Mossman sugar mill in jeopardy for 2024 season

Growers who supply sugar cane to Australia’s northernmost mill at Mossman are worried after receiving advice the mill’s future could not be assured.

The future of one of the few Australian-owned sugar mills is uncertain, with Far Northern Milling chief executive Bronwyn Dwyer confirming Mossman Mill was in jeopardy.

The mill has been operating since 1897 and was bought from Mackay Sugar, which intended to shut it down, by growers under the banner Far Northern Milling (FNM) in July 2019.

It received $45m state and federal funding to establish the Daintree Bio Precinct to find sustainable food and energy products from sugar cane to boost viability.

Ms Dwyer said a drop in the tonnage and commercial cane sugar (CCS) – a measure of sucrose – from the original 2023 season forecast would result in a drop of around 10,500 tonnes of sugar.

Far Northern Milling chairman Chairperson Rajinder Singh advised growers in a letter they should “strongly consider their farming and operation expenditure” and forward-pricing on the next crop.

“This has placed the operation of the mill for the 2024 season in jeopardy,” she said.

“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.

“The board is working with stakeholders to secure the funds required to operate the mill for the 2024 season.”

Ms Dywer said the mill had between 130 and 150 workers and supported about 500 indirect jobs.

It has about 85 growers, including Tablelands growers, with cane contracted.

Grower Drew Watson, whose family has supplied cane to the mill since it started, said although cane prices were fantastic, growers faced multiple challenges.

“We don’t really know what’s going on, they are saying there could be problem next year, don’t go pricing too much,” he said.

“Everyone talks about the cost of living going up but the cost of farming is going through the roof, we need pretty good prices.”

Mr Watson said the current price was a very buoyant $920 per tonne with forward pricing for 2024 at $830.

Mossman cane grower Drew Watson said sugar prices were exceptional but growers were hesitant to forward price with uncertainty over Mossman Mill’s future.

He said growers had endured a frustrating season with heavy rain early in harvesting dropping the CCS substantially.

“We’ve made a huge investment, people have done all their planting, everyone is at least half fertilised, if not more,” Mr Watson said.

“What else can you do with a cane farm when you don’t have a sugar mill?”

Mr Watson has 1900 acres under cane, with land leased as well as owned.

“Mossman is a lovely little town and grows good sugar cane, there’s great plans for Mossman, we’ve just got to get there,” he said.

Douglas Shire Mayor Michael Kerr said council had supported the mill with funding for the business case for the Daintree Bio Precinct.

Mossman sugar mill is the second biggest economic contributor to Douglas Shire after tourism.

“It is very concerning for the whole community and the shire, the board has worked extremely hard to continue to have a mill in Mossman, for it to come to end after the all the work that’s been done would be very disappointing,” Cr Kerr said.

“The mill has been the heart and soul of Mossman for many years.”

Last season an acute shortage of truck drivers led to fears about the mill’s long-term viability.

The Mossman mill was offloaded by Mackay Sugar when its other three mills were taken over by German-owned Nordzucker in 2019.

Nordzucker has 70 per cent of Mackay Sugar’s mills – the Farleigh, Marian and Racecourse mills at Mackay.

MSF Sugar, owned by Thai company Mitr Phol, has mills at Gordonvale, South Johnstone, and Mareeba.

Singapore-based Wilmar International owns the mill at Ingham.

The Tully mill is owned by Chinese company COFCO.

Originally published as Mossman sugar mill in jeopardy for 2024 season