Foreign owners save jobs but industry laments lost heritage

IT IS an iconic Australian industry but 95 per cent of Queensland’s sugar mills will be majority-owned by overseas interests when two major sales go through.

A 70 per cent share of Mackay Sugar is being bought by German company Nordzuker, while Isis Central Sugar Mill, southwest of Bundaberg, is expected to go to Pakistaniowned Almoiz Group by the end of September.

It will leave just two of the 21 sugar mills in the state in wholly Australian hands.

The other 19 mills are responsible for 95 per cent of sugar production in the state.

It is a vast change from just over a decade ago, when only about 5 per cent of the industry was owned by offshore interests.

While the most recent transactions have largely been welcomed by both millers and growers, helping to save jobs in the industry, it has been mixed with sorrow.

Canegrowers Queensland boss Paul Schembri said 95 per cent of Mackay growers voted to back the takeover on Monday night.

He said while there was overwhelming support, it was still sad.

“In the context of Mackay, 70 per cent of the equity was the heritage of our fathers and forefathers,” Mr Schembri said.

“A lot of generations fought hard for that.

“There are moments of reflection. But reality has hit us very hard.

“The reality is we were in a very difficult financial position and we had to find an investor.”

He said the takeover had spawned new grower-owned co-operative Mossman Sugar, separating out from Mackay Sugar as part of the takeover, which will be the second Australian-owned mill.

The other is Rocky Point Mill on the Gold Coast.

Almoiz Group is investing about $35 million to acquire up to a 54 per cent stake in Isis Central.

Australian Sugar Milling Council CEO David Pietsch said the investment had provided certainty for the industry.

“To be globally competitive, the sugar industry must continue to invest and innovate,” Mr Pietsch said.

“A failure to invest will erode our position as a low-cost, efficient producer.”

The increase in foreign ownership of mills began after deregulation of the industry from 2006.

Picture: PETER WALLIS MIXED FEELINGS: Queensland Cane Growers chairman Paul Schembri says growers back the takeover of Mackay Sugar but are sad at the loss of control for locals.