Faced with increasing market pressures and volatility, the Australian sugar industry needs to challenge the status quo if it is to secure a sustainable and profitable future, according to the Australian Sugar Milling Council (ASMC).
Releasing the latest edition of its Sugar Policy Insights publication, ASMC CEO David Pietsch said sugar manufacturers hoped to kick-start debate on the industry’s recent performance, and for it to work collectively on addressing future challenges and opportunities.
“We are calling on the industry and government to support development of a 10-year revitalisation strategy to drive the industry forward,” Mr Pietsch said.
ASMC Director of Policy, Economics and Trade David Rynne said that despite the potential, our industry has not been able sufficiently to diversify and grow its revenue base, mitigate risk and create arbitrage opportunities.
“We do not have a state or federal policy framework or industry plan in place to support and encourage diversification,” Mr Rynne said.
“Global raw sugar prices have fallen on average 2 percent per year in real dollar terms since the 1970s.
“Australia has not been able to diversify revenues, increase cane and sugar production or productivity sufficiently to offset the (real) price fall of raw sugar.
“A revitalisation strategy is urgently required and ASMC plans to stimulate debate with industry participants and governments in the coming months,” added Mr Rynne.
19 February 2019