Sugar Industry

AusLralla's sugar lndusLry ls one of Lhe lowesL cosL producers and Lhey ofLen rank as Lhe second or Lhlrd
largesL exporLer afLer Lhe LC and 8razll
1
ln 2009 AusLralla's sugar lndusLry generaLed revenues of $218
Auu
2
and Lhe counLry exporLed 333 mllllon Lonnes of Lhe 433 mllllon Lonnes produced
3
1he ma[or
exporL markeLs by volume are 8epubllc of korea lndonesla !apan and Malaysla
4
Sugar prlces have
fallen beLween ____ and ___ slnce Lhey peaked ln !anuary 2010 (LxhlblL ___)
Sugarcane ls grown ln hlghralnfall areas along Lhe easLern coasLllne Cueensland accounLs for abouL
93 of AusLralla's raw sugar producLlon Cueensland Sugar LlmlLed (CSL) markeLs and sells sugar from
Cueensland sugar producers 1hey use bulk markeLlng power Lo leverage beLLer prlclng deals for
AusLrallan sugar ln Lhe world markeL 8efore !anuary 2006 all growers had Lo sell Lhelr sugar Lo CSL ln
2006 Lhe Sugar lndusLry AcL was revlewed and Lhe lndusLry deregulaLed uesplLe Lhls deregulaLlon Lhe
ma[orlLy of growers declded Lo reLaln group markeLlng arrangemenLs wlLh CSL





AusLralla's share of world sugar producLlon ls abouL 30 and so Lhey do noL play a ma[or role ln
deLermlnlng sugar prlces
3



hLLp//wwwanragovau/Loplcs/agrlculLure/sugar/lndexhLml#maln_envch

hLLp//wwwanragovau/Loplcs/agrlculLure/sugar/lndexhLml#key_char

hLLp//wwwanragovau/Loplcs/agrlculLure/sugar/lndexhLml#howmuch

1
hLLp//wwwfaoorg/uCC8L/003/x0313L/x0313e04hLm
2
hLLp//wwwasmccomau/conLenLasp?lu18
3
hLLp//wwwasmccomau/conLenLasp?lu18
4
hLLp//wwwnfforgau/commodlLlessugarhLml A8A8L AusLrallan CommodlLy SLaLlsLlcs 2009
3
hLLp//wwwlblsworldcomau/lndusLry/defaulLaspx?lndld109
hLLp//wwwarLlcleshuborg/arLlcle/39928/SugarCaneCrowlnglnAusLrallalndusLryMarkeL8esearch
8eporLnewmarkeLreporLpubllshedhLml
hLLp//wwwlrrsaorgau/L88_SC8ahLm#1he Modern lndusLry
hLLp//wwwfaoorg/uCC8L/003/x0313L/x0313e04hLm
hLLp//wwwlblsworldcomau/lndusLry/defaulLaspx?lndld29
hLLp//wwwsugarausLrallacomau/lndusLryaspx?conLenLnaLuralroducL

More Lhan sugar growlng farms operaLe along AusLralla's easLern seaboard Whlle Lhe average
slze of a cane farm ls hectares some are ln excess of hectares Whlle Lhere are sLlll a number
of smaller farms average farm slze ls lncreaslng each year as Lhe number of growers conLracLs and area
farmed by Lhelr cane farmlng buslness expands 1hls consolldaLlon ls made posslble by advances ln
Lechnology and whlle some corporaLe companles have esLabllshed large cane farmlng operaLlons Lhere
are sLlll some 6 cane growers ln AusLralla 1he AusLrallan cane lndusLry produces m||||on
tonnes of cane per year whlch when processed equaLes Lo around m||||on tonnes of sugar

1he lndusLrys focus ls squarely on lLs lnLernaLlonal compeLlLlveness because mosL sugar ls exporLed and
Lhere ls no domesLlc supporL prlce or subsldles
Sugar MarkeLlng 1rade ollcy
1he Cueensland sugar lndusLry has beneflLed Lhrough lLs slngle desk approach Lo markeLlng whlch
provldes Lhe ablllLy Lo manage supply obLaln premla and provlde Lransparency ln prlclng lL has been
predlcaLed LhaL sLaLuLory markeLlng arrangemenLs wlll be removed when Lhe Sugar lndusLry AcL ls
revlewed ln 2006 1here ls Lherefore a need Lo ensure LhaL new arrangemenLs maxlmlse lncome for Lhe
lndusLry reLaln beneflLs of cenLrallsed markeLlng and allow parLlclpanLs flexlblllLy ln producLlon and
dellvery 1he world markeL for sugar ls corrupLed by domesLlc supporL pollcles ln overseas counLrles and
Lrade barrlers 1he world food lndusLry ls becomlng more demandlng wlLh requlremenLs for LraceablllLy
and guaranLees of envlronmenLally susLalnable pracLlces ln producLlon
Sugar markeLer Cueensland Sugar LlmlLed (CSL) coordlnaLes a group markeLlng servlce Laken up by
mosL of Lhe AusLrallan lndusLry whlch uses Lhe bulk markeLlng power Lo leverage beLLer deals for
AusLrallan sugar on Lhe lnLernaLlonal markeL up unLll 2006 AusLralla en[oyed a 'slngle desk'
arrangemenL where all sugar was compulsorlly acqulred by CSL 1hls was deregulaLed on 1 !anuary
2006 however Lhe ma[orlLy of growers reLaln group markeLlng arrangemenLs wlLh CSL whlch uses Lhe
bulk markeLlng power Lo leverage beLLer deals for AusLrallan sugar on Lhe lnLernaLlonal markeL
Cb[ecLlve
1o ensure LhaL Cueensland sugar producers maxlmlse reLurns by efflclenL markeLlng and selllng of sugar
and a falr world markeL place

Where ls lL grown?
Cane growlng and sugar producLlon has been around for hundreds of years ln AusLralla lL's been a
caLalysL for Lhe developmenL of many coasLal communlLles and underplns Lhe economlc sLablllLy of
many rural Lownshlps Lo Lhls day
More Lhan 4000 sugar growlng farms operaLe along AusLralla's easLern seaboard Whlle Lhe average
slze of a cane farm ls 100 hecLares some are ln excess of 1000 hecLares Whlle Lhere are sLlll a number
of smaller farms average farm slze ls lncreaslng each year as Lhe number of growers conLracLs and area
farmed by Lhelr cane farmlng buslness expands 1hls consolldaLlon ls made posslble by advances ln
Lechnology and whlle some corporaLe companles have esLabllshed large cane farmlng operaLlons Lhere
are sLlll some 6000 cane growers ln AusLralla 1he AusLrallan cane lndusLry produces 3233 mllllon
Lonnes of cane per year whlch when processed equaLes Lo around 433 mllllon Lonnes of sugar
1he lndusLrys focus ls squarely on lLs lnLernaLlonal compeLlLlveness because mosL sugar ls exporLed and
Lhere ls no domesLlc supporL prlce or subsldles
Where does AusLrallan sugar go?
* LxporL (80)
* Austra||a |s one of the wor|d's |argest exporters of raw sugar Depend|ng on seasona| product|on
var|ab|||ty Austra||a norma||y ranks as the second |argest exporters of raw sugar after 8raz|| We sell
malnly Lo LasL Asla Chlna lndonesla !apan korea Malaysla 1alwan Lhe uSA and new Zealand
AusLralla's capaclLy Lo sLore over Lwo mllllon Lonnes of sugar ln a neLwork of bulk porL Lermlnals allows
lL Lo supply cusLomers LhroughouL Lhe year Success has been bullL on worlds besL pracLlce ln growlng
producLlon handllng and markeLlng Many of Lhe world's ma[or raw sugar lmporLers prefer Lhe
AusLrallan producL because of lLs repuLaLlon for quallLy lnnovaLlon and servlce 1he lndusLry's hlgh
markeL share and longsLandlng cusLomer relaLlonshlps reflecL lLs efflclency rellablllLy and cosL
compeLlLlveness vlrLually all of AusLralla's exporLs come from Cueensland whlch exporLs around 80
of lLs ouLpuL Cueensland sugarcane ls prlmarlly processed lnLo raw sugar whlch ls sold dlrecLly Lo
reflnerles (noL Lhrough Lrade houses) on a cosL lnsurance and frelghL (clf) basls
* uomesLlc use (20)
* 1he 20 of Lhe raw sugar produced ln AusLralla for domesLlc consumpLlon ls reflned locally and
processed lnLo whlLe sugar llquld sugar producLs and oLher speclallLy producLs such as golden syrup
Lreacle coffee sugar cubed sugar and rum nSW producLlon ls sold malnly on Lhe domesLlc markeL

lnLernaLlonal repuLaLlon for cuLLlng edge Lechnology susLalnable cane growlng
1he AusLrallan sugar lndusLry ls noL [usL one of Lhe world's mosL efflclenL and lnnovaLlve producers and
exporLers of sugar lL ls also Lhe leader ln Lhe adopLlon of susLalnable farmlng pracLlces
Cane growlng and sugar producLlon underplns Lhe economlc sLablllLy of many coasLal communlLles lL ls
Lhe soclal fabrlc LhaL has woven lLself Lhrough Lhe developmenL of coasLal Lownshlps up and down Lhe
coasL
WlLh advances ln research and Lechnology susLalnablllLy does noL necessarlly mean reduced
producLlvlLy and efflclency Crowers are proud of Lhelr envlronmenLal performance and adopLlon of
more susLalnable farmlng pracLlces All sugarcane ln AusLralla has been harvesLed mechanlcally slnce
1979 and all sugar handled ln bulk slnce 1964
ln facL cane growers are managlng Lhelr solls ln a whole new way now LhaL research and developmenL
has shown subsLanLlal proflLablllLy and envlronmenLal galns can be made 1here has been a blg swlng
Lowards conservaLlon Llllage sysLems llke no and mlnlmum Llll whlch cuLs down Lhe number of Llmes a
farmer dlsLurbs Lhe soll Leavlng more planL resldue undlsLurbed on Lhe surface reduces surface waLer
runoff and soll eroslon Less frequenL Llllage also reduces Lhe amounL of energy farmers need Lo run
LracLors reduclng cosLs and savlng resources
Sugar markeLlng
Sugar markeLer Cueensland Sugar LlmlLed (CSL) coordlnaLes a group markeLlng servlce Laken up by
mosL of Lhe AusLrallan lndusLry whlch uses Lhe bulk markeLlng power Lo leverage beLLer deals for
AusLrallan sugar on Lhe lnLernaLlonal markeL up unLll 2006 AusLralla en[oyed a 'slngle desk'
arrangemenL where all sugar was compulsorlly acqulred by CSL 1hls was deregulaLed on 1 !anuary
2006 however Lhe ma[orlLy of growers reLaln group markeLlng arrangemenLs wlLh CSL whlch uses Lhe
bulk markeLlng power Lo leverage beLLer deals for AusLrallan sugar on Lhe lnLernaLlonal markeL
CSL admlnlsLers pool prlce arrangemenLs manages Lhe lndusLry's seven bulk sugar Lermlnals and
manages sugar prlce and forelgn exchange exposure Lo opLlmlse reLurns Lo growers and mlllers

lndusLry bodles
* CAnLC8CWL8S grower peak body
* Sugar 8esearch uevelopmenL CorporaLlon (S8uC) fundlng research
* 8SLS LlmlLed (research exLenslon)
* Cueensland Sugar LlmlLed (CSL) markeLlng
* Sugar 1ermlnals LlmlLed (S1L) sLorage
* AusLrallan Sugar Mllllng Councll (ASMC) mllllng
AcLlve lnvolvemenL ln drlvlng Lhe fuLure
Cver 80 of Cueensland sugarcane growers are members of Lhe hlghly successful lobby represenLaLlon
and servlces group CAnLC8CWL8S 8ased ln 8rlsbane CAnLC8CWL8S AusLralla represenLs Lhe
lnLeresLs of cane growers AusLralla wlde whlle servlce cenLres based ln ma[or cane growlng reglons up
and down Lhe coasL provlde a focus on reglonal lssues and servlces
World sugar producLlon has undergone masslve changes slnce 1970 parLlcularly Lhe emergence of 8razll
as a domlnanL force Lhe growLh of Lhe Luropean unlon as a subsldlsed producer Lhe growLh of 1halland
and Lhe decllne of Cuba AlLhough Lhe AusLrallan lndusLry developed under a regulaLed sysLem whlch
soughL Lo maLch producLlon wlLh assured markeLs lL ls now one of Lhe leasL proLecLed sugar producers
ln Lhe world

hLLp//wwwcanegrowerscomau/page/lndusLry_CenLre/abouLLheausLrallansugarcanelndusLry/
hLLp//wwwfaoorg/docrep/011/al482e/al482e07hLm

hLLp//wwwfaoorg/uCC8L/003/x0313L/x0313e04hLm

MLCAn WCCuWA8u Cne Llme naLlonal M Max Menzel has been growlng sugar cane ln Lhe 8urdekln
for nearly 13 years Pe belleves LhaL lf an overseas company Lakes over local mllls Lhe lndusLry wlll be
spolled
MAx MLnZLL lL doesnL work a blg company headquarLers ln Sydney or Shanghal or anywhere else
ownlng Lhese mllls because Lhey [usL Lry and plunder Lhe proflLs ouL of lL aL Lhe expense of runnlng Lhe
asseLs down Lo geL Lhe mlghLy dollar ouL of lL and Lheyre desLroylng Lhe communlLy



Queensland Sugar Limited (QSL) provides cost savings to Iarmers and millers. Since
Queensland produces 95 percent
6
oI Australia`s sugar, QSL direct marketing to customers were
better able to average out customer speciIications.

6
hLLp//wwwfaoorg/uCC8L/003/x0313L/x0313e04hLm
Also helping Australia 's sugar industry overcome the most unstable commodity market in the
world is Queensland Sugar Limited (QSL), a marketing monopoly that buys and sales the
nation's sugar through a single desk marketing arrangement.
Because oI its size, QSL is able to wield signiIicant control over the domestic market and
lucrative sugar markets in the Asia/PaciIic region

Currency conslsLency ln sLaLs (uSu vs Auu quoLes)
Should CSL be lncluded? lf so maybe llnk somewhere else ln case? 1alk abouL deregulaLlon of CSL
hLLp//wwwLhebloenergyslLecom/arLlcles/326/ausLrallasugarannualreporL2009
hLLp//wwwfasusdagov/galnflles/200904/146347674pdf

hLLp//wwwasmccomau/conLenLasp?lu17


hLLp//wwwcanegrowerscomau/page/lndusLry_CenLre/abouLLheausLrallansugarcanelndusLry/
Maybe lnclude (exhlblL ____ shows sugar prlce flucLuaLlons of fuLures conLracL or raw sugar prlces over
Lhe pasL x yrs)???
!M sugar prlce assumpLlons Aprll 2010 for Lhelr sugar L8l1uA and 8evenues

March 2010 Annual resenLaLlon








Sucrogen has been able Lo compeLe wlLh 8razll on cosL (exhlblL ___)