Yet an­other set­back for farm­ers

Townsville Bulletin - - Investor -

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.’’

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