SUGAR prices continue to soar, with raw sugar futures reaching their highest levels since October 2016 on the back of world supply and demand tightness and higher demand for sugar for use in biofuels.
In good news for the Australian sugar industry this price surge has coincided with a period of solid production, allowing growers the rare double of high yields and high prices.
The Australian Bureau of Agricultural Resources and Economics (ABARES) estimated bumper Aussie yields combined with the high prices would lead to a 29 per cent increase in gross value of production of sugar for 2022-23.
Australia is emerging as a key provider of sugar with tight global demand on the back of production issues in key sugar producing nations with drought in key parts of China and India.
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In cane heartland in Far North Queensland there is good optimism within the industry.
"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," said Mick Gabiola, account manager at Nutrien Ag Solutions Ayr in North Queensland.
"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 added.
Global sugar consumption continues to grow, fuelled by the expansion of ethanol production in key markets.
Australian sugarcane exports are expected to decline in 2023-24 by 5pc to $2.4 billion according to ABARES on the back of reduced production due to anticipated seasonal constraints on yield, but into the medium term the prevailing market conditions should see prices and returns for growers to remain on the high side.
However in the short-term Mr Gabiola reported adverse climatic conditions were having an impact on the season's potential.
"We've seen a steady start to the year," he said.
"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."