AUSTRALIAN CANE FARMERS 37
SECTION 5 The Association ORGANISATIONAL STRUCTURE Association Ltd Level 16, 97 Creek Street Brisbane QLD 4001 Postal address: GPO Box 608, Brisbane QLD 4001 Phone: 07 3303 2020 Freecall: 1800 500 025 Fax: 07 3303 2024 Email: info@acfa.com.au Website: www.acfa.com.au Ross Walker, ACFA Chairman, Central Region Director Ross has been farming since 1976 in the Pleystowe area and supplies cane to Mackay Sugar Cooperative. Ross has held director positions with a number of rural organisations including Chairman of a Mackay based co-operative. He was appointed to the ACFA Board of Directors in 1994 and became Chairman in April 2001. Ross is the ACFA representative member of Queensland Sugar Ltd and represents ACFA to all industry bodies. Ross is also currently a member of the Central District Regional Advisory Group (RAG). Phone: 07 4954 3126 Robert Quirk, NSW Region Director Mob: 0413 677 727 John Blanckensee, North Queensland Director John began canefarming over 30 years ago and runs a 95 hectare farm in Innisfail. John s farm crushes around 8000 tonnes per year and he supplied cane to Bundaberg Sugar s Mourilyan Mill. John began his appointment as ACFA NQ Director in March 2000. Phone: 07 4061 2034 Don Murday, Far North Queensland Director Don is a fourth generation cane farmer who began farming in 1981. Don s farm supplies around 12,500 tonnes of cane each year to the Mossman Central Mill. Don is a director of the Mossman Central Mill and has completed a leadership diploma with the Institute of Company Directors. Phone: 07 4098 1635 Margaret Menzel, Burdekin Director Phone: 07 4783 4776 38 AUSTRALIAN SUGARCANE ANNUAL
Carol McKee, Herbert Director Phone: 07 4777 4957 ACFA staff Stephen Ryan, General Manager SECTION 5 John Camilleri, Central Region Director Phone: 07 4959 8095 Paul Walker, Communications Manager Tobias Wade, IT Officer Michael Hetherington, Southern Region Director Phone: 07 4126 9118 Julie Christensen, Financial Officer Jade Mackey, Administration Officer AUSTRALIAN SUGARCANE ANNUAL 39
SECTION 5 Ross Walker. Chairman s comments The year 2008 09 has seen the industry under continued pressure on many fronts and there have been significant structural changes. The global sugar price was volatile and, in the past 12 months, ranged from a low of US 11.95 cents per pound to a high of US 26.25 cents per pound. The global financial crisis, Brazil s decisions on sugar vs. alcohol, US ethanol production and India s farmers decision to move out of cane production were all factors that contributed to ICE No11 price movements contrary to the market supply and demand fundamentals. But the strong price rise during mid was driven largely by a supply shortage caused largely by the failure of the monsoon season in India and a wetter than normal harvest in Brazil during the second half of. During 2008, the global financial crisis saw liquidity dry up resulting in index funds and speculators withdrawing from the sugar market. The dollar declined against the US dollar which improved export returns to farmers overall. But during, liquidity returned to the sugar market which was positive and the dollar again strengthened against the US dollar which reduced returns to the industry. Global freight rates declined significantly during 2008 reducing the far-east premium for the majority of Australia s exports. But during freight rates started to strengthen again. Queensland production for 2008 09 was 30.17 million tonnes producing 4.3 million tonnes of IPS sugar. The area harvested was 353 428 hectares, down 15 000 hectares on the 2007 08 crush. This is a disturbing trend and some millers have introduced schemes to bring land back in to production. The season was looking good early on with high CCS levels being recorded. New South Wales harvested 1.93 million tonnes for 2008 09 which was disappointing due to negative impacts from frost, flooding and delays with commissioning the new cogeneration plants at Condong and Broadwater mills. The crushing was progressing well. Industry Restructure Farmers are continuing to depart the industry and large areas of land are going out of cane to other agricultural, urban and lifestyle uses. The higher prices during saw the industry s optimism climb and the area to be harvested for 10 season should increase slightly due to a combination of smaller fallow areas and some new ground being brought into production. Biofuels The biofuels industry needs effective leadership from all levels of Government and definitive policies are required for renewable energy to play a role in reducing greenhouse gas emissions. CSR Limited upgraded its ethanol distillery in Sarina in June 2008 which allows it to produce 60 million litres of fuel grade ethanol each year. The upgrade cost $17.8 million and was completed during. Fertiliser, chemical and fuel prices continued to reduce the viability of farmers with prices skyrocketing throughout 2008. But during, the price of fertilizer reduced dramatically due to falling demand as a result of the global financial crisis. Unfortunately, these lower prices may not last long. Environment Recently updated research has lead to some scientists claiming that soil, nutrient and chemical runoff from agricultural and municipal land use along the Queensland coast is having a detrimental and extensive effect on the Great Barrier Reef. But this is disputed by other scientists who claim the effects are miniscule. Queensland Premier Anna Bligh has stated that voluntary self-management has not worked and has imposed strict regulations. ACFA has previously stated that the legislation should be halted, allowing a chance for a fair attempt at voluntary Best Management Practice (BPM) under the Federal Reef Rescue Plan. During the latter half of, the State Gov- 40 AUSTRALIAN SUGARCANE ANNUAL
ernment introduced legislation into Parliament that will affect all farms in central and northern Queensland. Farmers will know by the end of the practical effect of the legislation. Opportunities in R&D The Sugar Industry Alliance (ASA) has proposed merging the BSES and SRDC into a restructured BSES. Considerable savings have been identified which ASA argues will lead to a more focused and efficient outcome. In the future, Sugar Research Limited at Queensland University of Technology may also be incorporated into the restructured BSES. The SRDC received $2 million from the Rural Communities Program and this money will be spent over the next three years funding the Smutbuster project. The Sugar Industry Alliance (ASA) ASA was formed in September 2007 to promote and advance the development of a commercially vibrant, sustainable and self-reliant raw sugar and sugar cane derived products industry. The Organisation has two Committees Trade and International Relations and Research. The Research Committee has made two recommendations: The industry adopts a seven stage proposal to set industry strategy and the SRDC is to investigate the options to progress this strategy. The BSES and SRDC merge into a single industry owned Company. ACFA was offered Associate membership and has declined. The current structure is hierarchal and discriminates against such membership. ASA s constitution and structure needs a complete overhaul before ACFA will accept membership. Some changes are being considered by the ASA Board. Opportunities and Threats to sugar cane farming from climate change policy The final Garnaut Review was released late in 2008 and presented the potential impacts of climate change on the economy and recommended policies to minimise costs and maximise benefits to the nation. The Report says agriculture has a role to play in mitigating climate change. The Federal Government is considering a range of ways to address climate change and in December 2008 released details of the Carbon Pollution Reduction Scheme (CPRS). Agriculture is to be excluded when the Scheme commences in 2011 with a decision on permanent exclusion or inclusion to be announced by 2013. ACFA will be liaising closely with the Federal Government as the CPRS has the potential to increase costs for many farm inputs including fertiliser, fuel, electricity, water and transport. The Future dollar returns for the season are encouraging and futures prices appear strong as global demand has overtaken supply. The world financial crisis will have mixed results for our industry. Brazil may encounter problems funding projected growth and this is a positive for world sugar prices. On the negative side, low oil prices may see Brazil divert more production to sugar and less to ethanol in the short term. But the long term trend towards ethanol should continue. The second half of saw both oil and sugar prices stronger. Speculator activity initially declined and reduced liquidity and the amount of forward pricing available to millers and farmers. This was turned around somewhat during and augers well for the industry moving forward. The global financial crisis seriously affected MIS forestry schemes and their impact on our industry should decline, at least in the short term. The decline in the value of the dollar against the US dollar and world consumption overtaking production were cause for cautious optimism. During the second half of, the dollar was quickly strengthening. The raw sugar market in the year ahead shows the European Union (EU) importing three million tonnes or more in contrast to exports of six million tonnes a couple of years ago. Similarly India may import in contrast to large exports last year, but their 10 crop should be significantly better. Ross Walker, ACFA Chairman SECTION 5 AUSTRALIAN SUGARCANE ANNUAL 41