FISHING TO FIND LOWER COSTS
A NORTH Queensland farming business has revealed its electricity bills have more than tripled in the past five years as they struggle to remain competitive in a global market.
GFB Fisheries, which has fish farms in Kelso and Bowen, is just one of many Townsville businesses struggling with the cost of power in North Queensland.
In 2012 GFB’s monthly power bill for February was $ 50,618.55 compared to the February 2017 bill which totalled $ 157,149.54.
GFB Fisheries managing director Carey Ramm said it was facing strong competition from imports but had grown by focusing on efficiency, productivity and technology.
He said the business was now becoming uncompetitive because of electricity prices which were out of their control.
“We are a hi- tech producer but this means we use a lot of electricity,” Mr Ramm said.
“Using technology is the only way we can compete with the low- cost producers of Vietnam and Myanmar.
“On one hand we have the Government pushing us to be a smart state but on the other we can’t afford the electricity to use smart technology.”
This year alone GFB’s electricity costs increased 70 per cent while power accounts for 13 per cent of costs.
Glencore has previously said that North Queensland’s high power prices are threatening their Townsville Copper Refinery with 35 per cent of their total costs coming from energy.
Townsville Chamber of Commerce president Troy Popham said high power prices meant businesses often couldn’t compete with their rivals in other areas with access to cheaper electricity.
“We’re hearing from lots of businesses around the region power prices have increased and it’s had a significant impact on their profitability,” he said.
“In business where electric is a major input it can almost make the business unsustainable.
“It’s wrong but we have to accept the price that comes up the line.”
Mr Ramm said it wasn’t only the price of electricity that was concerning but also the quality of supply.
“Our electricity prices have been skyrocketing and the quality of the supply is lousy,” he said. CAN’T COMPETE: GFB Fisheries managing director Carey Ramm and ( below) the company’s fish farm at Bowen.