NAME: Zhyra Mae P.

Villanueva
SECTION: BSHM - 2103

Impact of Sugar Shortage on Ice Cream Business

I. Overview
Sweets products are one of our most loved foods. May it be drinks,
chocolates, candies and more. We have been really into sweets since our
childhood and sometimes our parents will scold us for too much of it. But
can we still enjoy it if there is no sugar supply available? Can we afford it if
sugar will be scarce from now on?
The sugar shortage in the Philippines affected many industries in
the country. Since sugar is one of the main components in Food and
Beverages, many will suffer from it, specifically the ice cream industry that
we all love. Many are dependent on sugar and due to the shortage of
supply imports are inevitable. Prices on the products that use may rise
and worse can cause inflation.

II. Problems
1. Key issue in this case is that the sugar shortage affects the retail
markets. The price surged to 65.82 pesos per kilogram in April this
year, up from 53.37 pesos the same time last year , Yap, 2022 at
Bloomberg.
2. No or delayed importation of sugar may cause unstable supply that
can't keep up with demand. Marcos rejected the proposal to import
300,000 metric tons of sugar despite the increasing prices of the
basic commodity due to supply constraints, Cordero sain on GMA
NEWS, Sep 20, 2023.

III. ALTERNATIVE SOLUTION

Importation of sugar is a short-term alternative solution such as the
ice-cream business like CARMEN’S BEST. They can import the difference
of the supply so that they can maintain their inventory for production. Also
by stocking ahead of time for businesses can prevent this unforeseen
situation. It can keep on demand for quite some time but since it is short-
term it is limited.
Based on MALAYA BUSINESS INSIGHT, we can consider Stevia
as an alternative to traditional sugar as it is 300x sweeter and more
healthy than traditional refined sugar. It is not only limited to household
use but also can be used in business where their products key ingredients
are sugar. But in the long term perspective, we hope that there is a boost
to our local sugar agriculture that can meet the nation's demand so that
we no longer rely on imported sugar.

IV. EVALUATION OF ALTERNATIVES

Importing isn't that bad as it seems. Importing are our mostly
alternatives not only in sugar but also in any agricultural products.
Importing sugar can bridge the gap between supply and demand that can
stabilize its price for the benefit of the economy and consumer. The
downside of too much importing sugar is that such a solution may further
weaken the country’s sugar production and hurt farmers because of more
imports coming in.
The absence of regulations governing the quantity and distribution
of sugar supply within the country poses the threat of saturating the
market with low-cost, heavily subsidized imported sugar. This situation
could prove detrimental, first to sugarcane farmers, and subsequently to
consumers.This scenario has the potential to lead to dire consequences,
including financial ruin for already struggling sugarcane farmers,
substantial job losses within mills and farms, and the emergence of
hunger and social unrest in rural areas, Enrique Rojas said on PhilStar.
Instead of resulting in more importation, the government must prioritize the
development of our agricultural products, specifically our main
consumption in daily life such as sugar, rice, etc.
Good news is that SRA pushes to restore the P2-B sugar industry
development fund. The Sugar Regulatory Administration (SRA) is
advocating for the reinstatement of the PHP2-billion budget to support the
execution of the Sugar Industry Development Act (SIDA). This will ensure
the overall development of the nation's sustainability on sugarcane
production. The budget not only limited supply but also to encourage more
farmers to produce more of it as it was supported by the government. The
SIDA or Republic Act 10659, enacted in 2015, by this law will help farmers
maximize their income, maximize efficiency on machinery and improve
productivity.

V. RECOMMENDATION/S
The consumer can consider the use of Stevia as an alternative for
sugar may it be a short-term and long-term solution. It is not common for
industry to use but it is more healthy, sweet in comparison to sugarcane or
commonly used refined sugar. It is also cost effective to produce an ice-
cream since it is 300x more sweeter than refined sugar. Also, it has zero
calories and does not spike blood sugar. Government may also consider
this because there are more ways to produce sweets not only in our
sugarcane. We need to become diverse in our agricultural products and
explore more to expand it. Invest in our research and development in
agriculture to improve our nation's sustainability. Now, some industries
are using stevia as a switch to traditional refined sugar such as the
restaurant, food industry and especially ice-cream industry. People can
now enjoy their favorite dessert without worrying about their blood sugar to
spike because of its properties.

VI. Possible Results and Obstacles to Implementation

Introducing new agricultural products may pose a big obstacle
since our farmers are not used to planting Stevia leaves. Many of our
farmers are still not familiar with it and the implementation of it may not be
soon possible. Our local farmers invest in sugarcane planting and the
government invests in machinery. Sugarcane planting is widely planted in
many regions in the Philippines and the necessary knowledge and
equipment are still lacking when planting Stevia leaves. But recently
Bulacena farmer started the planting of stevia which is a good start to
promote it. The possible result may not be optimistic yet and it may take a
slow process to substitute refined sugar since farmers are not yet familiar
with it.

VII. REFERENCES
Rivera, D. (2023, February 14). SRA lowers sugar production estimates
for 2023. Philstar.com.
https://www.philstar.com/headlines/2023/02/15/2245027/sra-lowers-sugar-
production-estimates-2023

Yap, C. (2022, June 22). Sugar shortage hits the Philippines as food
inflation woes Mount. Bloomberg.com.
https://www.bloomberg.com/news/articles/2022-06-22/sugar-shortage-
hits-the-philippines-as-food-inflation-woes-mount?
leadSource=uverify+wall

TED CORDERO, G. N. (2022, September 20). No sugar importation seen

until early 2023, says Sra. GMA News Online.
https://www.gmanetwork.com/news/money/companies/845434/no-sugar-
importation-seen-until-early-2023-says-sra/story/

Malaya Business Insight(2022, December 4). Stevia, a solution to the

sugar shortage dilemma in ph. Malaya Business Insight | The online
version of Malaya Business Insight. Published at the same time with the
same content for the major sections.
https://malaya.com.ph/news_living/stevia-a-solution-to-the-sugar-
shortage-dilemma-in-ph/

Rivera, D. (2023b, March 19). “influx of imported sugar detrimental to local

industry.” Philstar.com.
https://www.philstar.com/business/2023/03/20/2252877/influx-imported-
sugar-detrimental-local-industry#:~:text=%E2%80%9CIt%20will
%20eventually%20bankrupt%20the,the%20hinterlands%2C%E2%80%9D
%20he%20said.

Guadalquiver, N. (2022, August 25). SRA pushes to restore P2-B sugar

industry dev’t fund. PHILIPPINE NEWS AGENCY.
https://www.pna.gov.ph/articles/1182212

TAN, Y. (2022, May 28). Bulaceña establishes the Philippines’ first stevia
farmYve. Manila Bulletin. https://mb.com.ph/2022/03/28/bulacena-
establishes-the-philippines-first-stevia-farm/