The issue of coasting

Sugar producers cannot be blamed for focusing their attention on how much they can profit from their sugarcane crops. If they did not consider that as primordial consideration, they should have long disappeared from the scene. On the other hand, pricing should be considered in terms of the product. Not anymore sugar, but energy. That can immediately clarify the dilemma that confronts most sugar farmers as they find themselves baffled by the introduction of ethanol into the sugar scene.

I guess, the first thing sugar men should consider is that this is an entirely new playing field, an entirely new ball game. The new product that is being discussed is energy, not food. That can immediately clarify the whole problem.

That's why I was surprised that there were not too many questions raised with Rep. Juan Miguel Zubiri of Bukidnon about where the Marubeni of Japan was going to build the 10 ethanol distilleries they want to put up in the country. I suspect that Negrense sugarmen thought their province is going to be the logical choice since it and neighboring Oriental Negros produce the bulk of the country's sugar.

I won't be surprised if they are proved wrong. I have already heard the arguments of some of the energy promoters about the bulk of the industrial alcohol consumers located in Luzon. So with the majority of our vehicles in Metro Manila and the Luzon provinces.

Thus, logically, with the only refinery for gasoline located in Bataan, the oil firms seem to have focused their eyes on areas near Metro Manila.

That's why I was hearing talks the last time in Manila that Petron had already explored negotiations with some producers in Eastern Batangas for their areas to be devoted to ethanol. The problem is that they are discussing, not how much percentage of one's plantation would be for sugar and how much for ethanol, but how much will be for ethanol in terms of total hectarage.

I've been hearing talk among some sugar producers here that they may allot 40 percent of their hectarage to ethanol and 60 percent for sugar. But, commented some, when the price of sugar goes up, then they could quietly shift back their standing crops to sugar.

And that exactly is what had been bugging investors in ethanol distillery. They want to be sure they don't get cheated out of a contract and later left hanging to an empty bag. The very reason why most are eyeing expansion areas rather than the traditional sugarcane areas.

Just food for thought for some sugarmen.

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Sugar producers must be alerted to the possibility that they could find themselves swindled by some traders of their "A" or US sugar quota sugar. Not that they should be able to demand the same price as that with which the US buys from international traders. But they should be careful about being taken advantage of by the international traders.

I just got the latest study of the US sugar situation. According to the report, for FY 2006, ending stock are projected at 1,014 STRV (short tons). This reportedly implies an ending stocks-to-use ratio of 9.83 percent.

It added that the last time the same ratio was below this forecast level was in FY 1974 when the ratio hit 8.83 percent.

That time, the raw sugar price for the fourth quarter of the fiscal year was 31.55 cents a pound.

Of course, local producers may not be able to sell directly to the US refiners. But that does not mean that they can't find out how much the traders are earning. So, the only thing I am cautioning about is for producers to sell their sugar at prices that are reasonable.

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MassKara opens today with a bang. And MMDA chief Bayani Fernando will attend the opening rites that, for the first time, will feature the candidates for Miss MassKara.

The thing to remember is the principal reason for the MassKara. And the theme it wants to project to the entire world - that Negrenses can continue to grin and bear our problems no matter how weighty.

This is a lesson that we should never forget. Which is one reason why we all have to thank the Lord that He has given us the chance to continue serving Him until today. Very often, we forget amid our gaiety to thank the Lord for the many graces that He has showered on us. And Bacolod, especially, is one city which He had favored so much in the past and in the present. To Him be glory and honor forever.*

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