Sugar prices internationally continue to trade at a premium, with raw sugar futures reaching their highest levels since October 2016.

Bumper yields in Australia have driven a 29% increase in gross value of production of sugar for 2022–23, according to ABARES. The Australian sugar industry will continue to find support from international markets as increased demand and tight global supplies prevail.

“The Burdekin region usually produces around 8 to 8.5 million tonnes of cane every year and it’s also one if the highest yielding areas in the country,” says Mick Gabiola.

Mr Gabiola is the account manager at Nutrien Ag Solutions Ayr in Australia’s ‘sugar cane capital’.

“It’s a really good time to be in the sugar cane industry, with high sugar prices setting the scene for another bumper year for our growers,” Mr Gabiola said.

Global sugar consumption continues to grow, fuelled by the expansion of ethanol production in key markets.

ABARES predicts Australian sugarcane exports are expected to decline by 5% in 2023–24 to $2.4 billion on the back of reduced production due to anticipated seasonal constraints on yield. However, the prevailing market conditions should see prices and returns for growers to remain on the high side for the season ahead.

Mr Gabiola said additional factors are having an adverse impact on the season’s potential.

“We’ve seen a steady start to the year. A lot of the crops were cut late last year due to the very wet late part of the season we experienced. Therefore, the cane that returns late isn’t getting the growth and time it needs to produce a higher-yielding crop.

“This is probably impacting around a third of our local crop, the rest was planted early and cut early and is looking really good.

“The CCS (sugar content) is generally pretty consistent in the Burdekin region, it normally sits around 14.5 and we are anticipating that to remain again this year.”