Harvest down, prices up for Australias sugar industry

Australias largest sugar miller, CSR Ltd, said today its harvest is likely to be down 10 to 15 percent compared to last year.

Excessive rains earlier this year in Queensland are being blamed for the lower than ususal sugar production.

The government's commodity forecaster last month estimated a total 2009/10 cane harvest of 31.3 million tonnes, down 400,000 tonnes on 2008/09 and the smallest crush since 2000/01.

CSR said the country's sugar output was likely to be more stable in the years ahead as high prices were encouraging farmers to maintain cane acres.

Cane farmers have prices locked in at about double what they were a year ago.

A shortfall in Indias sugar production already sent sugar prices soaring to their highest level in three years.

source: ibtimes