SUGAR prices have hit $804/tonne, sending Queensland growers into harvest with a renewed sense of optimism, and a little trepidation.
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Canegrowers chairman Owen Menkens said the price spike and drop in fertiliser prices had set up 2023 as a bumper year for the industry.
"Just two years ago the sugar price languished below $400/t, not even covering the cost of production for many growers. It was a pretty grim time," Mr Menkens said.
"Fast-forward to today and that figure has doubled, with the prompt price hitting highs of $804/t in mid-April."
The last time sugar prices cracked $800/t was in 1980, more than 40 years ago.
Mr Menkens said there were two other pieces to the puzzle: 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 during the growing season and no cyclones."
Mill performance was a thornier issue, he said.
"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," Mr Menkens said.
Queensland's cane growers are unique in the global industry as they are the only growers in the world who can forward price for seasons to come.
As of mid-April, growers could forward price their 2023 sugar at $756/t and their 2024 sugar at $651/t.
Mr Menkens said adding to growers' excitement was a fall in fertiliser prices, which had skyrocketed in recently due to the war in Ukraine, and had largely negated surging sugar price.
However, declining demand and a drop in natural gas prices, had seen fertiliser prices fall on the global market.
"These falls haven't filtered through to the local market yet, as resellers offtake old, highly priced stocks," Mr Menkens said.
"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," Mr Menkens said.
Mr Menkens said growers were now hoping for favourable harvesting weather and for mills to remain on track.
"An extended season isn't good for anyone," he said.
"Growers lose out as the sugar content of 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. And 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 in 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."
