History
When the co-operative was originally formed in 1988, the path to the 1988 merger was anything but smooth and required huge commitments by the initiators to see it to a successful conclusion. Similar proposals mooted as far back as 1915 had failed, largely due to each mill's fierce protection of its own "territory" and rights. In 1978 Racecourse Co-operative conducted a feasibility study on rationalisation of the district's co-operatives. Much later, in 1984, the district's milling co-operatives set up a merger committee for an in-depth study of a five-mill merger. Progress seemed to be good, when, in late 1986, all the mills signed a memorandum of understanding. The process derailed soon after, due to disagreement about conditions in the document. The merger committee renewed its efforts in 1987 and, after concentrated negotiations, a successful vote by shareholders of each co-operative saw the amalgamation of the district's five co-operatives and the purchase of the CSR Limited-owned Pleystowe mill.
Mackay Sugar Co-operative Association Limited was finally incorporated on February 1, 1988 - a date of tremendous significance in the history of the Australian sugar industry. The merger had created a large financially viable co-operative sugar milling entity which would maximise the returns to growers from cane production and sugar manufacture, buffering shareholders from the difficulties faced by small "stand-alone" co-operatives. The new co-operative would be able to take advantage of greater economies of scale to keep costs under control. It would also have enough influence to be able to act quickly on commercial or political opportunities.
As part of its strategy for greater efficiency, two mills were closed and their plant and equipment integrated into the remaining mills. North Eton mill was closed at the end of the 1988 crushing season and Cattle Creek at the head of the Pioneer River valley was closed in 1990.
Mackay Sugar Limited's focus is now on delivering projects that extract maximum value from the sugar cane plant and maximising income from the by-products of sugar production, such as molasses, fibre and steam. In fact, we are involved in the supply chain from the grown stalk of sugar cane, to harvesting, milling and value adding through the processing stages to the end product packages of sugar we all purchase from the supermarket shelf.
We take pride in the quality of our product, the dedication of our personnel and the unique position of Mackay Sugar Limited in all aspects of the value chain.