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Ownership <strong>of</strong> sugar mills has been concentrated in recent years. In 1980, 19 companies operated 33<br />

mills, whereas today 10 companies operate 25 mills. In 2006 farmer cooperatives / owned mills<br />

produced 40% <strong>of</strong> Australia’s raw sugar (Sugar Industry Oversight Group, 2006).<br />

Table 5.1 Ownership <strong>of</strong> Australian sugar mills<br />

Ownership Structure Australian Milling Companies Sugar Mills<br />

Public Companies MSF Sugar Maryborough; Mulgrave; South<br />

Johnstone; Tableland<br />

Public Unlisted<br />

Companies /<br />

Grower-Owned<br />

Mills<br />

Co-operative /<br />

Grower-Owned<br />

Mills<br />

Sucrogen<br />

Tully Sugar Limited<br />

Mackay Sugar Co-operative Association<br />

Limited<br />

Mossman Central Mill Company Limited<br />

Bundaberg Sugar Ltd<br />

Isis Central Sugar Mill Co Limited<br />

New South Wales Sugar Milling Cooperative<br />

Limited<br />

Proserpine Co-operative Sugar Milling<br />

Association Limited<br />

Victoria; Macknade; Invicta;<br />

Pioneer; Kalamia; Inkerman;<br />

Plane Creek<br />

Tully<br />

Farleigh, Racecourse , Marian<br />

Mossman<br />

Bingera, Millaquin<br />

Isis<br />

Condong, Broadwater<br />

and Harwood<br />

Proserpine<br />

Private Companies W H Heck & Sons Pty Limited Rocky Point<br />

Despite deregulation <strong>of</strong> the industry over 90% <strong>of</strong> raw sugar exports are marketed through <strong>Queensland</strong><br />

Sugar Limited (QSL). Eight mills supply raw sugar to QSL on a rolling 3 year contract know as Raw<br />

Sugar Supply Agreements (RSSAs). The Raw Sugar Supply Agreements (RSSAs) are the supply<br />

contracts under which QSL aggregates and pools raw sugar supplies, which is sold on the world<br />

market. In addition QSL provides pricing, financing, risk management, shipping and logistics services<br />

to it sugar mill customers. Mills contract to supply raw sugar to QSL on a rolling three-year basis, and<br />

at the end <strong>of</strong> June each year have the opportunity to not roll over their contract, effectively giving<br />

three years' notice <strong>of</strong> their intention to withdraw from QSL's pool (QSL, 2011).<br />

An example <strong>of</strong> sugarcane milling, harvesting, transporting and growing arrangements is provided<br />

below for the NSW sugar industry. NSW is <strong>of</strong> special relevance to the mallee industry given their<br />

move from burnt cane harvesting to whole crop harvesting to increase cogeneration capacity and the<br />

impact this had on factory operations, harvest and transport efficiencies and pr<strong>of</strong>itability.<br />

133

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