Less cane to be sent to Mossman Mill under new agreement
Published Tuesday April 15 2015, 10:20am
Mackay Sugar and MSF Sugar today entered into an agreement to toll crush up to 250,000 tonnes of Mackay Sugar contracted cane at the Tableland Mill in the 2015 season.
The agreement, which is still subject to satisfaction of a number of conditions, will see the Tablelands cane transported to MSF Sugar’s Tableland Mill for crushing as opposed to Mackay Sugar’s Mossman Mill.
Mossman Mill suffered multiple problems with machinery and logistics last year after Mackay Sugar’s and MSF’s original deal, which tasked the mill with a huge 1.2 million ton crushing contract.
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Mossman Mill has been undergoing a capital works and maintenance program during the offseason.
Mackay Sugar CEO Quinton Hildebrand said the tolling agreement allows MSF Sugar to utilise their current spare capacity at the Tableland Mill.
“Mackay Sugar will be responsible for the marketing of sugar and molasses toll crushed by MSF Sugar and will have sole responsibility for cane payments to growers under the collective Cane Supply Agreement.
Mr Hildebrand said that Mossman Mill would not cut back shifts or employment, but will instead run a shorter crushing season.
“We’ll be running a season that is shorter by about five weeks this year, so that’s a shorter season for the mill and for the Tableland growers.
“It’s really a win-win, the Tableland Mill will be able to utilise their spare capacity and we’re happy to have a more manageable crop this year.
MSF Sugar CEO Mike Barry said that the agreement meant Tableland Mill would be used to its full potential.
“Tableland Mill will revert back to a 7 day operation in 2015 and is looking forward to working with Tableland region growers to mill their cane in an efficient manner.”
Mackay Sugar’s Mossman Mill is expected to handle a crop of 1 million tonnes in the 2015 season and Tableland Mill anticipates a crop of 650,000 tonnes; the two mills will commence the crushing season on 11 May and in the second week of June respectively.
“Mackay Sugar will now engage with Tablelands Canegrowers to determine the cane to be crushed under the toll crushing agreement to optimise the logistics for both the Tableland and Mossman mills,” Mr Hildebrand said.
Another effect of the agreement is a reduction in the tonnage of cane being shipped down from the Tablelands along the Rex Range by about a third.
Julatten and Mount Molloy Association of Residents and Ratepayers (JAMARR), which argues the heavy B-Double trucks used to ship the cane pose safety risks to roadside communities, welcomed the move.
JAMARR member John Brisbin said they were ‘overjoyed’ that there would be less cane coming down the range but said there were no benevolent reasons behind the agreement.
“We’ve always said the fundamental issue here is the tonnage coming down the range - so the fact there’s one third less being shipped is something we’re overjoyed at,” Mr Brisbin said.
“But we want to be clear that the companies haven’t done this out of conscience - it’s because Mossman Mill has been breaking down.
“Mackay Sugar has overstepped their bounds by trying to push so much cane through that old mill.
“This agreement is only for a year - once Mossman Mill is fixed, that cane will start coming back down in the same volumes as before.
“We’re not at all impressed with Mackay Sugar and MSF.”