The 2023 sugarcane crush is just weeks away and once again growers are heading into harvest with a sense of trepidation and optimism.
While Queensland’s sugar mills are yet to release their official crop estimates, we expect an above average crop in most regions.
This is excellent news for growers, especially given the incredible rise of the world sugar price in recent months.
Just two years ago the sugar price languished around the $350-$400 per tonne mark, not even covering the cost of production for many growers.
Fast-forward to today and that figure has doubled, with the 2023 season sugar price hitting highs of almost $760 per tonne in mid-April.
The last time we saw prices like this was in 1980, more than 40 years ago, and growers are understandably excited.
Adding to this excitement is a fall in global fertiliser prices, which had skyrocketed in recent years due to the war in Ukraine.
The rise, which saw the price of urea more than double, all but negated any positive impact of rising sugar prices.
However, thanks to a recent decline in demand and a drop in natural gas prices, fertiliser prices are falling on the global market.
These falls haven’t filtered through to the local market yet, as resellers offtake old, highly priced stocks. But if fertiliser prices continue to drop, sugarcane growers should find their input costs significantly reduced when it comes time to fertilise ratoons around August/September.
With rising sugar prices and falling input costs, we need just two more pieces of the puzzle to fall into place to make 2023 a bumper year for Queensland’s sugar industry – weather and mill performance.
Of course, we can’t control the weather, but so far Mother Nature hasn’t been too harsh, with plenty of rain and no cyclones.
Mill performance is a thornier issue, however, and one that is particularly worrisome for growers.
A combination of wet weather and poor mill performance in 2022 saw the crushing season blow out by four to six weeks in some districts, with harvesters cutting right through Christmas and well into January.
An extended season isn’t good for anyone. Growers lose out as sugar content in their cane declines, making harvesting uneconomical. Unharvested cane also has a negative knock-on effect on future seasons.
Mills also lose out, as they produce less sugar but must keep up staffing and maintenance levels. They also have a shorter off-season to carry out vital maintenance and capital works.
Growers have put in the time, effort, and money over recent months to ensure a good crop is ready for harvest.
We know that mill staff across our districts are working feverishly with local contractors and suppliers to try to meet their maintenance schedules.
It is in everybody’s interest to pull together and work towards getting this next crop off in a timely and efficient manner.
This industry sees our greatest prosperity when we pull together and, from what I’ve seen from our growers, harvesting crews, and mill staff, I know that is what everyone is striving towards.
The success of the coming season hinges on the efforts we put into now. If we can all rise to meet this challenge, and Mother Nature is kind, 2023 can be a fantastic year for Queensland’s sugarcane industry.
