Sugar prices to rise in Clarence

CLARENCE Valley cane farmers can sleep easier in the knowledge that sugar prices are on the rise again after last year's dramatic price drop.
NSW Sugar Milling Co-operative CEO Chris Connors yesterday confirmed that things were looking up for the State's sugar industry.

Queensland industry group Canegrowers this week predicted prices would rise to $400 per tonne next year.

Mr Connors agreed with that prediction, saying current and forward prices were well above that figure.

The prices now being talked about are a big change from last year, when sugar slumped to $300 per tonne as a result of frosts and wet weather.

Mr Connors said Clarence Valley cane farmers would benefit from the price jump.

"The current prices, along with a depreciating Australian dollar, mean that the co-operative and its members can expect stronger prices from 2009 going forward," he said.

The industry is expecting world sugar prices to be pushed up next year by a significant decrease in sugar production in India and Brazil.

While the co-operative's Sunshine Sugar brand delivers into the domestic market, Mr Connors said the world sugar price still played an important role on domestic prices.

This will be welcome news for Clarence Valley cane farmers who have been struggling to meet rapidly increasing production costs.

Mr Connors said NSW Sugar was working closely with advisers and refinery partners to deliver a good price for the farmers.

"It is important for Sunshine Sugar to put in place pricing arrangements which will allow its members to take advantage of these prices and lock them in for a number of years," he said.

source:dailyexaminer