Roxas to export raw sugar to South Korea, Japan

MANILA, Philippines - Publicly listed sugar group Roxas Holdings, Inc. (RHI), through its unit Central Azucarera Don Pedro, Inc. (CADPI), will export raw sugar to South Korea and Japan in the coming weeks.

The move is in response to the Sugar Regulatory Administration’s directive to convert domestic sugar (class B) into world sugar (class D) market to dispose of the excess supply from the current crop year.

The surplus in sugar production comes on the heels of the US announcement that it will not purchase more than its annual sugar export quota from the Philippines.

A slowdown in demand from some local industrial users who shifted to high fructose corn syrup and premixes for blending in their own products also contributed to the oversupply.

CADPI recently concluded the first round of shipments to South Korea via the Batangas International Port.

Its next shipment is expected to be made by the end of the month.

“The crop year just ended in June and production was much higher than anticipated. We see this as an opportunity to tap other export markets like Japan and Korea,” Pedro Roxas, RHI chairman, explained.

“Since we cater primarily to the local industrial market, this will be the first time in five years that we are back into the export market outside the US,” Roxas added.

Local sugar production for crop year 2010-2011 has reached 2.4 million metric tons from the orginal expected production of 1.9 million MT.