MEDIA RELEASE

12 September 2011: 2010’s soggy legacy causing issues for cane growers as harvest reaches half-way

The impact of last year’s extraordinary wet season is only now truly being felt across Australia’s sugarcane regions, as the 2011 crush reaches the half-way point and Australia’s production has again been revised downwards.

Peak group CANEGROWERS says total production estimates have steadily declined throughout the season, and indicated that production may come in below 30 million tonnes – well below the usual 32-35 million tonnes of cane usually harvested in Australia each year.

CANEGROWERS CEO Steve Greenwood said that although the weather this season has so far been favourable, growers are still very much suffering from 2010's big wet.

"A large whack of cane was unable to be crushed last season due to the wet conditions and was left in the fields as standover. This is causing major issues with harvesting and tonnages," he said.

He says Cyclone Yasi's impact is only now being truly measured. Debris strewn in paddocks is still a major problem for many growers in cyclone-hit regions, and cane that was broken and battered during the cyclone has, in a lot of cases, not reached full growth – further reducing cane supply.

Greenwood said this year’s overall tonnage is estimated to be 3-6 million tonnes less than usual. “Milling operations across Queensland and New South Wales are being faced with cane supply shortfalls causing mill stoppages and lost hours. However, CCS (commercial cane sugar) has been rising as the harvest moves into plant cane and the amount of standover declines. CCS is now around average for this time of year."

“However, there is a light at the end of the tunnel with most regions reporting favourable weather conditions, which have allowed planting activities to be undertaken in earnest," he said. “The 2012 crop (weather notwithstanding) is looking positive."

CANEGROWERS says continuing, intense interest from foreign investors indicates they see the future for the local sugar industry as bright. Recent weeks have seen numerous suitors line up in the race to purchase Proserpine Mill. “These foreign interests are not perturbed by recent seasonal performance and vagaries of the weather – they are looking at Australia’s sugar industry, and seeing a future worth backing," he said.

The world market price for sugar, onto which over 80% of Australian sugar is sold as raw, has remained healthy over the past twelve months, although returns have been dulled by the strong Australian dollar.

Media comment:         Steve Greenwood |  CANEGROWERS CEO|  0488 721 156
More information:      Jasmine Hunt  |  Communications  |  0418 871 881 or 07 3864 6444