Business
14 November, 2023
Mill seeks urgent funding for 2024 crushing season
MOSSMAN Mill’s board and senior management are urgently looking at several options to fund the 2024 crushing season after board chairman Rajinder Singh warned growers that the business’s viability next year was “not assured”.
MOSSMAN Mill’s board and senior management are urgently looking at several options to fund the 2024 crushing season after board chairman Rajinder Singh warned growers that the business’s viability next year was “not assured”.
However, mill general manager Bronwyn Dwyer said the 2024 crush had to go ahead as the crops were already in the ground and growers had already been notified of pricing for next year.
She said Far Northern Milling’s Mossman Mill currently employed between 130-150 employees within the milling operation and supported about 500 indirect jobs in the local community. There were about 85 growers with cane contracted to Far Northern Milling (FNM).
“The reduction in the tonnage and CCS (Commercial Cane Sugar content of cane) from the original 2023 season forecast will result in a drop of around 10,500 tonnes of sugar which has placed the operation of the mill for the 2024 season in jeopardy,” Ms Dwyer said.
“It is imperative that the mill is operational for the 2024 season as growers have forward priced sugar and planted and fertilised the crop for next season,” she said.
“The board of FNM is working with stakeholders to secure the funds required to operate the mill for the 2024 season."
Ms Dwyer said the mill was talking to the state and federal governments about funding, the possibility of a grower’s levy (they already pay $2 per tonne) and/or private funding.
Mr Singh told growers in a letter on November 10 he hoped to update them on the situation next week.
“The viability of the mill for the 2024 season can no longer be assured,” he said.
“This change in position is, in part, a result of the following factors:
Significant reduction in actual crop tonnage as against that which was forecasted at the beginning of the 2023 season
Significant reduction in actual CCS as against that which was forecasted at the beginning of the 2023 season
Extended cane supply stoppages
Adverse weather conditions.
“Given the current uncertainty of the mill operations for the 2024 season, growers should strongly consider whether they continue pricing beyond the date of this correspondence (November 10).
“We continue to engage with QSL in respect of matters concerning grower pricing.
“Given the current uncertainty of the mill operations for the 2024 season, growers should strongly consider their farming and operational expenditure beyond the date of this correspondence.
“We continue to work with our advisors in respect of the financial position of the company, and the viability of the Mossman Mill moving forward.
“We will revert to growers once a path forward becomes clear.”
