Mackay cane farmers vent frustrations over rain, mill breakdowns, extending 2021 season

It should be a time of celebration and sleep-ins but instead canegrowers now expect to be harvesting on Christmas Day. Read why there is at least 700,000 tonnes still to crush.

What should have been a bumper year for Mackay region cane growers has soured into “flushing money down the toilet”.

It is a bitter reality coming into the holiday season as rainfalls of up to more than 300mm dampen spirits already depressed from breakdowns plaguing Mackay Sugar’s Racecourse Mill.

Nordzucker, which owns the majority share in Mackay Sugar, said it accepted factory performance had contributed to delays but it had a long-term plan to fix the issues.

Industry leaders estimate the mills have at least 700,000 tonnes still to crush, leaving about $30-35 million hanging in the balance for farmers.

Canegrowers Mackay chairman Kevin Borg said the crush could extend into the New Year, well past growers’ preferred early November finish date.

“(It’s) a bit of a disappointment,” Mr Borg said.

“Christmas is usually a time for celebration and spending time with families.

“Mill breakdowns have been the thorn in the side of everybody.

“We struggle throughout the hard times; when there’s good pricing and there’s good crop, we’d like to make hay while the sun shines.”

Global sugar prices reached about $600 per tonne this year, compared to less than $400 the year before, thanks to a worldwide deficit driving high demands.

A truck loaded with sugar bags at a mill in Uttar Pradesh, India. Picture: Elena Del Estal for the Wall Street Journal

It follows India’s announcement it would not grant another round of grower subsidies after Australia teamed with Guatemala and Brazil in late 2020 to lodge a formal dispute with the World Trade Organisation alleging the sugar giant had breached international trade rules.

Industry sources suggested the WTO would soon hand down its decision with the four countries sharing last-minute discussions.

Dawson MP George Christensen, Canegrowers QLD chairman Paul Schembri, Minister for Trade, Tourism and Investment Dan Tehan, Erakala sugarcane farmers Victor and Andre Camilleri, Canegrowers Mackay Area Committee chairman Frank Perna, Canegrowers Plane Creek Area Committee board member Serg Berardi, Canegrowers Mackay chairman Kevin Borg and Canegrowers Mackay chief executive officer Kerry Latter at a shed talk in February about the WTO dispute. Picture: Heidi Petith

Mr Borg said farmers were now facing crops losing up to half their CCS (sugar content), mills rejecting bins because of too low CCS, and having standover fields chewing into the 2022 season’s profits.

“The mills just don’t get it,” he said.

“I don’t like being negative about these things but the industry needs to have a good look at itself.

“We’re in a downward spiral because the cane’s not good because we’ve crushed longer, and the mills don’t invest because they haven’t had the cane through.

“We’re flushing money down the toilet.”

Already behind on the 2022 season will be Andre Camilleri with the Erakala family farm receiving more than 250mm rain in recent days.

Mr Camilleri said he was pinning hopes on a week of sunshine and no more mill breakdowns.

“It’s not uncommon to get rain at this time of year, there’s nothing we can do about it,” Mr Camilleri said.

The Camilleri's cane farm at Erakala in Mackay was inundated with rain and now faces crushing being stood over into the 2022 season. Picture: Heidi Petith

“It’s just frustrating that the crush has been extended for so long due to factory performance over the whole season.

“We have 8500 tonnes left to harvest.”

Erakala sugarcane farmers Victor Camilleri and his son Andre Camilleri. Picture: Heidi Petith

Mr Camilleri said the Nordzucker Group (majority shareholder of Mackay Sugar) had inherited “such a run-down factory” and had a “long road ahead” to replace ageing machinery.

Further north, Proserpine Mill officially tipped its last cane bin at 9.50pm on Friday, November 19.

It processed about 1.56m tonnes of sugarcane to make about 230,000 tonnes of raw sugar.

Wilmar’s Mackay Regional Operations Manager Craig Muddle said it was a successful season, thanking the entire Proserpine community including growers, harvesters and mill employees.

A Mackay Sugar spokeswoman said they had regularly communicated with growers, including through forums, about factory performance in a commitment to transparency.

“This year we have seen several unplanned stoppages at our mills,” the spokeswoman said.

“Although some were preventable and have since been rectified, many have been the result of the high levels of wear and tear that come with aged and specialised equipment.”

The spokeswoman said modelling suggested a crush end date of between December 22 and 25 but weather would likely impact this.

“A late end to the crush means a shorter maintenance season, however we have taken a number of measures to kick start our maintenance program wherever possible by using cane supply shortages and unplanned stoppages to bring forward important tasks,” she said.

“Finishing the crush late in the year is certainly not a position we intend to be in, and our five-year plan will support us in crushing out earlier in the future.”

The spokeswoman said Nordzucker recognised the value of Mackay Sugar in becoming majority shareholder in 2019 with an investment of about $210 million penned for capital improvements in the first seven years, on top of annual maintenance and operation costs.

“Nordzucker’s investment is testament to the importance of Mackay’s sugar cane industry on a global scale, and demonstrates the potential Mackay Sugar has for long-term viability and success,” she said.

Canegrowers Queensland chairman Paul Schembri. Picture: Heidi Petith

Canegrowers Queensland Chairman Paul Schembri said Mackay canegrowers had company in their hopes and prayers to get stalks to the mill with 1.5-2 million tonnes of cane yet to be harvested statewide.

This included across Isis, Bundaberg, Maryborough, Tully and the Burdekin.

“Obviously the lion’s share of that is in the Mackay district, around 7-800,000 tonnes,” Mr Schembri said, adding this meant about $30-35m hung in the balance for farmers.

He said delays were not only hitting farmers’ cash flows but also communities with $6.42 injected into regional economies from every $1 spent growing cane.

“We cannot continue with seasons (in Mackay) around 27 to 30 weeks,” he said.

“Unless we start getting Mackay Sugar back to 20 to 24 weeks, it’s not going to be helpful for future productivity.”