The Isis Central Sugar Mill has requested financial assistance

The Isis Central Sugar Mill is facing a cash shortage against the background of lagging behind target processing volumes by tens of thousands of tonnes. Farmers need certainty regarding the future of the enterprise, as they have to plan planting two years in advance.

Negotiations are currently underway for a $9 million state loan to the mill, with the enterprise's chief executive officer expecting similar funding from the federal government. A potential three-year loan could provide for repayments through a special levy on farmers. Queensland Minister for Primary Industries Tony Perrett confirmed discussions of this support, and Assistant Minister for Agriculture, Fisheries and Forestry Anthony Chisholm noted that federal authorities are in contact with the mill's management.

About 200 producers from regions ranging from the Fraser Coast to North Burnett supply raw materials to the enterprise. The workload on the mill increased by 50 percent after a local enterprise in Maryborough closed in 2020, and Isis began accepting cane from that area. Maryborough Canegrowers Chairman Roger Bambling emphasized the importance of dialogue between the mill and farmers, noting that the closure of another enterprise would be a heavy blow.

Among the factors increasing the mill's expenses, maintenance costs, sugar prices, and logistics stand out. Due to the high cost of road transport, cane from Maryborough has to be delivered to railway stations by approximately 100 trucks daily.

Despite difficulties and concerns about a lack of certainty, producers continue their work. As generational farmer Tony Russo said, farmers are ready to pay potential levies and continue tending to the future harvest by applying fertilizer and irrigation to the plants. He also expressed hope that the mill's biofuel and aviation fuel projects will help attract government support. The article also mentions situations at other enterprises: the Mossman Mill in North Queensland went into external administration in 2023 after receiving state aid, and about 50 suppliers of the Rocky Point sugar mill on the Gold Coast will lose their cane supply agreements after 2027.