BUNDY SUGAR OWNER SEEKING SWEET DEAL

One of Australia's most iconic brands could soon be on the market, with recent media reports claiming Belgian sugar giant Finasucre is seeking $600 million for it's fully integrated growing, milling, refining, engineering and molasses operations in Bundaberg.

News that Finasucre was considering selling its significant assets in Bundaberg came as a surprise to many when it was revealed in a company announcement on 24 August.

Not only is the company one of Australia’s best-known brand names, it is also Queensland’s largest cane grower, in addition to being a miller and refiner of sugar.

CANEGROWERS Chairman Owen Menkens said Finasucre's announcement was sign of confidence in the industry.

"Finasucre’s decision should be seen as a sign of the strength and vitality of Queensland’s sugarcane industry and the international sugar market more generally," Mr Menkens said.

"And, if media reports are correct, it may also be a sign that outside investors are starting to sit up and take serious interest in the emerging opportunities within our industry."

According to the company's announcement, it was interest from potential buyers that sparked Finasucre's decision to investigate selling its Bundaberg assets.

The Australian Financial Review later reported that that interest had come from ' those eyeing it as a source of green energy.'

"Of course, these are only third hand reports at present and, with such a large market share of Australia’s domestic sugar sales, it’s hard to see Bundaberg Sugar moving away from sugar production any time soon, but options exist for complimentary processing investments," Mr Menkens said.

"But the fact that investors are considering the purchase of an asset worth more than half a billion dollars to produce green energy, shows just how rapidly the industry is progressing towards becoming a powerhouse of the emerging bioeconomy."

News of the sale comes just weeks after the Queensland Government announced it would earmark more than 1000 hectares in Mackay for the development of a biomanufacturing zone adjacent Mackay Sugar’s Racecourse Mill.

The industry, led by CANEGROWERS, Sugar Research Australia, and the Australian Sugar Milling Council, launched the Sugar Plus roadmap in 2021 outlining the industry’s goal of diversifying into sustainable, value-adding products such as biofuels and green energy.

"Since then, CANEGROWERS has been working with government and other industry stakeholders to make the road map a reality. We will continue that work to ensure the industry grows and thrives for the benefit of everyone in the existing sugarcane supply chain and the wider Queensland community," Mr Menkens said.