news/updates
Ethanol production to boost sugar sector
By Abigail L. Ho
Philippine Daily Inquirer
January 21, 2008
MANILA, Philippines--ETHANOL production in the country will not only present a new revenue stream to farmers but also compel them to use their lands and available resources more efficiently, according to the Sugar Alliance of the Philippines, an umbrella organization of sugar producers.
In a statement, the group said the need to produce ethanol feedstock to help the country meet the mandated 5-percent ethanol blend by next year would help the sugar industry expand in the longer term.
The biofuels program, the group said, was expected to give sugar farmers an additional revenue stream. This would encourage them to better utilize their available resources.
"Moreover, the areas being eyed or developed for bio-ethanol feedstock production are mostly unproductive or marginal lands. Many of these lands have remained idle or unutilized.
Converting them into productive use for biofuels will increase value-added agriculture and spur economic development in rural areas," SAP said.
In areas where biofuel processing plants would be located, the group said thousands of new jobs would be generated, paving the way for economic growth.
The country would also be a step closer to energy independence, easing its reliance on imported fossil fuels and generating dollar savings in the process.
Responding to the food versus fuel debate, SAP said sugar producers had no intention to stop sugar production and shift their focus to ethanol, assuaging concerns of a possible shortage in domestic sugar supply.
"Sugar producers have even increased their output well beyond the local demand to douse fears expressed by some sectors that the excitement on biofuels might cause sugar producers to shift their focus and resources from producing sugar to producing biofuels," the group said.
"This food security issue will not happen in so far as the sugar industry is concerned. Although biofuels offer diversification opportunities, sugar is and always will be the industry's main product," it added.
The industry has actually committed to boost domestic sugar production, undertaking research and development activities to enhance existing production facilities.
