SUGAR MARKET ON THE MARCH – AN OPPORTUNITY WORTH NOTING

BY DAN GALLIGAN CEO CANEGROWERS

Australian cane growers are more exposed to impact of the global sugar market than any of our competitors. Growers in our industry survive without any protection from government policy or subsidies.

This is not the case for many of our competitors in other parts of the world. The sugar market has many influences, the largest of which continues to be supply and demand fundamentals. Despite a persisting trend to demonise sugar in the diet, sugar consumption continues to be on a steady rise in many parts of the world. The steady, not spectacularly but consistent, growth in consumption has been the backbone of our continued success for decades. But the market is a volatile beast and times of high prices are often met with periods of lows and dramatic market corrections. Exactly when and how big this correction this may be is something that only the trade analysists and market forecasters can comment on. At the industry level for CANEGROWERS it is as important to try and predict how long this period of good prices might last as it is to try and analyse why the market is where it is now and when will these conditions exist again.

Through our Business Essentials training, Market Information Services and regular global engagement with sugar buyers, traders and colleague producers we seek to gain and provide insight to growers about how best to take advantage of available good pricing. For CANEGROWERS the organisation we also seek to see this as an opportunity to invest in the services and human capital that will secure the

future of the industry. This may be through leadership programs, training and education strategies for schools and staff, policy work with member meetings, policy committee sessions with growers and work to look at our technology platforms to increase services and communication to members.

The global sugar market is highly complex and subject to a wide range of factors that can impact prices. While increasing demand for sugar is a significant driver of price increases, changes in weather patterns and government policies can also have a significant impact. Regardless of whether it is for individual growers or CANEGROWERS as an organisation, seeing this time as inevitably temporary and viewing it in the context of the market conditions of the past as well as the projections for the future, means that it is all about capturing the opportunity. Being optimistic but not naive will position us to make the most of very positive market sentiment. Let’s hope the effort in our mills and harvesting crews to deliver a good harvest and milling season will see the industry and all growers reap the benefits of this high price moment in time. 