MSF Sugar to boost production in Aust
MSF Sugar plans to invest a further $50 million in mills in Australia to help meet a growing demand in Asia.
Chief executive of the Queensland-based sugar grower and exporter, Mike Barry, said the Asia market outlook was "terrific" and "solid" in Japan, Malaysia, Korea and China.
Mr Barry said MSF planned to tip an extra $50 million into the Tableland Mill in the Atherton ranges on top of the $42 million already invested.
The previously announced $42 million infrastructure upgrade intended to add a dozen jobs and to boost crushing rates by 35 per cent to 250 metric tons an hour.
MSF's long-term plan is to increase mill capacity to 900,000 metric tons a season up from the present 630,000 tons.
"Ultimately we see great opportunities in the region and we would ultimately see that region double in size," Mr Barry told AAP.
"And that would be quite a significant investment beyond what we're already putting into the region. So that's our ultimate goal."
MSF Sugar was recently acquired for $313 million by Thailand's Mitr Phol Group, the world's fifth largest sugar company.
Mitr Phol has been assessing opportunities in biomass and ethanol production in Australia, but any decisions will depend on sufficient government support.
"That's really going to need the implementation of a mandate from government, as we've seen in many other countries and it's something that is not widespread in Australia," Mr Barry said.
"We'd be ready to invest if there was the right policy environment such as a mandate that makes sense.
"Without that, look, it just doesn't make sense for Australia."
He also praised the sugar industry in its recovery efforts from Cyclone Yasi in early 2011, when experts warned the cane industry could take years to recover.
Mr Barry said recovery had been excellent with record plantings including areas where sugar cane was being reintroduced after crop failures.
"If anything it's really demonstrated the resilience of the growers; that we've had a dreadful two years but I've got to say I've been absolutely astounded by the work load of the growers in terms of replanting," he said.
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