What’s Happening?
Queensland’s cane crushing season is underway after a difficult year for growers across the state’s coastal regions.
Rain has delayed operations in parts of North Queensland, while conditions remain promising in the Burdekin and Proserpine districts. However, farmers are beginning the season under pressure from falling sugar prices, higher operating costs and recent floods.
The industry is also dealing with disruptions at Mackay Sugar and changes to paraquat labels following a ruling by the Australian Pesticides and Veterinary Medicines Authority.
Why It Matters?
AgForce Cane Board President Chris Punzell said several pressures were affecting producers at the same time. Flood damage earlier in the year has been followed by higher fuel, fertiliser and general operating costs.
“The ruling comes on top of the floods earlier in the year and an increase in the cost of fuel and fertiliser and operating costs in general over the past few months,” Punzell said. “At the same time, the price of sugar has slumped, with some producers struggling to meet the cost of production.”
These conditions have made it harder for farmers to rebuild momentum and maintain viable operations. Punzell warned that some growers could leave the industry if the pressure continues.
“There is a great deal of pressure on primary producers who are simply fighting to regain momentum. There is a real fear that some people will leave the industry,” he said. “While we don’t want to be always asking for help, authorities need to recognise the importance of primary production.”
The effects could extend beyond farms to contractors, mill workers and regional businesses that rely on the annual cane harvest.
Local Impact
The Mackay cane industry is still recovering from a cyber attack on Mackay Sugar, which shut three mills for one week.
Punzell said the disruption had affected mill operations, grower payments and the return of harvest information to producers.
“In Mackay, the industry is still reeling from the impact of a cyber attack on Mackay Sugar, which shut down three sugar mills for a week and continues to slow the recovery process,” he said. “That has had a flow-on effect for mill operations and business in terms of cane payments to growers and contractors, and a delay in harvest data coming back to producers.”
These delays have added uncertainty during a critical period for growers and contractors. Timely payments and harvest data help producers manage cash flow, farm work and harvesting schedules.
Conditions are more positive in other parts of the state. Punzell said some rain had held up operations in North Queensland, but the outlook remained good in the Burdekin and Proserpine.
By the Numbers
- Three Mackay Sugar mills were shut for one week after the cyber attack disrupted crushing operations.
- Three major cost areas have risen for growers, including fuel, fertiliser and general farm operating expenses.
- Small pilot plants have been proposed at coastal mills to produce biofuels and other products from sugarcane.
Zoom In
The APVMA ruling on paraquat labels has created another concern for cane producers. The decision removes its use in sugarcane from the approved label.
AgForce received another briefing during this week about the ruling’s impact on the industry. Punzell said growers respected the regulator’s decision but needed a practical and affordable replacement plan.
“It’s a blow for cane producers to have its use in sugarcane removed from the label, especially without the availability of an alternative herbicide that is just as cost-effective,” he said. “We don’t oppose change and we respect the regulator’s ruling, but it would help to have an effective implementation plan for other options before such a decision is announced.”
Punzell said an agreement allowing some continued paraquat use would provide significant help to farmers during the transition.
Without a similarly priced alternative, growers may face another increase in weed control and production costs.
Zoom Out
Queensland’s cane industry supports farms, contractors, mills and businesses across many coastal communities.
The current pressure is being driven by several issues, including floods, cyber disruption, regulatory changes, low sugar prices and higher operating expenses.
AgForce believes industry diversification could reduce reliance on traditional sugar markets and create other income sources for growers and mills.
Producing biofuels and other cane-based products could also support jobs and business activity in regional communities.
What To Look For Next?
AgForce will continue raising the industry’s concerns with government while pushing for practical paraquat arrangements and greater diversification.
“At AgForce, we’ll keep pushing for diversification in the industry to help cane farmers tackle some of these issues,” Punzell said. “One possible solution would be small pilot plants built at mills up and down the coast to produce biofuels or other products from cane.”
He said the proposal could strengthen regional economies while creating new employment opportunities.
“That would be a way to support local economies and create jobs. As always, we’re working hard to keep the issues affecting the industry front of mind for government,” Punzell said.
