Mills feeling the heat
A MILLION-dollar power price hike has sugar mills feeling the strain of the power price saga. Bundaberg Regional Council and both Mackay and Bundaberg Sugar, have weighed in on the price debate, hurting cane farmers around the state.
“The mills in Bundaberg have had an increased power price of a million dollars compared to six years ago,” said Bundaberg Sugar general manager of operations David Pickering.
“On average they generate more power than what they do when crushing and that powers offices, workshops and maintenance.
“If the prices aren’t reduced there will be a chain reaction of reduced yields meaning reduced crops to process, less employment on farms and less employment in mills.”
The anguish comes after a QCA draft report had left agriculture out of possible power cuts last month.
Bundaberg deputy mayor Bill Trevor said as a farmer himself he understood the anger.
“The sugar industry has been the back bone of Bundaberg for a very long time and it is very important to many people,” Mr Trevor said.
“At the moment the price of power is overwhelming, and the price of sugar is low.
“I feel like the government just doesn’t care, it’s not just power prices that have gone up, it’s also the cost of all other things like water that are hurting people as well.”
Mackay Sugar executive assistant Carmel Grech said the cut back of irrigation was impacting the sugar milling.
“Every tonne of cane is critical to the mills when sugar prices are low,” she said.
“Cash is tight so growers are reducing irrigation because of spiralling electricity prices and the dams have a lot of unused
allocation because of this.”