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1 Introduction
In April 2008, ABARE conducted a survey of sugar cane growers on behalf of the Sugar Industry Oversight Group (IOG) and in collaboration with Canegrowers. The survey was funded by the Australian Government Department of Agriculture, Fisheries and Forestry. This survey is a follow up to the 2005-06 survey, collecting data for the 2006-07 financial year from 328 growers. In addition, 313 growers provided detailed forecasts for the 2007-08 financial year.

This report presents detailed physical and financial performance indicators for sugar cane growers by region for the three financial years spanning 2005-06 to 2007-08. A more detailed set of regional estimates is available on ABARE’s website (www.abare.gov.au). Results from the survey are designed to provide information about farm costs, production, financial performance management practices and future intentions.

The Australian sugar cane industry is located mainly along Australia’s eastern coastline, from Mossman in far north Queensland to Grafton in northern New South Wales. In 2006-07, a small quantity of sugar cane was produced in the Ord River region of Western Australia. However, closure of the mill meant sugar cane production ceased in this region in 2007-08. Sugar cane farms in the Ord River tended to be larger than else where in Australia.

Over the past decade, increased sugar supply from major exporting countries like Brazil has put downward pressure on prices in Australia’s export markets, and subsequently on returns to Australian sugar cane growers. In part reflecting this, there has been a steady exit of growers from the sugar cane industry during the 2000s, resulting in the area planted to sugar cane in Australia falling by 12 per cent since its peak in 2003-04 at 448 000 hectares (figure a). However, Australian sugar cane production fell by only 1 per cent to 37 million tonnes in 2007-08, largely reflecting the exit of small producers and the expansion of larger producers who generally realise higher yields.

In 2005-06, Australia had slightly more than 4800 sugar cane growers, with 65 per cent of these producers growing less than 7500 tonnes of sugar cane per farm. Collectively, these producers represented just 25 per cent of Australia’s sugar cane production (table 1). In contrast, only 3 per cent of growers produced more than 30 000 tonnes of sugar cane per farm, accounting for 22 per cent of national sugar cane production. In 2007-08, the decline in sugar cane profitability resulted in the number of sugar cane growers falling to around 4100, with a high proportion of small sugar cane producers having exited the industry (table 1). Between 2006-07 and 2007-08 the number of growers producing more than 30 000 tonnes per farm has remained at around 108 growers, or 20 per cent of national production, as some medium to large producers expanded and offset the impact of the loss of large producers in the Ord River.
1 Distribution of farms, by quantity of cane produced, 2005-06 to 2007-08
 
sugar cane growers
number of growers surveyed
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2005-06
2006-07
2007-08 a
2005-06
2006-07
2007-08 a
no.
no.
no.
no.
no.
no.
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Quantity of sugar cane produced
Less than 7500 tonnes
3 130
2 643
2 622
106
147
143
7500 to 15 000 tonnes
1 035
1 013
1 044
89
106
99
15 000 to 22 500 tonnes
349
293
279
44
41
38
22 500 to 30 000 tonnes
151
83
85
22
14
13
30 000 to 50 000 tonnes
105
59
70
17
10
12
More than 50 000 tonnes
49
46
38
12
10
8
Total
4 819
4 138
4 138
290
328
313
 
share of growers
share of production
spacer
2005-06
2006-07
2007-08 a
2005-06
2006-07
2007-08 a
%
%
%
%
%
%
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Quantity of sugar cane produced
Less than 7500 tonnes
65
64
63
25
28
28
7500 to 15 000 tonnes
21
24
25
28
30
31
15 000 to 22 500 tonnes
7
7
7
16
16
15
22 500 to 30 000 tonnes
3
2
2
10
6
7
30 000 to 50 000 tonnes
2
1
2
10
6
8
More than 50 000 tonnes
1
1
1
12
14
12
Total
100
100
100
100
100
100
 
a Includes producers who provided projection estimates for 2007-08.