Funds were contributed to complete the due diligence process into the acquisition of the existing Mill and the adjoining land from Mackay Sugar Limited. The mill acquisition was successfully completed on 5 July 2019 from which time Far Northern Milling took over full operation of Mossman Mill.
The objectives as a result of the Mill acquisition are to:
The sugar cane which is crushed into around 4 to 5 million tonnes per annum of sugar worth around $2.5 billion dollars, mostly through export sales (around 80%). The industry, which is 95% based in Queensland, employs over 16,000 people and supports numerous towns and cities along the eastern seaboard.
It is highly export-oriented, and it exports into markets that are heavily influenced by government policies in the major producing and consuming countries. Demand growth is also constrained by health concerns and opportunities for alternative sweeteners. On the production side, it is constrained by alternative land-use opportunities, by environmental impacts and by ongoing structural issues in its supply chain.
Recently the industry has experienced difficulties and depressed market prices due to: