Major topics discussed by SRA resource persons were : Mill Performance of
Central ... papers in the 2012 In-House Review of SRA Completed Researches.
... applied and unapplied Phil 99-1793 was 41.50 LKg/Ha for strain 10071 and
31.84 ...
Department of Agriculture
SUGAR REGULATORY ADMINISTRATION
ANNUAL REPORT
2012
Table of Contents EXECUTIVE SUMMARY HIGHLIGHTS OF ACCOMPLISHMENT Agricultural Industrial Extension Regulatory – Luzon / Mindanao Regulatory - Visayas Planning and Policies Internal Audit Legal Administrative and Finance - Luzon /Mindanao Administrative and Finance - Visayas GAD ANNEXES
Highlights of Accomplishment 1st Female to Chair ISO. SRA Administrator, Maria Regina Bautista-Martin became the first woman chair of the two-day International Sugar Organization seminar in London in November 27, 2012 which tackled “Sugar Crops, Unleashing Growth Potential”. The seminar focused on the future role of the main movers, Brazil, Thailand, India and the EU and their strategic and political options, the impact of the changing role of the trade houses and Africa’s sugar industries. ASEAN Sugar Alliance (ASA). The Philippines, India and Thailand, agreed in principle to form the ASEAN Sugar Alliance (ASA) to strengthen their respective industries for the coming ASEAN Economic Community in Year 2015. The ASA will be the venue for exchanges and collaboration on sugarcane, sugar and related products researches among alliance members. This is in response to the changing business environment – trade, growing demand for sugar, advances in farm and mill technologies and changing weather patterns. ASA’s mission focuses on the important role of sugarcane as a raw material for food and energy, the cooperation on sugar related business development, and the support to the government sector for the upcoming ASEAN Economic Community.
1st Philippine Bioenergy International Conference. The 1st Philippine International Bioenergy Conference was held at the Manila Hotel with the President, the DA Secretary, Energy Sercretary and Administrator Bautista-Martin who unveiled the One Stop Shop booth of the National Biofuels Board to formally open the conference. The conference took stock of the country’s initiative to develop the biofuel sector aimed at attracting biofuel investors to promote energy sufficiency and environmentally friendly biofuels, through production and utilization of bioenergy for the greater economic advantage and development in the Philippine rural sector.
Sugarcane Block Farm. In January 20, 2012 The DA, SRA and DAR launched the “Sugarcane Block Farm” project in the Don Pedro MDDFI Compound in Tuy, Batangas. The aim of the project was to increase the productivity of small farms and improve farmers’ income through consolidation of small farms into 30-50 hectares and adopt economies of scale to make farm operations more cost-efficient thereby increasing farm productivity and profitability. The block farm project of the DA-SRA-DAR, in partnership with sugarcane farmers particularly the Agrarian Reform Beneficiaries (ARBs), Mill District Development Committees (MDDCs), sugar mills, LGUs and other sugar industry stakeholders, was targeted to be implemented in all sugarcane areas in the country. To date, 29 block farms have been organized while four (4) are operational. The four (4) operating block farms are located in Balayan, Nasugbu and Lian, Batangas.
Outreach Program for the Sugar Industry (OPSI). As part of the capability building program for cane farmers and Agrarian Reform Beneficiaries (ARB’s) engaged in the block farming project, OPSI seminars were conducted in Batangas, Pampanga, Tarlac and Cagayan by the Extension Services Unit of RDE. The OPSI seminars focused on Sugarcane Production and Organization and Financial Management. Major topics discussed by SRA resource persons were : Mill Performance of Central Azucarera Don Pedro (CADP) and Batangas Sugar Mill Inc. (BSCI), Quedanning and Sharing System, Sugar Milling and Processing, Growth Stages of Sugarcane, Soils and Plant Nutrition, Liming and Fertilization, Weeding and Cultivation Practices etc. The aim of the OPSI is to enable farmers to have access to new methods and current farming trends and increase farm productivity and income.
Gawad Saka. The Gawad Saka Awards is an annual project of the Department of Agriculture to recognize the outstanding and exemplary achievements in the field of fisheries and agriculture. Chosen as Outstanding Sugarcane Farmer for 2012 was Jaime P. Sillador who hails from Cotabato. He was a awarded a cash prize of P150,000 by the SRA for his achievement in sugarcane farming. In year 2010, his quedan net sales were Php 806,494.60 and cost of production was Php 302,200 and net income was Php 504,294.60. For 2011, his net sales was Php 535,668, production cost was Php 225,200 and net income was Php 310,468.
AGRICULTURAL RESEARCH AND DEVELOPMENT SRA operates two (2) agricultural research stations in LAREC and LGAREC located in Pampanga and Negros Occidental. The research center’s major projects are focused on variety improvement through breeding and propagation of high quality parental stocks, pest and diseases management through biological and chemical control, soil fertilization and plant nutrition and cost efficient methods of enhancing farm productivity. The research centers implemented 66 agricultural research projects for CY 2011-2012 . Ten (10) new projects were laid-out, twentyeight (28) were completed and twenty-eight are continuing projects. Table shows the breakdown of projects implemented per research station : RESEARCH STATION LAREC LGAREC Total
NEW 10 10
ON-GOING 7 21 28
COMPLETED 8 20 28
LUZON AGRICUTURAL RESEARCH & EXTENSION CENTER ( LAREC)
Phil 2004-0081 which was ecologically tested in LAREC was recommended for commercial release. The paper entitled “Performance of Selected Phil 2004 Series in Luzon and Mindanao” was selected as one of the three best papers in the 2012 In-House Review of SRA Completed Researches. The paper entitled “Effects of Stubble Shaving on Growth and Yield of the Ratoon Crops of Sugarcane” presented during the PHILSUTECH Convention was adjudged third best paper. Conducted two (2) efficacy trials of fertilizer products with the Planters Products Inc. and Ferex Inc.
LA GRANJA AGRICUTURAL RESEARCH & EXTENSION CENTER (LGAREC) Outputs of the Commercial Hybrid Production Program :
Produced 290 arrows from Phil 2011 series Breeding Program 778 promising clones from the Single Seedling Plot Test for Phil 2010 series were selected as entries to the row test. 350 promising clones from the Row Test of Phil 2009 Series were forwarded to the Multiplication and Disease Screening Stages. 218 found resistant to smut were recommended for further multiplication and screening for reaction to mildew. All 187 test clones from the Phil 2008 series were resistant to downy mildew at plant cane and ratoon cane stages and recommended for multiplication and testing to smut and downy mildew The top 30 smut and downy mildew resistant clones from Phil 2008 Series multiplication and Disease Screening Stages were considered as entries to the Preliminary Yield Test and further propagated and verified for reaction to smut and simultaneously screened for leaf scorch and yellow spot diseases. Eighteen (18) clones at plant cane and 13 clones in the ratoon crop of Phil 2007 series were rated resistant to smut at Preliminary Yield Test (PYT) stage. All 30 test clones at plant cane and 29 clones in the ratoon of Phil 2006 series were rated resistant to smut at PYT stage. Eight (8) clones from the PYT for Phil 2007 Series entered the Ecologic Test conducted in 5 locations. Phil 2005-0645 and Phil 2005-1197 were recommended for commercial propagation and release by the Variety Committee. Of all the varieties tested in the Ecologic Test, Phil 2005-0645 and Phil 2005-1197 performed comparably with Phil 8013 and the local control in tonnage, sucrose content and sugar yields in all five test locations. 1,289 sugarcane accessions were planted in the Germplasm Collection from November 2011 to October 2012. 820 clones/varieties were partially characterized according to brix, stalk diameter and tiller number.
Outputs of the Production Technology Generation Program:
Application of various strains of Acetobacter with or without mudpress, on Phil 99-1793 showed the highest mean tonnage of 74.05 TC/Ha when applied with 2 tons mudpress + BNF strain 10071. Mudpress application gave significantly higher tonnage mean of 70.64 TC/Ha compared with no mudpress (65.14 TC/Ha.). Sugar yield difference between mudpress treated and untreated was 8.16 LKg/Ha. Sugar yield difference between Acetobacterapplied and unapplied Phil 99-1793 was 41.50 LKg/Ha for strain 10071 and 31.84 to 37.03 LKg/Ha. for the other three strains of Phil 99-1793.
Application of Acetobacter to Phil 99-1793 and Phil 2000-2569 one and two months after planting (MAP) resulted to significantly high sugar mean of 170.47 LKg/Ha against the control with 140.3 LKg/Ha.
The efficacy test of rock phosphates from different sources in Negros Occidental applied to sugarcane as source of P fertilizer gave comparable results with either 18-46-0 or 16-20-0 in terms of TC/Ha, LKg/TC and LKg/Ha.
On the effect of Mycorrhiza and some biological nitrogen fixers, Phil 99-1793 applied with either recommended rate of NPK or ½ NP+full K + Mycorrhiza gave significantly higher mean tonnage (119.68 TC/Ha) and mean sugar (267.99 LKg/Ha) than without Mycorrhiza (112.11 TC/Ha) and 251.44 LKg/Ha, with a difference of 7.57 TC/Ha and 16.55 LKg/Ha.
Improvement on tonnage and sugar yield of Phil 99-1793 with the applications of Mycorrhiza and BNFs was due to improvement of the yield parameters such as length, diameter and weight per stalk as well as the number of millable stalks.
On the evaluation of ratoon performance of six new HYVs, Phil 94-0913 obtained the highest 4-year average tonnage of 81.48 TC/Ha, the highest 4-year average sugar yield of 174.30 LKg/Ha. and obtained the highest total net benefit of Php 418,487.80 in four croppings compared to the other new varieties.
Phil 97-3933 had the best in performance among the test varieties in 1st and 2nd ratoon due to lowest percentage reduction in cane and sugar yield and an increase in sugar rendement.
On the effect of Nitrogen enhancers (NEB) on sugarcane growth and yield Phil 99-1793 obtained higher tonnage when applied with urea+NEB compared to urea alone. However, sugar rendement (LKg/TC) of Phil 99-1793 did not differ among the various levels of urea and urea + NEB treatments.
Evaluation of the ratoon performance of the five latest new HYVs indicated that Phil 2000-2569 had the highest cane tonnage of 109.61 TC/Ha while Phil 99-1763 had the highest sugar yield of 228.33 LKg/Ha and highest sucrose content of 2.33 LKg/TC, comparable with Phil 2000-0791 (2.20LKg/TC) and Phil 2002-0359 (2.17 LKg/TC).
On the evaluation of BNF strains on micropropagated plantlets, BNF inoculated canepoints did not give statistically significant increase in tonnage, LKg/TC and sugar yield.
On the efficacy of commercially available alternative fertilizers, Better Yield in combination with recommended rates of inorganic fertilizers gave the highest return on investment (ROI) both in plant crop (169%) and ratoon crop (232%) . ROI on the recommended fertilizer rate was 149% at plant crop and 237% in the ratoon crop.
Evaluation of HYVs performance on poorly drained soils showed that Phil 2000-2569 gave the highest TC/Ha and LKg/Ha in both poorly and well drained soils compared to Phil 99-1793, Phil 93-1601, Phil 97-3933 and Phil-98-0255.
N and P fertilizers based on soil analysis when supplied by N & P enhancers (NSN and Avail) gave the highest tonnage of Phil1793 (96.87 TC/Ha) and highest sugar yield of 213.96 LKg/Ha. Sugar rendement did not differ among treatments.
There are two (2) on- going muscovado projects as a result of ccordination with the Western Visayas Agricultural, Regional Research and Development and Extension Consortium (WESVARRDEC):
Benchmarking and Analysis of the Supply Chain of Organic Mscovado in the Province of Antique Technology Demonstration of Organic Muscovado Production in Negros Occidental and in Antique PRODUCTION SUPPORT SERVICES Production and Distribution of Planting Materials. LAREC produced and distributed 101.3 lacsas to 18 farmer beneficiaries while LGAREC produced and distributed 529.79 lacsas to the following recipients: 161.90 to MDDC nurseries and adopted communities,
286.5 were sold to 67 planters, 72.99 were planted/replanted at the SRA propagation/commercial demo fields and 8.4 lacsas were utilized for research purposes. A total of 193,130 hardened micropropagated plantlets were distributed to different beneficiaries in the mill districts: 137,550 were sold; 35,580 were distributed to OPSI participants and MDDCs for demo purposes and 20,000 were used for propagation. LAREC harvested 1,868.17 tons cane which generated 1,918.42 LKg sugar and 53,834.42 Kg. molasses for SRA, while LGAREC generated 139.41 LKg “A” sugar, 1,254.33 Lkg “B” sugar, 271.63 “D” sugar and 33.53 metric tons molasses. Biological Control of Sugarcane Pests and Diseases. The Trichogramma Project in Negros Occidental produced 20,200 trichogramma strips of which 10,793 were distributed to sugarcane planters, rice, corn and vegetable farmers and SRA researchers for the biological control of sugarcane borers. Organic Fertilization. The use of BMO and vermicomposting is undertaken to enhance soil fertility and reduce fertilization cost. Vermicompost production was 7,793 kilos. Of this, 50 kilos were used by SRA Bacolod and 40 kilos by the PTCM unit. The rest were used in the LGAREC fields. A total of 294 gallons Beneficial Microorganism (BMO) liquid suspension were produced for fertilizer application at the LGAREC demo, propagation and commercial fields and for research purposes. Laboratory Services. Soil samples are analyzed to serve as basis for fertilizer recommendation and improve soil fertility. The two (2) research stations and the Bacolod laboratory analyzed a total of 3,488 soil and juice samples . The distribution of soil and juice samples analyzed are:
LAREC LGAREC Bacolod Total
Soil Samples 245 816 1,331 2,392
Juice Samples 560 536 1,096
Total 805 1,352 1,331 3,488
INDUSTRIAL RESEARCH AND DEVELOPMENT Sugar Reference Services and Integrated Laboratory Services. In compliance to Memo Circular No. 2 Series 2011 on the new sets of standards for Raw Cane Sugar (PNS/BAFPS 81:2010) and White Sugar (PNS/BAFPS 82:2010) the laboratories in Quezon City and Bacolod conducted analysis of the following samples: Samples Analyzed Raw sugar Refined Sugar Muscovado Sugarcane juice/camote juice Molasses Agro-industrial samples Premixes Total
Quezon City 118 103 3 3 23 11 76 337
Bacolod 511 2 3 3 159
678
Total 629 105 6 6 182 11 76 1,015
Premixes and Other Food Concentrates. Sampling of premixes and concentrates are undertaken in the laboratory to ensure the integrity of the samples from shipments . Of the 76 premixes tested, 23.68% had 65% sucrose content, 25% had below 65% sucrose, while the rest were not detectable. On the premix case involving the Coca Cola Bottler’s Philippines Inc., the Valuation and Classification Review Committee of the Bureau of Customs released its findings/resolution last January, to favor the classification of the CCBPI premix importations under ASEAN harmonized Tariff Nomenclature Heading 1701.99, with import duties of 38% against the zero percent duty which CCBPI seeks to avail. CCBPI however has appealed the case. Quality Standard Setting for Muscovado. In as much as the National Codex Committee on Sugar has not been activated yet, the TWG discussed comments/inputs for Philippine position for the Proposed Draft Standard for Panela (muscovado) which is already on Step 3 of the Codex Procedure. The TWG has submitted the Philippine position through the National CODEX Organization. Since the Codex Committee on Sugar has been activated, the need for the activation of our National Committee on Sugar has been stressed out by our office to the National Codex Organization (NCO). The NCO through its technical committee has appointed Food and Drug Administration to chair the committee and SRA has accepted co-chairmanship of the said committee. Comparative Study of Floc Potential of White Sugar using Absorbance Ratio Scope and ICUMSA 10-Day Beverage Test. Thirty-six (36) samples were analyzed using both method of analysis. Evaluation and interpretation of the results will be done next quarter. Environmental Laboratory Services. Forty-five (45) wastewater and 69 air particulates samples were analyzed in the Q.C. laboratory . The laboratory has maintained its status as an EMB-DENR Recognized Laboratory after it underwent an annual monitoring and assessment by EMB-DENR. Additional parameters such as Color, Chemical Oxygen Demand (COD) for wastewater and particulate matter for air were included in its Certificate of Recognition. The Agro-based Laboratory in Bacolod analyzed 147 air particulates from two (2) sugar mills and 355 special samples from 186 clients. Mandatory Food Fortification (MFF) . It has been the focus of several meetings following several issues which cropped up as a result of the non-implementation of MFF in sugar and subsequent denial of the issuance of FDA Certificate Product of Registration for one sugar refinery. The Philippine Association of Sugar Refiners, Inc. (PASRI) has requested for a moratorium on the implementation of Mandatory Food Fortification on sugar and SRA has supported the issue. Discussion on the matter has been on-going. While the National Nutrition Council through the Technical Working Group for MFF (in which SRA is also represented) have finalized the results of the review of the implementation of the MFF which have been conducted by a non-government consultant hired for this purpose, and the final NNC Board resolution been prepared, questions on the authority of the NNC to effect the lifting of the MFF in sugar have been raised. Final implementation of the recommended policies including the lifting of the MFF for refined sugar as a result of the review will depend on the resolution of these legal issues.
TECHNICAL SERVICES Capacity and Efficiency Appraisal of Sugar Mills. Technical audit of four (4) sugar mills were conducted in Luzon/Mindanao mills namely: Don Pedro, Busco, Victorias and Lopez to determine plant efficiency profile. Technical audit for the Visayas were conducted on Victorias Milling Company and Lopez Sugar Corporation. Environmental Monitoring of Sugar Mills. Environmental monitoring of six (6) Luzon mills on nine (9) occasions were conducted . The mills included in the monitoring were CAT, BASECOM, CARSUMCO, PENSUMIL, CADP and SCISMC. Aside from the regular Particulate Matter (PM) sampling, other samples included in the monitoring are Nitrogen Oxides (NOx), Sulfur Dioxides (SO2) and Carbon Monoxide (CO). As part of the renewal of accreditation as 3rd Party Source Emission Testing Firm, the DENR-EMB conducted a facility inspection on July 17, 2012 for the Q.C. team and August 23-24 for the Bacolod team to inspect the documentation and equipment used by the teams. Two (2) SAGE-Q.C. teams and one (1) Visayas team were approved for renewal last August 6, 2012 and valid until August 6, 2015. The accredited teams are : Team 1 Team 2 Team 3 -
Ms. Rosaline Agosto & Mr. Rogelio Genzola Ms. Rosaline Agosto & Ms. Dyna Tienda Ms. Irene Cruz & Ms. Lucia Sanchez
In the Visayas, environmental monitoring of 16 smokestacks were undertaken in La Carlota, Lopez, Victorias, BISCO and San Carlos Bioenergy. Pocket Researches. These are: a. b. c.
These are researches containing valuable information particularly on the historical performance of the industry .
Philippine Sugar Mill Advance in Milling and Extraction Philippine Refinery Advances in Decolourization Philippine Mill/Refinery Equipment Improvement Between Audits
Technical Services . Most of the technical services in Luzon involved data dissemination and information inquiries. In the Visayas, five (5) clients were served re: inquiries on muscovado production. In support of the muscovado project, the Visayas extension personnel conducted survey on baseline data on muscovado industry in Negros Occidental and Panay provinces namely: Negros Occidental (8); Negros Oriental (6); Panay/Iloilo (6); Antique/Bellison (4); Patnongon (30), operational 21 and non-operational 9. Laboratory personnel of RDE Quezon City provided technical assistance through referrals and consultations in 32 occasions, to the BAFPS, DA-SPS Focal Group, DA/DOH- National Codex Organization, National Nutrition Council, PSMA, PASRI, NGOs and the academe on matters concerning food fortification, codification of regulatory issuances, quality assurance, muscovado standard setting, Codex Committee on Sugar etc. Publications. Vital information on production, factory performance and equipment specifications of sugar factories and refineries are published in the Annual Synopsis of Raw Sugar Factories and the Annual Compendium of Phil. Sugar Refineries. For the year, a total of 154 complimentary publications were given to clienteles while six (6) were sold. Energy Efficiency and Conservation Project. The project proposal was approved by the Sugar Board on September 25, 2012 and will be done in three (3) phases with Phase 1 for implementation in Crop Year 2012-2013. This involves the institution of energy efficiency and conservation which include the capability training of SRA technical personnel and the actual conduct of energy audit. Collaborative meetings with partner agencies such as the DOE, DOST-PCIEERD and PSMA were undertaken and pre-bidding for the purchase of the audit equipment was already completed. Land Conversion. Extension staff in the Visayas inspected areas for land conversion in Silay, Manapla, Sagay City and Victorias.
EXTENSION SERVICES Block Farming Project. Eight (8) block farms were established in Luzon/Mindanao, four (4) in Batangas, and one (1) each in Tarlac, Pampanga, Pensumil and Bukidnon. Twenty (20) block farms were organized in the Visayas with a total area of 600 hectares. All of these are under the Convergence Program of DA, SRA and DAR. OPSI trainings, Mill District/EWA Seminars. Fourteen (14) Mill District seminars for block farms were conducted in Luzon/Mindanao, with 463 farmer participants, while 71 EWA seminars were undertaken with 3,143 participants. Thirty-eight (38) trainings and seminars were conducted in the Visayas with 1,580 participants. These seminars are conducted to further . enhance the farmers’ expertise in sugarcane farming. LAREC conducted one (1) OPSI Training on Updates on Sugarcane Growing technologies to the Central Azucarera de Tarlac agriculturists and other field services staff. Some LAREC staff were speakers to the DAR-JICA in-country training for ARBs and ARB clusters held in Batangas and Farmers Training on Muscovado Production in Bicol. Farm Support and Advisory Services . 2,083 farm and home visits were conducted in Luzon/Mindanao while there were 1,153 cases of consultations and referrals. Assistance to MDDC/CEFP, LGUs, cooperatives etc., were also undertaken in 286 cases. In the Visayas, extension staff attended to 7,985 consultation/referrals on sugarcane farming catering to 6,682 farmers and conducted farm visits to 8,717 farmers for technical assistance. Collection of Soil samples for Analysis. Extension staff in the Visayas collected 2,035 soil samples from 1,044 farmers while staff in Luzon/Mindanao collected 686 samples for analysis and proper fertilizer recommendation. Field Monitoring. Crop estimation in Luzon/Mindanao is undertaken six to eight times a year using the weekly production report, crop damage report and the rainfall reports as basis. Annual crop estimate is now validated through the use of GPS in some locations. Surveys are also undertaken to determine production cost, inventory of trucks and tractors, variety performance, variety planted, muscovado mills etc. Extension staff in Luzon/Mindanao regularly monitored 27 private nursery farms, farm mechanization of 802.5 hectares, road rehabilitation of 374.3 kilometer farm roads, hauling projects involving 1,652.2 tons cane and distribution of 1,910 truckoads of mudpress to 244 recipients and 11,265 bags organic fertillizer to 115 recipients. Extension staff in the Visayas monitored 22 nurseries, coordinated the production/distribution of 1,973 laksa canepoints from the HYV nurseries to 256 farmers, coordinated the Sugar ACEF tractor pool of 17 MDDCs with 95 tractors serving 2,191 farmers, coordinated ACEF hauling projects on 10,759.25 tons cane to 266 farmers, coordinated the submission of documents for the Farm-to-Mill Road Project, validation of the Final Crop Estimate and preparation of the Annual Gross Production Data for 20 Mill Districts for submission to the Land Bank in support of the Comprehensive Agrarian Reform Program. IEC Materials. The Technical Services unit in the Visayas printed and distributed 1,564 copies of the SUGARLINK, a very informative publication for the stakeholders of the cane industry. Gawad Saka. This is a Department of Agriculture initiated annual search for Outstanding Sugarcane Farmer. Extension men in the Visayas identified, validated and awarded candidates for 2012 with one regional winner each for regions 6, 7 and 8, while Luzon/Mindanao also conducted regional search and was actively involved in the validation process on the national level. RDE CAPABILITY BUILDING PROGRAM Personnel of Technical Services unit of RDE Quezon City participated in seven (7) trainings on occupational safety, energy audit, energy efficiency/conservation/cogeneration for sugar mills & refineries, environmental management, compressed air and pumping system optimization etc. were attended by personnel engaged in technical services. Other laboratory personnel in Quezon City participated in nine (9) training courses and twenty-one (21) seminars, consultative workshops, conference and symposium.
RDE Visayas personnel participated in six (6) seminars/trainings on basic occupational safety hazard, energy efficiency and conservation for the sugar industry, muscovado, Philippine bidding documents, government property and supply management and Gender and Development planning conference.
REGULATION DEPARTMENT - LUZON / MINDANAO Production, Withdrawals and Price Update For Crop Year 2011-2012 sugar was allocated at 8% for “A” or US and 72% for “B” or domestic sugar and 20% for “D”. No amendments in the quedanning ratio since supply and demand for sugar over the crop year remained stable. Raw Sugar Production for Crop Year 2011-2012 reached 2,244,131 MT, a 6.46% decrease from the previous crop year’s record of 2,399,116 MT. In spite of the decrease, the country was able to meet its export and domestic requirements. Sugar Withdrawals for the same Crop Year posted at 2,039,217 MT compared to last crop year’s record of 1,716,505 MT; an 18.80% increase. The good sign can be attributed to increasd in domestic consumption and low incidents of sugar smuggling. Twenty nine (29) sugar mills and (13) sugar refineries operated this crop year. Sugar Prices in Metro Manila were regularly monitored to check if prices are at a level reasonably profitable for the producers and fair to consumers as well. The prevailing wholesale price of refined sugar, in Metro Manila, was at P1,950.00/LKg during the first month of the Crop Year and increased to P2,300/Lkg in June, July and August and closed at P1,900.00/LKg. On the other hand, the prevailing retail price of refined sugar was at P48.00/kg and went up to P50.00/kg. (see Table 1) Millsite price of “B” or domestic sugar started at P1,700 but dropped to P1,296.04. Molasses price started at P 5,000/MT and closed at P 5,705.60/MT at the end of the year. Prevailing prices of sugar in Metro Manila are the following: Month Sept.‘11 Oct Nov. Dec. Jan. ‘12 Feb. Mar. April May June July Aug Sept. ‘12 Oct. Nov. Dec
Wholesale price (Pesos per 50-kilo bag) Raw Washed Refined 1,420.00 1,650.00 1,950.00 1,350.00 1,630.00 1,850.00 1,400.00 1,500.00 1,800.00 1,350.00 1,550.00 1,750.00 1,380.00 1,550.00 1,850.00 1,450.00 1,580.00 1,850.00 1,550.00 1,600.00 1,980.00 1,650.00 1,790.00 2,100.00 1,650.00 1,800.00 2,100.00 1,750.00 1,950.00 2,300.00 1,750.00 1,950.00 2,300.00 1,800.00 1,950.00 2,300.00 1,800.00 1,910.00 2,250.00 1,750.00 1,850.00 2,200.00 1,550.00 1,750.00 2,050.00 1,400.00 1,550.00 1,900.00
Raw 40.00 41.00 41.00 39.00 39.00 39.00 36.50 38.00 40.00 40.00 44.00 44.00 40.00 44.00 44.00 44.00
Retail Price (Pesos per Kilo) Washed 45.00 45.00 43.00 41.00 40.00 40.00 39.50 39.75 41.00 43.50 45.00 45.00 45.00 44.00 44.00 44.00
Refined 48.00 48.00 47.00 45.00 45.00 44.00 43.50 46.00 47.00 49.00 51.00 50.00 50.00 50.00 50.00 50.00
Export Sugar (US Market/World Market) For quota year 2011-2012 the Philippines’ initial commitment to US for raw sugar allocation was 144,901 MTRV (or 138,827 MTCW) with an additional quota of 75,540 MTRV (72,373.65 MTCW). As of December 2012, Sugar Exports to US totaled 86,734.23 MT generating P3,752,529.50 from export clearance fee. Sugar Export to the World Market was 83,169.88 MT with a total earnings of P5,185,293.30.
Export/Imported Molasses and Muscovado Molasses export for the year was 119,665 MT which generated income to the amount of P3,589,50.00 while Muscovado exports totaled 1,741.71 MT with P51,840.00 total income for SRA. On the other hand, Molasses imports for this year was 11,514.11 MT with a total earning for the agency in the amount of P4,605,624.00. Food Processors, Customs Bonded Warehouse (CBW) Imported Allocation Food Processors/exporters/CBWs using imported sugar and local sugar as raw materials for their products to be exported availed a total of 52,127.24 MT imported and 9,310.40 MT local ”E” sugar or a total of 61,437.64 MT. From this, the agency collected P30,718,820.00. Regulatory Services The Regulation Department being the regulatory arm of SRA on sugar transactions issued the following documents:
38 certificates for quota eligibility (CQE) to traders 531 certificates of exchange authority (CEA) 128 certifications for sugar requirements 698 export clearances for sugar, molasses and muscovado 347 import clearances for sugar and molasses 42 licenses to sugar mill/refineries 231 registration certificates to sugar/molasses/muscovado traders 206 shipping permits 404 Pre-mix commodity clearance 596,667 Verification and attestation of sugar quedans, molasses certificates and sugar release orders (SRO)
Other Collections Regulation Officers (ROs) assigned in the field also helped in terms of collection of liens for the agency. For this year, the agency generated more than P240 million covering liens, monitoring fees (raw and refined, imported sugar under Customs Bonded Warehouse, “E” sugar), shipping permit fees, penalty charges, registration, other permits and milling license fees, regular, advanced swapping/replenishment, reinstatement, reclassification of sugar, amendment of Certificate of Authority as well as clearance and certification fees . Other Activities for the Year
PLANT VISIT AND INSPECTIONS These are primarily done to check the legitimacy of the Plant owned by the Food Processors if it is existing and operational and to access its sugar requirement in order to grant an allocation. For this year, five (5) new Food Processor applicants namely: La Rose Noire Philippines, Amley Food Corp., Celebes Coconut Corp., Juan Republik and Peggy Waffles were given allocation to import sugar for their sugar-based products that were for export.
PHYSICAL SUGAR STOCK INVENTORY. The SRA Monitoring Team, conducts various visits to warehouses of Food Processors to check the available imported sugar stocks. A warehouse ledger is filled-in reflecting the quantity of withdrawals or used sugar, the remaining stock balance signed by the Warehouseman. The SRA inventory team composed of LMD, STD and Internal Audit Department (IAD) would attest if the said quantity reflects the same with its inventoried stocks. The quantity imported is required for liquidation in order to reclaim their posted Bond Payment to the agency. For CY 2012, more than 30 sugar stock inventories were conducted in different parts of the country. As a result of most inventories conducted, per data reflected in the respective Warehouse Sugar Stock Inventory Ledger of food processors, it shows that the number of actual physical sugar stocks at the warehouse matches with the SRA data. The LMD strictly monitored the activities of Masagana, a sugar trader who falsified its export documents. Due to the LMDs persistent and constant follow-ups, it was able to force Masagana to present a copy of its export declaration that
turned out to be spurious upon verification with the Bureau of Customs. Detection of irregularities in the “D” sugar shipment was successfully done. The SRED also conducted physical sugar stock inventories in the mills and refineries. Verifying and reconciling the same with the quedans still outstanding. For 2012, a total of 29 mills and 13 refineries were inventoried. Calibration of 55 scales of mills/refineries/warehouses were also done as part of the activity. TRADERS OFFICE and WAREHOUSE VISIT.
Eighteen (18) warehouses and office inspections were conducted to verify the authenticity and legitimacy of a new trader applicant. Upon recommendation, all applicants were issued a license to operate as sugar and molasses trader.
PRE-MIX SAMPLING.
Twenty (20) pre-mix sampling were conducted during the year. Wherein samples, classified under heading 21.06.90 of the Harmonized System (HS) Tariff and Customs Code, were taken for laboratory analysis to check for the presence of sucrose. Majority of the samples examined did not have sucrose content. But, there were also a number of samples detected with above 65% sucrose content. Prior to the withdrawal of its products from the Bureau of Customs (BOC), the importers were obliged to pay for the clearance fees and sugar liens of its products containing 65% sucrose by dry weight of sugar. Likewise, the importers were also obliged to pay for the laboratory fees.
CONSULTATIVE MEETINGS WITH FOOD PROCESSORS, MANUFACTURERS OF SUGAR-BASED PRODUCTS FOR EXPORTS.
These were conducted to strengthen and intensify policies on sugar allocation. The meetings were held in SRA, Cebu and Davao.
CAPABILITY BUILDING. The Regulation Department also attended various seminars/trainings/fora (local and abroad) to upgrade their skills and update their knowledge. These are: -
RD Luzon/Mindanao Conference and Retooling (SRA Organized) Microsoft Excel Program Training (SRA Organized) Scholarship Grant from Development Academy of the Philippines-Ateneo Asian Conference in Taiwan sponsored by Harvard University Logistics Management Seminar (Philippine Trade Training Center) SRA Strategic Planning Session (SRA Organized) Effective Statistical Presentation Skills (Department of Agriculture) Accountability and Responsibility of Regulation Officers over Cash Collections and Reporting (SRA Organized) Advance Excel Training (Statistical Research and Training) Statistical Analysis (Statistical Research and Training) MS Powerpoint (Statistical Research and Training) Effective Business Writing (Guthriel/Jensen) Outreach Program for the Sugar Industry Philsutech Convention
REGULATION DEPARTMENT - VISAYAS For CY 2012, the Regulation Department, Visayas, covered 18 raw sugar mills, seven (7) refineries, a bio-ethanol plant in San Carlos City, four (4) Cebu-based CBWs, two (2) bulk terminal loading ports for international shipments, all ports (where sugar are loaded for inter-island shipping), and all international/domestic sugar and molasses traders (operating and transacting) in the Visayas. The Department is composed of two (2) divisions: Sugar Regulation & Enforcement Division (SRED) and the Licensing and Monitoring Division (LMD). It also performs Sugar Transaction functions as an extension of the Sugar Transaction Division of the SRA, Quezon City head office. The following are the accomplishments per division: A. SUGAR REGULATION & ENFORCEMENT DIVISION
Raw sugar (MT) Refined Sugar (LKg) Molasses (MT)
2010 Production 1,688,010.334 11,209,508.65 760,657.225
2011 Production 1,670,497.830 13,984,296.60 665,515.328
% Inc (Dec) -1.04 24.75 -12.50
Raw sugar (MT) Refined Sugar (LKg) Molasses (MT)
Withdrawals 1,602,526.563 10,345,407.56 771,544.008
Withdrawals 1,596,832.071 13,829,444.07 694,449.741
-0.36 33.68 -9.99
Raw sugar (MT) Refined Sugar (LKg) Molasses (MT)
Stock Balance 404,154.458 3,525,317.26 133,864.638
Stock Balance 350,009.041 2,439,796.30 132,659.607
-13.40 -30.79 -0.90
Corollary to the 6% decrease in production on a crop year basis for Visayas, there was a 1.04% decrease only in production, if in terms of fiscal year. The 5% difference was covered by production due the early start of crop year 2012-2013, the first 4 months of which fall within the fiscal year 2012. Refined sugar production on the other hand increased by 24.75%. The 33.68% increase in withdrawals but lesser stock balances can be attributed to its demand after so much has been said about industries which shifted to premixes and other forms of sugar.
Raw Sugar Quedans Refined Sugar Quedans Molasses Certificates Raw SRO Refined SRO Scales Calibrated SMS Reports Samples Collected: Sugar Molasses Warehouses: Inventoried Inspected Molasses Tanks: Inventoried Inspected
2011 677,648 7,870 326,316 10,722 1,226 125 5,402 493 51 72 307 93 373
2012 946,756 1,957 262,113 10,416 1,602 75 4,862 405 39 128 466 145 323
% Inc (Dec) 39.71 -19.68 -2.85 30.67 -40.00 -10.00 -17.85 -23.53 77.77 51.79 55.91 -13.40
The 39.71% increase in the number of raw sugar quedans attested by the ROs was due to the “D” or World Market sugar allocation. In spite of the guideline to consolidate issuances, most planters through their respective planters associations opted for individual
quedanning. The decrease in molasses certificates issuance was due to bimonthly issuance (consolidated) instead of the usual weekly release. The increase in refined SRO issuances is reflective of the increases in refined sugar production and withdrawals. It supports the increase in demand mentioned earlier. There was not much recalibration within the year. Milling was a few weeks shorter for some mills and this also explain the lesser number of SMS reports because there are some reports that are not generated during off-milling season. There were two physical counting of stocks conducted: the post milling and crop year end inventories thus the increase in the number of warehouses checked. Frequent inspection of the warehouses were required of the Regulation Officers. SRED-Visayas, through the diligence of Bacolod-based and Mill Regulation Officers designated as Collecting Officers collected the following income as follows: Account Title
2011
2012
Stabilization Fee Special Milling Fee
25,414,292.68 2,548,297.66
25,419,761.61 2,542,801.44
Milling Permit Fee
12,938,965.94
12,875,565.64
Monitoring Fee, All Sugar Anti-Smuggling Fee
25,598,868.22 25,110,326.36
26,699,549.04 1,814,342.60
Monitoring Fee, Raw Advance Refining Penalty
2,498,396.63
74,370,146.29 443,941.50
Penalties Total
1,069,103.85
1,026,066.00
95,178,251.34
145,192,174.12
Highlights of Activities of SRED: Nature of work 1. Monitoring of Advance Refining 2. Compliance to memo re: SMS Report 3. Compliance for MF for IRS & BD sugar 4. Penalty per S.O. 10 violation 5. Newly imposed lien of P2.00 complied. 6. Release of molasses overages. 7. Release of sugar and molasses overages. 8. Compliance of SRA policies.
Mill
Accomplished Task
VMC
Collected Php 443,941.50 for the 147,980 Bags refined “A” & “D” sugar.
Full implementation and uniformity of Items 2 & 3 for all Refinery SMS reports. Collection of the monitoring fee for IRS & BD per Administrative Order No. 1. Penalized for unauthorized withdrawals of 10,260.66 Lkg in the amount HTCI of Php 1,026,066.00 dated Nov. 2012. Collection of Php 2.00/ Lkg covered by raw sugar quedans per M.C. #1All mills A, 2011. URC-Passi Issuance of M.C. distributed to planters. FFHC Sagay/ HPCo.
CASA All mills
Issuance of sugar quedan and M.C. for CASA planter and mill shares. Implementation of S.O. # 10 s. 2009-2010.
B. LICENSING & MONITORING DIVISION ISSUANCE OF SHIPPING PERMITS, FY 2012 Visayas a. Negros
Permits Issued
Amount Paid (Pesos)
Volume, Lkg-Bags Raw
Refined
Others
Total (Lkg-Bags)
11,982,695.90
214,117.80
18,606,857.22
11,200
19,046,775.22
6,410,043.52
b. Cebu
1,520
222,258.50
60,222.00
40,658.50
100,880.50
c. Panay
1,717
2,401,576.37
2,171,194.02
16,555.05
2,187,749.07
d. Dumaguete
2,054
2,467,671.82
1,430,063.57
926,785.00
2,685.69
2,359,534.26
219
250,634.00
117,802.00
48,930.00
16,710
24,388,915.91
10,189,325.11
12,958,410.90
e. Leyte TOTAL
166,732.00 274,017.04
23,421,753.05
Issuance of shipping permits is the primary activity of the LMD-Visayas. This year the number of permits issued increased by 3.40%. The next table summarizes the other activities: Other LMD Activities Shipping Permits Issued Volume Covered by Permits, Lkg Traders Registered Vessels for Exports CBWs
2011
2012
16,160 20,311,738.91 153 35 4
16,710 23,421,753.05 156 18 4
1,653 351,516
44,245 383,300
“E” at Food Processor Warehouse, Lkg Out-loaded “A”, MT Out-loaded “D”, MT
1,068 234,943.94 157,256.31
44,245 76,464.98 86,928.31
Out-loaded Molasses, MT
76,910.120
40,940.000
44 978
43 1018
CBW Sugar FAO Food Processors, Lkg Imported Sugar Inspected/Released,Lkg
Clearance for Release of Imported Sugar Data Served to Stakeholders
The volume for shipment increased by 15%, of the total volume, 67% came from Bacolod ports, the origin, Negros Occidental mills. A good portion of the permits processed at Dumaguete came from southern Negros Occidental mills also. Of the 156 traders facilitated for licensing, 103 were for domestic sugar trading and 5 were international, 33 were molasses traders and 15 were for muscovado trading. Highlights of Activities: LMD-Visayas:
Processed / facilitated issuance of 156 licenses to traders. Issued 16,710 shipping permits amounting to P24,388,915.91 Monitored sugar exports at different loading ports: “A” Sugar - 76,464.980 MT “D” Sugar - 86,928.310 MT Monitored 44,245.00 Lkg bags “E” sugar shipments. Monitored/ Inspected 383,300 Lkg bags imported sugar in CBWs Coordinated with BOC, Cebu on matters regarding seized imported sugar. Monitored 40,940.00 MT Molasses export shipments. Monitored sugar and molasses prices in Visayas area. Monitored 15 warehouses of sugar traders in Visayas area. Facilitated processing of milling permits of 6 sugar mills. LMD personnel assisted in processing Sugar Transactions activities.
C. SUGAR TRANSACTIONS DIVISION Account Title Reinstatement-Homeless Quedan CEA Amendments Regular Swapping Advance Swapping Subtotal
2011 655,627.20 19,071.43 2,657,982.24 3,332,680.87
2012 13,434.21 530,360.97 439,200.37 12,681,296.48 13,664,292.03
Since the time Regulation-Visayas expanded its services to perform Sugar Transaction procedures, it had gone a long way. Without additional manpower complement, it processed 490 transactions of regular swapping, replenishments, amendment of CEAs and certificates, facilitated reinstatement of homeless quedans and performed verification of “D” quedans. These covered 1,803,891.98 Lkg bags. Personnel from both divisions take turns to assist in processing all these transactions.
No. of Transactions Lkg Bags Covered
2011 40 192,438.07
2012 490 1,803,891.98
Capability Building.
“Ehem” Seminar – Conducted by the Office of the Ombudsman, a one-day seminar was held on May 11, 2011 prior to the holding of Lakbay Aral. A sequel of the Public Accountability Seminar, it is an anti-corruption initiative which echoes the urgent call for cultural reform against corruption in the Philippines.
5S + 1 Seminar – Conducted by lecturers from DOLE, the seminar was shared with personnel from RDE although it was an initiative of the Regulation Department. It is a basic fundamental approach for productivity, quality and safety improvement in any workplace. The 5S stands for sort, set in order, shine, standardize and sustain.
Regulation Officers’ Regional Conference – Conducted last September 5-7, 2012, it focused more on the retooling of Regulation Officers. Held at the Renewal House, La Paz, Iloilo City, only one Regulation Officer was unable to attend as his post cannot be left unmanned. The Administrator led and inspired the ROs, Mr. Jose Rojo Alisla gave the industry updates, Ms. Jocelyn Sorilla lectured about the Bio-ethanol production, Ms. Maru Gumera reviewed the Bio-ethanol policies, Mr. Ferdie Corpuz talked about Mill Audit and Cogen while Atty. Santillana discussed the new sugar act that was already in Congress. For the more important topics that will focus about retooling, selected Regulation Officers were assigned topics of their expertise to act as lecturers. The seminar culminated in an educational trip to Garin Farm at San Joaquin, Iloilo.
Meeting on Accountability of Public Funds – A one-day meeting was facilitated to review procedures pertaining to, preparation and reporting of collection by the Regulation Officers designated as Collecting Officers, and procedures when processing claims.
2012 SRA Annual Strategic Planning Conference – The Managers and Division Chiefs attended said conference at the Timberland Sports and Nature Club, San Mateo, Rizal last November 18-20, 2012
RDE & RD: Working Together – The long time plan of making the Regulation Officers and Mill District Officers work together was materialized on December 14, 2012. It was a getting-to-know you activity as each one introduced his/her SRA counterpart in their respective places of assignment and each department presenting their respective functions and services offered.
PLANNING AND POLICIES Sugar Order No. 1. To maintain a balance production and requirements of sugar and stabilize sugar prices, the SRA regulary formulates sugar policies on production and allocation. Sugar production for Crop Year 2012-2013 (September 1, 2012 to August 31, 2013) was estimated at 2.356 Million Metric tons and allocated into the following percentages : “A” or U.S. Quota Sugar “B” or Domestic Sugar “D” or World Market Sugar TOTAL
10% 82% 8% 100%
Sugar Order No. 4. Due to the prevalence of sugar smuggling which poses a direct threat to the sugar industry and endangers the livelihood of all dependents of the sugar industry, the sugar industry leaders have requested the SRA to supervise the collection of voluntary contribution for sugar anti-smuggling operations of the private sector, Sugar Anti-Smuggling Organization (SASO), sourced from every LKg-bag of raw sugar covered by raw sugar quedans. Regulation Officers shall collect the amount of One Peso (P1.00) per 50-kilo (LKg) bag of raw sugar produced by planters and mills who subscribe to support the sugar anti-smuggling campaign of the sugar industry. Strategic Planning Conference. A Strategic Planning Workshop was conducted on November 19-20, 2012 in Timberland Resort, San Mateo Rizal with twenty-seven (27) participants consisting of SRA officials and personnel. The objective of the workshop was to have a redefined vision and mission statements and core values and a three-year strategic plan for each functional unit of SRA . The objectives of the workshop were accomplished as indicated in the workhop output which includes the vision, mission, core values and goals for 20113-2016. The SWOT analysis for the RDE, Support to Operations and the Administrative and Finance group were undertaken and action plans for 2013-2016 were formulated by the Operations and Support to Operations Group.
INTERNAL AUDIT DEPARTMENT For 2012, the IAD came in strong, supporting the mission and vision of SRA. Technical/Policy Support to the Sugar Board Completion of Sugar ACEF Property Transfer – completed the documentation of full ownership transfer of all Sugar-ACEF properties to the 26 MDDC’s. The transfer was in compliance with COA’s AOM that these properties should not be recognized as SRA assets, as the benefits accrue to MDDC and not SRA. As consequence, SRA was relieved of its huge inventory burden and property accountabilities. Request to Policy Questions by Stakeholders Drafted letter-response denying the setting-up of allowances for shortages and overages by sugar mills as SRA lacks technical capability to establish one without calibrating varying mill-capacities., a letter-response to Mr. Steven Chan of PIMA defending the validity of SRA policy on TRQ (Swapping B to A sugar for the US TRQ) Recommended and was approved by the Board the reassignment of Sugar ACEF properties of Durano to Bogo-Medellin MDDC. Prepared/drafted memo addressed to all Sugar Mills for the generation of Sugar Market Development data in coordination with Regulation Officers (ROs) Policy Formulation and Enforcement of SRA Regulatory Rules Coordinated with the Regulation Department on the Manualization/Codification of all policies/procedures relative to the operation of CBW and Food Processors. Drafted and approved SRA advanced refining policies and amendments thereon effective 2012. Of the refineries reviewed/assessed only VMC, which paid an advance refining fee of about P500,000 was positive for violation. Continued monitoring of CBW/Food Processor’s operation in Luzon, Visayas and Mindanao prior to their application for renewal of allocation in 2013 and drafted Memo on the monitoring of Visayas-Based Food Processors by SRED Visayas. Three (3) RO’s were recommended for disciplinary action on valid finding/audit of violation of SRA sugar withdrawal rules. Prepared Position paper denying the request for one-time approval of allocation of MIESTO, a Cebu based food processor. Audit Engagement Individual Audit Engagement was performed by the Internal Audit on the following:
Review on the existing procedure on the Issuance of Order of Payment (OP) Issuance and utilization of supplies and equipments to officials and employees of SRA A systematic assessment of the Quality Human Resources Services Assessment of the efficiency and effectiveness of SRA’s Fund Management Control System (Cash Advances/PCF) Effective Leave and Leave Management Property Inventory System of SRA
On-going audit of Collection/Remittances of all Regulation Officers (RO’s) This is to be completed within the first quarter of 2013 and shall be submitted to Management. The objective is to establish collection efficiency of SRA liens, identify gaps and proposed further measures for better collection/remittances strategies. The Department is also continuing the audit of time cards/leave credits of all SRA personnel. Budget/Operation Review Review the budget of RDE projects to wit: Project Energy Efficiency and Commercial Cogen of Sugar Mill refinery, Characterization of Phil. Refined Sugar and review of Pakiao operations of SRA.
Codification of SRA’s Sugar Order Acted as vice-chairman of TWG assigned to undertake codification and on-going monitoring of block farming and other SRA projects. Bidding Conducted Pre-bid Conference and Public Bidding for the following:
Various farm mechanization equipment for Sugar ACEF related projects of Bais-Ursumco MDDCFI Three (3) units brand new vehicles Satellite Image Covering 1.5M has. Re-bidding for the supply and delivery of Satellite Image covering 1.5M has. Various farm implements for Sugar ACEF related projects to Ormoc-Kananga MDDCFI Re-bidding for the supply and delivery of various farm implements For Sugar ACEF related projects to Ormoc-Kananga MDDCFI Various instruments for energy efficiency and conservation for the sugar industry projects Computer systems/programs/databse for SRA information system
Others
Review and consolidation of SRA’s Project Procurement Management Plan (PPMP) for office supplies and equipments for CY 2012 Assessment of the performance of promotable employees of SRA
ADMINISTRATIVE AND FINANCE DEPARTMENT – Luzon / Mindanao Budget/Treasury and Accounting Division - Luzon and Mindanao The SRA Administrative and Finance Department – Luzon and Mindanao area is composed of three (3) Divisions namely: Accounting, Budget and treasury Division and General Administrative Division. Each Division has its individual, specific and detailed functions, duties and responsibilities that are translated into programs, projects and activities which are the basis and yardsticks in measuring and determining the consolidated performance and accomplishments of the Department. These physical accomplishments can be categorized in terms of the following: COLLECTIONS SRA’s sources of funds to defray its operational expenditures for the effective, efficient and productive implementation of programs, projects and activities in order to achieve its mandated functions, goals and objectives are generated from three (3) main sources of funds such as, but not limited to corporate income, accounts receivable and trust funds. For the year 2012, SRA has an aggregate collection of P43.477 million which is composed of corporate income – P31.181 million, account receivable – P.955 million and trust funds – P123.311 million. There was a decrease in collections for corporate income and account receivable by at least 4% as compared to 2011. However, a huge increase in trust funds collection has been posted due to the imposition of monitoring fee in the amount of P2.00/Lkg of raw sugar covered by sugar quedans which recorded a total of P94,000 million. These trust fund is exclusively earmarked for the Research Development and Extension (RDE) and Regulation programs, projects and activities directly related to the improvement and enhancement of the competitiveness level and capability of Philippine sugar industry towards 2015 and beyond. DISBURSEMENTS A total amount of P390.648 million has been disbursed by SRA for the 2012. It is composed of current expenditures – P318.814 million, prior years’ account payable – P34.386 million and trust funds – P37.448 million. The actual current expenditures are shared by Personnel Services (PS) Cost – 70%, Maintenance and Other Operating Expenditures (MOOE) – 25% and Capital Outlay (CO) – 5%. Huge portion of the trust funds disbursements were represented by the remittances and payments made to other sugar federations, foundations, associations and implementation of projects funded by NGOs and other government agencies. FINANCIAL REPORTS Inherent to the functions of Budget/Treasury and Accounting Division are the pre-audit of expenditures and payments to ensure compliance to existing government budgeting, accounting and auditing rules and regulations which involve the processing of vouchers, and review the legality, validity and authenticity of the disbursement and collections of revenues. As a results, these primary financial functions of the two divisions will be translated and converted into financial reports/statements – collection and disbursements reports, balance sheet, income statement, trial balance, statement of changes of government equity, statement of cash flows, schedule of income and expenses, books of accounts – journals and ledgers (general and subsidiary ledgers) and other miscellaneous accounting/budget/treasury reports. Depending on the reportorial requirements of the concerned regulatory Gas and NGOs, these reports are mandatory, routinary and regularly prepared, maintained and submitted to the SRA top management and line departments/divisions, DBM, DA, House of Congress, COA, Office of the President, Governance Commission for GOCCs, Bureau of Treasury and other government Bureaus/Agencies on a request basis,. For the year 2012, a total of 1,110+ financial reports/statements, journals, ledgers and financial schedules have been accomplished and prepared which are ready for official uses and submission to various regulatory government agencies and NGOs. Likewise, the divisions have processed/pre-audited 4,000+ vouchers, issued3,200+ official receipts and 3,000 various employees’ payment certifications but not limited to GSIS, Pag-ibig, Philhealth, etc. BUDGET AND TREASURY SECTION Total corporate collection for CY 2012 is Three hundred twelve million one hundred eighty one thousand four hundred thirty pesos (P312,181,430.00). ePayment Project System of the Philippine National Single Window (PNSW) was launched on November 15, 2012 and a new interest bearing account was opened with Landbank of the Philippines, North Avenue Branch to accommodate the on line payment of the SRA clientele particularly sugar trader, importers and other sugar stakeholders.
Various projects such as the Sugar ACEF, National Bio-fuel Program, Block Farming and other special projects of SRA are closely monitored, recorded, controlled and reported as to the budget utilization in accordance with the approved plans/programs and budget of the projects. Submitted to the Committee of Finance, House of the Senate, Dept. of Agriculture, Dept. of Budget and Management, SRA Board and Dep’t. Manager’s copies of the Corporate Operating Budget (COB) CY 2012 and the Proposed Corporate Operating Requirements (PCBR) CY 2013. Security Bonds, High Yielding Accounts, and other financial transactions were monitored, reviewed and negotiated with the business partner bank to the best interest and advantageous to SRA. Reviewed and remitted the trust funds due to various sugar federations and associations upon the instruction of the Administrator. Submitted financial reports on weekly, monthly, quarterly and annual basis. Disseminated the Monthly Statement of Obligation and Budget Utilization of various operating department/offices of SRA to the management and department managers. The fund transferred to regional and other SRA Branch Office, maintaining cash balance of each SRA account were closely monitored in compliance with the requirement of the bank. The collection of monitoring fees for raw sugar and treated as trust fund amounted to Ninety Six Million (Php96M) to fund the Research and Development projects vital to the sugar industry. ACCOUNTING SECTION Prepared and submitted the Annual Consolidated Financial Statements of SRA, Notes to Financial Statements, journals, schedules and other various reports for the year 2012 to the Commission on Audit (COA). Prepared monthly Consolidated Financial Statements with supporting journals and schedule for 2012 and compliance reports to DA, COA and BIR. Processed and pre-audited three hundred thirty three (3,333) disbursement vouchers, payrolls, purchase/job orders and other claims for payment. Prepared six hundred twelve (612) certifications of GSIS/Pag-ibig/Philhealth/loan payments per request of employees, one thousand two hundred eighty five (1285) VAT certificates were issued to suppliers and five hundred twelve (512) billing statements were issued and forwarded to SRA tenants and clientele. Prepared and printed SRA Quezon City and Bacolod payrolls such as monthly salaries/allowances, RATA, payrolls of actual attendance, salary differentials due step increment and promotion, ATM master list payrolls and payslips and all other employees benefits and bonuses. Control, printing and remittance to BIR of taxes withheld from employed and suppliers; premiums and various loans to GSIS, Pag-ibig, Philhealth, SURECCO, MAP and other trust deductions. Reconciliation of the reports/accounts such as collection and deposit reports from collecting field officers as validated with On-line report from Land bank, cash in bank accounts and payables, PPEs and inventories, depository trust funds accounts. Monitored payments of SRA tenants and send demand letters to clientele for collection purposes and made representations on public biddings and attended meetings on disposal of unserviceable properties of SRA, COA matters and other concerns. GENERAL ADMINISTRATIVE SECTION The General Administrative Division is responsible in formulating and implementing policies/guidelines, system and procedures related to job organization and information. The Division also manages the manpower training and development and welfare programs of SRA, personnel records and official files/documents for mailing and safekeeping. The division undertakes planning, scheduling, monitoring and evaluation of all constructions, maintenance and repairs of all buildings, facilities and vehicles in SRA, it also undertakes procurement of office equipments supplies and materials and monitors timely payment of space rentals, monthly billings of electricity, water and communication facilities. A special library for sugar is likewise being maintained for researchers and students. TRANSPORT AND BUILDING MAINTENANCE Manages the maintenance of SRA Building and other premises including its facilities, electrical connection/equipments, grounds, and water and drainage systems. Also the unit undertakes maintenance of generators and three units of elevators, planning scheduling, lay-outing, and maintenance of lessee’s spaces for rent. In charge of releasing and evaluating of documents, either for safekeeping, maintenance or for sale of SRA owned properties at Sugartowne. The outsourcing of construction including technical lay-outing/design and documentation
is likewise being done. The unit also inspects the condition of the eleven unit official vehicles, maintained and repaired if warranted and assists the Property and Maintenance Unit in the procurement of vehicle spare parts and reconditioning activities. Rehabilitation/de-clogging of the drainage system of SRA compound was done once a week. Application of waterproofing for the canopy of the Main building was 95% completed and under observation. Waterproofing application for concrete slab roofing of SRA Social Hall is still under observation to determine if further coating is necessary and the painting of the concrete slab at the main building was 50% complete. Renovation of SRA canteen kitchen area for the three concessioners has been completed while the placement of permanent sink and cooking range are still on-going including repainting and de-clogging of canals. Completed re-piping of water pump discharge pipelines located at the main building (NFA) due to leakages and the re-piping and installation of water meters at the fourth floor of Annex Building (LLDA). Completed the rehabilitation of comfort room at the Office of the Board Member Pablito Sandoval and water pump installation modification and provision of enclosure/partition between property and procurement storage room and the water pump is still on-going. PROPERTY AND PROCUREMENT Undertakes the procurement of office equipment, supplies and materials as well as the updating of properties and equipment ledgers. Tagged as the Staff behind the successful implementation of the programs, projects and activities of other departments/offices mainly because they worked on the preparation of documents leading to procurement of inputs or materials, equipment, supplies including labor (i.e. purchase/job request, purchase/job orders, canvas and delivery). These items were categorized as expendable, semi-expendable and non-expendable properties entered in the journal for easy verification and audit purposes. They likewise maintained memorandum receipt of all employees subject to verification and inventory to check the physical condition or serviceability of the equipments. For the year 2012 the unit accomplished the preparation/processing of job orders, facilitated the repair 84 equipments, for structural and services less than one million, 55 publication of the request in the Phil. Government Electronic procurement System were made. Prepared 10 job orders for the hiring of pakiao employees and for structural services only 18 sealed bidding were done. A total of 853 purchase requests 186 abstract of quotation and 186 canvasses including sealed quotation were made, 84 pre-repair inspections were done and about 290 deliveries were completed throughout the year. The unit also prepared 290 vouchers for payment of the delivered items. Property and Procurement unit issued supplies and materials, Inventory Custodial Slips and Property Acknowledgement receipts to end users. Registered ten motor vehicles and paid insurance policy amounting to Php238,642.53 and reported and claimed comprehensive insurance damages to GSIS. Likewise the unit paid the insurance of SRA building including those in LAREC amounting to Php256,000.00 to GSIS. As required by the Commission on Audit, the unit conducted physical inventory of plant, property and equipment in Quezon City, LAREC and in Luzon and Mindanao area where SRA mill districts were located. The inventory is still on-going. HUMAN RESOURCE Focal unit in charge of recruitment and selection, training and or staff development, movement/ details/assignments of personnel, transfer, promotions and processing the retirement papers. Coordinated the training, scheduled seminar/workshop, health and wellness programs for the benefits of all employees. Maintain management of personnel records (210 files), in charge of all personnel transactions and acts in all request and documentation for the issuance of appointment. Conduct evaluation of employees’ compliance to Civil Service rules and regulation. For the year 2012 HR updated Plantilla of personnel for submission to the Department of Budget and Management, Civil Service Commission and Department of Agriculture. The unit also processed the last tranche of salary adjustment for employees. Out of forty three vacant positions that were published, one hundred ninety one applicants were screened/evaluated and coordinated with the Philippine Heart Center for the administration of psychological examination. A total of twenty two appointments and ten contracts of services were processed.
Updated leave cards and processed 97 applications for monetization of leave credits. Evaluated payrolls/receivables of employees in relation to their salaries, wages and benefits. At present SRA have two hundred eighteen regular plantilla positions, four contractual and six job orders. Prepared/drafted 154 special orders, 438 communications, certifications of service records, employment and compensation, queries and request of other agencies which concern employees were given prompt action and printed/issued 115 identification cards to SRA employees. RECORDS/LIBRARY Undertakes updating and up keeping of physical records of SRA. For year 2012, Record Section have delivered 2,809 communications to other agencies, 186 special orders, 26 sugar orders, 49 memorandum and other relevant information materials to industry stakeholders for the continued viability and sustainability of the sugar industry. More than 20,000 documents were released/faxed to government, private offices and individuals. A total of 1,428 administrative issuances, circular letters, sugar orders, travel orders, special orders and other documents were recorded. The unit also received and recorded a total of 3,809 incoming documents from SRA Bacolod, field offices and other government and private offices. The SRA Library maintains the sugar publications, books and periodicals and provides library materials and services to SRA personnel/researchers and other clients. MEDICAL Rendered medical assistance to employees in times of emergency. The unit assisted the Unilab Medical Team in giving/injecting the first and second dose of Hepa B vaccine, responded to calls from different divisions regarding health conditions especially on emergency cases that needs referral to the nearest hospital and dispensed over the counter medicines for minor aches, fever, hypertensions, etc. Medical Section is also in charge of processing Mutual Assistant Program and Disbursement Vouchers to the bereaved family of members. For this year the unit processed 48, procured/inventoried over the counter medicines and medical supplies. OTHER ADMINISTRATIVE WORKS Facilitated and coordinated sports and Christmas program and other activities, prepared and facilitated the renewal of Contract of Lease between SRA, NFA, Lopez canteens and MCM Adarne Media Expert Trading, coordinated with NFA, Land Bank, PNB and other canteen concessioners on the issues/concerns related to space rentals, statement of accounts and payments and building maintenance/upkeep. Monitored the rentals of 1,246 transient vendors, rentals of Social Hall, Training room and dormitories as additional earnings for SRA and employees welfare fund. Prepared a total of 372 communications/memorandum to different agencies and SRA’s lessees on different issues and concerns and reviewed and initialed 3,190 communications from all sections/units of the divisions. Reviewed the Performance Appraisal Reports of 30 administrative personnel for signature of the Department Manager, Attended 45 consultative meetings as representative to Bid and Awards Committee, Disposal Committee, Personnel Selection Board, Personnel Development Committee and assisted Welfare Fund Committee in the discharge of the functions to achieve its goals and functions. Implemented trainings on Orientation Course for 2012, Seven Habits Applications for Managers and Effective Business Writing to 90 officials and employees. Consolidated the monthly and annual accomplishment reports of the 5 sections under the Administrative Division.
ADMINISTRATIVE AND FINANCE DEPARTMENT - VISAYAS HUMAN RESOURCE SECTION For 2012 the Human Resource Unit handled mandatory retirement of two MDOs, optional retirement of seven RDE personnel, and resignation of one SPRO, transfer of one Attorney to the Provincial Prosecution Office and promotion of three employees. Administered and interpreted the following test for applicants and candidates line up for vacant positions: Multi-Dimensional Aptitude Battery II (performance and verbal), Mental Ability Test, Watson Glaser Critical Thinking Appraisal, Manchester Personality Questionnaire and Personality Testing. The unit also conducted panel interviews for all applicants/candidates for vacant positions. Consolidated the following Personality Profiling Test for SRA Visayas Employee’s Assessment: Personal Style Survey; Personality Spectrum at Work; Leadership Style and Personality Profile Survey and Behavioral Pattern Inventory. Facilitated a very successful Pre-Retirement Counseling Seminar for all SRA-Visayas employees aged 60 years old and above. Seminar was conducted by the GSIS Regional Manager. As requested, tentative computation for retirement benefits/pensions were distributed during the seminar. The HRU was able to coordinate with GSIS-Bacolod management for same day release of retirement benefits of SRAVisayas retirees and established vital linkage with GSIS Membership Coordinator for easy and fast facilitation of employee’s GSIS needs and queries. HRU was able to facilitate the attendance of al HR Staff to CSC Seminars and Trainings and continued the facilitation and coordination of administrative issues not directly related to Human Resource functions. The unit was the one responsible for the screening of the film “PUREZA”, the story of Negros Sugar” exclusively for SRA-Visayas employees and conducted an open forum with the President of the Negros Pureza Foundation. ACCOUNTING SECTION Reconciled PPE records from Accounting with Property records and reduced variance by Php 2.3 millions. Reconciled books of treasury with books of accounting and caught up with backlog of three (3) months at Corporate and ACEF Fund and effectively adjusted the ACEF assets turned over by MDDC by Php 2M. The section also accelerated reports submission backlog of two (2) months to now zero backlog. Processing of DVs increased due to intervening projects and processing of Magna Carta benefits which is done twice a year has accelerated from backlog of 11/2 months to zero backlog. Set up beginning balances of various other payables accounts not set up since 2005 with a total amount of Php874,893.41 and corrected significant erroneous reporting of Cash Collecting Officers on funds to be remitted to Sugar Master Plan with reporting discrepancy of Php11,286,101.77 overstatement of funds which should be reported as monitoring raw sugar instead of anti smuggling and thus avoided over remittance of the above said amount to the Sugar Master Plan. Old Nasutra chemical stocks was also brought to the management attention for inclusion on the books of Php603,83618. Together with IT staff and Treasury, the Accounting was able to set-up computerized check issuance and check issued reports thereby reducing check issuance errors costs which is Php3.50 per check. New accounts data base for easy monitoring for several trust accounts namely: due to DAR Block Farming; other funds- Trialist Project; Sugar Master Plan (Optimum Economic Hauling Distance Study) and SRA and PHILVIN Coop Project was also set up. BUDGET SECTION The Budget Section continued to pursue its aim in providing on-time reports and monitoring of budget for the Sugar regulatory Administration-Visayas For CY 2012 the section has processed 3783 Budget Utilization Requests for 2744 Disbursement Voucher, 801 Job Orders and 238 Purchase Orders. Budget Section generated reports which include monthly incurred expenses, up-to-date expenses, budget balances, tabulation of travel expenses of individual employees and per unit expenses of each account for Personal Services, MOOE and projects. It supervised and controlled appropriation for approved equipment and capital outlay for each department. Coordinated Activities of personnel responsible for formulation, monitoring and presentation of budget for controlling funds to implement programs objectives of different units under GASS, SO, RDE and PCRO. Implemented the per project expenses of each unit so as to
closely monitor the budget available for each fund including the new trust fund under the joint project of DAR and SRA Block Farming Project and made sure that all expenses were in line with all projects proposal by each department. Provided quarterly budget monitoring for each department and their corresponding expenses for each project which is submitted to Planning Department- Quezon City and directed all preparation of regular and special budget reports to provide the office timely and accurate reports as basis for short term and long term budgeting. TREASURY SECTION A total of 3,882 checks were issued which amounted to Php138,397,81601, released to claimants 3,440 disbursement vouchers, and issued 8,176 official receipts amounting to Php42,026,807.83 both Corporate and Shipping permit collection. Together with Accounting and IT, the Treasury Section was able to fully implement computerized system of checks issued and reports which result in reduction of errors in typing manually on checks and minimized checks replacements. It also accelerated submission of reports of checks issued and resulted in timely reconciliation of treasury cash balances per books. RECORDS / LIBRARY SECTION The Record Section staff attended seminar for Records Center and Archives Management on the last Quarter of the year 2012. The Record Section released requested documents to various clients which generated an income of Php75,590. The photocopying of 106,998 various documents also earned an income of Php8,191.75. Released, mailed, faxed and/or delivered 3,053 correspondences to SRA Quezon City, La Granja and other agencies. Received recorded 10,114 incoming documents from SRA-Q.C.,Regulations, LGAREC, Mill Districts Offices & other agencies, Mailed/Delivered 686 check allowances, TEVs of field man, office rentals, electric, water and telephone bills, messenger fees and miscellaneous expense (Outside Station). Disseminated 7,109 various documents to different Departments/Divs./Units officials and employees concerned and complied, classified and filed 8,027 documents received. PROPERTY AND PROCUREMENT SECTION On procurement management – processed various Purchased and Job Orders requested for by SRA-Bacolod and LGAREC which include 234 purchase request; 256 purchase order; 69 job request and 61 job orders, posted 306 transactions for PHILGEPS and 350 total award notice abstracts. On property management the section conducted annual physical inventory with Accounting and Property, Plant and Equipment to include Sugar-ACEF-funded properties assigned to various mill districts offices and the extension/satellite offices of SRED-Iloilo, Dumaguete and Cebu. It also performed two physical inventories of office supplies being stored at the depot and 12 reports were submitted to Accounting on a per month basis on the Stock Balances. The unit administered process of disposal pre-requisites in the disposal of unserviceable properties thru public bidding. Two disposal were conducted during the 2nd and 4th quarter of the year and witnessed and facilitated the turnover of properties of retiring employees. Facilitated (as a conduit of IAS-Q.C. on the transfer of ownership of Sugar-ACEF funded properties under the book of accounts of SRAVisayas to the various Mill District Development Councils (MDDCs) and lastly continued close coordination with Accounting on boo reconciliation of fixed assets against physical count. On administrative management, general supervision and management of 5 employees as to functions/duties engaged in property and procurement, attended Procurement of Supplies and Disposal Management seminars and processed renewal of firearm licenses and special permit to purchase and move explosives/ingredients with the Phil. National Police Provincial and Regional Offices.
GENDER AND DEVELOPMENT (GAD) –Quezon City 1. 2. 3. 4.
Conducted six (6) gender related trainings/workhops, one (1) livelihood training on Muscovado making, and one (1) seminar on Sugarcane Farming Skills Development . Participated in the celebration of Rural Women’s Month Participated in the DA-GAD regular meeting Renovated a room to serve as SRA-GAD Center.
GENDER AND DEVELOPMENT (GAD) – Visayas 1. 2. 3. 4. 5. 6. 7. 8.
Participated in two (2) gender related trainings/seminars Conducted one (1) Planning Workshop Conducted monthly meetings as the need arises Participated in the celebration of Rural Women’s Month Conducted three (3) seminars on Diabetes, Hypertension and Rheumatism Prevention Conducted survey on existing resources Conducted Sugarcane Farm Management Seminar for the ARCs and other livelihood seminars Conducted Gender Sensitivity Trainings to sugarcane farm workers including wives of Agrarian Reform Beneficiaries (ARB’s)
Annexes
THE SUGAR BOARD
Hon. PROCESO J. ALCALA Secretary, Department of Agriculture & Chairman, Sugar Board
MA. REGINA BAUTISTA-MARTIN SRA Administrator & Co-Chair, Sugar Board
Atty. JESUS L. BARERRA Member, Millers’ Sector
PABLITO S. SANDOVAL Member, Planters’ Sector
SRA EXECUTIVE OFFICERS
AIDA F. IGNACIO, CESO V Deputy Administrator II
DOMINADOR T. VILLANUEVA, JR., CEO VI Assistant Administrator, Visayas
Manager III, Regulation Department — Visayas DAISY CORAZON N. FABIA Manager III, Regulation Department—Luzon & Mindanao
FERNANDO H. CORPUZ, CEO VI Manager III, Research, Dev’t & Extension Department Luzon & Mindanao
DORETA A. DELOS SANTOS, CEO VI Manager III, Research, Dev’t & Extension Department Visayas
Atty. RAUL M. LABAY Attorney VI, Legal Department
LUIS M. MARAJAS, CEO VI Manager III, Internal Audit Service Department
ROSEMARIE S. GUMERA, CEO VI Manager III, Planning and Policy Department
JOSEPHINO M. AGOSTO, CEO VI Manager III, Administrative and Finance Department
