Sugar firms invest P5-B to modernize mills

The country’s big sugar firms are investing P5 billion this year to modernize milling facilities as part of the industry’s bid to regain its competitiveness in the world market.

Among the sugar firms embarking on a massive rehablitation and upgrading of their faciltiies are the Negros-Occidental-based Central Azucarera de la Carlota, Lopez Sugar Corp., First Farmers Holding Co., Hawaiian-Philippine Co. and Victoria Milling Co. which was recently acquired by taipan Lucio Tan.

Outside of the country’s biggest sugar-producing region, the Central Azucarera de Don Pedro in Batangas; the Leyte-based Hideco Sugar Milling Co.; the Cebu-based Bogo-Medelin; Bukidnon-based Busco Sugar Milling Co. and Basecom Inc. in Pampanga are also modernizing their facilities to meet world-class standards.

"Upon completion of these efforts, the local sugar industry will not only be able to improve their milling recovery rate, but they will also be able to trim production costs and be more cost-competitive," said Agriculture Secretary Luis Lorenzo Jr. who recently met with industry leaders.

Lorenzo said these companies, backed by technical assistance from the government, are aiming to bring down sugar production cost to 10 US cents per pound from the current range of 14 to 18 cents per pound.

This is possible if local sugar mills improve mill recovery rate from 79 percent to 85 percent.

"Our country is experiencing an industry-wide mill modernization program never seen in the past. It begun in 2001 but once it’s over by 2004, we can rightfully say that our sugar industry can compete with Caribbean, Asian and African countries and even the rest of the world," Lorenzo said.