COMMODITY SYSTEM ANALYSIS:

SUGARCANE PRODUCTION
IN THE PHILIPPINES

SUBMITTED BY:

Agas, Fernalyn
Albino, Joshua
Asuero, Mila Mea
Llose, Cristeta Mhyann Y.
Sunio, Gerome

SUBMITTED TO:

1ST SEM, A.Y. 2023-2024

JANUARY 2024
Part 1. Introduction

Sugarcane or Saccharum officinarum is a species of grass that belongs to the genus Saccharum,
and family Poaceae. Close to 70% of the world’s sugar is produced from the S. officinarum. Aside
from the other species of sugarcane. Sugarcane originated in Papua, New Guinea spreading
throughout Southeast Asia, India, Hawaii, the Mediterranean and the southern United States. It is
a subtropical to tropical grass comprised of stalks, leaves and a root system. The stalk contains the
juiced that is used to make sugar and is broken up in segments called joints. Every joint consists
of an internode, or space between nodes, and a node, or band. The node has the leaves linked to it.
Different types of sugar cane have different joint and stalk diameters and lengths. The plant's base
root system draws water and nutrients from the earth while also anchoring the grass to the soil.
The sugar cane will recover from the cut if the top portion of the plant is removed but the roots
stay in place. The plant may take anything from six to twenty-four months to reach maturity.
The history of the Philippine sugar industry is rich and exciting. Sugarcane cuttings were
introduced to Mindanao by vessels from the Celebes approximately two to four thousand years
prior to the Christian era, marking the beginning of the business. These plants eventually moved
further north, reaching the Visayan Islands and Luzon. As a result, by the early sixteenth century,
when Europeans first set eyes on the archipelago, sugarcane plants were present in a variety of
locations where the locals had tilled the soil.
According to the Department of Agriculture, “the sugarcane industry is one of the principal
drivers of the Philippines economy. A major traditional export crop and a principal source of
foreign exchange earnings.” The Sugar Regulatory Administration or the SRA, currently estimates
that there are around 88,000 sugarcane farmers in the Philippines, 85% of which farm less than 5
hectares.

The common varieties of sugarcane grown in the Philippines include VMC 84-524. VMC 84-
947, VMC 86-550, VMC 88-354 and PHIL 99-1973. Early sugarcane farmers in the Philippines
were dependent on introduced varieties for cultivation since the early 1900’s. However planting
of introduced varieties as commercial crops was practically eliminated in 1979 as the locally
bred canes out-yielded introduced foreign varieties.
Part II. The Agribusiness Sectors

A. INPUT SUBSYSTEM

The sugarcane industry in the Philippines is vast and scattered throughout the country. This

part of the agribusiness sector provide the farmers what they need to operate. This includes

the following:

1. Seed- There are present companies or institutions that provide the cultivars. Such as

the PHILSURIN (Philipine Sugar Research Institute Foundation, Inc.). On theoter

hand, some cities provide their farmers with the seed that they need. Santiago City gives

free seeds to their farmers respective to their farming area.

2. Machinery- The use of machinery on sugarcane farming is highly dependent. From the

land preparation, transportation.

a. Animal Drawn Plow- Farmers traditionaly

rely on animal to get their job done. Even the tillage

of soil is done by anials such as the carabao.

b. Animal Drawn Cart- To transport

their crop, they also make use of

farm animals.
 c. Tillage Cultivators- to keep up with the modern
technology, farmers now make use of machineries and
tractors for plowing their fields.

d. Tractors- also known as kuliglig, farmers use this

machinery for hauling and transporting their commodity
from one place to another.

e. Dadapilan- farmers use this machine for their

processing steps.

3. Chemicals- The use of chemicals to sugarcane is limited. As some chemicals could be

potent enough to actually kill the plant. Here are some chemicals that they can use:
a. 24D- 2,4-D is one of the oldest and most widely available
herbicides and defoliants in the world, having been commercially
available since 1945, and is now produced by many chemical companies
since the patent on it has long since expired. It can be found in numerous
commercial lawn herbicide mixtures, and is widely used as a weedkiller
on cereal crops, pastures, and orchards. Over 1,500 herbicide products
contain 2,4-D as an active ingredient.
 b. Diuron 80 WP- A systemic and selective herbicide, absorbed
principally by the roots, with translocation acropetally in the xylem.

B. PRODUCTION SUBSYSTEM
This subsystem involves the actual cultivation and harvesting of sugarcane. It includes
activities such as:
a. Land Preparation:
1. First ploughing is given immediately after the
harvesting of previous crop with mould board
plough or tractor.
2. The land is exposed to sun for one to two
months.
3. The clods are crushed with clod crusher or
Norwegian harrow.
4. 35-50 tons FYM/ha. is added to soil.
5. Second crosswise ploughing is given by wooden plough.
6. 2-3 harrowing are given and soil is brought to clod free tilt.
7. Land is leveled with the help of planker and seed bed is prepared.

b. Planting:
1. Select healthy sugar cane plants. Sugar cane is easiest to find during the harvest season,
in late summer and early fall. If you can't find sugar cane plants at your local garden
center, it can often be found at roadside stands and farmer's markets. Asian groceries also
often stock sugar cane plants.

 Look for long, thick stems, which are more likely to produce healthy new plants.
  The stems have joints, and a new plant will sprout from each one. Keeping this in mind,
buy as many stems as you need to produce the size crop you want.
2. Split the sugar cane stems into foot-long pieces. Leave three to four joints per piece, to
make it more likely that each piece will produce a few sprouts. If the stems have any
leaves or flowers, go ahead and remove them.
3. Moisten the furrows. Use a hose to lightly moisten the furrows to prepare them for the
sugar cane. Make sure the water has drained and there are no remaining puddles before
you plant.
4. Plant the sugar cane. Place the stems horizontally into the furrows. Cover them with
soil. Do not plant stems upright, or they will not grow.
c. Growing
The whole duration of sugarcane (Saccharum spp. hybrid) production and development
are usually divided into four stages such as germination, tillering, elongation, and
maturation. Sugarcane growth and development are closely related to environmental
factors such as temperature, sunshine, water, air, and nutrients. For commercial sugarcane
production, drought, waterlogging, and frost often severely reduced cane yield.
Appropriate field management such as fertilization, irrigation, drainage, and weeding at
the early growth stage is very important for the yield by ensuring the rational number of
plants through good germination and tillering regulation. Water supply, warm weather,
and intense sunshine are also important for the elongation stage. During the processing
maturation stage, cool and sunny weather with high temperature differences between day
and night is beneficial to sugar accumulation in sugarcane.
d. Harvesting
Harvest takes place rain or shine, and the often muddy sugar cane fields necessitate
harvesters mounted on tracks instead of wheels which get stuck in the muck. Moving
through the rows, the harvesters stand up the cane and cut it a few inches above the
ground. Sugar cane is a perennial grass, meaning it doesn’t have to be replanted every
year. A new shoot will sprout from the cut stalks of cane for the next harvest. Typically,
farmers will harvest crop from one planting for 3-5 years. Once the cane is cut, rotating
arms strip off leaves and undergrowth and move the stalks though cutters that chop them
into smaller pieces. A conveyer arm transfers the stalk pieces to a tractor pulling a large
hopper-style trailer.
C. PROCESSING SUBSYSTEM
Processing and growing sugarcane is not limited to large scale industries, small scale
farmers also processed their locally grown sugarcane.
1. Commercial Scale- industries big and small process sugarcane for table sugar
and ethanol.
a. Washing and Initial Preparation. As soon as the sugar cane or sugar
beets arrive at the factory, they are washed extensively. Washing can
occur on belts that are sprayed with water or in flues that are full of water.
Rotating drums are often used as washing stations. Water is sprayed into
the drum and product rotates within the drum, rubbing against itself to
remove dirt. After washing, the sugar cane or sugar beets are conveyed
into the factory using screws or belts. The sugar cane is crushed using
swing-hammer shredders or heavily grooved crusher rollers. Sugar beets
are cut using slicing machines, which tear them into strips smaller than
French fries, called cossettes. The cossettes are soaked in hot water tanks,
while the crushed sugar cane is sprayed with hot water. Both processes
serve to swell the plant cells in preparation for extraction.
b. Juice Extraction. The sugar cossettes are pumped into the bottom of 10-
to 20-meter-tall tanks. A rotating shaft in the center transports the sugar
beet strips upwards against the downward flow of water as the sugar is
extracted. For sugar cane, milling is used to extract the juice. A series of
five mills compresses the sugar cane fibers and separates the juice from
the bagasse, which can be used later as a fuel source. The initial juice is
dark green in color and is acidic and turbid. The juice is collected in large
vats and the sugar concentration is measured.
c. Purification of Juice. Tall towers, 10 to 20 meters high, are used to
purify and lighten the color of the cane juice. The juice is introduced at the
top of the tower and sulfur dioxide vapor is introduced at the bottom. The
sulfur dioxide rises up through the tower in a process called sulfitation.
Gas is added at 120 to 200 pounds per million pounds of juice.
Carbonation or alkalization is used to further separate the soluble non-
sugar materials from the sugar juice. Carbonation employs calcium
carbonate or calcium sulfite to aid in precipitation. The juice is heated to
denature the protein content and is then mixed with a slurry of calcium
 hydroxide, called milk of lime. Carbon dioxide gas bubbles can also be
introduced in this step to lower the alkalinity and precipitate the
carbonation sludge, which is filtered to purify the juice.
The clarification process typically takes several hours. At the end, the
sludge is removed from the bottom of the tank and the juice is removed
from the top. Secondary filtration is used to extract any remaining sugar
from the sludge. This produces a material called mud, which can be used
later to fertilize fields.
The clarified juice is then boiled in a series of vacuum evaporators until it
reaches a concentration of 50%–65% sugar. Each subsequent evaporator
in the series has a higher vacuum pressure than the previous evaporator,
resulting in the sugar syrup boiling at progressively lower temperatures as
it moves through the process. Sediment is skimmed off the top of the
evaporators using paddle skimmers, producing a thick, nearly colorless
sugar syrup.
d. Crystallization. During the next step in the manufacturing process, a
single-stage vacuum pan is used to evaporate the syrup until it is saturated
with sugar crystals, which are formed through a process called seeding. A
milky solution of pure sucrose suspended in alcohol and glycerin is the
seed that is slowly added to the syrup. The small grains of sugar present in
the solution serve as nuclei, helping to draw out the sugar in solution and
convert it into crystals. As the mixture is boiled in a vacuum pan, water
evaporates and sugar crystals continue to grow into a paste called
massecuite, a dense mixture of syrup and sugar crystals. This mixture is
then transferred into a large container called a crystallizer, where the
massecuite is slowly stirred and cooled, continuing the crystallization
process.
e. Centrifugation. To separate the massecuite into sugar crystals and
molasses, the massecuite is added to a high-speed centrifuge. The
centrifuge, which rotates at 1,000 to 2,800 revolutions per minute,
contains a perforated metal cylindrical basket. During centrifugation, the
molasses passes out of the lined centrifuge basket and is drawn to the
outside of the centrifuge where it is removed and sent to storage tanks.
 The sugar is retained in the lined centrifuge basket. Spring water is used to
wash the crystals as they are centrifuged.
f. Drying and Packaging. The damp sugar crystals are dried in large, hot air
dryers, reaching a moisture content of as low as 0.02%. Next, the sugar is
gently tumbled through heated air in a granulator. The dried crystals are
then separated into different sizes through vibrating screens and placed
into storage bins. Finally, the sugar is packaged for the consumer.

2. Small Scale Farmers

This includes the local farmers that grow and processed their own commodity.
There are several methods how the farmers processed their commodity

1. Cooking

a. Juice Extraction. Sugarcane is passed through huge metal

cylinders turning around with the help of a machinery or farm
animal. This processed is done to extract the raw juice from the cane.

b. Simmer- The raw juice is poured into a

large metal vat over a fire to simmer for 3-4
hours.

c. Patupat Making- leaves of

silag and/or coconut is weaved to
make a pouch like shape. It is then
filled with soaked sticky rice halfway.
 d. Cooking- Halfway through simmering the cane juice, the
patupat is also added to the vat and cooked the rest of the hour.

e. Product Packing

 Tagapulot- when the juice is

reduced to a sticky and almost grainy
consistency, it is transferred to coconut
shells to cool and firm up.

 Pulitipot/molasses- when juice is reduced to a

sticky consistency, it is transferred to jars and or bottles to
be used for spreads, etc.

 Muscovado- when the juice is reduced to a grainy

consistency, it is transferred to a flat stainless surface to
cool down. During cooling down, it is tossed around by
a spatula and overtime become sugar shaped.
2. Fermentation

a. Juice Extraction. Sugarcane is passed through huge metal

cylinders turning around with the help of a machinery or farm
animal. This processed is done to extract the raw juice from the cane.

b. Storage/Fermentation- The raw juice is then transferred to

drum containers in an open area, for 1-2 months to ferment into
vinegar.

c. Bottling- The fermented juice is then transferred to

bottles of different sizes, some even with chilis to make
chili vinegar.
D. MARKETING SUBSYTEM

1. Small Scale Farmers- locals have talipapa where they sell their products.

2. Industrial Scale

The global market for cane sugar is fragmented, owing to the presence of large regional
and international players in the market. The major players are Global Organics, Ltd., DO-IT
Food Ingredients BV, Louis Dreyfus Company B.V., Louis Dreyfus Company B.V., and
Raízen. Emphasis is being laid on the marketing strategies like merger, expansion,
acquisition, and partnership of the companies along with new product development adopted
by the leading market companies to boost their brand presence among consumers. Other than
expansion, investment in branding sugar products is also another strategy adopted by major
players.

Sugars are supplied or bought by corporations as wholesale which will then be retailed to
their respective stores. The products they buy vary from Raw, Refined and/or organic or
specialty sugar.
E. SUPPORT SUBSYSTEM

For so many decades without government support on infrastructure development and

other major support programs, the sugarcane industry development act (SIDA) of 2015 was
passed (RA 10659) which provides mandated programs and mandated appropriations for the
sugarcane industry. Block farming program is institutionalized and supported under the
SIDA; socialized credit is mandated to support crop financing, farm mechanization and other
farm support services; scholarship program to generate the necessary expertise for the
improvement of farm productivity and efficiencies of production facilities is supported; R, D
& E activities are intensified and infrastructure development is also funded under the law.
Other agencies of government are also mandated by the law to support the programs for the
sugarcane industry. The law was passed through the initiatives of Congressman Alfredo
Benitez and Senator Cynthia Villar.

Santiago city provides training

PART III. INTEGRATED ANALYSIS

PART IV. CONSLUSION AND RECOMMENDATIONS

and free seeds for the farmers.