar recovery, and milling efficiency will therefore be essential to reducing production gaps and strengthening the industry’s competitiveness,” the UA&P-CFA noted.
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The briefer identified various growth opportunities which, if attained, can help it achieve sustainable growth, improve the quality of sugar harvests and strengthen local supply.
These include providing farming support through the Sugarcane Industry Development Act (Sida), improving sugarcane varieties, modernizing milling equipment, and investing in more efficient processing facilities.
It also cited diversifying beyond raw and refined sugar production, particularly by-products such as molasses and bagasse for bioethanol, animal feed, bioenergy, and other industrial applications. /pai
