Cow candy sweet deal for sugar farmers

An innovative sugar cane factory, expected to generate millions in export dollars and rejuvenate the ailing industry, is back on track after the federal government agreed to fund the project.

Cow candy company Biocane at Bli Bli on the Sunshine Coast will receive a federal government grant of $1.6 million to export a novel animal fodder made entirely from sugar cane.

Korea and Japan have been earmarked as growing markets for sugar cane to make bovine sweets, despite the economic slow down.

Treasurer Wayne Swan made the announcement on Monday at the factory following strong lobbying from the community after federal budget cutbacks led to the disappearance of a promised grant to the company last year.

Local councillor Debbie Blumel, who played a key role in lobbying the government, said Biocane was expected to generate $90 million per annum from the export of 600 tonnes of cow candy.

"By having a biocane factory here we are able to value add to the raw product and bring export earnings into a regional economy," Ms Blumel said.

"When the factory opens at the end of March it is expected to create a minimum of 18 jobs initially, but the real significance is the flow on - the jobs that will be created for farmers and their employees.

"It does provide a terrific incentive for those cane farmers who have not decided (as yet) to put their cane farm back into production."

The Sunshine Coast's sugar farms suffered a massive blow when the Lawnton sugar mill closed in 2003, leading to many job losses and farm closures.

Ms Blumel said it nearly killed the industry but Biocane factory demonstrated how the industry could adapt and build a strong future.