Growers anticipate sweeter future

THEY’VE been through an “economic and social tsunami” but Mackay region cane growers can finally look forward to better times ahead.

That was the message from Mackay Canegrowers Limited chairman Paul Schembri yesterday as 200 cane farmers packed into the Souths Leagues Club conference room for the organisation’s annual general meeting.

Mr Paul Schembri introduced several key speakers including Mackay Canegrowers Limited chief executive officer Kerry Latter and deputy chairman Ted Bussey.

Other speakers included Ravensdown Fertiliser Australia general manager Alan Thomson, who updated growers on the progress and supply of fertiliser and other services in 2010.

Tom McNeil, of Kingman, South Australia, spoke about the future of world sugar and ethanol markets while Mackay Canegrowers Limited senior manager environment and natural resources Matt Kealley gave an update on the impending reef regulations.

Mr Schembri said the sugar industry’s future in the next few years was looking bright. One of the positives was the price of sugar was trading between 20 and 25 cents US a pound, which is the highest it has been in 20 years.

“About 12 months ago we were not in good shape, dealing with the strains and stress of the past 10 years of adversity,” Mr Schembri said.

“However, in the past 12 months there has been a positive turnaround in the industry and it is the first sign that we are back on track to a sustainable future.”

Mr Schembri said reasons for the turnaround included a drop in the cost of fertiliser and the rising international sugar prices.

He said international sugar prices had been affected by floods, droughts, diseases and pests and this year was no exception.

“India has been problematic to us in recent years.”

He said India’s production had been failing due to monsoonal weather, which was a good sign for Australian cane farmers.

However, cane growers’ problems weren’t over yet and they weren’t on easy street.

“We have been through an economic and social tsunami.”

Mr Schembri said profits had been made this year but would be used to pay off existing debt.

“The milling sections are growing and many assets are old and need refurbishing.

“We are not silly, not all our problems are gone – we need a couple of good seasons with high sugar prices to get back on track.”

One of the most heated topics at the meeting was the State Government’s plan to implement run-off regulations to protect the reef in January next year.

Mr Schembri said it was disappointing that no one representing the State Government had been at the meeting to look each cane farmer in the eye while outlining the effects of the regulations on the industry.

“When the legislation comes into effect it will be a day when the politicians shout how they have saved the reef – but that will be the day that marks the greatest sell-out of the sugar industry,” he said.

The State Government will meet with cane farmers before Christmas to outline required changes to the amount of fertiliser per farm, the ban and use of certain chemicals.

source: dailymercury