Foreword

Summary

Introduction

Physical characteristics of sugar cane farms

Financial performance of sugar cane producers

Farm management practices

Concluding comments

Appendix A

Excel data

Download pdf

3 Financial performance of sugar cane producers

Farm cash receipts

In 2006-07, farm cash receipts rose, on average, by 29 per cent to around $363 000 a farm, principally because of increases in sugar cane production and prices (tables 2 and 4 and figure b). On average, sugar cane receipts accounted for three-quarters of total farm cash receipts, with the remainder being generated by the sale of other crops (particularly fruit and vegetables) and beef cattle. Larger sugar cane producers realised a greater increase in the average price received for sugar cane in 2006-07 (figure b). On average, growers producing more than 30 000 tonnes of cane per farm realised a price increase of between 25 and 29 per cent to average around $36 a tonne. In contrast, growers producing less than 7500 tonnes per farm realised a price increase of 18 per cent to slightly more than $32 a tonne. In 2007-08, the sugar cane price received by growers fell, on average, by 21 per cent to $26 a tonne, resulting in producers of all scales realising prices that are well below the 2005-06 levels (figure b). This is estimated to have resulted in farm cash receipts falling, on average, to $295 800 a farm.

Sugar cash costs of production

In 2006-07, sugar cane production cash costs averaged $181 000 a farm, ranging from almost $80 000 a farm for small scale producers (those producing less than 7500 tonnes) to around $2.2 million a farm for growers producing more than 50 000 tonnes (table 5). Across all farms, contract harvesting and fertilisers were the largest cost items, accounting for almost half of total sugar cane related production costs. Outlays on these inputs increased, on average, by 13 per cent and 28 per cent respectively as contract harvesters passed on higher labour and fuel costs and, in the case of fertilisers, because of further increases in world prices. Higher fuel prices also resulted in sugar cane producers, on average, spending 25 per cent more on freight and 23 per cent more on fuel, oil and grease in 2006-07. Sugar cane growers producing more than 50 000 tonnes of sugar cane per farm spent almost $300 000 a farm on hired labour in 2006-07, which is around three times more than in 2005-06 (table 5). In 2007-08, further input price rises are estimated to have resulted in sugar cane cash production costs increasing, on average, by 5 per cent to around $191 000 a farm. However, the survey results suggest many producers responded to an 80 per cent increase in fertiliser prices by reducing application rates in 2007-08 and purchasing less to be used on the 2008-09 crop. Despite this, higher input costs are estimated to have resulted in fertiliser costs rising by a further 15 per cent in 2007-08. Higher fuel costs also boosted outlays on fuel, oil and grease by 13 per cent and freight by 3 per cent. Producers responded to rising production costs by deferring non-essential repairs and maintenance and, in some cases, reducing outlays on hired labour. Overall, the average cost of production in 2005-06 is estimated to have been $18.30 a tonne. The 2007-08 survey results indicate the average cash cost of production increased to $22.0 a tonne in 2006-07 and $23.20 a tonne in 2007-08. In all three years there was considerable variability in the estimated unit cash costs of production between sugar growing regions and size groups (figures c and d). In 2005-06, average unit cash cost of production fell from almost $20 a tonne for producers growing less than 7500 tonnes per farm to around $17 a tonne for large producers (production exceeding 30 000 tonnes of sugar cane per farm). This suggested there was the possibility of relatively strong economies of scale in sugar cane production. While the two additional years’ data also indicates that unit cash cost of production fell as production increased, the strength of the economies of scale is much less, particularly once production exceeds 30 000 tonnes of sugar cane per farm (figure c). In this analysis, data for producers in the Ord River was excluded from the 2005-06 estimates, so as to ensure a consistent basis for comparison over the 2005-06 to 2007-08 period.

Unit costs of sugar cane production were the lowest in the Herbert River region and highest in the Bundaberg region in 2005-06 (figure d). In 2007-08, the steady increase in the cost of some of the main inputs resulted in unit cash costs increasing in all regions, with the largest increases occurring in the regions with the highest concentration of small producers - for example southern Queensland and Bundaberg. While growers in the Herbert River region still have the lowest production costs in Queensland, unit costs in New South Wales are now the lowest in Australia. Producers in New South Wales have limited their cost increases in recent years by expanding the area sown and by deferring non-essential repairs and maintenance, and by reducing input use per hectare, particularly fertilisers and hired labour.

4 Farm cash receipts, sugar producers, 2005-06 to 2007-08 average per farm
		less than 7.5 kt			7.5 - 15 kt			15 kt - 22.5 kt			22.5 kt to 30 kt
		2005-6	2006-7	2007-08 s	2005-6	2006-7	2007-08 s	2005-6	2006-7	2007-08 s	2005-6	2006-7	2007-08 s
Farm cash receipts
Receipts from the sale of the 2005-06 sugar cane crop
– milling sugar	$	2 726	6 644	5 794	10 006	16 683	13 508	13 401	29 064	19 502	21 653	40 890	24 007
Receipts from the sale of the 2006-07 sugar cane crop
– milling sugar	$	82 164	109 655	87 113	265 993	319 076	248 283	473 152	576 222	440 255	665 522	857 967	676 547
– non–milling sugar	$	314	254	1 168	39	2 495	4 128	0	499	1 612	0	4 657	0
Total sugar receipts	$	85 205	116 553	94 075	276 038	338 254	265 920	486 552	605 785	461 368	687 175	903 514	700 554
Other crop receipts
– peanuts	$	452	548	467	2 467	2 268	1 554	1 347	0	1 677	0	0	0
– oilseeds	$	976	283	854	1 238	1 347	2 065	877	998	1 273	2 839	190	750
– vegetables	$	2 720	8 886	9 405	568	5 495	5 370	3 426	2 525	2 670	1 479	2 746	0
– fruit	$	9 653	9 435	7 430	2 673	15 317	7 773	0	2 456	44 236	5 026	136 604	0
– other crops	$	0	493	291	3 069	3 576	2 679	0	5 134	6 049	0	0	0
Cattle receipts	$	1 000	3 717	5 067	2 241	6 538	5 625	1 807	9 527	12 993	0	93 408	523
Off farm sharefarming	$	727	168	na	7 093	3 316	na	13 049	879	na	0	0	na
Off farm contracts	$	3 818	13 766	na	17 144	14 744	na	32 669	28 387	na	16 116	33 192	na
Total cash receipts	$	123 378	168 486	141 850	341 720	412 873	331 623	593 682	683 446	561 950	804 059	1 217 849	770 694
		30 kt to 50 kt			more than 50 kt			average
		2005-6	2006-7	2007-08 s	2005-6	2006-7	2007-08 s	2005-6	2006-7	2007-08 s
Farm cash receipts
Receipts from the sale of the 2005-06 sugar cane crop
– milling sugar	$	27 145	46 475	41 768	56 698	120 501	106 273	6 739	13 218	10 564
Receipts from the sale of the 2006-07 sugar cane crop
– milling sugar	$	983 778	1 219 569	956 735	2 538 288	3 529 177	2 868 742	212 994	263 042	203 781
– non–milling sugar	$	0	3 985	131	0	87	0	212	960	1 893
Total sugar receipts	$	1 010 923	1 270 030	998 634	2 594 985	3 649 766	2 975 015	219 945	277 220	216 237
Other crop receipts
– peanuts	$	3 911	0	0	46 044	88 556	169 965	1 477	1 896	2 348
– oilseeds	$	2 078	0	0	0	0	0	1 098	585	1 164
– vegetables	$	21 935	0	0	21 031	231 728	293 370	2 877	9 849	10 163
– fruit	$	0	30 110	17 507	209 968	1 338 147	1 423 115	9 150	28 096	22 892
– other crops	$	97	1 851	1 080	0	0	0	661	1 581	1 286
Cattle receipts	$	4 687	10 339	120 920	57 170	99 987	115 077	1 949	7 792	8 613
Off farm sharefarming	$	0	0	na	0	0	na	2 940	981	na
Off farm contracts	$	26 732	18 863	na	92 729	43 143	na	10 562	15 833	na
Total cash receipts	$	1 159 214	1 374 228	1 237 604	3 321 008	5 594 141	5 224 804	280 920	363 718	295 830
s Provisional estimates. na Not available.

5 Farm cash costs, sugar producers, 2005-06 to 2007-08 average per farm
		less than 7.5 kt			7.5 - 15 kt			15 kt - 22.5 kt			22.5 kt to 30 kt
		2005-6	2006-7	2007-08 s	2005-6	2006-7	2007-08 s	2005-6	2006-7	2007-08 s	2005-6	2006-7	2007-08 s
Sugar cane related production costs
Contracts
– planting	$	1 203	1 649	1 584	2 534	3 238	3 179	2 487	4 770	8 008	4 648	7 241	8 258
– harvesting	$	18 796	21 428	23 540	47 816	55 432	55 638	86 026	94 035	98 513	105 466	114 614	136 058
– other	$	1 554	661	652	1 562	3 847	4 751	5 666	8 653	9 540	6 631	5 667	2 595
Electricity	$	1 268	1 519	1 721	4 456	4 128	4 200	5 062	6 490	5 332	12 099	11 387	10 338
Fertiliser	$	13 589	18 827	23 975	36 808	52 116	58 790	78 378	96 450	111 750	86 412	145 992	146 127
Freight and mill charges	$	2 365	3 033	3 514	7 732	9 490	9 312	12 042	13 835	13 498	16 493	16 084	18 611
Fuel, oil and grease	$	6 284	9 571	11 630	22 633	25 524	27 315	37 724	32 419	38 999	42 504	66 666	65 312
Handling and marketing	$	1 563	2 059	2 233	3 765	6 699	6 137	8 167	16 247	18 474	10 762	15 040	14 348
Repairs and
maintenance	$	6 062	9 533	8 893	24 505	27 968	26 660	32 538	42 062	35 554	52 027	72 691	46 290
Soil preparation	$	77	103	91	1 162	751	526	1 838	1 447	1 353	1 029	3 254	2 746
Chemicals	$	2 610	3 287	3 591	10 133	8 246	8 875	14 984	12 317	16 409	21 472	25 360	38 440
Hired labour	$	1 737	1 760	2 025	20 012	15 555	13 873	24 627	14 638	19 231	29 979	45 576	43 430
Water	$	1 521	1 658	1 716	4 136	5 003	6 085	8 278	16 000	16 680	25 619	25 581	11 879
Total sugar costs	$	61 901	79 544	89 491	199 174	231 973	239 541	335 393	375 452	403 561	445 039	571 131	560 605
Non-sugar cane
related costs	$	38 223	48 675	47 969	54 906	68 316	86 717	99 937	131 433	185 481	181 410	349 068	141 117
Total cash costs	$	100 124	128 219	137 460	254 080	300 289	326 258	435 330	506 886	589 042	626 449	920 200	701 722
		30 kt to 50 kt			more than 50 kt			average
		2005-6	2006-7	2007-08 s	2005-6	2006-7	2007-08 s	2005-6	2006-7	2007-08 s
Sugar cane related production costs
Contracts
– planting	$	5 404	194	2 018	15 818	56 052	64 517	1 931	2 960	3 137
– harvesting	$	167 983	240 991	210 183	130 427	200 464	197 832	37 003	41 890	43 760
– other	$	1 608	10 140	12 033	155 531	36 772	31 297	3 588	2 646	2 796
Electricity	$	11 566	29 779	28 548	53 517	36 482	46 010	3 325	3 500	3 626
Fertiliser	$	158 588	149 349	177 923	418 769	476 359	496 474	32 853	42 005	48 101
Freight and mill charges	$	28 680	21 810	21 463	64 639	133 633	152 630	5 872	7 369	7 622
Fuel, oil and grease	$	60 748	64 368	77 555	149 430	233 786	278 655	15 857	19 530	22 087
Handling and marketing	$	15 218	28 364	26 023	33 394	35 050	38 173	3 425	5 204	5 292
Repairs and maintenance	$	57 431	80 640	98 569	104 768	261 260	220 545	15 508	21 447	19 390
Soil preparation	$	6 403	1 079	227	14 543	14 366	16 475	753	594	492
Chemicals	$	31 840	38 050	49 040	61 160	122 803	140 458	6 948	7 415	8 523
Hired labour	$	33 820	32 004	52 931	106 138	295 568	308 554	9 970	10 647	10 680
Water	$	14 679	33 273	33 114	147 696	208 839	223 058	5 107	6 741	6 582
Total sugar costs	$	615 355	760 908	812 713	1 525 577	2 202 115	2 315 417	150 213	181 131	190 741
Non-sugar cane related costs	$	206 621	181 997	361 390	917 643	1 990 769	2 695 034	63 422	89 006	98 326
Total cash costs	$	821 976	942 905	1 174 103	2 443 220	4 192 885	5 010 451	213 635	270 137	289 067
s Provisional estimates.

Farm financial performance

Sugar cane growers’ farm cash incomes increased significantly in 2006-07, as higher prices and increased production more than offset the impact of rising input costs (table 6, figure e). On average, farm cash income rose from around $67 000 a farm in 2005-06 to just less than $94 000 a farm in 2006-07. Farm businesses of all scales of sugar cane production realised increased farm cash incomes, with farms producing more than 50 000 tonnes per farm realising the largest increase in average incomes, being up 84 per cent to $1.4 million a farm. In 2007-08, lower prices and further increases in the main inputs are forecast to have had a significant impact on producers’ farm cash incomes. On average, farm cash incomes fell by 93 per cent in 2007-08 to average around $7000 a farm. Small to medium sized sugar cane growers (those producing less than 22 500 tonnes of sugar cane per farm) realised, on average, negative or very small positive farm cash incomes. In 2007-08, producers growing between 15 000 and 22 500 tonnes of sugar cane per farm realised strong positive cash flows from sugar cane production. However, in recent years these producers appear to have diversified into other industries, particularly tropical fruit production (table 4), that generated significant large cash outflows in 2007-08, resulting in an overall farm cash income of around -$27 000 per farm. In contrast, businesses producing more than 50 000 tonnes of sugar cane per farm realised a farm cash income on average of $214 000, 85 per cent lower than the average realised in 2006-07. Nationally, sugar cane growing farm business profitability fell on average from a profit of $32 000 a farm in 2006-07 to a loss of $58 400 a farm in 2007-08 (table 6 and figure f). Only 25 per cent of sugar cane businesses are estimated to have recorded a profit in 2007-08, compared with 49 per cent in 2006-07. On average, sugar cane producing businesses in all regions are estimated to have realised a negative farm business profit in 2007-08, with loses being the greatest in far north Queensland and the least in southern Queensland and New South Wales (table 7 and figure g). Producers in the Burdekin region experienced the largest decline in profitability, with the average farm realising a loss of $58 000 a farm in 2007-08, compared with a profit of $130 000 a farm in 2006-07.

In 2006-07, the Herbert River, Burdekin, Mackay and southern Queensland had the highest proportion of farms realising a profit – in excess of 60 per cent (figure h). However the proportion of profitable farms in these regions declined to around 25 per cent in 2007-08. Despite this, southern Queensland had the highest proportion of profitable sugar cane growing farms in 2007-08, at around 38 per cent. The Bundaberg region had the lowest proportion of profitable sugar cane producing farms at 10 per cent. In 2006-07, the Herbert River, Burdekin, Mackay and southern Queensland had the highest proportion of farms realising a profit – in excess of 60 per cent (figure h). However the proportion of profitable farms in these regions declined to around 25 per cent in 2007-08. Despite this, southern Queensland had the highest proportion of profitable sugar cane growing farms in 2007-08, at around 38 per cent. The Bundaberg region had the lowest proportion of profitable sugar cane producing farms at 10 per cent. On average, sugar cane producers operate a business with capital worth $2.7 million in 2006-07 (table 6). While the operational return on capital, excluding capital appreciation, was relatively low, averaging 2.3 per cent in 2006-07 and -1.2 per cent in 2007-08, strong growth in land values resulted in significant capital appreciation in these years. For example, in 2006-07, the total return on capital (rate of return including capital appreciation) was on average 12.9 per cent. This growth in capital values has resulted in producers maintaining relatively high equity levels, despite a steady increase in debt in recent years. In the three years to 2007-08, operational returns on capital are estimated to have increased with farm size and sugar cane production (figure i). However, only growers producing more than 50 000 tonnes of sugar cane per farm realised a positive operational return on capital in 2007-08.

Sugar cane cash gross margins

The sugar cane gross margin is a measure of the cash surplus generated from the production of sugar cane. It is calculated as the difference between the average price received and the unit sugar cane production cash costs. In 2005-06, the average gross margin of sugar cane production is estimated to have been $9.10 a tonne (table 8 and figure j). Sugar cane production was most profitable in the Ord River of Western Australia, and southern Queensland and Herbert River regions of Queensland. In contrast, sugar cane production was least profitable in New South Wales and far north Queensland, as producers in these regions received the lowest average price in 2005-06.

In 2006-07, the average gross margin of sugar cane production is estimated to have increased to $11.30 a tonne, as prices increased relative to costs of production. The strongest increase in profitability occurred in the regions with the greatest concentration of large producers, for example the Burdekin, Herbert River and Mackay regions of Queensland. Producers in far north Queensland and New South Wales again had the lowest gross margin as a result of receiving below average prices. In 2007-08, the average gross margin of sugar cane production is estimated to have fallen to $3.10 a tonne, as a result of weaker prices and higher input costs. Sugar cane profitability fell in all regions, but regions with the highest concentration of large producers continued to realise the highest average gross margin. The exception is New South Wales which has a large concentration of small producers but had the highest average sugar cane gross margin. In New South Wales, sugar cane price volatility was lower and the impact of input price increases was minimised by producers changing their farm management practices (for example, reduced fertiliser application rates). In far north Queensland, sugar cane producers realised a small negative gross margin in 2007-08. Sugar cane gross margins have varied considerably between years, with producers of all scales of production experiencing increased profitability in 2006-07 and markedly lower profitability in 2007-08 (figure k). In the three years to 2007-08, sugar cane profitability increased with the scale of sugar cane production. For example, in 2007-08, growers producing less than 7500 tonnes per farm realised an average gross margin of $1.24 a tonne compared with $6.30 a tonne for producers growing more than 50 000 tonnes of sugar cane per farm.

6 Farm financial performance, sugar producers, 2005-06 to 2007-08 a average per farm
		less than 7.5 kt			7.5 - 15 kt			15 kt - 22.5 kt			22.5 kt to 30 kt
		2005-6	2006-7	2007-08 s	2005-6	2006-7	2007-08 s	2005-6	2006-7	2007-08 s	2005-6	2006-7	2007-08 s
Total cash receipts	$	123 378	168 486	141 850	341 720	412 873	331 623	593 682	683 446	561 950	804 059	1 217 849	770 694
Total cash costs	$	100 124	128 219	137 460	254 080	300 289	326 258	435 330	506 886	589 042	626 449	920 200	701 722
Farm cash income	$	23 254	40 267	4 390	87 640	112 584	5 365	158 353	176 560	– 27 091	177 610	297 649	68 972
Farm business profit	$	– 14 978	– 6 101	– 41 309	14 306	37 976	– 69 671	62 936	81 337	– 125 437	71 454	189 970	– 82 151
Rate of return
– excl. cap. appreciation	%	–0.4	0.2	–1.7	1.5	2.3	–1.5	3	3.4	–1.5	2.8	3.8	0
– incl. cap. appreciation	%	5.1	13.7	na	6.3	14	na	6.7	8.5	na	6.8	14.9	na
Farm capital	$m	1.4	1.7	na	2.5	3.1	na	3.5	3.8	na	4.9	8.3	na
Farm debt	$	136 865	102 273	na	189 729	204 206	na	428 753	517 958	na	667 644	1 394 929	na
Liquid assets	$	82 761	116 387	na	174 191	106 719	na	194 463	242 264	na	248 796	97 785	na
Off farm income	$	30 037	31 467	na	18 348	18 301	na	12 444	9 472	na	18 621	15 518	na
		30 kt to 50 kt			more than 50 kt			average
		2005-6	2006-7	2007-08 s	2005-6	2006-7	2007-08 s	2005-6	2006-7	2007-08 s
Total cash receipts	$	1 159 214	1 374 228	1 237 604	3 321 008	5 594 141	5 224 804	280 920	363 718	295 830
Total cash costs	$	821 976	942 905	1 174 103	2 443 220	4 192 885	5 010 451	213 635	270 137	289 067
Farm cash income	$	337 239	431 323	63 501	877 788	1 401 256	214 353	67 285	93 581	6 762
Farm business profit	$	196 852	290 537	– 182 551	628 066	1 157 153	– 151 041	10 858	32 052	– 58 366
Rate of return
– excl. cap. appreciation	%	4.7	5.2	0	4.9	6.5	1	1.4	2.3	–1.2
– incl. cap. appreciation	%	28.8	6.3	na	8	12.9	na	7.4	12.9	na
Farm capital	$m	7.3	7.3	na	19.2	26.4	na	2.2	2.7	na
Farm debt	$	1 064 693	1 299 324	na	3 843 038	5 890 495	na	255 687	267 052	na
Liquid assets	$	123 136	264 836	na	597 698	744 361	na	121 706	131 805	na
Off farm income	$	131 221	28 349	na	7 849	829	na	27 283	26 136	na
a Financial performance of sugar cane producing farm businesses. na Not available. s Provisional estimates.

7 Farm financial performance, sugar producers, by region and size group 2005-06 to 2007-08 a average per farm
		less than 7.5 kt			7.5 - 15 kt			more than 15kt			average
		2005-6	2006-7	2007-08 s	2005-6	2006-7	2007-08 s	2005-6	2006-7	2007-08 s	2005-6	2006-7	2007-08 s
Farm cash income
Far North Queensland	$	30 655	46 698	–7 507	79 826	69 148	1 665	240 765	149 131	–34 238	65 832	59 587	–7 909
Herbert River	$	45 215	48 239	2 554	80 488	101 591	–27 089	273 754	224 305	–5 135	88 298	87 960	–9 965
Burdekin	$	–18 135	37 822	–16 429	29 515	126 978	–3 975	251 663	550 902	84 713	61 289	202 871	13 670
Mackay	$	35 828	37 097	14 500	104 423	120 619	3 039	230 779	312 549	27 311	86 069	102 338	13 562
Bundaberg	$	13 515	42 876	8 378	129 491	166 286	16 533	315 233	307 921	ns	51 590	74 646	3 536
Southern Queensland	$	21 313	34 971	23 788	ns	ns	ns	ns	ns	ns	43 922	67 225	51 194
New South Wales	$	7 424	29 212	9 183	102 161	104 570	39 001	ns	ns	ns	33 064	44 694	15 258
Australia	$	23 254	40 267	4 390	87 640	112 584	5 365	253 094	346 181	22 362	67 647	93 375	6 677
Farm business profit
Far North Queensland	$	1 132	–8 089	–61 963	–6 223	–390	–85 268	126 421	22 130	–201 270	17 524	–4 088	–78 208
Herbert River	$	10 682	9 187	–22 547	24 552	32 949	–99 450	188 255	120 570	–127 017	40 146	30 669	–64 162
Burdekin	$	–63 106	–12 066	–55 458	–38 356	56 959	–64 003	134 991	439 459	–54 709	–7 514	129 951	–58 368
Mackay	$	–3 713	–2 923	–28 035	24 486	46 877	–69 429	108 289	197 139	–130 993	22 342	41 613	–54 424
Bundaberg	$	–30 330	–10 560	–44 637	58 689	75 667	–68 931	193 646	154 643	ns	–1 613	10 314	–61 021
Southern Queensland	$	–33 563	6 647	–37 199	ns	ns	ns	ns	ns	ns	–19 908	20 818	–28 680
New South Wales	$	–31 145	–14 887	–30 963	29 848	17 986	–25 208	ns	ns	ns	–14 596	–8 133	–31 981
Australia	$	–14 978	–6 101	–41 309	14 306	37 976	–69 671	139 134	228 988	–128 851	11 795	31 895	–58 414
Rate of return excl. capital appreciation
Far North Queensland	%	0.3	–0.3	–4.2	1.3	0.8	–2.0	3.6	1.7	–3.6	1.7	0.5	–3.4
Herbert River	%	2	1.6	–1.5	3.1	3.1	–4.7	6.3	5.5	–0.4	4	3.3	–2.5
Burdekin	%	–1.2	0.8	–2.0	–0.6	3.3	–0.6	4	7.8	1.5	1.4	5.4	0.4
Mackay	%	0.5	0.5	–0.9	1.5	2.7	–1.6	3.4	3.6	–0.6	1.8	2.3	–1.0
Bundaberg	%	–1.4	0.1	–1.5	2.9	3.3	–1.1	3.4	2.3	ns	0.7	1.3	–1.3
Southern Queensland	%	–1.8	0.3	–0.4	ns	ns	ns	ns	ns	ns	–0.6	0.6	–0.3
New South Wales	%	–2.4	–1.0	–2.0	1.4	1	–0.5	ns	ns	ns	–0.5	–0.2	–1.4
Australia	%	–0.4	0.2	–1.7	1.5	2.3	–1.5	3.9	4.8	–0.2	1.5	2.3	–1.2
Rate of return incl. capital appreciation
Far North Queensland	%	1.3	21.1	na	3.4	26.8	na	5.4	7.2	na	3.1	19.4	na
Herbert River	%	8.1	4.4	na	10.4	0.7	na	13	10.2	na	10.7	4.5	na
Burdekin	%	13.9	16.7	na	–3.1	7.3	na	7.1	12	na	7.1	11.3	na
Mackay	%	3.4	9.9	na	7.5	5.7	na	19.1	10.2	na	9.9	9.1	na
Bundaberg	%	4.3	12.5	na	5.7	14.9	na	6.8	13.9	na	5.2	13.3	na
Southern Queensland	%	18.5	22.7	na	ns	ns	ns	ns	ns	na	21.2	33.3	na
New South Wales	%	–2.0	3	na	7.6	1.9	na	ns	ns	na	2.8	2.6	na
Australia	%	5.1	13.7	na	6.3	14	na	11.2	10.9	na	7.4	12.9	na
a Financial performance of sugar cane producing farm businesses. ns Not supplied because of insufficient sample size. na Not available. s Provisional estimates.

8 Gross margin of sugar cane production, by region and size group, 2005-06 to 2007-08 average per farm
	less than 7.5 kt			7.5 - 15 kt			more than 15kt			average
	2005-6	2006-7	2007-08 s	2005-6	2006-7	2007-08 s	2005-6	2006-7	2007-08 s	2005-6	2006-7	2007-08 s
	$/t	$/t	$/t	$/t	$/t	$/t	$/t	$/t	$/t	$/t	$/t	$/t
Average sugar cane price
Far North Queensland	27	30	24	26	28	24	27	30	24	26	30	24
Herbert River	26	33	27	27	33	25	26	32	25	26	33	26
Burdekin	29	36	27	27	37	27	30	38	27	29	37	27
Mackay	30	35	26	28	35	27	29	36	28	29	36	27
Bundaberg	30	36	28	32	35	26	27	29	ns	30	33	29
Southern Queensland	28	33	23	ns	ns	ns	ns	ns	ns	29	33	30
New South Wales	23	26	25	24	26	24	ns	ns	ns	24	26	24
Australia	28	33	26	27	33	26	28	35	27	28	34	26
Average sugar cane cash cost of production
Far North Queensland	18	25	24	18	23	23	20	24	24	19	24	24
Herbert River	15	18	21	17	21	24	15	18	20	16	20	22
Burdekin	21	23	26	23	23	24	16	22	21	18	22	22
Mackay	21	23	25	20	24	25	18	22	23	19	23	24
Bundaberg	25	25	29	19	21	23	14	19	ns	19	22	26
Southern Queensland	19	21	29	ns	ns	ns	ns	ns	ns	17	23	28
New South Wales	21	16	18	17	19	21	ns	ns	ns	19	17	19
Australia	20	22	24	19	23	24	17	21	22	18	22	23
Sugar cane gross margin
Far North Queensland	8	5	–0.6	7.5	5	0.9	6.5	5.7	–0.9	7.1	5.2	–0.2
Herbert River	11.2	14.2	6.3	9.3	11.4	1.5	11	13.7	5.1	10.5	12.8	3.8
Burdekin	7.3	12.4	1.3	2	13.9	3.8	12.9	15.2	5.4	9.9	14.6	4.5
Mackay	8.4	11.2	1	8	10.1	2.1	10.4	14.3	5.2	9.2	12.3	3.3
Bundaberg	4.6	11.4	–1.3	12.8	13.8	3.4	12.7	9.5	ns	9.7	11.2	3
Southern Queensland	8.5	12.2	–6.2	ns	ns	ns	ns	ns	ns	11.3	9.7	2.5
New South Wales	5.4	9.3	7.2	6.5	6.8	2.6	ns	ns	ns	6.1	8.2	4.9
Australia	7.9	9.9	1.2	7.6	10	2.6	10.7	13.1	4.8	9.1	11.3	3.1
ns Not supplied because of insufficient sample size. s Provisional estimates.