Public Stoush Needs To End With Calm Discussions

By Kevin Borg, Chairman, CANEGROWERS Mackay

There has been much conjecture surrounding Queensland sugar mills underperforming and costing the industry dearly.

It would take a person gamer than myself to argue that the milling sector is performing to standards equivalent to the past. We have seen a sharp decline in milling investment both in capital and maintenance budgets, thus making the milling sector the Achilles heel of the industry. This, CANEGROWERS feels, has led to an untenable situation taking away from industry affluence. At CANEGROWERS Mackay's 2024 AGM I took it upon myself to expose the elephant in the room.

There have been claims from millers that grower reps who speak up about poor mill performance and its accumulated costs to the grower and harvester sectors are “talking down the industry”. But with crush end dates like 5 January for Mackay Sugar and 24 January for Wilmar, it is a necessity - a responsibility, in fact - that we speak out on the impacts on growers, eroding the profitability of our businesses. This is not purely an industry issue. It has ramifications for the community and the regional economy, and therefore, these communities have a right to know about issues impacting a significant number of family farming businesses.
Such late finish times mean that the start of maintenance and capital works during the off-season will also be delayed, every minute of which is needed to ensure a smoother 2025. Those works, alongside training and maintaining people working in the mills are presently the single biggest critical point to maintaining the reliability of our milling sector.
In any event, the likeliest outcome will be that the arrival of the monsoon will bring the crush to a halt.
As we go forward with this debate, we need to be sure that we remain calm in our discussions with the milling sector. As chairman of the QCGO farm inputs and research committee appointed to deal with these issues, I have been successful in creating a taskforce geared towards finding a solution. Canegrowers has been successful in getting a commitment from the ASMC to meet, with the goal of forging a way forward.

In the past there has been a reluctance from industry stakeholders to get together to sort these problems. I agree with ASMC's sentiment that we need to cease the public stoush, however it is disappointing that one party has to resort to such action to overcome the tin ear of the other.

The industry needs to be able to work as business partners and not be dismissive of their counterpart’s concerns. However, there is a limit to the tolerance of growers. We don’t need to worry about growers pointing out the industry’s shortcomings, we need to worry about farmers leaving the industry altogether. In a lot of cases, the farmers aren’t complaining to the millers, they are warning them about what can and will happen if the mills don’t lift their game.

After a prolonged period of time, Sugar Terminals Limited has released the election results held at their 2024 AGM. Mackay’s very own Paul Schembri was elected to take up the grower director position made vacant by the retirement of Tony Bartolo.

I take this opportunity to thank Tony for his time on the STL board representing the cause for grower shareholders. I would also like to congratulate Paul on his success in having grower shareholder confidence in him to represent them on STL.
STL is an industry owned body that is appointed as custodians of our sugar terminal assets, consisting of bulk sugar terminals located at the ports of Cairns, Mourilyan, Lucinda, Townsville, Bundaberg, and Mackay. It is now more obvious than ever that grower shareholders are of the opinion that they see STL is going down a path not supported by them by insourcing the operations of the terminals and as a result eliminating transparency and a long history of efficiency. I am sure Paul has the background and ability to represent shareholders on these issues.

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