The United States Department of Agriculture (USDA) has revised its outlook for sugar production in the Philippines from September 2023 to August 2024, anticipating a decrease in output, reported Manila Times.
The USDA’s updated projection lowers the expected sugar production from 1.9 million metric tons (MT) to 1.8 million MT.
This downward revision is attributed to several factors, including a reduction in sugarcane cultivation areas and the adverse impact of weather disturbances, particularly the ongoing El Nino phenomenon. The USDA pointed out that El Nino increases the likelihood of below-normal rainfall, which can result in lower yields.
The USDA’s forecast falls below the Sugar Regulatory Administration’s (SRA) projection of 1.85 million MT, as outlined in Sugar Order (SO) 1. The reduction in sugar production can be attributed, in part, to the closure of one sugar mill, Central Azucarera Don Pedro (CADP) in Batangas, owing to financial difficulties.
