ANNUAL REVIEW 2012/2013 A STRONG, COLLABORATIVE COMMUNITY

Transcription

1 ANNUAL REVIEW 2012/2013 A STRONG, COLLABORATIVE COMMUNITY

2 Australian Sugar Milling Council (ASMC) Cooktown Daintree Mossman MOSSMAN Cairns Mareeba TABLELAND Innisfail Mourilyan SOUTH JOHNSTONE TULLY MACKNADE Lucinda Ingham VICTORIA MULGRAVE Townsville PIONEER Perth INVICTA INKERMAN WA KALAMIA Darwin NT SA QLD NSW Adelaide Sydney VIC Canberra Yarraville Melbourne TAS Area Enlarged Brisbane The Australian Sugar Milling Council (ASMC) is a voluntary organisation, established in 1987 to represent Australian raw sugar mill owners. Mission statement ASMC exists to drive a profitable and sustainable sugar industry through dynamic leadership, strong and effective advocacy and services that build value for our members, and the broader industry. Our shared vision is for a growth industry that is: successfully competing in the world market through profitable businesses successfully diversified into sugarcane products using world class research and development recognised as global leaders in environmental sustainability built upon dynamic and cooperative industry leadership. Core values that underpin the philosophies and operating style of the ASMC team are: the courage to drive and respond to change integrity in what we say and do energy, enthusiasm and growth accountability relationships built on respect. Proserpine PROSERPINE MARIAN FARLEIGH Mackay RACECOURSE MILL & REFINERY PLANE CREEK ASMC members Bundaberg Sugar Ltd Chairman: Colin Stitt Chief Executive Officer and ASMC Director: Ray Hatt Mills: Millaquin, Bingera Rockhampton QUEENSLAND Sugarcane areas Sugar mills Sugar refineries Bulk sugar terminal ports BINGERA Bundaberg ISIS CENTRAL MILLAQUIN MILL & REFINERY MARYBOROUGH Maryborough Gympie Nambour BRISBANE ROCKY POINT Isis Central Sugar Mill Company Limited Chairman: Peter Russo Chief Executive Officer and ASMC Director: John Gorringe Mackay Sugar Limited Chairman: Andrew Cappello Chief Executive Officer: Quinton Hildebrand ASMC Directors: Quinton Hildebrand, Andrew Cappello, Bill Phillips-Turner Mills: Farleigh, Marian, Racecourse and Mossman MSF Sugar Limited Chairman: Isara Vongkusolkit Chief Executive Officer and ASMC Director: Mike Barry Mills: Mulgrave, South Johnstone, Tableland, Maryborough Tully Sugar Limited Chairman and ASMC Director: Dick Camilleri Chief Executive Officer: Alick Osborne NEW SOUTH WALES Grafton BROADWATER HARWOOD MILL & REFINERY Coffs Harbour CONDONG Lismore Wilmar Sugar Australia Limited (previously Sucrogen) Executive General Manager North Queensland: John Pratt General Manager Operations: Mike McLeod ASMC Directors: John Pratt, Russell Abotomey Mills: Macknade, Victoria, Invicta, Pioneer, Kalamia, Inkerman, Proserpine, Plane Creek Full members profiles can be found on the inside back cover.

3 Contents 9 The importance of ports to our business 16 A significant policy year for sugar milling 25 The sugar industry s strong collaborative community 30 Three years work culminate in world-leading model for sugar research and innovation From the Chairman and CEO The Milling Council Team 2 Industry Diversification Season In Review 4 Marketing and Trade 22 Farming 6 Sugar in the Community 24 Harvesting and Transport 8 Refining and Nutrition 28 People and Safety 10 Research, Development and Extension Reform 30 Raw Sugar Milling 14 Photography Competition 32

4 Chairman s Comments 2012 was marked as a year for consolidation, if not outright recovery, for the Australian sugar industry s fortunes. And once again, the industry was true to its nature, with a degree more variability in production than expected. From Proserpine north, the harvested crop was somewhere between 5 and 10% down on pre-season forecasts. Mackay was up slightly on estimate, and an excellent crop in the Bundaberg region saw Isis Mill deliver a record crush total. However, Maryborough s crop was down and New South Wales was again impacted by rain and floods. The overall yield for the year was 30.4 million tonnes. Achievements During 2012 and into 2013, the Milling Council has worked with members on several key areas including: Research, Development and Extension reform carbon policy and ensuring milling companies have access to government funding under the Clean Energy Technology Program natural resource management initiatives such as CANEGROWERS Best Management Practices Program and examining the opportunities with the recent changes to the Vegetation Management Act in Queensland enhanced industry safety performance, and communication of nutritional information about sugar and correcting the misinformation often propagated by the media. All of these initiatives are covered elsewhere in this Review, but there is one major achievement I particularly want to emphasise. Research, Development and Extension reform and formation of Sugar Research Australia While I am confident this will be the last year we discuss the reform of Research, Development and Extension (RD&E), as an industry, we still should not lose sight of the reform program s significant achievements that will fundamentally alter the investment, organisation and delivery of sugar research in Australia. These include: agreeing a package of reforms that will ensure the confidence of our research providers, including reform of BSES Limited, in preparation for Sugar Research Australia as the single industry-backed research organisation, funded by a compulsory levy shared equally between growers and mill companies developing and submitting to Federal Government a package of governance documents and arrangements to form Sugar Research Australia promulgating the package industry-wide and achieving overwhelming commitment and support submitting a final Federal Government application for the formation of Sugar Research Australia. We have all invested significant money, time and energy in the reform effort, and it is pleasing to be through a major phase, and moving well and truly into operations. From here on, ASMC will settle into the role of helping identify priorities, contribute to the development of the RD&E Strategic Plan and National Strategy, and hear from Sugar Research Australia on the results of RD&E investment. Joint advocacy delivering results The past couple of years have seen unprecedented cooperation in our industry across the growing and milling sectors in terms of working together in the government policy arena. I believe this concerted approach has been the key to achieving the goal of a single levy shared equally between millers and growers to fund Sugar Research Australia. Indeed the industry sent a powerful message of its strength and cohesiveness as demonstrated by the results of the 2012 Sugar Poll. The Board of the Milling Council recognises the importance and value of effective, high quality representation and, through our expanded and experienced team, looks forward to continuing this single industry effort through the Australian Sugar Industry Alliance in the coming year. Resilience The relatively recent past has seen movements in the political arena, with a change in government in Queensland after essentially 20 years and the bedding down of a relatively new government in New South Wales. At the federal level, there is ongoing change with the Federal Election results from September 2013 which is likely to bring some significant policy changes. With the 2013 crush well progressed, the total crop estimate has been relatively constant, with some flood damage in areas, and a still unknown impact of yellow canopy syndrome through the Herbert and Burdekin areas, as well as some upside in areas to the north. The floods in Southern Queensland and Northern New South Wales have put paid to any hopes of better than average crops in those areas. As we deal with the 2013 season and begin preparations for better outcomes next year, the well-regarded resilience of Australian sugar industry stakeholders will once again need to be relied upon. Thankfully, we are a strong and collaborative community, with many years of longevity behind us. I would like to thank our members for their ongoing support and our CEO and staff for their tireless efforts to promote the interests of the industry. Quinton Hildebrand Quinton Hildebrand Chairman Our Milling Council Team Dominic Nolan Chief Executive Officer Dominic maintains responsibility for the Milling Council s overall operations. Implementation of the sugar industry RD&E reform, including industry interaction with Sugar Research Australia, is the major focus, along with government engagement at all levels and other collaborative efforts around the Australian Sugar Industry Alliance (ASA). Rosie Brennan Administration and Project Officer Rosie is a first point of contact with the Milling Council. Working three days a week, and in collaboration with Emma, Rosie provides for the efficient functioning of the Milling Council office and communication with our members. Jim Crane Senior Executive Officer, Industry and Communications Jim s portfolio reflects the broad range of issues which confront the sugar industry. Apart from Jim s primary tactical role responding to the myriad of day to day matters, he coordinates the Milling Council s Technical Committee and Industry Development Committee. Jim represents the Milling industry on government working groups related to Environmental and Transport matters and carries a broad resource management role. 2

5 CEO s Report Our purpose at the Australian Sugar Milling Council (ASMC) is to drive a profitable and sustainable sugar industry through dynamic leadership, strong and effective advocacy, and services that build value for our members and the broader community. Two key words here are profitable and sustainable. As an advocacy-based organisation, we take an active interest and role in all aspects of the regulatory and policy environment that potentially impact our members profitability or sustainability. We operate under the broader vision around industry growth, competing on the global stage, successful diversification, using world class research and development to ensure leadership in sustainability across environmental, social and economic drivers, and importantly through a collaborative and dynamic industry. Milling Council s five goals The Milling Council identifies five core goals: 1. Industry responsive government policies and programs 2. Streamline and improve regulatory compliance 3. Continual improvement in industry performance 4. Enhanced trade access and market competiveness, and 5. A sugar industry valued for its environmental, social and economic impacts. The first three goals broadly respond to our advocacy role our raison d être ensuring government policies and programs recognise the contribution of the Australian sugar industry to regional and rural communities through employment, innovation, training and skills development, and its financial contribution through local economies and export earnings. Governments at a local, state and federal level have a direct impact on our profitability and sustainability through their policies and programs, the developing regulatory framework and ongoing compliance costs. The Milling Council s efforts are targeted at improving the business environment through positively influencing these government impacts, and improving our performance within that framework. The recent Federal Government Clean Energy Technology and Renewable Energy Target programs, the Queensland Government Land Audit, interface on rail and road infrastructure, and electricity and water pricing are all areas for our active advocacy, and there is a large ongoing work program across these areas. Without doubt a major effort for the Milling Council and the industry in 2012, and leading into 2013, was driving the necessary changes to achieve improved performance and efficiencies in the area of RD&E, under our third goal of improving industry performance. Australian Sugar Industry Alliance and reform Under the banner of the Australian Sugar Industry Alliance, the partnership between growers and mills, with key members CANEGROWERS and the Milling Council, has never been stronger to achieve a common reform agenda. As the ASMC Chairman has reflected, the collective level of energy and resources required to drive a reform program of this magnitude has been a significant commitment together with the broader industry. It is imperative to move this research reform program onto a stable operational platform. Sugar Research Australia s new board has been appointed and work is well underway by the new company. This has seen the Milling Council and the Australian Sugar Industry Alliance revert to the ongoing role of identifying research investment and strategic priorities, and supporting the efforts of Sugar Research Australia in implementing their strategic plan. Trade and market access is a further extension of ASMC s advocacy role, working with the Australian Government and international counterparts is potentially a big year for the trade agenda, with the Trans Pacific Partnership a major focus. It is an opportunity to redress the ills of the Australia-United States Free Trade Agreement, the only such free trade agreement either country has ever signed that excludes sugar. Industry efforts once again are concentrated under the banner of the Australian Sugar Industry Alliance and the Trade Committee. Our fifth goal revolves around demonstrating and communicating the commitment and value of the Australian sugar industry to social, environmental and economic outcomes, particularly at a regional level. Initial efforts, developing under the Nutrition Strategy led by Sugar Australia, aim to develop and make available fact-based nutritional information for the benefit of health professionals, and to correct the misinformation about sugar that can sometimes permeate media coverage. Dr Mary Harrington of Sugar Australia expands on this further on page 29. Enhancing the team s capacity and coverage The Milling Council team works closely with members at all levels to understand and discuss policy and business priorities and maintain a strong two-way flow of information. Our highly committed and dedicated team has welcomed two new people this year to our team of seven to enhance our capacity and coverage Jacqui Willcocks in Policy and Government Relations and Cheryl Daley in Safety and Workplace Relations. However, one of the biggest changes for us this year was Peter Warren finishing after 24 years as Manager Industrial Relations. Peter s corporate knowledge, and broad industry contacts and understanding are irreplaceable and he will certainly be missed. Forthcoming challenges With the mills well into the 2013 crush as this report is published, the ASMC looks forward to another challenging year and strengthening representation for our members. Next year s Annual Review will see a new Federal Government in place, a new single sugar research and research management company, and a host of government and business-inspired challenges and opportunities for the Australian sugar milling sector. We look forward to meeting these demands and continuing our strong advocacy work for this industry. Dominic Nolan Dominic Nolan Chief Executive Officer Cheryl Daley Executive Officer, Safety and Workplace Relations Cheryl has recently joined the Milling Council and is looking forward to influencing legislation and being an information conduit for members on some of the emerging issues in People and Safety functions and moving with the industry to the next level of safety performance and best practice. Sharon Denny Senior Executive Officer, Government and Business Development Sharon s role is to develop a policy pathway for future industry development and negotiate the challenges and opportunities emerging from government (policies), technology developments and industry innovation. Sharon coordinates the industry s Strategic Policy Committee and the Energy and Environment Management Network. Emma Roberts Office Manager Emma coordinates the financial and administrative operations, working closely with staff and communicating with members. As a main point of contact in the office, Emma is known to many throughout the milling industry. Jacqui Willcocks Executive Officer, Policy and Government Relations Jacqui has recently joined the Milling Council and will use her public sector experience to provide effective support for a range of policy, advocacy and membership services for ASMC and members. 3

6 Photography: Wilmar Sugar 2012 Season In Review A mixed result The 2012 sugarcane season could best be described as running late and disappointing if you were looking at the far north, Herbert-Burdekin, Central Queensland or New South Wales districts. Yet in the region around Bundaberg and Childers a record crush was recorded 1,505,400 tonnes at the Isis Mill at Childers, and the highest throughput since 2006 by Bundaberg Sugar in the south at 1,817,285 tonnes. In late May 2012, the season was shaping up well with the starting forecast from mills at million tonnes coming off the back of close to ideal growing conditions. Two mills were set to begin crushing in late May with most due to be operational by mid-june. Unfortunately by early August, wet weather was severely restricting operations in most regions. Only 4.6 million tonnes of sugarcane had been harvested and processed into sugar during a period which, under normal conditions, would have seen a harvest of more than ten million tonnes, or about one third of the crop. As often occurs, the weather turned from extremely wet to extremely dry. By late October we were seeing: the end of the crush in areas where the estimated crop had not been realised (causal agents being the continuing effects of Cyclone Yasi in the far north and too many cloudy days during the peak growing season early in 2012 for the Burdekin crop) very high sugar content in many regions resulting from the dry, cool conditions an industry crop estimate that had fallen to million tonnes, and just over 25% of the crop still to be harvested. In mid-december the end of the season arrived with Isis Mill completing its record 1,505,400 tonnes crush. While the crop itself had been disappointing, in the end, sugar production in Australia had climbed back above four million tonnes after two weather-affected, poor production years in 2010 and On the upside, the area of cane available for harvest appears to have stabilised after ten years of decline, with new land being planted and former cane lands returning to sugar production from forestry Managed Investment Schemes. While this additional area was estimated at 3,000 5,000 hectares, clearly some sugarcane production land continues to be lost to other crops and urban development. The area harvested for crushing in 2012 was just over 360,000 hectares. MSF Sugar s South Johnstone mill near Innisfail is one of a number of mills in Far North Queensland that has had its cane supply area enhanced by the return of MIS Forestry land to sugarcane production. Photography: Linda Duncan Looking ahead to 2013 The 2013 crop has already faced challenges with disastrous flooding in many areas, the worst hit being the Bundaberg region and through the New South Wales sugarcane growing areas. The area for harvest had been expected to increase by a further 10,000 hectares giving rise to early forecasts of a 33 million tonnes crop for By mid-april, estimates had been tempered by the effect of the floods as well as disturbing reports of crops in the far north, Herbert, Burdekin and Central regions being struck by Yellow Canopy Syndrome. Yellow Canopy Syndrome Some of the more dire predictions as to the potential impact of this yellow leaf condition in affected cane fields have been of the order of a 30% reduction in yield. The industry s agronomic community has devoted its full attention to the problem and stakeholders nervously await their determination as to the actual condition and its impacts. Growers particularly were concerned with regard to the best varieties to plant for the 2014 season, with a well understood reluctance to invest in planting if the yellow leaf condition proved transmissible through the planting process. Other impacts include a significantly diseased-looking root system for affected sugarcane plants. An additional concern is that during the harvesting process many of the affected stools of cane will be ripped out of the ground. This in turn could increase dirt loading in sugar mills during the crushing process, and further contribute to yield reductions in affected cane fields. Yellow Canopy Syndrome (YCS) has variously affected cane-fields in the Herbert and Burdekin areas during The causal factors of YCS remain a mystery and a significant research effort with extensive field trials is being coordinated through Sugar Research Australia. Photography: Sugar Research Australia Lower prices Looking to the world sugar market for inspiration is also not recommended with sugar prices trading below 20 cents per pound in futures markets out to July Combined with the strong Australian currency, this situation has sugar returns to the Australian industry dropping towards the cost of production levels. Investment continues Once again, however, mills have continued to invest strongly in factory maintenance and capacity increases and this trend is set to continue. Investment in diversification for sugar mills has also continued with Mackay Sugar Limited recently opening its $120 million cogeneration facility next to its Racecourse sugar mill and Sugar Australia s Racecourse refinery. 4

7 Industry Statistics AREA HARVESTED FOR MILLING (HECTARES) Northern 70,745 68,678 68,574 70,635 74,488 Herbert-Burdekin 121, ,033 89, , ,880 Mackay-Proserpine 106, ,796 89, , ,465 Southern 50,041 46,139 44,286 44,797 46,595 QUEENSLAND 348, , , , ,428 NEW SOUTH WALES 11,450 13,240 14,162 15,561 14,723 CANE CRUSHED (TONNES) Northern 5,314,283 3,626,646 5,970,031 5,406,675 6,160,453 Herbert-Burdekin 11,104,867 12,471,413 9,752,738 11,154,318 12,332,782 Mackay-Proserpine 8,446,425 6,697,741 6,533,232 8,124,764 8,123,242 Southern 4,220,110 3,533,503 3,520,347 3,475,400 3,554,844 QUEENSLAND 29,085,685 26,329,304 25,776,348 28,161,157 30,171,321 NEW SOUTH WALES 915,027 1,613,468 1,666,171 1,653,768 1,931,894 SUGAR PRODUCED (TONNES IPS) Northern 693, , , , ,875 Herbert-Burdekin 1,574,457 1,671,450 1,320,937 1,713,781 1,791,903 Mackay-Proserpine 1,244, , ,817 1,238,625 1,183,000 Southern 621, , , , ,492 QUEENSLAND 4,134,664 3,502,667 3,274,252 4,307,742 4,286,270 NEW SOUTH WALES 113, , , , ,198 TONNES CANE PER HECTARE HARVESTED Northern Herbert-Burdekin Mackay-Proserpine Southern QUEENSLAND NEW SOUTH WALES TONNES CANE PER TONNE IPS SUGAR Northern Herbert-Burdekin Mackay-Proserpine Southern QUEENSLAND NEW SOUTH WALES TONNES IPS SUGAR PER HECTARE HARVESTED Northern Herbert-Burdekin Mackay-Proserpine Southern QUEENSLAND NEW SOUTH WALES CCS/SUGAR CONTENT Northern Herbert-Burdekin Mackay-Proserpine Southern QUEENSLAND NEW SOUTH WALES For access to statistics for the last 10 years, go to 5

8 Photography: Bernard Milford Farming New world-class Best Management Practice Program for Australian sugarcane growers CANEGROWERS has secured $3.5 million of funding for the development and delivery of a Sugarcane Best Management Practice (BMP) program in partnership with the Queensland Government, in an outcome which will give sugarcane growers an opportunity to show they manage their industry best. The BMP project which began in early 2013 will see CANEGROWERS develop a world-class best practice system for sugarcane growing in Australia. As milestones throughout the project are met, the Queensland Government has committed to unwinding the existing regulatory controls. There is a recognition of on-farm management styles that allow for progress towards the adoption of an improved cropping system based on best practice principles. CANEGROWERS will be working with growers to develop a series of web and paper-based education and training modules covering a wide range of subjects such as integrated water system management; pest, disease and weed management; soil health and plant nutrition management; landscape and biodiversity management; crop production and harvest management; workplace health and safety; and farm business management. The practices within each module will be categorised depending on the ability to improve productivity, profitability and stewardship. Timelines and delivery June 2014 By June 2014: 1,520 growers will have completed their self-assessment of the BMP modules (75% of these coming from canegrowing areas between Mossman and Mackay) 380 growers will have achieved BMP recognition recognised prior learning and professional development will be supported under the program. The industry s published BMP techniques (and current technology) are a guideline for growing sugarcane in Australia. BMPs are continually changing as research discovers better ways, and growers continually evolve their farming practices to keep pace. Recognising sugarcane farmers have different soils, weather, and geography, BMPs are intended to be used as a guide, together with local advice, to build and improve growers own farm management systems. There are already a number of programs developed over the past 30 years and the Sugarcane BMP project will consolidate and build on this and emerging work. It will also build on the successful Reef Rescue program, and integrate with any future Reef Rescue-type initiatives. The sugar industry has worked to keep its relationships with export customers by assuring them we are currently developing a system of environmental checks and balances which is encompassed within the BMP program. The government strongly supports the industry in creating its own program, exemplified by the Queensland Government s funding of the development of the Sugarcane BMP tools. Self-regulation Agricultural industries across Australia are being told they must self-regulate, or government will regulate for them. Industry stakeholders believe the BMP system will be far more effective than regulation as it focuses on sugarcane growing and supports the environmental needs and expectations of the Australian community. If the industry wishes to steer in its own course, it must demonstrate an ability to self-regulate. The Sugarcane BMP system is a critical step in that direction. Wilmar Sugar returns Managed Investment Schemes land to cane production Wilmar Sugar has returned to sugarcane production a thousand hectares of Herbert region forestry land previously acquired under failed Managed Investment Schemes (MIS). When the land was purchased in 2011, it was covered with Cyclone-Yasi-decimated mahogany trees and took several months to prepare for cane planting. Wilmar Sugar farmed an extra 1,700 hectares of land under cane across its four milling regions during 2012, and has purchased other land which is being leased back to growers. The company is offering planting incentives to encourage new and existing cane growers to increase production. Uptake of the incentives was strong in 2012 and further incentives are available in 2013 to those growers who convert new land to cane production, or return land from which no cane crop has been harvested since the 2009 season or earlier. Wilmar Sugar plans to plant a further 850 hectares of land in the Herbert region during Facts 21 machines used to plant the land 9,000 tonnes seed cane planted Areas: Orient, Lower Stone and Lannercost region around Ingham The Tweed River winds through the NSW cane fields and while a life blood for the industry, has flooded all too regularly in recent years causing extensive crop damage. Photography: William de Maere 6

9 The Biodunder cycle More than just a complete fertiliser At one time molasses was given away, but when fermented at Wilmar Sugar s distillery at Sarina, ethanol is produced for markets in fuel, food and industry. This fermentation process produces another valued stream Biodunder. Rich in potassium, and a host of other elements, not the least of which is the 10% organic carbon, farmers have valued Biodunder as more than just a complete fertiliser. Jacqui Willcocks Executive Officer, Policy and Government Relations, ASMC I firmly believe industry holds the key to an innovative and productive agricultural sector which is sustainable and profitable in the long term, says Jacqui. Jacqui recently joined the ASMC as Executive Officer, Policy and Government Relations and hopes to use her public sector experience to provide effective support for a range of policy, advocacy and membership services for ASMC and its members. Although Jacqui trained as a scientist, she has worked as both a scientist and policy officer in both the State and Commonwealth Government for more than 20 years. Her primary areas of expertise in those roles included climate change and agriculture. Sustainably and responsibly managing Biodunder Its storage and distribution is resource intensive. Many millions of dollars have been spent in securing storage in large ponds with specialised covers, protecting the product from rainfall dilution. Using sophisticated technology, an almost limitless range of nitrogen, potassium, phosphorous and sulphur blends are produced. Via a fleet of contractor applicators, growers from Carmila to Giru can arrange their entire fertiliser program with a phone call. Employing cutting edge equipment, capable of variable application, and the production of detailed nutrient application maps, this application fleet enables growers to maximise productivity, responsibly. With the return to the field of Biodunder fertiliser, the sustainability cycle continues to turn. Jacqui s career began as a pasture agronomist with the Queensland Department of Primary Industries, researching whether new seasonal forecasting tools could help the grazing industry avoid the devastating impacts of droughts. This assessment of climate impacts on grazing helped her in her policy role in the Federal Government in Canberra, where she provided advice to government on climate change science and adaptation. Back in Queensland, she moved around a number of Queensland Government departments, but her work remained focused on climate change adaptation and reducing greenhouse gases in the land sector. Most recently Jacqui worked on the Queensland Agricultural Land Audit which gave her a good insight into production issues for agriculture across Queensland. Jacqui is looking forward to working with the sugar industry, which holds so much promise in both renewable energy and sustainability issues more broadly. Another large tract of caneland once again being cultivated after a failed MIS Forestry planting of trees - this time in Wilmar Sugar s Herbert River mills catchment. Photography: Wilmar Sugar 7

10 Photography: Linda Duncan Harvesting and Transport Transport costs are growing for the Australian sugar industry and at a disproportionate rate. The industry is heavily reliant on rail, truck and port transport throughout its value chain as reflected through extensive investment across the range of infrastructure. However, payback on this investment is outside typical government cycles ranging from years. To invest with this kind of foresight, industry requires genuine and committed policy from successive governments. The industry has a significant impact on the safety of Queensland roads between June and December each year, keeping the equivalent of 18,000 25,000 heavy trucks off the road. Critically, this is during peak tourism season. However, there is no acknowledgement of the unique service or community benefit realised as a result of this investment. Cost recovery of this type of investment is delivered over no less than 50 years and so significant planning horizons, with far greater policy certainty, are required to continue to extend this level of investment. Instead, the industry continues to confront a range of changes to regulation and legislation around transport and the chain of responsibility that results in additional costs to the sugar industry, which are eroding the industry s international competitiveness. Urban development is also increasingly impacting on all modes of transport in sugar growing regions. Sub-division approvals, throughout regional Queensland, give little to no consideration for transport to and from factories. While this issue was particularly intended to be addressed through SSP1/92 in a review scheduled for 2012, the Strategic Cropping Policy was prioritised instead. This is a critical area of policy that needs review. Challenges for our road transport There is an overwhelming view in the industry that the capacity to use larger trucks, in every region, would fundamentally improve the transport costs for the industry. This includes sugarcane from farm siding to the mill, and sugar from the mill to the storage terminal. Similarly, appropriate road planning to enable sufficient infrastructure to accommodate larger vehicles (i.e. at receival), and dedicated pocket road train corridors are essential. There also needs to be a flexible process to support innovative heavy vehicle design. In some regional areas, there is a need to transport cane through the city or township, resulting in an increased number of trucks in a high density road and pedestrian traffic area. This is more a reflection of how townships have grown, without sufficient local planning around industry infrastructure impacts, with Bundaberg being a particular concern. Challenges for our rail New cane rail is capital prohibitive, requiring a 50 year or more payback period. This investment was made at a time when the sugar industry was the predominant Queensland industry, with significant government policy supporting its longevity. Without policy commitment, the industry certainty required for this long-term investment does not exist in Queensland today. As the Queensland government develops its freight strategy, ASMC will continue to raise these concerns and opportunities for inclusion. 8 Achieving record mill throughput with minimal lost time Gary Ralph Chief Engineer, Isis Central Sugar Mill Gary Ralph only knows the sugar milling industry but he knows it well after 42 years in the business with Isis Mill. His father managed a cane farm while he was growing up which prompted the young 16-year old Gary to apply for an apprenticeship at Isis Central Sugar Mill after finishing Grade 10. He started on 3 February, 1971 to undertake a four year Fitting and Turning apprenticeship. Gary stayed at Isis Mill after his apprenticeship to undertake Machining, Fitting, Pneumatic Instrumentation and Hydraulics work. He was promoted to a staff member as a Shift Engineer in July, 1990, where he worked for nine years, followed by a short period as a Loco Shed Supervisor and then Maintenance Engineer. He became Chief Engineer in July 2003 and now manages more than 80 personnel and eight engineering staff. Gary works a 12-hour day, every day, but says there is never a dull moment. The sugar industry provides our community with a dignified labour and decent standard of lifestyle. The industry brings many interesting challenges each day there is something new to investigate or repair. Working with the people here is what I most enjoy. It makes coming to work every day a pleasure the people are loyal and honest and work together as a team and our low turnover rates are testament to how much our people enjoy their work. The strong sense of family and community are added benefits. Some people have been here longer than me our longest-serving person has been here for 46 years. Last year we had a record crush. In terms of the current season, the harvest has gone well, both mechanically and from a point of view of supply, with good dry cane growing weather. Our crush estimate for this year, however, is down 10% at around at 1.2 million tonnes. Isis Mill grows some of its own cane and we require rain now to prepare the land for planting next year s crop. It s important always to look forward in this business we re always examining the latest technology and assessing how to improve our operations and efficiency to maximise output with minimal lost time. Bundaberg-born Gary lives at Isis Central Sugar Mill with his wife Jenny. He has three grown-up children aged (Josh, Kyel and Bree) and one grandson aged three. Both Gary s sons are working now in the mining sector, but they gained valuable work experience and work ethics from the sugar industry having undertaken apprenticeships as a Fitter and Turner and a Diesel Fitter at Isis Central Sugar Mill.

11 Maintaining existing rail networks is currently dependent on group purchase of second-hand rail, typically from decommissioned lines as far away as Victoria. Without access to this second-hand rail, mills could not afford to replace worn track. There is a view forming that government enjoys all of the benefits of the sugar industry investment in rail (including deferring duplication or fortification of road infrastructure), without wearing any of the financial risk. Rail is frequently extensively damaged during flooding and cyclone events. The cost of insuring this infrastructure is uneconomic, hence mills bear an additional cost during recovery. The escalating costs of Queensland Rail are forcing Queensland Sugar Ltd (QSL) to continually decrease rail tonnage to terminals for example, QSL is now using trucks to transport sugar in Mackay. With regard to sugar industry rail safety activities, there has been a move towards a more coordinated approach and involvement in the wider rail community. As with all aspects of safety in the milling sector, and in particular for rail, continual improvement and effort is required at an industry level. As we look to the future of rail safety, ASMC will examine how to increase community understanding and target awareness of the risks associated with cane rail and continue to look for ways to interact with other rail users, leverage best practice and share process information within our industry and further afield. Challenges for our port operations The Australian sugar industry owns and operates a network of six bulk sugar terminals located at ports along the Queensland coast, many of which have been strategically located for the industry. These terminals have been long recognised as world best practice in terms of their sugar storage, shipping and logistics management. The investment in this terminal infrastructure has been made over 50 years and critically contributes to the international competitiveness of Australia s predominantly export-focused industry. In effect, Australia provides a warehouse capacity, selling and storing sugar well in advance of demand. However, this specialist feature of the Australian industry is dependent on responsive shipping capacity and facilities and critically, emptying of the storage facilities outside of the crush season, to enable storage of the next season s product. If this product is not removed before the start of the next season, sugar mills have nowhere to store their sugar production and would be unable to begin crushing the next crop. Given that all mills optimise their season to maximise the sugar production potential of the crop, the financial impact of a delayed start has significant flow-on financial implications for mills and their associated growers, QSL and international customers. Given that more than 70% of Australia s raw sugar is exported exclusively from Queensland, the operability of Queensland s ports is critical to the reputation and viability of Australia s sugar industry. As such the industry has some significant concerns emerging around the functionality of ports, particularly in relation to towage, pilots and port authorities. Rehabilitation of Bundaberg Port Following the record Bundaberg flood event in January 2013, approximately 860,000m 3 of silt was deposited throughout the infrastructure of the Port of Bundaberg. Port depths were significantly affected, resulting in the Port s closure to commercial shipping, and 180,000 tonnes of the 2012 season s raw sugar remained in the Bundaberg bulk sugar terminal for export, effectively stranded. QSL and milling companies investigated a range of options for moving sugar out of the Bundaberg region and into other facilities, including road transport and a range of small scale shipping arrangements. Some initial emergency dredging allowed small ship access, with the industry employing 12,000 tonne ships to transport sugar from Bundaberg to Mackay for reloading into large export ships, at an additional cost of $6 million to the industry. Without this, three mills in the region could not have started crushing for the 2013 season. However, this approach is cost prohibitive and unsustainable. The economic viability of the sugar industry is dependent on the accessibility of its ports and the recovery efforts of our local communities are dependent on the viability of our industry. Recognising the importance of the sugar industry to the local economies within the region, the Federal Government and the Queensland Government agreed to fund the restoration of the Port of Bundaberg under the Natural Disaster Recovery Assistance scheme. The timing of this decision was particularly welcomed as it enabled dredging activities to start ahead of turtle hatching season, where a moratorium on dredging activities would have prevented further port restoration until early The industry remains hopeful that these activities will be finalised in sufficient time to enable 30,000 tonne ships to operate again before the end of the year. Jason Pascoe, Manager, Port of Bundaberg, on the GPC Pilot Transfer vessel Kareela. In the background the bulk sugar carrier, MV Celine C, is berthing, being assisted by 2 tugs, and the lines running launch is also shown. The MV Celine C was the first ship to enter the Port of Bundaberg following its closure by the major flood in January Photography: Bundaberg Port Cane railways are perhaps the most public interface of the sugar industry in Queensland. The maintenance of the rail infrastructure and its safe operations continue to be of prime importance for sugar milling companies. Photography: Sharon Denny 9

12 Second prize winner of the 2012/13 ASMC Photography Competition Photography: Richard Curzon People and Safety Our industry s people are its most valued asset and the importance of safety and risk management is paramount. Yet everyday several people will be injured in a workplace in Australia. In Queensland alone there are approximately 102,000 claims made for compensation each year. In the financial year 2011/2012, 297 of those claims were from members of our sugar milling employee community. The year in review Musculoskeletal injuries (a range of disorders involving muscles, tendons, and other soft tissue) made up the bulk of claims submitted in the last year Head and face injuries were the most common 2010/2011 and 2011/2012 showed a drop in statutory claims submitted 2012/2013 claim numbers increase could result in higher premium costs in future years. Claims rates and costs Historically there is a low common law claim percentage rate; however, increased statutory claims increases the risk of common law claims in the future. Despite fewer common law claims in 2011/2012 there was a significant increase in costs. Greater injury severity and an increase in numbers of claims usually results in increased claims costs. This in turn impacts the premium of future years. An increase in common law claims can usually indicate: injuries were either more serious and/or employers were less able to demonstrate sound process and practice when defending the claim. Sugar mill performance (Queensland) types of injuries 2011/2012 New Statutory Claims WorkCover Queensland, Sugar and Manufacturing as at June 2013 Numbers do not include minor injuries where a claim for compensation has not been submitted. Claims Queensland sugar and confectionery manufacturing Year New claims (statutory)* New claims (common law)* 2008/ / / / / Total claims cost (statutory and common law)* Year Statutory Common Law 2008/09 $1,949,611 $1,659, /10 $1,512,057 $3,706, /11 $1,688,917 $2,205, /12 $1,696,502 $5,499, /13 $1,790,083 $1,381,254 *based on WorkCover Queensland statistics 10

13 Record attendance numbers at Safety Conference A record number of attendees responded well to this year s Safety Conference with most participants taking away something positive. The most consistent feedback was the level of community spirit and open sharing attendees and guest speakers demonstrated. Consistent message around culture and opportunities for improvement A seasoned Human Resources professional facilitated a session involving an interactive survey of natural Risk Appetite and Moral Development (based on Lawrence Kohlberg s theory). Participants responded well to the activity with some surprised at the results. A significant incident which was still raw, and close to the hearts and minds of the mill team involved, was shared and examined, with team members sharing their key reflections. Such a personal account reinforced the significant and far-reaching effect such incidents have on our local communities and on the industry overall. This sharing of information among our member community is extremely valuable. We will continue to enhance and support this through well-established networking opportunities and introduce new avenues for knowledge transfer. We are looking forward to the Future of the Sugar Industry Safety Conference, and analysing feedback so the conference can continually improve and give members what they need. It was good to hear from peers who are going through the same thing at different locations. Cheryl Daley Executive Officer, Safety and Workplace Relations, ASMC There really are only a finite number of engineering and process driven control mechanisms for a particular risk, and it will always be the abilities, knowledge and motivations of the individual at the point of risk and their managers that will determine a positive or negative outcome. Cheryl describes herself as a lifer apart from a six-year stint as General Manager for a manufacturing company, she has made safety and human resources her entire career. Personal experience where a family member was injured at work motivated her to join the field many years ago. I have been incredibly lucky in that I have had the opportunity to work with trains, cranes, manufacturing, raw materials handling and transport it is no coincidence all of these industries converge in the sugar industry. Having only recently joined the sugar industry as Executive Officer, Safety and Workplace Relations with ASMC, Cheryl is excited at the prospect of moving with the industry to the next level. I am really looking forward to bringing my experiences from other industries, the good, the great and the fantastic, to the role. I think there is a time when everything aligns to bring about the best possible outcome, says Cheryl. The place to get real traction on best practice is at an industry level. That s why I am so excited about having joined the ASMC, to be able to influence legislators and be the information conduit for members on some of the emerging issues is really the best way to make long-term, sustainable progress in People and Safety functions. With a particular interest in the behavioural sciences, Cheryl is a firm believer in safety being one factor in the overarching risk framework of any successful industry. It will be the human factors associated with highly functioning teams that will ultimately produce a high performing business. How people respond when faced with changing environments and potential harm is, Cheryl believes, the foundation of any good outcome. Working safe to come home safe is epitomised in this image by Richard Curzon - one of many fine photographs submitted in this year s ASMC photography competition. Photography: Richard Curzon 11

14 Keeping an eye on the horizon Impending changes are coming around: apprentices and Fair Work Australia Workplace Safety Queensland s review of their choice to submit fully to the Harmonised Act. Committee work Streamlining the committee structure and redefining committee activities will be a strategic approach aimed at maximising outputs. One imperative will be looking for opportunities to improve whole-of-industry capability. Concentrating on priorities such as the introduction of the combined People and Safety Committee will be vital in examining and recommending industry-wide action, programs and developments. The focus will generally be on: injury reduction incident and injury management near miss and incident reporting incident causes and systemic failures the Community Safety Awareness Program risk profiling and risk appetite reducing claims, costs and liabilities culture and its impact on safety climate and performance data analysis to determine industry trends looking beyond the lost time injury and developing industry-wide performance indicators. Developments in one area or risk quadrant can improve performance in others. Conversely, a negative event can adversely impact the whole industry. There will be a focus on greater alignment of human resources, industrial relations and safety including rail safety functions and specifically how these risks intertwine. Grow, learn and share ASMC officers will continue to develop opportunities to provide a greater service to members. With input from all stakeholders short, medium and longterm objectives will include: participation in the ZERO Harm Leadership Program with Workplace Health & Safety Queensland investigating the benefits of AS/NZ 4801 Safety Management Systems Accreditation Schemes safety award and recognition submissions and programs compensation premium reduction programs in conjunction with WorkCover and other state insurers Registered Training Organisation status apprenticeship training schemes, funding and programs. The evolution will continue as we build on the strong foundation and long history that has withstood change over many years of operation. Our industry endures as the centre of many local communities and we will flex and move to meet the needs of our member community as it grows, learns and shares. Concentrating on priorities such as the introduction of the combined People and Safety Committee will be vital in examining and recommending industrywide action, programs and developments. Not just jobs for the boys at Mackay Sugar Theresa Jones Maintenance fitter and turner, Mackay Sugar Mackay Sugar s 2012 Apprentice of the Year As a 27-year old, Theresa Jones set off travelling around Australia in 2000 with her partner David. In 2005, they arrived in Mackay and, as it was close to crushing season, quickly found employment as factory operators with Mackay Sugar. Theresa soon found she was doing all manner of work, from forklift truck driving to working an overhead crane. Eight years on, with her apprenticeship completed and formal recognition from her employer, Theresa is understandably proud of what she has accomplished. There s a perception that mechanical jobs are just for the boys but really, they aren t as difficult as you imagine ultimately it s about having the willingness to learn, the right teachers and the confidence to give it a go. I would like to be a role model for other women in the industry, but I don t expect any special treatment from my colleagues. I ve now gone on to complete my apprenticeship that s the progressive environment Mackay Sugar offers. Sugar milling is a terrific industry to work in and there is a real sense of teamwork. For sure with the recent floods, we ve seen some hardship which takes its toll on the community and people I care about. Too much rain stunts the sugarcane crop s growth which then impacts company budgets. But stopping here that day in 2005 was still the best life decision I ve ever made. Originally of Cooroy, Queensland, Theresa now lives in Beaconsfield with her partner David. In her spare time she enjoys bushwalking. Teamwork is all important in the safe and effective operation of cane trains. This shot taken by one of the ASMC team during a northern mills visit shows a driverseye view during a shunting operation at a siding in the Tully Mill area. Tully Mill can be seen in the background. Photography: Jacqui Willcocks 12

15 Safety is the number one priority for the Australian sugar milling industry and continual improvement in the industry s safety record is a shared goal. Ready for safe work and demonstrating Wilmar Sugar s achievement of a responsible and safety-aware culture throughout their business are Thomas Baishont, Haydn Henning and Rory Widderick at Invicta Mill. Photography: Wilmar Sugar 13

16 Photography: MSF Sugar Ltd Raw Sugar Milling As natural disaster, policy and legislation continue to present new challenges year on year to the Australian sugar industry, it is the strength of our community that continues to drive the industry s resilience. The 2012/2013 year presented as a particularly significant policy year for the milling sector. The national carbon price that came into force on 1 July 2012, substantial price shocks in the Queensland electricity sector, a review of water pricing (for irrigation) and ongoing confusion about the requirements around the recycling of waste water from sugar mills have continued to challenge the sector. Cleaner energy strategy and a price on carbon After three years of emissions reporting under the National Greenhouse and Energy Reporting (NGER) scheme, a carbon price signal came into force on 1 July 2012 under the Clean Energy Future legislation. All businesses that exceed 25,000 tonnes of carbon dioxide emissions now face a carbon liability. Carbon pricing policies typically throw up opportunity and challenge for the sugar milling industry. As a principally green industry managing and recycling waste streams, sugar mills do not trigger a carbon liability threshold as part of their typical operation during the crushing season. However, optimised diversification of a sugar milling operation includes electricity and steam generation outside of the crushing season, supporting co-located industries such as refineries or distilleries. Once renewable fuels (biomass) are exhausted, these mills may need to supplement with coal, and potentially trigger a carbon liability threshold. Consequently, mills generating steam and electricity out of season continue to explore investment in reducing their carbon liability exposure. Investment risk Under the Clean Energy Technology Program (Food and Foundries), the industry has been particularly fortunate to attract more than $10 million in funding for three companies during 2012/2013. This funding in turn has leveraged further investment by the respective companies in additional energy efficiency measures that will lower their milling sites carbon emissions and increase their energy efficiency. However, investment relies on policy stability. The oppositional views between the two major political parties on the best carbon pricing mechanism continues to destabilise the investment environment. Sugar industry projects have significant lead times. Hence the ability to deliver a project relies on a certainty that fundamental policy frameworks will remain sufficiently intact for industry to recover its investment, irrespective of the government in power. Anything less is sovereign risk. South Johnstone Mill. Photography: Richard Curzon 14

17 Pioneer mill pilots new mud filter technology Wilmar Sugar s Pioneer Mill lived up to its name in the final weeks of the 2012 crushing season, becoming the first Australian mill to test new mud filter technology. A horizontal vacuum bed press filter was installed in the factory in October and operated from 1 November to the end of the crushing season. Commonly used in Brazilian mills, the technology offers an alternative to the traditional rotary drum mud filters. Using three different filtration mechanisms gravity, pressing and vacuum it recovers residual sugar from mud settled in the clarifier. Pioneer Mill Engineering Manager, Robert Borg and Production Manager, Doug Sockhill visited Brazil early in 2012 to see the filter in action. Pioneer Site Manager Paul Turnbull said the expected benefits of the technology were lower capital costs to replace current mud filters and fewer maintenance and operational issues. We are also looking at whether the system has the potential to be better able to manage finer soils, which often cause problems with filtration in the mills. The Pioneer milling area s variable soil quality was one of the key reasons Pioneer was chosen as the test site within Wilmar Sugar, as well as the fact we had a rotary filter due for replacement. If the filter s performance can be proven at Pioneer Mill, it is likely to be more robust in operation at other sites with less variability in their mud quality. We re more likely to have a combination of both in operation at the mills. It s still early days but the Pioneer trial has gone well, so far. We ll continue to trial the technology during the 2013 season, Paul said. Should the $1.2 million trial prove successful, Wilmar Sugar will look to install more of the filters at other sites. General Manager Operations Mike McLeod said, however, that the plan was not to make rotary mud filters extinct. Challenging himself to succeed Mike McLeod General Manager Operations, Wilmar Sugar Australia Kiwi-born Mike McLeod may be new to the sugar industry but not to manufacturing operations. Mike has been General Manager Operations, Wilmar Sugar Australia for 18 months, and was previously Operations Manager at SunRice for five years. Our season has gone very well. We ve been fortunate that it s been very dry with good growing and harvesting conditions. We haven t completely escaped Yellow Canopy Syndrome, but the impact to date hasn t been as bad as had been anticipated earlier in the year. The sugar industry is part of the long-established agribusiness sector and it brings enormous challenge and diversity, which is also part of its attraction. To be successful in life, you need to overcome challenges. I have eight mills to run, so I need to manage my time effectively to visit all my sites and my people and make sure we are operating efficiently. I enjoy working with all my mills teams but really we are all one big team. Working with people is the most challenging part of my role but it s the most rewarding by far. There are some real characters in the sugar industry, which can make it a very interesting place to work! Mike lives in Kirwin with his wife Dale. He has four children, three of whom are in Australia, and one is back in New Zealand. Originally from the Hawkes Bay in New Zealand s north island, Mike enjoys sport and home improvements in his spare time. Members of Wilmar Sugar s Pioneer Mill team during an inspection of the new horizontal vacuum bed press filter being trialled at the mill. Photography: Wilmar Sugar 15

18 Energy Efficiency Opportunities Program The Energy Efficiency Opportunities Program (EEOP) requires large energy users to undertake energy savings audits. While it is not mandatory for users to accept the recommendations from an energy savings audit, it is publicly reported. After five years of participation in the EEOP, the industry is reaching more of an understanding with the Federal Government around its EEOP participation with a clearer identification of opportunities for energy efficiency changes, and where we are captured by unnecessary reporting. The industry properly recognises that the direct involvement of CEOs and senior management in negotiations with government is critical and can even help to reduce the reporting compliance burden. While the EEOP is here to stay, mills are finally moving to a point where the reporting onus can become less burdensome. Queensland electricity pricing Electricity is a by-product of the crushing season. During the crush, sugar mills are generators and supply electricity, in most cases exporting it to the local community or a co-located industry. With each mill restart, whether for maintenance or repair, each mill will import electricity from the grid to cover the short period of time required to bring the factory back up to full operation and subsequently start generating. Outside of the crush, most mills will import only a small amount of power to enable maintenance operations, since they are no longer generating. The State Government pursues a Network + Retail approach to pricing. When larger power stations import electricity from the network to power up, this is termed an auxiliary load, and generators are charged a significantly lower price. However, sugar mills are not treated like other generators for their import electricity during the crushing season. Consequently, despite sending out greater than twenty times the amount of electricity it imports (including off season), industry mills are exposed to huge price increases through retailed electricity. The approach to retail electricity price-setting in Queensland ultimately lacks equity for regional Queensland. In the last two years sugar mills have faced a price increase of 62%. If these price hikes continue compounding at a comparable rate over the seven-year transition period proposed by the Queensland Competition Authority, electricity costs will almost triple to a 245% increase over eight years! Of continuing concern is that our canefarmers are facing similar price increases, creating the risk that farmers will take the decision not to irrigate, with all of the associated negative productivity impacts. The drivers for agriculture are remarkably simple. When farmers water their crops, productivity increases, and industry, local communities and governments profit. But if irrigation becomes too expensive, farmers stop using water, productivity falls and the whole supply chain collapses, including primary manufacturers. Government policy and unsustainably high retail electricity prices are eroding the competitiveness of the sugarcane industry. Because Australian sugar is priced on the global market, sugarcane growers cannot pass on these increases to consumers and have to fully absorb the additional costs. Exorbitant price hikes like these will consequently cripple irrigated agriculture, forcing many farmers out of business and off the land. Electricity Network Service Providers Government meanwhile continues to downplay the underlying cause of spiralling retailed electricity price increases that is, the contribution of the network service providers (NSPs). All NSPs (transmission and distribution) are government-owned. Yet approximately 49% of the 2013/2014 retail price increase was the result of escalating NSP costs. Known as gold plating, NSPs have continued to overinvest in underutilised infrastructure, despite falling electricity demand. However, under the model operated by the Australian Energy Regulator, the NSPs are able to legally collect revenue against this expenditure in regulated charges. In effect, the system provides a perverse incentive for NSPs to continue to gold plate these network investments. As a result, the Queensland Government more than doubled its profit between 2008 and While State Government continues to overemphasise renewable energy s contribution to regulated retail electricity prices, consumers are footing the bill for the NSPs gold-plating of networks that is, excess, underutilised capacity and the Queensland Government is profiting. Source: 1 Rising electricity prices in Queensland: Evidence and reasons for action, Carbon and Energy Markets, May 2013 MSF Sugar s Tableland Mill successfully commissioned its new crystallisation backend during the 2013 crushing season. Peter Chohan inspects some of the first sugar to go up the belt to the on-site sugar bin ahead of transport to the Cairns bulk terminal. Photography: MSF Sugar Ltd 16

19 Crystallising Tableland Mill s future The Tableland Mill s operations started as a 650,000 tonnes juice mill in 1998, with clarified and evaporated juice transported to the coastal mills in far north Queensland (FNQ) for final processing into raw sugar. A low CAPEX sugar mill in a new cane growing region, using existing infrastructure at sugar mills closer to the FNQ raw sugar ports, was an innovative solution. However, it also created challenges such as the need to align the Tableland Mill s operations with the coastal mills. The regions have very different weather patterns. The Tableland Mill is located in the dry tropics, whereas the coastal mills are located in the very wet tropics. This major challenge reduced sugar recovery and during extended wet periods on the coast, the Tableland Mill had to truck bagasse to the coast to allow the boilers to keep running. The mill was always intended to have a crystallisation backend. However this vision was only realised when it came under MSF ownership. In May 2012 it was announced the Tableland Mill would have its annual crushing capacity increased to 900,000 tonnes and that a partial crystallisation backend would be installed. Budgeted CAPEX for the project at announcement was $42 million and would be completed for the 2013 season. The increase in the crushing rate is being achieved by the modification of the existing two roller mills with the addition of heavy duty feed rollers on both Number 1 and Number 4 mills, one additional evaporator (and re-piping of the set), replacement of the mud filter, increasing capacity of the clarifier and the installation of a boiler economiser (10% increase in steam rate for no increase in bagasse firing). The partial crystallisation will produce A grade sugar (to brand 1 specifications) with the installation of a batch pan and a Sugar Research Institute continuous vacuum pan. The A massecuite will be processed through two batch centrifugals. The A sugar process will recover 80% of the recoverable raw sugar. The final A molasses product will be trucked to the coastal mills to recover the final 20% of raw sugar. The factory has been designed to maintain its principle of being highly automated, with a single control room for the whole site. The new crystallisation backend will be operated by a single operator. The project needed to be built without the requirement to build a new boiler. This has been achieved by the installation of a boiler economiser and the use of vapour from the evaporator to provide heating to the pans. Various stages of the 2013 completion of the crystallisation facilities at the Tableland Mill. Photography: MSF Sugar Ltd 17

20 Photography: Frank Marchetti Industry Diversification Throughout the history of the sugar industry, mills have continually explored means of further diversifying the range of products available from sugarcane. In an industry that utilises all by-products of processing, the challenge is less about finding a use for the various by-product streams, but ensuring the industry is realising the best value diversification relevant to the available technology and economic value at the time. More often than not, constraints on bio-diversification occur because of policy uncertainty, or insufficient drivers for innovation. Renewable Energy Target Following the split of the Renewable Energy Target (RET) into a large scale and small scale scheme, commencing in 2011, this policy remains one of the most important drivers for sugar industry diversification today. Set at a nominal target of 20% of Australia s electricity demand, absolute targets have been set for year on year, ramping up to a 41,000 gigawatt hours target by 2020 for large scale renewable energy generators, to be held at this level until 2030 the end of the scheme. So why assign absolute targets for the RET? Australia s electricity demand varies from year to year; increasing faster than projected in fast growing economic conditions, and slower in years of financial constraint. Similarly, hot summers and cold winters will cause excessive peaks in electricity demand during these seasons, as Australian consumers respond with air-conditioning, where milder seasons result in a reduced electricity demand. Typically, these movements in electricity demand are cyclical, moving up or down over a 2 3 year period. Conversely, investors in renewable energy rely on a payback on investment over a period. Consequently, calculating the 20% target each year retrospectively, creates a great deal of uncertainty and bureaucracy for both renewable energy investors and liable entities (purchasing the certificates), for trends that even out over time. For this reason, renewable energy investors and liable parties were largely in agreement, at the time of expanding the RET, that absolute targets are preferable. Following the global financial crisis, mild weather seasons (ie. devoid of temperature extremes) and excessive increases in electricity bills around Australia, national electricity demand is currently tracking below previous projections. Consequently, some retailers within Australia s energy sector, are seeking a reduction in RET targets, relying on the confusion of a broader public around the electricity price increases to drive their agenda. On average, the RET contributes approximately 9% to the electricity price, while network charges contribute around 51% and these network charges are growing disproportionately larger each year. What is often missed in this broader discussion is the role of RET in facilitating investment and renewal in regional activities, such as sugar mills, for the benefit of the local community. When a mill expands its cogeneration capacity under the RET, it sends a clear signal to its growers and local community that the company is invested in the industry and region s future. Cost recovery on cogeneration expansion alone is typically in the year payback period. However, cogeneration investment is not simply add-on infrastructure, requiring significant optimisation with the existing milling operation. Milling companies typically use this opportunity to further invest in the total mill, increasing energy efficiency, and reliability throughout the various stages of sugar processing. Without the incentive of renewable energy investment, the opportunity or cost effectiveness of extensive mill revitalisation diminishes. Even mills that have not undergone significant expansion will continue to invest in optimising their existing cogeneration capacity, and consequently their milling infrastructure. Importantly, the RET target also delays electricity network augmentation and duplication in sugar townships, as sugar mills are embedded in their local communities, supplying electricity. Similarly, it also enables Australian sugar mills to remain competitive with international sugar industries. Most of Australia s competitors operate under aggressive renewable energy targets that include stationary and transport energy. Where Brazil s industry expanded rapidly with government support for renewable energy over the last 20 years, Thailand and India hope to follow. Bipartisan policy support is the strongest message any parliament can send to an investor community. The RET commenced its life as a bipartisan measure and the sugar industry continues to emphasise with all sides of politics the need for policy certainty and stability to maintain investor, industry and community confidence. Mackay Sugar has recently commissioned its $120 million cogeneration facility at its Racecourse Mill site near Mackay. This image captured by Mackay Sugar s Frank Marchetti shows one of the many towers that form the interconnection between the cogen facility and the electricity grid. Photography: Frank Marchetti 18

21 Efficiency investment pays off During 2012, Bundaberg Sugar secured approximately $645,000 from the Clean Energy Technology (Food and Foundries) Fund to enhance bagasse production and utilisation through increased energy efficiency. Bundaberg Sugar commenced Project Lily in 2009 a $40 million upgrade of Millaquin Mill, increasing the capacity and reliability of the sugar factory, increasing sugar recovery and mill energy efficiency, leading to an overall reduction in unit operating and maintenance costs. As part of this project, two Bundaberg High Efficiency Mills (BHEMs) were installed one in the milling process (a 5th mill), the other adjacent to a new bagasse silo, where excess bagasse is stored for steam and subsequent power generation outside of the crushing season. Both mills BHEMs dewater bagasse, reducing the moisture content. This increases the energy content per tonne of bagasse burnt, and therefore the efficiency of energy conversion of bagasse. The use of both mills BHEMs ultimately leads to less coal burnt at the mill each year, reducing Bundaberg Sugar s exposure. However, the full potential of the bagasse dewatering mill came to the fore in early 2013, following the worst floods on record for Bundaberg. Bundaberg Sugar experienced severe flood impacts at the Millaquin site, including inundation of the new bagasse dewatering mill and the stored bagasse pile. Flooded bagasse is typically difficult to manage, as not only does the moisture inhibit the burning potential, but continuously wet fibre degrades into compost, rendering the material unsuitable for fuel. Consequently, Bundaberg Sugar was facing a carbon liability, following the potential loss of all its stored fibre at Millaquin. However, following restoration of the bagasse dewatering mill BHEM, flooded bagasse, with moisture contents up to 75%, was extruded through the mill as viable fibre fuel, with a moisture content of 51%. Consequently, Bundaberg Sugar avoided a carbon liability, and proved the effectiveness of their efficiency investment. However, there are broader industry implications of Bundaberg Sugar s experience. Extreme rainfall in North Queensland means that mills in these regions face significant hurdles when considering cogeneration expansion at their mills. Storage of bagasse for out of season use is difficult, with costly solutions, such as tarping, used by some to preserve bagasse. The Bundaberg Sugar experience highlights an alternative option for mills to consider when investigating diversification opportunities. Leone keeps coming back to Bundaberg Sugar Leone Aslett General Manager, Bundaberg Walkers Engineering Ltd On arriving in Bundaberg in 1992 to meet my boyfriend s family, little did I know I would land a job with Bundaberg Sugar as a Graduate Accountant. As a Financial Accountant seven years later, my husband Kayne and I headed off back to my hometown of Mooloolaba where I managed a law firm. During our busy time there, we managed to start our family with our daughter, Charlie. After the birth of our second daughter, Georgie, we decided to relocate to Bundaberg for the idyllic lifestyle. Once again, I found myself in the employ of Bundaberg Sugar as Financial Controller for the Bundaberg Operations. In this role I was fortunate enough to form relationships with many local Bundaberg canegrowers and obtain a detailed understanding of the milling, refining and sales processes. Becoming involved with sugar pricing was a rewarding challenge, and seeing the implementation of growers being able to price their crop into the future is another step forward for the industry. In 2011, our third child Harry was born and I am very lucky to have a wonderful husband who runs our home, thereby enabling me to devote the time necessary to my work. I ve now taken on the challenging role of General Manager, Bundaberg Walkers Engineering Ltd, and I m looking forward to working with the team and learning the engineering side of the sugar milling industry both here in Australia and overseas. Millaquin Mill s new bagasse bin and conveyors form part of a $40 million efficiency upgrade that also featured the installation of two Bundaberg High Efficiency Mills - one in the milling train at the factory and the other adjacent to the bagasse bin for dewatering purposes. Photography: Bundaberg Sugar 19

22 Queensland Government 30 year strategies The Queensland Government has commenced an ambitious series of 30 year strategies this year, to ensure government policy reflects the expectations of the people of Queensland, and critically, enables the state to develop with clear priorities and strategic direction. Strategies under development include: the 30 year Agricultural Strategy the vision to double the State s agricultural production by 2040 the 30 year Water Strategy a revitalised state irrigation plan the 30 year Electricity Strategy a strategy capturing whole of supply chain electricity reform; and the 30 year freight strategy providing a sustainable integrated approach to freight movement. Sugar milling companies are essential stakeholders in each of these strategies. The sugar industry is a pillar industry of regional Queensland, with sugar mills originating purpose and existence of numerous townships and city centres along the Queensland coast. Our investment in core infrastructure water, electricity (through self-generation) and rail transport has transformed these townships over a 100-year period, and created economic opportunity for numerous other industries to develop. As a consequence, the sugar industry understands only too well the cost and challenge of first time major infrastructure with a payback on investment typically in the order of 50 years. This type of investment is transformative for towns and regions but, critically, relies on consistent and committed policy from successive governments to the investing industries, and the people who ultimately build the communities surrounding the infrastructure. Sugar industry expansion relies on visionary government policy reconciling resource management with economic growth. In particular, given that doubling food production by 2020 is one of the government s four pillars, the sugar milling industry is seeking clear direction and opportunity for participation under each of the 30 year strategies, including: sufficient, sustainable and viable (cost effective) industry access to water, electricity and transport infrastructure valuing industry s historical contribution to existing regional infrastructure ensuring region by region infrastructure planning to reflect local growth needs industry and community inclusive planning; and reduction in unnecessarily complicated regulation. Natural resource management With the change in Queensland Government came a different approach to the reef regulations, and a move towards the yet to be developed CANEGROWERS Best Management Practice program. This will have a significant impact on the industry across the value chain. The Milling Council must maintain careful vigilance on the program as it develops, and ensure careful interaction, particularly on the miller/grower interface, and productivity impacts. Recent changes to the Vegetation Management Act in Queensland allowing for sustainable land use, and enabling clearing of vegetation for high value agriculture, will provide the industry with an opportunity to consider a range of responsible growth strategies that have not been available to us for the past decade. As we examine these opportunities it will be important to ensure the environmental sustainability of any proposed expansion is ranked evenly with its commercial potential. Tully Sugar Mill s effluent ponds form part of the picturesque scenery that is representative of the Far North Queensland sugar industry. Photography: Sharon Denny 20

23 Biofuels For yet another year, biofuels opportunities in Australia remain disappointing. Both federal and state governments continue to focus on next generation biofuels with no regard for the viability of the existing industry and associated investment. Where market and policy conditions previously failed to generate new opportunities, current conditions are steadily eroding the economic viability of the biofuels sector. This is particularly apparent for ethanol. It is almost three years since the former Queensland Government suspended implementation of a 5% ethanol mandate. At the time, the Bligh Government argued that at 3.5% penetration already, an ethanol-blended fuel market appeared achievable without a mandate. Ethanol penetration of the fuel market today is at 1.5%. Three years ago, ethanol producers were preparing to expand, to meet anticipated growth in demand by a mandate. Today, all ethanol producers are relying on export and traditional chemical markets to remain viable. Where space previously existed for new investors, the current market carries between ML of untapped, existing capacity. This is significant to the ethanol producers, but represents less than 1% of the total unleaded petrol consumed. The current viability solutions for ethanol producers are not sustainable over the longer term. The lack of policy certainty has fuelled a loss in investor confidence for the biofuels sector at a time when our international sugar competitors are simultaneously embracing existing ethanol technology and next generation biofuels. Policy is only the starting point for reflection, as there are significant market obstacles to overcome for the biofuels sector, including public perception and market access. Breaking (contextually) new products into traditional markets requires support throughout the supply chain which is not apparent in the current economic climate. In the meantime, the sugar industry continues to explore the range of next generation technologies, as drop-in technologies around the world draw tantalisingly closer to commercialisation. Sugar milling companies remain interested in opportunities arising from biofuels, and particularly ethanol. However, there is strong industry recognition that in the absence of clear government commitment around biofuels, investment in the short term is unlikely. Boosting bagasse across the business Mackay Sugar s 38-megawatt Racecourse Cogeneration Plant was officially opened by former Parliamentary Secretary for Climate Change, Industry and Innovation, Hon. Yvette D Ath on 27 March Construction of the $120 million plant started at Racecourse Mill in early 2010, with the commissioning phase and export of renewable energy to the national electricity grid starting respectively in September and November Mackay Sugar successfully secured $9.1 million of funding under the Clean Energy Technology (Food and Foundries) Fund in August Following on from its investment in significant cogeneration expansion at Racecourse Mill, the company had been seeking opportunities across the whole business to increase efficiency and lower its carbon liability. Mackay Sugar has invested in energy efficiency improvements across all three of its Central Queensland mills, including the upgrade of a boiler at Marian Mill, and the construction of bagasse-handling facilities at its Farleigh and Racecourse mills. Collectively, once fully implemented, these energy efficiency measures will reduce energy consumption by 14.9% per tonne of sugar, and reduce emissions intensity by 71%. While Mackay Sugar had planned to eventually realise these projects, the additional funding provided through the Clean Energy Technology program enabled the company to bring the projects forward. The lack of policy certainty has fuelled a loss in investor confidence for the biofuels sector at a time when our international sugar competitors are simultaneously embracing existing ethanol technology and next generation biofuels. Another angle of Mackay Sugar s new cogeneration facility at its Racecourse Mill site captured during an inspection after the official opening of the plant in March Photography: Sharon Denny 21

24 Photography: Frans Oelofse Marketing and Trade Global Sugar Alliance making sugar prices fair for all The Australian sugar industry is the most trade-exposed sugar industry in the world our domestic market is small compared with our crop size and it has no subsidies or tariff protections. Free and fair trade is critical to the success of our industry. Sugar, unfortunately, is one of the most price-distorted of world commodities. Trade distorting policies in most producing countries result in unfair and artificially low prices for Australian sugar. At the Global Sugar Alliance we are asking trading partners for a fair go and for the Australian Government to understand and support our position. To stand any chance of success, we have to be smart about increasing our bargaining power and strengthening our message by working closely with others facing the same challenges. The Global Alliance for Sugar Trade Reform and Liberalisation was established in November 1999 when members (Australia, Brazil, Canada, Chile, Colombia, India, Guatemala, South Africa and Thailand) agreed and signed a communiqué calling for World Trade Organization agreement on agriculture. This included positive, progressive, and meaningful reform of the world sugar market by ensuring sugar was included as an important element of the agricultural trade agenda. Australia takes a key leadership role in the Global Sugar Alliance and currently holds both the Chair and Secretariat positions. The group has been active this year in pursuing multilateral trade outcomes, particularly with the United States and the European Union. The Global Sugar Alliance members are the world s leading sugar producing nations, representing over 50% of world sugar production and more than 85% of world raw sugar exports. The objective of this group is to achieve positive, progressive and meaningful liberalisation of the world sugar market. By reaching an agreement to collaborate on trade distorting issues, agreeing on common objectives, and working closely with Trade and Agriculture Ministers in the Cairns Group and G-20, the Global Sugar Alliance has been successful in elevating the profile of sugar in the trade negotiations. Given that the member countries are major competitors in the world sugar market, agreeing on a common negotiating framework for sugar has been a significant step forward, reflecting how the sugar industry in each country shares the objective of improving its market circumstances. The Global Sugar Alliance is not just another global commodity group designed to share information. It incorporates three important ingredients: 22 It shows there is a wide international coalition of producers seeking an improved world sugar trading environment. As a group comprising largely developing countries, it provides an effective, countervailing voice to advocates for trade protection. It provides a basis for Trade and Agricultural Ministers to engage each other on sugar issues, with the knowledge that their domestic industries are fully supportive of their negotiating position. It adds strength to their hands. This flows through to the officials level too. The environment within which the agricultural negotiations are occurring is being conditioned. Already, officials in Geneva and elsewhere are anticipating that much closer attention will be paid to sugar this time around. Although the Global Sugar Alliance has achieved significant progress towards trade reform, we are far from satisfied and have a considerable task ahead before we can say we are being given a fair go. Greg Beashel Chair, Global Sugar Alliance Rising to the challenges Hitesh Prasad Production Superintendent, South Johnstone Mill, MSF Sugar After a nine-year stint in Fijian sugar mills, Hitesh Prasad moved to Australia in 2006 to take up work at Golden Circle s Brisbane factory. In 2009, he moved to Bundaberg Sugar s Babinda Mill as Production Chemist. After MSF acquired the far north Queensland Bundaberg Sugar milling operations in 2011, Hitesh was transferred to South Johnstone Mill and later promoted to Production Superintendent. The sugar industry is challenging but it s innovative and there is capacity to grow, personally as well as professionally. The facilities and workmanship here in Australia are much better than they are in Fiji, although the system there is now improving. With the recent consolidation here in Australia we ve seen investment from overseas, which is helping our sustainability. Business-wise, the sugar industry has been badly affected since 2010 and The extreme wet weather conditions and Cyclone Yasi were detrimental to the cane quality, which then has ramifications for the sugar process and the quality of output. However, despite these struggles, we re starting to build capacity once more. There are always challenges in this industry but we are rising to them at MSF. Originally from Vanua Levu in Fiji, Hitesh lives in South Johnstone with his partner Jotika and his two children, Simran and Nish. He has a Bachelor of Sciences, a Diploma in Sustainability and originally qualified as a teacher. Hitesh hopes one day his children will have medical careers.

25 Trading environment Securing a trading environment in which sugar flows freely remains the overriding objective for the Australian sugar industry. This is achievable through multilateral, regional and bilateral trade agreements that specifically include agriculture and sugar. While some countries will continue to argue that sugar is a sensitive product that should be excluded from specific agreements, it is the Australian sugar industry s position that sugar must be included in all trade negotiations, not excluded. As such, the industry has active representation in Australian agricultural industry delegations to successive rounds of international negotiations. The four most important trade issues presently being pursued for sugar are: securing improved market access for sugar in all Trans Pacific Partnership (TPP) economies, particularly in the USA and Mexico, by removing tariffs and quotas and by developing rules of origin that will enable the free flow of sugar (raw and refined) and sugar-containing products around the region using all means available (in Brussels and Geneva) to ensure the European Commission abides by its World Trade Organization (WTO) commitments on sugar export subsidies finalising the Korea-Australia Free Trade Agreement (FTA) to remove the 3% tariff Korea is able to impose on Australian raw sugar exports finalising the Japan-Australia FTA to improve the terms of trade for sugar ahead of Japan s entry to the TPP, by improving access for Brand JA sugar and securing access for Australian Brand 1 sugar. Trans Pacific Partnership (TPP) The Australia-United States FTA is the only trade agreement that either country has concluded that totally excludes provision for new market access for sugar. Consequently, it remains an industry priority to ensure improved market access for sugar in all TPP economies, particularly in the United States and Mexico. While it is recognised that transitional arrangements may be required for more sensitive products such as sugar, the Australian industry expects no less than the free flow sugar and sugar-containing products around the TPP region at the conclusion of a phase-in period. European Commission The governments of Australia, Brazil and Thailand have continued to hold the European Commission to account through the WTO Committee on Agriculture and other committee structures to the decision by the Panel restricting EU exports of subsidised sugar. Where European Union sugar policy is generating surplus, the production risk should be borne by the region s producers, not by world producers operating in lower world prices. The WTO has ruled that all European Union export sugar is subsidised. Free Trade Agreements (FTAs) Korea is Australia s largest export market for sugar, trading around one million tonnes of sugar per annum, with a value of approximately AUD$500 million. While Australia has experienced temporary duty exemption in Korea until 30 June 2013, Korea has recently activated the 3% duty on imports. Australia is also seeking to improve terms of trade with Japan and China through specific arrangements under FTA negotiations. The Milling Council and CANEGROWERS, through the Australian Sugar Industry Alliance, continue to work collaboratively with the Australian Government, with the key message that improved market access for sugar must be included in all 21st century bilateral, regional and multilateral trade agreements. International policy impacts on trading market The Australian sugar industry is one of the world s most efficient and innovative producers, and exporters, of sugar. Australia s ability to remain competitive, however, with an aging industry and infrastructure, is highly dependent on industry innovation and diversification. While the Australian carbon policy debate has tended to focus on the internal impact of carbon prices on the global competitiveness of Australian industries, for the sugar industry, carbon policies around the world have the potential for equally distortional market effects on Australia s competitiveness. As numerous international economies undertake carbon policies, these same policies are increasingly subsidising expansion of their respective sugar industries. For example, over the last 3 4 years, Thailand s sugar industry has rapidly expanded, facilitated by a renewable energy target of 25% of total energy consumption by Included in this target is a biomass component of 3,630 megawatts (MW) generation capacity, the majority of which is projected to come from sugarcane. There is approximately 1,750 MW currently installed in Thailand. In comparison, Australia has just over 400 MW installed capacity. Every MW hour of renewable electricity generated at these Thai mills is guaranteed to be accepted at a premium electricity price. However, diversification also includes biofuels. Thai ethanol production is targeted to increase from 1.3 ML/day to 9 ML/day by Molasses-based ethanol (ie. a derivative of sugar production) currently contributes over 70% of Thailand s rapidly expanding biofuel industry. Coupled with fuel quality and vehicle standards, the Thai Government has targeted additional alternative biofuel capacity of 25 ML/day by 2021, including cane fibre lignocellulosics. Conversely, Australia s biofuels investment continues to languish in the absence of clear policy commitment. Today s global prices for sugar are below the cost of production for many producers. Therefore access to market is critical. As the major growth markets for sugar are in Asia, Thailand is competitively and uniquely positioned on the doorstep of demand, able to meet emerging niche markets. Similarly, with a weighty renewable energy target underwriting biofuel production, Thailand sugar producers have greater capacity to weather low global sugar prices. Thailand is one of several sugar producing nations moving down this pathway, along with India and the Philippines. The likelihood is that other developing nations will follow. For Australia, maintaining a competitive position in global sugar trading, while our competitors have expanded their production base, has relied on production efficiency, innovative risk pricing, and a highly reliable (timely and quality) product. We are entering a new period, where these factors alone may not be enough. Trade exposure to other countries carbon policies has not been considered by the Australian Government to date but as is evident from the sugar industry s experience, it must now figure in the decision making. At 5.76 kilometres in length, the jetty servicing the Lucinda Bulk Sugar Terminal near Ingham is the longest in the Southern Hemisphere. The jetty and loading facilities, badly damaged during Cyclone Yasi in 2011, were back in use by August 2012, again playing their part in the reliable supply of Queensland sugar to our export customers. Photography: Jacqui Willcocks 23

26 Photography: Maree Costello Sugar in the Community Isis Mill 2013 swift community flood response Australia Day 2013 will be remembered for the torrential rainfall that impacted the region with some local areas receiving more than 500mm of rainfall within 72 hours. This subsequently resulted in record flooding in Bundaberg and surrounding areas. The Isis Mill was very quick to respond to the needs of the local community and the company is proud of its contribution which included: Isis Mill employees were some of the first people on the ground to assist the community after the 2013 Australia Day floods. Nine Toyota vehicles, four trucks, two loaders, three tractors equipped with mobile water tanks, numerous pressure cleaners and up to 50 employees were involved in the clean-up. Isis Mill was able to source 12 generators from around the district and these were on the ground in North Bundaberg to help local residents who were without power. Isis Mill joined with the Isis community in collecting and distributing donated goods. This involved picking up donated items and transporting them to various locations which included Gayndah, Gin Gin, Wallaville and Bundaberg. Isis Mill made the Ovens at the mill available to growers to assist in drying out electrical equipment inundated as a result of the floods. Bundaberg Sugar fuelling Cane2Coral fun run A community event that has become a must do on the Bundaberg calendar is the Friendlies Cane2Coral fun run. The run is a key fundraiser and Bundaberg Sugar has been a major sponsor since its inception in Attracting some 2,500 entrants from various parts of Australia at each event, Cane2Coral has distributed funds for various charities totalling close to $160,000 in three years. General Manager, Refinery Operations and Sales for Bundaberg Sugar, Guy Basile said the Cane2Coral event is a great opportunity for the company to promote health and fitness as well as give its employees and their families the chance to come together and do something for the community. Our Bundaberg Sugar team has grown over the years from 60 to 150 members and we are aiming for 200 or more in 2013, Mr Basile said. An attraction of the event is that people can run or walk at a pace that suits them. After pounding the bitumen past the cane fields of Bundaberg, participants are greeted with one of the best views in the country at beautiful Bargara Beach. In order to promote fellowship amongst our team we provide a barbecue for our employees and their families after the finish line. This is a highlight of the day and is well received after expending all that energy. The feedback from our employees over the years is very positive and some have continued their fitness routine as a result of taking part. Bundaberg Sugar is always interested in supporting its local community and is pleased to be a major sponsor of this worthwhile fundraiser, Mr Basile said. The Bundaberg Sugar team gathered at Bargara Beach following the Cane2Coral 2012 event. Photography: Bundaberg Sugar The Cane2Coral fun run has distributed funds to charities totalling $160,000 over three years. Mackay Sugar s season of giving Teams of employees from the Isis Mill were amongst the first on the ground to assist people impacted by the devastating floods that struck Bundaberg and surrounding areas in early Photography: Isis Central Sugar Mill In early December 2012, Mackay Sugar s donation of $1,500 to each of Mackay s charities: St Vincent De Paul Society, The Salvation Army, Anglicare, Red Cross and Lifeline, and a donation of $2,000 to Mossman s Community Centre, helped with the costs of the various community services the charities provide over the Christmas/New Year period. Mackay township s less fortunate also received support via the company s annual Charity Christmas Gift Appeal. Employees from across the Mackay Sugar sites donated non-perishable foods, toys, and books to the appeal which were provided to local families nominated by The Salvation Army on 13 December. 24

27 Flood damage in Bundaberg, January 2013 Photography: Bundaberg Sugar Bundaberg floods and the recovery clean-up proves our strong, collaborative community Following the heavy rainfall of ex-tropical Cyclone Oswald throughout the Burnett River Catchment, Bundaberg experienced record flooding on 29 January 2013, the worst since records began in Similarly, much of the Mary River region was flooded. Many cane farms throughout the southern growing region were severely impacted, with some flooding at two mills. However, the impact on road, rail and pumping infrastructure was significant, and critically for mills, the Bundaberg Walkers Foundry Workshop was submerged in two metres of flood water. Bundaberg Walkers is important to the Australian sugar industry, as it is the only service in Australia that designs and manufactures sugar industry equipment, including the re-shelling of milling rollers for crushing every season. An inoperable workshop has significant flow-on effects for the crushing season starting up on time across the Australian industry. However, the foundry also services a range of other industries in the Central Queensland region, including mining and power generation. The clean-up of the foundry following the subsidence of floodwaters demonstrated just how strong the community spirit is within our regions and the sugar industry. Eighty volunteers worked for several days with shovels and wheelbarrows, slowly removing the silted material that included flood and foundry debris from the floor, while others moved with hammer and chisel removing caked mud from the walls and equipment, before high pressure water cleaning of the area. All floor machines, including lathes, welding and material handling equipment were fully inundated even the newly installed CNC Controlled profile cutter incurred some damage. Wilmar Sugar and Mackay Sugar deployed electrical engineers to assist Bundaberg Walkers with reconditioning of their equipment, while motors removed from the foundry were sent to Maryborough mill to use their heat drying equipment, and further reconditioning work provided by the mill. Throughout the sugar milling industry, companies collaborated to reassign re-shelling priority such that every mill could start the season. Everyone understood the importance of ensuring the foundry was once again operational important to the sugar industry, other local industries and the general Bundaberg recovery efforts. As Ray Hatt, CEO of Bundaberg Sugar stated during the floods, You really get a sense of the community spirit that lives in our industry at times like these. We ve had so many offers of support, and we are truly appreciative of the assistance to and support of both our local and sugar communites, ensuring that our business was able to operate again so quickly. The Bundaberg Walkers foundry was located in the middle of some of the worst affected areas of the January flooding. A sustained community clean-up and recommissioning effort involving both locals and sugar milling employees deployed from Mackay Sugar and Wilmar Sugar assisted Bundaberg Walkers to resume its all important operations as quickly as possible. Photography: Mandii Dawson 25

28 Cameras roll on Mackay s sugar industry Mackay Sugar and the significant role the company plays in the Australian sugar industry was the focus of 7Mate s Big Australia which aired on national television on 9 March Mackay Sugar had hosted the Big Australia production crew in September 2012, with the week-long film shoot involving a number of the great people behind Mackay Sugar, including some of the company s larrikin farmers. Big Australia tells the stories of the people behind big business Aussie characters working in unique or unusual jobs in some of the country s most remote locations. The series also displays the passion and ingenuity of Australian workers. The hour-long Sugar episode took viewers on a tour of Mackay s sugar industry, taking in aspects of farming, harvesting, transportation, milling and export. It also explored Mackay Sugar s cogeneration process, and demonstrated how the sugar milling process can produce renewable energy. Wilmar Sugar building communities through Men s Sheds Springing up all around Australia are Men s Sheds a modern community version of the backyard shed that has long been part of Australian culture. A Men s Shed is a friendly and welcoming place where men can connect with other men in their community somewhere to go for mateship and common activities. Many men in our culture learn not to talk about their emotions and can suffer isolation, loneliness and depression. Having a common interest such as a local Men s Shed can provide a vital missing link for men of all ages to talk and enjoy activities such as furniture restoration and woodwork to the clatter of tea and coffee cups. In 2012, Wilmar Sugar supported the establishment of two new Men s Sheds in the Herbert and Burdekin communities. Wilmar Sugar employees were actively involved in setting up the sheds and, as well as donating materials and in-kind assistance, the company has committed $10,000 over four years to each shed ($2,500 per year each) to cover maintenance costs. The spotlight s on sugar, filming of Big Australia. Photography: Mackay Sugar Inkerman Mill pulls a few strings Wilmar Sugar funds two new Men s Sheds. Photography: Wilmar Sugar The sweet sounds of classical music resonated through Inkerman Mill when acclaimed violinist Brendan Joyce did a site tour during the 2012 Australian Festival of Chamber Music. Brendan is the Brisbane-based orchestra s lead violinist and a former Burdekin boy and he returned to Ayr with his chamber orchestra, the Camerata of St John s, to perform a concert in tribute to his late music teacher, Joyce Crooks. Wilmar Sugar sponsored Brendan s involvement in the 2012 festival, with the Camerata of St John s performing at a number of events. As part of his visit to the Burdekin, Brendan was keen to tour a sugar mill. Inkerman Site Manager Ken Mackney obliged, taking Brendan through the sugar-making process, and in return he was treated to some sweet music. Acclaimed violinist Brendan Joyce on a site tour at Wilmar Sugar s Inkerman Mill during the 2012 Australian Festival of Chamber Music. Photography: Wilmar Sugar 26

29 Mackay Sugar ensures community slip, slop and slap at Harbour Beach Mackay Sugar provides $10,000 to the Mackay Hospital Foundation each year under its Community Support Program to assist with the provision of valuable community health initiatives. Thanks to this partnership, anyone heading to Mackay s Harbour Beach can access free sunscreen from a custom-made sunscreen trolley. Designed and manufactured by Mackay Sugar, the trolley is just one of the many initiatives to be introduced to enhance health services in the community since the partnership formed in early The trolley is based at the Lifesaving Club. Reef guardians and growing ties with schools Wilmar Sugar s ongoing involvement as a partner in the Great Barrier Reef Marine Park Authority s Reef Guardian program has seen the company link with a number of schools on environmental projects. The company supported Eco Challenges held in both the Herbert and Burdekin regions in 2012, donating Can-O-Worms worm farm kits for the school-based events. The annual Eco Challenges involve students from various Reef Guardian schools throughout the respective regions. Students spent the day doing hands-on activities to help them learn more about the environment and what they could do to help reduce negative impacts on the Great Barrier Reef and its catchment area. At the Burdekin event, Wilmar Sugar representatives also teamed with Burdekin Shire Council to help teach the students how to make a worm farm out of sugarcane mulch. Wilmar Sugar is always keen to assist schools with environmental initiatives having provided money to support various environmental projects at St Catherine s Catholic College at Proserpine and enabling the Burdekin School to buy two wheelchair-accessible garden beds. Mackay Sugar s custom-built sunscreen trolley provides access to free sunscreen for the community at the local Harbour Beach. Photography: Mackay Sugar Classical music sounds sweet for Mackay Despite not being held among the cane fields due to wet weather, Mackay Sugar s inaugural 2012 Classical in the Cane Fields event still managed to captivate the 700-strong audience with a unique array of musical performances featuring some of the best local and national acts. Wowing the crowd was electric violinist Shenzo, with his death-defying airborne acrobatics performed on a bungee trapeze, and Sydney-based group Aston, with their classical renditions of modern pop songs. Another crowd favourite, delighting the audience with their angelic voices and energetic instrumental pieces was 2012 Golden Fiddle Awards winner Quatro, a young female quartet. Classical in the Cane Fields is just one of the many initiatives under the Mackay Sugar Community Support Program and gives the community an annual event the whole family can enjoy. More than 700 people converged at the wet weather alternative Mackay Entertainment and Convention Centre for the inaugural concert on Saturday 14 July The event returned in 2013 on Saturday 6 July. Wilmar Sugar s Kylie Newman involved in the EcoChallenge as part of the Reef Guardians program. Photography: Wilmar Sugar Classical in the Cane Fields. Photography: Mackay Sugar North Queensland s Marine Park. Photography: Grail Films Wilmar Sugar s John Dal Ponte involved in the Reef Guardian program with Burdekin school kids. Photography: Wilmar Sugar 27

30 Photography: Spirit Price Refining and Nutrition Every year between 75% and 80% of Australia s raw sugar production is exported. The balance is refined with a further 3 5% of raw sugar exported after refining. The total domestic demand for refined sugar is approximately 900,000 tonnes, with 81% purchased in the food and beverage sector, 13% in the retail sector and the remaining 6% in food service. The market for refined sugar grows increasingly challenging year on year, driven by competition from refined sugar imports, consolidation of major customers in the food sector, retailers price competition and a new generation of high intensity low or no calorie sweeteners. In addition, constant negative media coverage appears to be taking its toll on the industry. Consumption Australian sugar refiners and CANEGROWERS commissioned an independent report by Green Pool Commodity specialists, to investigate the trends around sugar consumption in Australia. This report considered sugar consumption from two categories refined sugar and sugar in manufactured foods. It includes all available sources of sugar, such as household use, processed foods, beverages, alcohol, takeaways, convenience foods and restaurant meals. Further, the report considers alternative sweeteners, including honey, glucose, syrups, fructose and high fructose corn syrups. However, high intensity sweeteners were not considered, as this information is not readily available. The longer term trends clearly indicate that Australian sugar consumption is declining by 15 kilos per capita over the past 60 years. Between 2004 and 2011, the average consumption per capita dropped 9.3%. Per capita consumption of sucrose is seen to be decreasing, while the overweight and obesity rates continue to climb. This has been termed by some academics as the Australian obesity paradox. It supports the balance of evidence that concludes sugars are not a direct cause of obesity. Domestic market The domestic market continued to remain soft during 2012, once again driven by the wet and cooler weather in Queensland and New South Wales. Despite the hotter weather in the southern states, consumption of soft drinks and beer have continued to decline. Food sector sales remained strong, despite several manufacturers having moved their production offshore. Confectionery sales continue to grow, with no major changes in company ownership during the year. Similarly, the food service sector continued its growth on the previous year s, and competition in this sector has increased. Retail sales, however, dropped by 3% in the last year, despite ongoing price wars between Woolworths, Coles and Aldi. Aldi and Costco both opened new stores in Export market Export sales during 2012 of approximately 200,000 tonnes were consistent with 2011 sales. Approximately 150,000 tonnes moved to Singapore, with most of the balance to Asia. Trials of bulk containerised sugar continued throughout the year to Europe under the IPR Scheme, with ongoing interest from major sugar users. Imports of refined sugar into Australia increased again in 2012, with over 60,000 tonnes received. Half of this volume moved into South Australia and Western Australia through bulk containers, with the remainder in the eastern states, mainly in 25 kg bags. One large multinational company has contracted all of its sugar crystal requirements as import for 2013, all 23,000 tonnes. The high Australian dollar and carbon tax were significant contributors to this decision, with the imports originating from Thailand and Malaysia. Raw sugar is piled high at Sugar Australia s Yarraville refinery in Melbourne. The sugar storage provided the backdrop to Frans Oelofse s photo of this operator from the Yarraville refinery that took out first prize in the ASMC 2012/13 photography competition. Photography: Frans Oelofse 28

31 Protecting the sugar industry s licence to do business Correcting the media s often incorrect claims about sugars in the diet and tackling the sugar is toxic health messages is part of Dr Mary Harrington s role as Nutrition Communications Manager at Sugar Australia. Dr Harrington engages with key stakeholders in the sugar and health environment in Australia and New Zealand to discuss the scientific facts about sugars and challenge misinformation. Such stakeholders include consumer groups, dietitians, nutritionists and the food industry, academics, government departments and politicians. Our ultimate aim is to protect the sugar industry s licence to do business. We do this by developing relationships with key opinion leaders to discuss the scientific facts about sugar, encouraging a balanced and evidence-based view. We address frequently asked questions and develop educational material. Some of the discussions we have been involved in include how sugars are represented in the new dietary guidelines for Australians, whether sugar should appear on the nutrition label on the front of a food packet, and the findings of the Green Pool Report showing the declining per capita consumption of sugar in Australia. Our long-term strategic plan for nutrition communications activities also includes research. We have opportunities to support this work, for example by commissioning detailed analysis of the government s National Health Survey, which is due out later this year. This will tell us how much sugar Australians are eating, which foods and drinks it is coming from, and whether intakes have really increased a lot over time, as we are often led to believe, Dr Harrington said. Dr Harrington joined Sugar Australia as the Nutrition Communications Manager in August For six years prior she worked in similar roles in London. She has a degree and PhD in nutritional sciences and a strong research background. Sugar Australia is the country s leading supplier of quality refined sugar products producing more than 700,000 tonnes of refined sugar a year, from its two refineries in Melbourne and Mackay. The science shows sugars are not toxic and have a long history of safe use in food and drink. The World Health Organization and other authorities agree sugars can be included in a healthy balanced diet. Dr Mary Harrington, Sugar Australia Sweeteners Overall, retail sweetener sales are stable, but stevia is emerging as the preferred tabletop sweetener, gaining market share from artificial sweeteners such as saccharine, aspartame and sucrolose. However, the use of stevia in drinks and food is still limited, due to its bitter aftertaste. A new tabletop sweetener, made from monk fruit, was launched at the end of PHOTOS TO BE CONFIRMED Bottling syrup at Sugar Australia s Yarraville plant. Photography: Frans Oelofse 29

32 Photography: Sugar Research Australia Research, Development and Extension Reform This year sees the culmination of three years of formal review and reform of sugar research, development and extension (RD&E). The reform was led under the banner of the Australian Sugar Industry Alliance (ASA), with founding members Australian Sugar Milling Council and CANEGROWERS working closely together through a comprehensive, complex and far-reaching program. Consideration of this reform effort started many years earlier, with analysis around organisations and performance referenced as early as 2003 in industry publications. Reform of the RD&E sector is really a further progression and modernisation of the sugar industry arrangements and structures more generally. Until relatively recently, there was central control of production, marketing, support services and pricing in the Australian sugar industry. The Port Jackson Partners report in February 2011 stated While industry efficiency has been improved as a result of deregulation, its legacy continues to shape expectations and behaviours in relation to the RD&E effort. The drivers for change Changes to RD&E arrangements had widespread support by growers, millers and researchers but there was no common view as to what needed to change, or how to go about it. The Australian sugar industry is a moderate-sized industry that was operating with three separate industry-backed organisations involved with RD&E. There was no centre for top-level research strategy development and the research bodies separately were not performing as the industry wanted or expected. In 2010 growers and mills recognised that additional investment in RD&E might be warranted but not with the existing arrangements. There was a strong industry expectation that it was time for one research organisation, funded equally by growers and mills on a stable, viable basis, with a clear set of RD&E investment priorities. Consultation, communication, and more consultation From August 2010, Port Jackson Partners (PJP) undertook detailed analysis of industry RD&E programs, funding and the investment priority-setting process. PJP conducted structured interviews with around 80 individuals and analysed material from BSES, SRDC, SRL, Productivity Services and others. They also conducted an industry workshop and met with boards of industry organisations. PJP worked under a committee of the ASA, the Review Steering Committee. PJP brought down a series of high level recommendations in February 2011, including three reform options ranging from minimal to far-reaching change. This work, particularly the financial analysis and high level recommendations, provided the basis for the next level of detailed consultation, communication and reform implementation. Dr Sandra Welsman was commissioned in May 2011 as the principal architect, adviser and driver of the mechanics of reform, working to the Reform Project Group. From June to September 2011, Dr Welsman received more than 100 written inputs and conducted more than 80 meetings with individuals 30 and groups to develop the Australian Sugar Industry RD&E Reform Report, Proposals and Implementation Points. This Report was endorsed and adopted by CANEGROWERS, the Australian Sugar Milling Council and the ASA in October 2011, and became the foundation and the timetable for the reform program. A proposal was taken to the industry through a series of small meetings in November and December 2011 and open industry meetings from January to March 2012 that reached around 1,000 participants across Queensland and Northern NSW. This proposal set out the reform points and timetable, including the conduct of an industry-wide ballot to seek the formal support of all growers and mills. If the ballot was successful, it would lead to a formal application to establish Sugar Research Australia with a target start date of mid Industry research priorities A major goal for ASA as part of the 2011 element of the reform was the identification of a clear and weighted set of research investment priority areas. This culminated in the publishing of a two-page Statement on Priorities for Research to guide investment from 2011 to 2014, with a focus on three key areas for action through focused research: industry growth need to stop decline and build to 36 million tonnes of cane per annum cost and profitability of sugarcane and sugar productions, across different types of farms and mills environmental and regulatory pressures, including water. With the establishment of Sugar Research Australia and a larger contestable research funding pool, ASA anticipates an opportunity to further review the industry priorities-setting process. It is important the industry and Sugar Research Australia begin to incorporate quantitative and more sophisticated methods to contribute to identification of research investment priorities, and a strong benefit-cost analysis as part of the project assessment process. The very clear focus for industry research priorities in the immediate term is research, if successful, that aims to achieve demonstrable outcomes that address the three major issues identified above. The initial proposal an industry-owned company Working to the Australian Government s Levy Principles and Guidelines, and documentation from the Federal Department of Agriculture, Fisheries and Forestry, the Australian sugar industry submitted an Initial Proposal to the Federal Minister for the establishment of an industry-owned company in February This proposal outlined the context of the proposal including issues and efforts to achieve efficient, effective and sustainable sugar industry RD&E, elements of the reform package, including consultation with the industry, and the proposal for the new company and the accompanying statutory levy. It addressed the criteria set out in the Levy Principles and Guidelines, and outlined the funding and financial projections. Finally, the Initial Proposal

33 included points of the Constitution and Statutory Funding Agreement for the proposed new company. The Initial Proposal included the target timetable, with the Sugar Poll in August 2012, and the case to support the start date for Sugar Research Australia of 1 July This proposal sought feedback from the Minister and the Department regarding any elements of the proposal that raised questions, concerns, or areas for further clarification. Formal and comprehensive industry support A major element of the reform of sugar research, development and extension was the demonstrated support of growers and millers who were being asked to fund the new company. In August 2012, 4,441 growing businesses and eight milling companies were asked to vote yes or no on the question: Do you agree to the sugar industry forming a new research company, Sugar Research Australia, and to a statutory levy of 70 cents a tonne of cane delivered each year for Sugar Research Australia activities, with payments split equally, 35 cents a tonne paid by the growing business and 35 cents a tonne paid by the milling business? The result of the poll was clear and overwhelming, with a 77% participation rate by growers and 100% participation by mills. This was possibly the most significant element of the poll: an unprecedented participation rate in a voluntary voting process for a compulsory levy by a rural-based industry of the size of sugarcane. Of those who voted, 84.3% of growers voted yes, as did seven of the eight milling companies representing 99% of the tonnes of cane processed. This demonstration of comprehensive, industry-wide support for the reform program was a driving factor in ultimately delivering the required political impetus and legislative enthusiasm to achieve the 1 July 2013 start date for Sugar Research Australia. While there was a small group of protagonists arguing against change, without offering any positive alternative or constructive criticism, it was impossible to argue against 2,842 growing businesses and seven mill companies who supported a new, modern, invigorated approach to RD&E with a single company, backed strongly by the industry with clear investment priorities and financial security, working for the future of the Australian sugar industry. The State and Federal Government and Parliamentary Process From the very earliest stages of considering reform of RD&E, it was essential the industry had the support of both state and federal governments. The Queensland Government, as a significant investor in sugar RD&E, was an early and consistent supporter of efforts to reform sugar RD&E, to achieve more effective and efficient outcomes for the industry and the community more broadly. Queensland Minister for Agriculture, Fisheries and Forestry, Hon. John McVeigh, provided written support for the reform objectives, and particularly acknowledged the strong Sugar Poll results. The ongoing support of the Queensland Government for sugar RD&E is welcomed by, and critical for, the sugar industry, and the ongoing commitment through investment via Sugar Research Australia is an essential element of innovation and world leading research outcomes. The Australian Government provided a clear and early indication of what was required to form an Industry Owned Company, with documentation in June 2011 plus the Levy Principles and Guidelines. Earliest meetings with then Federal Minister for Agriculture, Fisheries and Forestry, Hon. Tony Burke, in late 2009 made it absolutely clear the industry needed to provide a strong case for reform, evidence of industry support, and work through all requirements of the levy principles. The Hon. Joe Ludwig was the Minister for Agriculture, Fisheries and Forestry who presided over the majority of the formal efforts to establish Sugar Research Australia, including the Initial Proposal in February 2012, the Final Application in September 2012 following the Sugar Poll, and almost all of the legislative process leading to the passage of the requisite Bills in June From September 2012 to June 2013 was a frenetic period of activity for the reform program, with the focus on the legislative and parliamentary process, as well as formation of Sugar Research Australia. The Federal Department of Agriculture, Fisheries and Forestry at an operational leadership level did not have the same urgency and commitment of the sugar industry to achieve implementation of the reform by 1 July It was clear they did not believe the challenging legislative timetable was realistic, or achievable. These misgivings by the Department almost became self-fulfilling, with the final passage of required legislation only occurring at 2.20 pm Friday 28 June 2013, the last day of sitting of the 43rd Parliament of Australia. Ultimately, despite the misgivings of the operational leadership, it was the incredible hard work, commitment and efforts of the levies and policy team, as well as the office of parliamentary counsel, and others involved in the process, that was able to get bills drafted and in front of the parliament for consideration in time for successful passage through both houses. The passage of legislation in such a tight timeframe required support from all sides of politics, including Labor, the Liberal National Coalition, the Greens and Independents. The fact that successful passage was able to be achieved is testament to the strength of the original proposal, the consultation process with industry, and the overwhelming support of the industry, as demonstrated through the Sugar Poll ballot. Along with a large number of other political factors, it was ultimately the support of the Minister of the day, the Hon. Joe Ludwig, and the efforts of Queensland Senator, the Hon. Ian Macdonald, that were able to secure the needed legislative process. and most importantly, Sugar Research Australia The Board of Sugar Research Australia was appointed on 8 May 2013 with the registration of the company, and the various elements required for Sugar Research Australia to commence as the single research company for the Australian sugar industry have occurred since that time. The legislation to enact the statutory levy to fund Sugar Research Australia as the prescribed services body was passed on 28 June 2013, and came into effect 1 July Sugar Research Australia was formally launched on 5 August as the modern research, development and extension organisation for the Australian sugar industry. The first round of contestable funded projects for Sugar Research Australia will be in place by January The Australian sugar industry must now work with Sugar Research Australia to confirm research investment priorities, and ensure our organisation continues to be a world leader in sugar research and innovation. A researcher cultures transgenic sugarcane plantlets grown from embryogenic tissue Photography: Sugar Research Australia 31

34 Spirit of the sugar industry Delighted by the selection of photos spanning a broad range of aspects in the sugar industry, ASMC is pleased to announce the photography competition will return in 2013/2014. This time entrants will be able to submit up to eight photos (at least 2 must feature people) which will be split into the following categories: Valuing our people Value chain Strength of community Landscapes and seascapes Children s The judging panel will choose first prize, and then a winner from each category. In addition to prizes, the winning entries will be published on ASMC s website and showcased in next year s ASMC Annual Review. Children born in 1997 or later are eligible to enter the children s category, and will also be submitted into the open categories. Second Prize: Sharron Barrett Cane toes Third Prize: Richard Curzon In the shed First Prize: Frans Oelofse Yarraville refinery raw sugar operator Children s Prize: Spirit Price Farmer s fresh cane Highly Commended: Mandii Dawson Roller getting poured Highly Commended: Richard Curzon Dad and the boys Highly Commended: Catherine Willett Cane fire the old fashioned way Highly Commended: Jasmine Kirk Old cane farmer and his dog 2012/2013 Photography competition winners For more details, visit 32