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Sugar Manufactures Sweet Dividends For Fraser Coast

Independent economic analysis commissioned by the Australian Sugar Milling Council has revealed a total direct and indirect economic contribution of $101 million from the sugar manufacturing sector in the Fraser Coast region in 2017-18, underpinning a total of 490 regional jobs.

Using sugar mill spending data grouped by postcode, respected analyst Lawrence Consulting was able to calculate and quantify the sugar manufacturing sector’s contribution last financial year by Local Government Areas.

“Direct sugar manufacturing spend of $80 million by the Maryborough mill generated significant community benefits in the Fraser Coast Regional Council area,” ASMC’s Director of Economics and Trade, David Rynne said today.

“The sugar mill pays wages to 207 employees, purchases cane from local sugarcane growers, and also contracted many local businesses to provide the goods and services required to run and maintain raw sugar manufacturing,” Mr Rynne added.

“Modelling the flow-on effects of the mill’s direct expenditure allowed the total (combined direct and indirect) economic impact to be estimated.”

Sugar manufacturing suppliers

A local example of a supplier benefiting from a strong sugar manufacturing sector is Bundaberg Walkers Engineering, which constructs heavy industry equipment across Australia and around the world.

“Bundaberg Walkers is synonymous with the sugar industry in Queensland and internationally where its original custom-built manufacturing equipment is in constant demand,” said General Manager Enio Troiani.

“Bundaberg Walkers has made everything from cane haulage locomotives, to ships, to the largest sugar mill in the world, which is a massive achievement for a regional business,” Mr Troiani said.

“In addition to our sugar work, Bundaberg Walkers’ core staff of 110 has a wide range of experience in general engineering thanks to its diverse, home-grown manufacturing and technical capability.”

Infographic profile for Fraser Coast

At a Glance: Fraser Coast LGA

Direct expenditure of $80 million comprising:

· $5m in purchases from 270 local businesses (non-cane)

·$63m in purchases from 334 cane enterprises with 129 cane-related workers

·$12m in wages to 207 staff at the Maryborough mill (MSF Sugar)

Indirect/flow-on gross regional product (GRP) of $21m

·supporting an estimated additional 154 jobs

Direct and indirect $101 million in total economic benefits (GRP) and approximately 490 jobs supported

At a Glance: QUEENSLAND (2017-18)

Direct expenditure of $2.24 billion comprising:

·$686m in purchases from 5,551 businesses (non-cane)

·$1.21b in purchases from 4,305 cane enterprises with 4,554 cane-related workers

·$353m in wages to 4,591 milling staff

Indirect/flow-on gross regional product (GRP) of $1.81b

·supporting an estimated additional 13,512 jobs

Direct and indirect $4.05 billion in total economic benefits (GRP) and approximately 22,657 jobs supported

21 January 2019