From the Chair

BY OWEN MENKENS,
Chairman, CANEGROWERS

The final countdown has begun, with Queensland’s 2023 sugarcane harvest winding down across most regions.

Already Bundaberg, Isis, Maryborough and Mossman have completed their crush, and by the time you read this column, Cairns, Herbert River, Burdekin and Proserpine will most likely have followed suit, weather permitting.

A few districts are running behind schedule due to wet weather and mill availability issues, but with a little luck we will get most of the crop crushed before Christmas.

While still not ideal, this is a huge improvement on last year. The drier weather has helped, but unfortunately it is also a side effect of last year’s extended crush.

When the harvest goes into January it is quite difficult to grow a decent crop, which was been the case for this year. Mill performance has been slightly better than last year in most areas, but we still need more effort by milling companies to get our mills up to 85-90% availability.

There has been some sad news for Mossman growers with Far Northern Milling going into voluntary administration.

This is a very concerning time for growers who are unsure as to whether their cane will be crushed next year.

CANEGROWERS has been working with all the stakeholders to try to make sure that the mill can continue.

Sugar mills are an important part of a community fabric, especially in a town like Mossman.

Hopefully there is a way they can trade their way out of the situation and give growers the confidence they need to invest in their crop for next year and in the years to come.

It is vitally important that whatever decisions are made, CANEGROWERS Mossman is one of the key decision makers.

It is also sad to see what is happening with the current arguments around our sugar terminals. The Sugar

Terminals Limited (STL) AGM sadly turned into an exercise in accusations without any fundamental justifications for the insourcing decision or any long-term plans for the terminals’ functions.

Growers have long memories, especially when it comes to the assets of which they funded over 60% of the construction costs.

These terminals give the Australian sugarcane industry a competitive advantage, as sugar produced during the crush can be held over in storage for the March-May contracts.

As we look at the world market now, the ability to hold sugar over for another contract can make a big difference in the final price achieved by growers.

Therefore, terminals should be looked at from a whole of industry perspective and not necessarily a pure return on investment method.

STL, as a listed company, will always have to try to maximise return for its shareholders.

It can consult with growers, but at the end of the day it will always be bound by the corporate governance rules of a listed company.

It did not consult with cane growers prior to making the insourcing decision, which is allowed under the corporate structure of its organisation.

In making this decision though, STL must give growers undisputable evidence as to why this decision was made. At this stage, we feel this evidence has not emerged.

The other major issue is that the relationship between STL and Queensland Sugar Limited has become very toxic, as evidenced at the STL AGM.

This brings into question how the new storage and handling agreement will be negotiated without emotions getting in the way. CANEGROWERS will need to get involved if this process fails.

Lastly I would like to wish you all a merry Christmas and a happy new year.