QLD: Some sugar growers could be ruined Canegrowers

AAP General News (Australia)
04-07-1999
QLD: Some sugar growers could be ruined Canegrowers

BRISBANE, April 7 AAP - Some far north Queensland sugar growers might go to the wall unless
the federal government declared a state of "exceptional circumstance" for the region, a sugar
industry leader said today.

Harry Bonanno, chair of the peak industry body Canegrowers, said the declaration was
urgently needed following the plunge in world sugar prices and also natural disasters,
including Cyclone Rona which hit north Queensland in February.

Canegrowers was working with the Queensland government on a 40-page submission covering the
coastal region from Ingham to Mossman, Mr Bonanno said.

The document would be put to federal Agriculture Minister Mark Vaile over the next few
weeks.

"In this economic scenario, we can expect a number of otherwise-financially robust business
enterprises to fail unless we do something out of the ordinary," Mr Bonanno said.

"Some individual farms will be harder hit with production losses of over 40 per cent and
sugar content down by 20 per cent.

"We expect our submission will be endorsed by the state government and forwarded to the
federal government for urgent consideration so it can take effect this harvest season."

A spokesman for Queensland Primary Industries Minister Henry Palaszczuk said a state of
exceptional circumstance was declared only if it could be proven that conditions were both
rare and severe.

This meant the circumstances had to occur once in 20 to 25 years and have caused
substantial financial impact on an industry.

The declaration would entitle hard-hit farmers to some income support from the federal
government, interest rate relief and greater access to benefits such as Austudy and health
care cards.

Mr Bonanno said detailed economic analysis showed no cane growing area north of Townsville
would have a positive cash income this season.

Further, some farmers might go to the wall after heavy flooding on four or five separate
occasions over the past year, he said.

World sugar prices were also now below break-even level for even the most efficient
producers.

"Existing safety net arrangements are inadequate to provide for the rare circumstances in
which north Queensland can growers now find themselves," he said.

The crisis in the sugar industry could continue for at least another 18 months and the
effect would impact on communities dependent on the sugar industry.

More than 10 per cent of the area under cane would not be cut this year and yields would be
down over the remainder.

Sugar content would be below the disastrous levels of last year.

AAP rad/sd/ms/br

KEYWORD: SUGAR

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