Sugar producers
scramble for tractors

Most hardly noticed it. But there has been a persistent purchase of tractors among Negrense sugar producers.

This was validated Wednesday by Sugar Board Commissioner Rafael Golez. He said that last week when he took the boat from Manila, he saw four Massey Ferguson tractors being unloaded in Banago. He had noted the same earlier the same week when he boarded the boat for Manila.

But yesterday, Luis Tongoy, chair of the Negros-Panay Chapter of the Confederation of Sugar Producers Associations Inc., told me that he recently also bought a Ford tractor.

Sammy Uy, the tractor firm's owner, reportedly admitted to Tongoy that since January, he had already sold six units. And the most recent buyers were City Mayor Bong Lacson of San Carlos City and Mrs. Gina Martin-Bautista of Silay City.

But, Uy also told Tongoy that in 2004 total sales hit only 14 units. This rose to 16 last year. And, based on the current trend, he expects it to go higher. Golez stressed that he goes around in the Victorias, Silay and E.B. Magalona areas whenever he is in town. "And one thing noticeable is that most of the cane fields are deep-plowed by tractors as the sugar producers plant completely new sugarcane. That's is surely going to result in bigger production next year," he said.

Given the present weather condition, Tongoy said, there is a strong possibility that we may exceed production predictions.

"We could end up with a surplus," he added.

Now, that's something that normally trigger nightmares among producers. For them, that could mean having in their hands more stocks than they could dispose of. And, of course, a drop in prices.

Yes, to a certain extent, the world market had dropped to only about 16 cents per pound yesterday against the previous high of more than 19 cents per pound. But that still is on par with our domestic sugar prices. Sans tariff, of course.

Kevin Kerr of MarketWatch pointed out that sugar has certainly advanced in stature among commodities and is now a completely different class.

"I expected sugar prices to exceed 20 cents as high as 23 cents this year. I am in good company. Many savvy traders and investors, like hedge funds, are betting that more sugar will soon be needed for ethanol - and so far that bet is working out was how Kerr put it.

He added that President George Bush's State of the Union Address drove home the point - sugar is not just a food crop. "It's an energy crop too," he added.

It seems quite clear sugar is on a road to much higher prices as ethanol demand increases in an every energy-thirsty world, Kerr summed up his analysis of the world sugar market.

But it is not just sugarcane that has been affected by the demand for ethanol as alternative fuel.

In China, Chinese officials report that while industrial corn use accounts for only a small portion of overall consumption, it is expanding at a rate of 10 to 15 percent a year, fuelled by high crude oil and sugar prices.

Jilin, China's top corn producing province in the northeast, reportedly was selling its corn at 1,310 yuan, well above 1,150 yuan a year ago.

Some analysts even predict that China, the world's third corn exporter last year, "might become a corn importer later this year or next year if prices remain high."

CNGOIC, the state-owned brain trust, predicts that the country's corn consumption by industrial users, including starch or ethanol, would rise to 20 million tons this year from 16 million tons last year. And it is forecast to reach 40 million by 2010.

Beijing, meanwhile, reportedly suspended corn exports this month and also may cut subsidies for ethanol.

Officially, China reportedly has four ethanol plants. They churn out one million tons of the fuel from three million tons of corn.

Jilin is home to the world's reportedly largest ethanol plant.

But there is also the threat that further increases in sugar from sugarcane may also give rise to more production of sugar from corn and other commodities.

China reportedly manufactures about 660,000 tons of corn sweeteners, including 100,000 tons of high fructose syrup at its Shanghai joint venture with Cargill Inc.

Xiwang Sugar Holdings Co. Ltd. Was also reportedly ready to build a new corn processing facilities in China. This is a Hongkong-based firm.

****

No, my friend. She was merely taken in to secure her from possible harm. But the television footages showed her being forcibly dragged by the cops and trussed up inside a police van.

Yes, that's true. But you see the TV mediamen did not listen to our call for them not to cover the incident.

And, yes, just as an aforethought She was guilty of illegal assembly and had to be safeguarded. That, my friends, are what seems to be the trouble with the PNP and the government. And it is the fault of media. That incident could not have become a cause celebre had they not covered it. That could have provoked a rebellion.

Well, all things go on as usual. And the government explanation must be accepted at face value. Just don't step on the government's toes.*

back to top