Sugar Regulatory Administrator Ma. Regina Martin yesterday said market forecasts indicate an increase in demand for sugar in Asia - the fastest growing region, which will benefit the Philippines.
This is the avenue that the Philippines can take advantage of - given its competitiveness, proximity, and resiliency, said Martin, who last week attended the International Sugar Organization’s 44th council meeting in London where the “Commercial success for sugar crops – investment, innovation and efficiency" was discussed.
“An increase in sugar consumption in Asia is seen due to economic growth and high rate of urbanization. China is stocking sugar while other Asian countries will continue to experience increasing demand,” she said.
ISO economists, at the council meeting attended by 450 sugar leaders from around the world, reported that there will be a surplus of production for Crop Year 2013-14 but the gap is tapering down from the previous year, she said.
Overall, there will be production of about 181.5 metric tons and consumption of 176.7 million metric tons, or a surplus of about 4.7 million metric tons, she added.
However, the ISO delegates were told that CY 2014-15 may see a drop in surplus as consumption will continue to grow and production will be almost the same due to no additional production capacity, she said.
This will probably have some stabilizing effect on the price movements, she added.
The ISO has appointed Jose Orive of Guatemala as its new executive director. He will replace Dr. Peter Baron, who is set to retire by December 31, after 20 years of serving as executive director of the ISO, Martin added.
The ISO council thanked Baron for his service and for increasing its membership from 36 in 1994 to 87 countries this year, the latest to join being Sri Lanka.
The Philippines also expressed appreciation to Baron, who has become a friend of the Philippines, and having visited the country at least twice during his term, she said.
The Philippines was elected as member of the Administrative Committee of the ISO, which deliberates on more detailed administrative issues before they are presented to the council for discussion or approval, Martin said.*CPG