Growers put a million sugar shares on the market

'Value lies in their potential voting power'

Cane growers are concerned with the way they see the industry going. Picture: Tony Martin

EXCLUSIVE: Frustrated with the state of the sugar industry in Mackay, two Pioneer Valley cane growers are selling more than a million of their Mackay Sugar shares for just 10 cents a share.

Gary Parkinson is putting up 626,000 of his shares, while Colin Ash has added another 400,000 from his holdings, bringing their total offering to 1,026,000.

While the price is lower than it has been in the past - and lower than the 15 cents a share price put on 6,676,742 fully paid investment shares in Mackay Sugar Limited offered in October 2017 in conjunction with Mossman Mill, Mr Parkinson says the value lies in their potential voting power.

"Now, whether you grow 15,000 tonnes or 200,000 tonnes you only get one vote," he said. "I only need one share to vote. But in the future the constitution could change so voting power is linked to the number of shares someone holds."

The shares can only be sold to Mackay Sugar growers but if there are any takers Mr Parkinson stands to make $60,000. "I am seizing the opportunity to get something for my money," he said. "I'm losing $45,000 over my last four pays because of the levy turnaround."

Mr Parkinson is one of a group of growers who won the right to not pay a $2 a tonne MSL restructuring levy; however, the company last month sidestepped that ruling and is now deducting the levy from the growers' last four mill pays.

He is also trying to sell farms he owns in the Finch Hatton area, and says he's beyond caring whether that land is used to grow cane in the future.

Neighbouring farmers are also contemplating other options, including grazing. In one small pocket around his farms, Mr Parkinson estimates about 1000 acres is poised to go out of production.

"It's all changed," he said. "I have lost another son to the mines... they just need the money to survive. A lot of young farmers can't make ends meet. My son is a fourth generation cane farmer. We have been growing sugar for over 100 years. We're selling our home farm, where we all grew up. It's a shame but that's the way everything is going.

"You have to look after the mental state of your farmers. Older farmers don't know where to go. The mental frustration is terrible."

Mr Parkinson said many Mackay Sugar farmers shared his concerns, especially that while QSL was willing to market Grower Economic Interest sugar, there was no Grower Choice agreement in place with MSL for the 2018 season. Having that would secure mill pays after Christmas, he said, but it needed the support of other bargaining agents.

"There are no answers," Mr Ash said. "I don't see anything getting better in the short term. Long crushings and poor sugar recovery are costing farmers.

"Five million tonnes of cane should be gone in 22 weeks, not 26 weeks.

"If we could get our cane off in 22 weeks it would be a totally different outlook."

Mackay Sugar did not comment for this story.

Originally published as Growers put a million sugar shares on the market