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Sugarcane is an economically important crop for Queensland, Australia, with around 95% of the sugar produced in the country being grown in this state alone. Sugarcane cultivation has, however, also led to environmental concerns due to its proximity to the Great Barrier Reef. In this paragraph, we will explore the topic of where sugarcane is found in Australia and discuss its economic and environmental implications.
| Characteristics | Values |
|---|---|
| Location | Queensland, New South Wales, Western Australia |
| Environmental impact | Soil compaction, water strain, ecosystem degradation |
| Pests | Cane beetle, turnip moth, sugarcane borer, African sugarcane borer, Mexican rice borer, African armyworm, leafcutter ants, termites, spittlebugs, Migdolus fryanus |
| Industry | 4,000 cane farming businesses, 22 sugar mills |
| Production | 30-35 million tonnes of sugarcane, 4 million tonnes of raw sugar |
| Export | 80% of raw sugar, 80%+ of total sugar produced |
| Revenue | $2 billion+ |
| Government involvement | Mandatory code of conduct, Sugar Act 1999, Sugar Marketing Code of Conduct Taskforce |
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What You'll Learn
Sugarcane in Queensland, Australia
Sugarcane is an economically important crop for Queensland, Australia, with approximately 95% of Australia's sugar cane grown in the state. Queensland's warm tropical temperatures and access to irrigation make it ideal for growing sugar. Sugarcane cultivation in Queensland spans over 378,000 hectares of land, with over 20 different varieties of cane growing in the area. The Mossman Sugar Mill production area alone covers 8,500 hectares, from the Daintree Rainforest to the Atherton Tablelands.
The Australian sugar industry produces both raw and refined sugar from sugarcane, with around 85% of the raw sugar produced in Queensland being exported, generating over $2 billion in export earnings. Sugar production is worth $2.5 billion to the Australian economy each year, making it the second-largest agricultural export in Queensland.
Sugarcane cultivation in Queensland has a significant environmental impact due to its proximity to the Great Barrier Reef. It has contributed to the degradation of ecosystems such as the Great Barrier Reef through soil compaction, increased water usage, and the construction of barrages and dams. The Australian government has introduced a mandatory code of conduct for the sugar industry to address these issues and improve environmental management.
To support the sugarcane industry in Queensland, the government has implemented initiatives such as Smartcane BMP, a best management practice program that promotes productivity, profitability, and sustainability. Additionally, tools like FEAT Online and Harvest Mate assist growers in measuring farm profit, evaluating farming system changes, and recording cane and sugar yield.
Queensland's sugarcane industry has a history of utilising indentured labour, with merchants and plantation owners bringing workers from the South Pacific islands between 1863 and 1900. This labour force included a significant number of ethnic Indians, Southeast Asians, and Chinese people, shaping the demographic landscape of the region.
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New South Wales' sugarcane history
Sugarcane was first brought to Australia in 1788 by the First Fleet. In 1821, there were unsuccessful attempts to grow sugarcane as a crop at Port Macquarie, New South Wales. However, in 1842, the first sugar refinery was built in Sydney to refine imported sugar. It wasn't until 1862 that Captain Louis Hope and John Buhot established a sugarcane plantation near Brisbane, with Hope operating Australia's first commercial sugar mill. In 1864, cane growing spread along the coast of Queensland and northern New South Wales.
In 1870, the Colonial Sugar Refining Company (now CSR Limited) introduced a system of large central sugar mills in northern New South Wales, supplied with cane by independent farmers. However, many small sugar mills closed down in 1885 due to the depressed state of the sugar industry. Despite this setback, the sugar industry in New South Wales continued to develop. In 1978, the New South Wales Sugar Milling Co-operative Limited was formed to purchase the three New South Wales mills from CSR Limited.
In 1986, the Queensland, New South Wales, and Commonwealth governments agreed on a three-year sugar industry assistance/restructure package. The sugar industry in New South Wales has faced challenges, including the impact of severe droughts, which reduced sugarcane crops in Queensland and New South Wales to the lowest level in 15 years in 1992.
Today, sugarcane is grown along 2,100 km of coastline in northern New South Wales, with about five per cent of Australia's sugar produced in the state. The majority of Australia's domestic market is supplied by sugarcane grown in New South Wales, and the industry is subject to a mandatory code of conduct introduced by the Australian Government in 2017.
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Sugarcane pests and their impact
Sugarcane is grown in Australia on 450,000 hectares of land along the eastern coast, with about 95% of the crop grown in Queensland and the remaining 5% in northern New South Wales. The country produces about five million tonnes of raw sugar from sugarcane annually, with 80% of this exported, predominantly to East Asia.
Sugarcane cultivation in Australia has been impacted by several pests and diseases. One of the most significant pests is the cane beetle (also known as the cane grub), which can substantially reduce crop yield by eating roots. Other notable pests include the larvae of some butterfly and moth species, such as the turnip moth and the sugarcane borer. Severe outbreaks of diseases like Fiji leaf gall, orange rust, and smut have also impacted the industry, costing hundreds of millions of dollars.
The cane grub, or sugarcane weevil borer, has been a persistent issue for Australian sugarcane growers. Since the late 1940s, control of canegrubs has relied heavily on synthetic insecticides. Organochlorine insecticides were previously used but were withdrawn in 1987 due to environmental concerns. Now, a controlled-release organophosphate insecticide is applied at planting, providing 2-3 years of control. Without these insecticidal controls, it is estimated that 12% of Australia's sugarcane crop would be lost to cane grubs.
Other pests that affect sugarcane in Australia include the island sugarcane leafhopper, which vectors a disease causing reduced yields and sugar content. This disease has led to losses of up to 100% in susceptible varieties overseas. Additionally, Sesamia grisescens, a major pest in Papua New Guinea, is a serious concern for the Australian industry if it were to spread. The Australian government has stated it would cover 80% of response costs in such an event.
The impact of these pests and diseases on the Australian sugarcane industry has been significant. Beyond the financial costs, they have also disrupted the sugarcane plant breeding programs and on-farm management practices. The industry continues to focus on environmental management and the development of resistant sugarcane varieties to mitigate these challenges.
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Environmental impact of sugarcane
Sugarcane production in Australia, as in the rest of the world, has a significant environmental impact. The industry is located adjacent to the Great Barrier Reef, a World Heritage site of outstanding universal value. The reef is already under threat from global warming and pollution, and the Australian sugar industry contributes to this.
Sugarcane farming is a major contributor to greenhouse gas emissions, with the farming phase accounting for around 77% of total emissions across the two sugarcane production stages (farming and processing). The use of machinery, fertilisers, and pesticides, as well as practices such as burning cane and applying effluents to the soil, are the biggest sources of emissions. In addition, the large volumes of water required for sugarcane production can reduce water availability for other uses and impact sensitive ecosystems.
Sugarcane production often pollutes freshwater ecosystems with silt and fertilizers washed from farms, as well as plant matter and chemical sludge from mills. These pollutants flow out to sea and damage coral ecosystems, such as the Great Barrier Reef. The industry also contributes to land clearance and habitat degradation, including soil erosion, stream sedimentation, diffuse source pollution, and acid sulphate soil pollution.
However, it is important to note that the sugar cane industry in Queensland is regulated, with controls on the number of cane growers, the areas of cane planted, the location of planting, and the quantity of sugar produced. Additionally, organisations like Bonsucro have helped to decarbonize the sugarcane sector over the past decade. Bonsucro-certified farms and mills have been shown to reduce GHG emissions and water use. Furthermore, initiatives such as Project Catalyst, a partnership between Australian cane farmers, The Coca-Cola Foundation, WWF, the Australian government, and local natural resource management groups, have helped farmers craft precision agriculture plans to reduce agricultural pollution to the Great Barrier Reef.
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Australia's sugarcane exports
Sugarcane is an economically important crop for Queensland, Australia, with around 95% of sugar produced in the country grown in this state. About 5% is grown in northern New South Wales, along a 2,100 km stretch of coastline between Mossman in far north Queensland and Grafton in northern New South Wales. Sugarcane cultivation is an incredibly water-intensive process, which has placed a strain on Australia's resources, requiring the construction of barrages and dams. This has contributed to the degradation of ecosystems such as the Great Barrier Reef.
The Australian sugar industry produces both raw and refined sugar from sugarcane. Australia is the second-largest raw sugar exporter in the world, with more than 80% of its sugar exported as bulk raw sugar. In recent years, Asia has become a key market, with South Korea, Indonesia, Japan, and Malaysia being the most important destinations. Australia exports around 3-4 million tonnes of sugar each year, valued at $1.5 billion to $2.5 billion. In FY2022-23, the value of Australian sugarcane production is expected to rise by 29% to $1.9 billion.
While Australia exports a relatively small amount of sugar to the US (less than 2% of all export volumes), it remains a lucrative market due to the significant price premium. Australia consistently fills its TRQ allocation in the US due to the price being well above the global average. In the US, Australia exports around 100,000 tonnes at the basic in-quota tariff rate of roughly US1.5 cents/kg. However, there is limited commercial viability outside of this quota, due to an out-of-quota rate of US33.9 cents/kg.
The Australian government introduced a mandatory code of conduct for the sugar industry, which came into effect on 5 April 2017. This code supports the development of mutually beneficial and timely cane supply and on-supply agreements.
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Frequently asked questions
Sugarcane is predominantly found in Queensland, Australia, with around 95% of the sugar produced in the country being grown there.
Australia’s 4,000 cane farming businesses grow 30-35 million tonnes of sugarcane each year.
Australia has around 378,000 hectares of land under sugarcane cultivation each year.
Sugar production is worth $2 billion to the Australian economy each year, with 80% of the sugar being exported.
Sugarcane farming in Australia has placed a strain on available water resources, requiring the construction of barrages and dams. This has altered water flow to aquatic habitats and contributed to the degradation of ecosystems such as the Great Barrier Reef.
