Sugar future critical

Print date: 24 May 2007

Sugar future critical

 

There is still no answer on the future of sugar in the Ord Valley.
Cane growers are still waiting to hear back from sugar mill owners CJ Ord Sugar.
With the crushing season just about ready to start, the mill has continued to gear up as if the season will go ahead.
But nervous growers are not optimistic, as they have no written contracts or guarantees that the cane they have in the field will be processed.
Meetings with WA Agriculture Minister Kim Chance don't appear to have produced any results and offers from a consortium of growers to purchase the mill have not attracted an answer yet from CJ Ord Sugar.
It is believed two other potential buyers have made bids, but the company may still decide to pull the mill apart and ship it to Indonesia, where CJ's parent company has an MSG plant that requires a reliable power source, something the 'co generation' potential of the Ord Valley mill can provide.
It is believed that CJ Ord Sugar has asked the WA Government for a guarantee of 7000 hectares of Ord Stage II to be used for growing sugar cane.
Meanwhile, growers are on tenterhooks waiting for a CJ announcement.
If the mill doesn't go into operation for this season, it would leave farmers severely out of pocket with millions of dollars of cane already planted and ready for harvest.
Not only would they lose the revenue from the cane, but they would be out of pocket even more millions of dollars to harvest the cane and dump it, as it cannot just be ploughed back into the ground.
In terms of employment, it would mean the loss of about 80 jobs, including operators at the mill, transport and associated activities.

 

 
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