Yet another setback for farmers
QUEENSLAND Sugar Ltd’s failure to meet forward selling commitments on last year’s harvest has started to hit home.
F a r m e r s w h o s u p p l y Sucrogen mills this week received a letter from the miller advising them they would not be paid their March instalment.
For a farmer in the Ingham area growing 12,000 tonnes of cane, this will amount to an immediate loss of around $ 9000.
In the Burdekin, where CCS was higher, it would be about $ 10,000.
The company’s decision will impact on its mill areas in I ngham, t he Burdekin and Sarina.
One Canegrowers representative said yesterday that the decision by Sucrogen was made on the back of it not being paid by Queensland Sugar Ltd.
The p a y ment mess c a me about after Queensland Sugar Ltd pre-sold part of the 2010 crop, but was caught out when rain throughout the harvesting costs incurred during the 2010 season – which in Sucrogen’s case amounts to $ 60.9 million – from the proceeds that would otherwise be payable.
‘‘ As a consequence of this situation, there will be no cane payment to growers next week.’’