Sugar's sweet future on the Coast

The sugar industry is set to play a key role in the region's economic recovery as booming world markets excite demand for as much of the sweet stuff as the region can produce.

Maryborough Sugar CEO Mike Barry said yesterday his company would offer planting incentives, four-year fixed price contracts and cover full transportation costs from Gympie.

While only about 20,000 to 30,000 tonnes are expected to be available this season, Mr Barry said the Maryborough mill would comfortably accommodate 200,000 tonnes from this region.

The cane industry provided the backbone of the Sunshine Coast economy for nearly 100 years before plummeting prices and the closure of the Moreton Mill in Nambour six years ago saw it grind to halt.

Fields have lain idle and growers have been forced to find off-farm incomes.

Sunshine Coast council economic development head Lew Brennan said it was exciting to see the industry stepping forward to stimulate a recovery.

"This will boost the region's economy when it needs it and give us time to promote new technologies to create on-going markets for cane,'' Mr Brennan said.

"Other agricultural uses are limited and the land is constrained by flooding. Here is a solution that fits nicely and also sets the crop up for a broad range of applications.''

Mr Barry said he expected booming world sugar prices which have rebounded from as low as eight cents US per pound two years ago to US23.68 cents today and increasing to US25.01 cents through to March next year would see the industry here return to the point it made a significant contribution to the region's stagnating economy.

"We will pay transport costs ex-Gympie which will soften the freight blow for growers and put in place fixed price arrangements to give certainty and allow growers to capitalise on attractive world prices,'' he said.

Mr Barry said Maryborough Sugar would work with the cow candy project to stimulate the industry.

"We are keen to see a lot of cane growing here,'' he said.

Sugar has reached a 29-year high fuelled by the credit crunch which has slowed exponential expansion of the industry in Brazil where profitability has been impacted by the currency's relativity and by the shift of India from large producer exporter status to net importer of sugar.

A lack of monsoon rains this season has also impacted heavily on crops.

Mr Barry said with a world sugar deficit during the next two years with stockpiles being drawn down meant that the fundamentals in the medium term were as good as they have ever looked.

"From our point of view we are happy to work with Cow Candy to help revitalise the sugar industry on the Sunshine Coast and give it a kick start.''

He said the offer was there for growers to take up.

Maryborough Sugar with 5700 ha of its own holdings under cane is Australia's biggest grower.

It has been advertising to lease properties to get more crops into the ground and this week bought the Mulgrave Mill south of Cairns.

The company is targeting a 2009 crush of 730,000 tonnes up from 615,000 tonnes a year ago.

Cane would be hauled from Coast farms in Maryborough Sugar's purpose built B-doubles.

Minister for Primary Industries, Fisheries and Rural and Regional Queensland Tim Mulherin said harvesting of remnant cane on the Sunshine Coast would start today.

"The state government and the Sunshine Coast Regional Council are fully supportive of local growers in their efforts to rejuvenate an iconic local crop," he said.

"Returning the canelands to a productive state was a priority in the recently signed MOU between the Department of Employment, Economic Development and Innovation and the council."

As much as 1200ha of canelands could be involved in the first exercise of supplying cane to both Maryborough Sugar and BioCane cow candy project.

"MSF and BioCane – a company made up of local growers and private investors – are cooperating with growers to maximise the outcome," he said..

There were 9800 ha of caneland in the region prior to Moreton Mill's closure in 2003, and there is estimated to be several thousand hectares still available for cane production.

"Some growers will supply cane for the production of Cow Candy – a premium, value-added animal fodder product made entirely from sugar cane," Mr Mulherin said.

He said growers would receive much-needed income from sales to Maryborough to allow them to re-establish their properties and ensure an improved crop in 2010.

"Restoration will also help combat weed infestations, such as those covering drainage lines, which themselves are important for flood mitigation of the Sunshine Coast's low-lying areas. In time, it's hoped it will get back to being that patchwork quilt of cultivated paddocks and clean, beautiful cane that we all remember."

Source:thedaily