Why farmers are leaving Wide Bay sugar industry

Even with the price of sugar riding an all-time high, industry stakeholders have said many cane growers are “sitting on the fence” when it comes to their future in the fields.

Inconsistent transport and uncontrontable wet weather conrtinuted to 2022’s late harvest which has put crops for the 2023 harvest behind. Pictures: Murray Spence

As input costs continue to rise and mills across the Wide Bay region close farms which historically succeed solely within the sugar cane industry are now considering a more diverse future.

A record high price for Australian sugar paints a rosy picture of the industry, however decades of lower returns have left many with no choice but to leave.

It is no secret sugar production across Bundaberg and beyond has shrunk since the turn of the century, and a Bundaberg Sugar spokesman said several factors may be contributing.

In 2004 Bundaberg Sugar was processing 2.43m tonnes of sugar cane across three mills in the region.

By 2022 two mills had closed and the tonnage had more than halved to 1.085m tonnes.

Growth in urban areas, an ageing agricultural population and broad scale investment purchases were some of the reasons behind the local industry shrinking.

In his four years as Vice-Chairman of the Maryborough Cane Growers Isaac Schmidt said he had seen a growing number of farmers contemplating their own future in the industry.

“A lot of people left before the Maryborough mill closed down, many sold their farms to macadamia growers,” Mr Schmidt said.

“There’s quite a few growers sitting on the fence to see if things get any better or not.”

Rising input and transportation costs have been the biggest stressor for local growers in recent years.

“The biggest issue everyone has is over the past two years those sending their cane from areas like Maryborough to Isis haven’t been able to get their crops harvested,” Mr Schmidt said.

Freight and logistic issues meant many farmers across the Wide Bay had later than desirable harvests, shrinking the possibility of this year’s returns leaving farmers unable to take advantage of record sugar prices.

Canegrowers Queensland CEO Dan Galligan said there was still a light at the end of the tunnel.

“There has been an enormous amount of change in the industry over the last decade,” he said.

“The cost of inputs have gone up, particularly fertiliser and energy, and that has tempered the benefits of the high price.”

Mr Galligan said each region of Queensland faced its own challenges as the industry dealt with the ebbs and flows of change.

Isis Sugar Mill has been left to carry much of the southern cane load after Maryborough Mill officially closed its doors.

“The southern sugar cane growing region including Bundaberg, Isis and Maryborough has seen changes, particularly into horticulture and crops based on returns on investments,” he said.

Mr Galligan said the changes had led to “heartbreaking” situations for growers Queensland-wide, but “there is nothing to indicate any more mills should close at all”.

He predicted the diversification of supplementary and complementary supply chains into products such as bioplastics, bio energy and sustainable aviation fuel would be producing returns for growers within decades.

“These ideas have been around for decades, but the difference even just for things like sustainable aviation fuel there is a market driver as buyers try to meet emission reduction targets,” he said.

“From a buyers perspective we want canegrowers right in the middle of these discussions and leading them to benefit from them in the long run.”