Independent economic analysis commissioned by the Australian Sugar Milling Council has revealed a total direct and indirect economic contribution of $852 million from the sugar manufacturing sector in the Townsville, Hinchinbrook and Burdekin local government areas (LGAs) in 2017-18, underpinning a total of 4,615 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 LGA.
“Direct sugar manufacturing spend of $633 million at the Macknade, Victoria, Kalamia, Invicta, Pioneer and Inkerman mills generated significant community benefits in the region,” ASMC’s Director of Economics and Trade, David Rynne said today.
“Sugar mills in the region pay wages to 1,352 employees, purchase cane from local sugarcane growers, and also contract 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 mills’ direct expenditure allowed the total (combined direct and indirect) economic impact to be estimated.”
Manufacturing contribution
The six mills in the region had a combined production of 1.8 million tonnes of raw sugar in 2017.
The Lawrence Consulting analysis showed that sugar manufacturing contributes about 54% to the Hinchinbrook economy and 52% to the Burdekin economy in terms of Gross Regional Product.
“Wilmar has invested hundreds of millions of dollars in their six mills since assuming ownership in 2010 to make them operationally and globally competitive,” Mr Rynne said.
“Currently, they also have 171 megawatts of installed renewable energy capacity from firing biomass (bagasse/cane residue), exporting more than 300,000 MWh into the Queensland electricity grid in 2017. That’s enough to power around 43,430 private dwellings or around half of all the homes in the three LGAs.”
Sugar manufacturing suppliers
A local example of a supplier benefiting from a strong sugar manufacturing sector is Zarb Road Transport in Ayr.
“My father Casey started Zarb Road Transport in 1966 and it continues proudly today as a family-owned and operated business servicing the sugar industry in the Mackay, Burdekin and Herbert districts,” says General Manager David Zarb.
“We cart all things sugar from cane to manufactured products with a fleet of more than 60 prime movers and upwards of 110 employees operating from fully-equipped facilities in Mackay and Ayr.
“Being family owned and operated we know that relationships are key and we strive to achieve consistency in everything we do by continually strengthening our ties with our customers, suppliers and employees.
The General Manager of the Townsville-based Wulguru Group, Wayne Landrigan said the locally owned steel fabrication company had enjoyed a productive association with sugar manufacturing since 1976.
“Whilst we have undertaken numerous projects over the years, the design, fabrication and installation of a 70 metre stack at Macknade Mill is one example of the expertise that we have developed for the sugar manufacturing sector, which in turn has helped make Wulguru Group one of the largest steel fabrication companies in Northern Australia,” he said.
“With over 200 staff in Townsville and Brisbane to service the sector, we are delighted to see the contribution of sugar manufacturing being recognised in Queensland and the communities in which they operate,” Mr Landrigan added. ”
- Media release
- Infographic/Profile Townsville
- Infographic/Profile Hinchinbrook
- Infographic/Profile Burdekin
21 January 2019