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Chicken And Swine Essay

848 words - 4 pages

Philippine sugarcane output has been volatile over the past few years, with a sizable drop in 2010 due to El Niño. Approximately 90% of the sugar produced in the Philippines is sold for domestic consumption with most of the remainder exported to the US. Philippine sugar exports dropped in 2010 when domestic production faltered, before recovering sharply in 2011. Import quantities, on the other hand, have been fairly low except in 2010. The following year, imports returned to trend as domestic production recovered and world prices increased.
Sugar imports of ASEAN countries have risen considerably since 2004. However, the Philippines exports very little of the commodity to these countries. ...view middle of the document...

Since 2000, real world sugar prices have been increasing at an average rate of 4.2%. This trend suggests that productivity gains and new capacity in recent years may have not been large enough to keep up with the sustained expansion in global demand for sugar. The impact of the energy market on the world sugar market has also strengthened over the past 10 years, since sugarcane is also a major input for the production of ethanol, a substitute for fossil fuels. When ethanol prices increase, sugar factories in countries such as Brazil choose to process relatively more sugarcane into ethanol. This lowers the export availability of sugar and creates an upward pressure on world sugar prices. (Amrouk, Rakotoarisoa, & Chang, 2013)
World sugar consumption has grown significantly and is approximately 26% larger compared to the previous decade (Amrouk, Rakotoarisoa, & Chang, 2013). Sugar usage is expected to expand, particularly in developing countries, driven by the increase in both population and per capita GDP. A prominent feature of the world sugar market in recent years has been the shift in EU trade position from a net exporter of predominantly white sugar to a net importer of mainly raw sugar. This reflects the reforms in 2006-07, when sugar production support was removed. Imports to the EU are projected to grow from an average of about 3.2 million tonnes in 2007-2010 to a projected level over 4 million tonnes in 2021. Suppliers that are able to produce...

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