Sugar sector urged to create standards for muscovado

The backyard muscovado or unrefined sugar industry is being urged to create a national standard for the production of muscovado that will boost its chances of tapping the global market for organic products worth $100 billion.

"There is really a big potential for increasing muscovado exports especially organically-produced muscovado, but it’s very critical for the industry to harmonize standards and ensure these are consistent and complying with accepted world standards," said Aida Ignacio, assistant administrator of the Sugar Regulatory Administration (SRA) in yesterday’s "First Philippine Muscovado Summit" spearheaded by the Philippine Development Assistance Program (PDAP), a consortium of Filipino and Canadian non-government organizations.

While the muscovado sector is not under the supervision of the SRA, Ignacio said private stakeholders such as producers, millers, traders and exporters, can work together, along with government agencies such as the Bureau of Agricultural and Fisheries Product Standards (BAFPS) to come up with a Philippine National Standard (PNS) for muscovado similar to what has been done recently for the fledgling virgin coconut oil industry.

Coming up with a national standard at this stage, however, will be difficult since the sector, composed mostly of small, individual producers is still largely unorganized.

"It would be best to come up first with a standard at the ground or regional level and then move up gradually to the national level. Right now, individual companies, especially those in the export trade, already have their standards, but these are mostly based on the standards imposed by their respective buyers," said Jerry Pacturan, PADP executive director whose group led a nationwide "There are different conditions in the major muscovado-producing areas that’s why a regional application is preferred," added Pacturan.

For instance, Alter Trade Corp., which is the only Filipino company exporting organic muscovado, secured accreditations with international muscovado certifying bodies such as the Japan Agricultural Standards, Naturland and Biosuisse.

Elizabeth Mondejar, Alter Trade marketing division manager said the muscovado sector should be moving into mainstream sugar industry and set its sights on the growing market for muscovado, in particular organically-produced muscovado.

Her company which recently acquired a P50-million loan from Oiko Credit, a micro-credit financial institution based in The Netherlands, is expanding the muscovado plant’s capacity to 1,600 metric tons (MT) in the next sugar cropping season which will allow it to expand its export volume in the United States, Japan and Europe.

Mondejar said the global demand for muscovado is increasing at the rate of 20 percent annually as the global population becomes increasingly health-conscious.

In 2004, the Philippines exported a paltry 580 MT of muscovado.

"We have barely scratched the surface, there is a niche market that is willing to pay a premium for high-quality muscovado, so it’s critical to ensure our product meet the quality standards of international buyers," said Jacqueline Haessig-Alleje, a member of the board of trustees of the Organic Certification Center of the Philippines.

To maximize the country’s potential for muscovado exports, the industry has to work on increasing its competitiveness, said Pacturan, citing the Philippines still has one of the highest internal cost vis-à-vis the cost of other sugar-producing countries.

The PADP which advocates the production of muscovado as a viable alternative industry for small farmers and millers, is also urging other sugar producers to shift from conventional sugar to muscovado sugar and cater to a niche market in the context of a declining sugar industry.