Mackay Sugar and Tableland Canegrowers Limited has entered into Cane Supply Agreements with cane growers on the Atherton Tablelands, which will result in approximately 700,000 tonnes of cane being supplied from the Atherton Tablelands to Mackay Sugar’s Mossman Mill from 2014.

In response to an approach by the Tablelands Canegrowers, Mackay Sugar has agreed to accept the cane for crushing at its Mossman Mill.

According to Mackay Sugar Chief Executive Officer Quinton Hildebrand, the outcome fulfils the objective of bringing the Mossman Mill to capacity and marks a major step in Mackay Sugar’s strategy to bolster the future of the mill.

“As part of this agreement, the sugar produced from this cane will be marketed through industry export marketing body, Queensland Sugar Limited.

“The additional tonnage to be delivered to the Mossman Mill will require the mill to move from a 5-day week crushing program to a continuous crushing program over a longer season,” Mr Hildebrand said.

Mackay Sugar will upgrade Mossman Mill as part of its overall milling operations capital and maintenance program in 2013 and 2014, delivering increased plant reliability and the capacity to handle the additional tonnage. This will require capital expenditure of approximately $4 million on the mill and transport infrastructure.

Mr Hildebrand also said the Company is aware that this will require a marked change in the current operations of the existing Mossman growers and will communicate with existing growers and their representatives to work through the changes in anticipation of the 2014 season.

“Notwithstanding this development, Mackay Sugar is prepared to work with Tableland Mill owner, Mitr Phol, on ways to progress additional cane development within the Tablelands area in order to realise increased sugar production across both of the region’s mills over the coming years.

“The Queensland sugar industry has the potential to capitalise on Asia’s enduring demand for Australian sugar and Mackay Sugar will continue to invest in cane supply development opportunities to maintain a key role in meeting this demand,” Mr Hildebrand said.