An independent economic analysis commissioned by the Australian Sugar Milling Council used sugar mill spending data grouped by postcode to calculate and quantify the sugar manufacturing sector's contribution.
An independent economic analysis commissioned by the Australian Sugar Milling Council used sugar mill spending data grouped by postcode to calculate and quantify the sugar manufacturing sector's contribution. Zach Hogg BUN300414CNE4

M'boro sugar mill's $101m injection to region

ABOUT $101 million injected into the economy by the sugar industry has helped maintain 490 jobs on the Fraser Coast across the past financial year, a new analysis has revealed.

An independent economic analysis commissioned by the Australian Sugar Milling Council used sugar mill spending data grouped by postcode to calculate and quantify the sugar manufacturing sector's contribution.

Australian Sugar Milling Council's director of economics and trade David Rynne said direct sugar manufacturing spend of $80 million by the Maryborough mill generated significant community benefits in the Fraser Coast Regional Council area.

"The sugar mill pays wages to 207 employees, purchases cane from local sugarcane growers, and also contracts many local businesses to provide the goods and services required to run and maintain raw sugar manufacturing," Mr Rynne said.

"Modelling the flow-on effects of the mill's direct expenditure allowed the total, combined direct and indirect economic impact to be estimated."

The $80 million worth of direct expenditure comprises $5 million in purchases from 270 non-cane local businesses, $63 million in purchases from 334 cane enterprises with 129 cane-related workers and $12 million in wages to 207 staff at the Maryborough mill, which produced 82,000 tonnes of raw sugar in 2017.

The indirect and flow-on gross regional product of $21 million supported an estimated additional 154 jobs.

The report, prepared by analyst Lawrence Consulting, compared the Milling Council's figures to the best available government data from the 2016-17 financial year.

The 490 jobs in the region represents 1 per cent of jobs in the Fraser Coast Local Government Area and the $101 million total expenditure accounted for 3 per cent of the region's Gross Regional Product.

This compares to the state figures where Queensland sugar mills spent $2.24 billion directly across $686 million in purchases from 5551 non-cane businesses, $1.21 billion in purchases from 4305 cane enterprises with 4554 cane-related workers and $353 million in wages to 4591 milling staff.



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