Mackay imports sugar from Thailand

IT'S like selling ice to the Eskimos: about 40,000 tonnes of Thai sugar is being shipped into Mackay to top up dwindling reserves after a disastrous, waterlogged harvest.

Sugar Australia, which is owned by Sucrogen and Mackay Sugar Limited, is importing raw sugar to boost stores at its Racecourse refinery, which supplies the industrial and consumer sugar market and markets the CSR Sugar brand. Mackay's sugar industry had its worst year on record last year, losing up to $80million in revenue after unprecedented rainfall forced farmers to leave 1.4million tonnes of cane unharvested.

Mackay Sugar Limited chief executive officer Quinton Hildebrand said this prevented the milling company from producing enough raw sugar to meet demand from the Mackay refinery.

“At the end of last season we were unable to complete the harvest of the crop because of the wet weather so we didn't store enough sugar to meet the requirements through to the next crush,” Mr Hildebrand said.

“Sugar Australia has imported some sugar from Thailand to fill the gap.

“I believe one boatload (with about 40,000 tonnes of raw sugar) is coming – it's going to be delivered this month. It will be refined together with what we've got in the store.”

Mr Hildebrand said he believed the shipment of sugar should be enough to fill the shortage.

“It will take us through to the periods after when we expect to start crushing.”

Mackay Canegrowers chairman Paul Schembri said he didn't believe the import would have a significant impact on growers in the area. He said no-one liked seeing sugar imported but it was a result of the “unprecedented disaster” caused by prolonged rain last year.

Mr Hildebrand said about 60% of the sugar produced by Mackay Sugar last season went to Sugar Australia, which distributed it across the country and to Singapore, and the remainder when to Queensland Sugar Limited (QSL).

In February, the Daily Mercury reported Mackay's sugar industry would be slugged up to $15 a tonne of sugar for three years after QSL was forced to buy from international markets to meet supply commitments.

At the time, its chief operating officer said QSL, which marketed and sold sugar for eight milling groups including Mackay Sugar, was forced to buy sugar from other countries to honour sales contracts and retain customers.

QSL this week said the millers had unanimously agreed last year's weather-induced shortfall had cost QSL $105.5million.

“QSL has previously determined and advised the amount of each supplier's share of these costs,” the company said in a statement. “This has now been accepted and is seen as an equitable way to distribute these costs given the circumstances.”

(Source: http://www.dailymercury.com.au/story/2011/04/06/thai-takeaway-mackay-imports-sugar-from-thailand/)