Скачать или смотреть Business and Leisure | BIZWATCH: Coca Cola PH Problems with Local Sugar Farmers

With the increased taxes on sweetened beverages because of TRAIN, sales of soft drinks and other sweet beverages are expected to decline significantly because of increased prices. Now, Coca Cola Philippines is complaining that our sugar farmers are not selling enough sugar to the beverage company.

Previously, Coca Cola FEMSA Philippines was importing high fructose corn syrup for their soft drinks. Sugar stakeholders complained about this because it affected their sales, so Coke agreed to abandon the importation of high fructose corn syrup. Instead, the company committed to buy sugar from our local farmers. The present situation now has Coca Cola Philippines in a bind.

Because sugar prices in the mill gate have improved, our local sugar farmers are now holding on to their produce because of speculations that sugar prices will shoot up. According to Coca Cola Philippines, the sugar stakeholders are not releasing their committed volume to the beverage company.

Socioeconomic Planning Secretary Ernesto Pernia, whose attention was called by the beverage company, verified with Agriculture Secretary Manny Piñol if there is a shortage of sugar. The Agriculture secretary said there was none and promised Coca Cola Philippines to take up the issue with the sugar farmers who have a commitment to sell their produce to the company. Secretary Piñol called this a case of opportunism by the sugar industry.

For its part, the Sugar Regulatory Administration sad that Philippine sugar production is adequate and the industry can meet domestic demand as well as its US quota. Its target is 2.27 million metric tons despite the lower output this year.

As of this month, local raw-sugar production declined by 11 per cent compared to the same period last year.