5. Key Commodity Performance - National Agricultural and Fishery ...

5.4.11 The derived export parity prices are relatively lower than domestic
wholesale prices especially for sugar coming from Thailand.
SWOT Analysis
5.4.12 The Philippine sugar industry has a highly organized private sector who
are actively participating for the development of the industry. They serve the
interest of the farming sector in terms of technical services. Given available
workforce provided with technical skills and modern technology are strengths of
the sugar sector.
5.4.13 The industry’s weaknesses, if not addressed well, could cause a
long-term decline in competitiveness. Among the major factor to look into is
low farm productivity. This is attributed to the limited use of high yielding
varieties in some production areas, limited irrigation, limited mechanization
and poor agronomic practices (i.e. early harvesting).
5.4.14 The future of the industry offers promise provided the strengths are
capitalized on and the weaknesses frontally addressed. There are still high
potentials for yield and quality improvements. Moreover, potentials for area
expansion is still present to increase production. The strong domestic
demand due to increasing population and expanding usage of food
processors provide more opportunities to the industry.
5.4.15 The development and expansion of the industry are constrained by a
number of factors. The threats and the weaknesses must be addressed with
concerted actions by the stakeholders. Extension of CARP implementation, for
example, can lead to inefficiencies in farm production. The declining US Quota is
considered a threat because it is the reliable market for Philippine sugar which
pays premium price. Presence of artificial sweeteners as substitute also cuts
down sugar consumption.
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