Far Northern Milling has entered voluntary administration
The parent company behind Far Northern Milling has entered voluntary administration in order to secure the long term viability of the Mossman Mill.
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The parent company behind Far Northern Milling has entered voluntary administration in order to secure the long term viability of the Mossman Mill.
Directors of Daintree Bio Precinct, Far Northern Infrastructure and Daintree Bio Enterprises appointed John Goggin of Worrells, Cairns, to act as voluntary administrator of the companies.
Between 130 – 150 workers employed at the mill and 85 growers contracted to supply sugar cane to Far Northern Milling are not expected to be immediately impacted by the move and the 2023 crush will continue as usual.
Daintree Bio Precinct chairman Rajinder Singh said in a statement the appointment of a voluntary administrator was considered a proactive step in the interests of the companies and the best chance of securing a future for the Mossman Mill.
“The appointment of the voluntary administrator does not mean the immediate cessation of all operations,” Mr Singh stated in a stakeholder notice.
The voluntary administrator will assume control of the companies before assessing whether the future of entities and the Mossman Mill is viable.
Worrells will then engage with creditors and key stakeholders to assess the options available in respect of the future of the Mossman Mill.
Mossman Canegrowers chair Matt Watson said it was still unclear exactly what the appointment would mean for growers and harvest contractors who were currently in a race to harvest cane before the wet season arrives.
“We don’t know what that means, I hope it’s going to be a good thing,” he said.
“We have more meetings (on Tuesday) and Wednesday and hopefully they will let us know what it means in the couple of days.”
Speaking about the mill’s troubles last week, Far Northern Milling chief executive officer Bronwyn Dwyer said a reduction in the tonnage and CCS from the original 2023 season forecast would result in a drop of around 10,500T of sugar, placing the operation of the mill for the 2024 season in jeopardy.
“It is imperative that the mill is operational for the 2024 season as growers have forward priced sugar and planted and fertilised the crop for next season,” she said.
“The board of FNM is working with stakeholders to secure the funds required to operate the mill for the 2024 season.”
Douglas Shire Council Mayor Michael Kerr said the development was “extremely disappointing” for the community.
“Council is limited to provide assistance because it’s a private company,” he said.
“We funded their business case for the bioprecinct.
“It’s a difficult situation for them, especially at this time of the year.
“This will affect a lot of families, mill workers, cane farmers, every business on Front Street will be affected by this.”
A $45m federal and state injection into Mossman sugar mill five years ago was ineffective in staving off voluntary administration.
Amid much fanfare, Daintree Bio Precinct – with Far Northern Mill as a subsidiary – received $20m federal funding and $25m state funding to enable Mossman and Tablelands sugarcane growers to transform the mill into a bio-refinery.
The only tenant at Daintree Bio Precinct was CocoNutZ.
CocoNutZ, a patented agricultural bio-manufacturing platform which sought to diversify FNQ agriculture through producing a range of condiments, launched in August 2018 promoting it would create soy sauce from sugarcane.
CocoNutz, which had Far Northern Milling director Mary Salvetti among three directors, secured $1m in federal funding and a $250,000 state rural development grant.
But it has been deregistered with Grant Thornton appointed liquidators.
CocoNutZ claimed in a development application to Douglas Shire Council it would produce Kecap Manis, a sweet soy sauce commonly used in Asian dishes, with a food facility able to process 20,000 tonnes of cane a year.
Leichhardt MP Warren Entsch applauded the initiative at what was supposed to become an advanced manufacturing hub adjacent to the mill.
Speaking earlier on Monday, Douglas Chamber president Jeremy Blockey said if the mill went into administration, it would impact the entire shire.
“The question I have is should the industry be propped up indefinitely if it is not sustainable? It is a much bigger issue for the shire, beyond the canegrowers, although of course a lot of people have invested lots onto the land and into their crops,” Mr Blockey said.
“If it is dire as what I am picking up on, we need to cut to the chase and there needs to be a disaster relief package.
“What’s emerging for me is getting past the point of saving growers and much more a story of saving that part of the economy, both the growers and what they spend in the shire,” Mr Blockey said.
“There should be disaster support or a resilience package and the advocacy for that should be pushed hard by all players, the industry, chamber and council.
“We need to be anxious about the consequences of the prospective demise of the mill, we need to shift gear and do it quickly and provide support for the shire, and not simply the industry.”
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