Mossman Mill voluntary administration: Creditors to meet amid uncertain future of factory

A breakdown on how $22m in state funding was spent by the beleaguered Mossman Mill has been revealed amid concern for Douglas Shire if the lifeblood of the region does not operate next year.

Mossman sugar mill in far north Queensland entered voluntary administration on November 20. Picture: Far Northern Milling

A breakdown on how $22m in state funding was spent by the beleaguered Mossman Mill has been revealed amid concern for Douglas Shire if the lifeblood of the region does not operate next year.

Daintree Bio Precinct, of which Far North Milling is a subsidiary, entered voluntary administration on November 20 after logging an operating loss before government funding of more than $5m for the year to May 31, 2023.

Accounting for income tax and government funding, the mill posted a loss of $286,974 in 2023 and a profit of $907,508 in 2022.

The 2023 sugar cane crush wrapped up at Mossman Mill last week. Picture: Far North Milling

Far Northern Milling has received $22m in state government funding since the grower co-operative took control of the mill from Mackay Sugar in 2019.

The Department of Agriculture and Fisheries revealed cash was used to support the aspiration of the mill to become a bio-precinct and development of a business case that centred on diversification options.

Money was also invested in construction of a failed pilot plant by CocoNutZ Australia to produce kecap manis from cane sugar rather than coconut sugar, as well as mill operating and maintenance costs.

“Far Northern Milling and related entities met all their reporting obligations under the support package throughout the term of the agreement and have always co-operated fully with the Queensland Government in providing any requested information,” a Department of Agriculture spokesman said.

Mossman sugar mill, built in 1896, crushes 500,000 tonnes of sugar cane annually. A cooperative of 110 local cane growers bought the mill in 2019. Picture: Brendan Radke

“DAF is currently undertaking some trials of potential rotation or alternative crops and has contracted a review of the potential for environmental markets to provide additional or alternative income for growers.”

With the future of Mossman’s main employer under a dark cloud, Douglas Shire Mayor Michael Kerr said the absolute worst case scenario would be if the mill didn’t fire up next year.

“Every shop on Front St will be affected by the closing of the mill,” he said.

“The roll-on effects of a sudden closure without any diversification in place will be catastrophic.

The final bin to be crushed at the at Mossman Mill last week. Picture: Far North Milling

“And for the community as well, it’s going to cost a hell of a lot more to rebuild Mossman if it suddenly closes tomorrow.”

Following the end of the 2023 crush last week Mossman Canegrowers manager Evelyn Matthews said all growers had been paid for cane supplied to the mill in 2023 by third party sugar marketer Queensland Sugar Limited.

She acknowledged the impact to the whole district if the mill’s financial problems could not be resolved but was optimistic of a positive outcome.

“If everyone gets on the same page we are more than capable of getting through this but it requires everyone to remain committed and to do their bit,” she said.

A meeting of Far North Milling creditors will be held on November 30 and a grower’s meeting will convene the next day on December 1.

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Originally published as Mossman Mill voluntary administration: Creditors to meet amid uncertain future of factory