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Cane promise ‘breathes life’ into embattled mill, town

Far north Queensland cane farmers are breathing a tentative sigh of relief after the Liberal National Party made an election commitment for a struggling mill.

Sep 09, 2024, updated Sep 09, 2024
The sugar cane industry injects about $190 million into the Mossman economy and 575 jobs.

The sugar cane industry injects about $190 million into the Mossman economy and 575 jobs.

For almost 130 years, a sugar cane mill has been the backbone of a far north Queensland town.

So when the Mossman Sugar Mill entered liquidation, the community near Cairns was devastated.

But a political promise has reinvigorated hope the economic pillar of the town will not be lost.

The Mossman mill began crushing cane in 1897 and underpins the town’s economy and job supply.

The sugar cane industry injects about $190 million into the local economy and 575 jobs.

However, one of Australia’s oldest sugar mills entered voluntary administration in November 2023.

Just months earlier, local growers claimed they had been reassured by the mill operator that the facility would be operating in 2024 so had again planted cane.

Then in February 2024, the mill entered liquidation after a potential last-minute buyer fell through.

Cane farmers feared their crops would go unharvested and wouldn’t be transported to the mill for crushing, costing millions of dollars.

“This has been exceedingly stressful for sugar cane growers in Mossman,” Canegrowers Association chief executive Dan Galligan told AAP.

“Every year, they’ve had the same challenge of looking for certainty, certainty, certainty.

“Nobody has been able to give them that certainty.”

The opposition Liberal National Party may be the region’s white knight after promising $12.5 million for cane farmers and the mill if it wins government in the October state election.

“I do not sign up to the view that there should be some kind of faux transition plan to get us through to an election,” Leader David Crisafulli told the Rural Press Club in Brisbane last week.

“That is waving the white flag.

“The industry has a future, I know it.”

Crisafulli promised $6 million for anyone to “breathe life” into the Mossman mill – whether it be refurbishing, looking at using cane by-products or part of the site.

“The money is on the table to strike a deal to keep workers in a job,” he said.

He also guaranteed the 2025 cane crop will be transported and harvested at Mulgrave Central Mill at Gordonvale, about 100km away.

And if an investor fails to take on the embattled Mossman plant, farmers can still plan and invest in next year’s crop.

There’s also $500,000 over 18 months on the table for the Canegrowers Association to lead new industry development, grower profitability and bolster the long-term viability of cane farming.

“Sugar has underpinned Mossman entirely for generations,” Crisafulli said.

“I know that something must change.”

The funding promise has lit up what had been a gloomy future for local cane farmers who feared significant financial loss from not being able to harvest their crops.

“I think we really welcome the principle they trying to drive for is greater certainty, which is really at the heart of a challenge here,” Galligan said.

“This provides some comfort.”

But Douglas Shire Mayor Lisa Scomazzon says the funding is an election commitment and doesn’t solve the problem farmers face now.

“It gives farmers a little bit of hope that maybe the industry will continue,” she told AAP.

“But you know, it is an election promise, and at the end of the day, it’s if they get in or not.”

With less than six weeks until the election, she says farmers had been left in limbo with their current crop, considered the best in years.

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“They’re wondering now, do we slash the crane? Do we kill the crane? What do we do?” Scomazzon said.

“What happens if the Liberal Party doesn’t get in? We’re back at square one.”

She also warned that $6 million for the Mossman mill will not be enough to revive it, even if a private investor takes a chance on it.

The year of uncertainty has caused farmers to plant less cane to limit losses which may impact investment.

“Someone’s not going to take the mill on unless they are guaranteed so much tonnage for them to crush,” Scomazzon said.

The mill and nearby rail tracks and train bridges were damaged in the January floods, only adding to the repair cost.

“$6 million is just not going to cut it,” Scomazzon said.

The state Labor government has also pledged a $12 million support package, with half to guarantee the crushing of this year’s crop.

A grant of $5.9 million was given to the Douglas Shire Council to look at alternative opportunities the region may wish to tap into, whether that’s tourism, diversifying into different crops, or small business opportunities.

Galligan said both parties have attempted to show confidence in the future of the sugar cane industry with the funding commitments.

However, each funding package supports different parts of the region’s agricultural future.

Galligan said the LNP’s promise provides certainty to the Mossman growers, their future crops and the reinvigoration of the mill.

Labor’s funding supports this year’s crop while looking forward to opportunities in the bio-economy and the diversification from sugar.

The LNP is tracking ahead in the polls to win the October 26 election, ending Labor’s nine-year reign.

With both parties putting money on the table for Mossman, Galligan said it is “not a horse trade” as to whether either proposal is enough to sway voters.

“(It’s) neither here nor there, but we’ve got both senior politicians seeing a future in agriculture,” Galligan said.

“That’s a good start.”

Scomazzon said it is difficult to say whether the LNP’s commitment will change voters.

“People go, ‘Oh, you know, we need to change it up’ but they go to the ballot box and go ‘Oh, I know who they are’ and just tick the box,” she said.

“I think it’s whoever can perform on the day will get in.”

Mossman is in the electorate of Cook held by Labor MP Cynthia Lui, with a 6.3 per cent margin. She’s up against the LNP candidate David Kempton.

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