ASA Media Release
Australian Sugar Industry Alliance

21 December 2011: Research reforms start delivering for sugar industry

This week, sugarcane growers will receive a letter from BSES Limited on the changed service fee arrangements for 2012. The service fee is collected by BSES from growers and millers to fund a range of activities including plant breeding and variety development.

For sugarcane growers the 2012 BSES Service Fee of 30 cents per tonne is 10 cents per tonne less than the special fee paid in 2011 while research, development and extension was being reviewed with the aim of growers and millers agreeing and equally funding reformed structures.

Importantly, growers and mills will now make equal contributions totalling 60 cents per tonne (30c/t each) for operations of BSES Limited and the miller research company SRL. Growers and millers will continue to pay the 14 cents/tonne (7c/t each) for the Sugar Research and Development Corporation (SRDC). This will bring the total 2012 contribution to 37cents per tonne each.

The BSES Service Fee arrangements are one part of the broader reform package, endorsed by CANEGROWERS and the Australian Sugar Milling Council through the Australian Sugar Industry Alliance in October 2011. Under these changes, in 2012, BSES Limited will receive 55c/t funding directly from industry plus income through SRDC and from other sources.

BSES is progressing the industry supported restructuring with cost reductions. It should be out of its current loss situation and have a balanced budget by 2013 in advance of the target timing for formation of the single industry owned company, Sugar Research Australia. 


Media Comment:   Steve Greenwood, CANEGROWERS CEO, 0488 721 156.
                                   Dominic Nolan ASMC CEO, 0419 287 734

More information:  Suzi Moore CANEGROWERS Communications, 0427 641 239