Cane growers – Mid East conflict biting hard

With fertiliser supply also increasingly uncertain, growers warn that even if this year’s crush is completed, they may not have what they need to grow next year’s crop.

A new supply chain impact report, compiled by CANEGROWERS with help from organisations and farmers from across the industry shows concern is universal, with uncertainty around fuel and fertiliser already shaping decisions on farm.

CANEGROWERS has surveyed growers from across Queensland and worked with NSW Cane Growers and sugar manufacturers to get a national picture.

The results show up to 98 per cent of growers are concerned about a shortage of supply and the rising fuel and fertiliser prices. These critical inputs are already putting the cost of production above the global sugar price that growers and manufacturers are exposed to.

Fuel is the most immediate pressure point, with almost a quarter of growers unable to purchase the volume of fuel they required.

Almost 90 per cent of growers said they are already changing or reconsidering their farm plans due to uncertainty around fuel and fertiliser availability and cost.

CANEGROWERS CEO Dan Galligan said the findings confirmed global pressures were now flowing directly into Australian agriculture.

“This is not a theoretical risk – it is already changing how growers make decisions on farm,” Mr Galligan said, and that shows how astute their risk management practices are, and how fair ahead farmers need to plan.

“This is about income at risk this season and production at risk next season.

“When production drops, the impact doesn’t stop at the farm gate – it flows through to harvesting contractors, transport operators, sugar manufacturers and local businesses right across regional Queensland and Northern NSW.

“At a broader level, reduced production means less export income and more pressure flowing through the economy at a time when Australia can least afford it.”

Mr Galligan said CANEGROWERS was working across government and industry to protect growers from the worst of the disruption.

“Our job is to make sure growers are not left at the back of the queue when supply tightens,” he said.

“We’re working directly with State and Federal governments to ensure agriculture is prioritised in fuel supply decisions, provide real-time data on shortages, and coordinate an industry-wide response so there are no gaps in how the sector responds.”

CANEGROWERS is engaging with the Queensland Government through its Emergency Management Response Group, contributing to national discussions via the National Farmers’ Federation, and participating in ongoing briefings on fuel supply.

The organisation has also brought together key parts of the sugar industry to assess supply chain impacts and coordinate a response across growers, manufacturers, sugar marketers and sugar terminal owners and operators.

Mr Galligan said the situation has made many cane growers furious as it so obviously highlighted the need for longer-term action to reduce Australia’s exposure to global fuel and fertiliser shocks.

“Australia is not short of fuel options, but we are not using them effectively,” he said.

“We have domestic capacity – particularly in ethanol – sitting underutilised, and without clear policy settings that will not change.

“A properly enforced national E10 mandate would help drive investment, increase domestic production and reduce our reliance on imported fuel and a strategy driver for diversification into biodiesel and rebuilding domestic fertiliser production is clearly needed.”

“If we want to avoid being in this position again, fuel and fertiliser security need to be treated as a national priority, not an afterthought, issues we have known but seen ignored for decades, now we are paying the price.”