FROM THE CHAIR

By Owen Menkens
CANEGROWERS Chairman

Recently, I was fortunate enough to travel with our CEO Dan Galligan to Cali, Columbia for the World Association of Beet and Cane Growers (WABCG) annual convention.

CANEGROWERS is proud to be part of this association that has members from 34 beet and sugarcane producing nations and the annual conference is a great opportunity to meet farmers from across the globe and discuss our shared and individual challenges. WABCG members are primarily grower representative bodies, like CANEGROWERS, that work with and advocate for farmers in their home countries.

This year's gathering was the first face-to-face meeting since 2019, with the past few conferences held virtually due to Covid. The 2023 conference also coincided with the 50th anniversary of Columbian grower organisation Procana, so in addition to international visitors, more than 150 Columbian growers were in attendance.

There were some interesting presentations from Columbia and around the world. One of the more interesting discussions was about the new EU green deal. This regulation aims to reduce the use of chemical pesticides and nutrient runoff by 50% by 2030. They also want to reduce fertiliser use by 20%, as well as converting 25% of total farmland to organic.

These strategies will have a massive effect on the EU’s ability to feed itself going forward. The reduced use of many chemicals, as well as the phase out of glyphosate in 2025, is already having a huge effect on beet growers.

Similarities and Differences

Sugar beet is a four to five month crop, which is harvested during the cooler months of the year in Europe and the US.

Although the climate in which sugar beets are grown is generally completely different to ours, the issues that growers face, such as input prices, mill performance, contract negotiations, government regulation, etc. are very similar.

Columbia, on the other hand, has a unique set of challenges. The South American nation produces around 20 million tonnes of sugarcane and about 2 million tonnes of sugar annually. However, due to the country's proximity to the equator, which sees about 30 minutes difference between the longest and shortest days of the year, there is practically no seasonal change. This means Columbia's crop grows continually and the industry harvests year-round. This combination of factors results in high yields of around 120 tonnes per hectare, but low CCS of just 9-10 units across the industry.

Mills are responsible for all harvesting and transport, with about half the crop mechanically harvested and the rest hand cut.

Growers are paid a flat rate of 58kg of sugar per tonne of cane. Because of this there is no real incentive for higher CCS.

Growers also get paid for about 40% of the ethanol value that is produced. As a result, Columbian growers on average receive a little bit less per tonne of cane than Australian growers, but their labour and harvesting costs are very low.

Australia will host the WABCG conference in 2025 and we look forward to inviting all the members to the forum so that we can showcase the Australian approach to farming.

I was saddened to hear of the recent passing of industry stalwart Kerry Latter. Kerry was an integral member of the CANEGROWERS family and played a pivotal role in the development of many key industry policies, not just at district level, but at a state level as well, my condolences to his family, friends and the Mackay community. 