End of Haulage Agreement Threatens Mossman’s Cane Industry’s Survival

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October 20, 2024

Sugarcane Industry Faces Crisis in Far North Queensland

Mossman, Queensland – Sugarcane growers in the Far North Queensland region are confronting a looming crisis, as the prospect of processing their crops has become increasingly uncertain. The situation stems from the closure of the Mossman Mill in early 2024, after 127 years of operation, and the subsequent, rising costs associated with transporting sugarcane to the Mulgrave Mill in Gordonvale, approximately 100 kilometers away.

A history of Hardship

For generations, families in the Douglas Shire have dedicated their livelihoods to sugarcane farming. However, a series of challenges over the past five to six years threatened the industry’s viability, culminating in the mill’s shutdown. Despite these hurdles, local growers persistently sought solutions and explored choice arrangements to keep the sector alive.

Dan Galligan, Chief Executive of Canegrowers, described the current circumstances as “heartbreaking.” He emphasized the dedication of these multi-generational farmers and the extensive efforts made to salvage the industry.

Economic Realities Take Hold

Recent assessments have determined that the escalating costs of hauling sugarcane are unsustainable. Milling giant MSF,responsible for processing the Mossman crop at the Mulgrave Mill,acknowledged the disappointing outcome but asserted that the financial realities simply do not align with continued operations.Over the last two years, more than 400,000 tonnes of sugarcane from Mossman were processed at the Mulgrave facility.

Mark Manganini, a representative from MSF, explained that most sugar factories operate efficiently within a 30-kilometer radius of their growers. He noted the “tyranny of distance” has made the situation economically challenging for both farmers and millers.

Factor	Details
Mossman Mill Closure	Early 2024, after 127 years of operation
Transport Distance to Mulgrave Mill	Approximately 100 kilometers
Sugarcane Processed at Mulgrave Mill	Over 400,000 tonnes in the last two years
Ideal Sugar Factory Radius	Approximately 30 kilometers

Government Funding and future Prospects

The Queensland state government initially committed over $12 million to support the industry’s transition following the Mossman Mill’s closure.Half of this funding was allocated to cover transportation costs over the past two seasons. Currently, $6 million remains available for a long-term solution.

Queensland Primary Industries Minister Tony Perrett affirmed the government’s continued support for Mossman canegrowers. He stated that the remaining funds will be used to explore enduring solutions in collaboration with growers,local councils,and the Mossman community.

Cook MP David Kempton, chair of the Mossman Advisory Council, is tasked with determining how to allocate these funds. One possibility is to explore diversifying agriculture beyond sugarcane. He highlighted that currently, the Douglas region only produces roughly half of the one million tonnes of cane needed to sustain the industry independently.

Did You Know? Sugarcane farming contributes significantly to the Queensland economy, supporting thousands of jobs and generating billions in revenue annually.

Pro Tip: For farmers facing similar challenges, exploring cooperative arrangements or seeking government assistance programs can provide crucial support.

While some growers may consider continuing to cultivate sugarcane next year, a viable processing solution remains essential. Mr. Kempton expressed hope for a shift towards alternative crops, acknowledging that the current situation has reached a natural conclusion.

The Broader Context of Australian Agriculture

The challenges faced by sugarcane growers in Far North Queensland reflect broader trends in Australian agriculture. Factors such as rising transportation costs, climate change impacts, and global market fluctuations are placing increasing pressure on farmers across the country. Diversification, technological innovation, and robust government support are crucial for ensuring the long-term sustainability of the sector.

Frequently Asked questions

• What is causing the sugarcane crisis in Mossman? The closure of the Mossman Mill and the high cost of transporting sugarcane to the Mulgrave Mill are the primary factors.
• How much funding has the government provided to address this issue? The Queensland government has committed over $12 million, with $6 million currently unspent.
• What are the potential solutions being considered? Options include finding a new processing facility, diversifying into other crops, and securing long-term government support.
• What impact will this have on local farmers? Growers face an uncertain future, with many potentially needing to transition to alternative agricultural ventures.
• Is this a problem isolated to Mossman? No,it reflects wider pressures facing Australian agriculture,including transportation costs and market fluctuations.

What steps do you think are most crucial for ensuring the future of agriculture in the Douglas Shire? Share your thoughts in the comments below!

what specific financial risks do cane growers face if a new haulage agreement isn’t secured?

The Looming Crisis in Mossman Sugar Production

The future of Mossman’s vital cane industry hangs in the balance as a critical haulage agreement nears its end, leaving growers facing potentially crippling logistical and financial challenges. This isn’t simply a local issue; it impacts Queensland’s sugar production, regional employment, and the broader Australian economy. The current agreement, facilitating the transport of sugarcane from farms to the Mossman Mill, is set to expire, and a replacement isn’t yet secured. This situation has sparked significant concern amongst cane farmers, mill operators, and local stakeholders.

Understanding the Haulage Agreement & Its Importance

For decades, the existing haulage agreement has provided a structured and cost-effective system for transporting harvested sugarcane. This system relies on a network of independent carriers and a defined framework for pricing and operational standards.

* Efficiency: The agreement streamlines the process, minimizing delays and ensuring timely delivery of cane to the mill.

* Cost Control: Negotiated rates within the agreement help manage transportation expenses,a significant portion of overall production costs.

* Infrastructure Maintenance: Funds generated through the agreement contribute to the upkeep of vital road infrastructure used for cane transport.

* Regional Employment: The haulage network supports numerous jobs, from truck drivers to maintenance personnel.

Without a renewed agreement, growers fear a chaotic and expensive free-for-all, potentially rendering many farms unprofitable. The term “cane transport logistics” is becoming increasingly prevalent in grower discussions.

The Potential Consequences of Agreement Failure

The ramifications of a failed haulage agreement are far-reaching.Here’s a breakdown of the key concerns:

1. Increased Transportation costs: Without a structured agreement,growers anticipate a surge in freight rates as carriers compete for limited capacity. This directly impacts farm profitability.
2. Infrastructure Deterioration: Reduced funding for road maintenance will led to deteriorating road conditions, increasing transport times and vehicle wear and tear. This impacts “sugar cane road infrastructure”.
3. Mill Efficiency Issues: Delays in cane delivery can disrupt mill operations, reducing processing efficiency and potentially impacting sugar quality.
4. Farm Closures: The combined impact of higher costs and logistical challenges could force smaller, family-owned farms to cease operations, leading to job losses and a decline in regional agricultural output.
5. Impact on Sugar Supply: A reduction in Mossman’s cane production will contribute to a decrease in Queensland’s overall sugar supply, potentially affecting both domestic and export markets.

Stakeholder Responses and negotiations

Negotiations are currently underway between cane growers,the Mossman Mill (owned by Sucrogen),and potential haulage providers. Key sticking points include:

* Freight Rates: Growers are pushing for competitive and lasting freight rates that reflect the current market conditions.

* Contract Length: Growers are seeking longer-term contracts to provide stability and encourage investment in infrastructure.

* Infrastructure Funding: Ensuring a dedicated funding stream for road maintenance is a critical priority.

* Carrier Accountability: Establishing clear standards for carrier performance and reliability is essential.

The canegrowers Mossman association is actively representing the interests of local growers in thes negotiations, emphasizing the need for a fair and equitable outcome. They are utilizing data on “sugar cane yield per hectare” to demonstrate the industry’s economic importance.

The Role of government Intervention

Many stakeholders believe government intervention is necessary to secure the future of the Mossman cane industry. Potential avenues for support include:

* Infrastructure Funding: Providing financial assistance for road upgrades and maintenance.

* Facilitating Negotiations: Acting as a mediator to help resolve disputes between stakeholders.

* Policy Review: Examining existing regulations to identify potential barriers to efficient cane transport.

* Financial Assistance Programs: Offering grants or loans to help growers manage increased transportation costs.

Case Study: Tully Sugar Mill Haulage Challenges (2018)

The situation in Mossman echoes challenges faced by the Tully Sugar Mill in 2018, when a similar haulage dispute led to significant disruptions and increased costs.The Tully experience highlighted the importance of proactive planning and collaborative negotiation to avoid a crisis. The Tully situation involved a protracted legal battle and ultimately resulted in a revised haulage agreement, but not before significant financial losses where incurred by growers. This serves as a cautionary tale for Mossman.

Benefits of a secure Haulage Agreement

A successfully negotiated haulage agreement will deliver numerous benefits:

* Sustainable Farm Income: Stable transportation costs will help ensure the long-term viability of cane farms.

* regional Economic Growth: A thriving cane industry will support jobs and investment in the Mossman region.

* Reliable Sugar Supply: Consistent cane delivery will maintain the Mossman Mill’s production capacity and ensure a reliable sugar supply.

* Improved Infrastructure: Dedicated funding for road maintenance will enhance the efficiency and safety of the transport network.

* Enhanced Industry Reputation: A collaborative and sustainable approach to cane transport will strengthen the reputation of the Mossman sugar industry.

Practical Tips for Cane Growers

While awaiting the outcome of negotiations, cane growers can take proactive steps to mitigate potential risks:

* **Cost Analysis