historichandoverofaustralia’s … · business, sucrogen, ... plan(crmp) asanalternativetothe ......

24
THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 1 Inside this issue P.2 REEF PROTECTION PACKAGE P.3 AUSTRALIA’S ENERGY SECURITY P.3 RAINFALL P.4 INDUSTRY NEWS - $8 MILLION FOR COMMUNITY ACTION GROUPS SRDC SEMINAR- LEADING THE WAY FOR A MORE SUSTAINABLE FUTURE P.5 CRC SIIB CONCLUDES P.6 COACHING AND MENTORING AUSTRALIA AGRIFOOD SKILLS FELLOWSHIPS 2010 FARM MANAGERS’ PROCRAM APPLICATIONS OPEN FOR QLD’S TOP EXPORTERS NATIONAL PLANT HEALTH STRATEGY SRDC EVENTS DIARY P.7 SRDC UPDATE - A BRIGHTER FUTURE WITH ETHANOL P8 SRDC PROJECT UPDATES P9 SRDC PROVIDES SCHOLARSHIPS FOR EMERGING LEADERS P10 CALL FOR RESEARCH PROJECTS P.11 MARKET OVERVIEW P12 ANNUAL REVIEW OF THE YEAR 2009 P.18 REGIONAL REPORTS Historic Handover of Australia’s Oldest and Largest Sugar Business defer its demerger of Sucrogen until 31 December 2010. CSR says that Wilmar does not anticipate any significant changes in the short term to Sucrogen's management and operations. This includes its milling and refining operations and its export contract with QSL. Mackay Sugar has a strong interest in the outcome as they hold a 25% stake in Sugar Australia and N Z Sugar, which are both 75% owned by Sucrogen. Sucrogen’s sugar mills crush just under 50% of Australia’s sugar cane while their sugar refineries hold a majority of refining capacity. Likewise farmers supplying Plane Creek mill will be very interested in how Wilmar will approach future business arrangements. All sectors of the Australian industry could be affected. CSR Limited’s announcement to sell its Sugar and Renewable Energy business, Sucrogen, to Wilmar International Limited is a historic and industry changing move in the Australian industry. The sale value of A$1.75 billion is the largest transaction ever in our industry. The deal closed after rival bidder Bright Foods Group lowered its bid from A$1.75 billion to A$1.65 billion, after a fall in sugar prices. The market has been divided on whether a demerger or a straight sale would be better for shareholders. Wilmar is one of the largest listed agribusinesses in the Asian region, with a market capitalisation of approximately A$31 billion. Under the sale agreement between CSR and Wilmar, CSR has agreed to

Upload: vuongdan

Post on 10-May-2018

219 views

Category:

Documents


1 download

TRANSCRIPT

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 1

Inside this issueP.2 REEF PROTECTION

PACKAGE

P.3 AUSTRALIA’SENERGY SECURITY

P.3 RAINFALL

P.4 INDUSTRY NEWS -$8 MILLION FOR

COMMUNITY ACTIONGROUPS

SRDC SEMINAR- LEADINGTHE WAY FOR A MORESUSTAINABLE FUTURE

P.5 CRC SIIB CONCLUDES

P.6 COACHING ANDMENTORING AUSTRALIA

AGRIFOOD SKILLSFELLOWSHIPS

2010 FARM MANAGERS’PROCRAM

APPLICATIONS OPEN FORQLD’S TOP EXPORTERS

NATIONAL PLANT HEALTHSTRATEGY

SRDC EVENTS DIARY

P.7 SRDC UPDATE -A BRIGHTER FUTURE

WITH ETHANOL

P8 SRDC PROJECT UPDATES

P9 SRDC PROVIDESSCHOLARSHIPS FOREMERGING LEADERS

P10 CALL FOR RESEARCHPROJECTS

P.11 MARKET OVERVIEW

P12 ANNUAL REVIEWOF THE YEAR 2009

P.18 REGIONAL REPORTS

Historic Handover of Australia’sOldest and Largest Sugar Business

defer its demerger of Sucrogen until 31December 2010.

CSR says that Wilmar does notanticipate any significant changes in theshort term to Sucrogen's managementand operations. This includes its millingand refining operations and its exportcontract with QSL.

Mackay Sugar has a strong interest inthe outcome as they hold a 25% stakein Sugar Australia and N Z Sugar, whichare both 75% owned by Sucrogen.

Sucrogen’s sugar mills crush just under50% of Australia’s sugar cane while theirsugar refineries hold a majority ofrefining capacity.

Likewise farmers supplying Plane Creekmill will be very interested in howWilmarwill approach future businessarrangements. All sectors of theAustralian industry could be affected.

CSR Limited’s announcement to sellits Sugar and Renewable Energybusiness, Sucrogen, to WilmarInternational Limited is a historic andindustry changing move in theAustralian industry.

The sale value of A$1.75 billion is thelargest transaction ever in our industry.The deal closed after rival bidder BrightFoods Group lowered its bid fromA$1.75 billion to A$1.65 billion, after afall in sugar prices.

The market has been divided onwhether a demerger or a straight salewould be better for shareholders.

Wilmar is one of the largest listedagribusinesses in the Asian region, witha market capitalisation of approximatelyA$31 billion.

Under the sale agreement betweenCSR and Wilmar, CSR has agreed to

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 2

Reef ProtectionPackageERMP and CRMP

The Sugarcane Environmental RiskManagement Plan (ERMP) was mailedmid-June to cane farmers from Inghamnorth.

ACFA has warned Government that thedelay in the production of the ERMP willmake it very difficult for farmers tocomply with the 30 September 2010deadline.This effectively allows farmersonly just over 90 days to complete andlodge the document. Unless ReefProtection Officers (RPOs) will beavailable 7 days a week, there will onlybe about 80 business days to assistfarmers with understanding andcompleting the document.

The launch of the ERMP has convergedwith the busiest time of the year andACFA will be keenly monitoringprogress.

Farmers in the Mackay and Burdekinregions are not required to complete anEnvironmental Risk Management Plan(ERMP). They may, however, elect tocomplete a Chemical Risk ManagementPlan (CRMP) as an alternative to thestrict requirements of 20m no-sprayzones for certain herbicides.

A CRMP is a voluntary plan that may beprepared and submitted as analternative to meeting strictrequirements placed on the use of theherbicides atrazine, ametryn, diuron andhexazinone under the Chemical Usage(Agricultural and Veterinary) ControlRegulation 1999 (Chemical Regulation).

Alternately, farmers may rely onidentifying or establishing EffectiveVegetated Treatment Areas (EVTA) on

their farm. Existing areas on farms suchas grassed headlands, spoon drains orgrassed swales may already meet therequirements of an EVTA.

Farmers will receive information on thisfrom DERM and I encourage farmers todiscuss this with their Reef ProtectionOfficer (RPO).

Soiling testing and thenutrient calculator

Under the Reef Regulations, Soil needsto be sampled and tested, as aminimum, within the 12 months prior tothe commencement of a new plant canecrop.

Farmers and fertiliser suppliers havebeen surprised by some soil test resultswith the subsequent maximum nutrientrecommendations coming in at a lowerthan expected level.

Farmers may now be unwittingly under-nourishing their cane crops.

While many farmers have traditionallytested soil and used nutrition methodsand services including the BSES SixEasy Steps, and agronomists toschedule crop nutrition, the ReefRegulations make soil-testing andnutrient calculation mandatory.They areno longer mere guidelines.

This means that soil testing is now acritical control point and the function of‘garbage in – garbage out’ can render asoil test useless and severely limit theamount of fertiliser allowed.

It is important that farmers know howtheir soil test is being conducted andmake sure that it is representative of thepaddock. It is crucial that the sample istaken at the correct depth and site; toavoid any cane trash and to keep awayfrom previous fertiliser bands.

Note that the greater the number ofcores taken to form a composite

RossWalkerChairman

CHAIRMAN’S COMMENT

www.reefwisefarming.qld.gov.au

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 3

Rainfall June 2010

Rainfall 1 April to 30 June 2010

Chance of exceeding the median rainfall for July to Sep 2010

RAINFALL

sample, the more reliable the analyticalresults for that sample will be.

Farmers should refer to the bookletprovided by DERM; The method for soilsampling and analysis for sugarcaneproperties regulated under theEnvironmental Protection Act 1994.

If farmers have any questions ordifficulties they should contact their RPO.

Australia’sEnergy SecurityMartin Ferguson, Minister for Resourcesand Energy, recently announced anational trade deficit in crude oil, refinedproducts and LPG of $16 billion per yearand estimated to be $30 billion by 2015.

The national energy resourceassessment released earlier this yearsays that, in the absence of major oildiscovery, domestic crude oil productionwill continue to decrease whileconsumption is forecast to increase byan average of 1.3 per cent per annumout to 2030.

Australia has moved from oil selfsufficiency in 2000 to being currentlyless than 50% self sufficient, to aprojected 20% self sufficiency by 2030.

Renewable energy is clearly a majoropportunity for Australia and the sugarindustry. It requires a consistent andsteady hand on policy settings to ensurethe realisation of that potential and notthe erosion of it, which has unfortunatelybeen the experience to date.

RossWalker

ACFA Chairman

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 4

SRDC SEMINAR -Leading the way for amore sustainable futureAssociate Professor SusanneSchmidt recently presented aseminar at SRDC about her researchwhich identified ways to improvenitrogen fertiliser application.

During the seminar Professor Schmidtsummarised six years of collaborationbetween UQ and BSES researchers inthe CRC Sugar Industry Innovationthrough Biotechnology which hasidentified traits and processes thatprovide promising avenues forimproving nitrogen fertiliser use.

"The environmental impact of highlevels of nitrogen fertilisation inagriculture is a problem of seriousconcern within the sugar industry," ProfSchmidt said.

"There is great pressure on sugarcanegrowers to reduce the environmentaleffects of nitrogen fertiliser losses fromsoil, due to the detrimental effectsexcess nitrogen can have on thesurrounding environment.

"Through further research we hope toprovide insight into better ways to boostthe environmental sustainability ofsugarcane production withoutexcessive use of nitrogen fertiliser,"Prof Schmidt said.

Contact: Prof. Susanne Schmidt onemail [email protected] orph: (07) 33651050

Professor Susanne Schmidt

Industry news$8 million for community action groups

The Australian Government has allocated up to $8 million to helpcommunity groups protect the environment and support sustainablefarming through its 2010-11 Caring for our Country CommunityAction Grants program.

Minister for Agriculture, Fisheries and Forestry Tony Burke,encouraged small community groups nationwide to apply for grantsof $5,000 to $20,000 to help them take action to protect and revitalisethe Australian landscape. “The funding can be used for a range ofpurposes, including for Landcare facilitators, removing weeds,planting trees, controlling pests and field days," Mr Burke said.

Eligible community groups may include:

• Community groups involved in coastal rehabilitation, restorationand conservation;

• Groups of farmers or land managers working on sustainablefarming or improving natural resource management;

• Indigenous partnerships involved in protecting or improving theenvironment;

• Groups involved in biodiversity, environmental protection ormanaging natural resources.

The guidelines and hard copy application form are available from theCaring for our Country website www.nrm.gov.au or ph: 1800 552 008.Applications close August 2010.

NEWS

NEWS

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 5

CRC SIIB ConcludesSeven years of successful sugarcane biotechnology research comesto an end recently as the CRC SIIB officially winds up its researchactivities.

The CRC's research and development activities ceased on the 30June, while the CRC SIIB office staff will continue wind up activitiesat their St Lucia office through till 30 September this year.

CRC SIIIB Chief Executive Officer Dr Peter Twine said the CRCoutcomes were impressive and the CRC would leave behind a stronglegacy for the Australian sugarcane industry for many years to come.

This legacy includes value-adding product options, platformtechnology/ knowledge for future biotechnology research and acooperative research spirit that is already making Australia knowninternationally as a leader in the field of sugarcane biotechnology.

Dr Twine said the success of the CRC was proof that a cooperativeventure between research, industry, government and commercialgroups can make big advances in a short time frame.

The Centre's impressive efforts will improve the long-termcommercial and 'green' potential of Australian sugarcane. Researchhas resulted in state-of-the-art breeding tools to help breedenvironmentally friendly and higher performing new varieties.

The CRC has also developed promising new products based onsugarcane such as a basis for numerous health products that couldtackle diabetes, and a 'green' packaging product which could meetgrowing national and international demands for recyclable waterproofpaper.

"Over the past seven years, our CRC has brought together some ofAustralia's and indeed the world's best agricultural biotechnologiststo map out a new future for the Australian sugarcane industry," DrTwine said. "And, 71 postgraduate and undergraduate students havebeen given the opportunity to work on real-life projects focused oncommercial outcomes. "My belief is the many benefits to flow out ofthis CRC will combine to help achieve a more secure and profitablefuture for Australian sugarcane."

To ensure the best possible commercialisation of the Centre'sintellectual property, the CRC SIIB has established BiotechnologyCompany, Sacron Innovations Pty Ltd. The Australian sugarcaneindustry and CRC SIIB participants have structured SacronInnovations to enable strong business opportunities to flow on fromthe CRC's major research outcomes.

To find out more go to: www.crcsugar.com.au .

The CRC SIIB was established by theAustralian Government under theCooperative Research Centre (CRC)program, and supported by a powerfulcombination of sugarcanebiotechnology expertise andcommercial investment.

Since its inception in 2003, the CRCSIIB's researchers and students havebeen making great progress towardsharnessing the true potential ofAustralia's richest energy crop. TheCRC SIIB will keep its web sitewww.crcsugar.com active until June2014 as an industry and scienceresource covering major achievementsin sugarcane biotechnology.

Research programs such as thissometimes produce surprisingoutcomes where highly attractiveprojects do not go on tocommercialisation, while others cometo the fore and make commercialsuccess. Overall this research hasunderscored the importance and thepotential of the sugarcane plant as abio-refinery and a commercialcounterweight to the highly cyclical rawsugar market.

www.crcsugar.com/News

INDUSTRY NEWS

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 6

National PlantHealth StrategyPlant Health Australia (PHA) is seekingcomments on the draft National PlantHealth Strategy (NPHS) to enable thedocument to be finalised.The Strategy'srelease to government and industry byPHA Chairman, Dr Tony Gregson AM,signals the start of a period ofconsultation during which feedback andendorsement will be sought to enablethe Strategy to be finalised.

The NPHS is designed to deliver anational strategic direction for the planthealth sector focusing on the next tenyear period. It is designed to incorporateall areas of the national plant healthsystem and involve all stakeholders thathave a shared responsibility andcommitment to the plant health status ofAustralia. The draft NPHS has beendeveloped through extensivestakeholder consultation to addresschallenges facing sustainableproduction and market access.

Comments should be directed to PHA'sProgram Manager, National Strategiesand Policy Coordination, NicholasWoods at [email protected] byphone on (02) 6215 7704 or fax (02)6260 4321.The draft strategy is availablein hard copy from PHA or can bedownloaded from their website.

Coaching and mentoring AustraliaThis program aims to enable young women engaged in primaryindustries to develop their coaching, mentoring, leadership,communication and decision making skills, which can be usedwithin primary industries, rural communities and their businesses.The workshop program will be facilitated by Rural DevelopmentServices and Ag Consulting in Brisbane on 19th and 20th August.This program is funded by the Department of Agriculture, Fisheriesand Forestry under Australia’s Farming Future. For moreinformation contact Rowena [email protected]

AgriFood Skills fellowshipsAgriFood Skills Australia fellowships valued at $10,000 each. TheFellowship program, offered in conjunction with the InternationalSpecialised Skills Institute, provides successful applicants with theopportunity to travel overseas and research a topic of particularvalue to the agrifood industry, examining innovative approachesthat demonstrate potential benefits for, and application in, Australia.For an application form click here.

2010 Farm Managers’ ProgramRabobank will again offer a Farm Managers Program (FMP) in2010 with a focus on equipping young farmers with the nous toeffectively manage big-picture agricultural issues.The FMP providesa forum for farmers to discuss issues such as the carbon economy,water availability, as well as issues for agriculture resulting from askyrocketing population in China. Participants will focus on drivingthe strategic direction of their farm businesses to proactively handlechange before it could adversely affect their bottom line.The FMP ison from October 18 to 22 with participants limited to 36. Moreinformation contact Skye Ward on ph: 02 8115 4139.

Applications open for QLD's top exportersThe Premier of Queensland's Export Awards are the state's highestrecognition of export achievement. The annual program is open toall Queensland exporters, large and small, regional andmetropolitan. Applications close Friday 23 July.

SRDC Events Diary1-6 Aug: 19th World Congress of Soil Science Brisbane, QLD

13 Aug: SRDC Expressions of Interest applications for research projects close

03 Sept: SRDC Scholarship project proposals close

03 Sept: SRDC Grower Group Innovation Project proposals close

03 Sept: SRDC Capacity Building Project proposals close

By Ian O’Hara and Kara Billsborough

While the successful production of Ethanol in Brazil has beenwidely recognised, one PhD student from the QueenslandUniversity of Technology believes when it comes to the futureof biofuel production, Australia will tread a different path.

Since 2008, Ian O’Hara has been researching ways to increaseethanol production from sugarcane through the conversion ofbagasse into biofuels.

Although Brazil has previously been used as a model for thefuture production of ethanol from sugarcane, Mr O’Harahighlights that it is important to recognise the significantdifferences that exist between the Australian and Brazilianindustries.

“As a result of both the long-term government policy to reduceoil imports and the impact of the depreciated Real currencyon production costs, the Brazilian sugarcane industry hasexpanded around new diversified facilities producing bothethanol and sugar from sugarcane juice,” Mr O’Hara said.

A brighter future with ethanol

The Mackay Renewable Biocommodities Pilot Plant is a pilot scaleresearch and development facility for the conversion of cellulosicbiomass (such as sugarcane bagasse) into renewable transport fuels(bioethanol) and other high value co-products in an integratedbiorefinery.

Mr O’Hara’s research does find that there are significantopportunities for biofuels production from sugarcane inAustralia, but the approach is likely to be different to that ofother rapidly expanding industries.

“Currently, the Australian industry is not expanding and wehave established infrastructure for sugar production fromjuice,” Mr O’Hara said.

In Australia, the level of fuel consumption continues to growat the same time that domestic oil reserves are declining andimported crude oil products are on the increase.

During his research, Mr O’Hara modelled a number ofscenarios looking at the economic impact of ethanolproduction on future industry revenue. He found that evenin moderate ethanol production scenarios, it is possible forthe existing Australian sugarcane industry to produce over60% of Queensland’s unleaded petrol requirements. In doingso, total industry revenue from combined ethanol and sugarproduction has the potential to increase by over one billiondollars.

“Sugarcane fibre is a lower value feedstock for ethanolproduction and the opportunity exists to increase totalindustry revenue through integrated facilities,” Mr O’Hara said.

A future vision of the Australian sugarcane industry is fordiversified bio-processing precincts, producing multiple bio-based products from sugarcane which is widely regarded asthe best biomass feedstock in the world.

The sugarcane biomass research program at QUT togetherwith the Sugar Research and Development Corporation, aimsto develop novel, value-adding technologies and demonstratethese at pilot scale in the new Mackay RenewableBiocommodities Pilot Plant.

This program provides a preliminary step to a more rapiduptake of new bio-products and biofuel technologies whichwill enhance future development of the Australian sugarcaneindustry.

For more information about this research contact Ian O’[email protected] or visit www.srdc.gov.au

SRDC UPDATE

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 7

SRDC project report updates

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 8

RESEARCH AND DEVELOPMENT

Some excellent examples of research projects recently completedare outlined below. These reports epitomise the wide range ofresearch SRDC has funded and will continue to support to ensurea profitable and sustainable industry. Final research reports orarticles published are placed on the SRDC website forall stakeholders to access . www.srdc.gov.au/ProjectReports

Final project reports

CHC002 - Development of a real time information system forClarence harvesters

The Clarence Harvesting Co-operative was formed from theamalgamation of four harvesters cutting a total of between 350,000and 500,000 tonnes of cane each year. This group discovered thataccess to near real time information about the supply chain wasrequired to realise the benefits of the larger harvesting operation.SRDC provided funding to allow Agtrix Pty Ltd to develop the solution,which was called SHIRT (Supply and Harvester Information in RealTime). SHIRT provided harvesting crews with valuable informationabout what was happening in the transport and milling operations assoon as the information was available.

Feedback indicates that the information being supplied to the crewswas very useful for their daily management. SHIRT was available foruse at Harwood for most of 2009 and will be introduced to the othertwo NSW Mills in 2010. NSW Sugar has incorporated themaintenance of SHIRT into their Service Level Agreement with AgtrixPty Ltd, thus ensuring that it will evolve with the business and thebenefits from this project will remain available to members of thevalue chain.

BSS266 - Optimum canegrubmanagement within new sustainablecropping systems

This project demonstrated that canegrubs can be effectively managedin canefields planted to new systems. Efficacy data was collected forinsecticides applied in new systems; this data has been summarisedin reports provided to relevant insecticide companies who will pursueformal registration of new use patterns with the APVMA. A newmonitoring system for southern canegrub species has been widelyaccepted by growers.Guidelines for effective canegrub managementin new farming systems have been compiled in a booklet to bedistributed to interested growers and advisory staff.These results will

increase the capacity of growers toadopt sustainable and profitable farmingsystems, and will enable better targetingof insecticides against canegrubs toreduce crop loss and unnecessaryinsecticide use.

BSS335 - Building capacity for theFuture Farmers group Mackay

A capacity building project held in Marchthis year involved a workshop with 16cane growers from the Mackay region.This group met with sugarcane industryleaders. All members of the MackayFuture Farmers believe the trip was veryworthwhile and would recommend asimilar trip to any other grower.

Current projects

BPS001 - Identifying managementzones within cane paddocks: anessential foundation for precisionsugarcane agriculture

This project aims to develop andpromote techniques for establishingzones for targeted application of bestmanagement practices within canepaddocks. The zones will be identifiedby mapping features in satellite imagery,soil electromagnetic induction (EM)responses, actual soil properties, andsugarcane yields. They will be geo-referenced (assigned latitudes andlongitudes) and viewed, queried, andanalysed at various scales in ageographic information system that willintegrate data collected from differentsites and at different times.The resultingmap units will allow the subsequentdevelopment and promotion of variablerate, site-specific, best managementpractices for sugarcane production andenvironmental stewardship. The

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 9

RESEARCH AND DEVELOPMENT

SRDC providesscholarships foremerging leadersSRDC is offering two scholarships fortwo people to attend a Training RuralAustralians In Leadership (TRAIL)residential course in Canberra from 25September until 2 October 2010.

Facilitated by the Australian RuralLeadership Foundation (ARLF) thiscourse is designed to improve thecapacity of rural leaders to engage moreextensively in issues and sectors acrossrural Australia.

SRDC’s scholarship is open toemerging leaders involved in thesugarcane industry, including growers,millers, researchers, scientists,extension officers, business managersetc. Each scholarship is worth $8500 forthe course, plus some extra travelexpenses will be provided by SRDC totravel to and from Canberra.

To apply for this SRDC scholarship,visit www.rural-leaders.com.au anddownload the TRAIL course applicationform and send to SRDC [email protected] by Fri 13 Aug 2010.

research will address two main questions (a) How do satelliteimagery and EMmap patterns relate to variations in space and timein soils, and in sugarcane yield? (b) Are there general relationshipsbetween image analysis, EM signals, yield, and soil properties thatare widely applicable within and between regions?

CSE022 - A coordinated approach to Precision Agriculture RD&E

Precision Agriculture (PA) offers the potential to increase on-farmproductivity and profitability by utilising new and emergingtechnologies that will assist in overcoming on-farm constraintsthrough targeting inputs and operations. However, it is recognisedthat although various PA technologies exist and are available togrowers in various forms, limited adoption has occurred. Furtheradoption of PA is not appropriate without technically-based skills tointerpret information about in-field variability. The specific objectivesof this project include:

• Coordinate and integrate an evaluation of PA technologies (i.e.yield monitoring and mapping) in collaboration with leadingfarmers, with emphasis on economics, case studies,communication and extension led by the key farmers;

• Provide the appropriate specialist integrative and interpretive skillsto complement existing research and developing PA technologies

• Provide input into investigations aimed at ‘ground-truthing’apparent variability within specific blocks of sugarcane.

• Develop standardised data collection, management and analysisprotocols.

• Improve capabilities of EOs and to provide technical support vialinks to appropriate specialists.

BSS303 - Sugarcane biosecurity integrated plan

This project aims to enhance Australia’s sugarcane biosecuritymeasures by thoroughly revising and updating the Industry’sBiosecurity Plan to account for recent changes in legislation and inPLANTPLAN, and in light of lessons learnt from the recent smutresponse.

The objectives are to (a) Develop Incursion Management Plans fordowny mildew, Ramu stunt, sugarcane longhorn borer, Eumetopinaplanthopper, sugarcane thrips and those moth borers not dealt withduring SRDC project BSS249 and (b) Update all current IncursionManagement Plans in light of new information, changed proceduresand lessons from smut.

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5

RESEARCH AND DEVELOPMENT

10

CALL FOR RESEARCH PROJECTS

The Sugar Research and Development Corporation (SRDC) is calling forExpressions of Interest for Research Projects to commence from July 2011.

Priority will be given to projects which contribute to step changes insustainable productivity in sugarcane growing, harvesting and/or milling inthe following areas:- Innovation in energy, biomass utilisation and product diversification.

- Reduction in production costs and/or improving the utilisation of capital.

- New and improved sugarcane varieties.

- Improvement in the uptake of new technologies and decision-makingtools by industry participants.

- Reduction in exotic biosecurity threats, and improvements in managingendemic pests and weeds, including risks enhanced by climate change.

- Sustainable improvement in productivity in the face of climate variability.

Successful projects are expected to deliver a positive change to profitabilityand a high return to industry on research and development investment.

Expression of Interest applications for research projects must be submittedby email to [email protected] by 13 August 2010.

In addition, SRDC is calling for project proposals for Grower GroupInnovation Projects, Scholarships and Capacity Building Projects, to besubmitted by 3 September 2010.

For details on how to submit an Expression of Interest application orproject proposal visit www.srdc.gov.au or ph: (07) 3210 0495.

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 11

MARKET OVERVIEW

Having fallen for 13 straight weeksthe market found support followingthe expiry of the May 2010 contract.

The recovery of raw sugar prices was ledby white sugar price gains. The raw-whiteprice differential reached USD 164/t asconcerns emerged over the lack of whitesugar availability for nearby delivery.

According to UNICA, 35.13 milliontonnes of sugarcane were crushed inCS-Bz during the first half of May; anincrease of 4.20 million tons on theprevious fortnight as more millscommenced their operations. UNICAreports 93.86 million tonnes of canehave been processed since the harvestbegan on 1 April 2010. Totalrecoverable sugars (ATR per tonnecane) stood at 126.96 kg for thefortnight, a figure virtually identical to thesame period in 2009 (126.46 kg of ATR).Sugar accounted for 42% of thefortnight’s cane and ethanol 58%.

In its first estimates for the 2010-11 cropcycle, Czarnikow project a globalsurplus of 2.5 million metric tonnesfollowing a 17.4 million tonnes increasein global production raw value, asproducers respond to the high pricesseen earlier this year. Sugar productionis projected to increase in Centre-SouthBrazil by 5 mln tonnes, in India by 7.5mln tonnes and in Thailand by 1 mlntonnes. Czarnikow also project a 2%increase in global consumption from168 mln tonnes to 171.3 mln tonnes.They report, “while this will go some waytowards reducing the tensions in thephysical market it is unlikely to besufficient to rebuild supply pipelines. Asa consequence, we expect that theglobal market will remain fragile duringthe 10/11 crop cycle.”

Kingsman also released its secondestimate of the 2010-11 crop cycle.Kingsman increases its global surplusestimate for 3.99 mln tonnes to 5.17 mlntonnes.

July 2010 finds supportJuly 2010 traded down to US 13.00 c/lb on 7 May, before itsresurgence. On 14 June the July 2010 contract settled at US 16.05c/lb, 305 pts or 19% higher than 7 May values.

The Australian dollar (AUD) has been subject to considerablevolatility, trading at AUD/USD 0.9388 on 12 April and as low asAUD/USD 0.8068 on 25 May. By 14 June the AUD had recoveredsome lost ground to close at AUD/USD0.8587. The AUD’s widetrading range reflects risk aversion associated with theemergence of global economic fears surrounding Europeansovereign debt levels, especially in Greece where governmentbonds have been reduced to “junk bond” status.

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 12

Australian Cane Farmers Association Limited

Annual Reviewof the year 2009

Production

Queensland production for 2009 was28.16 million tonnes, down from 30.17tonnes.

This was not a good result but a drycrushing period helped push sugarcontent to high levels with a Qld averageCCS of 14.7 for the year.

The industry has seen a declining areaplanted due to several years of farmersselling to MIS forestry, to ‘blockies’,movement into other crops, grazing anda general lack of financial incentive toplant sugar cane.

Cane Crushed (t) 2009

North 5,406,675

Herbert/Burdekin 11,154,318

Central 8,124,764

Southern 3,475,400

NSW 1,630,000

Australia 29,791,157

The 2009 area harvested was 344,102hectares, down fro 353,428 hectares forthe 2008 crush. This is a disturbingtrend and some millers have introducedschemes to bring land back in toproduction.

New South Wales harvested 1.63million tonnes in 2009 down from 1.93million tonnes in 2008. Both years havebeen disappointing due to negativeimpacts from frost, flooding and delayswith commissioning the newcogeneration plants at Condong andBroadwater mills.

The uncharacteristic dry harvest seasonmeant reduced harvesting and millingcosts and the early finish ensured the2010 crop was off to a good start.Irrigation costs were up in some areas,however, fuel and fertiliser costs werelower and this combined with high worldsugar prices (the highest in 29 years)ensured farmers and millers profitabilitywas improved.

The 2009 value of sugar production willbe in excess of $2 billion and this willallow farmers and millers alike to investin new plant and equipment and carryout improved maintenance whichaugers well for future years.

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 13

Australian Cane Farmers Association Limited

ANNUAL REVIEW OF THE YEAR 2009

The global setting

The global financial crisis has beengenerally good for the industry. Initiallythe Australian dollar lost value againstthe US dollar which was good for allexporters, interest rates fell, farm andmill input costs fell (steel, fuel andfertiliser) and labour supply improved asthe mining industry faltered. Thiscombined with an increasing deficit inworld sugar supply saw returns to theindustry increase.

During 2008, the crisis saw liquidity dryup resulting in index funds andspeculators withdrawing from the sugarmarket. However during 2009, liquidityreturned to the sugar market which waspositive and the Australian dollar againstrengthened against the US dollarwhich reduced returns to the industry.

Brazil and India are the two majorplayers in the world’s sugar market.Brazil had financial and wet weatherproblems impacting negatively on theirindustry while India had dry weatherwhich reduced their harvest.

Brazil’s decisions on sugar vs. alcohol,US ethanol production and India’sfarmers’ decision to move out of caneproduction were all factors thatcontributed to ICE No11 pricemovements contrary to the marketsupply and demand fundamentals.

However, the strong price rise duringmid 2009 was driven largely by a supplyshortage caused by the failure of themonsoon season in India and a wetterthan normal harvest in Brazil during thesecond half of 2009.

As a result, prices rose to levels notseen in a generation. There will be asmall increase in the area under cane in2010 due to increased plantings andnew ground in the Burdekin beingintroduced.

Mossman has reported a plantingincrease of around 10%, due to a millplanting incentive.

The market

Australian dollar returns for the 2009 &2010 seasons are encouraging andfutures prices appear strong as globaldemand has overtaken supply.

The financial crisis will have mixedresults for our industry. Brazil mayencounter problems funding projectedgrowth and this is a positive for worldsugar prices. On the negative side, lowoil prices may see Brazil divert moreproduction to sugar and less to ethanolin the short term. However, the longterm trend towards ethanol shouldcontinue. The second half of 2009 sawboth oil and sugar prices stronger.

Speculator activity initially declined andreduced liquidity and the amount offorward pricing available to millers andfarmers. This was turned aroundsomewhat during 2009 and augers wellfor the industry moving forward.

The global financial crisis seriouslyaffected MIS forestry schemes and theirimpact on our industry should decline,at least in the short term.

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 14

Australian Cane Farmers Association Limited

ANNUAL REVIEW OF THE YEAR 2009

Freight

Global freight rates declined significantlyduring 2008 reducing the far-eastpremium for the majority of Australia’sexports. However, during 2009 freightrates started to strengthen again.

Farm input costs

Fertiliser, chemical and fuel pricescontinued to reduce the viability offarmers with prices skyrocketingthroughout 2008.

However during 2009, the price offertilizer reduced dramatically due tofalling demand as a result of the globalfinancial crisis. Unfortunately, theselower prices may not last long.

During 2009;Bulk prilled urea rose about US$50/t.Bulk granular urea rose about US$60/t.

World Raw Sugar ProductionDynamics

A gain in production in 2009/2010 isexpected from:

Central America; South Africa; USA;China; Pakistan; The European Union(EU27); Brazil; India.

World Sugar Balance 2010/11

Kingsman predicts a surplus of 3.99million tonnes

This would require a production increaseof 19 million tonnes (Source: QSL).

* On 2 December 2009 the RBA raised the

cash rate 0.25 percentage points to 3.75%.

World Sugar Deficit 2009/10(Estimate million tonnes)

Predictor Estimate

Czarikow -13.5

Kingsman -11.9

LMC -11.3

ISO -7.3

Sucden -4.0

Financial Markets at 24 December 2009

AU$ / US$ 0.8792

US$ / Brazilian Real: 1.76

Crude oil – US$ per barrel 76.55

Gold – US$ / oz 1,088.15

Raw sugar contacts(ICE No.11) US ¢ /lb;

March 2010 26.5

October 2011 17.59

RBA cash rate * 3.75%

Inflation (CPI) 2.1%

Fertiliser Costs 23 Dec 2009 US$

Bulk prilled urea (fob)

St Petersburg $245

China $310

Bulk granular urea (fob)

Gulf $308

China $325

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 15

Australian Cane Farmers Association Limited

ANNUAL REVIEW OF THE YEAR 2009

Resistant varieties are being widelyadopted, additional resistant varietiesare being released to the industry, and acomprehensive research program wasdeveloped to minimise the effect ofsugarcane smut on the industry.

SmutBuster includes a substantialresearch component addressing a widerange of screening methods.

The SmutBuster program involves 400crosses annually using parents withhigh breeding value but with smut-susceptibility levels exceeding thosethat are acceptable.

Some 30,000 seedlings are plantedeach year.

BSES Funding

In 2009 BSES announced its intentionto implement a 55¢/t PBR commencing2010.

BSES intended to notify farmers by1 March 2010 to trigger the 55¢/t PBR.

Industry objection led BSES topostpone this on the basis that industryorganisation and BSES would their ‘bestendeavours’ to increase the averageindustry contribution from;

37¢/t in 2009 to,44¢/t in 2010 on a voluntary basis; i.e.under the service agreement.

An agreed outcome must be achievedby mid 2010.

BSES warns that failure to achieve 44¢/tin 2010 will result in BSES triggeringPBR in 2011.

For example, if in 2010, BSES collects37¢/t (the same as for 2009),

53¢/t would be required in 2011 to catchup.

If this 53¢/t is to come by PBR, the PBRlevy would need to be 66¢/t in 2011.

Australia

Biofuels

The biofuels industry needs effectiveleadership from all levels of Governmentand definitive policies are required forrenewable energy to play a role inreducing greenhouse gas emissions.

CSR Limited upgraded its ethanoldistillery in Sarina in June 2008 whichallows it to produce 60 million litres offuel grade ethanol each year. Theupgrade cost $17.8 million and wascompleted during 2009.

Proposed R&D restructure

The Australian Sugar Industry Alliance(ASA) has proposed merging the BSESand SRDC into a restructured BSES.Considerable savings have beenidentified which ASA argues will lead toa more focused and efficient outcome.In the future, Sugar Research Limited atQueensland University of Technologymay also be incorporated into therestructured BSES.

Sugarcane smut

The SRDC received $2 million from theRural Communities Program and thismoney will be spent over the next threeyears funding the Smutbuster project.

The BSES-CSIRO sugarcaneimprovement joint venture wassuccessful in obtaining the funding forwork towards the development ofproductive, smut-resistant varieties viathe SmutBuster project.

The outcomes in terms of adoption ofnew, smut-resistant varieties by growersand the adoption of smut-resistancebreeding strategies by the BSES-CSIROsugarcane improvement programappear to have been very effective.

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 16

Australian Cane Farmers Association Limited

ANNUAL REVIEW OF THE YEAR 2009

A June 2009 ABARE study that foundthat even if agriculture was not broughtinto the scheme, farmers would facehigher electricity, fuel and freight costsand lower farm-gate prices passed backby processors.

ABARE also found that broad acreincomes would slump by two per cent in2011 and be down by up to fourteen percent by 2015 – a hit of $1,100 initiallyincreasing to up to $8,900 over fouryears.

In February 2010, the FederalOpposition announced its EmissionsReduction Fund to support CO2emissions reduction activity by businessand industry.

Through the Fund, it pledges to support140 million tonnes of abatement perannum by 2020 to meet a 5 per centtarget. The coalition claims “this is aonce in a century replenishment of oursoil carbon.”

Environment

The Queensland Government’s reeflegislation commencing from 1 January2010 has been politically motivated andthe industry has not been impressed bythe government’s actions. ACFAbelieves the resources could have beenbetter allocated.

The Commonwealth Reef RescueProgram has been more sensible andpractical and will achieve results in acooperative manner. The programprovides matching funding to farmerswho have invested tens of millions ofdollars to improve farm practices and atthe same time improve theenvironmental outcome.

The Queensland Government legislationhas and will continue to result inincreased costs and red tape for centraland northern Queensland farmers.

This is because it is estimated that in2011, about 80% of cane crushed wouldbe PBR varieties & so only 80% of canecrushed would be levied.

Opportunities andThreats tosugar cane farming from climatechange policy

The final Garnaut Review was releasedlate in 2008 and presented the potentialimpacts of climate change on theAustralian economy and recommendedpolicies to minimise costs and maximisebenefits to the nation. The Report saysagriculture has a role to play inmitigating climate change. The FederalGovernment is considering a range ofways to address climate change and inDecember 2008 released details of theCarbon Pollution Reduction Scheme(CPRS), containing an EmissionsTrading Scheme (ETS). Agriculture wasto be excluded when the Scheme wasto commence in 2011 with a decision onpermanent exclusion or inclusion to beannounced by 2013.

The proposal dominated the politicallandscape during 2009 until the UnitedNations Climate Change Conference(the Copenhagen Summit) in Decemberfailed to negotiate a bindinginternational agreement. Theconference was troubled by deadlockand the outcome, the ‘CopenhagenAccord’ is not legally enforceable.

On December 2, 2009, the Senatevoted down the ETS causing a potentialdouble dissolution election.

The CPRS could return to the nationalagenda in 2013, after the current Kyotocommitment expires. Once more thiswould have serious implications foragriculture as the CPRS model has thepotential to increase costs for manyfarm inputs including fertiliser, fuel,electricity, water and transport.

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 17

Australian Cane Farmers Association Limited

ANNUAL REVIEW OF THE YEAR 2009

Other developments

CSR announced plans to demerge itssugar and energy business during 2009.

In December, CSR announced that theCSR Sugar division was to be renamed“Sucrogen.”

However a federal court ruling inFebruary 2010 blocked the proposalbecause of a concern over the ability ofCSR to meet future asbestos claims.

Another interesting development wasthe purchase by QSL of an 8.5% stakein Tully Sugar. QSL states it has nothingto do with Maryborough Sugar’s interestin Tully Sugar.

In November 2009, BSES Limited andDupont signed a commercial alliance todevelop GM Sugar Canes. The allianceaims to boost productivity andprofitability through biotechnologies thatresult in GM varieties, new planting andfarming systems, and greater biofuelscapacity. ACFA supports this move andrealises the potential benefits asenormous.

In February 2010, Mackay Sugarannounced contracts had been issuedfor the construction of a $120 millionpower plant at Racecourse Mill. Theplant will have the capacity to produce1/3 of Mackay’s electricity requirementsfrom baggase. The plant will beoperational by the end of 2012.

In closing 2009 was a good year and theprospects for 2010 are potentially better.

These years don’t come along too oftenand prices will inevitably fall. The ACFAwishes to record the organisation’sappreciation for members support as wecontinue to represent and work for you.

Most scientific reports state the GreatBarrier Reef is in good condition. ACFAhas worked closely with theQueensland Government to ensuremore sensible and practical outcomesare achieved. Australian cane farmersrecognise they have an important roleto play in protecting the environmentand are the leaders in their approach tobest environmental practice. Thevested interest groups (including theQueensland Government) attacks areopportunistic and self interest based.

QSL

Queensland Sugar Limited (QSL) hasundergone major changes with acompletely new Board led by ChairmanAlan Winney and a new CEO NeilTaylor. Most millers in Queensland willbe exporting through QSL in 2010 andthe Company has continued to marketsugar through the difficult globalfinancial crisis. QSL has performedwell, however the changes that haveoccurred have lessened farmer’sinfluence and control in the operationsof the company that has a large impacton their viability.

The development of a number of pricingoptions has resulted in many farmerslocking in prices up to 5 years ahead.In times of high sugar prices, the abilityto lock in these prices years ahead is avaluable management tool and is beingwidely embraced. It does not, however,mean getting the best or highest priceand most in the industry who locked inprices for the 2009 season will receivelower returns than those who did notforward price.

RossWalkerChairman

Stephen RyanGeneral Manager

Northern -Mulgrave, Babinda, Innisfail & TullyBundaberg Sugar's Tableland mill was the first mill in the far north tocommence the 2010 crush.

Skies are very heavy with little or no rain falling. A dry season would be a welcomesight after continuous drizzle and overcast conditions for the previous couple ofmonths.Yellow spot appears to be more active this year, particularly in Q200 andQ186 varieties. Once again a good dose of sunshine would be welcomed.

Cane grubs have again caused significant damage to crops on the area. Hot spotsare in the Silkwood, Moresby, Kurrimine, Japoonvale and Mena Creek areas, withlight to moderate infestations in the Daradgee and Garradunga areas.

Most farmers are using control measures, but not all. Farmers must realise that thisis an industry problem and all farmers, in susceptible areas, will be affected sooneror later.Don't rely on your neighbour for your grub control!

For more information contact your preferred chemical supplier or your productivityboard or BSES extension officer. The level of damage is 1.5 to 2 grubs per stoolbefore economic harm is reached; so growers beware, you don't need many grubsbefore tonnes and dollars per ha start affecting your crops viability.

Farmers' budgets and patience have been sorely tested as research has yet tosolve this tenacious problem. In a few short years we have managed to work aroundorange rust and smut and farmers ask; when will we reach effective grub control?

Grubs have always been around and are a problem in most areas on the cane

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 18

REGIONAL REPORTS

Northern -MossmanThe 2010 Mossman crushing season commenced on 16 June.

The first week crushed a stop-start 13,000 tonnes. At 24 June mill average was 12CCS, with the crop coming in heavier than estimate in some areas and lighter thanestimate in others. Occasional light showers have not affected the harvest.

The ERMP roll-out is going to present a problem as farmers are busy withharvesting and planting. The mandatory nutrient calculator is also causingdifficulties in the Mossman area.Maximum nutrition allowances are coming in 'way'under the expected levels that farmers know is needed to run a profitable industry.This needs to be remedied urgently!

Don MurdayNorthern Director

John BlanckenseeNorthern Region Director

Don MurdayNorthern Region Director

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 19

REGIONAL REPORTS

Carol MackeeHerbet Region Director

HerbertCrushing commenced in the Herbert on the 21st June, 2010.

The weather conditions have seen farmers getting ground ready with some earlyplanting. At the present time we have overcast windy conditions, with very littlerain. A bit of a shock after the lovely days we have been experiencing.

Grubs are causing concern in the Herbert and farmers need to continue therecommended treatment.

At the present time mobs of pigs have been moving around and farmers need tobe ever vigilant. It is a never ending battle to control these feral pests. Cockatooshave also been giving the cane a hiding as it has matured, with some paddocks'sweeter' than others.

The abandoned MIS (tree plantations) in the Herbert have left behind anenvironmental disaster for local landholders. These plantations have become abreeding ground for pests and weeds, including the declared, environmentallydamaging grass, hymenachne, along with feral pigs, etc.

While farmers are facing Environmental Risk Management Plans and otherconstraints, just what is the Government doing with regard to fixing this mess? Sofar it has been left to farmers who have faced over 10 years of tough economictimes trying to defend their boundaries from declared weeds and pests that arebreeding on public and derelict sites. Farmers are not being treated fairly and theEnvironment Minister needs to look at the big picture, not penalise farmers.

Carol MackeeHerbert Region Director

industry. Our arsenal of grub-control weapons is limited but we have to keeptreating and researching in a well coordinated manner, otherwise the viability of themost susceptible parts of the industry will be seriously in doubt.

Finally my heaviest criticism is to the large areas of ex-cane land now under treeplantations that have been abandoned or are in receivership.These properties haveregrowth of volunteer cane, vine, grasses, etc.This has the potential of a fire hazardand is a breeding ground for pests and diseases; not the least, grubs and pigs.

When are the authorities going to step in and clean up this problem? Passing thebuck is not acceptable!

John BlanckenseeNorthern Director

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 20

REGIONAL REPORTS

that CSR/Sucrogen have submitted tothem. District collective groups orindividual growers have little differencebetween agreements and suffer thesame difficulties in their negotiations forproposed changes.

The Annual General Meeting of theAustralian Cane Farmers Association,Burdekin Branch has overwhelminglysupported the re-election of FrankScarabel as Chairman, IanShepherdson as Secretary and haselected Enzo Arboit as Vice-Chairmanfor the coming year.

Discussion centred around the QCAreview of water prices and membersresolved to form an Australian CaneFarmers Association water committee torepresent growers' interests across thestate, on irrigation issues. Membershipwould be paid at 1cent per tonne andmembership would be extended to bothmembers and non-members alike. Amembership form has been drawn upand is now available from the localdirector, Margaret Menzel.

Burdekin Productivity Services hasadvised growers to ensure that allhygiene procedures are followed withmachinery movements and planting andharvesting equipment, within andbetween farms. Failure to follow theprocedures can be a costly exercise –prevention is still better than cure.

Advice from Burdekin ProductivityServices has confirmed that "Q183continues to exhibit good field toleranceto smut under heavy infestationpressure on the BSES research farm inthe Bundaberg region. BSES intends totrial Tellus under similar conditions in thenear future."

Growers are advised that the ReefWisecompliance record books are nowavailable for use. Reef Rescue grant

BurdekinThe Burdekin harvest had an eventfulearly start, with an early start to millperformance issues, includingKalamiabeing out of action, resulting in canetransfers to Invictamill (despite its ownshare of performance issues) and amill worker's strike in time forKalamia's return to production.

A strike by QR over the StateGovernment's planned assets saleadded to the mix. Localised rain hasresulted in some supply delays; howeverthese have not been widespread orprolonged.

District CCS began poorly, rising to anaverage of 12.7 over the district, to 23June. The total crush over the fourBurdekin mills, to date, is in excess of400,000 tonnes.

The Australian Cane FarmersAssociation Collective met ahead of theseason to finalise negotiation issues forthe Cane Supply Agreement for 2010and to discuss relevant issues.

The commencement of the 2010harvest, with only interim contracts inplace for all collectives, again confirmsthe failure of the so-called "deregulation"process put in place by the Queenslandgovernment. Cane farmers are againsupplying the 2010 harvest with theprospect of no bargaining power tonegotiate a fair contract as theirbargaining power has already beensigned away under the interimagreements.

With cane continuing to be harvested,the whole process is shown up as acomplete farce. It is now immaterial toCSR/Sucrogen whether they continuenegotiations, or whether the growerbodies approve the generic agreements

Margaret MenzelBurdekin Director

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 21

REGIONAL REPORTS

recipients for Round 2 should have completed a Farm Productivity Assessment(FPA), the 6 easy steps and chemical accreditation courses. I recently held aworkshop for growers to complete their FPA on 25th May at the Synergy Officesin Queen Street, Ayr. Dave Millard conducted the course and it received a 'thumbsup' from all participating growers. Further courses can be held if required bycontacting me on 0407 779 700.

Growers have requested more workshops to discuss industry events andrequirements as a group environment provides an ideal avenue for discussion andresponse to any difficulties encountered by the participants.

Margaret MenzelBurdekin Director & Jnr Vice-Chair, Australian Cane Farmers Association.

Central QueenslandThe crushing season is progressing well with good harvesting conditions. CCScontinues to increase and with a recent strengthening in the world sugar price theoutlook is encouraging. It does appear however that initial tonnage estimates maynot be achieved, which is disappointing.

In the Mackay Sugar area, Q228 started out with the highest sugar content followedby Q185, Q208, Q226 and Q205. PRS at 6 July was 12.45.

Ground preparation for planting is well advanced and when warmer weatherapproaches planting will get into top gear.

Smut is widespread across the district with some varieties heavily infested.

Plane Creek variety performance ranking up to the week ending 3 July wasKQ228 –14.63 CCS, Q221–13.98 CCS, Q185 – 13.84 CCS, Q135 – 13.66,Q209 – 13.59 CCS & Q208 – 13.57 CCS. A CCS of 15.98 in a sample of KQ228from the Koumala area was recorded.

Mill average CCS for the season to date was 13.42.

The QUT Biorefinery opening was on Friday 9 July at Racecourse Mill, withPremier Anna Bligh officiating. The project has the potential to provide valuablediversification options for the region.

RossWalkerCentral Region Director

RossWalkerCentral Qld Director

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 22

REGIONAL REPORTS

Mike HetheringtonSouthern Director

Connor O’Malley andMike Hetherington

inspect GaryWalk's (notpictured) two row

planter. He and his crewbuilt it out of single rowunits. 41 acres a day!

Used mostly to plantBundy Sugar farms.

Connor O'Malley, anIrish visitor worker

was having a look at it.He thought it lookedmuch better than awholestick planter!

Southern QldCrushing is under way. Sunday 20th June saw most harvesting operationssetting out on their shakedown runs with trucks on the roads aroundMaryborough and papers printing photos ofmills puffing a bit of trial run smoke.

Rainfall has been well below average for May and June, at one tenth of theaverage! This has allowed much of the water-logged ground to pick up a little. Infact we have irrigated continuosly from mid-May to mid-June and then only stoppedto make ready for the harvest. When the Sunshine Coast has a few millimetres itmust have been a dry session.

2010 Water Allocations are 100 percent, thanks to a wet summer, so July will bea busy month for irrigation equipment maintenance. The reasoning behind this is,from looking at the records, the last dry May - June preceded the 1982 drought.

Arrowing of some varieties has growers wondering when to cut these varieties. Ithas been many years since such prolific arrowing has occurred in the region andso management issues will need to be revisited.

The Irrigation water pricing policy debate has gone quiet, but will reappear withthe next phase of the QCA enquiry.

Producer pricing has been brought forward with mills actively encouraging growersto become involved in some form of 'owner-driver' pricing.

Bundy Sugar and ISIS Cane Services have struck a deal to swap cane tonnagefrom their respective areas to reduce transport costs. Cane grown on ISIS CaneServices land and cane growing on Bundy Sugar land is being sent to the nearestmill. Individual growers are not involved.The deal is between corporations. Rightlyor wrongly, sentiment is still strong with individual growers as to who crushes theircane, so none of the 40,000 tonnes is from privately grown farms. Cane from theBullyard area, north of Bundaberg is going to Bundy Sugar on rail and cane in theFarnsfield area south of Bundaberg is going to ISIS Mill on rail. Road transport istherefore reduced. Comical if it hadn't cost us all so much!

Milliquin has had a few million spent on modifications to extract more sugar Thishas the benefit of reducing the amount of crop required to fulfill orders and countersthe effect of urban sprawl eating into the crop.

ISIS Board structure has changed again. Mark Hochen has ben electedIndependent Chairman of the Board. From a farmers point of view this could beseen as a loss of the ability of farmers to run their own business. Historically thisowner operator system is what has kept the ISIS Mill alive.Modern times may havecreated an environment where farmers no longer have the skill/ability/education tomanage a sugar mill. Time will tell!

Got to go, bins are not self-filling!

Mike HetheringtonSouthern Region Director.

THE AUSTRALIAN CANE FARMER JUNE - JULY 2010 VOLUME 10 ISSUE 5 23

REGIONAL REPORTS

NSWNSW Season kicks-offAll mills in NSW have kicked off the 2010 crush. Condong Mill started on 21June, Broadwater 1 July and Harwood 29 June.While the crush will not be arecord, the tonnages per hectare will be respectable.

The NSW Sugar Milling co-op has engaged a member of staff to work towardsbringing some of the land that has been lost to production over the last severalyears back into sugar cane .With acceptable sugar prices expected over thenext several years we think the project will be successful.

There is an air of optimism in the industry that has not been present for sometime.

Our three mills all started the season on burned cane this year. From the 4th ofAugust Condong mill will move to green cane harvesting for a trial of 100,000tons. During the period of the trial no burned cane will be accepted at the mill forcrushing. The local cane growers executive will assist the mill staff to organizethe trial and to ensure equity of harvest during the trial period.

The trial will start with growers providing cane with about 50% of the availableextraneous matter (no topper running and extractors running at 600 rpm).

If this still causes problems at the mill then we will increase extraction until themill can handle (crush and make sugar) what we send in .

The three cane growers executives in NSW have been organizing chemicalaccreditation courses for their growers to renew their certificates and for the fewwho have not done the course at all. The course runs for 2 days and in NSWfarmers must renew their certification every five years .

Let us hope that the season is a productive one for all our growers and that wehave an early finish without too many stoppages, at the mill or by wet weather.That is a big call but we can only hope!

Robert QuirkNSW Director

Robert QuirkNSW Director

The Australian Cane Farmer is proudly supported by:

YOUR LOCALACFA DIRECTORS

North Queensland Representatives:Don MurdayHome Phone: (07) 4098 1635Mobile: 0418 774 499Email: [email protected]

John BlanckenseeHome Phone: (07) 4061 2034Mobile: 0407 162 823Email: [email protected]

Herbert Representative:Carol MackeeHome Phone: (07) 4777 4957Email: [email protected]

Burdekin Representative:Margaret MenzelHome Phone: (07) 4783 4776Mobile: 0407 779 700Email: [email protected]

Central Queensland Representatives:RossWalkerHome Phone: (07) 4954 3126Mobile: 0429 615 711.Email: [email protected]

Southern Queensland Representative:Michael HetheringtonHome Phone: (07) 4126 9118Email: [email protected]

New SouthWales Representative:Robert QuirkHome Phone: (02) 6677 7227Mobile: 0413 677 727Email: [email protected]

AUSTRALIAN CANE FARMERSBRISBANE OFFICE

GPO Box 608,Brisbane Qld 4001Telephone: 07 3303 2020Freecall: 1800 500 025Facsimile: 07 3303 2024Email: [email protected]: www.acfa.com.au

ACFA SERVICESPublications: The Australian CaneFarmer - published elevenmonths per year. Australian Sugarcane - the leading R&D publication- Bimonthly.

Representation: ACFA has a proven record of fighting for farmerswhere others have either given up or not begun.

Branch Network & Local Representation:Make use of your localACFA branch, call your local director or visit www.acfa.com.au

Corporate services:World sugar news;Market information; Politicaland Local sugar related news; Wage and industrial relationsinformation; Environmental matters;Water issues.

Industry surveillance: ACFA is constantly monitoring mattersrelevant to canefarmers.

Insurance: General insurance - ACFA insurance is the marketleader. It has the largest share of cane farm general insurance inQueensland and Australia:

• Crop insurance• Life insurance and personal accident insurance - ACFA insuranceprovides life and personal accident insurance via AON andAustralian Casualty and Life.

• Financial planning - ACFA members have access to AON financialplanners.

Pays: For a fee, ACFA members have access to an automated paysservice.

Articles in The Australian Cane Farmer do not necessarily representthe policies or views of The Australian Cane Farmers Association.Editor-in-chief: Stephen Ryan