Production
Production and Marketing
Raw sugar for the export market is delivered to the bulk sugar terminal in the Port of Mackay. This sugar is marketed on our behalf by Queensland Sugar Limited, the body responsible for marketing over 90% of Queensland's export production. This sugar is marketed, predominantly in Asia, to refiners in South Korea, Indonesia, Japan and Malaysia as the primary customers.
The raw sugar is priced on the basis of the Intercontinental Exchange No 11 Contract (a raw sugar futures contract) and Mackay Sugar actively manages its price risk and exchange rate cover to enhance revenue.
Further, Mackay Sugar also manages a large futures trading and currency pricing management system to enhance revenue for its 960 plus grower shareholders.
Molasses
Mackay Sugar produces in excess of 200,000 tonnes of final molasses each year, of which 50,000 tonnes is sold to Champion Stockfeeds at Marian Mill, where it is processed as animal stockfeed. Approximately 50% of molasses produced is sold to the CSR Sarina distillery, while the balance is exported through the Mackay Port, through Australian Molasses Trading.
Bagasse
Another by-product of the sugar manufacturing process is bagasse. Mackay Sugar produces over 2,000,000 tonnes of bagasse each year. This cane fibre residue is an excellent renewable fuel, allowing all mills to be fully energy self-sufficient and still supply approximately 10 MW to the local Mackay district grid. Bagasse is combusted in boilers to produce high pressure steam which drives the power houses and mill turbines. The exhaust steam is used to process the sugar juice.