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After a few weeks of 42 and 43-degree weather, which scalded some of the cane, the storms have finally arrived, bringing respite and restoring some sanity to siphon starters. Each afternoon, the mill crosses its fingers, hoping the storms will go around the paddocks being harvested. Thankfully only about 20 hours have been lost to rain so far. Locusts are still around but damage is easily controlled with the approval of two new chemicals for aerial application. With the recent rains, it will be interesting to see if more hatch in the surrounding bushland, possibly causing headaches in the next month. The weather bureau is predicting an above average rainfall this year, but so far there are no reports of ants climbing trees. Milling is now into its 29th week, with 440,674 tonnes crushed and it is estimated another two weeks will be needed to crush the expected total of 468,000 tonnes. |
The average pol looks like finishing the same as last year at about 13.5 percent with the yield up about 3.5 percent to 120 tonnes per hectare. Unfortunately, while having the same pol as last year, the percentage turned into sugar has dropped by 0.4 percent. The October NY11 contract dropped below 6c/lb leading up to it's expiry and this led to a disappointing finish to a fairly average year for prices. Farmers look to earn about 70c per tonne more than last year. 2004 looks even more ominous with a high exchange rate (with predictions it will move higher) and the world market still oversupplied. The pricing committee is hoping to lock in prices in the 7-7.5c/lb range but this could take a while with prices currently around 6.2c/lb. The mill is planning maintenance to reduce the crushing period back to a manageable 26 weeks. |
With higher production next year, estimated at 500,000 tonnes, this will require an improvement from this year's 15,195 tonnes of cane per week to 19,230 tonnes of cane per week. The push for the release of more farmland so that the mill can double its capacity to one million tonnes per year is gaining momentum, with representations made to both sides of politics in WA. This is seen as the only way the industry can remain viable long term with world prices staying low in the foreseeable future. It is hoped that 5000 hectares can be released separate from the Stage II dream. New cane supply contracts are still being negotiated, with more grower meetings scheduled in the following weeks before the Christmas break. The next couple of years are crucial for the whole industry, with the need to expand and attract new growers in a period of low prices. Next year's crush will start in April, so until then, have a restful Christmas. |