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March 13, 2014

Asia, seen as the next largest sugar importer

Asia is projected to be the next largest single sugar importer in the world in the near future. 
 
Speaking to executives of sugar producer Roxas Holdings, Inc. (PSEi: ROX) last month, Robert Day, managing director for Asia of international trading firm ED&F Man, said the region is expected to import huge amounts of sugar in the next few years to meet rising demand in the region. 

Mr. Day added that this provides opportunities for sugar producers like Roxas Holdings to establish a stronger presence in the region. 
 
He also urged the listed producer to act quickly and seize the opportunity to broaden Roxas
Holdings’ market share by preparing for this scenario. 
 
Mr. Day noted that crop year 2013-2014 will be the fourth consecutive year of global sugar surplus, with production and consumption all over the world up at 50 million metric tons
(MMT) to 60 MMT.
 
“The surplus-deficit in sugar since the mid-2000s has become more extreme. We are confident that volumes will increase further and that market share will also rise. We hope ED&F and RHI can capitalize on the short-term opportunities, not only in the areas of raw and refined sugar but also in ethanol,” Mr. Day explained. 
 
He said that a closer coordination between sugar producers and millers with the Sugar
Regulatory Administration is crucial to ensure that short-term opportunities will translate to significant trading gains for the industry and the government. 
 
RHI President & CEO Renato C. Valencia said it is imperative for sugar producers and millers to get the bigger picture on the global trading of the commodity to allow them to take appropriate positions and avoid incurring losses. 
 
Mr. Valencia also noted that the Group has started putting in place measures that will secure its position not only in the Philippines but also in Asia, especially with the challenge of the tariff reduction on sugar to 5% next year from 48% in 2010.


Roxas Holdings, Inc. (RHI), a bio-sugar and bio-energy company, is the largest integrated sugar business in the Philippines. It manages sugar miller/refiner Central Azucarera Don Pedro, Inc. in Nasugbu, Batangas; sugar miller Central Azucarera de la Carlota, Inc.; ethanol producers Roxol Bioenergy Corporation in La Carlota, Negros Occidental and San Carlos Bioenergy, Inc. in San Carlos, Negros Occidental; and RHI Agri-business Development Corporation. It also holds 45% of affiliate Hawaiian-Philippine Company in Silay, Negros Occidental.

RHI is listed on the Philippine Stock Exchange (PSEi: ROX). Further information can be obtained by visiting the web at www.roxasholdings.com.ph