Food exporters seek DA help in gaining access to cheap sugar
October 14, 2001 | 12:00am
Food exporters have urged Agriculture Secretary Leonardo Q. Montemayor to help them obtain sugar stocks at globally competitive rates to ensure the competitiveness of Philippine processed foods in the world market and their continued viability.
In a letter dated Oct. 1, 2001 to Montemayor, Philippine Food Processors and Exporters Organization Inc. (Philfoodex) president Jesus T. Tanchanco said helping food exporters, through better priced sugar will enable the sector to help in economic recovery in the face of a global recession that would adversely affect the countrys export products.
Tanchanco said a major factor that burdens the food processing industry is the cost of sugar, which at present is P1,200 to P1,300 per 50-kilo bag wholesale which translates to P24 to P26 per kilo retail. By contrast, sugar sells for P10 per kilo in Indonesia, P13 in Thailand, P12 in Laos and P14 in Malaysia.
Considering that sugar comprises 30 to 70 percent of the cost of processed food products (juices, biscuits, candies, etc), the cost difference works to the disadvantage of food processors, who are outpriced in the market, Tanchanco said.
He noted that the local sugar industry is heavily protected (from 50 to 65 percent under the minimum access volume and another 15 percent increase in the very near future, or a total of 80 percent) despite the Philippines being a net importer of sugar.
Tanchanco appealed for DAs assistance to help local food processors continue operating their plants and survive the growing competition in the food market.
He said Philfoodex is asking for the following from the DA:
Allow food processors to buy their sugar requirements from the NFA at a price of P100 per bag lower than their selling price to retailers.
Restore the domestic sugar allocation of locally-produced sugar to food processors. This involves setting aside one percent of local production to be sold at special pre-arranged price to Philfoodex at levels similar to ASEAN competitors.
Annual allocation of 50,000 tons of special rate MAV for importation by Philfoodex for production use of food processors. This will serve only as a buffer stock to be brought in depending on the local supply situation.
He said the food processing industry is committed to support the Arroyo administrations program to attain a more sustainable agricultural development and create jobs for the millions of Filipinos in the urban areas through food processing and export.
In a letter dated Oct. 1, 2001 to Montemayor, Philippine Food Processors and Exporters Organization Inc. (Philfoodex) president Jesus T. Tanchanco said helping food exporters, through better priced sugar will enable the sector to help in economic recovery in the face of a global recession that would adversely affect the countrys export products.
Tanchanco said a major factor that burdens the food processing industry is the cost of sugar, which at present is P1,200 to P1,300 per 50-kilo bag wholesale which translates to P24 to P26 per kilo retail. By contrast, sugar sells for P10 per kilo in Indonesia, P13 in Thailand, P12 in Laos and P14 in Malaysia.
Considering that sugar comprises 30 to 70 percent of the cost of processed food products (juices, biscuits, candies, etc), the cost difference works to the disadvantage of food processors, who are outpriced in the market, Tanchanco said.
He noted that the local sugar industry is heavily protected (from 50 to 65 percent under the minimum access volume and another 15 percent increase in the very near future, or a total of 80 percent) despite the Philippines being a net importer of sugar.
Tanchanco appealed for DAs assistance to help local food processors continue operating their plants and survive the growing competition in the food market.
He said Philfoodex is asking for the following from the DA:
Allow food processors to buy their sugar requirements from the NFA at a price of P100 per bag lower than their selling price to retailers.
Restore the domestic sugar allocation of locally-produced sugar to food processors. This involves setting aside one percent of local production to be sold at special pre-arranged price to Philfoodex at levels similar to ASEAN competitors.
Annual allocation of 50,000 tons of special rate MAV for importation by Philfoodex for production use of food processors. This will serve only as a buffer stock to be brought in depending on the local supply situation.
He said the food processing industry is committed to support the Arroyo administrations program to attain a more sustainable agricultural development and create jobs for the millions of Filipinos in the urban areas through food processing and export.
BrandSpace Articles
<
>
- Latest
Latest
Latest
March 4, 2024 - 3:32pm
By Ian Laqui | March 4, 2024 - 3:32pm
March 4, 2024 - 2:12pm
By Kristine Daguno-Bersamina | March 4, 2024 - 2:12pm
February 17, 2024 - 2:31pm
February 17, 2024 - 2:31pm
February 13, 2024 - 7:24pm
By Gaea Katreena Cabico | February 13, 2024 - 7:24pm
February 13, 2024 - 7:17pm
By Ian Laqui | February 13, 2024 - 7:17pm
Recommended