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As deadline after deadline passes, there is still no definite answer on the future of CJ Ord sugar mill.
If it closes it will be the end of sugar cane as a crop in the Ord Valley.
Ord River canegrowers announced on Tuesday afternoon that after two previous offers to buy the mill had been rejected, growers were unable to put any more offers on the table for the Korean owners.
However, the State Government was still negotiating with the parent company in Korea to get them to run one more crushing season.
Also, from left field, it was revealed that a north Qld politician, acting on behalf of an international consortium, was trying to organise a bid.
They want to purchase a mill to convert it into a plant to produce bioplastics.
Growers feel like they have been held by the scruff of the neck with their backs to the wall.
They say they are farmers, not mill operators and it was not reasonable to expect them to buy and operate the mill.
They're not experienced in managing the risks associated with such a complicated enterprise.
Growers spokesman Paul Mock said: "To be told our cane won't be harvested unless canegrowers buy the mill is totally unacceptable."
It was both the canegrowers and State Government's preferred option to have CJ Ord operate the mill for the 2007 season.
Growers even offered their entire crop for free if CJ would operate the mill, but this was rejected.
They believe CJ has both a moral and contractual obligation to mill this year's cane.
"In good faith the growers fertilised, sprayed, irrigated and prepared the cane for the 2007 season," Paul said.
"Growers were given verbal commitments that CJ would mill the cane in 2007 with growers even hedging 25 percent of the crop on the futures exchange with CJ's help.
"Growers also signed a contract to contribute to the repairs of the mill to ensure a breakdown free 2007.
"When CJ refused to sign a one-year rollover of the existing contract, growers were concerned.
"Only three weeks before the scheduled start of crushing, growers were notified that CJ would not operate the mill in 2007 unless growers signed a new five-year contract, used the old formula and increased volumes, and the government approved Stage II for CJ as the preferred proponent.
"This option was not possible which left only one option which was for someone to buy the mill otherwise its key components would be shipped to CJ Indonesia's MSG refinery," Paul said.
Growers were given until May 28 to find a buyer an almost impossible ask in three weeks.
The problem was that it's nearly impossible to find and secure a buyer in just three weeks.
Growers want CJ to reconsider its position and start to operate the mill immediately.
Canegrowers say they will work closely with the government to implement a cane removal strategy that will enable disposal of the cane in an environmentally approved and timely way so growers can plant alternative crops in 2008.
The matter has also been placed in the hands of solicitors representing the growers. |
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