Glossary

Glossary

Glossary of industry terms

Advances Interim payments made to mill owners before the declaration of a season’s final price.

Ash Inorganic matter in sugar, residue left after bagasse is burnt.

Assignment A term previously used to describe the right to grow sugarcane for supply to a particular sugar mill; later called Cane Production Area (CPA), which was abolished in 2005.

Bagasse Crushed fibre remaining after milling of sugarcane. Main fuel source used to generate steam for mill operation in Australia.

Billets Common name for chopped lengths of cane (approx. 300 mm) produced by mechanical cane harvesters.

Brand 1 The product specification for the principal Queensland export brand of raw sugar.

Brix A unit that expresses the concentration of solids in aqueous solutions e.g., a 60 degrees brix sugar solution has the same density as a solution that is 60% by weight sugar. Used in cane analysis as a substitute for ‘all soluble material’.

BST Bulk sugar terminal.

Cane Sugarcane

Cane payment formula A formula based on price of sugar, CCS, and sugar recovery. Used by Queensland sugar industry to allocate net income from sugar sales between growers and millers. Contains incentives for growers to improve cane CCS and for millers to improve rate of recovery of sugar.

Cane Production Area (CPA) Previously called Assignment, CPAs were abolished in 2005. They entitled a grower to enter into a Cane Supply and Processing Agreement with a mill owner to supply sugarcane grown on a particular area of land with a particular land description. CPA was separate to land and could be sold, leased or transferred as if property. Allocation of CPAs established a framework for orderly industry production, supply and milling of cane.

Cane Production Area Register Each Cane Production Board was required to keep a register of each CPA for a particular mill. Abolished 2005.

Cane Production Board (CPB) Abolished 2005. Similar to former Local Board but also had a role in ensuring sustainable production of sugarcane. Comprised 2 grower members (nominated by MSC), 2 miller representatives, and an independent chairman. CPBs were responsible for granting, transferring, canceling or varying cane production areas; implementing decisions of the negotiation team about area expansion; administering processes related to movement of cane supply between mills; making guidelines about land use, environmental and transport management applicable to new applications for grants of CPA; making guidelines about anything relevant to cane growing.

Cane Protection & Productivity Boards Formerly called Cane Pest & Disease Control Boards, their role was to improve quantity and quality of cane crops in a particulalr area.

Cane Supply & Processing Agreement Formerly called a Local Award, replaced in 2005 by grower contracts; covered seasonal cane supply and payment arrangements. Each grower with a CPA was required to have a supply agreement with a mill owner for each season, either collective or individual. A collective agreement, made by a negotiating team, was legally binding and enforceable on the mill owner and each grower taken to have entered into the agreement.

Cane sugar (sucrose) A carbohydrate comprising glucose and fructose linked together. Sucrose can also be obtained from sugar beet and is present in fruits.

CCS (Commercial Cane Sugar) An estimate, by empirical (based on the results of experiment, observation or experience, not from mathematical or scientific reasoning) formula, of pure sugar recoverable from cane, expressed as a percentage.

CIF (cost, insurance, freight) When sugar is sold on a cif basis, the seller is responsible for arranging and paying for cargo loading, shipping and insurance to the port of discharge. Queensland raw sugar exports are sold on a cif basis. Sales on c & f basis differ only in that the buyer pays for the insurance.

Clarification Process of separating insoluble suspended matter and some soluble substances from cane juice to produce a clear juice. This is achieved by adding lime and flocculants, then heating and allowing suspended matter to settle in vessels known as clarifiers.

Coefficient of work Also called Pool Sugar Index, one measure of the efficiency of operation of a sugar mill. It represents recovery of raw sugar (expressed as tonnes IPS) per 100 tonnes CCS in cane, i.e. output/input.

Crystallisation Process of ‘growing’ crystals by boiling them with syrup in a vessel under vacuum. Crystallisation is induced by admitting a slurry of ground-up refined sugar, or slurry of small raw crystals into a vessel at a critical stage of boiling. Crystals are then grown to desired size.

Cyclamate High intensity sweetener 30 times sweeter than sugar. Usually blended, rather than used on its own. Prior to 1970 ban on its use in the USA, diet soft drinks used a 50/50 blend with saccharin. Some countries have since allowed its use but others have imposed stricter end-use restrictions or bans.

Easement A right previously given by a landholder or granted by the Sugar Industry Commissioner to a mill or grower to use part of the owner’s land. Railway easements could only be granted to mill owners.

Ethanol Alcohol made from fermented molasses (or other sources) for use as a fuel, as a potable spirit or in manufactured products.

Fibre Cane plant’s vegetable skeleton in which juice is stored and through which plant food, dissolved in solid water, is distributed throughout the plant. Milling ruptures the fibre cells, freeing the juice. Fibre content varies according to variety but normal range is 11%-16%.

Filter mud  When insoluble matter is extracted from cane juice during clarification it forms a mud comprising water and solids (mainly soil, fibre, calcium phosphate, denatured protein and a small amount of sugar). After removal from the clarifiers the mud is filtered and washed to recover remaining sugar. Filter mud is used by farmners to improve their soil.

Final price The price for IPS sugar declared each season by Queensland Sugar after taking account of net proceeds from sales or proposed sales of the relevant season’s sugar, maintenance of reserve accounts necessary to fund its operation, all costs of sale of the sugar, and administrative costs of carrying out its functions. Final price is declared at end of June or early July and the balance of unpaid money paid to mills and growers.

FOBS (free on board and stowed) The buyer arranges shipping and pays freight and insurance, and takes responsibility for the sugar immediately it is loaded on board the ship. The seller is required to pay loading costs and stowage at loading port.

Fructose A sugar that occurs in fruit, the nectar of flowers, honey and in cane juice and sugar products. Found in equal quantity with glucose when sucrose is inverted.

Futures price Price of a particular futures contract. Futures contracts are agreements to buy or sell a fixed amount of a commodity at a fixed price at a fixed date in the future. For a futures contract to exist, one party has to agree to buy and take delivery while the other party has to agree to sell and supply the commodity. This obligation may be discharged by a reverse paper transaction (with some other person in the market), and the futures market may be used for hedging or for speculative purposes. On sugar markets, futures prices are usually quoted up to 18 months ahead.

GCTB (Green Cane Trash Blanketing) Process of spreading cane leaves and tops on the ground after harvesting a cane crop green (without burning). Trash blanketing helps reduce soil erosion, retains soil moisture, minimises weed growth and improves soil structure.

Global Sugar Alliance  Australia, frustrated at lack of progress by the ITO in freeing-up world trade in sugar, initiated a Global Alliance for Sugar Trade Reform and Liberalisation with Brazil, Canada, Colombia, Costa Rica, El Salvador, Guatemala, Honduras, India, Nicaragua, Panama and Thailand in Seattle in November 1999. The Alliance seeks to encourage open discussion about the benefits of sugar trade liberalization for efficient producers.

Glucose A sugar occurring naturally in grapes, honey, sweet fruits, and in cane juice and sugar products; it can also be made from wheat. In the human body, sucrose is converted into glucose and fructose before being used to provide energy. Formed in equal quantity with fructose when sucrose is inverted. In solution, it rotates polarised light to the right. Has the chemical composition C6H12O6 and may also be called dextrose.

HFCS (High Fructose Corn Syrup) Common name for starch-based fructose/glucose syrups. Corn is the starch base of these syrups although other less widely used starch sources include rice, wheat and tapioca. In Europe HFCS is referred to as isoglucose. HFCS competes directly with sugar particularly in USA, Canada, Japan and Korea. Used mainly in industrial applications, particularly in beverages.

Invert A liquid sugar product produced at a mill. Contains mixture of glucose and fructose obtained by a process of inversion.

IPS (International Pol Scale) A price adjustment scale described in the rules of the Sugar Association of London. It defines incremental price premiums and penalties applied to sugar above 96 degrees polarisation.

Juice Cane juice comprises water with sugar and other dissolved substances, and some insoluble particles in suspension.

Liquor Juice that has had water boiled off it so that it is ready to produce sugar crystals.

Local Board Later called Cane Production Board

Local Award Later called Cane Supply & Processing Agreement.

Massecuite Mixture of crystals and molasses produced by crystallisation in a vacuum pan. The term is French for ‘cooked mass’.

Mechanical harvesting Machines have harvested all sugarcane in Australia since 1979. Cane was cut mechanically as early as 1889 but hand cutters prevailed until 1960s. Between 1961 and 1970 the proportion of the crop cut by machines rose from 5% to 92% and by 1973 virtually all was cut mechanically.

Mill peak A term once used to describe the amount of sugar manufactured from cane harvested from assigned lands for which there was an entitlement to pay No 1 Pool price. The peak for each mill was gazetted each year or adjusted when required.

Mill Suppliers’ Committee A body that was established under Queensland legislation to represent the cane growers in a particular mill area. Also described as a CANEGROWERS Area Committee.

Metric abbreviations Some commonly used industry terms include:

• Mt - million tonnes
• mt - metric ton
• mtrv - metric tons raw value
• mttq - metric tons tel quel
• mtwv -  metric tons white value
• tonne - 1000 kg or 2204.6 lb

Net titre (nt) A measure of the commercial value of raw sugar for refining purposes used for statistical and payment purposes in the Australian industry prior to adoption of IPS.

NY #11 (New York No.11 raw sugar futures contract) This contract, traded on the New York Board of Trade, which incorporates the Coffee, Sugar and Cocoa Exchange, is a deliverable futures contract with deliveries accepted from 29 sugar producing countries throughout the world. The contract is recognized as a benchmark for US CIF (cost, insurance & freight) domestic raw sugar prices. The price of sugar in the next NY #11 contract period is a reasonable estimate of the current world price of sugar.

Pest Boards Former name for Cane Protection & Productivity Boards.

Plant cane Cane which grows from setts (pieces of cane stalk planted in the ground).

Polarisation (pol) A measure of the sucrose content of sugar. Broadly, sugar with 98 pol (sometimes expressed as 98 degrees pol) would contain about 98% sucrose.

Pools Until 1996, production of sugar in Queensland was divided into two payment categories. The No 1 Pool price was fixed at a higher rate than No 2 Pool. No 1 Pool comprised raw sugar produced by mills within peak i.e. the total of mill peaks less any shortfalls by individual mills in a particular season. No. 2 Pool comprised sugar, produced from cane grown on land for which an assignment had been granted, in excess of No 1 Pool. Queensland now has only one pool for payment purposes.

Ratoon Cane that grows from buds remaining in the stubble left in the ground after a crop has been harvested. One plant usually grows three to four ratoon crops.  (See also Sett and Stool.)

Raw sugar The sugar crystals separated from massecuite in a centrifugal in a raw sugar mill. Sucrose content is varied to satisfy the requirements of customers. It is mainly in the range 97% to 99.5% sugar.

Raw Sugar Industry A term used to describe the Australian sugar industry excluding the refining sector. In formal submissions to government the term usually refers to ASMC, canegrowers and Queensland Sugar Ltd.

Raw value A term used internationally to express raw and refined sugars on a common basis (96 pol equivalent). International sugar statistics are expressed as metric tons raw value (mtrv).

Refined sugar Refined sugar is made up of 99.93% sucrose, 0.01% reducing sugars, 0.01% other organic matter, 0.01% ash, and 0.04% water.

Saccharimeter, polarimeter Sugar analysis instruments which measure rotation of polarised light when passed through a sugar solution. The degree of rotation is a measure of the sugar in solution.

Season For statistical and accounting purposes the Australian season extends from 1 July to 30 June. The crushing season usually begins in early June and ends in December, typically running for 20 to 22 weeks.

Sett Piece of cane stalk that contains roots and buds. When roots develop, they anchor the sett and provide food for the germination of the buds from which the cane stalk grows. In this way the stool is created and new roots developed. (See Ratoon and Stool).

SIIB Cooperative Research Centre for Sugar Industry Innovation through Biotechnology, an alliance of Australian sugarcane biotechnology research organizations including four universities, sugar industry research groups, the Australian and Queensland Governments and commercial bodies, which aims to add value to Australian sugarcane.

Stale cane Cane which has deteriorated after being left uncrushed for lengthy period after burning and/or harvesting. Most cane in Australia is crushed within 16 hours of cutting.

Stool Cluster of cane stalks arising from germination of sugar cane setts, or the regrowth which comes from the buds remaining in the stubble after fully grown stalks are harvested. (See Sett and Ratoon).

Sucrose (common sugar) (See Cane Sugar).

Trash blanket Layer of cane leaves, tops and other organic matter left on the ground after green cane harvesting. Helps reduce soil eorsion, retains soil moisture, improves soil structure and limits weed growth.

WABCG World Association of Beet & Cane Growers

Chronology

• 1788    First Fleet brings sugarcane to Australia.
• 1821    Unsuccessful attempts begin to grow sugarcane commercially at Port Macquarie, NSW.
• 1828    Cane plants grown in Brisbane Botanical Gardens.
• 1842    First sugar refinery built in Sydney to refine imported sugar.
• 1862    Capt. Louis Hope and John Buhot establish sugarcane plantation at Ormiston near Brisbane and makes first granulated sugar from cane.
• 1864    Hope operates Australia’s first commercial sugar mill. The following year he introduces island labourers (Kanakas) to his Ormiston Plantation.
• 1870    Colonial Sugar Refining Company (now CSR Ltd) introduces system of large central sugar mills, supplied with cane by independent farmers, in northern New South Wales.
• 1885    Many small sugar mills close due to depressed state of sugar industry.
• 1888    First cooperative central mill opens in Queensland; first mechanical cane harvester patented in Brisbane.
• 1890    World’s first mechanical cane harvester built in Bundaberg.
• 1895    700 tonnes of Australian raw sugar exported to Canada.
• 1901    Protective import duties placed on sugar; Federal Government bans arrivals of Kanakas after 1904 and requires deportation by end of 1906, ending 40 years of indentured labour in the cane fields.
• 1906    Federal legislation exempts some islanders from deportation; Australian Sugar Producers Association formed in Townsville.
• 1914    United Cane Growers Association formed in Mackay.
• 1915    Queensland Government passes Sugar Acquisition Act and Regulation of Sugar Cane Prices Act; first sugar agreement negotiated between Commonwealth and Queensland Governments; embargo placed on sugar imports.
• 1923    Federal Government gives control of Queensland sugar industry to the State Government; the Sugar Board established under Sugar Acquisition Act; first small exports of raw sugar to UK and New Zealand.
• 1924    First large shipments of raw sugar from Australia - 74 000 tons.
• 1925    Queensland legislation establishes basis for CANEGROWERS organisation.
• 1926    New Act establishes farmer bodies on a commodity basis, a format which lasts for 75 years.
• 1929    Mill Peak scheme introduced.
• 1937    First International Sugar Agreement (ISA) negotiated but does not begin due to World War II.
• 1951    Commonwealth Sugar Agreement signed with UK.
• 1953    First post-war ISA negotiated, with quotas for exporters.
• 1954    Bulk handling of raw sugar introduced; first exports to Japan.
• 1960    Mt Bauple Mill closes.
• 1961    First sugar exported to USA
• 1962    Australia exports 1 Mt for the first time; first exports to Korea
• 1963    Queensland Government committee recommends industry expansion.
• 1967    First sugar exported to Singapore
• 1968    Australia exports 2 Mt of sugar.
• 1969    ISA begins operation for 5-year term.
• 1972    First long-term contract negotiated; first exports to China and Russia.
• 1974    Commonwealth Sugar Agreement and US Sugar Act terminated; record high world free market price of US 66 c/lb.
• 1975    Gin Gin Mill closes.
• 1978    New ISA begins operation; Industries Assistance Commission inquiry into sugar industry.
• 1982    Ceremony at Mackay marks 25 years of bulk handling.
• 1983    Second IAC enquiry into sugar industry.
• 1984    ISA expires.
• 1985    Record low world price of US 2.5 c/lb.
• 1986    Queensland, New South Wales and Federal Governments agree on 3-year sugar industry assistance/restructure package; Qunaba Mill closes.
• 1987    Goondi Mill closes, Mackay Sugar Co-operative formed; NSW Sugar Milling Cooperative formed to buy CSR’s three NSW mills.
• 1988    North Eton Mill closes.
• 1989    Commonwealth Government Sugar Agreement lapses 1 July 1989; embargo on sugar imports lifted and tariff put in place; Senate Standing Committee enquires into tariff levels on future imports; Harwood refinery built.
• 1990    Cattle Creek Mill closes; grower numbers fall to lowest level since pioneering days; Queensland State Sugar Industry Working Party makes recommendations; Sugar Research and Development Corporation formed to coordinate research.
• 1991    Glanville refinery closes; import tariff reduced from $115 to $76 per tonne; Industry Commission inquiry into Queensland’s production, institutional and regulatory arrangements; Queensland Sugar Corporation replaces the Sugar Board and Central Sugar Cane Prices Board; Sugar Acquisition Act and Regulation of Sugarcane Prices Act repealed; canegrowers adopted as common name for growers’ organisation; first Australian Sugar Convention; Tate & Lyle acquires Bundaberg Sugar; AWU and Queensland cane sector negotiate Australia’s first collective enterprise bargaining arrangements for an entire industry.
• 1992    Hambledon Mill closes; Mackay Sugar announces new refinery; Industry Commission final report released; Sugar Industry Taskforce established.
• 1993    Sugar Industry Taskforce reports; joint Commonwealth/State Sugar Industry Package includes deferral of further tariff cuts until at least 1977, a $40m government infrastructure commitment, retention of acquisition and assignments, and phased reduction of pooling premium; raw sugar production exceeds 4 Mt for first time; Tate & Lyle’s bid for Tully and South Johnstone Mills rejected; Trade Practices Commission blocks amalgamation of refining activities of CSR Ltd and Mackay Refined Sugars; Sugar Industry Act revised; availability of additional cane assignment exceeds demand for the first time.
• 1994    Queensland becomes world’s No 1 raw sugar exporter; $117m Sugar Industry Infrastructure Package begins; first change in cane price formula in 40 years; BSES plants world’s first genetically engineered sugarcane; Mackay refinery commences; CSR announces plan for mill in Ord River area; record prices for cane land in Burdekin Irrigation Area with 100th farm sold at auction; record No 1 Pool price of $392.42 per tonne 94 nt.
• 1995    ASMC and canegrowers develop Vision 2000 to guide industry development; review begins of Sugar Industry Act and import tariff in the context of National Competition Policy; world’s largest shipment of raw sugar (61 300 t) shipped from Townsville to Dubai; canegrowers commissions independent environmental audit of Queensland industry; Cooperative Research Centre into Sustainable Sugar Production commences; sugar surpasses beef production as Queensland’s largest rural industry; sugar revenue exceeds $2 billion for first time.
• 1996    Shipments through bulk terminals exceed 100 million tonnes; highest grower numbers since 1980s; all cane in Australia insured under canegrowers Crop Fire Insurance Scheme for first time; Sugar Industry Review Working Party recommends removal of tariff from 1 July 1997.
• 1997    Sugar tariff ends; record Queensland cane production for 6th consecutive year and record sugar production of 5.4 Mt; over 60% of Queensland crop harvested green; Sugar Industry Review Working Party makes recommendations.
• 1998    CANEGROWERS holds first Sugar Environment Forum in Mackay; Code of Practice for Sustainable Cane Growing adopted; CSR and Mackay Refined Sugars establish joint refining venture; negotiations begin for transfer of ownership of bulk terminals to industry; sugarcane smut discovered in Ord, Tableland Mill begins crushing; Sugar Terminals Ltd established (begins full commercial operations August 2000).
• 1999    World prices collapse and growers seek Exceptional Circumstances funding.  New Sugar Industry Act (effective 1 Jan.2000) revises framework for management of Queensland industry including individual and collective agreements, Cane Production Area and Cane Production Boards but compulsory acquisition and Single Desk arrangements unchanged. Primary Producers’ Organisation and Marketing Act 1927 replaced by Primary Industry Bodies Reform Act resulting in CANEGROWERS losing its compulsory levy capacity.
• 2000    Commonwealth Sugar Assistance Package provides short-term assistance for cane growers (eventually $60m paid in income support, interest subsidies on planting and general interest subsidy); Queensland Cane Growers Organisation Ltd formed and 96% of growers sign up; Australia initiates Global Alliance for Sugar Trade Reform and Liberalisation; orange rust forces industry to begin replacing its main cane variety; BSES celebrates its centenary; closure of Moreton Mill.
• 2001    Federal Government extends income support; title to bulk sugar terminals transferred to the industry; growers move towards full voluntary membership; revival in ethanol interest.
• 2002    Federal Government commissions an independent assessment of the sugar industry (the Hildebrand enquiry); CANEGROWERS and ASMC make joint proposal; the Federal and Queensland Governments, under a Memorandum of Understanding, agree to fund $150m Sugar Industry Reform Program over four years while industry undertakes reform.
• 2003    CRC for Sugar Innovation through Biotechnology established; continuing dry weather and low prices force growers to seek further emergency financial assistance; State Government commissions CIE to undertake impact assessment analysis of legislative change; CANEGROWERS commissions separate report by Boston Consulting Group; growers hold public rallies.
• 2004    Joint CANEGROWERS/ASMC submission on structural adjustment presented to Federal Government; the two peak bodies also commit to a Heads of Agreement with the Queensland Government and a Statement of Intent to the Federal Government; Prime Minister announces revised $444.4 million Sugar Industry Reform Program.
• 2005    Closure of Fairymead Mill.