INDUSTRY IN FIGURES

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SECTION 4 INDUSTRY IN FIGURES

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Australian production

Source: SRA Mill Stats 2017 Season

ABOVE: Australian cane farmers produced 33.3 million tonnes of cane, down on the 2016 crop of 36.5 million tonnes. This was due in part to the impact of Cyclone Debbie in the early months of the year. BELOW: Again, largely as a result of Cyclone Debbie, sugar production fell in 2017 to around 4.5 million tonnes, slightly back on last year.

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Source: SRA Mill Stats 2017 Season

ABOVE: In 2017 the mills continued the push to expand the area planted to sugarcane and this resulted in well over 5000 ha of additional harvested cane.

BELOW: Both cane and sugar yields were significantly reduced by the impact of Cyclone Debbie.

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World production

SOURCE: ABARES Ag Commodities Sep Qtr 2018 s ABARES Estimate

ABOVE: Despite ongoing health concerns being raised about sugar, world consumption and production continues its upward trend.

BELOW: Brazil continues its production dominance. Although down slightly on 2016-17 at 38 million tonnes, Brazil’s sugar production was still 6 million tonnes ahead of its nearest challenger – India.

The international scene

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World Sugar

Price: From the relative highs of last year, prices have plummeted to their lowest level in nearly a decade.

Source: Australian Commodity Statistics 2017

Major Importers: Asia remains our major market – we are seen as a sustainable producer of a high quality product which is reliably delivered.

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NOTE: Includes exports of both raw and white sugar measured in raw sugar equivalents. SOURCE: USDA Sugar World Markets Trade May 2018

ABOVE: In terms of exports, Australia (3.7 mt) is ranked equal third in the world with the EU, a long way behind Brazil (28.2 mt) and Thailand (9.5 mt). BELOW: Indonesia, closely followed by China, was the largest importer of the world’s 2017-18 sugar production – both are significant clients of the Australian sugar industry.

2018

SECTION 5 AUSTRALIAN CANE FARMERS 2018 This section brought to you in association with

The Australian Cane Farmers Association

ORGANISATIONAL STRUCTURE

NORTHERN REGION Don Murday Director Chairman Ph: 0418 774 499 E: mangopk@bigpond.net.au Gerard Puglisi Gen Officer Ph: 0428 988 136 E: gtpuglisifarming@bigpond.com Michael Camilleri Director Ph: 0419 738 702

Deputy Chairman (Junior) & Next E: maalacaneng@bigpond.com HERBERT REGION Carol Mackee Director Ph: 07 4777 4957 E: cjmackee@activ8.net.au

CENTRAL REGION Steve Fordyce Director Ph: 0408 883 907 E: stevefordyce@bigpond.com

Stephen McKeering Director

Ph: 0439 088 654 E: stevemckeering@hotmail.com

NSW REGION Robert Quirk Deputy Chairman (Senior) Ph: 0413 677 727 E: rgquirk@bigpond.com BURDEKIN REGION Appointment pending SOUTHERN REGION Michael Hetherington Director Ph: 0407 621 694 E: randomdudesfarming@hotmail.com Stephen Ryan General Manager

Ph: 07 3303 2020 Freecall: 1800 500 025 Fax: 07 3303 2024 E: StephenRyan@acfa.com.au

Alicia Opajdowska Administrator Ph: 07 3303 2020 Freecall: 1800 500 025

Fax: 07 3303 2024 Australian Cane Farmers Association Ltd

Level 3, 447, Upper Edward St Spring Hill, Brisbane 4000

Postal address:

GPO Box 608, Brisbane QLD 4001 Ph: 07 3303 2020 Freecall: 1800 500 025 Fax: 07 3303 2024 E: admin@acfa.com.au Website: www.acfa.com.au

SECTION 5 AUSTRALIAN CANE FARMERS 2018 This section brought to you in association with

SECTION 5 AUSTRALIAN CANE FARMERS 2018 This section brought to you in association with

Don Murday, Chairman.

O By Don Murday – ACFA Chairman

SUBSIDISED sugar production continues to supress prices and threating the viability of non-subsidised sugar industries.

The Global Sugar Alliance of exporting countries says the Indian Government’s approval of a Rs. 5500 crore (USD760 million) support package for its sugar industry, including assistance to export up to five million tonnes of subsidised sugar, is a snub to world trade rules, adding a new layer of distortion to the world sugar market.

Already down by 36 per cent in the past year, sugar prices sank to a new 10-year low as the market reacted to the announcement and the fact that the world market no longer reflects the cost of production in the most efficient producing nations.

Greg Beashel, Chairman of the Global Sugar Alliance and QSL Managing Director and CEO said that, “The illegal subsidy announced by the Indian Government caused life-of-contract low prices in the subsequent trading session of the world sugar market.

“If the subsidy is not repealed, dire social and economic consequences will be felt by sugar producing countries around the world. The Global Sugar Alliance calls on governments from sugar producing countries around the world to launch a WTO action to limit the damage.

“The illegal subsidy has serious consequences for the Australian sugar industry and the regional communities it supports, driving world prices well below the cost of production. The Australian Government needs to take action immediately to prevent the unsustainable sugar policies of India decimating the returns of Australian producers.”

Sue Neales, writing in The Australian, explains that “India is heading to a general election in April next year and, with more than 50 million people farming sugarcane or working in its sugar mills, generous crop incentives have seen national sugar production leap from 20 million to 35 million tonnes this year, with the surplus heading for export.”

“Australia says subsidies to Indian canegrowers – who form one of the biggest voting blocs in the country – far exceed the level of farmer assistance permitted under WTO rules of a maximum 10 per cent of the total value of the industry’s average production.”

Eduardo Leão de Sousa, Executive Director UNICA said, “With this bitter announcement, India sends the wrong signal to the Indian producers and, in parallel, hurts even more the revenues of mills and cane growers throughout the world.

“Artificial solutions such as export aids may seem to be an easy solution to get rid of surpluses but they are highly distortive for international trade and must be condemned. The Brazilian industry does not see these measures as an option and we have been encouraging our government to challenge them in the WTO dispute settlement mechanism.”

Vibul Panitvong, Chairman of the Executive Board, Thai Sugar Millers Corporation: “The Thai industry along with the Office of Cane and Sugar Board have asked our country’s Mission at the WTO in Geneva to raise urgent questions with India. It is important that all countries work together on this.”

Leopoldo Bolaños, International Trader, Guatemalan Sugar Association: “Improved trading conditions are in everyone’s interests. Subsidised sugar exports must not be allowed to prevail.”

Global Sugar Alliance members are committed to supporting the effectiveness of the WTO. Its rule setting, monitoring and dispute settlement functions deliver real benefits to the world economy, generating employment, raising living standards and lifting people from poverty.

Reef regulations

The Queensland Government is finalising plans to tighten up reef regulations in a new Bill. While the details are still being negotiated with agricultural industries, the Government wants to submit the Bill in 2018, but there are only seven sitting days available in November and December.

The bill would be introduced along with the decision Regulatory Impact Statement (RIS). The Bill would be in committee over summer until the committee sits in January/February 2019. Commencement of the new regulations could be as early as March 2019.

All of this hits home while environmental lobby groups press Government for stricter measures before the industry has been able to fully implement the current measures, including the industry owned BMP program. This is clear evidence that the insatiability of interest groups results in a changing of the regulatory goal posts, which in turn makes it difficult for industry to deploy agreed programs and for farmers to comply and to build trust.

Wishing you all a safe and profitable conclusion to the 2018 season.