Hamungaya Sugar Mill Too Sweet to Sweat

by: Richard C. De Leon

Publication Date: October 7, 2016
Length: 7 pages
Product ID#: 1-005-700

Core Disciplines: No core disciplines for this product

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Teaching Note

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Established in 2013, Felipe Pachoco’s Hamungaya Sugar Mill just established its first major distribution deal for its muscovado sugar product. Muscovado is a type of semi-refined sugar that can be produced with relatively unsophisticated equipment, but the production process is not as efficient as other types of sugar. Felipe was already looking to the future, with hopes to increase his distribution, while attempting to ensure that he met existing demand. Students are asked to evaluate the sugar mill’s operation and offer suggestions about how Felipe may go about this.

Teaching Objectives

After reading and discussing the material, students should:

  • Assess the economic benefits of muscovado.
  • Identify the sugar mill’s short-term financial management problem.
  • Prepare a short-term financial plan.
  • Evaluate the benefits and risks of agri-business ventures.
  • Identify the challenges in marketing muscovado products.