The government will strictly punish sugar importers leaking refined sugar into the consumer market following a recent sugar audit, according to Indonesia's Jakarta Post newspaper.
The Trade Ministry's director general for domestic trade, Srie Agustina, said on Friday that the punishment, which would come by way of cutting import allocation on importers, would be imposed in the second half of this year.
"We will release the figure after we get an assessment of sugar needs from the Industry Ministry," Srie told reporters at her office.
The government found 110,799 tonnes of refined sugar leaked into the end-consumer market in 15 provinces last year, causing a dip in domestic sugar price. That compared to 398,044 tonnes found in last audit in 2011.
Indonesia imported 3.02 million tonnes of sugar last year, and around 2.85 million tonnes had already been delivered as of Nov. 30
- See more at: http://www.sugarinfo.co.uk/news/website_contents/view/1226295#sthash.F2Sa50dZ.dpuf
The Trade Ministry's director general for domestic trade, Srie Agustina, said on Friday that the punishment, which would come by way of cutting import allocation on importers, would be imposed in the second half of this year.
"We will release the figure after we get an assessment of sugar needs from the Industry Ministry," Srie told reporters at her office.
The government found 110,799 tonnes of refined sugar leaked into the end-consumer market in 15 provinces last year, causing a dip in domestic sugar price. That compared to 398,044 tonnes found in last audit in 2011.
Indonesia imported 3.02 million tonnes of sugar last year, and around 2.85 million tonnes had already been delivered as of Nov. 30
- See more at: http://www.sugarinfo.co.uk/news/website_contents/view/1226295#sthash.F2Sa50dZ.dpuf
Billionaire Anthoni Salim’s
First Pacific is seeking to buy sugar companies in the Philippines to
expand its footprint in Southeast Asia and tap opportunities from a
free-trade agreement in the region.
Pressure for sugar companies to become more competitive — and
consolidate — is growing ahead of a reduction in regional sugar tariffs
next year, First Pacific chief executive Manuel Pangilinan said in an
interview in Manila, without identifying possible targets.
The margins of Philippine sugar refiners are being squeezed because
of their productions costs, creating opportunities for companies that
can bring greater efficiency, according to Aida Ignacio, deputy
administrator of the Philippines Sugar Regulatory Administration. First
Pacific owns stakes in the nation’s biggest producer of raw sugar, Roxas
Holdings, and largest refiner, Victorias Milling.
“We are small compared with our regional competitors, and you have to
consolidate if you want to be competitive,” Pangilinan said. “We are
open to acquiring other millers and refiners. It is an investment that
we’d like to grow.”
As part of a free-trade agreement among members of the Association of
Southeast Asian Nations, the tariff on sugar imported among member
states will be halved to 5 percent next year. It was 48 percent in 2010.
Philippine refiners will face intensified competition from those in
Thailand, the world’s largest sugar exporter after Brazil.
Production costs
The cost of producing sugar in the Philippines is about 1,000 pesos
($23) per 50 kilogram bag, according to Ignacio. The average price of
white sugar this year on NYSE Liffe in London has been $456.30,
according to data compiled by Bloomberg. That equates to $22.80 per 50
kilograms.
The Philippines has 28 mills and 11 refiners, according to Ignacio.
Mills make both raw and unrefined sugar, while refineries make only
white sugar.
“The industry expects some mills and refiners may consider
consolidation because they can’t afford the investments” to modernize,
Ignacio said. “Upgrades will bring down production costs and increase
the recovery rate of sugar, which is lower than in other countries,” she
said.
About 90 percent of sugarcane output in the country comes from
farmers with a planted area of less than 5 hectares, Ignacio said.
“There are inefficiencies in the system that you try to fix and in
the process make a profit,” Pangilinan said. “That’s the whole point in business.”
First Pacific, based in Hong Kong, has been building its assets in the industry in the Philippines.
Roxas, Victorias Milling
The company controls 34 percent of Roxas Holdings, and this year it
acquired 7.5 percent of Victorias Milling. Shares of Roxas Holdings have
gained 44 percent this year, while Victorias Milling has more than
doubled in the period.
First Pacific had $2.48 billion in cash and short-term investments as
of Dec. 31, according to data compiled by Bloomberg. Salim, who is also
chairman of Salim Group which holds a 45 percent stake in First
Pacific, has a net worth of $5.5 billion, according to Bloomberg
Billionaires Index.
The positions in sugar companies are in addition to holdings across
other industries in the nation, where it started investing in the 1980s.
First Pacific owns stakes in Philippine Long Distance Telephone, Philex Mining, and Metro Pacific Investments Corporation.
‘Inefficient’
“The Philippine sugar industry will probably give a better yield
because our agriculture is known to be more inefficient than other
countries in the region,” said James Lago, head of research at PCCI Securities Brokers.
“Pangilinan views inefficiency as an opportunity for growth just like
what he has done in his other acquisitions in the Philippines. They
squeeze a good amount of income growth by bringing down inefficiency.”
The company is looking to expand its foods business as consumer
spending in the Southeast Asia is rising, Lago said. Philippine sugar
can supply the group’s food units in Indonesia, he said.
Global sugar demand will reach a record 167.5 million tons in the year ending September, extending two decades of increases as consumption has surged 48 percent, US Department of Agriculture data show.
Global sugar demand will reach a record 167.5 million tons in the year ending September, extending two decades of increases as consumption has surged 48 percent, US Department of Agriculture data show.
First Pacific along with Singapore-based Wilmar International said on
May 15 that they raised their takeover offer for Sydney-based Goodman
Fielder, the maker of Meadow Fresh yogurt, Olive Grove margarine and
Wonder White bread.
First Pacific owns 50 percent of Indofood Sukses Makmur, Indonesia’s biggest noodle maker and owns cane plantation in Indonesia.
“Hopefully, we could become a regional sugar producer with operations in Indonesia and the Philippines,” Pangilinan said.
source : http://www.thejakartaglobe.com
The government will strictly punish sugar importers leaking refined sugar into the consumer market following a recent sugar audit, according to Indonesia's Jakarta Post newspaper.
The Trade Ministry's director general for domestic trade, Srie Agustina, said on Friday that the punishment, which would come by way of cutting import allocation on importers, would be imposed in the second half of this year.
"We will release the figure after we get an assessment of sugar needs from the Industry Ministry," Srie told reporters at her office.
The government found 110,799 tonnes of refined sugar leaked into the end-consumer market in 15 provinces last year, causing a dip in domestic sugar price. That compared to 398,044 tonnes found in last audit in 2011.
Indonesia imported 3.02 million tonnes of sugar last year, and around 2.85 million tonnes had already been delivered as of Nov. 30
- See more at: http://www.sugarinfo.co.uk/news/website_contents/view/1226295#sthash.F2Sa50dZ.dpuf
The Trade Ministry's director general for domestic trade, Srie Agustina, said on Friday that the punishment, which would come by way of cutting import allocation on importers, would be imposed in the second half of this year.
"We will release the figure after we get an assessment of sugar needs from the Industry Ministry," Srie told reporters at her office.
The government found 110,799 tonnes of refined sugar leaked into the end-consumer market in 15 provinces last year, causing a dip in domestic sugar price. That compared to 398,044 tonnes found in last audit in 2011.
Indonesia imported 3.02 million tonnes of sugar last year, and around 2.85 million tonnes had already been delivered as of Nov. 30
- See more at: http://www.sugarinfo.co.uk/news/website_contents/view/1226295#sthash.F2Sa50dZ.dpuf
The government will strictly punish sugar importers leaking refined sugar into the consumer market following a recent sugar audit, according to Indonesia's Jakarta Post newspaper.
The Trade Ministry's director general for domestic trade, Srie Agustina, said on Friday that the punishment, which would come by way of cutting import allocation on importers, would be imposed in the second half of this year.
"We will release the figure after we get an assessment of sugar needs from the Industry Ministry," Srie told reporters at her office.
The government found 110,799 tonnes of refined sugar leaked into the end-consumer market in 15 provinces last year, causing a dip in domestic sugar price. That compared to 398,044 tonnes found in last audit in 2011.
Indonesia imported 3.02 million tonnes of sugar last year, and around 2.85 million tonnes had already been delivered as of Nov. 30.
- See more at: http://www.sugarinfo.co.uk/news/website_contents/view/1226295#sthash.F2Sa50dZ.dpuf
The Trade Ministry's director general for domestic trade, Srie Agustina, said on Friday that the punishment, which would come by way of cutting import allocation on importers, would be imposed in the second half of this year.
"We will release the figure after we get an assessment of sugar needs from the Industry Ministry," Srie told reporters at her office.
The government found 110,799 tonnes of refined sugar leaked into the end-consumer market in 15 provinces last year, causing a dip in domestic sugar price. That compared to 398,044 tonnes found in last audit in 2011.
Indonesia imported 3.02 million tonnes of sugar last year, and around 2.85 million tonnes had already been delivered as of Nov. 30.
- See more at: http://www.sugarinfo.co.uk/news/website_contents/view/1226295#sthash.F2Sa50dZ.dpuf
The government will strictly punish sugar importers leaking refined sugar into the consumer market following a recent sugar audit, according to Indonesia's Jakarta Post newspaper.
The Trade Ministry's director general for domestic trade, Srie Agustina, said on Friday that the punishment, which would come by way of cutting import allocation on importers, would be imposed in the second half of this year.
"We will release the figure after we get an assessment of sugar needs from the Industry Ministry," Srie told reporters at her office.
The government found 110,799 tonnes of refined sugar leaked into the end-consumer market in 15 provinces last year, causing a dip in domestic sugar price. That compared to 398,044 tonnes found in last audit in 2011.
Indonesia imported 3.02 million tonnes of sugar last year, and around 2.85 million tonnes had already been delivered as of Nov. 30.
- See more at: http://www.sugarinfo.co.uk/news/website_contents/view/1226295#sthash.F2Sa50dZ.dpuf
The Trade Ministry's director general for domestic trade, Srie Agustina, said on Friday that the punishment, which would come by way of cutting import allocation on importers, would be imposed in the second half of this year.
"We will release the figure after we get an assessment of sugar needs from the Industry Ministry," Srie told reporters at her office.
The government found 110,799 tonnes of refined sugar leaked into the end-consumer market in 15 provinces last year, causing a dip in domestic sugar price. That compared to 398,044 tonnes found in last audit in 2011.
Indonesia imported 3.02 million tonnes of sugar last year, and around 2.85 million tonnes had already been delivered as of Nov. 30.
- See more at: http://www.sugarinfo.co.uk/news/website_contents/view/1226295#sthash.F2Sa50dZ.dpuf
