Universal Robina Corp. (URC) has announced that it is acquiring the idle sugar milling machinery and equipment of Central Azucarera Don Pedro Inc. (CADPI).

These assets will be used to expand the capacity and improve the sugar recovery process at URC’s sugar mill in Balayan, Batangas, the company said in a statement.

URC, one of the Philippines’ largest food manufacturers, is seeking to accommodate more sugarcane farmers at its Balayan mill to help secure a source of livelihood for them.

Likewise, raising the mill’s capacity will ensure ample sugar supply for consumers, URC said.

The new machinery and equipment from CADPI, a subsidiary of listed firm Roxas Holdings Inc. that has permanently shut down its milling operations, will bring up the Balayan mill’s capacity from about 5,000 tons to 8,000 tons a day.

“The farmers are currently suffering from low sugar recovery on their sugarcane deliveries due to long waiting time in the truck yard,” URC said.

That “negatively affects their profits and may drive some of them to either stop farming or shift to other low-value crops,” it added.

“The situation, if not immediately addressed, poses a grave threat to the livelihood of the farmers, as well as the entire sugarcane industry in Batangas, and will aggravate the current sugar shortage in the country,” the company said.

Apart from acquiring CADPI’s machinery and equipment, URC’s Balayan mill is also extending its milling season - which normally ends in April - till June.

URC said its decision to acquire CADPI’s machinery and equipment has cut the time needed to expand the Balayan mill from four to two years.