Australian Natural Resources Atlas

Natural Resource Topics

Agriculture - Sugar Industry - Australia

Australia

Benchmarking Rural Industries' Practices and Productivity Performance and Review of Industries' Capacity to Change

This project describes the main regional environmental challenges facing the Australian sugar industry and outlines the industry's response to these challenges in terms of changing management practice. This project provides analysis on national and industry regional scale and is not intended to have property level uses. Regional adoption rates of practices are documented and future directions for the industry are proposed.

One the major findings for the sugar industry is that it will need to be increasingly vigilant of its environmental performance due to its location near sensitive coastal ecosystems and the marine ecosystems of the Great Barrier Reef. Competitive development pressures are on the industry from other rural industries and other sectors for land and water resources, and this places greater scrutiny on the industry's resource stewardship performance.

Major resource management issues confronting the industry include soil erosion, releases of acid from acid sulphate soils, degrading riparian areas, poor drainage, pesticide and fertiliser mobilisation off farm and waste disposal. The industry is attempting to address these issues through the preparation of best management practices (BMP), applied research and development and supporting extension programs.

KEY FACTS ABOUT THE SUGAR INDUSTRY

Where is Australian sugar produced?

The sugar industry is located predominantly in coastal Queensland, with smaller production areas in northern New South Wales and the Ord Irrigation Area of Western Australia. The industry is divided into the following production areas:

The proportion of Australia's sugar area within each of these regions is:

Region/mill area Assigned area (ha) Area harvested (ha) % of Australian sugar area
Northern 113,931 88,119 23
Herbert/Burdekin 149,576 118,473 31
Central 144,986 108,907 28
Southern 102,372 70,624 18
NSW 34,374 18,818 5
WA - 3,670 1

1 Briody, P (Ed) (1999), Australian Sugar Year Book 1999, Grant Cochrane, Brisbane: p 2272 Department of Agriculture, WA, pers. comm. 12/09/00

What land and water resources are invested in Australian sugar production?

Sugar is grown predominantly in areas of higher rainfall and high temperatures along eastern areas north from Ballina in northern NSW to the north of Cairns, and in the Ord Irrigation Area in Western Australia. The crop is a tolerant crop to the vagaries of the weather and is grown on a variety of soil types and landscapes.

Soil types supporting sugar production include the highly fertile deep krasnozem soils, moderately deed to shallow duplex podzols and podzolics and alluvial soils on the floodplains of coastal rivers. The landscape supporting the sugar industry is also variable, however major production areas are restricted generally to flatter alluvial areas, low to moderate slopes and some isolated steeper areas.

The industry is supported by the infrastructure of processing mills and transport systems. In recent times, the horticulture industry competes for the productive soil and water resources.

In 1998, the production statistics for the Australian sugar industry were:

Irrigation requirements in each of the sugar production districts are represented in the chart below. These charts illustrate that the northern areas of the country of well suited climatically to the production of sugar, with the northern areas requiring little or supplementary supplies only. The high evaporation rates experienced in the Ord increase irrigation demands for that region.

Irrigation requirements in sugar districts

How much sugar does Australia produce and where is it sold?

ABS (1999) Australian Agriculture estimate that in 1998, Australia produced 39.5 million tonnes of cane and 4.8 million tonnes of sugar. The total sugar cane value was $1,248 million. 27% of the sugar produced was retained for the domestic market and the remainder exported as shown in the pie chart below.

Markets for Australian sugar

The regional distribution of sugar and cane production is outlined in the table below.

Region/mill area Cane(t) Sugar(t) CCS Cane yield (t/ha) t cane/t sugar
Northern Region 7,697,376 861,681 11.3 87 8.93
Herbert/Burdekin Region 12,177,102 1,610,292 12.9 103 7.56
Central Region 11,398,636 1,411,919 12.1 105 8.07
Southern Region 5,976,204 781,045 12.9 85 7.65
NSW Region1 2,541,029 294,316 11.2 135 8.63
WA Region2 411,658 46,934 13.9 126 8.77

1 Briody, P (Ed) (1999), Australian Sugar Year Book 1999, Grant Cochrane, Brisbane: pp 227 and 2302 Department of Agriculture, WA, pers. comm. 12/09/00

Major sugar production regions are located in the central coastal regions of Herbert/Burdekin and Central region. These regions have high commercial cane sugar (CCS) levels as well as higher cane yield. These central regions have more control of when water is applied due to a reliable irrigation supply and good growing conditions. This reduces the likelihood of reduced CCS due to the diluting effects of water inputs at harvest. Areas to the north periodically suffer from water logging, cyclone damage and insect damage. Areas to the south are generally cooler and are of low rainfall, resulting in lower yields. Most Queensland regions harvest every year, where as NSW region harvest every 18 months.

What are the key characteristics of Australian sugar producers and farms?

In 1998, the Australian sugar industry employed over 12,500 people across about 5,150 properties. These employment statistics include people employed in milling sectors as well as the production sector.

The change in the number of growers in each region between 1989 and 1999 was:

Key characteristics of Australian sugar producers and farms include the following industry and State averages:

Key characteristic Region
Industry average Queensland New South Wales Western Australia
Median age of owner/ manager 49 years 49 years 51 years 67 years
Owner/manager completed university/ tertiary or trade 21% 21% 30% -
Owner manager working 40 hrs/wk or more on the farm 82% 83% 76% -
Level of farm income ($) 55,322 58,626 23,498 -
Level of farm debt ($) 298,727 308,695 204,179 -
Level of off-farm income ($) 20,188 20,796 14,446 -

Industry extension staff suggests that prevailing industry conditions of 2000 reinforce trends towards lower farm incomes, increasing farm debt, declining and sometimes negative farm profit and an increasing reliance on off-farm income. This is the result of prolonged unseasonal wet weather in northern regions and unpredicted disease outbreak in other regions.

Despite these factors, farm ownership across most regions remains high and awareness of regional environmental issues and responsibilities is increasing. This is reflected by involvement in Landcare groups across all regions.

What are the main environmental challenges facing Australia's sugar industry?

In 1996, an environmental audit was undertaken of farmers in the Queensland sugar industry. This audit reviewed a range of environmental parameters on 130 cane farms throughout Queensland and surveyed management practices and farmer attitudes at each farm. Consultation was also held with various other stakeholders such as Aboriginal groups, conservation groups, research organisations and local, state and commonwealth government staff.

The audit identified areas/issues of high environmental risk and areas of high priority for industry response. These risk areas and industry response area were grouped into the following categories.

High priority recommendations of the audit based on an assessment of high risk of environmental impact and/or effect on production levels, were grouped into the following categories:

Many of these issues were considered by the Australian sugar industry when they developed their code of practice entitled Sustainable Cane Growing in Queensland in 1998. In New South Wales, production is limited to northern coastal areas were acid sulfate soils are and issue. In response, they have developed Best Practices Guidelines for Acid Sulfate Soils for use by the farming community.

Industry extension officers have also identified the main environmental issues affecting each production region. The issues listed in the table below are the main issues for each region. Other issues may also exist within these regions, but are not considered to be significant relative to those identified.

Issue Northern region Herbert/ Burdekin region Central region Southern region NSW region WA region
Erosion in replanting yes yes yes yes - -
Erosion in ratoon - - - - - -
Rodents yes - - - yes yes
Nutrient in runoff yes yes yes yes yes yes
Weed control yes yes - - yes yes
Acid sulfate soils yes - yes yes yes -
Pest and disease control - yes - - yes yes
Fish kills yes yes yes - yes -
Reduced oxygen in rivers yes yes yes - yes -
Riparian condition yes yes yes - yes -
Salinity - yes yes yes - -
Pesticide in runoff yes yes yes - yes yes
Elevated groundwater levels - - yes yes yes yes
Waterway health yes yes yes yes yes yes

A survey undertaken by the Bureau of Sugar Experimental Stations (BSES) of Queensland and New South Wales cane farms identified a range of environmental issues affecting farms in the different sugar production regions. A summary of the levels of concern and percent of farms affected by each of the relevant environmental issues is provided in the graph below.

Environmental issues in Cane Growing areas

What is the Australian sugar industry doing to meet these challenges?

The sugar industry has prepared two separate codes of practice to assist in achieving sustainable production. These codes include:

In addition to these codes, a set of guidelines for management of drain maintenance and acid sulfate soils has been developed for NSW cane farmers.

Sustainable Cane Growing in Queensland

This code provides guidelines/specifications for:

In relation to acceptance and adoption of these guidelines, a BSES survey (O'Grady and Christiansen, 2000) of Australian cane farmers identified that an average of 79% of Queensland's responding growers are aware that a Code of Practice exists for their industry and that 62% currently have a copy. These statistics compare with the fact that all cane growers were sent a copy of the Code when it was launched in 1998.

More than a third of all growers surveyed responded as not having read the Code. Of the Queensland respondents who had a copy of the Code, 89% agreed either partially or completely with the recommendations of the Code.

95% of New South Wales respondents indicated that they believe it is important to have best practice guidelines and two-thirds felt that the sugar industry should be responsible for the development of these guidelines.

The industry's key research and extension body, the BSES, support and encourage the adoption of these guidelines through coordinated and designated programs.

Fish Habitat Code of Practice

This code was developed as an alternative to the individual issue of permits under the Fisheries Act 1994. Its use potentially benefits accredited growers by reducing time and costs involved in individual assessments for on-farm drainage maintenance permits.

The code discusses the value of fisheries habitats, issues such as potential impacts and seasonality that must be considered, activities covered and excluded by the code, emergency situations, education and accreditation and monitoring and reporting requirements. It provides criteria for authorised on-farm maintenance activities including low impact maintenance, chemical and other weed control activities, pruning, works in drains, acid sulfate soils, drainage sediment removal, marine plant removal and notification and signage required prior to, during and post works. Mitigation techniques for making farm drains more 'fish friendly' are also provided.

Best Practice Guidelines for Acid Sulfate Soils

These guidelines recommend management practices to producers who are growing sugar cane in areas either affected by acid sulfate soils (ASS) or areas of potential acid sulfate soils (PASS). These areas are sensitive environments and the focus of the guidelines are to educate the industry on:

Particular management issues addressed include drainage management, soil treatment procedures and response procedures.

Best Practice Adoption

The regional adoption of the practices outlined in these codes and guidelines varies as shown in the table and charts below.

Management practice Adoption rate (%)
Northern region Herbert/ Burdekin region Central region Southern region NSW region WA region
Farm plan exists 63 63/66 61 58/56 69 na
Reduced cultivation in last 10 years 70 70/85 83 62/70 73 na
Undertaken a farm chemical accreditation course 70 74/73 75 72/90 86 na
Irrigating 28 39/100 80 96/8 0 na
Subsurface irrigation 68 55/98 60 60/92 91 na
Fertigation 1 0/1 2 2/0 0 na
Surface fertiliser application 39 57/2 50 32/13 15 na

BSES (O'Grady and Christiansen 2000) also have surveyed the level of industry adoption of other recommended management practices. These are summarised in the following charts.

Graph of Waste Disposal Graph of Headland Maintanence Graph of Tallwater dams/basins/regions Graph of Record Keeping Graph of Trash Management - Ratoon Crop Graph of Trash Management - Fallow Graph of Irrigation Scheduling Graph of Chemical Use and Handling
Industry Organisations
Organisational Structures

The industry is supported by a network of structures and organisations. These structures support the industry in areas such as marketing, infrastructure and research and development. Supportive bodies include peak bodies, government agencies, grain marketing organisations and R & D institutions. A summary of this structure is presented below.

PEAK BODIES GOVERNMENT
Australian Cane Farmers Federation
Cane Growers
NSW Cane Growers Association
Ord River Canegrowers Association
Cane Harvestors
Millers
Rural Industries Research and Development Corporation		 Commonwealth Scientific and Industrial Research Organisation
Department of Agriculture, Fisheries and Forestry
Australian Quarantine and Inspection Service
Australian Bureau of Agricultural and Resource Economics
Bureau of Rural Sciences
GOVERNMENT
BSES
Sugar Research and Development Corporation (SRDC)
Cooperative Research Centre for Sustainable Sugar Production
Research and Development

Research and development in the sugar industry is primarily undertaken through the BSES, the Sugar Research and Development Corporation (SRDC) and the Sugar Cooperative Research Centre (SCRC). The main areas of research in recent time includes:

BSES Research and Development

Funding for BSES research and development comes primarily from research grants (46%), assessment and sale of cane (31%) and from recurrent grants from the government (13%). In 1999, these sources provided near to $18.3 million in funds.

The crop management program is one of the key environmental programs funded. The key environment related objectives of the crop management program aim to:

Work undertaken in 1998/99 to help achieve these objectives include research into:

Some of the research undertaken through BSES includes minimum tillage trials at Bundaberg, which have shown maintained yields under minimum tillage, although herbicide costs made the total cost comparable to conventional tillage. There is, however, the potential for reduced soil insecticide inputs should the improved ratio of beneficial soil insects to pests achieved in fallow be able to be carried through to the cropping cycle (Briody, 1999).

BSES engineers are also researching equipment required for the production, planting and harvest of cane planted at high density (Briody, 1999).

SRDC research and development

Funds for SRDC research are provided by growers and millers through a $0.15 levy per tonne of sugarcane harvested, which is matched by the Commonwealth Government on a dollar-for-dollar basis up to 0.5% of the gross value of cane production. In July 1998, an additional $13.45 million was made available to the industry for research and development over four years to June 2002 by the then Minister for Primary Industries and Energy, now Minister for Agriculture Fisheries and Forestry Australia (AFFA).

The SRDC's Research and Development Plan 1999-2004 (the R & D plan) uses the definition of sustainable production systems developed by the Australian Standing Committee on Agriculture in 1991. The three components forming this definition are:

In order to promote sustainable production systems in the sugar industry, the R & D plan includes eight different programs aimed at improving various aspects of the industry. The proportion of funding being provided to each of these programs is outlined in the chart below.

SRDC Budget

Key strategies proposed for the SRDC's Environmental and natural resource management research and development program (Program 6) are:

The performance indicator proposed for measurement of the program outputs is adoption of environmental codes of practice by 75% of the industry.

How are Australian sugar producers working together to overcome environmental challenges?

The sugar industry is a dynamic industry located primarily along the eastern seaboard of Australia. The industry's production areas are environmentally sensitive due to their location relative to river systems discharging to the Great Barrier Reef, high population areas and areas of high habitat value. The sugar industry uses these natural resources intensively and as such, have the following key environmental issue areas:

In response, the industry as a whole has and is, developing environmental policies, codes and guidelines aimed at minimising impacts. These instruments are supported by network of support extension and research services, enabling informed adoption of technology. The adoption of recommended practices is increasing, particularly those practice changes that deliver positive environmental and economic outcomes. The rapid adoption of green cane trash blanketing is a good example.

The industry will continue to face environmental challenges, however, its current basis of incentive, education and regulatory structures positions the industry well for educated responses in the future.

In regional terms, growers are participating in the development of catchment management plans throughout the country. An example of this is the planning process being adopted by growers in the Johnstone River catchment. Growers, in conjunction with the State government, have produced a district set of best management practices in sustainable cane farming. These practices are documented in a grower prepared manual that has been supported by QDNR, BSES and CANEGROWERS. These documents form part of a wider catchment management plan where the interests of all stakeholders in the catchment are considered. Groups such as the cattle producers in the upper catchment, fishing operators along the coast and urban settlement requirements are considered in these plans.

How do these factors affect the future prospects of the industry?

The sugar industry is a rural industry that is concentrated mainly along the eastern seaboard from northern NSW to northern Queensland. The industry generally does not form part of mixed farming enterprises, although horticultural crops are occasionally grown in rotation and some cane farms are included as part of grazing operations. In addition, sugar production areas coincide with some of the more densely populated areas in Australia and are adjacent to highly environmental sensitive ecosystems ( eg Wet Tropics Area, Great Barrier Reef). This geographic location places particular stewardship pressures on the industry to be responsive in terms of management practice.

The nominated key environmental challenges for the industry include soil erosion, acid sulfate mobilisation, nutrient management, noxious weeds and riparian zone degradation have an immediate impact on cane farms. The industry is also alert to off site downstream effects. The industry's recent response to environmental issues has been coordinated through its research, code development and BMP. Grower adoption is always the challenge and this is being coordinated through BSES functions.

The sugar industry to date has been responsive to the NRM issues and have comprehensive codes and practice to assist growers. Future actions could well be determined by downstream impacts and the ability of the industry to contain impact on sensitive environments. Good science will be required to identify source and processes of degradation recurring.

Further information

Link to Map maker to make a map using this information.

Link to data available for download on "A spatially consistent sub-set of agricultural statistics (AgStats) data 1982/93 to 1996/97"

"Benchmarking environmental challenges and agricultural practice - an overview" report

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