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UPDATE 1-Philippines' farm minister fears sugar price spike as coronavirus shuts mills

Published 04/15/2020, 06:20 PM
Updated 04/15/2020, 06:30 PM
DMPL
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* Interactive graphic tracking global spread of coronavirus:
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https://tmsnrt.rs/3aIRuz7 in an external browser

(Updates with Del Monte Philippines' statement, paragraphs 9
and 10)
MANILA, April 15 (Reuters) - The shutdown of two of the
Philippines' major sugar mills due to coronavirus-containment
measures could lead to a domestic shortage and trigger price
spikes, the country's farm minister said on Wednesday.
Agriculture Secretary William Dar appealed to Bukidnon
Governor Jose Maria Zubiri Jr., who placed the southern province
under total lockdown from April 13 to April 26 after it recorded
its first coronavirus case, to minimize any economic impacts.
Two major sugar mills, Crystal Sugar Company Inc and
Bukidnon Sugar Milling Co, have stopped operating as a result of
the provincial directive, Dar said in a statement.
The two mills produce 82% of total sugar output of the
southern island of Mindanao and account for 16% of the country's
total production.
The Southeast Asian nation is not a regular sugar importer,
but when necessary it usually buys from Thailand, the world's
second-largest exporter after Brazil.
While Dar commended Zubiri's move to prevent the spread of
the coronavirus, he said all local governments "should ensure
that any health-related measures will not disrupt the food
supply chain".
Zubiri's directive has also barred banana and pineapple
plantations in the province from operating during the two-week
lockdown, Dar said, without identifying the affected fruit
producers.
Bukidnon is home to one of the world's largest pineapple
plantations, which is owned by Del Monte Philippines Inc
DMPI.PS , a unit of Singapore-listed Del Monte Pacific Ltd
DMPL.SI .
In a statement sent to Reuters, however, Del Monte
Philippines said its pineapple operations in Bukidnon were
allowed to continue and its personnel were exempted from home
quarantine.
"Our operations have continued across all our sites and
facilities, including Bukidnon plantations and Bugo
manufacturing in Cagayan de Oro (province)," the company said.
Dar said the directive had affected about 19,000 workers
employed by the two sugar mills and fruit producers.
"We appeal for your deeper understanding on the importance
of the unhampered movement of food and agricultural workers in
minimizing the economic impact of the coronavirus pandemic," Dar
said in a letter to Zubiri.
A spokesperson for Bukidnon province did not immediately
reply to a request for comment.

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